Commerzbank AG, Germany’s second- largest bank, may post a profit for the second quarter as it set aside less money for bad loans and trading income increased.
Net income probably totaled 122 million euros ($162 million), compared with a loss of 761 million euros in the year-earlier period, according to the median estimate of 10 analysts surveyed by Bloomberg.
Commerzbank’s second-quarter profit will be “driven by lower loan loss provisions and a positive trading result,” Andreas Plaesier, an analyst at M.M. Warburg & Co. in Hamburg, wrote in a research report dated July 29. He has a “sell” recommendation on the shares.
The following are the analysts’ median estimates for Commerzbank’s second-quarter earnings and year-earlier results. The figures are in millions of euros. The Frankfurt-based bank is scheduled to publish earnings on Aug. 5 before the German stock market opens.
Q2 2010 Q2 2009 Number of estimate reported estimates Net interest income before risk provisions 1,810 1,838 8 Loan-loss provisions 655 993 8 Net commission income 929 947 8 Trading profit 295 71 8 Net investment income/loss -45 172 6 Operating expenses 2,199 2,263 8 Pretax profit/loss 159 -509 9 Net income/loss 122 -761 10
Brokerages surveyed: Merck Finck, Kepler, Equinet, M.M. Warburg, Citigroup, Helvea, LBBW, DZ Bank, Keefe Bruyette & Woods, WestLB. Two companies declined to be identified by name.