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Commerzbank flags rosier outlook for net interest income

Kitco News

FRANKFURT, Sept 19 (Reuters) - Commerzbank (CBKG.DE) expects to earn net interest income of 8 billion euros ($8.5 billion) this year, its finance chief said on Tuesday, as the bank benefits from higher interest rates.

The German lender has been undergoing a major overhaul, slashing its workforce and branch network to restore profits, and is currently working on a plan to tweak its strategy that it will announce later this year.

Like many banks, Commerzbank has been benefiting from a rise in interest rates and the income that generates, and in August, it said it was expecting at least 7.8 billion euros in interest income.

Finance chief Bettina Orlopp told a banking conference on Tuesday that 8 billion euros was now "a good guess for this year".

Orlopp also pointed to wealth management and the bank's trade finance business as areas with untapped potential that would be highlighted when the bank presents its new strategy in November.

She said the bank also aimed to increase its digital offerings, especially for brokerage customers.

($1 = 0.9365 euros)

Reporting by Tom Sims Editing by David Goodman and Mark Potter

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