Shares of Germany’s second-largest lender Commerzbank rallied Tuesday after its first-quarter profits beat forecasts.
The bank also said the item aims to resume its dividend payouts because of of which year.
Commerzbank’s Chief Financial Officer (CFO) Stephan Engels told CNBC’s Annette Weisbach in Frankfurt Tuesday of which the company’s plan to win business coming from smaller rivals was paying off.
“The basic style of which more customers means more assets in addition to also more assets is actually the foundation for more profitability is actually working. We are managing to compensate for the drag effect of negative interest rates,” he said.
Nonetheless, Commerzbank’s strategy to gain market share in addition to also reap rewards when interest rates rise is actually coming under pressure coming from stuttering European growth. With European data appearing to soften in recent weeks, Engels did not foresee a rise in European interest rates until the second half of 2019.
“(At) the beginning of the year we had higher hopes on interest rate rises, in addition to also I think of which we have seen a little bit of sobering of of which view during of which last quarter,” he added.