Commerzbank reports better-than-expected 29% rise in Q1 profit

By Tom Sims and Frank Siebelt

FRANKFURT (Reuters) - Germany's Commerzbank posted a better-than-expected 29% rise in first-quarter net profit on Wednesday, its strongest quarterly profit in a decade, and raised its outlook for net interest income for the full year.

Its net profit rose to 747 million euros ($808.25 million) in the quarter from a profit of 580 million euros a year earlier. Analysts had, on average, expected a profit of 652 million euros, according to an April consensus forecast published by Commerzbank.

Commerzbank is benefiting from higher interest rates and the income that generates. Net interest income rose 9.2% in the first quarter to 2.126 billion euros, better than expectations for 2.096 billion euros.

The bank raised its full-year forecast for net interest income to 8.1 billion euros from 7.9 billion euros previously.

Commerzbank, one of Germany's best known banks and partially held by the government after a bailout more than a decade ago, spent much of the past years in a major overhaul, slashing its workforce and branch network to restore profits.

"We got off to a very good start this year. Our goal is to increase profits in 2024," CEO Manfred Knof said.

($1 = 0.9242 euros)

(Reporting by Tom Sims and Frank Siebelt; Editing by Rachel More and Janane Venkatraman)