News Article: Commerzbank Considering Entry into Lithuania
Commerzbank is reportedly planning to enter the Lithuanian market, with President Gitanas Nausėda expressing his belief that the bank’s arrival will boost competition in the sector.
According to the ministry, the bank will provide more information about its specific plans and operating formats in Lithuania at a later date. However, A. Armonaitė, a representative of the Bank of Lithuania, confirmed that the bank’s intentions are “completely serious.”
Commerzbank’s plans in Lithuania are ambitious, with a focus on business clients. The bank’s CEO, Manfred Knof, stated that the bank expects GDP growth in Lithuania to be slightly delayed.
Financial Performance and Market Reaction
Commerzbank’s second-quarter results showed a 4.8% decline in net profit compared to the previous year. Provisions for loan losses increased, and the bank faced costs related to a mortgage loan problem in Poland and litigation in Russia. Despite this, analysts called the results “good.”
Market Reaction to Potential Entry
Shares of Commerzbank fell by 6% on Wednesday following the announcement of higher-than-expected loan loss provisions. However, the bank’s credit rating was upgraded by agency S&P.
Expert Opinions
Analysts at Deutsche Bank and JPMorgan expressed a positive outlook on the bank’s results. The bank’s restructuring efforts and focus on reducing costs are seen as positive developments.