Commerzbank Reports 6.4 Percent Hike In Earnings Despite Subprime Losses

Frankfurt, Germany (AHN) - Commerzbank, Germany's second largest bank, reported on Wednesday a 6.4 percent rise in its second quarter net profit to $1.3 billion.

The higher-than-forecast income was reached by the bank because of a tax gain and despite subprime losses. The bank's chief financial officer Eric Strutz admitted to Deutsche Welle, "Due to the continuing market volatility, we reiterate that -- without accounting for the tax gain -- it could be very difficult to reach the good result of the previous year in 2008."

The bank's second quarter write-downs reached $648 million (420 million euro).

Commerzbank is discussing with Allianz SE its plans to buy Dresdner Bank, which would increase to almost twice its current branches and assets and help it challenge the financial leadership of Deutsche Bank, Germany's number one bank.