FRANKFURT, Feb 12 (Reuters) - Commerzbank is bracing for slower growth at its cash cow Mittelstandsbank (MSB) unit, which caters to Germany’s raft of medium-sized companies, Chief Financial Officer Stephan Engels said on Thursday.
“The growth of the last three years has been pretty strong. I think that is not necessarily a good indicator, especially for the MSB, which has seen a very strong growth rate. So I would assume a more moderate growth rate,” Engels told analysts during a conference call.
The MSB unit accounted for two thirds of the 1.8 billion euros ($2.04 billion) in pretax profit that Commerzbank posted in its core operations. Including the losses at its run-down portfolio, 2014 group pretax profit stood at 961 million euros.
$1 = 0.8816 euros Reporting by Arno Schuetze and Thomas Atkins; Editing by Maria Sheahan