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Commerzbank reported positive financial year

The German bank Commerzbank said it has issued a profit in the fourth quarter of 2010. With the main merit of this is the contraction of reserves to cover possible bad loans. The profit of Commerzbank, which is the second largest bank in Germany amounted to 257 million EUR. For comparison, in the same quarter of 2009, financial institution record loss of 1.86 billion. The net interest income of the bank fell from 1.88 billion to 1.68 billion EUR, mainly due to a decline in interest rates of around 10 per cent, the report shows. The provisions have shrunk by nearly half, in the last quarter of 2010 they were 595 million EUR, after the previous year were 1.32 billion. The expectations for this year to decline by at least 200 million EUR to a maximum of 2.3 billion provision for the whole year. The results from trading operations were placed on the profit of 384 million EUR at 574 million EUR loss for the last three months of 2009. The operating profit of Commerzbank for the period was 256 million EUR.