(Bloomberg) --

Commerzbank AG said it expects to make a profit this year in a boost for Chief Executive Officer Manfred Knof as he pushes ahead with his turnaround plan. 

Commerzbank expects to post a net profit for 2021 after third-quarter operating earnings rose almost threefold to 472 million euros ($545 million), it said Thursday in a statement. Third-quarter revenue declined 1.3% to 2.01 billion euros. That compares with a Bloomberg-compiled consensus estimate of a 2% drop to 1.99 billion euros. 

“The implementation of our strategy is proceeding according to plan and the operating business is also developing well,” Knof said in the statement. “Despite the restructuring expenses, we are anticipating a positive net result for the full year.” 

Knof, who took charge of the Frankfurt-based lender in January, is implementing a four-year turnaround strategy centered around deep savings, including eliminating 10,000 jobs. The effort has been complicated by unexpected costs and an extended leadership upheaval, which was finally settled in September with the appointment of two new management-board members.

Commerzbank has previously said it expects revenue to grow slightly this year but shied away from giving a profit outlook. The uncertainty stems from concerns about whether cost headwinds would offset revenue momentum and lower loan-loss provisions as the coronavirus pandemic subsides.

An annual profit would be an important achievement for Knof, who has vowed to boost returns at a lender that hasn’t earned its cost of capital in over a decade. Last year, the bank also slumped to its first annual loss since 2009 as it booked large writedowns to clear the slate before Knof came in as CEO. 

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