Mubasher: Germany’s Commerzbank on Wednesday said that its net profit dropped 54.2% year-on-year in the first quarter of 2019, citing a higher tax burden.

Net profit attributable to shareholders dropped to EUR 120 million ($134.34 million) in Q1-19, compared with EUR 262 million in Q1-18, which reflected a decline in earnings per share (EPS) to EUR 0.10, from EUR 0.21.          

Commerzbank paid EUR 91 million in taxes in the January-March period of 2019, compared with EUR 5 million in the same period of last year.

Revenues came in at EUR 2.156 billion in the three-month period ended last March, down from EUR 2.217 billion a year ago, when the bank earned the benefit of exceptional items and valuation effects.

Meanwhile, the bank’s underlying revenues amounted to EUR 2.190 billion, marginally lower from the year-ago total.

Commerzbank’s quarterly results were announced, just weeks after the collapse of merger talks with Deutsche Bank.

Both German lenders ascribed the failure to the risks of inking a deal, restructuring costs and capital demands.

“We are addressing the right issues with our strategy,” Commerzbank CEO Martin Zielke said.