The group said it made a bottom-line profit of €580 million (US$630 million), compared with €298 million over the same period a year earlier.

“We had a very good start to 2023,” CEO Manfred Knof said in a statement.

“The interest rate development continues to give us a tailwind, and the fee business has delivered a good result,” he said.

Like other lenders in Europe, Commerzbank has benefited from a higher interest rate environment as the European Central Bank has raised borrowing costs at an unprecedented rate in recent months to combat inflation.

Inflation in Germany, Europe’s biggest economy, eased to 7.2% in April after peaking at 8.8% last October.

Commerzbank said quarterly revenues fell slightly to just under €2.7 billion, from €2.8 billion euros a year earlier. The lender said the dip was partly due to charges set aside to cover legal costs at its Polish unit mBank.

Commerzbank embarked on a major turnaround in recent years, focussed on winning new customers, digitisation and reducing its workforce.

The bank has culled around 9,000 jobs since 2021, out of a planned 10,000.

The overhaul helped the group remain in the black for a second consecutive year in 2022 when it booked a net profit of €1.4 billion.

Commerzbank returned to the prestigious DAX index of Germany’s 40 top-listed companies in February.

Looking ahead, Commerzbank said it was aiming for a full-year net profit “well above that of 2022”.