German lender Commerzbank has cut back its loan-loss provisions in the third quarter as it continues to shred its shipping book.
The figure to 30 September was EUR 168m ($198m), down from EUR 275m a year ago.
For the nine months, the provision was EUR 530m, against EUR 610m in 2016.
The non-performing loan (NPL) ratio was 1.5%, which is "still low compared to its European peers, reflecting its healthy risk profile," the bank said.
Operating profit was up at EUR 629m in the third quarter, from EUR 429m previously.
Its asset and capital recovery (ACR) shipping portfolio was reduced by more than 30% in the first nine months to EUR 3.3bn - a "substantial" drop of EUR 1.5bn.
It said it was on track for its year-end target of around EUR 3bn and an acceleration of the portfolio run-down is under consideration
Fellow German bank Berenberg said this week it had bought "middle-three-digit" loans from Commerzbank. Sources cited by Reuters put the value at more than EUR 300m.
Staff costs decreased due to job losses.
