Commerzbank jumps amid signs of progress

Commerzbank AG, the German bank forced into an €18.2bn bailout, jumped the most since Oct 2011 in Frankfurt trading after second-quarter earnings fell less than analysts estimated.

The bank climbed 16% to €7.66, valuing the company at €8.7bn. The stock has plunged 29% this year, the biggest drop on the benchmark Stoxx 600 Banks Index after Spain’s Bankia SA.

Germany’s second-biggest bank, which increased capital for the fifth time in four years in May to repay state aid, is firing staff to help boost profitability as it tackles souring shipping and commercial real estate loans.