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

Commerzbank climbed 16 per cent to €7.66, valuing the company at €8.7 billion. The stock has plummeted 29 per cent this year, the biggest drop on the benchmark Stoxx 600 Banks Index after Spain’s Bankia. Germany’s second-biggest bank is firing staff to help boost profitability as it tackles souring shipping and commercial real estate loans.

"We are on the right track and we intend to press ahead systematically with the strategic measures that have been decided on," chief executive Martin Blessing said in a letter to shareholders. "The early signs indicate that we are in fact on the right path." – (Bloomberg)