FRANKFURT (Reuters) -Commerzbank beat expectations with a first-quarter profit and raised its revenue outlook, buoyed by strong trading commission as the German lender shrinks operations and makes heavy job cuts.

Despite swinging to a profit in the quarter, analysts expect Germany’s second-biggest bank to remain in the red this year as it conducts a 2 billion euro ($2.42 billion) restructuring involving hundreds of branch closures while axeing 10,000 jobs.

Commerzbank on Wednesday posted a net profit of 133 million euros in the three months to March 31, against a loss of 291 million euros a year earlier. Analysts had expected a net loss of 131 million euros.

The better than expected performance was largely attributable to net commission income from securities trading, a trend that has also helped other banks in the first quarter

​The bank, which is still partially owned by the state after a bailout during the financial crisis more than a decade ago, now expects full-year revenue to slightly exceed last year’s, a more optimistic view than previous expectations for a slight decline.

“After a very good start into the year, we are looking confidently to the future despite the ongoing pandemic,” said Chief Executive Manfred Knof.

Shares were up 2% in pre-market trade.

Last week Knof struck a deal with employees over the planned job losses.

The agreement is central to Knof’s effort to restore profitability for a bank that has never fully recovered since its bailout and made a 2.9 billion euro loss last year.

($1 = 0.8250 euros)

(Reporting by Tom Sims and Patricia UhligEditing by Maria Sheahan and David Goodman)