FRANKFURT, Aug 4 Reuters Germany39;s Commerzbank said its second quarter net profit rose a betterthanexpected 20, aided by higher interest rates but held back by previously flagged problems in Poland.

The bank raised its outlook for fullyear net interest income to 7.8 billion euros 8.54 billion from previous expectations of some 7 billion euros, but cut its net commission income forecast and slightly raised its cost expectations.

Shares in Commerzbank, one of Germany39;s bestknown banks which partially held by the government after a bailout more than a decade ago, opened 2.7 lower on Friday.

Commerzbank in the middle of a major overhaul, slashing its workforce and branch network to restore profits.

Like many banks, it is benefiting from a rise in interest rates and the income that generates, which was up 44 in the quarter from a year earlier.

Net profit of 565 million euros in the quarter compared with a profit of 470 million euros a year earlier. Analysts had on average forecast profit of 538 million euros, according to a consensus published by Commerzbank.

Analysts with Deutsche Bank called the results solid.

The bank increased the provisions it sets aside for bad loans and related writedowns to 208 million euros, up from 106 million euros, but it said credit quality remained high.

Commerzbank took a 347 million euro hit in the quarter from a provision it announced in June following a court ruling on how banks treat Swiss franc loans in Poland, where it has…