* Targets 4 billion euro operating profit in 2012
* Targets 12 percentnet ROE in 2012
* Still sees NPLs of around 3.5 bln euros in 2009 -paper
* Risky Dresdner assets stabilising but defaults unclear
* Shares up 2.3 percent
(Adds detail, CEO comment, shares)
FRANKFURT, June 24 (Reuters) - Commerzbank is sticking to mid-term financial targets and plans to achieve sustainable operating profit of at least 4 billion euros ($5.5 billion) in 2012, its chief executive said on Wednesday.
In a slide presentation to an investor conference, Martin Blessing said Germany's second-biggest lender was aiming for a return on equity after tax of 12 percent in 2012.
Commerzbank has had to turn to the German government for help in weathering the financial market crisis, taking 18.2 billion euros in a capital injection and giving the government a stake of 25 percent plus one share in exchange.
Blessing said he expected to return to profit in 2011 at the latest and begin paying back capital support if market conditions are favourable.
Separately on Wednesday in a newspaper interview, Blessing said Commerzbank expected to rack up 3.5 billion euros in non-performing loans this year, about the same level as last year, as Germany rolls through its deepest recession in decades.
"Currently things are going a bit better but the second half of the year could be worse," he told the Hannoversche Allgemeine Zeitung newspaper.
Blessing also said there was an easing of concerns involving the risky assets that Commerzbank obtained through its acquisition of Dresdner Bank from insurer Allianz.
"Prices have partly stabilised and the downward trend there appears to have come to a stop. However there is no broad recovery in sight yet and we cannot foresee what will really default," he said.
Commerzbank shares were up 2.3 percent to 4.434 euros by 0900 GMT, outpacing a 1.3 percent rise in the DJ Stoxx index of European banking shares. (Reporting by Jonathan Gould; Editing by Dan Lalor) ($1 = 0.7216 euro)