Advertisement

Massive profit losses at Commerzbank

Share this article

Photo: DPA
13:02 CET+01:00
Commmerzbank, Germany's second-biggest bank, said on Monday its full-year net profit tumbled to just €6.0 million in 2012 after heavy write downs pushed it into the red in the fourth quarter.

The bank said in a statement it booked a full-year profit of €6.0 million for the whole of 2012, compared with €638 million a year earlier, after it ran up net loss of €720 million in the period from October-December alone.

"On the basis of preliminary, unaudited figures the Commerzbank expects a net loss of approximately €720 million for the fourth quarter of 2012," the statement said.

The fourth-quarter loss included charges of €185 million from the sale of Ukrainian subsidiary Bank Forum announced last July, as well as €560 million in one-off write downs on deferred tax accruals, it explained.

For the whole year, Commerzbank booked a total €980 million in one-off charges.

However, underlying earnings, as measured by operating profit, increased to €1.2 billion in 2012 from €507 million, the bank added.

Revenues before loan loss provisions were virtually unchanged at €9.9 billion, while administrative expenses were cut to €7.0 billion from €7.992 billion. Loan loss provisions rose to almost €1.7 billion in 2012 from €1.4 billion in 2011.

Commerzbank said it would publish detailed fourth-quarter and full-year 2012 earnings on February 15.

Investors appeared disappointed by the heavy loss and Commerzbank shares were the biggest losers on the Frankfurt stock exchange where they were showing a loss of 2.11 percent just after midday, while the overall DAX 30 blue-chip index was down 0.4 percent.

Story continues below…

Last month, Commerzbank said it will axe 4,000-6,000 jobs – or more than one in 10 of its workforce – over the next three years as it tots up the toll from the financial and sovereign debt crisis.

In its statement on Monday, Commerzbank cautioned that restructuring charges of approximately €500 million were expected in the first quarter of 2013 in connection with these measures.

AFP/jcw

Share this article

Advertisement

From our sponsors

How to get British healthcare no matter where you are

Navigating the health care system in another country can be tough, and even when it all works out, sometimes you just miss the comfort of the system back home. But there's a solution.

Advertisement
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement