• Germany's news in English
 
Massive profit losses at Commerzbank
Photo: DPA

Massive profit losses at Commerzbank

Published: 04 Feb 2013 13:02 GMT+01:00

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.

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

The Local (news@thelocal.de)

Your comments about this article

17:25 February 4, 2013 by steel jaws
Once the Commerz Bank was one of the best in Germany, now its only one of the biggest. The trouble is, who can you trust at all these days? The GE Bank was also very good, then came a Spanish concern, bought it out, stopped paying interest and started charging for everything which had been free.

Nevertheless, its not just the Bank managers who, despite colossal remuneration, are proving to be so inadequate. The industry is little better. According to a local newspaper last Saturday, a large button manufacturer is going to sack off 55 employees, a result of bad management of course, but the managers are able to keep their positions with no loss of income. The production will be moved to Poland and China where the working conditions are not comparable with those here.

I wonder what the customers think, when they find out that German trade names are being used for buttons from China, or that the hard hit German textile industry is selling clothes made in Bangladesh.

These methods may result in high, short time profit, but people who are used to and want quality products, will almost certainly turn to France or Scotland when they realise what is going on. That will then cost even more workers their jobs!
18:56 February 4, 2013 by raandy
I would like to know how much of a write was for risky investments,

And banks do not need supervision , wrong.
20:22 February 4, 2013 by iseedaftpeople
Those poor banks... so heartbreaking. Always an unspeakable tragedy when banks are struggling like that.
06:11 February 5, 2013 by Beachrider
Profit losses? Who talks like that?
12:02 February 6, 2013 by LIMA
Ten or so years ago we would have heard "Oh that can`t happen in Germany"

yeah....ok...

That no longer applies.

The misguided opinion of some Germans that their country is somehow immune to the economic ups and downs is no longer true.
Today's headlines
American guilty of killing Hamburg student
Diren Dede's grieving parents outside the court in Missoula Photo: DPA

American guilty of killing Hamburg student

A US court has found a man who shot and killed 17-year old German exchange student Diren Dede guilty of deliberate homicide. READ  

Cabinet agrees road toll for foreigners from 2016
Photo: DPA

Cabinet agrees road toll for foreigners from 2016

After months of bickering among the coalition parties, the cabinet finally agreed to put a road toll for foreigners before parliament, but open questions about its financial viability and legality remain. READ  

Over half of Christmas trees carry pesticides
Ordinary people might soon be copying this contestant in last January's Christmas tree-throwing contest in Swabia. Photo: DPA

Over half of Christmas trees carry pesticides

Friends of the Earth Germany (BUND) said that it found poisonous chemicals in more than half of German Christmas trees it had tested. READ  

'Breakthrough' in train strike: union
Stranded passengers during the train strike Photo: DPA

'Breakthrough' in train strike: union

The head of the train drivers union GDL claimed a "breakthrough" late Wednesday in talks with Deutsche Bahn, which may herald the end of a spate of train strikes which have caused travelling misery and cost the rail operator around 100 million euros. READ  

Opinion
What does Dresden have against Muslims?
The baroque skyline of Dresden Photo: DPA

What does Dresden have against Muslims?

The Pegida movement (Patriotic Europeans Against the Islamization of the West) was unknown three months ago. Now it's making Dresden famous - for all the wrong reasons. READ  

Amazon strike extended to Saturday
Workers at the Amazon distribution centre in Leipzig. Photo: DPA

Amazon strike extended to Saturday

Union Verdi announced on Wednesday that its members at two Amazon distribution centres would extend a planned three-day strike through the rest of the week, while four more sites saw new walkouts. READ  

Russia in clear over death of German MP
The late German parliamentarian Andreas Schockenhoff Photo: DPA

Russia in clear over death of German MP

A post-mortem on a prominent German MP and critic of Vladimir Putin showed no signs of foul play, prosecutors said Wednesday. READ  

'Tear Down This Plaque' row over GDR sign
Former East German leader and "comrade" Erich Honecker Photo: DPA

'Tear Down This Plaque' row over GDR sign

A historic Berlin museum is facing calls to pull down a plaque commemorating the former East German communist leader Erich Honecker. READ  

'Reform business inheritance tax' court tells MPs
Presiding judge Ferdinand Kirchhof announcing the decision on Wednesday. Photo: DPA

'Reform business inheritance tax' court tells MPs

Judges at the Constitutional Court in Karlsruhe said on Wednesday that the government must change rules reducing tax on inherited family-owned businesses within 18 months. READ  

Cabinet agrees to send 100 army trainers to Iraq
A German soldier training a Kurdish fighter with the German-made G3 rifle. Photo: DPA

Cabinet agrees to send 100 army trainers to Iraq

MPs in the Bundestag will vote in January on a controversial plan to send 100 soldiers to Iraq to train Kurdish fighters battling terrorist group Isis. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Germany's national football team lifts the World Cup trophy
Gallery
Germany's most-Googled words of 2014
National
Why has The Local got a new logo?
Photo: DPA
National
This German was abducted and tortured by the CIA
Culture
10 top tips for partying in Germany
Sponsored Article
Top ten gifts for an expat Christmas
Photo: DPA
Technology
What does the Chancellor see as the future of the internet?
Photo: DPA
Culture
Stuff your face with these festive German cookies
Photo: DPA
Culture
What do beer, breakfast cereal and dildos have in common?
Culture
The Local's guide to German Christmas markets
Sponsored Article
Top five quirky Christmas jumpers
Photo: DPA
Culture
Get ready for Christmas like a German. We tell you how.
Photo: DPA
Munich
She did what with her dead mother?
Photo: DPA
National
Germany still paying for crisis fall out
Photo: DPA
Culture
Saxon wurst is the worst, Christmas market declares.
Photo: DPA
Politics
Can 'sorry' ever be enough for the Linke?
Sponsored Article
Shop Christmas gifts at Debenhams international store
Sponsored Article
Ever wanted to try out home exchange?
Photo: DPA
Berlin
The Local's series on 25 years since the fall of the Berlin Wall
Shutterstock
Sponsored Article
Offer: Unlimited airmiles through December 19th
Photo: DPA
Gallery
See how Berlin has changed in 22 photos
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,167
jobs available
The Local Spain is hiring!
The Local is seeking a new editor for our site in Spain to join our growing team of internationally-minded, driven, ambitious and clued-up journalists.
Details and how to apply
Toytown Germany
Germany's English-speaking crowd