SHARE
COPY LINK

BANKING

Massive profit losses at Commerzbank

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.

Massive profit losses at Commerzbank
Photo: DPA

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

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

BERLIN

EXPLAINED: Berlin’s latest Covid rules

In response to rapidly rising Covid-19 infection rates, the Berlin Senate has introduced stricter rules, which came into force on Saturday, November 27th. Here's what you need to know.

A sign in front of a waxing studio in Berlin indicates the rule of the 2G system
A sign in front of a waxing studio indicates the rule of the 2G system with access only for fully vaccinated people and those who can show proof of recovery from Covid-19 as restrictions tighten in Berlin. STEFANIE LOOS / AFP

The Senate agreed on the tougher restrictions on Tuesday, November 23rd with the goal of reducing contacts and mobility, according to State Secretary of Health Martin Matz (SPD).

He explained after the meeting that these measures should slow the increase in Covid-19 infection rates, which was important as “the situation had, unfortunately, deteriorated over the past weeks”, according to media reports.

READ ALSO: Tougher Covid measures needed to stop 100,000 more deaths, warns top German virologist

Essentially, the new rules exclude from much of public life anyone who cannot show proof of vaccination or recovery from Covid-19. You’ll find more details of how different sectors are affected below.

Shops
If you haven’t been vaccinated or recovered (2G – geimpft (vaccinated) or genesen (recovered)) from Covid-19, then you can only go into shops for essential supplies, i.e. food shopping in supermarkets or to drugstores and pharmacies.

Many – but not all – of the rules for shopping are the same as those passed in the neighbouring state of Brandenburg in order to avoid promoting ‘shopping tourism’ with different restrictions in different states.

Leisure
2G applies here, too, as well as the requirement to wear a mask with most places now no longer accepting a negative test for entry. Only minors are exempt from this requirement.

Sport, culture, clubs
Indoor sports halls will off-limits to anyone who hasn’t  been vaccinated or can’t show proof of recovery from Covid-19. 2G is also in force for cultural events, such as plays and concerts, where there’s also a requirement to wear a mask. 

In places where mask-wearing isn’t possible, such as dance clubs, then a negative test and social distancing are required (capacity is capped at 50 percent of the maximum).

Restaurants, bars, pubs (indoors)
You have to wear a mask in all of these places when you come in, leave or move around. You can only take your mask off while you’re sat down. 2G rules also apply here.

Hotels and other types of accommodation 
Restrictions are tougher here, too, with 2G now in force. This means that unvaccinated people can no longer get a room, even if they have a negative test.

Hairdressers
For close-contact services, such as hairdressers and beauticians, it’s up to the service providers themselves to decide whether they require customers to wear masks or a negative test.

Football matches and other large-scale events
Rules have changed here, too. From December 1st, capacity will be limited to 5,000 people plus 50 percent of the total potential stadium or arena capacity. And only those who’ve been vaccinated or have recovered from Covid-19 will be allowed in. Masks are also compulsory.

For the Olympic Stadium, this means capacity will be capped at 42,000 spectators and 16,000 for the Alte Försterei stadium. 

Transport
3G rules – ie vaccinated, recovered or a negative test – still apply on the U-Bahn, S-Bahn, trams and buses in Berlin. It was not possible to tighten restrictions, Matz said, as the regulations were issued at national level.

According to the German Act on the Prevention and Control of Infectious Diseases, people have to wear a surgical mask or an FFP2 mask  on public transport.

Christmas markets
The Senate currently has no plans to cancel the capital’s Christmas markets, some of which have been open since Monday. 

According to Matz, 2G rules apply and wearing a mask is compulsory.

Schools and day-care
Pupils will still have to take Covid tests three times a week and, in classes where there are at least two children who test positive in the rapid antigen tests, then tests should be carried out daily for a week.  

Unlike in Brandenburg, there are currently no plans to move away from face-to-face teaching. The child-friendly ‘lollipop’ Covid tests will be made compulsory in day-care centres and parents will be required to confirm that the tests have been carried out. Day-care staff have to document the results.

What about vaccination centres?
Berlin wants to expand these and set up new ones, according to Matz. A new vaccination centre should open in the Ring centre at the end of the week and 50 soldiers from the German army have been helping at the vaccination centre at the Exhibition Centre each day since last week.

The capacity in the new vaccination centre in the Lindencenter in Lichtenberg is expected to be doubled. There are also additional vaccination appointments so that people can get their jabs more quickly. Currently, all appointments are fully booked well into the new year.

 

SHOW COMMENTS