New loss for Commerzbank
GERMANY’S Commerzbank has suffered a net loss of €746m (£636m) in the second quarter of the year as it battles through the financial crisis.
The bank narrowed its first quarter loss of €861m, as revenues rose by 31 per cent to €3.1bn, compared to €2.3bn in the first quarter.
Provisions against risky loans were up from €414m in the first quarter of last year to €993m, but still came in below an analysts’ forecast of €960m.
The results were dented by a charge of €216m on the integration of Dresdner Bank, which Commerzbank purchased in January, while Dresdner’s toxic assets were also largely responsible for the increase in provisions.
Chairman Martin Blessing said the bank was facing a “challenging year” but added that it was fulfilling its obligation to the German state by lending €134bn to businesses in Europe’s largest economy.
Commerzbank has taken around €20bn in state aid since the start of the crisis, handing a 25 per cent stake to the government in return.
But the lender said that it was on course to repay €5bn in debt guarantees to the German financial markets stability fund SoFFin, part of a total of €15bn in guarantees offered to the bank.