Commerzbank Expects Loss in 2020

Commerzbank is now expecting a loss due to the corona pandemic and the costs of the corporate restructuring.

Commerzbank said on Wednesday that it expects to record a loss this year. The bank’s second-quarter profit fell due to the increase in provisions.

The German bank said its net profit fell 21% in the second quarter to 220 million euros ($259.7 million).

The risk provision increased significantly from 178 million euros to 469 million euros, offsetting the 6.8% increase in revenue and the decline in operating expenses.

Commerzbank said that “in view of the expected risk outcome and potential restructuring costs,” the bank expects to record a loss this year.

The bank said that the risk provision for 2020 should be between 1.3 billion euros and 1.5 billion euros, and the cost base should be slightly lower than the previous year.

“We increased our earnings and our capital ratio in the second quarter. However, the operating result was negatively impacted by the risk result. It is therefore all the more important that we reduce our costs in order to be able to cushion future burdens,” said recently acting CFO Bettina Orlopp.

 

Reviewer overview

Commerzbank Expects Loss in 2020 - /10

Summary

Commerzbank is now expecting a loss due to the corona pandemic and the costs of the corporate restructuring.

0 Bad!