Commerzbank AG (CRZBY.PK) Monday said it expects a net loss for its fourth quarter of 2012, which included charges related to sale of Bank Forum as well as a tax asset writedown.
On a preliminary basis, the bank expects net loss of about 720 million euros in its fourth quarter of 2012, compared to a profit of 316 million euros in the prior year.
The German bank noted that the result includes charges of 185 million euros from sale of Bank Forum and extraordinary depreciation on deferred tax accruals of around 560 million euros. In last July, Commerzbank agreed with Ukrainian Smart Group on the sale of its stake of about 96 percent in Ukraine's Bank Forum.
Commerzbank has increased its full-year 2012 operating profit to about 1,200 million euros, compared to 507 million euros in the prior year. Revenues before loan loss provisions were virtually flat at 9.9 billion euros, it added.
The company sees net profit for the year of 6 million euros, up from 638 million euros last year. The 2012 result includes extraordinary charges totaling around 980 million euros. The extraordinary charges relates mainly to charges in connection with the sale of Bank Forum of 268 million euros and depreciation on deferred tax accruals totaling 673 million euros.
Loan loss provisions advanced to around 1.7 billion euros from 1.4 billion euros in the preceding year.
As announced in November last year, Commerzbank said it will implement job cuts of 4,000 to 6,000 full-time equivalents at the Group level until 2016, and it expects to incur about 500 million euros of restructuring charges in the first quarter of 2013. The company's action is in an effort to reduce costs in material and personnel areas.
In addition, Commerzbank continues to assume it can service the silent participation of the SoFFin for the 2012 financial year.
On November 8, the lender reported a turnaround to profit in its third quarter, as the prior-year comparisons were impacted by impairment write-downs on Greek sovereign bonds.
The company would publish its detailed results for the fourth quarter and full year 2012, on February 15.
On Frankfurt's Xetra, the shares are down 3.73 percent at 1.55 euros, on a volume of 43.99 million shares.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org