logo
Share SHARE
FONT-SIZE Plus   Neg

Commerzbank Expects Net Loss Of About EUR 720 Mln In Q4 - Update

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: editorial@rttnews.com

Business News

Editors Pick
French car maker Renault SA reported Friday higher profit in its fiscal 2015, with strong growth in automotive profit and revenues. The company announced higher dividend. Looking ahead, for fiscal 2016, Renault expects to increase group revenues at constant exchange rates and improve group operating margin. Shares of Rolls-Royce Holdings Plc were gaining around 13 percent in the morning trading in London after the engine maker reported more-than doubled profit in its fiscal year 2015, with lower one-time items. Underlying earnings were hurt by weakness in Marine markets. Further, the company halved its dividends, and still expects lower revenues next year. German steel giant ThyssenKrupp AG reported a loss in its first quarter, compared to last year's profit as sales and orders were hurt by sharp deterioration in materials businesses. The company said its overall performance in the first quarter was within its full-year forecast corridor. Looking ahead, the company continues to expect higher net income and flat sales for fiscal 2016.
comments powered by Disqus
Follow RTT