German lender Commerzbank AG (CRZBY.PK) Friday said it expects to report a net loss in its first quarter of 2013, impacted by one-off effects due to its planned job cuts. Accordingly, the firm has booked about 500 million euros in restructuring expenses.
The bank said it started solidly in the first quarter of 2013 in operational terms, but the first-quarter will be affected by the one-off effects. In January end, Commerzbank had announced its plans to slash 4000 to 6000 jobs at the Group level until 2016.
As announced earlier, Commerzbank plans to invest more than 2 billion euros through to 2016 in its core business. At the same time, it intends to keep costs stable, with further optimizing its capital resources.
The lender has also set a goal of generating a post-tax return on equity after taxes of more than 10 per cent in the Core Bank by the year 2016, and intends to reduce cost-income ratio in the Core Bank to around 60 percent.
In addition, it aims a Common Equity Tier 1 ratio of more than 9 per cent by the end of 2014. "We are convinced that we will reach these objectives," said Martin Blessing, chairman of the Board of Managing Directors.
Blessing stated that the planned complete and early repayment of the silent participations of SoFFin marks the beginning of the end of the federal government's engagement in Commerzbank.
Last month, the firm said it is planning a capital increase of 2.5 billion euros to repay the state bailout it received during the financial crisis. The action is expected to significantly improve its regulatory capital structure. The lender plans an early repayment in full of the silent participations of the Financial Market Stabilization Fund or SoFFin of about 1.6 billion euros and Allianz of 750 million euros.
After the completion of the capital increase, SoFFin's shareholding in Commerzbank is expected to decrease from 25 percent plus one share to below 20 percent.
According to the bank, all the necessary resolutions by shareholders for the capital measure for the repayment in full of the remaining silent participations of SoFFin and Allianz are to be approved today as part of the annual general meeting.
On Frankfurt's Xetra, Commerzbank shares are currently trading at 1.15 euros, down 0.77 percent, on a volume of 19.12 million shares.
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