Commerzbank's Q3 Operating Result To Be Impacted By Addl Provisions At Polish Subsidiary

Commerzbank AG's (CRZBY.PK) third-quarter operating result would be impacted, after its Polish subsidiary mBank booked additional provisions for Swiss franc portfolio of the equivalent of 490 million euros, the German lender said in a statement.

However, Commerzbank still expects a net result to be more than 1 billion euros for the financial year 2022.

"Despite the new burden in Poland, we are maintaining our earnings target for the full year 2022 in view of the strong overall revenue development," said Bettina Orlopp, Chief Financial Officer of Commerzbank.

Commerzbank noted that mBank booked further additional provisions for its Swiss franc portfolio of approximately 490 million euros as a result of the announced model review. The total provisions for credit agreements indexed on foreign currencies now amount to around 1.43 billion euros. The additional provisions will have a corresponding negative impact on Commerzbank's results in the third quarter which will be booked as negative revenues in "Other net income". mBank also announced a new settlement programme to reach individual agreements with customers.

Commerzbank expects a positive operating result for the third quarter for the Group as long as the uncertainties about energy supply do not require a further significant risk provisioning.

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