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Commerzbank loses 1 billion euros in Q3, hit by bad credits
Nov 5, 2009, 8:40 GMT
Frankfurt - German banking concern Commerzbank said Thursday it lost 1 billion euros (1.46 billion dollars) in the third quarter of 2009 as results were hit by toxic loans and restructuring costs.
With the results, Frankfurt-based Commerzbank said it would have less money available for its restructuring.
Commerzbank chief executive Martin Blessing, in a message to shareholders, said the overall business environment for the bank remained 'rather difficult.'
With the poor economy hurting companies' ability to repay loans to the bank, Commerzbank was having to set aside a further more than 1 billion euros to cover its lending.
Germany's second-biggest bank was also hurt by write-downs in the sale of Eurohypo and in the costs of integrating Dresdner Bank, acquired in 2008, into the company operations. The cost of integrating Dresdner Bank were estimated at some 2 billin euros.
After nine months, Commerzbank had posted 2.7 billion euros in losses, compared with a profit of 812 million euros in the same period of 2008.
Analysts are now projecting that Commerzbank's full-year het loss would reach some 3 billion euros. Last year, amid the massive cost of the Dresdner Bank takeover, Commerzbank plunged 6.5 billion euros into the red and required state financial backing.
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