Reports

Commerzbank Logs Net Loss, Operating Profit Rises

Tom Burroughes Editor London 5 November 2009

Commerzbank Logs Net Loss, Operating Profit Rises

Commerzbank, the Frankfurt-listed bank that has been selling non-German assets, including private banks, as a condition of receiving state aid, said today its operating profit for the third quarter was €122 million ($181 million), a €345 million increase from the previous quarter. However, the bank logged an overall loss due to loan loss provisions and restructuring costs.

Planned charges for the integration of Dresdner Bank (€904 million) and goodwill impairments led to a net result of minus €1.05 billion, compared with a result of minus €761 million in the second quarter.

The bank, which received substantial aid from the German government, has been shedding non-German assets to comply with European Union competition rules on state aid. The bank has recently agreed to sell off assets including Kleinwort Benson, the UK private bank.

Commerzbank said it had a Tier 1 capital ratio, under Basel II capital adequacy rules, of 10.9 per cent.

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