Commerzbank to announce large loss for Q4 2012
Commerzbank, Germany’s second biggest lender, is to announce a large loss for the fourth quarter of 2012.
Commerzbank expects a net loss of 720 million euros after a revision of its medium-term profits forecast had a negative effect on its tax accounting.
Full-year net profit will be just 6 million euros, down from 638 million euros in 2011, due to extraordinary charges totaling 980 million euros for the year, the bank said.
Restructuring charges will cost it a further 500 million euros in early 2013.
Commerzbank, which was downgraded by ratings agency Moody’s in June 2012, intends to cut 4,000 to 6,000 jobs by 2016 and to invest more than 2 billion euros revamping its retail banking operation.
Its shares were down more than 5% in afternoon trading.
Commerzbank will publish its detailed financial results for the fourth quarter and full-year on February 15.
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