After a profit at the beginning of the year, Commerzbank slipped into the red in the second quarter. The reasons are expenses for the group restructuring and depreciation for a major project that has been stopped.
The bottom line was that the bank made a loss of 527 million euros from April to June, as the institute announced. A year earlier, the institute had earned 77 million euros in the same period.
The operating result in the past second quarter was 26 million euros. Analysts had an operating result of 52 million euros and a consolidated loss of 504 millions of euros. For the year as a whole, Commerzbank, of which the German state is the largest shareholder, continues to expect a positive operating result.
The CEO Manfred Knof, who has been in office since January 1, expressed his satisfaction: »We achieved a solid operating result in the first half of the year. The implementation of the strategy is right on track. «
Massive job cuts in Germany Knof is currently fundamentally restructuring Commerzbank. 200 branches in Germany are to be closed this year. After completion of the group restructuring, 790 branches should still be 450. By the end of 2024 the board wants the number of full-time positions group-wide of about 39.500 on 32.000 reduce. Every third job in Germany is lost. Whole departments are closed or outsourced.
The aim of the management is to reduce the total costs to 5.3 billion euros by the end 2024. That would be around 20 percent less than in the year 2020. But the conversion costs. The cost situation is already tense, for example due to fee reimbursements to customers.
The fact that the bank had to write off around 183 million euros because the financial house decided to outsource the Stop securities settlement.
The second quarter was better than at Commerzbank at the larger competitor Deutsche Bank . This generated the bottom line from April to June a profit of 692 million euros.