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Commerzbank predicts tough 2013

Friday, Feb 15, 2013 - 01:12

Feb. 15 - Commerzbank, Germany's second biggest lender, said it would aside slightly more money for bad loans this year as the economic environment worsens. The lender received an 18 billion-euro government bailout at the height of the financial crisis and has warned more charges are yet to come. Hayley Platt reports.

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Commerzbank says it will set aside more money for bad loans in 2013, as the economic environment gets worse. Germany's second biggest lender has increased its loan loss provisions from almost 1.4 billion euros to 1.7 billion. Earlier this month, the bank posted a slump in 2012 net profit. Martin Blessing, the bank's CEO, asked investors to be patient. SOUNDBITE: Martin Blessing, CEO, Commerzbank, saying (German): "This year will be determined by the implementation of our strategic plans. Therefore 2013 will be a year of restructuring, and that costs effort, money and time." Commerzbank received an 18-billion euro government bailout at the height of the financial crisis, and has warned more charges are to come. It wants to axe up to 12 percent of its workforce by 2016. But cutting between 4,000 and 6,000 jobs will cost around half a billion euros. Most of those staff are expected to come from its loss-making domestic business. The German government still owns a 25% stake in the bank. And Commerzbank says it's unlikely to pay investors a dividend this year.

Commerzbank predicts tough 2013

Friday, Feb 15, 2013 - 01:12

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