FRANKFURT, Feb 15 (Reuters) - Commerzbank Chief Financial Officer Stephan Engels said Germany’s second-largest lender could skip paying a dividend again for 2013.
“A dividend for 2013 is unlikely,” Engels told a conference call for analysts on Friday after the company published full fourth-quarter financial results. Commerzbank last paid a dividend for 2007.
Commerzbank shares were trading 1.36 percent lower, at around 1.45 euros ($1.90)a share.
Engels further said he does not expect that 2013 will be a better year than 2012 with regard to the performance of Commerzbank’s ship finance business. Engels further said the current quarter had started “okay-ish”.
Upon being asked whether further restructuring charges could hurt Commerzbank profits under HGB German GAAP rules, and therefore its ability to pay the coupon on a government bailout, Engels said: “At this early stage there will be no forecasting on the HGB results. Clear is that we have every intention of servicing the silent participation. The restructuring charge will have an effect on the HGB result.”
As part of a bailout of Commerzbank, Germany took a stake in the form of non-voting capital - the so-called silent participation. Under the terms of the bailout agreement, Commerzbank pays the coupon on the capital if it makes a profit under German HGB rules.
$1 = 0.7495 euros Reporting By Edward Taylor