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12th August 2011

Commerzbank results hit hard by Greek bond writedowns

Commerzbank reported Q2 net attributable of €24m (£21m $34m ¥2.6bn Y221m) and half year of €1,009m (£892m $1,450m ¥110.8bn Y9,298m) FALLS of 93% and 5% respectively. The major fall in Q2 profit followed a €760m writedown on Greek bonds, 25% of the value. On the other side of the equation the results were boosted from lower loan loss provisions, down €700m for the half year though critically down only €30m for Q2.


Commerzbank did not formally withdraw its financial targets for this full year or next however put conditions around them, dependent on the financial markets. Whilst understandable in one sense it perhaps emphasises the fragility remaining at the bank as it tries to restructure, run down or sell its legacy operations and control expenses.


Half year income summary 2011 2010 Change
€m €m %
Interest income 8,567 9,644 –11.2
Interest expense 5,050 5,905 –14.5
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Net interest income 3,517 3,739 –5.9
Loan loss provisions –596 –1,283 –53.5
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Net interest income after provisions 2,921 2,456 18.9

Net commission income 1,948 1,902 2.4
Net trading income 1,212 1,223 –0.9
Net income from hedge accounting –117 –71 64.8
Net investment income –942 –59 >
Companies accounted using the equity method 13 8 62.5
Other net income 348 –8 --
Operating expenses -4,184 -4,437 –5.7
Restructuring expenses – -33 --
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Pre-tax profit/loss 1,199 981 22.2
Taxes on income 137 –96 --
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Consolidated net profit 1,062 1,077 –1.4
Non-controlling interests 53 17 >
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Attributable to Commerzbank shareholders 1,009 1,060 –4.8