Commerzbank earnings q2 2021

LONDON — Commerzbank on Wednesday reported a web second-quarter loss on account of restructuring prices and an distinctive write-off to an outsourcing challenge.

The German lender noticed a web lack of 527 million euros ($625.7 million) within the three months by way of to the tip of June, roughly in step with analyst expectations of a web lack of 504 million euros.

This was after reserving restructuring bills of 511 million euros and a write-off for ending an outsourcing challenge of 200 million euros.

Shares of Commerzbank tumbled to the underside of the pan-European Stoxx 600 index on the information, down greater than 5% throughout morning commerce in London.

“Now we have saved our Frequent Fairness Tier 1 ratio secure regardless of the excessive one-time write-off and restructuring bills,” Bettina Orlopp, chief monetary officer of Commerzbank mentioned in an announcement.

“This once more proves that we’ve got a really robust foundation for the transformation, and it demonstrates that we’re additionally capable of cope with distinctive prices on our technique to a sustainably worthwhile future.”

The German financial institution’s CET1 ratio, a measure of financial institution solvency, stood at 13.4% on the finish of the quarter.

Different highlights of the quarter:

  • Revenues reached 1.86 billion euros, an 18.1% drop from a 12 months in the past.
  • Working bills stood at 1.7 billion euros, versus 1.53 billion a 12 months in the past.

Talking to CNBC’s “Squawk Field Europe” on Wednesday, Orlopp mentioned: “On the shopper facet we’re glad, in the event you have a look at the numbers web fee revenue is 7% up year-on-year, in order that’s an excellent consequence.”

She additionally mentioned that the financial institution is aiming to realize an working revenue this 12 months, regardless of the newest outcomes.

“We’re concentrating on undoubtedly an working revenue, I believe the entire query is what occurs with web revenue for the 12 months – that is more durable to foretell,” Orlopp mentioned.

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