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Germany's Commerzbank reports net loss in Q3 amid restructuring

Xinhua, November 5, 2016 Adjust font size:

Germany's second-largest bank, Commerzbank, reported Friday it had suffered a quarterly net loss of 288 million euros (320 million U.S. dollars) in the third quarter.

The loss was due mainly to the impairment on goodwill and other intangible assets amounting to the goodwill write-off of 627 million euros.

However, Commerzbank posted a net profit of 96 million euros in the first nine months of this year, markedly lower than the same period of 2015 when the bank had achieved a net profit of nearly 900 million euros.

Meanwhile, Commerzbank, which is dedicated to ship finance, has raised its loan loss provisions to 610 million euros by the end of September, in view of further deterioration in the shipping markets.

Despite the ongoing implementation of a new strategy and restructuring at the company, a positive net result for the full year 2016 could still be expected, said the bank.

"Commerzbank has a strong market position in corporate banking. We have seen further growth in retail banking and at our Polish subsidiary, mBank," said Martin Zielke, chairman of the board of managing directors at Commerzbank.

"We have reconfirmed our very good risk profile and increased our Common Equity Tier 1 ratio to 11.8 percent. It should rise to around 12 percent by the end of the year," said chief financial officer Stephan Engels.

Previously, Germany's second-largest bank announced plans to cut 9,600 jobs, or a fifth of its workforce, over the next four years. Endit