The bank attributed the net loss in the second quarter to €511m restructuring costs and a special write-off to an outsourcing project
Commerzbank books loss due to restructuring. (Credit: Commerzbank AG.)
Commerzbank has reported a net loss of €527m for the second quarter ended 30 June 2021, compared to a net profit of €183m for the same period last year.
Its pre-tax loss for the reported period was €478m, compared to a profit of €211m for the corresponding quarter in 2020.
The company reported revenue of €1.8bn for the second quarter of 2021, an 18% decrease compared to €2.2bn for Q2 2020.
The German bank reported an operating profit of €32m for Q2 2021, compared to €205m for the same period last year.
Its common equity tier 1 (CET 1) ratio for Q2 2021 was 13.4, which remained almost unchanged from the corresponding quarter in 2020.
Commerzbank attributed the net loss in the second quarter to restructuring costs of €511m and a special write-off to an outsourcing project.
Commerzbank CEO Manfred Knof said: “We have achieved a solid operating result in the first half of the year.
“The implementation of the strategy is right on track. We are driving all strategic initiatives forward and we are also ready to make tough decisions if necessary.”
Commerzbank CFO Bettina Orlopp said: “In the second quarter, we have kept our Common Equity Tier 1 ratio stable despite the high one-time write-off and restructuring expenses.
“This again proves that we have a very strong basis for the transformation, and it demonstrates that we are also able to deal with exceptional charges on our way to a sustainably profitable future.”
Commerzbank said that without restructuring expenses, it would have achieved a balanced net result.
The German lender has finalised its plans to cut 10,000 jobs and close around 340 branches in Germany by 2024, as part of its restructuring programme, in February this year.
In May, the bank has reached an agreement with employee representatives on cutting nearly 10,000 full-time roles, under its previously announced restructuring plan.