Germany’s Commerzbank said on Wednesday it swung to a loss in the first quarter, as the lender undergoes restructuring and dealt with the fallout from the coronavirus pandemic.
The bank posted a net loss of 295 million euros ($319.99 million) in the first quarter, compared with a net profit of 122 million euros last year. The quarterly numbers came in worse than a consensus forecast of 240 million euro loss.
The bank said it was difficult to provide an outlook for the full year, but assuming a gradual recovery after a two-month lockdown, and no second lockdown, Commerzbank will keep revenue in its customer business “largely table” this year.
“We will intensify our cost management this year,” Chief Financial Officer Bettina Orlopp said.
The German lender witnessed a rough few months as it halted its 2019 dividend plans, back-tracked on the sale of its Polish bank mBank, and lost a long-standing sponsorship deal for the local soccer team to larger rival Deutsche Bank .
Commerzbank, the second-largest lender in Germany, is now looking for further cost cuts as it restructures after a failed attempt to merge with Deutsche.
Via Reuters
