Commerzbank loss $982 million, to layoff 6,000 through 2016Staff writer ▼ | Monday February 4, 2013 11:05AM ET
The loss includes includes the charges of 185 million euros from the sale of Bank Forum as announced in July 2012 and extraordinary depreciation on deferred tax accruals in the amount of 560 million euros.
On the basis of preliminary, unaudited figures, German bank has increased its operating profit to approximately 1,200 million euros for the 2012 financial year as a whole. Revenues before loan loss provisions were virtually unchanged at 9.9 billion euros; in contrast, administrative expenses were reduced to approximately 7,000 million euros.
As expected, said the company, loan loss provisions increased to almost 1.7 billion euros. The net profit of six million euros includes extraordinary charges totalling approximately 980 million euros, relating primarily to charges in connection with the sale of Bank Forum of 268 million euros and depreciation on deferred tax accruals of 673 million euros.
Commerzbank continues to assume it can service the silent participation of the SoFFin for the 2012 financial year. SoFFin (Sonderfonds Finanzmarktstabilisierung - Special Financial Market Stabilization Funds) is a program of the German government with the purpose to stabilize and restore confidence in the financial system created by the German Parliament in 2008.
Commerzbank currently assumes that the Group will implement headcount reductions in the region of 4,000 to 6,000 full-time equivalents through 2016. Restructuring charges of approximately 500 million euros are expected in the first quarter of 2013 in connection with these measures. The company will publish its detailed financial results for the fourth quarter and full year 2012 on February 15, 2013. ■