Commerzbank Q3 net loss 288 million euros
This compares to net income of 235 million euros and 0.19 euros per share last year, due mainly to the impairment on goodwill and other intangible assets.
"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 Stephan Engels, Chief Financial Officer of Commerzbank.
Including the goodwill impairments, Commerzbank expects a positive net result for the full year 2016. The CET 1 ratio after full application of Basel 3 should rise to around 12% by the end of the year.
Commerzbank intends to keep its cost base for full year 2016 stable compared to last year. The Bank will fully offset additional external burdens to achieve this. Loan loss provisions should be under 1 billion euros despite the continuously challenging situation on the shipping markets.
Operating profit for the third-quarter declined to 429 million euros from 452 million euros in the previous year.
Operating expenses amounted to 1.733 billion euros compared to 1.719 billion euros in the prior year.
Revenues before loan loss provisions grew to 2.437 billion euros from 2.317 billion euros last year.
The Common Equity Tier 1 ratio or CET 1 with full application of Basel 3 stood at 11.8% at the end of September 2016 compared to 10.8% at the end of September 2015. ■