Commerzbank: stock slapped for disappointing results
(CercleFinance.com) - The share of German bank Commerzbank is down almost 7% in Frankfurt on Thursday, the group announced annual results that were deemed disappointing.
Currently down 6.8%, it is the biggest faller in the German MDAX mid-cap index, which is up around 0.7%.
Commerzbank, which is in the midst of a restructuring phase, saw its accounts plunge into the red in 2020, announcing an operating loss of 233 million for the year, compared with a profit of 1.25 billion euros in 2019.
Taking into account its restructuring charges, impairment charges on goodwill and other intangible assets, its net annual loss was 2.87 billion euros, compared with a profit of 585 million euros the previous year.
The disappointment lies mainly in net banking income, which fell short of consensus expectations, one analyst said.
The bank's revenues indeed fell slightly in 2020, reaching 8.45 billion euros, compared to 8.61 billion euros in 2019.
In its press release, Commerzbank presented the final details of its "Strategy 2024" program, which should enable it to return to a positive operating result as early as this year.
In particular, the plan calls for the closure of 190 branches in 2021, followed by the closure of 150 additional branches over 2022 and 2023.
In all, Commerzbank plans to cut some 10,000 full-time positions, a target that should be reduced to 7,500 net job losses, taking into account the 2,500 hirings planned by the group in more buoyant business lines, such as digital.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
Currently down 6.8%, it is the biggest faller in the German MDAX mid-cap index, which is up around 0.7%.
Commerzbank, which is in the midst of a restructuring phase, saw its accounts plunge into the red in 2020, announcing an operating loss of 233 million for the year, compared with a profit of 1.25 billion euros in 2019.
Taking into account its restructuring charges, impairment charges on goodwill and other intangible assets, its net annual loss was 2.87 billion euros, compared with a profit of 585 million euros the previous year.
The disappointment lies mainly in net banking income, which fell short of consensus expectations, one analyst said.
The bank's revenues indeed fell slightly in 2020, reaching 8.45 billion euros, compared to 8.61 billion euros in 2019.
In its press release, Commerzbank presented the final details of its "Strategy 2024" program, which should enable it to return to a positive operating result as early as this year.
In particular, the plan calls for the closure of 190 branches in 2021, followed by the closure of 150 additional branches over 2022 and 2023.
In all, Commerzbank plans to cut some 10,000 full-time positions, a target that should be reduced to 7,500 net job losses, taking into account the 2,500 hirings planned by the group in more buoyant business lines, such as digital.
Copyright (c) 2021 CercleFinance.com. All rights reserved.