Commerzbank: stock drops on new hefty provisions
(CercleFinance.com) - Commerzbank announced on Tuesday evening that it is going to book a new provision of 490 million euros in its accounts to cover the currency losses recorded by its Polish subsidiary mBank.
These new charges, which this time relate to the exposure to the Swiss franc, bring to some 1.4 billion euros the losses suffered by mBank on the FX market.
Despite these provisions, which will be posted in Q3 accounts, the German banking group says that it plans to generate a positive operating result for the current quarter, provided that the evolution of the energy crisis and the economic situation does not require new charges.
For the FY 2022, Commerzbank still expects to post net profit of more than one billion euros.
Commerzbank shares, which have risen by over 7% this year, lost nearly 6% in morning trading.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
These new charges, which this time relate to the exposure to the Swiss franc, bring to some 1.4 billion euros the losses suffered by mBank on the FX market.
Despite these provisions, which will be posted in Q3 accounts, the German banking group says that it plans to generate a positive operating result for the current quarter, provided that the evolution of the energy crisis and the economic situation does not require new charges.
For the FY 2022, Commerzbank still expects to post net profit of more than one billion euros.
Commerzbank shares, which have risen by over 7% this year, lost nearly 6% in morning trading.
Copyright (c) 2022 CercleFinance.com. All rights reserved.