Commerzbank has implicated writedowns in its new Asset Based
Lending (ABL) arm as one of the main factors behind its disastrous
third quarter results, which showed a net loss of €1.06 billion for
Germany’s second biggest bank.

The new ABL division, including property leasing subsidiary
Commerzreal, a shipping finance business and newly acquired public
finance lender Eurohypo, contributed heavily to the quarter’s
loan-loss provisions of €1.05 billion.   

Eric Strutz, chief financial officer of the Frankfurt-based
bank, said in a statement that Commerzbank’s asset finance
activities “will continue to face difficult conditions” in the
market.

The German government provided €18.2 billion to Commerzbank as a
response to the financial crisis, and took a 25
percent-plus-one-share stake in the group in return. The bank also
cut its total assets by 15% during the year’s third quarter.

“The second half of the year remains difficult, and Commerzbank
will close 2009 with a loss,” said chief executive officer Martin
Blessing.

Fred Crawley

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.