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December 3, 2009updated 12 Apr 2017 4:29pm

Commerzbank acquisitions add up to ?1.05bn loss in Q3

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 Germanys second biggest bank.

By Fred Crawley

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

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