Arab Today, arab today commerzbank ditches 2012 profit target after greek losses
Last Updated : GMT 21:14:26
Arab Today, arab today
Arab Today, arab today

Commerzbank ditches 2012 profit target after Greek losses

Arab Today, arab today

Arab Today, arab today Commerzbank ditches 2012 profit target after Greek losses

Frankfurt - AFP

Germany\'s second-biggest bank Commerzbank abandoned on Friday its profit target for next year after writedowns on its Greek bond holdings pushed it deeply into the red in the third quarter. \"We continue to be committed to our original operating profit target of 4.0 billion euros ($5.5 billion) for the group, but on account of the market environment we will be unable to reach this target next year,\" said chief executive Martin Blessing in a statement. Commerzbank had already warned back in August that its 2012 profit targets were \"conditional upon stable markets,\" Blessing noted, saying the group was now simply projecting a \"good operating result\" for its core banking activities next year. \"In the non-core areas the result for 2012 will be dependent to a great degree on how the European sovereign debt crisis continues to develop,\" he added. Turning to its third-quarter results, Commerzbank said additional writedowns on its holdings of Greek sovereign bonds had pushed it to a net loss of 687 million euros in the period from July to September. That was much deeper than expected: analysts polled by Dow Jones Newswires had been pencilling in a net loss of 585 million euros. Commerzbank booked bottom-line profit of 24 million euros in the preceding quarter and net profit of 113 million euros in the third quarter of 2010. The group attributed the bigger-than-expected loss in the third quarter of the current year to an additional writedown of 798 million euros on its Greek bond holdings. Commerzbank is one of the German banks most heavily exposed to Greek debt. \"With a view to the ongoing uncertainty regarding Greece\'s financial solvency and with regard to the EU summit on October 26, the positions held by the bank were depreciated by 52 percent of their nominal value,\" it explained. At a crunch summit last month, EU leaders agreed that banks and private investors take a 50 percent loss or \"haircut\", slicing 100 billion euros off the 350-billion-euro debt mountain around Greece\'s neck. Commerzbank also said it was examining all options so as to meet the additional capital requirements of the European Banking Authority (EBA). In an immediate move to accelerate the reduction of risk-weighted assets, the group would temporarily suspend all new business at its troubled mortgage lender, Eurohypo; temporarily suspend all new loan business outside its core regions of Germany and Poland; speed up the sale of non-strategic assets; and examine the possibility of selling financial investments. But those would not include its online unit, comdirect, or its Polish subsidiary BRE Bank, \"which are part of the core business,\" Commerzbank insisted. Commerzbank was biggest loser on the Frankfurt stock exchange on Friday, with its shares shedding 4.6 percent to 1.67 euros.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today commerzbank ditches 2012 profit target after greek losses Arab Today, arab today commerzbank ditches 2012 profit target after greek losses

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today commerzbank ditches 2012 profit target after greek losses Arab Today, arab today commerzbank ditches 2012 profit target after greek losses

 



Arab Today, arab today Designer prepared new set of ornaments

GMT 02:45 2017 Wednesday ,28 June

Designer prepared new set of ornaments
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
Arab Today, arab today
Arab Today, arab today

GMT 08:23 2017 Saturday ,24 June

Actress Feryal Yussef received new drama offers

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday