Germany’s second-biggest bank mired in restructuring costs

Commerzbank will axe 4000-6000 jobs over the next 3 years Frankfurt – Arabstoday Germany's second-biggest bank Commerzbank said Friday that restructuring costs likely pushed it into the red in the first three months of this year. "Commerzbank started solidly in the first three months of 2013 in operational terms," the group said in a statement released at its annual shareholders meeting.
"The first quarter of 2013 will -- as already announced -- be affected by one-off effects due to the planned job cuts. Restructuring expenses of almost €500m ($653m) were booked, accordingly. From today's perspective, the bank therefore expects a net loss for the first quarter of 2013."
Commerzbank has said it will axe 4,000-6,000 jobs -- or more than one in 10 of its workforce -- over the next three years as it tots up the toll from the financial and sovereign debt crisis.
Up to 3,400 jobs could go in Commerzbank's retail or high-street banking division, which is suffering from low profitability.
Commerzbank's 2012 results were disappointing, with net profit coming out at only €6.0m for the whole year compared with €638m a year earlier, after heavy writedowns pushed it into the red in the fourth quarter.
However, underlying earnings, as measured by operating profit, increased to €1.2bn in 2012 from €507m.