Commerzbank swings to loss amid coronavirus hit

Commerzbank AG said Wednesday that it swung to a net loss in the first quarter of 2020 as the coronavirus pandemic created a hit of 479 million euros ($518.9 million) on risk profit and in loan loss provisions.

The German bank reported a quarterly net loss of EUR295 million compared with a net profit of EUR122 million for the first quarter of 2019.

Analysts were expecting a net loss of EUR197 million, according to FactSet.

Net interest income–the difference between what lenders earn from loans and pay for deposits, and a key profit driver for retail banks–rose to EUR1.32 billion from EUR1.23 billion.

Commerzbank’s quarterly net commission income climbed to EUR877 million from EUR768 million.

Income before risk result, the bank’s metric for revenue, fell to EUR1.85 billion from EUR2.16 billion.

The bank said it is difficult to provide a reliable outlook amid uncertainty, but that it expects to keep 2020 revenue in its customer business largely stable without nonrecurring and valuation effects, based on the assumption that there won’t be a second lockdown and that the economy will gradually gain traction.

Mauro Orru

Source:marketwatch.com