BUSINESS INFORMATION - Commerzbank of Germany Natural Big Losses

BUSINESS INFORMATION - Commerzbank of Germany Natural Big Losses
The second largest German bank, Commerzbank, said Monday recorded a net loss of 1.05 billion euros (1.56 billion U.S. dollars) in the third quarter, worse than expected due to restructuring costs and a decrease in the value of group assets.

Bank, which is part nationalized since the global financial crisis with the German state taking 25 percent stake plus one share, said the estimates show a net loss for the full year.

It is said that the decline in asset values (writedowns) 650 million euros related to the Eurohypo unit and 900 million euros in restructuring costs Dresdner Bank, which Allianz bought from insurance to 4.7 billion euros.

The result was worse than expected, with analysts projecting an average of 782 million euro loss.

However, at the level of operations, said the bank recorded a profit 120 million euros, up from an operating loss of 201 million euros in the second quarter.

Overall results will be released on next Thursday.

After the financial crisis sent the global banking system close to collapse last year, the German government support based Commerzbank in Frankfurt, with 18 billion euros in fresh capital.

In 2008, Commerzbank recorded a loss of 6.6 billion euros.