German Commerzbank reported a net loss of 2.70 billion euros or $3.27 billion in Q4, up from a loss of 97 million euros a year earlier, according to the company’s press release. The net loss was caused by a major restructuring and fallout of the COVID-19 pandemic.
- Commerzbank is planning to cut 10,000 jobs and close hundreds of branches to strive for an operating profit in 2021.
- For the full year, Commerzbank lost almost 2.9 billion euros.
- The bank expects more than 80% of headcount reduction by year-end 2023.
- Commerzbank plans to cut one out of three jobs in Germany but will add 2,500 jobs outside the country, primarily in Eastern Europe.
- The bank expects a resumption of dividend payments during the financial year 2023.
- Commerzbank projects provisions of between 800 million euros and 1.2 billion euros in 2021, down from 1.75 billion euros in 2020.
- Commerzbank results come a week after CEO Manfred Knof finalized plans for a radical overhaul, a month after he took the reins at the bank.
Commerzbank stock is currently declining. CBK is down 5.65%
