Commerzbank AG is no longer anticipating that it will achieve a profit for 2020, the company said in its revised outlook for the full-year this Wednesday. According to media reports, this revision has been reduced due to losses tied to the Wirecard AG scandal.
Earlier today Commerzbank published its financial results for the second quarter of 2020, which included the revised outlook. According to a report from Bloomberg, the revision can be attributed to an impact of €175 million from a single case. This case, according to a person familiar with the matter, is Wirecard AG, which filed for bankruptcy.
As , Wirecard AG, a leading fintech company in Germany, following a multi-year fraud that resulted in a .
Because of this, the bank now forecasts a negative net result for the year, combined with the larger economic impacts of the coronavirus pandemic. For the full year, Commerzbank said that the risk result is expected between €1.3 billion and €1.5 billion.
Commerzbank revenues increase by 9.5% YoY
Taking a look at the financial results for the second quarter of 2020, underlying revenues increased to €2.3 billion. This is 9.5 per cent stronger than the €2.1 billion underlying revenues posted in the second quarter of 2019. The uptick in revenues was driven by significant growth in net commission income.
Across the second quarter of this year, Commerzbank noted operating profit of €205 million. This is lower than the €309 million operating profit recorded in Q2 of 2019 by 33.7 per cent. Net operating profit for the most recent quarter was €220 million, which is also lower by 21.1 per cent.
Commenting on the results, Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank said in the statement: “In the second quarter, we achieved a positive result in spite of the coronavirus and we were able support our customers in overcoming the consequences of the pandemic. That is the top priority in times like this. We have benefited from the fact that in recent years we have positioned the Bank to be much more robust and more digital.”
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