Commerzbank posts 2.9b euro loss on virus, restructuring woes

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Frankfurt am Main

Germany’s second-largest lender Commerzbank on Wednesday announced a net loss of “almost 2.9 billion euros” ($3.5 billion) for 2020, its first full-year loss since the 2009 financial crisis. In an ad hoc statement releasing preliminary results, Commerzbank blamed the hit on “the burdens of the coronavirus pandemic” and restructuring charges linked to job cuts and branch closures.

The Frankfurt-based bank also said it had reached an agreement with labor representatives on plans to slash 10,000 jobs and close hundreds of branches by 2024 as the lender pivots to online banking and cashless payment options.

“The planned reductions are certainly very painful,” said CEO Manfred Knopf, a former Deutsche Bank executive who took the helm at Commerzbank last month.—AFP