Commerzbank profit slumps 21% as loan loss provisions spike, but beats expectations

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Commerzbank profit slumps 21% as loan loss provisions spike, but beats expectations
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Commerzbank on Wednesday reported a 21% fall in second-quarter net profit to 220 million euros ($259.7 million) on the back of a sharp increase in loan loss provisions.

The German lender expects a net loss for the full year as it sets aside 469 million euros for bad loans due to both the coronavirus pandemic and the insolvency of payments giant Wirecard.

Commerzbank shares advanced on Wednesday as the fall in profit was not as drastic as the market had expected. The German lender expects a net loss for the full year as it sets aside 469 million euros for bad loans due to both the coronavirus pandemic and the. However, shares advanced on Wednesday as the fall in profit was not as drastic as the market had expected.

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