Commerzbank’s cost cull to continue after quarterly loss

FRANKFURT: Germany’s Commerzbank reported to a smaller-than-expected fourth-quarter loss on Thursday, adding that it was looking for further cost cuts as it restructures after a failed attempt to merge with Deutsche Bank.

Comm erz bank chief executive m art inzi elk es aid he was growing more optimistic about the bank’s prospects despite the 54 million euro ($59 million) quarterly loss, which it said was due to higher taxes and provisions for staff cuts.

The loss, which compared with a net profit of 113 million euros a year earlier, was not as bad as a consensus forecast of 99 million euros and Commerzbank shares were up 4.7 per cent at 0855 GMT.

Revenue for the quarter was also slightly ahead of analysts’ expectations. The bank said it would announce the further measures to trim expenses in the coming months.

“We have already made tangible progress with our strategy,” Zielke said of state-backed Commerzbank’s overhaul, which includes staff cuts, absorbing its Comdirect online brokerage and closing branches. Investors are also awaiting news on the sale of its Polish arm mbank, which Commerzbank confirmed had begun.

But some prospective bidders are shying away from bidding out of fear of Polish political interference, people close to the matter have told Reuters.

A scarcity of bids has raised questions about the price Commerzbank will be able to fetch.

Bettina Orlopp, Commerzbank’s new finance chief, told analysts that the bank was sticking to its plans to sell mbank but would only do so at the right price.