Commerzbank, the second-biggest German bank, said today that it would benefit from a state capital infusion of €8.2 billion and €15 billion more in debt guarantees.
Commerzbank, the first major private German bank to apply for state aid, also posted a third-quarter net loss of €285m and an operating loss of €475m.
'In truth, we have not covered ourselves in glory here. In future, we will have to improve,' chairman Martin Blessing said. The international financial crisis had cost the bank €1.1 billion in losses from market operations, he added.
Commerzbank responded to pressure from German authorities for banks to apply for aid under a rescue package that includes up to €80 billion in capital injections and €400 billion in loan guarantees.
The bank, which is acquiring Dresdner Bank from the insurance giant Allianz, will use both parts of the package.
In accepting state aid, Commerzbank will agree to forego paying a dividend in 2009 and 2010 and its directors will see their salaries capped at €500,000 a year.
