Germany's second largest bank, Commerzbank, today reported sharp losses for the fourth quarter and all of 2009, while voicing cautious optimism for this year.
Partially state-owned Commerzbank posted a quarterly net loss of €1.86 billion and an annual loss of €4.54 billion. The quarterly loss, which the bank said was the result of its devaluation of risky assets, was much larger than an average analyst forecast loss of €1.17 billion.
'This is not satisfying, but is attributable to two key factors,' bank chairman Martin Blessing said.
'The result reflects the effects of the ongoing economic and financial market crisis - and the crisis is not yet over, although the start of 2010 has been promising with respect to our operating performance,' he added.
The full-year result included the nearly-completed financial integration of Dresdner Bank, which forced Commerzbank to book €1.9 billion in costs.
The bank said it expected to post an operating profit this year but warned that on the net level, the bank 'will only be in the black if the development of the economy and the financial markets will be very positive'.
Commerzbank carried out a recapitalisation last year with German government aid in the amount of €18.2 billion that left the state with a stake of 25% in the bank.
