The second biggest bank in Germany, Commerzbank, is cutting bonuses for last year as a result of "unsatisfactory net profit".

The bank says pay will be 17.2% lower than the previous year.

Martin Blessing, chief executive, is foregoing his bonus claims. The company's chairman said the move was "honourable".

The cuts follow a loss of €716m for the final three months of 2012, as well as an increase in the money set aside for bad loans.

Commerzbank received an €18 billion bailout during the financial crisis. The bank predicted Germany would return to strong growth in 2014.