German bank Commerzbank saw its second-quarter profit slide as it continued to take losses on bad property and shipping loans.
It said today that it made a net profit of €43m during the quarter, down 84% on the €270m it made the same time a year earlier.
The quarterly profit performance also fell short of the consensus of analysts' expectations of €48m.
The bank, Germany's second biggest lender after Deutsche Bank, took losses of €537m for loans that will not be fully repaid in the second quarter, up from €404m last year.
Earnings were also squeezed by extremely low current interest rates. Net interest income fell to €1.63 billion from €1.78 billion a year ago.
The company said the figures included losses on its commercial property loan portfolio in Britain and bad loans to build ships. The bank is exiting its commercial property and ship businesses and is winding them down in a non-core asset division.
It also cited "single cases" of bad loans from its bank serving small and medium sized businesses in Germany. It reached an agreement in July to sell the €5 billion commercial property loans in Britain to a consortium comprising US bank Wells Fargo and private equity investor Lone Star Funds.
The company said the transaction would result in deductions to earnings of €134m in the second quarter and €45m in the third.
Commerzbank is still working through the difficulties that led to it being bailed out by the German government in 2009. It is 17% owned by the German government, down from 25% after the bank carried out a capital increase in May.