Commerzbank 'takes higher-than-expected Greek write-down hit'

10 August 2011

Germany's second-biggest bank by assets has taken a higher-than-expected write-down hit on Greek bonds.

Commerzbank announced the level stood at €760 million ($1.1 billion) after its quarterly earnings were significantly hampered by its considerable exposure to debt in the eurozone.

The lender admitted the impact of the Greek situation had taken its toll before revealing operating profits of just €55 million in the three-month period leading to the end of June.

This sum was markedly lower than both the €1.1 billion recorded over the first quarter of the year and the €771 million reported in quarter two of 2010.

In its interim report, Commerzbank - which has more around 1,200 branches and over 60 sites in 50 countries - noted the continuing uncertainty in the eurozone could have further impacts on the lender, but observed: "We believe that we have ... made adequate provision for current discernible default risks associated with the European debt crisis."

By Gary Cooper

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