Commerzbank Is Not Having A Great Day

Actually, Commerzbank is having a bad few months. It turns out that a whole mess of deferred tax-accruals and the hangover from having gone into business in the Ukraine add up to a roughly $1 billion loss for the fourth quarter.

In an unscheduled release of preliminary fourth-quarter figures, the German lender cited charges of at least €745 million related to an asset sale last year and lower-than-expected tax relief for the fourth quarter loss….

In the fourth quarter, Commerzbank said it took a €185 million charge for selling its Ukrainian unit Bank Forum to Ukraine’s Smart Group. Commerzbank also reduced profit expectations for various businesses, resulting in €560 million less than it expected in tax relief from offsetting previous losses against current and future profits.

Oh yea, and Das Erste Quartal is likely nicht sehr gut, also.

The bank further said it expects restructuring charges of approximately 500 million euros in the first quarter of 2013 in connection with the reduction of 4,000 to 6,000 jobs until 2016.

Commerzbank to Report Loss [WSJ]
Commerzbank posts Q4 surprise net loss of 720 million [Reuters]