Commerzbank AG Expects to Close 2020 in Red, Hurt by Wirecard Scandal
- The German lender has revised its forecast for 2020, now expects to report a net loss for the year.
Commerzbank AG is no longer anticipating that it will achieve a profit for 2020, the company stated today in its revised outlook for the full-year. According to media reports, this revision has been reduced due to losses tied to the Wirecard AG scandal.
Earlier today Commerzbank published its financial results for the second quarter of 2020, which included the revised outlook. According to an article from Bloomberg, the revision can be attributed to an impact of €175 million from a single case. This case, according to a person familiar with the matter, is Wirecard AG, which filed for bankruptcy.
As Finance Magnates reported, Wirecard AG, a leading Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term company in Germany, went into insolvency following a multi-year fraud. This resulted in a €1.9 billion hole in its balance sheet.
Because of this, the bank now forecasts a negative net result for the year, combined with the larger economic impacts from the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic. For the full year, Commerzbank said that the risk result is expected to be between €1.3 billion and €1.5 billion.
Commerzbank Revenues Increase by 9.5% YoY
Taking a look at the German lender’s financial results for the second quarter of 2020, underlying revenues increased to €2.3 billion. This is 9.5 per cent stronger than the €2.1 billion underlying revenues posted in the second quarter of 2019. Supposedly, the uptick in revenues was driven by significant growth in net commission income.
Across the second quarter of this year, Commerzbank noted operational profits of €205 million. This is a decrease on the €309 million operational profits recorded in Q2 of 2019, by 33.7 per cent. The net operating profit for the most recent quarter was €220 million, which is also a fall of 21.1 per cent.
Commenting on the results, Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank said in the statement: “In the second quarter, we achieved a positive result in spite of the coronavirus and we were able to support our customers in overcoming the consequences of the pandemic. That is the top priority in times like this. We have benefited from the fact that in recent years we have positioned the Bank to be much more robust and more digital.”
Commerzbank AG is no longer anticipating that it will achieve a profit for 2020, the company stated today in its revised outlook for the full-year. According to media reports, this revision has been reduced due to losses tied to the Wirecard AG scandal.
Earlier today Commerzbank published its financial results for the second quarter of 2020, which included the revised outlook. According to an article from Bloomberg, the revision can be attributed to an impact of €175 million from a single case. This case, according to a person familiar with the matter, is Wirecard AG, which filed for bankruptcy.
As Finance Magnates reported, Wirecard AG, a leading Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term company in Germany, went into insolvency following a multi-year fraud. This resulted in a €1.9 billion hole in its balance sheet.
Because of this, the bank now forecasts a negative net result for the year, combined with the larger economic impacts from the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic. For the full year, Commerzbank said that the risk result is expected to be between €1.3 billion and €1.5 billion.
Commerzbank Revenues Increase by 9.5% YoY
Taking a look at the German lender’s financial results for the second quarter of 2020, underlying revenues increased to €2.3 billion. This is 9.5 per cent stronger than the €2.1 billion underlying revenues posted in the second quarter of 2019. Supposedly, the uptick in revenues was driven by significant growth in net commission income.
Across the second quarter of this year, Commerzbank noted operational profits of €205 million. This is a decrease on the €309 million operational profits recorded in Q2 of 2019, by 33.7 per cent. The net operating profit for the most recent quarter was €220 million, which is also a fall of 21.1 per cent.
Commenting on the results, Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank said in the statement: “In the second quarter, we achieved a positive result in spite of the coronavirus and we were able to support our customers in overcoming the consequences of the pandemic. That is the top priority in times like this. We have benefited from the fact that in recent years we have positioned the Bank to be much more robust and more digital.”