The bank said it would swiftly implement plans to cut 10,000 jobs and close hundreds of branches, and would strive for an operating profit in 2021. Commerzbank hopes the revamp will revive its fortunes, as it struggles to boost profits amid management reshuffles and strategy flip-flops. It has never fully recovered after a state bailout during the last financial crisis more than a decade ago.
The net loss of EUR 2.70 billion (USD 3.27 billion) in the quarter compares with a loss of EUR 97 million euros in 2019. The bank had already disclosed that it lost nearly EUR 2.9 billion euros for the full year. The results come shortly after Commerzbank finalised plans for a radical overhaul.
While the bank plans to cut one out of three jobs in Germany, it will add 2,500 jobs outside the country, primarily in eastern Europe, in an effort to cut costs for external service providers. It will also expand headcount at its Poland-based unit mBank. Commerzbank said that depending on the course of the pandemic, it expects provisions of between EUR 800 million and EUR 1.2 billion in 2021. That compares with EUR 1.75 billion in 2020.
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