Commerzbank Beat Is Marred by Wirecard Hit in Dramatic Quarter
- Gives up full-year profit target as bad loan provisions rise
- Net income beats estimates as client trading rises in pandemic
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Commerzbank AG abandoned its goal for a full-year profit after losses tied to the failure of Wirecard AG, underscoring the challenges for the German lender as it seeks a new chief executive officer.
The unexpected hit blemished an otherwise solid quarter, with net income of 220 million euros ($261 million) well above analyst estimates. The bank’s online broker Comdirect posted record revenue from trading when volumes surged during the pandemic. Commerzbank said it may have to set aside as much as 1.5 billion euros this year for bad loans, more than it had previously predicted.