Commerzbank hit by mortgage losses

Commerzbank has been hit by losses on commercial mortgages and the costs of integrating Dresdner Bank, it has reported.

Third-quarter net profit of €113m (£97.6m) was below a €164m analysts' estimate,.

However, it is a turnaround from a loss of more than a billion euros a year ago.

Commerzbank's eastern European business dropped to a loss in the third quarter from a small profit in the previous three months.

But the bank benefited from strong business at the Mittelstandsbank, which focuses on lending to medium-sized German companies, and provided an upbeat outlook for the full year in 2010 and 2011. s.

“We are sailing into the next year with a tailwind and assume that the operating profit for 2011 will be higher than that seen in 2010,” said chief financial officer Eric Strutz.