Commerzbank reviews strategy in face of potential euro collapse

 
City A.M. Reporter
GERMANY’S second-largest bank Commerzbank yesterday said it was preparing for the Eurozone crisis to worsen, warning it may not pay a dividend in 2013.

The bank, which is 25 per cent owned by the German state, said it would restructure its retail business and continue to clear out toxic assets in response to sliding profits.

Second-quarter net profits dropped to €275m (£216m), below expectations. The bank warned that profits would be even lower in the second half of 2012.

“The greatest downside risk remains an uncertainty shock from an escalation of the sovereign debt crisis – i.e. the collapse of the monetary union,” Commerzbank said in its quarterly report, adding that the risk of this occurring had increased.

The firm said it would present a new strategy on 8 November.