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New loss for Commerzbank

GERMANY&rsquo;S Commerzbank has suffered a net loss of &euro;746m (&pound;636m) in the second quarter of the year as it battles through the financial crisis.<br /><br />The bank narrowed its first quarter loss of &euro;861m, as revenues rose by 31 per cent to &euro;3.1bn, compared to &euro;2.3bn in the first quarter.<br /><br />Provisions against risky loans were up from &euro;414m in the first quarter of last year to &euro;993m, but still came in below an analysts&rsquo; forecast of &euro;960m.<br /><br />The results were dented by a charge of &euro;216m on the integration of Dresdner Bank, which Commerzbank purchased in January, while Dresdner&rsquo;s toxic assets were also largely responsible for the increase in provisions.<br /><br />Chairman Martin Blessing said the bank was facing a &ldquo;challenging year&rdquo; but added that it was fulfilling its obligation to the German state by lending &euro;134bn to businesses in Europe&rsquo;s largest economy.<br /><br />Commerzbank has taken around &euro;20bn in state aid since the start of the crisis, handing a 25 per cent stake to the government in return.<br /><br />But the lender said that it was on course to repay &euro;5bn in debt guarantees to the German financial markets stability fund SoFFin, part of a total of &euro;15bn in guarantees offered to the bank.