Commerzbank abandons full-year forecast after Wirecard hit
The cut to the outlook was driven by a single provision that cost the bank €175m last quarter linked to Wirecard
Frankfurt — Commerzbank abandoned its goal for a full-year profit after losses tied to the failure of Wirecard, underscoring the challenges for the German lender as it seeks a new CEO.
The unexpected hit blemished an otherwise solid quarter, with net income of €220m, 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 €1.5bn in 2020 for bad loans, more than it had previously predicted...