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Shares in German banking giant Commerzbank are trading 4.5% higher pre-market on Thursday. This comes following a better than expected Q2 earnings report yesterday. Commerzbank reported Q2 earnings per share of $0.18. This was versus expectations of a $0.07 result.
Revenues Down 21%
Despite the earnings beat in Q2, the report was a mixed bag. Overall revenues declined 21% year on year to $259.7 million as a result of a significant increase in loan loss provisions.
Looking ahead, the bank forecasts net losses in 2020 as a result of the 469 million EUR it has ringfenced for bad loans. While some of this is understandably due to the disruption caused by the COVID-19 pandemic, a greater portion is attributed to the insolvency payments of Wirecard. Wirecard was not specifically named in the earnings report but Commerzbank did note that a “single case” was responsible for an additional 175 million EUR in loan loss provisions.
The Wirecard scandal has been a major focus point...
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