Commerzbank sees 2020 loss from Wirecard, virus

Commerzbank said Wednesday (August 5) it expects a loss for the year.

The German bank blamed a writedown on loans to the scandal-hit Wirecard and fallout from the global health crisis.

The bank's outlook comes as net profit fell by just over a fifth in the second quarter - at $260 million.

Commerzbank said provisions for credit losses had risen to around $557 million.

About $207 million of that is related to Wirecard.

The German payments firm collapsed last month after an accounting scandal.

Despite that, shares rose by 4% in early trade as profits were above the consensus forecast.

Commerzbank is trying to strengthen its position after its CEO Martin Zielke quit last month.

The search is still underway for a new boss.

Staff cuts, branch closures and the streamlining of international operations are also under discussion.

German insurer Allianz also posted its second quarter struggles on Wednesday.

Profit fell 29% in Q2 from a year earlier.

Allianz also did not update its full-year guidance.