Commerz CEO says finances require no aid
COMMERZBANK has suffered setbacks in its operating business in June but the bank’s finances are solid enough to do without further state aid, according to the bank’s chief executive Martin Blessing.
This month’s slippage had been preceded by a calmer May, Blessing is quoted as saying in an interview with Handelsblatt due for publication this morning.
The development at Commerzbank’s business units over the second quarter had been “very diverse,” he added. Asked about speculation the bank may need further government support, Blessing said: “No, I don’t see that. We have a comfortable capital base.”
“I will deal with it should it become relevant,” he was also quoted as saying.
The German government has to date given Commerzbank €8.2bn (£6.98bn) in fresh capital, with a pledge for an additional €10bn. It has also granted €15bn in guarantees for bonds.
Commerzbank’s commercial mortgage unit Eurohypo could return to profit this year because the value of parts of Eurohypo’s portfolio, such as government bonds, had recovered, Blessing said.
The chief executive added in the interview that even though the number of non-performing loans to businesses was on the rise there was currently no wave of insolvencies among Germany’s so-called “Mittelstand”, medium-sized owner-led companies that are seen as the backbone of the nation’s economy.
Earlier this month Blessing told investors Commerzbank was aiming to achieve sustainable operating profit of at least €4bn in 2012. He also said there had been an easing of concerns involving the risky assets the bank obtained through its acquisition of Dresdner Bank from insurer Allianz.