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By Joshua Kirby
Commerzbank AG said on Tuesday that it would post a third-quarter operating profit from another takeover of its Polish subsidiary Mbank SA, but would still see a net profit of more than 1 billion euros ($960.9 million) for the full year. As long as the geopolitical and energy situation is not much worse.
MBank maintains an additional provision equal to 490 million euros on its Swiss-franc portfolio regarding foreign currency loan agreements. Commerzbank said the new provisions would take a total of around 1.43 billion euros, with a correspondingly negative impact on third-quarter operating income.
However, the German lender said it maintains its outlook for 2022 net profit above 1 billion euros and positive earnings for the third quarter.
“Despite the new burden in Poland, we are maintaining our revenue target throughout 2022 in light of strong overall revenue development,” said Commerzbank Chief Financial Officer Bettina Orlop.
The outlook is based on no significant deterioration in geopolitical developments, and the uncertainty in energy supply will not lead to additional major supplies, the bank said.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
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