European banks plunge into red amid lockdowns
Commerzbank's tough year took another rocky turn on Wednesday (May 13).
Germany's second largest lender announced a net loss of 295 million euros - or about $320 million - in the first quarter...
Way down on its net profit of 122 million euros last year.
Commerzbank said measures put in place to control the new disease knocked almost half a billion euros off earnings in the quarter.
The bank also expects credit losses of between 1 billion and 1.4 billion euros this year, and warned loan loss provisions risked ruining its recovery.
2020 has been a difficult year for Commerzbank.
So far it has stopped its 2019 dividend plans, back-tracked on selling its Polish lender mBank, and faced credit rating downgrades.
Dutch lender ABN Amro also announced first-quarter woes on Wednesday.
It blamed the virus crisis and crashing oil prices for a worse-than-expected downturn.
ABN reported a first-quarter loss of 395 million euros compared with a net profit of 478 million euros a year before.
The bank also warned provisions for souring loans could rise to 2.5 billion euros this year.
By lunchtime Wednesday, Commerzbank shares were down over 4%, while ABN Amro stock had plunged over 7%.
