Commerzbank expects net profit shrink in 2H

Commerzbank, Germany's second-biggest bank, said it expected net profit in the second half of the year to be lower than in the first half with no end to the eurozone debt crisis in sight. "We still do not expect the macro-economic and market environment to stabilise in the second half of 2012. Against this background, we expect net profit in the second half of the year to be below the net profit of the first six months," Commerzbank said in a statement. Commerzbank said its bottom-line after-tax profit amounted to 644 million euros ($797 million) in the period from January to June, a drop of 36 percent from a year earlier. And in the second quarter alone, net profit was down by 25 percent from the preceding three months at 275 million euros. "This was due in particular to the further decreased market interest rate level and the declining customer activity," Commerzbank said. Chief executive Martin Blessing said that in the current environment the bank's priority was to reduce risks and strengthen its capital base. "In the past six months... we have succeeded in doing this," he said. As of June 30, Commerzbank had 2.8 billion euros more core capital than it had been ordered to have by the European Banking Authority. "As a results we are well prepared for the difficult market conditions," Blessing said.