Are you sure?

Commerzbank taps bailout fund, posts Q3 loss

Commerzbank will take a €8.2 billion ($10.5 billion) capital injection from the German state and a further €15 billion in guaranteed funding to secure refinancing, the lender said.

Germany's second-biggest bank also said it swung to a net loss of €285 million in the third quarter after a profit of €339 million in the same period a year earlier.

The development comes as Commerzbank continues to grapple with the fallout from the global crisis that spurred the German government to launch an emergency fund that offers guarantees and capital to the country's banks.

“The bank struck an ... agreement with the Stabilisation Fund (SoFFin). The SoFFin will make available to Commerzbank a silent participation of €8.2 billion. It will be 100% eligible for Tier 1,” it said in a statement.

Commerzbank also said it raised its medium-term target range for its core capital ratio to 7%-9% from a previous range of 7%-8%.

Commerzbank shares looked set to open 4.4% lower, according to pre-market data from brokers, while the broader German market was indicated 1.6% higher. (Reuters)