Commerzbank warns of global economic risks to profit forecast

Bloomberg

Commerzbank AG warned that risks to its outlook have increased following Russia’s invasion of Ukraine and the sanctions imposed on Moscow.
Geopolitical risks could impact economic growth through higher prices for raw materials and sanctions, while Russian “countersanctions” might affect Commerzbank’s portfolios, Germany’s second-biggest listed lender said in its annual report.
“There are numerous risk factors that could affect the 2022 profit forecast to a considerable, though not reliably quantifiable extent, should events take an unfavorable turn,” Commerzbank wrote. “These include, first and foremost, exceptionally high global economic risks.”
Under Chief Executive Officer Manfred Knof, the lender has embarked on an ambitious plan to cut costs and boost profitability. After initially getting a boost from a trading boom and expectations for higher interest rates, the war in Ukraine has cast a shadow over the bouyant mood for the industry.
Like many other banks, Commerzbank has stopped new business in Russia and is running down existing transactions. It has not yet said if it plans to shut down its Russian operations completely.