Commerzbank Facing US
German-based Commerzbank AG reported in early November that their net profit exploded to triple during the third quarter of 2014 as the company prepares for large fines as a result of US investigations.
Profits soared to €225 million ($280.9 million) as the bank dropped their provisions for bad loans while revenue also increased.
“In the third quarter we have continued the good development seen in the first six months. The growth in the core bank shows our product and service range is popular with our customers,” said Chief Executive Martin Blessing.
Commerzbank is Germany’s largest lending institution. During the announcement of their profits they also announced that US regulators are investigating allegations that the bank breached anti-money-laundering laws as well as doing business with sanctioned countries such as Iran and Sudan.
It is expected that the fines they will be liable for are not insignificant, amounting to as much as $600 million for US settlements.
