The president of among Germany’s most significant banks, Commerzbank, looked for to assure financiers Thursday about the possibility of non-performing loans this winter season, stating banks are far much better positioned to cope compared to previous crises.
“The German economy is facing a difficult time ahead of us due to the Ukraine conflict, China, supply chain problems and the energy crisis,” Commerzbank CEO Manfred Knof informed CNBC’s Annette Weisbach at a Handelsblatt conference in Frankfurt, Germany.
“Probably the German economy is entering into a down [trajectory] and perhaps into an economic downturn however the bright side exists no factor to panic.”
Asked whether he anticipated non-performing loans to increase considerably throughout the winter season, Knof responded: “If a recession will be there then it is likely we will see something, but the situation is significantly better than in the past.”
Commerzbank reported a net second-quarter loss due to restructing expenses and a remarkable write-off to an outsourcing task.
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“Banks have done their homework, we are all capable, we have enough buffer to help our customers during this crisis and this is really what counts,” Knof stated. “Therefore, we are concerned but we are not worried and there is no reason to panic.”
Fears of an economic downturn have actually been exacerbated amidst the possibility of a winter season gas lack inEurope Lawmakers throughout the area are rushing to fill underground storage centers with gas products in order to have adequate fuel to keep houses warm throughout the chillier months.
Russia– typically Europe’s biggest energy provider– entirely stopped gas streams by means of the Nord Stream 1 pipeline previously this month. The pipeline is Europe’s significant supply path and links Russia to Germany by means of the BalticSea State- owned energy giant Gazprom mentioned technical problems for the stop to products, while the Kremlin has because stated it will not turn the taps back on up until punitive sanctions are raised.
Germany ‘pleased’ with Commerzbank advancement
Earlier on Thursday, German Finance Minister Christian Lindner looked for to minimize speculation about the federal government’s more-than-15% stake in Commerzbank.
Speaking at the Handelsblatt conference, Linder stated Olaf Scholz’s administration was “very satisfied with the development of Commerzbank,” Reuters reported.
Last month, Germany’s second-largest lending institution reported a net second-quarter loss due to limiting expenses and a remarkable write-off to an outsourcing task.
Shares of Commerzbank increased 1.7% on Thursday early morning. The Frankfurt- noted stock rate is up around 4% year-to-date.
— CNBC’s Silvia Amaro added to this report.
