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Commerzbank Profit Drops on More Writedowns

Commerzbank wrote down another 248 million euros ($361.2 million) on subprime-linked investments in the final quarter of 2007, it said on Thursday.

Germany's second biggest listed bank also unveiled an almost 45 percent dip in consolidated surplus in the fourth quarter of the year to 201 million euros, as its earnings from trading tumbled. This number had been forecast at 207 million euros in a Reuters poll of analysts.

Trading profit was 73 million euros in the fourth quarter compared to 286 million euros, the bank said.

"We kept our word and met or exceeded our targets, despite the enormous challenges," chief executive Klaus-Peter Mueller said in a statement, adding that the bank intended to up its dividend by a third to 1 euro per share.

However, the group's problems with its 1.2 billion euro portfolio of subprime-linked investments cast a shadow over the results and Mueller's last year with the bank before he moves into the role of non-executive chairman.