Commerzbank mulls divesting Ukrainian subsidiary

Commerzbank might sell Forum Bank (FORM UK) as a part of its strategy to focus on its core markets, Commerzbank’s CFO said yesterday. Svetlana Rekrut:  Commerzbank acquired 60% in Forum Bank in 2008 for USD 600 mln, just before the outbreak of the financial crisis, and has since increased its stake to 96.1%. The deteriorating macroeconomic environment and weak management exposed the bank to significant credit and operational risks. The lender reported an accumulated loss of USD 606 mln as of end-2010 according to IFRS and remained loss-making through 9M11. Its C/I ratio remains well above 100% as its internal business restructuring program brought little material benefit thus far.  Since acquisition, Commerzbank has twice injected fresh capital into Forum to cover its losses: UAH 2.2 bln in 2009 and UAH 1.5 bln in 1H11.