Commerzbank shares fall as risk provisions spook investors

Shares of Germany’s Commerzbank (CBKG.DE), opens new tab fell as much as 6% on Wednesday after it reported larger than expected loan loss provisions in the second quarter.

The stock price drop came despite the bank announcing plans for a 600 million euro ($654.48 million) share buyback as it met net profit expectations. S&P also upgraded the lender’s credit rating.

Commerzbank, one of Germany’s best-known banks, is partially held by the government after a bailout more than a decade ago, since when it has spent much of the time undergoing a major overhaul, slashing its workforce and branch network to restore profit.