FRANKFURT, Nov 8 (Reuters) - Commerzbank's Chief Executive Martin Blessing on Thursday said he expected Germany's second-largest lender to make a coupon payment for this year on non-voting capital it received as part of a state bailout.
The hybrid financing instruments provided by the state allow Commerzbank to defer coupon payments on the bailout aid until it makes a full-year profit under German HGB accounting standards.
Commerzbank became a high-profile casualty of the financial crisis after a merger with Dresdner Bank in 2008 turned sour, forcing the German government to step in.
The German government took a 25 percent stake in the bank and injected 8.2 billion euros worth of non-voting capital in the form of a so-called "silent participation."
Separately, Commerzbank said the return on equity after taxes of the bank as a whole could be around 8 percent by 2016, with the return on equity of its core bank - comprising retail banking, investment banking, its Mittelstandsbank unit and the central and eastern Europe arm - expected to be 10 percent. (Reporting By Edward Taylor and Arno Schuetze)