Commerzbank, the German bank that received €18.2 billion in state aid, reported a loss for the second consecutive quarter after booking costs associated with firing staff.

The net loss of €94 million in the first three months of the year compared with a profit of €355 million a year earlier, the Frankfurt-based bank said in a statement today. That beat the average estimate for a €153.7 million loss of seven analysts surveyed by Bloomberg as the lender’s corporates and markets unit boosted earnings.

Chief executive officer Martin Blessing is reducing employees across the firm and asking shareholders to contribute to a €2.5 billion capital increase to repay the German government and insurer Allianz.

Blessing said today that the reorganization will start bearing fruit in 2014 as the bank sees revenue pressure, higher provisions and costs this year. The bank hasn’t paid a dividend since the financial crisis.

Commerzbank rose 1 per cent to €10.92 in the morning in Frankfurt trading, valuing the company at €6.4 billion. The stock has slumped 24 per cent this year compared with an 8.4 per cent gain in the 40-member Bloomberg Europe Banks and Financial Services Index.

Five capital increases since 2008 have erased more than 93 per cent of the bank’s share price, making it the worst performing financial company in Europe outside of Ireland and Greece.

In addition to cutting as many as 6,000 jobs by 2016, Blessing, appointed five years ago, is shutting unprofitable shipping and real estate units to help reverse the company’s fortunes.

Commerzbank said it booked a €493 million charge in the first quarter for restructuring such as cutting staff.

Operating profit at the corporate clients unit, known as the Mittelstandsbank, fell 33 per cent to €325 million on lower revenue and higher loan-loss provisions.

The private customers unit saw earnings slump 49 per cent to €70 million as revenue fell and provisions.