Commerzbank, Germany’s second-biggest lender, predicted a difficult fourth quarter as the bank expects it will need to set aside more money for bad loans.

Commerzbank reported a third-quarter net loss of € 1.05 billion this week on costs tied to the integration of Dresdner Bank and writedowns stemming from its Eurohypo unit.

“We expect risk provisions to rise again in the fourth quarter,” its website said yesterday. –(Bloomberg)