View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
  2. Company news
September 30, 2016updated 04 Apr 2017 1:22pm

Commerzbank to shed 9,600 jobs; suspend dividend

German lender Commerzbank has announced plans to axe 9,600 jobs, suspend dividend payments, and shrink securities trading in order to bolster profitability.

By Verdict Staff

German lender Commerzbank has announced plans to axe 9,600 jobs, suspend dividend payments, and shrink securities trading in order to bolster profitability.

As part of the Commerzbank 4.0 strategy, the bank will concentrate on its core businesses of ‘private and small business customers’ and ‘corporate clients’.

It will also digitalise 80% of relevant processes, merge Mittelstandsbank that deals with small and medium-sized firms with corporates & markets segments, as well as scale back trading operations.

“This will reduce earnings volatility and regulatory risk and will free up capital to be invested in core client businesses,” the bank said.

However, the bank said that it will also create nearly 2,300 new jobs in areas of business growth, which takes the net job cuts to about 7,300.

The restructuring are projected to trigger a writedown of about €700m in the third quarter of 2016, resulting in a net loss in the quarter, the bank said.

With the changes, the bank is targeting a net return on tangible equity of at least 6% by the end of 2020.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International