Commerzbank to cut jobs, branches after Deutsche merger fails


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Commerzbank to cut jobs, branches after Deutsche merger fails

On Friday, the 20th of September 2019, Commerzbank AG, the Frankfurt-based lender had issued a statement saying that the second-largest German lender by balance sheet had been planning to slough off thousands of jobs alongside one-fifth of its branches at a strategic reform, as the German lender’s failed merger attempt with Deutsche Bank had been weighing on to its balance sheet.

Aside from that, at its Friday’s (September 20th) statement, the No. 2 German lender behind Deutsche Bank, partly owned by German Government, had also added that it was scuffling to instrument profits following a bailout, which in effect prodded it to sell some of its stakes of Polish Subsidiary, mBank alongside Comdirect online brokerage unit.

On top of that, top officials of Frankfurt-based Commerzbank had also been quoted saying following Friday’s (September 20th) statement that its entire strategy would include a hefty sum of €1.6 billion, while the German multinational lender had been planning to invest €750 million into new technology and another $1 billon in a sweeping overhaul.

Nonetheless, the bank had also said that no concrete decision had not yet been finalized and the draft measures unveiled on Friday (September 20th) would be discussed at a two-day-meet of its supervisory board on Sept. 25th and Sept.

26th. Besides, share prices of Commerzbank AG wrapped up the day 0.8 per cent up followed by the reveal of the news, while expressing steep concerns over the bank’s pathway to profitability, a vice president of shareholder lobby group DSW, Klaus Nieding said on Friday’s (September 20th) market closure, “The big question remains how the bank wants to make money in the future,” adding that the bank needed more austerity measures than slashing expenses.