Plus   Neg

Commerzbank Plans To Cut 4,300 Jobs, Sell Majority Stake In Mbank

commerzbank 092019 lt

Commerzbank AG (CRZBY.PK) said Friday that it plans to cut 4,300 jobs, as part of its strategy. It also plans to sell its majority stake in mbank S.A.

The bank, which had failed to reach an agreement with Deutsche Bank on a merger earlier this year, said a further group-wide headcount reduction is "regrettable but inevitable."

The German lender said it will add 2,000 full-time jobs in strategic areas, making for a groupwide headcount reduction of around 2,300 full-time positions.

It plans to sell its majority stake in mbank S.A. The sale would result in a marked reduction in risk-weighted assets by around 17 billion euros and a release of equity capital at the company, Commerzbank said in a statement.

Commerzbank said it is considering making a purchase offer to Comdirect's outstanding shareholders. It would offer a premium of 25 percent on the unaffected Comdirect share price. The Bank currently already holds an 82 percent stake in Comdirect.

"The further development of the strategy is intended to help the Bank achieve additional growth in customers and assets, and higher revenues by 2023, even if the market environment continues to deteriorate," Commerzbank said.

Commerzbank noted that it would aim for a cost level in 2023 of around 600 million euros lower than in the current year. This would result in a cost base of no more than 5.5 billion euros in 2023 following the sale of mBank.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT