The not-so-frequent move involves two members of the Supervisory Board whose term of office would have expired in 2023. The news, first read in the German Manager Magazine, was also confirmed by the Ministry of Finance, but Commerzbank did not want to comment – writes FT.
The second largest German bank was rescued by the German government more than a decade ago and has lost more than 55% of its value since the start of the coronavirus epidemic, with its share price falling to an all-time low of € 3.
For the German chin, which has a stake of more than 15%, this means that it is making significant losses, as it bought its shares for 26 euros at the time. Commerzbank now has a market capitalization of less than € 4 billion.
The bank is undergoing a restructuring process, similar to its biggest domestic competitor, Deutsche Bank, whose plans have now also been crossed by the coronavirus epidemic. Commerzbank has set a target return on equity (ROE) of just 4% by 2023, plans to lay off 2,300 people and close nearly 20% of its branches.
Recently, Fitch downgraded the bank due to its weak financial position, and the European Central Bank, acting as supervisor, and Boston Consulting Group, commissioned by the German state owner, also proposed to spur the restructuring process at the bank.
Bettina Orlopp, Commerzbank’s new CFO, has promised to “look apart everywhere” where new cost-cutting opportunities can be found.
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