The second largest bank in Germany, Commerzbank, plans to cut 9,600 jobs over the next four years, and put an end dividend for the first time.
In a statement, the bank said at the end of 2020 will have “increased profitability in a sustainable manner.”
However, the bank also said it aims to create 2300 new jobs in the areas where its business is growing.
And it will discuss the commercial bank’s strategy to achieve this by the Board of Directors of the Bank on Friday.
Last year, about 51,300 employees.
The announcement comes amid denials that the German government is working on a rescue plan for the Deutsche Bank.
Facing Deutsche Bank, the biggest bank in Germany, and $ 14bn,
fine (£ 10.8bn € 12.5bn) in the United States ill-sale mortgage-backed securities before the financial crisis in 2008.
The strategy Commercial Bank to see her focus on companies “core” of the “clients in the private and small business” and “corporate clients” and the digitization of some operations.
As part of the restructuring of € 1.1bn (£ 948m), he plans to integrate its “Mittelstandsbank”,
which deals with the German medium-sized companies,
with companies and markets division. Commerzbank and thus may be a bank to write off approximately 700M € in the third quarter of this year.
Also it plans to “reduce” investment banking activities, which can be
Bank, which would said that “reduce the volatility of earnings and regulatory risk and free up capital to be investing in the business core customer.”
Analysis: Jonta Bloom, Business Correspondent
Commercial Bank is the second largest bank in Germany. Yesterday was the biggest bank Deutsche,
deny that it had asked the German government to save.
Commerzbank now says it plans to restructure its coverage, included about 10,000 job losses and not to distribute dividends to shareholders.
It is expected to provide billions of euros a year and allow Commerzbank to invest in new sectors of the business,
and the creation of new jobs in “growth areas” restructuring.
Commercial Bank owned by the German government, which took a stake to help the bank in the middle of the financial crisis in 2008.
However, 15%, and critics say that banks in Germany so far has been very slow to deal with the repercussions of the credit crisis.
Those banks are facing many of the same problems: a new competition,
the high cost of new regulations and all at the same time very low interest rates are hitting profits.
Despite the write-offs and higher loan loss provisions due to weakness in the shipping markets,
Commerzbank said it still expected to achieve a small net profit for 2016 as a whole.
And said it would start talks soon with staff representatives about the job cuts,
which are expected to be up to the loss of 7,300 full-time job, once be taken create 2300 new jobs in mind.
It fell Commercial Bank shares fell 1.3% in trading on Thursday afternoon.
At the same time, shares of Deutsche Bank,
which reaches its lowest level in 30 years earlier this week rose by 0.4% on Thursday, after rising 2 percent on Wednesday.
Despite the gains, however, most of the bank’s shares are being “reduced”.
Investors were selling shares in Deutsche in the hope that the bank will need to issue more shares,
which led to a decline in the value of existing holdings. And it can then buy them back at the lower price and make a profit.