Germany's second-largest lender Commerzbank to cut 3,900 jobs as it unveils new targets
Germany's second-largest lender Commerzbank on Thursday announced it will eliminate 3,900 full-time positions by 2028, largely in its native Germany, as it unveiled a spate of new strategic targets.
The job cuts will be accompanied by increases in staffing in «selected areas» such as in international locations, resulting in a broadly constant global headcount of 36,700, the bank said in its strategic update.
The lender anticipates around 700 million euros ($730.7 million) of before-tax restructuring costs in 2025, targeting a net result of 2.4 billion euros after these charges for the year. It plans a payout ratio of more than 100% over the 2025-2028 period, after the deduction of restructuring costs and Additional Tier 1 (AT 1) bond coupons.
Revenue in 2024 came in at 11.1 billion euros, compared with 10.461 billion euros in 2023.
Commerzbank had disclosed its «record» annual performance two weeks before the scheduled release of its financial results, in a bid to fall in step with German legal requirements when a company's capital return significantly exceeds the expectations of capital markets.
At the time, it said net profit hiked by 20% to a forecast-beating 2.68 billion euros ($2.78 billion) in 2024, outlining plans to repurchase 400 million euros of shares and boost its dividend payout to 0.65 euros per share, compared with 0.35 euros per share in the previous year.
Commerzbank has been advocating its case to stand alone since last year's surprise build of a stake by UniCredit fueled market talk that Italy's second-largest lender could be on the hunt for a cross-border takeover. UniCredit currently holds a direct 9.5% stake and a 18.5% stake via derivatives in Commerzbank.
The German government has opposed the
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