Commerzbank, Germany's new commercial bank, is set to lay off 3,900 employees, expected to be completed by 2571.

Commerzbank, Germany's new commercial bank, is set to lay off 3,900 employees, expected to be completed by 2571, as part of its new strategic goals.

On February 13, 2568, Reuters news agency reported that Commerzbank, Germany's largest commercial bank, said it will cut 3,900 jobs.

The bulk of the acquisition will be in Germany and is expected to take place by 2571, as the bank unveils a number of new strategic targets as part of a strategic reform designed to rein in UniCredit.

The layoffs will be made in part through headcount increases across global locations, leaving the global headcount steady at 36,700.

Commerzbank forecasts pre-tax restructuring charges of around €700 million ($730.7 million) in 2568. With a target net income of €2.4 billion after deducting these costs for 2568, Commerzbank plans a payout ratio of more than 100% in the period 2568-2571 after deducting restructuring costs and additional Tier 1 (AT1) coupon bonds.

Commerzbank released its record annual results two weeks ahead of its financial results release, in order to comply with German regulatory requirements when a company’s return on capital significantly exceeds market expectations.

Revenue in 2567 was €1.11 billion, compared with €1.0461 billion in 2566, while net profit rose 20% to €2.68 billion ($2.78 billion), beating expectations. It said it planned to buy back €400 million of its shares and increase its dividend to €0.65 per share, compared with €0.35 per share a year earlier.

Commerzbank The bank has been pushing for its own takeover since last year when UniCredit took a surprise stake, sparking speculation that it may be looking for a cross-border acquisition. UniCredit currently holds a 9.5% stake directly and an 18.5% stake through derivatives in Commerzbank.

refer : cnbc.com

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