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| Commerzbank plans to cut 9,600 jobs | Commerzbank plans to cut 9,600 jobs |
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| Germany's second-biggest lender, Commerzbank, is planning to cut 9,600 jobs over the next four years and cease dividend payments for the first time. | Germany's second-biggest lender, Commerzbank, is planning to cut 9,600 jobs over the next four years and cease dividend payments for the first time. |
| In a statement, the bank said by the end of 2020 it would have "sustainably increased its profitability". | In a statement, the bank said by the end of 2020 it would have "sustainably increased its profitability". |
| However, the bank also said it aimed to create 2,300 new posts in areas where its business was growing. | However, the bank also said it aimed to create 2,300 new posts in areas where its business was growing. |
| Commerzbank's strategy for achieving this will be debated by the bank's board on Friday. | Commerzbank's strategy for achieving this will be debated by the bank's board on Friday. |
| Last year, the bank had about 51,300 employees. | Last year, the bank had about 51,300 employees. |
| Core businesses | |
| The announcement comes amid denials that the German government is working on a rescue plan for Deutsche Bank. | The announcement comes amid denials that the German government is working on a rescue plan for Deutsche Bank. |
| Deutsche Bank, the country's biggest bank, is facing a $14bn (£10.8bn; €12.5bn) fine in the US for mis-selling mortgage-backed bonds before the financial crisis of 2008. | Deutsche Bank, the country's biggest bank, is facing a $14bn (£10.8bn; €12.5bn) fine in the US for mis-selling mortgage-backed bonds before the financial crisis of 2008. |
| Commerzbank's strategy will see it concentrating on its "core" businesses of "private and small business customers" and "corporate clients" and digitising some processes. | |
| As part of the €1.1bn (£948m) restructure, it plans to merge its "Mittelstandsbank," which deals with medium-sized German firms, with its corporates and markets division. As a result, it will "probably" have to write off about €700m in the third quarter of 2016. | |
| It also intends to "scale back" its trading activities in investment banking. | |
| The bank said that would "reduce earnings volatility and regulatory risk and will free up capital to be invest in core client businesses". | |
| Small profit | |
| Despite the write-offs and higher loan loss provisions because of the weakness in the shipping markets, Commerzbank said it still expected to make a small net profit for 2016 as a whole. | |
| It said it would begin talks shortly with employee representatives about the job cuts, which are expected to amount to a loss of 7,300 full-time positions, once the creation of 2,300 new jobs is taken into account. | |
| Commerzbank's shares fell by 2.22% on Thursday. |