More trouble for the two main German banks: Commerzbank cuts dividend and jobs, while Deutsche Bank records the new all-time low on the Stock Exchange.
Commerzbank aims to cut around 9.000 jobs over the next few years and will cut its 2016 dividend as part of its cost-cutting plan, according to a source close to the bank's supervisory board. The redundancies will be managed over a period of time up to 2020 but the size of the cuts, which represents approximately one-fifth of the entire workforce of Germany's second largest bank, does not exclude the possibility of intervening with mandatory exoduses. “This measure is much more radical than the previous ones,” explains the source. The personnel plan has an estimated cost of around one billion euros which the institute expects to cover with the elimination of the dividend.
However, the fall of Deutsche Bank does not stop, establishing a new historic low while the negative prospects linked to the general troubles of the sector continue to weigh but above all to the maxi fines demanded by the American authorities on a series of disputes. Yesterday the share had already suffered heavy falls after press rumors according to which the Merkel government had excluded public aid, which however the bank specified that it had never requested. In the early afternoon, Deutsche Bank shares recorded a further minus 3,13 percent to 10,22 euros, after having dropped to a new historical low of 10,19.
