business

Bank overseers seem to be critical of Commerzbank's strategy – stocks are clearly downward

Bank overseers seem to be critical of Commerzbank's strategy – stocks are clearly downward

The ECB's inspectors had recently examined the business plan in a special audit until 2021, and discovered major shortcomings, reported the & # 39; Sddeutsche Zeitung & # 39; in its Friday edition with reference to the supervisory authorities. In particular, the business customer business is worrying for the ECB. In general, the regulators found the business plan unimportant, which put Commerzbank at risk for its long-term profitability, writes the newspaper. Both Commerzbank and the ECB did not want to comment on Friday.

Commerzbank CEO Martin Zielke made the presentation of the quarterly results on Thursday, although progress has been made in the restructuring of the company. However, the bank still has a number of tasks to fulfill, he admitted. The bank wants to significantly increase the number of companies (assets under control) and the number of customers in 2020. By the digitization Business processes and the reduction of thousands of jobs must simultaneously improve profitability. Despite the growing number of customers, Commerzbank lowered its profit target for the medium term.

While Commerzbank increased revenues in its private client business in the third quarter thanks to stronger lending, the business customer business struggles with headwinds. Here the income fell by 5 percent to 918 million euros. Commerzbank does not expect a significant improvement. "The low margins of new companies beat faster than the competition," said CFO Stephan Engels.

The Commerzbank share fell by 1.1 percent to 8.71 euro due to the close of trading.

Frankfurt (Reuters)

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Image sources: Bocman1973 / Shutterstock.com, Commerzbank AG, mf

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