Commerz-bank's Chief Executive announced that he is to waive his 700,000 euro bonus for 2012 and warned investors not to expect a dividend from what will be a difficult 2013. Germany's second-biggest lender, which received an 18 billion-euro government bailout at the height of the financial crisis, said that this year's earnings will take a hit from a slowing economy and charges for cost cuts in its drive to make the bank more resilient.
"The current year will not be an easy year," Chief Executive Martin Blessing said on Friday, adding that a dividend payment for 2013 was unlikely. "Strengthening our capital will continue to be our priority." Cut-throat competition and shrinking margins are forcing lenders across Europe to review their business. While Swiss peer UBS is firing 10,000 bankers, Barclays is axing at least 3,700 jobs and German bellwether Deutsche Bank is cutting 2,000 positions.
Commerzbank has warned that more charges are to come. It will take a hit of about half a billion euros in the first quarter of 2013 from a move to cut up to 6,000 jobs by 2016. "2013 will be the year of change. And this change will cost energy, money and time," Blessing said, adding that he hopes to conclude negotiations with the works council on job cuts by the summer break.
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