At Commerzbank there are plans to further cut the branch network.

A further reduction in the number of branches by more than a tenth to 400 from the last 450 is being discussed, reports the Bloomberg news agency, citing “people familiar with the considerations” as the source.

Anyone who listens to Commerzbank will not receive any confirmation.

But the plans seem plausible.

Hanno Mussler

Editor in Business.

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On September 28, the Supervisory Board and Management Board meet for the annual strategy meeting, at which the medium-term goals are announced and new initiatives are decided.

According to Bloomberg, the reduction in the branch network by 50 branches is the main scenario proposed before the strategy meeting.

Commerzbank had already reached its previous target of 450 branches by mid-2022.

At the end of 2020, its branch network consisted of more than 800 locations.

The cuts are noticeable: now and then queues form in front of some Commerzbank branches in Frankfurt because customers can hardly be “handled” anymore.

Will Copernicus be revived?

Commerzbank is currently having to react to partially opposing trends.

On the one hand, the cost pressure is growing due to exploding energy costs and rising wages.

However, the income is also unusually plentiful, as Commerzbank is benefiting from the rise in interest rates like hardly any other bank.

Apparently, new growth plans are also based on the better opportunities in the lending and deposit business.

So far, however, Commerzbank has shied away from investments in a digital bank planned by the Polish subsidiary M-Bank years ago under the name "Copernicus".

It is unclear whether this will change anything.

Although Commerzbank has not yet had any noteworthy loan defaults, 

On request, Commerzbank announced that it had “achieved the goal of 450 branches earlier than planned”.

Now the focus is on "the development and expansion of digital access channels," according to a spokeswoman.

The strategy of the CEO Manfred Knof, who took office at the beginning of 2020, had so far mainly focused on far-reaching cost reductions.

Commerzbank reduced its workforce by more than 7,000 jobs.

In the meantime, however, the restructuring course has been well received on the stock exchange.

Commerzbank is one of the few stocks with price gains since the beginning of the year and has since blossomed into a contender for the Dax.

The market value of the free float is enough for a rise from the M-Dax to the Dax, Commerzbank only has to meet the basic criterion of Deutsche Bank.

Make a profit for two years.

This should be the case soon.

After a positive conclusion last year, despite the danger of recession, the Management Board is maintaining the goal of achieving a profit of more than EUR 1 billion in 2022 and then also paying shareholders a dividend in spring 2023.

It would only be the third profit distribution since the financial crisis and the entry of the state, which still holds a 15.6 percent stake.