The Commerzbank is in its worst crisis in living memory, after both the Chairman of the Supervisory Board Stefan Schmittmann as well as the Chairman of the Board Martin Zielke announced their withdrawal.
Behind the Bang, leaves the Bank, your employees and your customers are disoriented, there is a much larger Problem that has been known for years: The Commerzbank in its present structure, is not a sustainable business model – and just Zielke this is likely to have known. Because it was Zielke, who had joined in the past year, for a merger with Deutsche Bank, which finally failed due to the resistance of Deutsche Bank.
Modest earnings potential
Zielke has tried in the years of his term, Commerzbank, through an extension of their business, to increase the revenue base for the long term and to avoid very strong cost reductions. Anyone who has observed the Figures of the Commerzbank for years, knew that the Bank had, in spite of all efforts, only a modest yield potential, and the strategy was sustainable only work in a scenario of rising interest rates.
The interest rates rose, however, and after the cancellation by the German Bank Commerzbank found itself in the Situation that you deserved to live a life with acceptable returns for the shareholders too little, and to Die for but still too much. Also on pressure from shareholders, the Bank was now under the coercion costs due to a drastic reduction of staff and by the numerous branch closures and beat together. To do this, Zielke and Schmitt-man may not be ready.
Now, Commerzbank and your employees are threatening to become orphans, if not quickly a solution is found. The Bank brings this solution alone may be doubted. And so it is likely to mean in reference to an old television series soon: Sewing, over to you!
