Commerzbank Weighs Deeper Cuts as Economy, Rates Hit Stock
- Germany’s economic contraction complicates CEO Zielke’s revamp
- Shares of the lender fell to a fresh record low this month
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Commerzbank AG’s strategy update this fall is likely to focus on deeper job cuts and branch closings as the troubled German lender contends with fears of a recession and a slump in the shares.
Chief Executive Officer Martin Zielke, whose three-year-old strategy was based on the prospect of a growing economy and rising interest rates, is examining various cost cutting scenarios, some of which include closing hundreds of branches, according to people familiar with the matter. The weaker economy and prospect of even lower rates -- which erode income from lending -- have pushed Zielke to consider options more severe than anticipated, said the people, asking not to be identified in discussing internal planning.