Commerzbank AG will exit a number of global locations under its current restructuring plan, Bloomberg News reported Feb. 28, citing an internal memo.
Germany's second-biggest bank by assets will withdraw from Hong Kong, Luxembourg and Hungary and shutter branches in cities including Bratislava in Slovakia, Barcelona and Brussels. The lender will also close representative offices in Azerbaijan, Georgia, Indonesia, Iraq, Kazakhstan, Lebanon, Malaysia, Serbia and Venezuela by 2024.
The bank reportedly plans to bundle its Asian sales business in Singapore, while its branch in Dubai will continue as a representative office. Commerzbank will also sell its unit in Brazil and subsequently open a representative office, according to the report.
All in all, the number of global correspondent banks will be cut to roughly 1,300 from 1,600, Bloomberg wrote.
The group's "Commerzbank Strategy 2024" envisages 340 branch closures and approximately 10,000 job cuts in a bid to cut costs by €1.4 billion by 2024. The new strategy is aimed at boosting group profitability with return on tangible equity expected at 6.5% to 7.0% in 2024.
Commerzbank plans to close 190 branches in 2021, to be followed by 150 more branch closures over the next two years. More than 80% of headcount reductions are set to be completed by the end of 2023.