Commerzbank CEO Manfred Knof will not extend his contract, which runs until the end of 2025. Knof informed the chairman of the supervisory board, Jens Weidmann, of this, the DAX group announced shortly after the stock market closed. The supervisory board will immediately begin the search for Knof’s successor.
At the same time, the federal government has begun the announced sale of Commerzbank shares. The Finance Agency of the Federal Republic of Germany announced that a good 53.1 million shares would be sold to major investors in an accelerated placement process. The state’s stake would accordingly fall from around 16.5 to 12.0 percent. The package for sale is worth around 670 million euros based on Tuesday’s closing price, although discounts are usual for such placements.
Commerzbank has turned things around
CEO Knof has been leading the bank since 2021. He tightened the bank’s austerity measures and pushed ahead with restructuring: thousands of jobs were eliminated and the branch network was significantly reduced. The restructuring also enabled the group to turn the tide.
“Without Manfred Knof, Commerzbank would not be as present and as relevant among European banks today,” said Supervisory Board Chairman Weidmann. “Thanks to his clear leadership, the bank was restructured in record time, the business model was clearly focused and the bank was geared towards sustainability.”
Last year, Deutsche Bank’s competitor reported record profits of around 2.2 billion euros. The German government now also wants to gradually withdraw from Commerzbank, which was partially nationalized during the global financial crisis around 16 years ago. The federal government announced this last week.
Knof explained that he had used the “summer break with my family to carefully consider this step.” He will be available until the end of his contract.
The most promising candidate to succeed Knof is Commerzbank CFO Bettina Orlopp (54). She has long been said to have ambitions to become CEO. There are said to have been differences between Knof and Orlopp in recent weeks. At a banking conference held by the “Handelsblatt” in Frankfurt, Orlopp avoided questions about her interest in the top position at Commerzbank.
Rescue in the midst of the financial crisis
The state used a lot of taxpayers’ money to save the major Frankfurt bank, which had swallowed up the struggling Dresdner Bank in the middle of the global financial crisis, from collapse. Commerzbank received capital aid of 18.2 billion euros from the FMS in 2008 and 2009. According to the finance agency, around 13.15 billion euros have been repaid so far.
Even after the current share sale, the state remains the largest single shareholder in the DAX group. Apart from certain exceptions, no further Commerzbank shares will be sold for 90 days, the finance agency further announced.
© dpa-infocom, dpa:240910-930-228857/3
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