Commerzbank is back in the Dax. Almost four and a half years after the descent, the Frankfurt money house returned to the top German stock exchange league on Monday. This means that Commerzbank is once again one of the 40 members of the German share index. At the start of trading at 9 a.m., CEO Manfred Knof and CFO Bettina Orlopp rang the stock exchange bell on the Frankfurt stock exchange floor.
Knof said the return of the Dax was "a good signal" for the German banking industry. Five banks were among the Dax founding members in 1988, of which only Deutsche Bank remained until the end. He described the prestigious return to the leading German index as an incentive for Commerzbank to continue on its way. The bank, founded in 1870, is now back where it belongs. "We came to stay."
The premature return of the Dax founding member was made possible by the withdrawal of the industrial gases manufacturer Linde from the Frankfurt Stock Exchange. "We are back," said Commerzbank after the decision by Deutsche Börse on February 17.
Jobs reduced - profits increased
After joining Commerzbank in early 2021, Knof tightened the austerity course. The bank cut thousands of jobs and significantly reduced its branch network in Germany. Last year, thanks to rising interest rates, Commerzbank made its highest profit since 2007 at a good 1.4 billion euros.
Commerzbank lost its place in the Dax in autumn 2018 because of its sharply reduced stock market value - to the payment service provider Wirecard. Commerzbank has been listed in the MDax for medium-sized companies since September 24, 2018. Wirecard collapsed in the summer of 2020 as a result of a balance sheet scandal involving air bookings worth billions, and the Dax then got stricter rules.
Commerzbank papers increase significantly at the start of trading
A place in the showcase of the German economy guarantees attention and attracts international investors. In addition, index funds (Exchange Traded Funds/ETFs) that replicate the composition of the leading index have to shift depending on the Dax list, which usually has an impact on the share prices of certain titles. At the start of trading on Monday, Commerzbank shares rose significantly and thus continued their strong development of the past few months.
Chief Financial Officer Orlopp said that Commerzbank would not rest on the success of the return to the Dax. The expectations of a Dax value are greater than of an MDax value. She emphasized that the bank wants to become a reliable dividend payer again. A start has been made with the planned dividend of 20 cents per share for the past financial year and the recently announced share buyback program.