Commerzbank facts for kids
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Commerzbank Tower, the headquarters of Commerzbank in Innenstadt, Frankfurt.
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| Public (Aktiengesellschaft) | |
| Traded as | FWB: CBK |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=DE000CBK1001 DE000CBK1001] |
| Industry | Financial services |
| Founded | 26 February 1870 in Hamburg |
| Founders | Theodor Wille et al. |
| Headquarters | Commerzbank Tower, , |
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Number of locations
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15 operational foreign branches and 27 representative offices in over 40 countries (2023) |
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Area served
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Worldwide |
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Key people
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| Brands |
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| Services |
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| Revenue |  €10.5 billion (2023) |
| €2.2 billion (2023) |
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| Total assets | €517.2 billion (2023) |
| Total equity | €33 billion (2023) |
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Number of employees
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42,098 (2023) |
| Capital ratio | 14.7% (2023) |
| Rating |
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| Footnotes / references Commerzbank Investor Relations |
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Commerzbank AG, often just called Commerzbank, is a big bank in Europe. Its main office is in Frankfurt am Main, Germany. It helps regular people, small businesses, and large companies with their money. The Commerzbank family also includes Comdirect Bank in Germany and mBank in Poland.
This bank is one of Germany's oldest, started in 1870. It helps German companies trade with other countries. Commerzbank also has offices in major cities around the world. In 1971, it was the first German bank to open a branch in New York City.
A big event for the bank was buying Dresdner Bank in 2009. After a big financial crisis, the German government became a major owner of Commerzbank. The government still owns a part of the bank today. Commerzbank is listed on the DAX, a main stock index in Germany. In recent years, the bank has become profitable again by cutting costs and changing how it does business.
Contents
History of Commerzbank
Commerzbank has a long and interesting history, going back over 150 years. It started small and grew into a major international bank.
How Commerzbank Began (1870–1929)
On February 26, 1870, a merchant named Theodor Wille and other business people in Hamburg started the Commerz- und Diskonto-Bank. Their goal was to help Hamburg's businesses with money and make international trade easier. They even opened a branch in London. The bank grew quickly, adding offices in Berlin and Frankfurt. It became a big national bank with over 280 branches in Germany.
After a time of very high inflation in Germany around 1924, banks had to re-evaluate their money. Commerz- und Privat-Bank (as it was then called) valued its capital at 42 million Goldmarks. Things got better, and in 1927, the bank opened an office in New York City. In 1929, it joined with Mitteldeutsche Creditbank to expand its network in other parts of Germany.
Changes During Difficult Times (1931–1945)
In 1931, many banks, including Commerz- und Privat-Bank, faced problems during a financial crisis. To help stabilize the bank, the German government merged it with another bank in 1932. The government then owned 70 percent of the bank. However, by 1937, the government sold its shares back to private owners.
During the Nazi era, the bank changed its name to Commerzbank Aktiengesellschaft in 1940. It opened branches in countries that Germany had taken over during World War II. This helped with economic interests. Before the war ended, the bank moved its main office from Berlin to Hamburg for safety.
Rebuilding After World War II (1945–1967)
After World War II ended in 1945, Germany was divided. Commerzbank lost many of its branches in East Germany. In West Germany, big banks were broken up into smaller regional banks. Commerzbank was split into nine smaller banks in 1947.
When a new currency, the Deutsche Mark, was introduced in 1948, it helped banks start fresh. In 1952, the smaller Commerzbank parts in West Germany merged into three main banks. Then, in 1956, these three banks were allowed to merge back into one Commerzbank Aktiengesellschaft. This big merger happened in 1958.
From 1958, banks could open new branches more easily. By 1962, Commerzbank had more branches than before the war. In 1959, Commerzbank and other big banks started offering "small loans for everyone." Commerzbank also began helping people finance their homes in 1968. By 1969, over one million people were customers of Commerzbank.
The 1950s and 1960s also saw banks starting to work more internationally. Commerzbank was one of the first German banks to be listed on the London Stock Exchange. It opened offices in many countries, including Rio de Janeiro (1952), Madrid (1953), Tokyo (1961), and New York City (1967).
Growing Globally (1970–1990)
The 1970s and 1980s were about working with other banks worldwide. In 1970, Commerzbank teamed up with a French bank, and later other European banks joined. This led to Commerzbank introducing its "Quatre Vents" logo in 1972, which looked like a wind rose.
During this time, "Eurocheques" were introduced. This allowed customers to get cash in 30 European countries using a special card. In 1981, the Eurocheque card got a magnetic strip for ATMs.
In 1970, Commerzbank also started a non-profit organization called the Commerzbank Foundation. This foundation supports science, culture, and social causes. It helps people get jobs and promotes modern art.
Expanding and Innovating (1990–1998)
In 1990, Commerzbank moved its main office to Frankfurt. When Germany reunited, Commerzbank gained many new customers in East Germany. The bank also continued to grow internationally, opening offices in places like Bangkok and South Africa.
In the early 1990s, Commerzbank earned a lot more money. To make even more profit, they cut costs and some jobs. This helped them offer better returns to their shareholders.
In 1994, Commerzbank started Comdirect Bank. This was a new way for a big German bank to offer banking services directly to customers, often online. By 1999, Commerzbank even sold computers to help people use online banking.
At this time, about two-thirds of the bank's income came from outside Germany. Commerzbank wanted to increase its profits even more to compete globally. It also bought a part of the Korea Exchange Bank in 1998 to grow in Asian markets.
Big Mergers and Challenges (2001–2009)
In 2001, Commerzbank changed how it organized its business in Germany. It created separate parts for regular customers and for big companies. It even opened some branches on Saturdays to serve customers better.
In 2004, Commerzbank bought Schmidtbank, adding 70 branches and 360,000 new customers. It also grew in Eastern Europe, taking over Poland's BRE Bank (now mBank) in 2003.
In 2002, Commerzbank, along with other big banks, helped create Eurohypo, a bank for mortgages. Commerzbank later decided to take over Eurohypo completely in 2005. This made Commerzbank the second-largest bank in Germany.
Around 2008, during a big global financial crisis, there was talk of Commerzbank merging with other banks. Eventually, Commerzbank announced it would take over Dresdner Bank. This was a huge merger for the German banking world.
Because of the financial crisis and the Dresdner Bank takeover, Commerzbank needed help. The German government stepped in and became a major shareholder in the bank. By January 2009, Commerzbank fully owned Dresdner Bank. The "Dresdner Bank" name slowly disappeared as it became part of Commerzbank.
Modern Commerzbank (2011–2023)
In 2011, Commerzbank started paying back the government's help. It raised a lot of money from investors to do this.
After the financial crisis, Commerzbank worked hard to regain public trust. It even ran an advertising campaign admitting past mistakes. The bank also faced challenges from the Greek debt crisis, which affected its profits. It had to cut costs and sell off some parts of its business, like Eurohypo.
The world changed a lot with digital technology. In response, Commerzbank's CEO, Martin Zielke, announced big changes in 2016. The bank wanted to focus on helping private and business customers in Germany. It aimed to be a "multi-channel bank," meaning customers could use online services or visit branches.
In 2019, Commerzbank and Deutsche Bank talked about merging, but they decided against it. This led to changes in Commerzbank's leadership. In 2021, Manfred Knof became the new CEO. Under his leadership, the bank focused on making profits, helping customers, being sustainable, and using digital tools. They combined Commerzbank's advice with Comdirect's digital skills to create a "digital advisory bank."
To stay independent and deal with economic risks, Commerzbank greatly reduced its costs. By early 2023, it cut about 10,000 jobs and closed about half of its branches in Germany.
In 2022, Commerzbank had its best results in over ten years. In 2023, it rejoined the DAX, Germany's main stock index. Experts said the bank had made a "turnaround" after the financial crisis. The bank continued to do well in 2023, reporting its best profit in 15 years.
For 2022, Commerzbank shared 30 percent of its profit with shareholders. This was the first time since 2018. They paid a dividend and bought back some of their own shares. For 2023, they plan to share 50 percent of their profit with shareholders.
How Commerzbank Works
Commerzbank is a German public company. This means its shares can be bought and sold by the public. Its main goal is to provide all kinds of banking and financial services.
The European Central Bank (ECB) oversees Commerzbank. It is not considered a "globally systemically important" bank, meaning its failure would not cause a worldwide financial collapse.
Stock Market Listing
Commerzbank shares are traded on the Frankfurt Stock Exchange and are part of the DAX index. The bank holds its annual meeting for shareholders in Germany. During the coronavirus pandemic in 2020, they held digital meetings.
Commerzbank's financial reports include all the companies it owns or is involved with. Its most important German company is Commerz Real. Internationally, it has four main companies, including mBank in Poland. It also invests in new financial technology companies (fintechs).
Leadership
Commerzbank has two main groups of leaders: the Board of Managing Directors and the Supervisory Board.
Board of Managing Directors
This board runs the bank day-to-day.
- Manfred Knof (Chairman and CEO)
- Bettina Orlopp (Deputy Chairwoman, Chief Financial Officer)
- Michael Kotzbauer (Leads Corporate Clients)
- Sabine Mlnarsky (Leads Human Resources)
- Jörg Oliveri del Castillo-Schulz (Chief Operating Officer)
- Thomas Schaufler (Leads Private and Small-Business Customers)
- Bernhard Spalt (Leads Risk Management)
Supervisory Board
This board advises the management and checks how the business is run. It has 20 members, half representing shareholders and half representing employees. Its Chairman is Jens Weidmann.
Who Owns Commerzbank?
The German government, through a special fund, is the largest single owner, with over 15 percent of the shares. The rest of the shares are owned by many different investors. Big investment firms like Blackrock and Norges own more than 3-5 percent. About 25 percent of Commerzbank shares are owned by private investors (as of February 2024).
Memberships
Commerzbank is part of many important groups. These include the Association of German Banks and the Employers' Association of Private Banking. It also works with business groups like the Federal Association of Small and Medium-Sized Enterprises. Commerzbank also talks with all democratic political parties in Germany.
What Services Does Commerzbank Offer?
Commerzbank offers many services to help people and businesses manage their money.
Services for People and Businesses
Commerzbank is a top bank for regular people and entrepreneurs in Germany. It offers many products for:
- Payment transactions: Like checking accounts and debit cards.
- Securities trading: Helping people buy and sell stocks and bonds.
- Investments and financing: Helping people save money or get loans.
They offer advice both online and in person. Their "free checking account" has attracted many customers. The bank also works with KfW, a German development bank, for real estate and business loans.
For companies, Commerzbank offers traditional services like accounts and loans. It also helps companies raise money by issuing shares or bonds.
International business is a key area. The bank helps German and international companies with things like exchanging foreign money and managing risks. Commerzbank helps finance about one-third of Germany's foreign trade.
Main Offices and Locations
Commerzbank has about 400 branches across Germany. These branches offer a variety of services.
The main headquarters is in the Commerzbank Tower in Frankfurt am Main. There are also offices in Berlin and Brussels.
Commerzbank has international offices in cities like New York City and Singapore.
The Commerzbank Brand
Over the years, Commerzbank has had different logos. Early logos used abbreviations like CDB and CPB. In 1940, a logo with a 'C' and Mercury wings was introduced. Then, in 1972, came the "Quatre Vents" logo, which looked like a compass rose.
After taking over Dresdner Bank in 2009, Commerzbank introduced a new logo. It featured the bank's name in a new font, the color yellow, and a ribbon design.
The Waldstadion in Frankfurt was once called the 'Commerzbank Arena' due to sponsorship. Since 2008, Commerzbank has partnered with the German Football Association (DFB). Until 2021, they supported the men's national team. Now, they focus on the women's national team. Commerzbank created a popular advertising campaign for the 2019 FIFA Women's World Cup with the women's team.
Commerzbank and Climate Change
Commerzbank supports the Paris Agreement goal to limit global warming. This means keeping the Earth's temperature rise below two degrees Celsius. The bank signed the United Nations Global Compact in 2006. It was also one of the first to sign the Principles for Responsible Banking in 2019.
Since the 1980s, Commerzbank has helped fund projects using renewable energy. This commitment has grown over time. Commerzbank also issues special bonds called Green Bonds. These bonds help fund projects that benefit the environment. By June 2022, Commerzbank had issued three Green Bonds worth 1.5 billion euros.
In 2016, Commerzbank made a rule about financing coal projects. In 2022, this rule was updated to cover all fossil fuels (coal, oil, and gas). It sets clear limits and rules for business related to these fuels.
Commerzbank uses scientific methods to make sure its investments help achieve carbon neutrality. The bank joined the Science Based Targets initiative (SBTi) in 2022. In 2023, Commerzbank became the first German bank to get certified for its 2030 emission reduction goals.
On a national level, Commerzbank supports the German Sustainability Code. It has also signed the climate agreement for the German financial sector. The bank has a system to reduce its own greenhouse gas emissions. Since 2013, all electricity used in its German operations comes from renewable sources.
See also
- Comdirect Bank
- mBank
Images for kids
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Former head office of Hessischer Bankverein in Kassel, taken over by Commerzbank in 1922
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Former head office of Barmer Bankverein, Düsseldorf
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Historical share of Commerz- und Privat-Bank from 1932; stamp imprint from 1940 with the name of Commerzbank
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Former Commerzbank high-rise building in Frankfurt am Main (1974)
