Commerzbank is increasing from the first stock exchange League. The founding member of the German stock index, DAX, will vacate his seat for a Fintech-companies – the payment processor Wirecard.
The descent is for the Commerzbank bitter – ironically, in the 30. Year of existence of the DAX. But four times in the year it is checked, who belongs to the group of the 30 largest listed German corporations. The measured value according to the stock exchange, and trading turnover. And as Commerzbank is measured at the exchange value, currently only around 10.3 billion euros, value that is much smaller payment provider Wirecard comes to a good EUR 24 billion and has overtaken in the past few weeks, even Deutsche Bank. The banks in Germany, the Commerzbank, have suffered in the Wake of the financial crisis, heavy losses.
“This shows the degree to which you are behind of other industrial companies in Germany and Europe are like,” says Klaus Nieding, Vice President of the German Association for wertpapierbesitz (DSW). The meaning of the German “great banks” had fallen in the international environment, the Commerzbank but anyway, back in the past few years, their international approach.
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Wirecard displaces the Commerzbank?
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Wirecard displaces the Commerzbank?
“Nice, I can’t find it,” is the laconic response of the Commerzbank chief Martin Zielke to the announced descent. Nevertheless, will change the business of the Bank for the customer, nothing else. You remain the leading Bank for Mittelstand customers in Germany. He can’t respond in his role would be different, but it is clear: Who flies out of the DAX, which enjoys the full attention of investors: “It is no longer in the Premium shop window, but only in the second row,” says Nieding. And it is also clear: The investment funds, which represent the Index, need to sell Commerzbank shares. This will put the course first.
What makes Wirecard?
Conversely, the payment processor Wirecard enjoys the greater attention of investors, though it is much smaller and very highly rated. For comparison: The Commerzbank is measured by the operational result of 2017 assessed with the eight-times the stock market value, Wirecard is to come on the factor 75. The payment processor has established itself since its inception – since happiness had control of the game and porn industry is still the main customer – in the meantime. Digital number processes in the Internet do not belong in the dirty corner, but are a matter of course – even at the counter. Almost 200,000 companies, the Munich-based provider and one of its customers, including Commerzbank. While 27 cents of every dollar the company makes on sales, as the operating profit left over. And Wirecard-founder Markus brown wants to increase this margin, because the digital Pay is just the beginning.
The rise of such financial technology companies is difficult for the traditional banks, such as Commerzbank. Because of the recognized meanwhile, what is the significance of the digitization. Commerzbank chief Zielke, and wants to digitize up to 2020, four-fifths of the business processes. However, the “yellow Bank” had to do a lot in recent years with the refurbishment of the strategic mistakes of the past. The most serious was probably the Takeover of Dresdner Bank by the end of August 2008. Two weeks later, it came to the bankruptcy of the American investment Bank Lehman Brothers and the financial crisis reached its peak.
Commerzbank could only be by the introduction of the state of saved – is still a more than 15 percent. Since then, it is converted, dismissed thousands of employees. By 2020, the Bank intends to provide the number of full-time to 7300 to 36,000 decrease. The end of the first half of the year 2018, there were still 41.300. The removal costs money and pushes up the yield. In the second quarter of 2017 led to a reduction in the loss of 640 million euros. A year later, the Bank was able to generate at least a profit after tax of EUR 272 million. Cost-intensive, also the Advertise to private customers, but The Bank assumes that it will hit in a few years, even in higher income. This evidence remained in the Bank so far guilty.