Investors in commerzbank, a disappointing german lender, have enjoyed an amazingly good summertime. less so, its senior executives, two of who had been obligated to resign at the beginning of july after a tussle with shareholder cerberus, a us personal equity group.

The hope that new bosses would aggressively restructure the lending company helped the stocks outpace the msci european countries banking institutions list by 21 portion things this season. the wildest optimists expected an innovative new cost-cutting plan in wednesdays second-quarter outcomes. they certainly were let down.

Instead it was left to chief economic officer bettina orlopp in guise of the c-suites shell-shocked survivor to go over another tough duration.

Adding to the normal problems, commerzbank must write-off 175m of financial loans to an individual case, almost certainly the payments group wirecard, accused of germanys largest-ever fraud. this figure surpassed the 131m commerzbank reserve for covid-related economic damage. it didn't suggest that due diligence is commerzbanks powerful point.

Ms orlopp performed have some great news on second-quarter web earnings. these arrived in at 220m, more than double the opinion figure, through price slices, describing a great share price join the day.

Rumours have circulated in the local press of a more hostile restructuring program. this supposedly included 400 part closures and 10,000 job slices quadrupling staff reductions mooted by outbound boss man zielkes program.

However it ended up being rash you may anticipate ms orlopp to reinvent commerzbank prior to new chairman hans-jorg vetter has started work. here, also, trouble may lie ahead: cerberus criticised the session.

Despite a rally of two-thirds from a mid-may nadir of 2.88, commerzbank shares positions at just a fifth of their tangible guide price. foretells merge commerzbank into deutsche bank failed last year partially because its main rationale would-have-been politically-unpopular job slices.

Mr zielkes small restructuring ended up being a feeble echo of that plan. he does leave his successor a common equity tier one proportion of 13.4 per cent, up 1 / 2 a per penny through the earlier year. however, a new chief executive doesn't have higher chance than he did of being able to resolve the disputes interesting between labour unions, borrowers and investors.

Like most european finance companies, commerzbank is caught in that purgatory to be too cost effective to sell, too challenging to get.

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