Commerzbank, Germany’s third largest bank, is expected to announce an overhaul of its investment banking division that is likely to lead to hundreds of redundancies in the City.
The bank, which employs 1,200 in the division, mainly in London, will tomorrow outline its plans as it unveils third-quarter results.
Some analysts believe that as many as 450 jobs could go at the bank, which plans to scale back to concentrate on offering banking services to medium-sized German companies, reports The Times.
The overhaul is expected to lead to the closure of Commerzbank Securities operations in New York and Tokyo, in addition to a reduction in staff numbers in London and in Frankfurt. The restructuring could cost €130m (£91m).
Commerzbank’s decision to scale back its operation comes as bigger rivals such as UBS begin to expand. The Swiss bank revealed last week that it had taken on 700 people in investment banking during the quarter in Asia and in Europe.