BERLIN, Feb 27 (Reuters) – Germany’s Commerzbank (CBKG.DE) rejoined the DAX index on Monday, marking a comeback for Germany’s No. 2 lender after it was faraway from the membership of blue-chip corporations in 2018.
The return to the index comes after Commerzbank launched a serious overhaul two years in the past that noticed hundreds of job cuts and department closures that restored profitability.
“We have now come to remain,” Commerzbank CEO Manfred Knof stated earlier than ringing the opening bell on the Frankfurt inventory trade. “The return of Commerzbank is an effective sign for the German banking market.”
In 2018, Commerzbank, nonetheless partly owned by the German authorities after a bailout, was expelled from the DAX index to make room for Wirecard AG, a funds firm that collapsed in 2020 after a years-long fraud was uncovered.
Following Wirecard’s demise, Deutsche Boerse AG, which compiles the DAX index, revamped it to incorporate 40 corporations, reasonably than the earlier 30, and made membership standards more durable.
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Since its founding in 1988, the DAX has been Germany’s reply to the Dow Jones Industrial Common in New York and the FTSE in London, with its members forming the company elite in one of many world’s largest economies.
Different members embrace Siemens AG, Volkswagen AG, and Allianz SE.
Commerzbank will change Linde Plc (LIN.N), which is giving up its itemizing in Germany.
Reporting by Marta Orosz, Writing by Rachel Extra, Enhancing by Miranda Murray
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