FRANKFURT, Feb 17 (Reuters) – Germany’s Commerzbank (CBKG.DE) will rejoin the DAX index on Feb. 27, Deutsche Boerse (DB1Gn.DE) introduced late on Friday, marking a comeback for Germany’s No. 2 lender after it was faraway from the membership of blue-chip firms in 2018.
The return to the index comes after Commerzbank launched a significant overhaul two years in the past that noticed hundreds of job cuts and department closures that restored profitability.
“This reveals that we’re heading in the right direction with our restructuring – and spurs us on to proceed with the identical vitality,” Commerzbank AG stated on Twitter in response to the announcement.
In 2018, Commerzbank, nonetheless partly owned by the German authorities after a bailout, was expelled from the DAX index to make room for a rising know-how star, underscoring the declining fortunes of the nation’s prime banks.
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However that star was Wirecard AG , a funds firm that collapsed in 2020 after a years-long fraud was uncovered, embarrassing the German authorities and marking the nation’s fame as a protected haven funding.
Following Wirecard’s demise, Deutsche Boerse AG, which compiles the DAX index, revamped it to incorporate 40 firms, relatively than the earlier 30, and made membership standards harder.
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 substitute Linde Plc (LIN.N), which is giving up its itemizing in Germany.
Reporting by Tom Sims; modifying by Chris Reese and Jonathan Oatis
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