FRANKFURT, Sept 10 (Askume) – Commerzbank (CBKG.DE) said on Tuesday that Chief Executive Manfred Knopf will not run for re-election after his contract expires in December 2025, as the German government increases its stake in the bank.
The two announcements, made just minutes apart, signal a new era for Germany’s second-largest bank.
The stock sale was discussed last week , but the news about the CEO was a surprise.
Knopf joined Commerzbank in 2021 and immediately overhauled the bank, cutting thousands of jobs and hundreds of branches in an effort to restore profitability.
Following a bailout during the financial crisis 16 years ago, the German government held a long-term 16.5% stake in commercial banks through its bank rescue fund.
Jens Weidmann, chairman of the bank’s supervisory board, said he regretted Knopf’s decision but would begin the search for a successor.
The government said it would sell about 53 million shares to institutional investors and reduce its stake to 12% from 16.5%.
“Following the completion of this transaction, the Federal Republic of Germany will remain the largest shareholder of Commerzbank,” the government said.
But the company said the sale was the first step in a gradual divestment of its stake.
Knopf, a lawyer by profession, joined Deutsche Bank in 2019 from Commerzbank, having spent most of his career at Allianz, where he was head of German retail.
Prior to Knopf’s arrival, Commerzbank had been going through a period of turmoil, including merger talks with Deutsche Bank and the subsequent sale of a large Polish unit.
An activist investor pushed for major changes that led to the ouster of Knopf’s predecessor and bank president.
During his tenure, Knopf played down the possibility of resuming merger talks with Deutsche Bank and said he was trying to maintain the bank’s independence.
Commercial banks have returned to profitability, but officials have pointed to economic challenges ahead.
The bank’s shares have risen 17% so far this year but remain well below pre-global financial crisis levels.
“I am proud that, together with the entire management team, I have been able to shape this important path for the bank,” Knopf said.
“My family and I thought deeply over the summer about moving forward,” he said.
