Commerzbank AG (CRZBY.PK) said Sunday that its Chairman of the Board of Managing Directors and Chief Executive Office Martin Blessing informed Supervisory Board Chairman Klaus-Peter Müller that he would fulfill his contract, which runs until the end of October 2016, but he will not accept the offer to extend his term. He proved to be one of the most resilient bank CEOs in Europe, remaining at the top of the firm through an ill-fated takeover and a writedown on Greek debt. He follows CEOs at Deutsche Bank AG, Barclays Plc and Credit Suisse Group AG who have left their roles in recent months. The company has said it is on course to pay a dividend for this year, its first in eight years.
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He has declined the Supervisory Board’s offer to extend his contract beyond October 2016.
“In the first nine months, we have further increased the revenues and the profit, while also significantly strengthening the capital ratio”, said chief executive Martin Blessing. Commerzbank is still winding down its EuroHypo unit.
Frankfurt-based Commerzbank was severely hit by the financial crisis, having to be rescued by the state in 2009, and the government still holds a 15 per cent stake in the bank.
Commerzbank has seven management board members including Blessing.
The Wall Street Journal reported that Blessing’s decision appears to have come as a surprise to the bank’s board, which not have an apparent successor in the wings.
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In the third quarter, Commerzbank beat analysts’ expectations for pretax profit as the lender’s retail bank thrived, provisions for bad loans decreased and its run-down portfolio of unwanted assets broke even.
