Commerzbank to update strategy in first quarter - CEO to staff

FILE PHOTO: The financial district in Frankfurt, Germany, March 18, 2019. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - Commerzbank will present a strategy update for the struggling German lender in the first quarter, the company’s new chief executive said in a memo to staff on Monday.

“Commerzbank needs to undergo a fundamental transformation,” Manfred Knof wrote in the memo, which was seen by Reuters.

The bank has been struggling to generate profits and has announced it is reviewing its strategy, after the arrival of Knof, who joined from Deutsche Bank.

The German lender late last month said it would book 610 million euros ($744.99 million) in restructuring charges in the fourth quarter after reaching an agreement with staff on previously announced headcount reductions.

Reporting by Edward Taylor and Patricia Uhlig; editing by Tom Sims