Commerzbank
Brand value
$2,328m
Brand rating
AA-
Market cap
$6,246m
Value / market cap
37.3%
This brand has received no votes.
Market cap
* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.
Performance of the brand
Once been the second national German champion next to Deutsche Bank, the formerly proud Commerzbank headquartered in Frankfurt am Main is now struggling due to the deteriorating European debt crisis. In 2008, after approving the sale of Dresdner Bank to Commerzbank, Peer Steinbrück, Germany’s former Federal Minister of Finance, was proud of the bank’s development and rapid growth. However, after the Lehman bankruptcy in 2008, the entire banking industry suffered severely. Also Commerzbank had to receive financial support amounting to €18 billion from the federal state.
And, even worse, the story continues in 2011. Concern about rising government debt levels across the globe together with a wave of downgrading of European government debt created alarm in financial markets. Since early 2011, Commerzbank shares dropped from a peak of €6.24 in February 2011 to an all-time low of €1.13 on November 23, 2011. Investors increasingly fear that the formerly trusted German bank might have to rely on government support in the near future. A reason for these presumptions has been the announced stress test of the European Banking Authority (EBA) that might reveal that Commerzbank’s need for capital might be even worse than expected. At the moment, the additionally capital needed is estimated to total around €2.9 billion. However, according to EBA, the financial gap could be as high as €5 billion. This deficit especially resulted from the large amount of Greek government bond write-offs Commerzbank recorded in the third quarter of 2011, resulting in a loss of €664 million. According to experts, the bank will have to choose between either getting rid of a decent amount of company shares, or relying on government support (resulting in an increased governmental control) in order to find a way out of its misery.
The bank’s critical financial situation also had a major impact on both its enterprise and brand value. Within the BrandFinance® Banking 500 2011 league table, the German bank lost 18 ranks, now representing rank 58, making it the third most valuable German bank after Dresdner Bank (rank 14) and DZ Bank (rank 40). However, in 2011, the Commerzbank brand lost 13% of its value, dropping down to $3,067 million compared to $3,521 million in 2010. At the same time, enterprise value decreased from $11,065 in 2010 to only $7,578 in 2011. Given the recent economic developments, it can be expected that both values will further decrease within the upcoming 2012 brand valuation results. In addition, the bank might even have to fear to lose its current AA+ brand rating.
Last changed December 14, 2011
League tables
Commerzbank appears in the following brand league tables:
Rank 66 in the
Banking 500 2012.
Rank 58 in the
Banking 500 2011.
Rank 353 in the
Global 500 2011.
Rank 236 in the
Global 500 2010.
Rank 41 in the
Banking 500 2010.
Rank 61 in the
Banking 500 2009.
Rank 381 in the
Global 500 2009.
Rank 49 in the
Banking 500 2008.
Rank 240 in the
Global 500 2008.
Rank 38 in the
Banking 500 2007.
Rank 38 in the
Banking 100 2007.
2012 brand performance*
Brand value
$2,328m
Brand rating
AA-
Market cap
$6,246m
Value / market cap
37.3%
* Figures taken on 31st December 2011.
2011 brand performance*
Brand value
$3,067m
Brand rating
AA+
Market cap
$7,578m
Value / market cap
40.5%
* Figures taken on 31st December 2010.
2010 brand performance*
Brand value
$3,521m
Brand rating
A+
Market cap
$11,065m
Value / market cap
31.8%
* Figures taken on 31st December 2009.
2009 brand performance*
Brand value
$1,738m
Brand rating
AA-
Market cap
$5,431m
Value / market cap
32.0%
* Figures taken on 31st December 2008.
Company history
Commerzbank was founded in 1870 by Theodor Wille who successfully liaised with several well-known German merchant banks and trading companies, resulting in the foundation of the all-purpose bank called Commerz- und Disconto-Bank, a joint-stock company. Thanks to the industrial revolution taking place during this period, Commerz- and Disconto-Bank profited from trade finance and loans given to businesses of all sizes. By taking over several banks such as J. Dreyfus & Co. and Berliner Bank, Commerz- and Disconto-Bank established its position within Germany’s major financial centres Frankfurt am Main and Berlin and soon became one of the country’s leading financial institutions. During the consolidation process taking place within the German banking industry in the 1920s, Commerz- and Disconto-Bank continued its series of mergers by joining forces with the Mitteldeutsche Creditbank in 1929. After the bank survived the banking crisis during the 1930s with the help of government interventions, it got renamed to Commerzbank AG. During the period of the Nazi regime, the policies of the bank were especially marked by business interests and by the ongoing adjustment to political and economic conditions of the Nazi system. “Non-Aryan” employees and managers had to leave the company and negotiations with Jewish banks such as Gebr. Arnhold were stopped even before an agreement could be reached. After 1945, Commerzbank lost 45% of its branches to the Soviet occupation zone. Since the 1950s, Commerzbank started to increase its focus on retail customers and began to offer financial services as well. Thus, the bank opened additional outlets in order to move closer to its customers, counting a total of 372 outlets in 1962. After the German unification, Commerzbank further strengthened its position within the German financial market. Online banking was launched in 1997 for the first time and the well-known subsidiary comdirect bank AG, a full-service bank for retail clients, was founded in 1995. In 2002, all private banking business were combined to form an independent division. Today, Commerzbank still provides its clients with decentralised services and the largest number of outlets in and outside Germany.
Advertising
Key people
Martin Blessing, CEO
Before becoming CEO of Commerzbank AG in May 2008, Martin Blessing served as Head of Corporate Customer Business for the bank. Prior to joining Commerzbank, he worked as a Partner of McKinsey in Frankfurt and New York. He obtains a degree in Business Administration from the University of Frankfurt and the University of St. Gallen and holds an MBA from the University of Chicago.
Dr. Eric Strutz, CFO
Eric Strutz has been serving as Chief Financial Officer of Commerzbank AG since May 2005 and also serves as Chief Strategist of the bank. Strutz will be succeeded by Stephan Engels, the current Head of Finance & Controlling at Mercedes Benz, from April 2012.
Uwe Hellmann, Head of Brand Management
Uwe Hellmann has been Head of Brand Management at Commerzbank AG for several years. Before joining Commerzbank, Hellmann served as Brand Manager and Brand Consultant at RWE AG, Brand Union, Henrion, and Ludlow & Schmidt.
