FRANKFURT?Germany's Commerzbank AG is cutting more than 100 investment banking-related jobs in its New York office as part of its efforts to streamline its operations and boost profitability, according to an internal memo seen by The Wall Street Journal.
The move by the partially state-owned lender mirrors cutbacks at other big banks as tighter banking rules and a sluggish trading environment continue to weigh on the industry's profits.
Commerzbank early last year said it would bundle investment banking activities in certain locations it dubbed centers of competence.
"We are now consequently following this strategy with the realignments of our organizational setup in North America," said Michael Reuther, head of the lender's investment banking operations.
The current cuts, which were reported earlier by German daily Handelsblatt, affect about 100 back-office and roughly 10 front-office jobs, according to Mr. Reuther's memo.
As consequence of the cutbacks, Germany's second-largest lender by market capitalization will outsource the clearing of "non-U.S. commercial payments to" U.S. banks and stop its securities lending as well as structured finance business in the U.S.
Mr. Reuther stressed however that "North America is and will remain an important international hub for Commerzbank" with the New York office being critical for services for U.S. corporate and institutional clients. "We will continue to provide products such as [U.S. dollar] loans and [U.S. dollar] bonds, foreign exchange and other risk-management solutions, as well as equity markets access to our clients," he said.
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