Hui-Sun Kim, global head of fixed income and currency trading at Commerzbank AG (CBK.XE), has left Germany's second-largest lender, following the decision to merge the division's trading and sales operations.
In an Aug. 14 memo reviewed by Dow Jones Newswires, Michael Reuther, chief executive of the bank's corporates and markets and treasury division, announced Mr. Kim's departure as well as the appointment of Nikolaus Giesbert to run the combined division. Mr. Giesbert was previously Commerzbank's head of sales for fixed income and currencies.
Mr. Kim's departure is part of an effort by Commerzbank--currently 17%-owned by the German government following a crisis-era bailout--to reduce costs and streamline its organization.
In the memo, Mr. Reuther thanked Mr. Kim for his time at the bank, crediting him with improving the bank's options trading and risk management, among other things.
Mr. Kim's departure comes a week after Commerzbank announced it planned to eliminate 20% of its top 55 executive spots over the next few weeks. According to people familiar with the situation, Mr. Kim will be the only executive to leave within Commerzbank's investment banking business. His departure isn't a precursor to reducing the number of employees in the fixed income and currencies business, the people said.
The bank's supervisory board last week said it plans to decrease the size of the bank's management board to seven members from nine, as part of a cost-cutting process initially announced by the bank in November. The name of the members who will leave the board hasn't been confirmed yet.
"In view of the agreed job cuts it is only consistent that the management structures of the bank are also amended," said Klaus-Peter Müller, chairman of the supervisory board, last week. In June, Commerzbank agreed with labor unions to cut full-time jobs by 4,000 to 6,000 by 2016, which represents up to 12% of the bank's 49,215 full-time staff.
Commerzbank's second quarter results showed that net profit in the second quarter fell 84% to EUR43 million ($57.3 million) from EUR270 million a year earlier. Results beat analysts' expectations and led to a 16% surge in the bank's shares on the day.
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