FRANKFURT (dpa-AFX) - Commerzbank is back in the Dax. Almost four and a half years after its relegation, the Frankfurt-based financial institution returned to Germany's top stock market league on Monday. This means that Commerzbank is once again one of the now 40 members of the German share index. At the start of trading at 9:00 a.m., Group CEO Manfred Knof and CFO Bettina Orlopp rang the stock exchange bell on the Frankfurt trading floor.

Knof said the Dax return was "a good signal" for the German banking industry. Among the founding members of the Dax in 1988, he said, were five banks, of which only Deutsche Bank remained until recently. He described the prestigious return to Germany's leading index as an incentive for Commerzbank to continue on its path. The bank, founded in 1870, is now back where it belongs, he said. "We have come to stay."

The early return of the Dax founding member was made possible by the withdrawal of industrial gas producer Linde from the Frankfurt Stock Exchange. "We are back," Commerzbank announced after Deutsche Börse's decision on Feb. 17.

Knof had tightened austerity measures after taking over at Commerzbank in early 2021. The bank cut thousands of jobs and significantly reduced its branch network in Germany. Last year, Commerzbank made its highest profit since 2007, with a good 1.4 billion euros below the line, thanks in part to rising interest rates.

Commerzbank had lost its place in the Dax in the fall of 2018 due to its sharply trimmed stock market value - to the payment service provider Wirecard. Since September 24, 2018, Commerzbank had been listed in the MDax mid-cap index. Wirecard collapsed in the summer of 2020 as a result of an accounting scandal involving billions of euros in air bookings, after which the Dax was given stricter rules.

A place in the showcase of the German economy guarantees attention and attracts international investors. Added to this: Index funds (exchange traded funds/ETFs), which track the composition of the leading index, have to rebalance depending on the Dax lineup, which usually affects the share prices of certain stocks. Commerzbank shares rose sharply at the start of trading on Monday, continuing their strong performance of recent months.

Chief Financial Officer Orlopp said Commerzbank would not rest on its success in returning to the Dax. The expectations for a Dax stock are greater than for an MDax stock, she said. She stressed that the bank wants to become a reliable dividend payer again. With the planned dividend of 20 cents per share for the past fiscal year and the recently announced share buyback program, a start had been made./als/ben/DP/mis