Wirecard AG, the fintech company whose shares have almost doubled this year, will replace Commerzbank AG in Germany’s DAX Index. Wirecard offers its customers electronic payment transaction solutions and risk management, as well as the issuing and processing of physical and virtual cards in addition to traditional banking services.
A founding member of the stock benchmark since its inception in 1988, Commerzbank will be removed effective Sept. 24, index provider Deutsche Boerse AG announced Wednesday. The country’s second-largest listed bank is down about 32 percent this year.
Commerzbank is only Germany’s 4th largest financial institution in terms of total assets as of 2017.
Both Commerzbank and Deutsche Bank has been pounded since the global financial crisis in terms of stock price and are shadows of their former selves.
Non-performing assets were relatively new to Commerzbank (in blue) while Deutsche Bank (in red) has a history of non-performing assets (NPA). At least Commerzbank has shed a large share of their NPA,
So, bye-bye traditional financial institution Commerzbank and hello to the new wave Fintech company Wirecard.