Commerzbank plans to axe 3,900 mostly local jobs to help it deliver more ambitious profit targets as part of its strategy to fend off UniCredit's advances for a tie-up between the German and Italian lenders,

The lender plans to lay off around 9% of its workforce in a bid to boost returns and convince investors of its standalone prospects.

The lender plans to execute the job reductions by primarily relying on demographic changes and natural workforce fluctuations.