REG-Commerzbank Aktiengesellschaft Commerzbank still expects net profit of more than €1 billion in 2022 despite additional provisions at mBank

COMMERZBANK AGAnnouncement

27/09/2022 17:15

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   Commerzbank Aktiengesellschaft (CZB)
   Commerzbank still expects net profit of more than €1 billion in 2022
   despite additional provisions at mBank

   27-Sep-2022 / 18:07 CET/CEST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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     • Polish subsidiary books additional provisions for Swiss franc
       portfolio of the equivalent of €490 million
     • Operating result of Commerzbank in Q3 to be impacted by corresponding
       amount
     • Bettina Orlopp: “Despite the new burden in Poland, we are maintaining
       our earnings target for the full year 2022.”

    Commerzbank continues to expect a net result of more than €1 billion for
   the financial year 2022, despite a further revenue burden at its Polish
   subsidiary mBank. The outlook remains under the assumption that the
   economic consequences of the geopolitical developments do not deteriorate
   significantly and the uncertainties around energy supply do not require
   material additional provisions for potential future credit losses.

   mBank had previously announced that it has booked further additional
   provisions for its Swiss franc portfolio of PLN2.336 billion
   (approximately €490 million) as a result of the announced model review.
   The total provisions for credit agreements indexed on foreign currencies
   now amount to around €1.43 billion. The additional provisions will have a
   corresponding negative impact on Commerzbank's results in the third
   quarter which will be booked as negative revenues in “Other net income”.
   mBank also announced a new settlement programme to reach individual
   agreements with customers.

   The new burden adds to the negative revenues which were already announced
   for the third quarter in July this year due to possible deferrals of
   interest and repayment of private real estate financing (“payment
   holidays”) introduced in Poland by the legislation. Nevertheless,
   Commerzbank expects a positive operating result for the third quarter for
   the Group as long as the uncertainties about energy supply do not require
   a further significant risk provisioning.

   “Despite the new burden in Poland, we are maintaining our earnings target
   for the full year 2022 in view of the strong overall revenue development,”
   said Bettina Orlopp, Chief Financial Officer of Commerzbank. “With the
   additional provision, mBank has further scope for settlements in its Swiss
   franc portfolio.”

   Press contact

   Erik Nebel  +49 69 136-44986

   Contact for investors

   Jutta Madjlessi  +49 69 136-28696

    

   About Commerzbank

   Commerzbank is the leading bank for the German Mittelstand and a strong
   partner for around 28,000 corporate client groups and around 11 million
   private and small-business customers in Germany. The Bank’s two Business
   Segments – Private and Small-Business Customers and Corporate Clients –
   offer a comprehensive portfolio of financial services. Commerzbank
   transacts approximately 30 per cent of Germany’s foreign trade and is
   present internationally in almost 40 countries in the corporate clients’
   business. The Bank focusses on the German Mittelstand, large corporates,
   and institutional clients. As part of its international business,
   Commerzbank supports clients with German connectivity and companies
   operating in selected future-oriented industries. Following the
   integration of Comdirect, private and small-business customers benefit
   from the services offered by one of Germany’s most advanced online banks
   combined with personal advisory support on site. Its Polish subsidiary
   mBank S.A. is an innovative digital bank that serves approximately 5.6
   million private and corporate customers, predominantly in Poland, but also
   in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross
   revenues of some €8.5 billion with around 46,500 employees.

    

   Disclaimer

   This release contains forward-looking statements. Forward-looking
   statements are statements that are not historical facts. In this release,
   these statements concern inter alia the expected future business
   of Commerzbank, efficiency gains and expected synergies, expected growth
   prospects and other opportunities for an increase in value of Commerzbank
   as well as expected future financial results, restructuring costs and
   other financial developments and information. These forward-looking
   statements are based on the management’s current plans, expectations,
   estimates and projections. They are subject to a number of assumptions and
   involve known and unknown risks, uncertainties and other factors that may
   cause actual results and developments to differ materially from any future
   results and developments expressed or implied by such forward-looking
   statements. Such factors include the conditions in the financial markets
   in Germany, in Europe, in the USA and other regions from which Commerzbank
   derives a substantial portion of its revenues and in which Commerzbank
   holds a substantial portion of its assets, the development of asset prices
   and market volatility, especially due to the ongoing European debt crisis,
   potential defaults of borrowers or trading counterparties, the
   implementation of its strategic initiatives to improve its business model,
   the reliability of its risk management policies, procedures and methods,
   risks arising as a result of regulatory change and other risks.
   Forward-looking statements therefore speak only as of the date they are
   made. Commerzbank has no obligation to update or release any revisions to
   the forward-looking statements contained in this release to reflect events
   or circumstances after the date of this release.

    

    

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   ISIN:          DE000CBK1001
   Category Code: MSCU
   TIDM:          CZB
   LEI Code:      851WYGNLUQLFZBSYGB56
   Sequence No.:  190831
   EQS News ID:   1451509


    
   End of Announcement EQS News Service

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