REG-Commerzbank Aktiengesellschaft SREP capital requirements for Commerzbank determined for 2024 – distance to MDA threshold remains comfortable

COMMERZBANK AGAnnouncement

08/12/2023 18:45

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   Commerzbank Aktiengesellschaft (CZB)
   SREP capital requirements for Commerzbank determined for 2024 – distance
   to MDA threshold remains comfortable

   08-Dec-2023 / 19:32 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • Pillar 2 capital requirement (P2R) set to 2.25%
     • Maximum Distributable Amount (MDA) threshold for Common Equity Tier 1
       pro forma at 10.27% of RWA
     • Additional own funds requirement for leverage ratio (SREP P2R-LR) set
       at 0.1% for the first time
     • CFO Bettina Orlopp: "The requirements are fully reflected in our
       strategic planning and capital return policy."

    In the annual Supervisory Review and Evaluation Process (SREP) the
   European Central Bank has determined the bank-specific capital
   requirements for the Commerzbank Group in 2024. The additional own funds
   requirement for Pillar 2 (P2R) slightly increases by 25 bp to 2.25% of
   total capital, of which at least 1.27% must be covered with Common Equity
   Tier 1 (CET1) capital. Currently, this requirement stands at 1.13% CET1.
   The SREP decision replaces the previous SREP decision with effect from 1
   January 2024.

   As of 30 September 2023, the pro forma CET1 requirement for Commerzbank on
   group level amounts to 10.27% of risk weighted assets (MDA threshold) when
   applying the new SREP decision. The requirement consists of the CET1
   minimum requirement of 4.5%, the P2R of 1.27%, the capital conservation
   buffer of 2.5%, the capital buffer for otherwise systemically important
   institutions of 1.25%, the countercyclical capital buffer of currently
   0.63%, the sectoral systemic risk buffer of currently 0.1% and an AT1
   shortfall of currently 0.02%.

   "The higher requirements are fully reflected in our strategic planning and
   capital return policy. With a CET1 ratio of 14.6% as of September 2023, we
   are well above the MDA threshold. As a result, we continue to have a
   comfortable leeway to significantly increase the return of capital to our
   shareholders in the coming years as planned", said CFO Bettina Orlopp. As
   part of its recently published strategic plans until 2027, Commerzbank
   aims für a CET1 target of 13.5 %.

   In addition, for banks subject to the Single Supervisory Mechanism of
   European Banking Supervision (SSM), the ECB determines a requirement to
   maintain additional own funds for the leverage ratio (Pillar 2 requirement
   for the risk of excessive leverage – P2R-LR). For Commerzbank this
   requirement was set at 0.1% for the first time. The resulting leverage
   ratio requirement of 3.1% is met by a leverage ratio of 4.9% as of
   September 2023.

    

   Press contact
   Kathrin Jones  +49 69 136-27870
   Svea Junge  +49 69 136-28050
   Erik Nebel  +49 69 136-44986

   Contact for Investors
   Ansgar Herkert  +49 69 9353-47706
   Michael Klein  +49 69 93534-7703

   About Commerzbank

   Commerzbank is the leading bank for the German Mittelstand and a strong
   partner for around 26,000 corporate client groups and almost 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 more than 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 a business relationship to
   Germany, Austria, or Switzerland and companies operating in selected
   future-oriented industries. In the Private and Small-Business Customers
   segment, the Bank is at the side of its customers with its brands
   Commerzbank and comdirect: online and mobile, in the advisory centre, and
   personally in its branches. Its Polish subsidiary mBank S.A. is an
   innovative digital bank that serves approximately 5.7 million private and
   corporate customers, predominantly in Poland, as well as in the Czech
   Republic and Slovakia.

   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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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          DE000CBK1001
   Category Code: MSCU
   TIDM:          CZB
   LEI Code:      851WYGNLUQLFZBSYGB56
   Sequence No.:  290959
   EQS News ID:   1793425


    
   End of Announcement EQS News Service

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