REG-Commerzbank Aktiengesellschaft SREP capital requirements for Commerzbank remain unchanged for 2023

COMMERZBANK AGAnnouncement

22/12/2022 08:30

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   Commerzbank Aktiengesellschaft (CZB)
   SREP capital requirements for Commerzbank remain unchanged for 2023

   22-Dec-2022 / 09:19 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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     • Minimum regulatory requirement for CET1 capital pro forma at 9.44% of
       RWA
     • MDA threshold of around 10.1% expected in Q1 2023 due to industry wide
       increase of counter-cyclical capital buffers and activation of
       sectoral systemic risk buffer
     • Bettina Orlopp: "With a 13.8% CET-1 rate as of 30 September 2022, we
       have a comfortable buffer to the MDA threshold."

    
   In the annual Supervisory Review and Evaluation Process (SREP) the
   European Central Bank has confirmed that the bank-specific capital
   requirements for the Commerzbank Group remain unchanged for 2023. The
   additional own funds requirement for Pillar 2 (P2R) still stands at 2% of
   total capital, thereof at least 1.125% have to be covered with Common
   Equity Tier 1 (CET1) capital. The SREP decision replaces the previous SREP
   decision with effect from 1 January 2023.

    

   As of 30 September 2022, the pro forma CET1 requirement for Commerzbank on
   group level stands unchanged at 9.44% 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 1.125%, the capital
   conservation buffer of 2.5%, the unchanged capital buffer of 1.25% for
   Otherwise Systemically Important Institutions, the countercyclical capital
   buffer of currently 0.04%, and an AT1 shortfall of currently 0,03%.

    

   Commerzbank expects the MDA threshold to rise to presumably around 10,1%
   in the first quarter of 2023 due to the industry wide increase of
   countercyclical capital buffers and the activation of the sectoral
   systemic risk buffer (sSyRB) in Germany. An additional Pillar 2
   requirement for the risk of excessive leverage (P2R-LR) has not been set
   for the Commerzbank Group.

    

   “With a CET-1 ratio of 13.8% as of 30 September 2022, we have a
   comfortable buffer to the MDA threshold which gives us sufficient leeway
   for the planned pay-out ratio of 30% of the net profit after AT1 coupon
   payments," said Commerzbank’s Chief Financial Officer Bettina Orlopp.

                                        

   Press contact

   Erik Nebel +49 69 136-44986 

   Contact for investors
   Jutta Madjlessi +49 69 136-28696
   Michael Klein +49 69 136-24522

                                        

   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. 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. In 2021, Commerzbank generated
   gross revenues of some €8.5 billion with around 46,500 employees.

    

   Disclaimer and Forward-Looking Statement

   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: MSCH
   TIDM:          CZB
   LEI Code:      851WYGNLUQLFZBSYGB56
   Sequence No.:  210558
   EQS News ID:   1519691


    
   End of Announcement EQS News Service

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