REG-Commerzbank Aktiengesellschaft SREP capital requirements for Commerzbank unchanged for 2025 – distance to MDA threshold remains comfortable

COMMERZBANK AGAnnouncement

11/12/2024 12:45

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   Commerzbank Aktiengesellschaft (CZB)
   SREP capital requirements for Commerzbank unchanged for 2025 – distance to
   MDA threshold remains comfortable

   11-Dec-2024 / 13:34 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • Pillar 2 capital requirement (P2R) unchanged at 2.25%
     • Additional own funds requirement for leverage ratio (SREP P2R-LR)
       unchanged at 0.1%
     • Maximum Distributable Amount (MDA) threshold for Common Equity Tier 1
       pro forma at 10.31% of risk-weighted assets (RWA)
     • CEO Bettina Orlopp: “With a CET1 ratio of 14.82% as of September 2024,
       we are well above the MDA threshold. This provides us with a
       comfortable buffer to continue to implement the return of capital to
       our shareholders.”

   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 2025. The additional own funds
   requirement for Pillar 2 (P2R) remains unchanged at 2.25% of total
   capital, of which at least 1.27% must be covered with Common Equity Tier 1
   (CET1) capital. The SREP decision replaces the previous SREP decision with
   effect from 1 January 2025.

   As of 30 September 2024, the pro forma CET1 requirement for the
   Commerzbank on Group level amounts to 10.31% 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 0.66%, the sectoral systemic risk buffer of currently 0.1%, and
   an AT1 shortfall of 0.04% at that point in time.

   In addition, the requirement to maintain additional own funds for the
   leverage ratio (Pillar 2 requirement for the risk of excessive leverage –
   P2R-LR), which was introduced last year, remains unchanged at 0.1%. The
   resulting leverage ratio requirement of 3.1% is met by a leverage ratio of
   4.4% as of September 2024.

   “With a CET1 ratio of 14.82% as of September 2024, we are well above the
   MDA threshold. This provides us with a comfortable buffer to continue to
   implement the return of capital to our shareholders – and, as planned, to
   increase it in the coming years,” said Commerzbank CEO Bettina Orlopp. As
   part of its strategic plans until 2027, Commerzbank aims for a CET1 ratio
   of 13.5%.

    

   Press contact
   Svea Junge +49 69 9353-45691
   Silvana Herold +49 69 9353-45680

   Investors’ contact
   Ansgar Herkert +49 69 9353-47706
   Michael Klein +49 69 9353-47703

    

   About Commerzbank
   Commerzbank is the leading bank for the German Mittelstand and a strong
   partner for around 25,500 corporate client groups. In addition, it
   supports private and small-business customers in Germany with more than
   €400 billion assets under management. 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% 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, amongst others, 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.:  364564
   EQS News ID:   2049125


    
   End of Announcement EQS News Service

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