REG-Commerzbank Aktiengesellschaft Commerzbank’s Supervisory Board and Executive Board confirm strategy

COMMERZBANK AGAnnouncement

26/09/2024 08:15

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   Commerzbank Aktiengesellschaft (CZB)
   Commerzbank’s Supervisory Board and Executive Board confirm strategy

   26-Sep-2024 / 09:03 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • Chairman of the Supervisory Board Jens Weidmann: Commerzbank has
       considerable potential for growth and appreciation
     • The Board of Management expects faster and stronger improvements in
       profitability: Return on equity is expected to rise to more than 12%
       by 2027
     • Increased and accelerated capital return to shareholders planned

   During the annual strategy dialog with the Board of Managing Directors,
   the Supervisory Board of Commerzbank unanimously confirmed its support for
   its strategy, which aims to achieve a reliable and sustainable increase in
   value. The strategic priority remains profitable growth, while maintaining
   strict cost discipline and customer orientation. The implementation of
   Strategy until 2027 is progressing rapidly and on schedule, and
   Commerzbank is reliably delivering the announced progress.

   In addition to the original plans, the Bank’s profitability is to be
   improved even more in the coming years, primarily by further increasing
   its earnings. As a result, the Board of Managing Directors expects
   Commerzbank to increase its Return on Tangible Equity (RoTE) to more than
   12% by 2027 and thereby stronger than previously planned. In addition, the
   return of capital to shareholders is to be accelerated and significantly
   increased: Commerzbank expects its net profit to rise significantly to
   over €3 billion in 2027 and aims for payout ratios of more than 90% for
   the years 2025 to 2027, but not more than the net result after deduction
   of AT1 coupon payments. This is subject to the approval of the ECB and the
   German Finance Agency.

   The Chairman of the Supervisory Board of Commerzbank AG, Jens Weidmann,
   said: “We are very satisfied with the implementation and ongoing further
   development of our Strategy until 2027, which continues to be supported
   with vigor by the Supervisory Board. Commerzbank is continuously expanding
   its independent position as a strong pillar in the German banking market
   and a reliable partner to the domestic economy. As ’Bank for Germany’, we
   firmly believe that it has considerable growth and appreciation
   potential.”

   Bettina Orlopp, future CEO, said: “We are continuously developing our
   robust growth history based on very solid assumptions and are sharpening
   our financial targets. By realizing additional earnings potential, for
   example in corporate clients business, asset management and at our Polish
   subsidiary mBank, as well as implementing further efficiency gains, we
   will improve our profitability more strongly than originally planned.
   Despite conservative planning, we expect to earn our cost of capital
   faster and return even more capital to our shareholders. In this way, as
   in previous years, we will continue to create value for all our
   shareholders in the future.”

    

   Note to editors:

     • Registration for the audio webcast for today’s fireside chat with
       Bettina Orlopp at the BofA Annual Financials CEO Conference at 9.45
       a.m. (CEST) via this  1 link.
     • The related presentation can be found  2 here.

    

   Press contact
   Kathrin Jones:  +49 151 70 66 22 95
   Svea Junge:  +49 160 92 66 65 08

    

   About Commerzbank
   Commerzbank is the leading bank for the German Mittelstand and a strong
   partner for around 25,500 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% 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.:  349126
   EQS News ID:   1995933


    
   End of Announcement EQS News Service

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