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November 07, 2012

Commerzbank publishes strategic and financial goals until 2016

In the coming years Commerzbank will adapt its business model to the new framework conditions in the financial sector and will concentrate on focused growth. In the framework of its strategic agenda, through to 2016 the Bank is investing more than EUR 2.0 billion in the earnings power of its core business in the segments Private Customers, Mittelstandsbank, Corporates & Markets, and Central & Eastern Europe, while, thanks to additional efficiency measures, maintaining its costs at a stable level and further optimising its capital base. Thus in 2016 the Core Bank is to achieve a return on equity after taxes (RoE) of more than 10%, with the cost-income ratio (CIR) being reduced to around 60%. Taking into account Basel 3 (phase-in), the Core Tier 1 ratio of the Group is always to be substantially higher than 9% until the end of 2016. Above all, the Private Customers business is to be strategically repositioned. Here Commerzbank will invest some EUR 1.0 billion through to 2016. The portfolios in the Non-Core Assets (NCA) segment are to be reduced until 2016 by more than 40%, essentially without any sales and while protecting their value. The payment of dividends for the 2012 and 2013 business years is unlikely from the current stance.

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Disclaimer

This release contains statements concerning the expected future business of Commerzbank, efficiency gains and expected synergies, expected growth prospects and other opportunities for an increase in value of the company as well as expected future net income per share, restructuring costs and other financial developments and information. These forward-looking statements are based on the management's current 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. Commerzbank has no obligation to periodically 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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