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April 08, 2016

Restatement according to IFRS 8 to reflect the realignment of the Group’s segmental structure and capital steering approach as of January 1, 2016

As announced on Commerzbank’s Q4 and full year 2015 financial disclosure on February 12, 2016, the segmental structure and capital steering approach of the Group has been realigned with effect of the first quarter of 2016.

First, Commerzbank has implemented a new segmental structure. The Bank has reduced the portfolios in the Non-Core Assets segment (NCA) since the third quarter of 2012 from EUR 160 billion to EUR 63 billion at the end of 2015. As a result of this successful run-down, the Bank has decided to dissolve NCA and transfer Commercial Real Estate, Ship Finance and Public Finance portfolios of higher quality and lower risk to the segments Private Clients, Mittelstandsbank and to the Group Treasury unit in the segment Others & Consolidation. The remaining exposure of approximately EUR 18 billion will be bundled in the new segment Asset & Capital Recovery Unit (ACR).

Second, the Bank has realigned the segment Others & Consolidation and transferred certain P&L items to the operating segments. Undisputable Group items, for example expenses to comply with company law and purchase price accounting effects resulting from the take-over of Dresdner Bank, will remain in the corporate center.

Third, the Bank has altered its capital steering and capital allocation approach and adjusted it to Basel 3 fully-loaded regulatory capital. As a result, divisional returns in the segments are calculated on 11% of Basel 3 fully phased-in risk weighted assets. The non-core segment ACR will be underlaid with 15% of Basel 3 fully phased-in risk weighted assets.

For comparison purposes only, we have adjusted our income statement for the full years 2014 and 2015 and all quarters of the year 2015 to take into consideration the above-mentioned changes to be applied from January 1, 2016. The adjustments can be found in the attached documents:
XLSX, 151 kB
PDF, 228 kB

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About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets, and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank, it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of EUR9.8 billion with 51,300 employees.

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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, particularly to reduce its NCA portfolio, the reliability of its risk management policies, procedures and methods, risks arising as a result of regulatory change and other risks. Forward-looking statements are therefore valid 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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