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July 25, 2016

Commerzbank: Preliminary CET 1 ratio per end of June 2016 at 11.5% – group net profit for the second quarter 2016 in line with consensus

On the basis of preliminary figures Commerzbank posted an Operating profit of €342 million (Q2 2015: €419 million). Net profit attributable to Commerzbank shareholders stood at €209 million in the second quarter 2016 (Q2 2015: €307 million). Both are in line with consensus.

The Common Equity Tier 1 ratio (CET 1) under full application of Basel 3 stood at 11.5% at the end of June 2016 (end of March 2016: 12.0%; end of June 2015: 10.5%) based on preliminary figures. This ratio includes a dividend accrual of 10 cents per share for the first half of 2016.

The change in the CET1 ratio mainly results from the following non-operating valuation and methodology effects:

  • Higher risk-weighted assets (RWA) in particular for operational risks due to the consideration of new external events factored in by external databases representing industrywide damage claims of banks.
  • Higher pension liabilities due to lower discount factors (reduced from 2% to 1.7%) as well as higher capital deductions from revaluation reserves in particular driven by higher credit spreads for Italian sovereign debt.

As already stated in the past, the capital ratio can be volatile in the current market environment. Commerzbank’s ambition remains to keep its capital ratio under full application of Basel 3 above SREP-requirements.

Figures shown in this release are preliminary. Commerzbank will publish its final figures for the second quarter 2016 on 2 August 2016.

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This ad hoc release was published on July 25, 2016 at 9:37 p.m.

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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 ACR 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 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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