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CZB Commerzbank Ord

6.7025
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Commerzbank Ord LSE:CZB London Ordinary Share DE000CBK1001 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 6.7025 6.60 6.805 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

DGAP-Regulatory: Commerzbank: Board of Managing Directors presents strategy and financial objectives 2020 to the Supervisory ...

29/09/2016 9:39am

UK Regulatory


 
 Commerzbank Aktiengesellschaft / Miscellaneous - Urgent Priority 
Commerzbank: Board of Managing Directors presents strategy and financial 
objectives 2020 to the Supervisory Board 
 
29-Sep-2016 / 10:39 CET/CEST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
In response to current market rumours, the Board of Managing Directors of 
Commerzbank AG confirms that it has presented Commerzbank's draft strategic 
and financial objectives until 2020 to the Supervisory Board for 
consideration. No decision has yet been taken with regard to the 
implementation of these objectives. The Board of Managing Directors will 
decide tomorrow on the strategic objectives after discussions with the 
Supervisory Board. The objectives presented are as follows: 
 
By the end of 2020 Commerzbank will have sustainably increased its 
profitability. As part of the 'Commerzbank 4.0' strategy, it will 
concentrate on its core businesses, digitalise 80% of relevant processes, 
and thereby achieve significant efficiency gains. Its business will be 
focused in two customer segments, 'Private and Small Business Customers' and 
'Corporate Clients'. The Mittelstandsbank and Corporates & Markets segments 
will be merged and trading activities in investment banking scaled back. 
This will reduce earnings volatility and regulatory risk and will free up 
capital to be invested in core client businesses. 
 
In the context of the decision of the new strategy, goodwill and intangible 
assets of both Corporates & Markets and Mittelstandsbank will be subjected 
to an impairment test. This means that most probably around 700 million 
euros would be written off in the third quarter of 2016. Consequently, the 
net result would be negative in the third quarter. The write-offs do not 
affect the Common Equity Tier 1 (CET 1) ratio. In terms of Operating profit, 
Commerzbank is expecting revenues to be approximately the same as in the 
second quarter. Loan loss provisions will be considerably higher than in the 
first two quarters due to ongoing weakness in the shipping markets. Despite 
the goodwill write-offs, Commerzbank is expecting a small net profit for 
2016 as a whole. The CET 1 ratio after full application of Basel 3 will be 
higher in the third quarter of 2016 than in the previous quarter. The Bank 
is expecting its Common Equity Tier 1 ratio to stand at nearly 12% at the 
end of the year, provided no significant market distortions occur. 
 
Commerzbank is aiming for a net return on tangible equity (RoTE) of at least 
6% by the end of 2020. This target is based on the expectation that the 
interest rate environment will remain challenging. Should the interest rate 
environment improve, a net return on tangible equity of at least 8% will be 
achievable. Commerzbank is expecting revenues for 2020 to total between 9.8 
and 10.3 billion euros. The cost base is to be reduced to 6.5 billion euros, 
taking the cost/income ratio to below 66%. In a normalised interest rate 
environment, revenues could rise to over 11 billion euros and the 
cost/income ratio could fall to around 60%. 
 
The Common Equity Tier 1 (CET 1) ratio, after full application of Basel 3, 
is expected to stay at around 12% and will be above 12% in 2018 taking into 
account currently foreseeable regulatory developments. For 2020 the Bank 
expects a ratio of above 13%. 
 
The focus on the core business, with some business activities being 
discontinued, and the digitalisation and automation of workflows will lead 
to staff reductions amounting to around 9,600 full-time positions. The Bank 
will shortly begin preparatory discussions with the relevant employee 
representative committees. At the same time, around 2,300 new jobs will be 
created in areas of business growth. Hence the net number of jobs shed will 
amount to around 7,300 full-time positions. 
 
To cover its restructuring costs in the region of 1.1 billion euros, 
Commerzbank will cease dividend payments for the time being and will retain 
its full earnings. 
 
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. 
 
Contact: 
Commerzbank AG 
Group Communications 
Tel.: +49 69 136 - 22830 
mediarelations@commerzbank.com 
 
The EQS Distribution Services include Regulatory Announcements, 
Financial/Corporate News and Press Releases. 
Archive at www.dgap.de/ukreg 
Language:        English 
Company:         Commerzbank Aktiengesellschaft 
                 Kaiserstraße 16 
                 60311 Frankfurt am Main 
                 Germany 
Phone:           +49 (069) 136 20 
Fax:             - 
E-mail:          pressestelle@commerzbank.com 
Internet:        www.commerzbank.de 
ISIN:            DE000CBK1001 
WKN:             CBK100 
Indices:         DAX, CDAX, HDAX, PRIMEALL 
Listed:          Regulated Market in Berlin, Dusseldorf, Frankfurt 
                 (Prime Standard), Hamburg, Hanover, Munich, 
                 Stuttgart; Regulated Unofficial Market in 
                 Tradegate Exchange; London, SIX 
Category Code:   MSCU 
TIDM:            CZB 
Sequence Number: 3448 
Time of Receipt: 29-Sep-2016 / 10:02 CET/CEST 
 
End of Announcement EQS News Service 
507105 29-Sep-2016 
 
 

(END) Dow Jones Newswires

September 29, 2016 04:39 ET (08:39 GMT)

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