Dow Jones received a payment from EQS/DGAP to publish this press release.
Commerzbank Aktiengesellschaft (CZB)
Commerzbank with sound result in EBA stress test
02-Nov-2018 / 18:04 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
*- CET 1 ratio of 9.9% in the adverse scenario (2016: 7.4%) - stress effect
decreases to 3.4 percentage points (2016: 4.7 percentage points) thanks to
systematic reduction of risks*
*- Chief Risk Officer Chromik: 'We have markedly improved our result in the
stress test despite the even more challenging macroeconomic scenario. This
is further proof of Commerzbank's healthy risk profile and high resilience
to stress.'*
Commerzbank markedly improved its result in this year's European Banking
Authority (EBA) stress test. In the so-called adverse stress test scenario,
Commerzbank's Common Equity Tier 1 (CET 1) ratio stood at 9.9% in 2020, at
the end of the stress test horizon. This is 2.5 percentage points above the
previous test result in 2016. Overall, the adverse stress effect lowered the
Bank's CET 1 ratio of 13.3% (Basel III fully phased-in with application of
the new IFRS 9 accounting rules at the turn of the year 2017/2018) by 3.4
percentage points. In 2016, the ratio had decreased by 4.7 percentage points
under the adverse stress scenario.
'Our systematic reduction of risks over the last few years is paying off',
said Marcus Chromik, Chief Risk Officer of Commerzbank. 'We have
significantly improved our result in the stress test despite the even more
challenging macroeconomic scenario. This is further proof of Commerzbank's
healthy risk profile and high resilience to stress.'
Since the EBA stress test in 2016, Commerzbank has undertaken a
value-preserving reduction of its non-strategic portfolios and cut its
Risk-weighted Assets (RWA) by roughly 29 billion euros. Its CET 1 ratio
increased from 12.1% to 13.3% (considering the counter-effects of IFRS 9 at
the turn of the year 2017/2018).
The 2018 stress test scenario was based on even more challenging
macroeconomic conditions. Among other things, the test simulated an economic
downturn of a cumulative -3.3% over the three-year period to 2020 for
Germany (2016: -1.4%).
The stress test assumed a static balance sheet based on the IFRS 9 opening
balance sheet for 2018, and therefore did not take account of any current or
future business strategies or management initiatives. It is also not a
forecast of Commerzbank's profits. The results of the stress test feed into
the Supervisory Review and Evaluation Process (SREP).
Further information on the EBA's publication of 2 November 2018 can be found
at
https://www.commerzbank.de/en/hauptnavigation/aktionaere/aktuelles_2/stresst
est2018.html [1].
*Overview of stress test results*
(CET 1 ratios Basel III fully phased-in)
*Starting point* *Baseline scenario* *Adverse scenario*
2018 13.3% 14.4% 9.9%
2016 12.0% 13.1% 7.4%
2014 9.0% 10.6% 6.9%
*****
*Press contact*
Nils Happich +49 69 136-80529
Erik Nebel +49 69 136-44986
Maurice Farrouh +49 69 136-21947
*****
About Commerzbank
Commerzbank is a leading international commercial bank with branches and
offices in almost 50 countries. In the two business segments Private and
Small Business Customers and Corporate Clients, the Bank offers a
comprehensive portfolio of financial services which is precisely aligned to
its clients' needs. Commerzbank finances approximately 30% of Germany's
foreign trade and is the leading finance provider for corporate clients in
Germany. Due to its in-depth sector know-how in the German economy, the Bank
is a leading provider of capital market products. Its subsidiaries Comdirect
in Germany and mBank in Poland are two of the world's most innovative online
banks. With approximately 1,000 branches, Commerzbank has one of the densest
branch networks among German private banks. In total, Commerzbank serves
more than 18 million private and small business customers, as well as more
than 60,000 corporate clients, multinationals, financial service providers,
and institutional clients. The Bank, which was founded in 1870, is
represented at all the world's major stock exchanges. In 2017, it generated
gross revenues of EUR9.1 billion with approximately 49,300 employees.
*****
*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.
ISIN: DE000CBK1001
Category Code: MSCU
TIDM: CZB
LEI Code: 851WYGNLUQLFZBSYGB56
Sequence No.: 6434
EQS News ID: 740895
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=4aff0dfe15baac0f243731adac1e12d4&application_id=740895&site_id=vwd&application_name=news
(END) Dow Jones Newswires
November 02, 2018 13:05 ET (17:05 GMT)
