Additional provisions for CHF loan portfolio at mBank of €342m – Commerzbank still aiming for a net profit in 2023 well above that of 2022

mBank in Poland expects to additionally provision PLN 1,513 million (appr. €342 million) for its CHF loan portfolio in Q2.

Commerzbank’s second quarter operating result will be burdened by a corresponding amount which will be booked as negative revenues in “Other net income”. The additional provision results from an adjustment of the provisioning models mainly as consequence of a ruling of the Court of Justice of the European Union (ECJ) regarding foreign currency loans of an mBank competitor.

Despite this burden, Commerzbank still aims for a net result in 2023 well above that of 2022. The outlook depends on the further development of mBank’s Swiss franc mortgages and is based on the assumption of a mild recession in Germany.

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.