26/06/2012
Commerzbank AG / Key word(s): Strategic Company Decision/Strategic
Company Decision
26.06.2012 / 20:14
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Commerzbank accelerates focus on core business
- Commercial Real Estate Financing and Ship Finance to be transferred to
the segment NCA and to be wound up while maximising value
- CommerzReal to be integrated into Private Customers segment
In view of the continuing uncertain situation on the financial markets, the
heightening of the sovereign debt crisis and the increasing regulatory
burdens, Commerzbank intends to accelerate the path it has already taken,
with its focus on customer-centric and profitable core business, the
minimisation of risks and a reduction in complexity. The Board of Managing
Directors has today, therefore, decided to wind up the business areas
Commercial Real Estate and Ship Finance in the course of time. In addition,
CommerzReal is to be integrated into the Core Bank segment Private
Customers. Therefore, the new Core Bank segment Real Estate and Ship
Finance (RES) will not be launched as had originally been planned.
'Against the background of the ongoing financial and sovereign debt crisis,
an end to which is not foreseeable, and of the uncertain regulatory
environment, we are subjecting all the business areas to a rigorous review
in the framework of our strategic planning process. The strategic objective
is that of consistently focusing Commerzbank on customer-centric and
sustainably profitable core business and further minimising risks and
capital lockup. In the course of this process we have as an initial move,
therefore, decided to reduce the business areas originally planned for the
new Real Estate and Ship Finance segment in the course of time or transfer
them to the Core Bank,' said the Chairman of the Board of Managing
Directors, Martin Blessing.
Commercial Real Estate and Ship Finance are to be transferred in full to
the new segment Non Core Assets (NCA). The essential reasons for this are
the high capital and the rising liquidity requirements under Basel 3, and
especially for long-term financing, as well as the strong cyclical
fluctuations which are to be expected in the results in the future. In
private and corporate customer business, Commerzbank will naturally
continue to offer real estate financing.
As already announced at the end of March, the Public Finance business of
Eurohypo is also to be organisationally transferred for winding up to the
NCA segment. As planned, the Commercial Real Estate and Public Finance
portfolios remain in the legal entity Eurohypo AG. Eurohypo will be renamed
'Hypothekenbank Frankfurt AG' probably as of August 31, 2012. Thus,
Commerzbank is meeting a requirement of the European Commission in relation
to the winding-up conditions for Eurohypo. The new name, which will also
apply to subsidiaries of Eurohypo, refers to a predecessor institute of
Eurohypo.
The CommerzReal business area will be integrated within the Core Bank into
the Private Customers segment so as to orient the business more closely to
the needs of customers in the future.
These changes will become effective as of August 9, 2012. Following the
decision to significantly expand the NCA segment, the responsibilities on
the Board of Managing Directors of Commerzbank will also be restructured as
of this date.
Commerzbank is currently subjecting all its business areas to a review in
the framework of the annual strategic planning process. The changes
announced today are the first consequence of this. All the results of this
process will be presented in the autumn.
The published targets and statements for the current business year remain
valid. An update will be provided with the publication of the half-year
results on August 9, 2012.
Press contact:
Armin Guhl +49 60 136 42764
Simon Steiner +49 69 136 46646
Nils Happich +49 69 136 44986
*****
About Commerzbank
Commerzbank is a leading bank for private and corporate customers in
Germany. With the segments Private Customers, Mittelstandsbank, Corporates
& Markets, Central & Eastern Europe as well as Asset Based Finance, the
Bank offers its customers an attractive product portfolio, and is a strong
partner for the export-oriented SME sector in Germany and worldwide. With a
future total of some 1,200 branches, Commerzbank has one of the densest
networks of branches among German private banks. It has around 60 sites in
52 countries and serves almost 15 million private clients as well as 1
million business and corporate clients worldwide. In 2011, it posted gross
revenues of almost EUR 10 billion with 58,160 employees.
*****
Disclaimer
This release contains statements concerning the expected future business of
Commerzbank, efficiency gains and expected synergies, expected growth
prospects and other opportunities for an increase in value of the company
as well as expected future net income per share, restructuring costs and
other financial developments and information. These forward-looking
statements are based on the management's current 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. Commerzbank has no obligation to periodically 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
End of Corporate News
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Language: English
Company: Commerzbank AG
Kaiserplatz
60261 Frankfurt am Main
Germany
Phone: +49 (069) 136 20
Fax: -
E-mail: ir@commerzbank.com
Internet: www.commerzbank.de
ISIN: DE0008032004
WKN: 803200
Indices: DAX, CDAX, HDAX, PRIMEALL
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX; London, SIX
End of News DGAP News-Service
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