Commerzbank Announces Agreements with U.S. Authorities Regarding Sanctions and Money Laundering Violations

Commerzbank Announces Agreements with U.S. Authorities Regarding Sanctions and Money Laundering Violations


Commerzbank AG  / Key word(s): Miscellaneous

12.03.2015 17:41

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The issuer is solely responsible for the content of this announcement.


Commerzbank has reached settlements with the Department of Justice ("DoJ"),
the Treasury Department's Office of Foreign Assets Control, the New York
County District Attorney's Office, the Board of Governors of the Federal
Reserve ("the Federal Reserve") and New York's Department of Financial
Services ("NYDFS") regarding U.S. sanctions and New York State business
records violations that occurred between 2002 and 2008.

The Bank has also reached settlements with the DoJ, the Federal Reserve and
the NYDFS regarding violations arising from its failure between 2008 and
2013 to maintain adequate policies, procedures and practices for detecting
and reporting potential money laundering activities. The settlements
regarding sanctions and money laundering (AML) total USD 1,452 million (EUR
1,196 million).

Commerzbank built adequate reserves as discussions with the authorities
progressed.  On 12 February 2015, the Bank announced that a further
increase in legal provisions was possible and could be reflected in the
final annual financial statements for 2014. Further to the amount already
reserved, the Bank will book an additional one-off charge of EUR 338
million in Q4 2014 for these settlements, to be reflected in the final
annual financial statements for 2014.

The Bank's net result and operating result for 2014 will be adjusted to EUR
264 million (preliminarily reported net result EUR 602 million) and EUR 684
million (preliminarily reported operating result EUR 1,022 million),
respectively. Under the full application of Basel 3, Commerzbank's Common
Equity Tier 1 ratio (CET 1) stands at 9.3% as of the end of 2014, up from
9.0% at the end of December 2013. The final net result of EUR 282 million
in the individual financial statements of Commerzbank AG pursuant to the
German Commercial Code (HGB) for 2014 also takes into account the
settlements with the US authorities.

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 NCA 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

Commerzbank AG
Group Communications
Tel.: +49 69 136 - 22830

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Language:     English
Company:      Commerzbank AG
              60311 Frankfurt am Main
Phone:        +49 (069) 136 20
Fax:          -
ISIN:         DE000CBK1001
WKN:          CBK100
Listed:       Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
              Standard), Hamburg, Hanover, Munich, Stuttgart; Terminbörse
              EUREX; London, SIX
End of Announcement                             DGAP News-Service