Commerzbank strengthens Core Tier 1 capital and has already fulfilled 57 % of the EBA capital requirement by the end of 2011

Commerzbank strengthens Core Tier 1 capital and has already fulfilled 57 % of the EBA capital requirement by the end of 2011


Commerzbank AG  / Key word(s): Miscellaneous

19.01.2012 10:16

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Commerzbank strengthens Core Tier 1 capital and has already fulfilled
57 % of the EBA capital requirement by the end of 2011

At its meeting today the Board of Managing Directors of Commerzbank AG has
approved the EBA capital plan and has informed the Supervisory Board of
Commerzbank, on the basis of preliminary figures, about the progress
achieved in the implementation of the EBA measures.

With these measures and on the basis of the current planning, Commerzbank
has the potential to strengthen its Core Tier 1 capital or respectively
reduce the equivalence in risk-weighted assets by a total of approximately
EUR 6.3 billion by the record date June 30, 2012, relying on its own
strength. Thus the bank can fulfil the capital requirement of some EUR 5.3
billion as determined by the EBA.

The capital requirement in accordance with the EBA methodology could be
reduced by the end of 2011 from EUR 5.3 billion by EUR 3.0 billion thanks
to risk-weighted asset reduction (Core Tier 1 relief approximately EUR 1.6
billion), a reduction in regulatory capital deductions (some EUR 0.2
billion) and retention of earnings in the fourth quarter 2011
(approximately EUR 1.2 billion). As of year-end 2011 Commerzbank has thus
already fulfilled 57 % of the EBA capital requirement.

The mentioned IFRS profit after taxes for the fourth quarter does not
include additional potential valuation adjustments on the portfolio of
Greek sovereign bonds which had already been adjusted to 48 % of the
nominal value in previous quarters.

On the basis of the current business planning and subject to no further
deterioration in the macroeconomic environment, and in particular no
further escalation of the sovereign debt crisis, Commerzbank expects to
achieve further positive effects amounting to up to EUR 3.3 billion to meet
the EBA capital requirement by June 30, 2012 with the measures which have
already been initiated. The three essential elements in this package of
measures are a continuation of the RWA management (Core Tier 1 relief
approximately EUR 1.5 billion), the further reduction of regulatory capital
deductions (some EUR 0.35 billion), as well as the planned retention of
earnings to the amount of approximately EUR 1.2 billion. Included in this
are additional savings in non-personnel costs of around EUR 150 million in
the first six months of 2012. In addition, the bank plans to satisfy the
individual variable compensation entitlements for 2011 of most of its
non-pay-scale employees in Commerzbank AG shares. Depending upon the
participation of the employees, this can lead to an increase in the Core
Tier 1 capital of approximately EUR 250 million.

Following the conclusion of all the measures, as of June 30, 2012
Commerzbank plans to have a Core Tier 1 ratio of more than 11 %.

In addition to the measures already implemented and those planned through
to June 2012, Commerzbank still has other options to further strengthen its
Core Tier 1 capital if necessary. In accordance with the requirements of
the EBA, options could be a further optimisation of the capital structure
and the issue of equity capital instruments.


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.

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

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Language:     English
Company:      Commerzbank AG
              60261 Frankfurt am Main
Phone:        +49 (069) 136 20
Fax:          -
ISIN:         DE0008032004
WKN:          803200
Listed:       Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
              Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse
              EUREX; London, SIX
End of Announcement                             DGAP News-Service