Commerzbank CET 1 Capital Ratio Increased to 11.8% 

Commerzbank improved its operating profit in the third quarter compared to the previous quarter, and increased its Common Equity Tier 1 ratio to 11.8%. The operating profit for this period stood at €429 million versus €351 million in the second quarter (Q3 2015: €452 million). The figure for the first nine months of 2016 was €1,062 million (first nine months of 2015: €1,558 million). Revenues before loan loss provisions were €2,437 million in the third quarter (Q3 2015: €2,317 million) and €7,000 million in the first nine months (first nine months of 2015: €7,555 million). Loan loss provisions increased to €610 million in the first nine months of 2016 (first nine months of 2015: €584 million). This was due to the fact that, as expected, loan loss provisions were considerably higher, at €275 million, in the third quarter of 2016 than in the same quarter of last year (Q3 2015: €146 million) on account of the further deterioration in the shipping markets. Apart from that, loan loss provisions remain low, reflecting the Bank’s healthy risk profile. Its good risk profile is also evident from its non-performing loan ratio of just 1.7%, which is very low compared to its European peers. Operating expenses were down slightly year-on-year at €5,328 million for the first nine months of 2016 (first nine months of 2015: €5,413 million). The Bank’s ongoing efficiency measures more than compensated for strategic investments in digitalisation, regulatory, and compliance enhancements as well as the new Polish banking tax. Operating expenses amounted to €1,733 million in the third quarter of 2016 (Q3 2015: €1,719 million). The pre-tax profit, taking into account an impairment on goodwill and other intangible assets of €627 million and restructuring costs of €97 million, came in at €338 million for the first nine months of 2016. So after deduction of taxes of €161 million and minority interests of €81 million, Commerzbank posted a net profit of €96 million for the first nine months of 2016 (first nine months of 2015: €891 million). The net result for the third quarter of 2016 came out at minus €288 million (Q3 2015: €235 million), due mainly to the aforementioned impairment on goodwill and other intangible assets, which was already announced at the time of the unveiling of the new Commerzbank strategy.

“Commerzbank has a strong market position in corporate banking. We have seen further growth in retail banking and at our Polish subsidiary mBank. These are good prerequisites for the implementation of our Commerzbank 4.0 strategy, which will enable us to sustainably increase our profitability. We are pursuing our growth targets ambitiously, consistently, and forcefully,” said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank.

CET 1 ratio of 11.8%

The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 stood at 11.8% at the end of September 2016 (end of June 2016: 11.5%; end of September 2015: 10.8%). The improvement in the CET 1 ratio is attributable in particular to a reduction in risk-weighted assets (RWA). RWA with full application of Basel 3 were reduced by approximately €4 billion, through active risk management, to €195 billion as of 30 September 2016 (end of June 2016: €198 billion). The total assets in the Group amounted to €513 billion as of the end of September 2016 (end of June 2016: €533 billion). The leverage ratio stood at 4.5% at the end of September 2016 (end of June 2016: 4.4%).

“We have reconfirmed our very good risk profile and increased our Common Equity Tier 1 ratio to 11.8 percent. It should rise to around 12 percent by the end of the year,” said Stephan Engels, Chief Financial Officer of Commerzbank.