ECB determines SREP P2R capital requirement for Commerzbank for 2024

In the annual Supervisory Review and Evaluation Process (SREP) the European Central Bank has determined the bank-specific capital requirements for the Commerzbank Group in 2024. The additional own funds requirement for Pillar 2 (P2R) slightly increases by 25 bp to 2.25% of total capital, of which at least 1.27% must be covered with Common Equity Tier 1 (CET1) capital. The SREP decision replaces the previous SREP decision with effect from 1 January 2024.

As of 30 September 2023, the pro forma CET1 requirement for Commerzbank Group amounts to 10.27% of risk weighted assets (MDA threshold) when applying the new SREP decision. The requirement consists of the CET1 minimum requirement of 4.5%, the P2R of 1.27%, the capital conservation buffer of 2.5%, the capital buffer for otherwise systemically important institutions of 1.25%, the countercyclical capital buffer of currently 0.63%, the sectoral systemic risk buffer of currently 0.1% and an AT1 shortfall of currently 0.02%.

With a CET1 ratio of 14.6% as of September 2023 Commerzbank is well above the MDA threshold. The requirements are reflected in Commerzbank’s strategic planning as well as in the target equity ratio of 13.5%.

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.