Commerzbank AG — Capital/Financing Update 2011

Dec 8, 2011

News Details

UK Regulatory | 8 December 2011 18:11

Commerzbank AG:

Commerzbank AG / Miscellaneous

08.12.2011 / 18:11

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Statement by Commerzbank on the publication issued by the
European Banking Authority (EBA) on December 8, 2011

As required by the European Council, 71 internationally operating European
banks are required to comply with a Core Tier 1 ratio of 9% by June 30,
2012, after accounting for the effects of a simulated partial default on
European sovereign bonds; this substantially exceeds the current regulatory
requirements. At present Commerzbank's Core Tier 1 ratio is 9.4% (as of
September 30, 2011).

With a view to the resolutions adopted by the EU, the EBA has now finally
determined the capital deductions provisionally stated by EBA on October
26, 2011. The final deduction specified for Commerzbank in EBA's scenarios
amounts to EUR 5.305 billion (provisional deduction: EUR 2.938 billion).
This final deduction, too, is accounted for virtually entirely by EBA's
default assumptions for European sovereign bonds in the portfolios of
Eurohypo. In contrast, the core business of Commerzbank is practically
unaffected.

The amount of the additional charge that exceeds the provisional deduction
from October 2011 results almost entirely from the further escalation of
the European state debt crisis. Thus, for example, the total deduction
originally set by the EBA for Italy, Greece and Spain has been increased by
some EUR 2 billion compared to the provisional EBA figure. In addition,
there were further impacts from the adjustment of the regulatory capital
under Basel 2.5 as per the end of the year which had not been taken into
consideration by the EBA to date, and a smaller exchange rate-related
increase in the risk-weighted assets in the third quarter of 2011.

The implementation of the immediate measures already announced at the
presentation of the third quarter results at the beginning of November 2011
is progressing well. With these measures the Bank should be able to reduce
its risk-weighted assets by as much as up to EUR 30 billion by June 30,
2012. This would consequently lower the need for additional capital by as
much as up to EUR 2.7 billion.

On December 5, 2011 Commerzbank made an offer to investors in selected
hybrid equity instruments (Trust Preferred Securities) to repurchase these
instruments against cash consideration. The objective of the measure, for
which a sum of as much as EUR 600 million is available, is - among other
things - a further increase in the Core Tier 1 ratio on the consolidated
accounts of the Bank.

Furthermore, Commerzbank has the possibility of strengthening its equity
capital by the sale of non-strategic assets, retained earnings and
accelerated cost management, for example. In line with the requirements of
the EBA, the issue of equity capital instruments is also an option.

'As of today and resulting from the new, tighter requirements of the EBA we
have to increase our Core Tier 1 ratio to considerably more than 10% by
June 30, 2012. Thus the EBA is going far beyond the tougher minimum ratios
of Basel III which are not applicable for another six years, i.e. from 2018
onwards only,' said Eric Strutz, CFO of Commerzbank. 'Two things are
important for us in this respect. Firstly: We are aware of our
responsibility for the supply of credit to the German economy and we will
continue to stand by our customers and particularly will continue to
support the Mittelstand. Secondly: We stand by our intention not to make
use of additional public funds.'

Please find further information on the publication of the EBA from December
8, 2011 at
https://www.commerzbank.de/en/hauptnavigation/aktionaere/aktuelles_2/Aktue
lles.html.

*****
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
more than 50 countries and serves more than 14 million private clients as
well as 1 million business and corporate clients worldwide. In 2010, it
posted gross revenues of EUR 12.7 billion with some 59,000 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.

End of UK-Regulatory 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
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt
(Prime Standard), Hamburg, Hannover, München, SIX,
Stuttgart; Terminbörse EUREX; London
Category Code: MSC
LSE Ticker: CZB
Sequence Number: 953
Time of Receipt: Dec 08, 2011 18:08:24

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149176 08.12.2011