The final deduction specified for Commerzbank in European Banking Authority's (EBA) scenarios amounts to EUR 5.305 billion


08.12.2011 18:06

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The final deduction specified for Commerzbank in European Banking

Authority's (EBA) scenarios amounts to EUR 5.305 billion

 

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 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.

 

Contact:

Commerzbank AG

Group Communications

Tel.: +49 69 136 - 22830

mediarelations@commerzbank.com

 

 

08.12.2011 DGAP's Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

 

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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

Indices:      DAX, CDAX, HDAX, PRIMEALL

Listed:       Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime

              Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse

              EUREX; London, SIX

 


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