Commerzbank Environmental Internship: Application phase for 2023 has started

Commerzbank continues to expect a net result of more than €1 billion for the financial year 2022, despite a further revenue burden at its Polish subsidiary mBank. The outlook remains under the assumption that the economic consequences of the geopolitical developments do not deteriorate significantly and the uncertainties around energy supply do not require material additional provisions for potential future credit losses.

mBank had previously announced that it has booked further additional provisions for its Swiss franc portfolio of PLN2.336 billion (approximately €490 million) as a result of the announced model review. The total provisions for credit agreements indexed on foreign currencies now amount to around €1.43 billion. The additional provisions will have a corresponding negative impact on Commerzbank's results in the third quarter which will be booked as negative revenues in “Other net income”. mBank also announced a new settlement programme to reach individual agreements with customers.

The new burden adds to the negative revenues which were already announced for the third quarter in July this year due to possible deferrals of interest and repayment of private real estate financing (“payment holidays”) introduced in Poland by the legislation. Nevertheless, Commerzbank expects a positive operating result for the third quarter for the Group as long as the uncertainties about energy supply do not require a further significant risk provisioning.

“Despite the new burden in Poland, we are maintaining our earnings target for the full year 2022 in view of the strong overall revenue development,” said Bettina Orlopp, Chief Financial Officer of Commerzbank. “With the additional provision, mBank has further scope for settlements in its Swiss franc portfolio”.

*** Press contact Erik Nebel +49 69 136-44986

Contact for investors Jutta Madjlessi +49 69 136-28696

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

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.

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On October 5 and 6, investors, company representatives and sustainability experts from science, research and politics will meet at the IMPACT FESTIVAL, the largest trade fair for sustainable innovations. Around 200 start-ups and scale-ups from the Greentech sector are expected at the Fredenhagenhalle in Offenbach. Prominent speakers include Hesse's Minister of Economics Tarek Al-Wazir, climate researcher Prof. Dr. Hans Joachim Schellnhuber and Verena Pausder, founder of Pausder Ventures and investor.

"I am very pleased that with the IMPACT FESTIVAL our subsidiary neosfer, Commerzbank's innovation unit and early-stage investor, has established a platform to create an ecosystem for sustainable and digital innovation," said board member Jörg Oliveri del Castillo-Schulz, Chief Operating Officer of Commerzbank AG, before the event. Oliveri-Schulz will give a speech on the opening day about the need for collaborations and the importance of data for sustainability progress.

With its involvement in the IMPACT FESTIVAL, Commerzbank aims to connect relevant stakeholders such as forward-looking Greentechs and companies that need these technologies to achieve their sustainability goals, thus promoting digital and sustainable transformation. Commerzbank AG supports its subsidiary neosfer on site with specialist contributions, workshops and discussion partners on the subject of sustainability. Competent employees of the bank welcome their guests at the booth.

Oliveri-Schulz is convinced that the green transformation can only be mastered if we think and work in synergies. Cooperation between companies is the key to success in achieving necessary sustainability goals. "The time of pure competition is over. To realize the green transformation as quickly as possible, we must continue and intensify our cooperation efforts. In this regard, IT and data will be the most important foundation for all our efforts to become more sustainable in the future."

While neosfer plays a significant role within Commerzbank's commitment to digital and now sustainable collaborations, the bank is also involved in numerous initiatives itself. One example is the current project together with Deutsche Telekom's T-Systems. This involves automating supply chains in German industry and integrating financial services into them. The use of 5G, Artificial Intelligence (AI) and Blockchain will enable more efficient, resilient and transparent supply chains. Given the growing pressure on companies to assess their supply chains for sustainability factors, this is a first step to help companies assess their supply chains.

Commerzbank is already cooperating with these GreenTech companies:

Tickets for the IMPACT FESTIVAL can be booked online at https://impact-festival.earth.

A discount of 20 percent is granted by Commerzbank with the code:

Impact-Commerzbank20

*** Press contact Renate Christ, +49 89 3564 2721 renate.christ@commerzbank.com

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with almost 46,500 employees.

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Despite the ongoing economic and energy crisis, sustainability remains as important as ever for medium-sized companies in Germany. This is shown in the 21st Entrepreneur Perspectives study from Commerzbank entitled “Economy in transition: sustainable and digital”. The study was once again undertaken by market research company forsa on behalf of the Bank. 300 companies from the industrial, service and retail sectors with an annual turnover of €15 million or more were surveyed. The new results confirm the findings of the previous year’s study, which examined the importance of sustainability in medium-sized companies.

Companies are implementing further sustainability measures

The effects of the energy crisis are strengthening companies’ efforts to implement further sustainability measures. 91% of those surveyed foresee many opportunities, above all in using resources carefully. Sustainability is also perceived as an opportunity in terms of image cultivation (83%), strengthening social responsibility (81%) and enhancing employer attractiveness (73%). However, the proportion of companies that already have a sustainability strategy (40%) is not growing compared to the previous year’s study.

Opportunities through data-based business models

In addition to sustainable transformation, the survey also examines the second important topic of the future: digitalisation. Respondents were also asked about data use, data ethics and digital future technologies, i.e. essential aspects of digitalisation.

The results showed that two thirds of the companies surveyed see great opportunities in data-based business models. Better adaptation of services to customer needs (65%) and the development of digital platforms (60%) are particularly important. Respondents named data security and cybersecurity (81%) and the protection of personal data (77%) as the most important aspects of a data-based business model. Although data-based business models are rated positively, they are currently not relevant for most companies. 48% of those surveyed still use data primarily to optimise their internal processes.

Sceptical about disclosing own data

62% of companies anticipate changes due to increasing data usage, though assessments vary greatly depending on the sector. While almost half expect changes in the industry, the figure for the service sector is as high as 73%. A mixed picture emerges when it comes to attitudes towards data usage. On the one hand, data protection requirements for data use are seen as an obstacle. On the other, 56% of companies state that they do not want to disclose their own data. At the same time, however, a recognisable added value makes 34% willing to share their data.

Data ethics as part of the strategy

Clearly regulated, transparent and responsible handling of data is therefore not just a key to being able to obtain and use information. It is also anchored in strategic considerations. For 43% of all respondents, digital ethics is already part of their corporate strategy. In the case of companies with a specific sustainability strategy, the figure is as high as 58%.

Future technologies are used differently depending on the industry

Looking at the future of digital transformation in medium-sized companies across the board, one thing becomes clear: half of all companies see the Internet of things (IoT) as the dominant future trend. A more differentiated picture emerges for the various sectors. In industry, IoT is particularly relevant for 49% of companies, and for around 37% in additive manufacturing and autonomous systems. In addition to IoT, service providers are dominated by the concept of shareconomy, for example, the joint use of platforms (33%), and augmented/virtual reality (30%).

Advice from the bank wanted

Companies want support from their bank, above all in terms of advice on subsidies for sustainability measures and information on sustainability issues. “In the current energy crisis, many companies are able to keep a focus on the major transformation issues. They are pursuing a clear strategic course during implementation, with milestones and goals on the transformation path, as well as with the necessary resilience,” says Michael Kotzbauer, Board Member for Corporate Clients. “It also helps to have sparring partners who they can interact with as equals. We accept that role,” he adds.

The "Entrepreneur Perspectives" initiative and its studies

Since 2006, the “Entrepreneur Perspectives” initiative for medium-sized companies has provided a forum for public-facing entrepreneurial issues. Once a year, it surveys up to 2,000 business owners and top-level managers from companies of all sizes and sectors. The representative surveys are carried out by forsa. Representatives from business, associations, politics and science discuss the results on public panels.

Bernd Reh +49 69-136-46971

About Commerzbank

Commerzbank is the leading bank for SMEs (the Mittelstand) and a strong partner to some 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank offers a comprehensive portfolio of financial services in two business segments – Private and Small-Business Customers and Corporate Clients. Commerzbank finances around 30% of Germany's foreign trade and it is represented in nearly 40 countries around the world in the corporate customer business. The Bank focuses on German SMEs, large companies and institutional customers. In its international business, Commerzbank supports customers with a business connection to Germany and companies from selected future industries. Following the integration of comdirect, private and small-business customers benefit from the services of one of Germany’s most modern online banks combined with personal advisory services at a local level. The Polish subsidiary mBank S.A. is an innovative digital bank that serves around 5.7 million private and corporate customers, mainly in Poland but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of around €8.2bn with just under 48,000 employees.

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Commerzbank has continued its upwards trend in the first six months of 2022 and has more than doubled its operating result. Thanks to a strong customer business and rising interest rates, revenues significantly increased. The Bank reduced its operating costs as planned despite growing inflationary pressure and has been able to more than compensate for the significant increase in compulsory contributions. The low risk result reflects the high quality of the loan book. In total, the Bank generated a net profit of €768 million in the first six months of the year compared with a loss in the first six months of 2021. With its high portfolio quality, the comfortable capital base and the available top level adjustments (TLA) of €564 million the Bank is well equipped for future economic challenges. Commerzbank has confirmed its profit outlook for the year.

“In the first six months, we have increased our revenues in both segments above our expectations and more than doubled our operating profit. The strong development of our result is clear testimony to the effectiveness of our Strategy 2024 also in a phase of low economic growth,” said Manfred Knof, Chief Executive Officer of Commerzbank. “We have succeeded in enhancing the resilience of Commerzbank during a very difficult period”.

Commerzbank has also consistently progressed with its strategic initiatives. By the end of the year, the Bank intends to have largely contracted the necessary personnel reduction of 10,000 gross full-time equivalents. As of the end of June, the reduction of 7,700 positions has already been locked in. In the optimisation of its branch network, as targeted in the Strategy 2024, Commerzbank had already reached its goal of 450 locations in Germany by the end of June. In line with this, the set-up of the advisory centres is progressing at full speed. Having already introduced 3 pilot locations, the other locations will begin operating from mid-September onwards. The objective is to advise around 8 million private and small business customers from these centers by the end of the year.

The Bank is making good progress on its path to becoming the digital advisory bank for Germany. Its financial analysis service that is already widely used in the banking app, has been further enhanced and integrated into the Bank’s online banking offering. Moreover, the service “Financial Compass” was rolled out in the banking app. Customers can use it to keep track of their financial situation and receive individual recommendations.

The Bank is on schedule in the development of the “Mittelstandsbank Direkt” for corporate clients. Since the second quarter, 3,000 clients are already being served here. A further 3,000 clients will follow over the course of the year. With “Mittelstandsbank Direkt”, Commerzbank creates the first true direct bank for corporate clients in Germany. There has also been excellent progress in the simplification of the trading platform: the Bank has already decommissioned 56 of the 78 targeted applications.

Commerzbank is also stepping up the pace when it comes to sustainability. It presented a new ESG framework, which defines concrete targets for sustainable portfolio management. The Bank has already set clear CO2 reduction targets for half of the credit volume until the year 2030, above all for CO2-intensive industries such as energy generation. In June, the Bank also issued its third green bond with a volume of €500 million.

Strong customer business testimony to operational strength of Commerzbank

In the second quarter, Commerzbank increased its revenues by 30% to €2,422 million (Q2 2021: €1,862 million) thanks to strong customer business and rising interest rates. Driven by significant interest rate hikes in Poland and the rise in long-term interest rates in Germany, net interest income increased by 26% to €1,478 million (Q2 2021: €1,173 million). Compared to an already strong result in the previous year, the Bank also improved net commission income by a further 5% to €896 million (Q2 2021: €852 million). This was above all supported by high volumes in payment transactions in the Corporate Clients segment as well as by a high level of transaction business at mBank.

In the first six months, revenues increased by around 20% to €5,216 million (H1 2021: €4,353 million). As already announced, Commerzbank expects a revenue burden in the third quarter due to new legislation in Poland allowing private borrowers “credit holidays” for mortgage loans.

With minus €106 million (Q2 2021: minus €87 million), the risk result in the second quarter was in line with expectations. The ratio of non-performing loans remained low at 0.8%. With €27 million, the basic loan loss provisions were also at a low level. In addition, there were charges of €228 million in connection with the Russia-Ukraine war, which were covered to a large extent by the existing top level adjustment (TLA). As of the end of June, the Bank has a total of €564 million TLA available for potential further direct effects from the Russia-Ukraine war, as well as for secondary effects such as the interruption of supply chains or high energy prices. Driven by provisioning effects in connection to Russia booked in the first quarter, the risk result was at minus €570 million after the first six months (H1 2021: minus €235 million). Since the beginning of the Russian invasion of Ukraine, the Bank has reduced its Russian net exposure by around 45% to net €1.02 billion by mid-July.

The Bank is on track with its cost-reduction programmes. In the second quarter, the operating costs declined by more than 16% to €1,425 million (Q2 2021: €1,704 million). This particularly reflects personnel reductions and savings from the optimised branch network. In addition, there was a negative one-off effect in the previous year. The reductions were again offset by higher compulsory contributions, which more than tripled to €144 million (Q2 2021: €39 million), above all due to new charges in Poland. Total expenses decreased by 10% to €1,570 million (Q2 2021: €1,743 million). Therefore, the cost-income ratio in the second quarter was 65% (Q2 2021: 94%). Total expenses in the first six months declined by 5.4% to €3,356 million (H1 2021: €3,548 million).

All in all, the operating result increased considerably in the second quarter to €746 million (Q2 2021: €32 million); in the first six months the operating result was €1,289 million (H1 2021: €570 million). The result for the quarter after taxes and minority interests amounted to €470 million (Q2 2021: minus €527 million). After six months the Bank has generated a net profit of €768 million (H1 2021: minus €394 million).

The Common Equity Tier 1 ratio (CET 1 ratio) as of 30 June increased to 13.7% (Q1 2022: 13.5%). This already includes a deferral for the planned dividend payment of 30% of the net profit. Furthermore, the ratio already reflects an increase in the credit RWA due to an anticipated effect of model adjustments. The buffer to the current regulatory requirement (MDA threshold) of 9.4% was about 430 basis points at the end of June.

“With our comfortable capital base and our conservative risk provisioning we are well equipped for upcoming challenges. Thanks to the strong development of our operating business and the progress in costs we continue to expect a net result of more than 1 billion euros for the year 2022. This, however, assumes that there will be no material additional provisions for the Swiss franc loan portfolio at mBank and no severe deterioration in the general development of the economy. In this respect, natural gas supplies to the German economy remain a major source of uncertainty,” said Bettina Orlopp, Chief Financial Officer of Commerzbank.

Development of the segments

Despite its deep transformation, the Private and Small-Business Customers (PSBC) segment increased its revenues in Germany in the second quarter to €1,141 million (Q2 2021: €872 million). Thereby, the segment benefitted from the rise in long-term interest rates, pricing of deposits and positive market value adjustments because of benefits from early mortgage repayments. The loss of around 89,000 net customers was again significantly lower than expected. The net inflow in the securities business was €2.5 billion. However, total volume of securities declined by €22 billion to €188 billion as a result of market developments in the second quarter. The credit volume slightly increased to more than €123 billion. All in all, the Private and Small-Business Customers segment increased its operating result in Germany to €377 million (Q2 2021: €99 million) in the second quarter.

Revenues at mBank increased by 56% to €402 million (Q2 2021: €257 million) in the second quarter. A major contribution came from the 123% increase in net interest income, while net commission income also improved by 14%. This contrasted with major charges: the politically agreed new Institutional Protection Scheme in Poland had a negative impact of €83 million on the compulsory contributions. Furthermore, the booking of additional provisions for Swiss franc loans burdened revenues by €40 million. For the third quarter, mBank expects additional charges of €210 to €290 million for “credit holidays” and of around €30 million for the extension of a support fund for distressed borrowers. In the second quarter, mBank contributed a total of €103 million (Q2 2021: €40 million) to the operating result of Commerzbank.

The Corporate Clients segment increased its revenues by almost 15% to €882 million (Q2 2021: €768 million). This was mainly due to strong transaction and capital market business in all business divisions, while the loans business contributed stable revenues despite the strategic concentration on capital-efficient business. In total, the segment improved its operating result by nearly 35% to €325 million (Q2 2021: €241 million).

Outlook

Commerzbank confirms its outlook for the year 2022 based on the assumptions that there will not be a severe deterioration of the economic environment, for instance due to a natural gas shortage, and that there will be no material additional provisions for the Swiss franc loan portfolio at mBank. All in all, the Bank expects higher revenues this year despite the expected burdens from Poland.

This growth will be driven by significantly higher underlying net interest income thanks to rising interest rates while underlying net commission income is expected to be at the level of last year. Commerzbank sticks to its operational cost reduction target, but now anticipates total costs of €6.4 billion as a result of the higher compulsory contributions in Poland of approximately €100 million. This should be more than offset by a stronger increase in revenues. The risk result is expected to be about minus €700 million based on the assumption of using the TLA. All in all, the Bank continues to anticipate a net profit of more than €1 billion and a CET 1 ratio of more than 13% at the end of the year. It intends to propose a dividend for the 2022 financial year with a pay-out ratio of 30% based on the net result after deduction of the AT1 coupon payments.

Press contact Erik Nebel +49 69 136-44986 Sina Weiß +49 69 136-27977

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

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Deutsche Telekom and Commerzbank are cooperating in the industrial sector. Together they are developing fully automated supply chains with integrated financial services. In this respect the Deutsche Telekom subsidiary T-Systems and Commerzbank are setting store by digital technologies such as 5G, artificial intelligence, the internet of things (IoT), blockchain, cloud technology and sensor technology. Corporate clients profit from the digital combination of physical and financial supply chains thanks to:

Digital supply chains reduce costs and ensure transparency

The current geopolitical and economic situation has revealed the weakness of supply chains. Many supply paths are complex, static, lacking in transparency and involve numerous manual stages. They are designed to function when all the framework conditions remain constant and predictable. Error-proneness is high, as in the majority of cases physical and financial supply chains are not linked to one another digitally.

Above all for manufacturing companies a constant inventory, the timely delivery of the material required for production and its payment within the specified time are important. This physical process can be automated and digitized with modern technology. This is made possible by sensors on load carriers such as pallets, for example. With the aid of positioning technologies it is possible to establish the movement of goods along supply chains during transport between suppliers and producers (inter logistics) and a production facility (intra logistics). This leads to the creation of databases: in the future producers, suppliers, transportation service providers and Commerzbank can communicate with one another digitally and in real time through their goods flows. Thus orders and payments may be triggered or specific financial services such as working capital optimisation, supply chain finance or risk mitigation can be automated.

In this respect technology standards and reference architectures guarantee secure and efficient data exchange between all the parties. Financial transactions are conducted on the basis of blockchain technology, with the foundation formed by so-called “smart contracts”, intelligent electronic contracts therefore. These contracts regulate which financial transactions are initiated with which predefined conditions, so-called triggers.

Logistician tests digital supply chain in the Werner von Siemens Centre

In a six-month test phase T-Systems and Commerzbank are optimising the digital solution together with a pilot customer from the logistics sector. The individual challenges faced by the customer in the supply process or in the warehouse are taken into consideration. To this end the infrastructure of the Werner von Siemens Centre in Berlin is being used. T-Systems operates a research and development hub for industry solutions there.

“Companies need technologies like 5G, IoT and the cloud share digital information with everyone in the supply chain globally. In the cooperation with Commerzbank we bring the worlds of technology and finance together so as to digitize all aspects of a supply chain – from procurement, invoicing, through logistics, to payments,” said Urs M. Krämer, Chief Commercial Officer at T-Systems.

Scalable solution for supply chains in Industry 4.0

“Supply chains will change rapidly with digital networking and integrated payments,” said Jörg Oliveri del Castillo-Schulz, Chief Operating Officer of Commerzbank. “Together with T-Systems we are working on scalable solutions so that our customers can make their complex supply chains such that these are more efficient, resilient and productive”.

In this regard Commerzbank will also be supported with scientific expertise in the framework of its cooperation with the Fraunhofer Institute for Material Flow and Logistics (IML) in Dortmund. “Thanks to the integration of the blockchain-based solution which we are developing together with Commerzbank in the framework of the Trade Finance Innovations Lab, in the future the partners will be able to combine physical and financial supply chains with one another so as to attain economic end-to-end automation in supply chains,” said Prof. Dr. Dr. h. c. Michael Henke, institute head at Fraunhofer IML.

In addition, the cooperation is consciously setting store by an open ecosystem so as to facilitate integration into open source infrastructures such as the Silicon Economy of Fraunhofer IML, the International Data Spaces Association and also the European project Gaia-X, for example.

*** Press contact Commerzbank +49 (0)69 136-25565, pressestelle@commerzbank.com

Press contact Deutsche Telekom +49 (0)228 181-49494, medien@telekom.de

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with almost 46,500 employees.

Disclaimer and Forward-Looking Statement 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.

About Deutsche Telekom: Deutsche Telekom company profile

About T-Systems: T-Systems company profile

Further information for media representatives:

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Commerzbank still expects a net result of more than €1 billion for the financial year 2022 despite an expected revenue burden at its Polish subsidiary mBank. This outlook is under the condition that there will be no further significant deterioration in the economic environment and that no material additional provisions for the Swiss Franc loan portfolio at mBank will be necessary.

mBank had previously announced that, in the third quarter of 2022, it expects to book negative revenues in the range of PLN 1.0 to PLN 1.4 billion (currently approximately €210 million to €290 million) as a result of possible deferrals of interest and repayment of private real estate financing (“credit holidays”) introduced by new legislation. Commerzbank’s third quarter operating result is expected to be burdened by a corresponding amount, which will be booked as negative revenues predominantly in “Other net income from financial instruments”.

The new legislation in Poland allows private borrowers to skip monthly payments for current mortgages loans up to eight times by the end of 2023. mBank expects that 60% to 80% of currently assumed eligible borrowers will make use of this option. Commerzbank will consider legal action against this unusual measure, which is granted to all borrowers regardless of their financial position.

The “credit holidays” are part of the measures taken by the Polish Government to respond to the consequences of high inflation and rising interest rates. The Polish National Bank had recently raised the key interest rate to 6.50%. In the second quarter, Commerzbank already expects additional compulsory contributions of around €83 million at mBank for the Institutional Protection Scheme.

“mBank is one of Europe’s most modern banks and a growth engine for our Group. Unfortunately, the new legislation in Poland causes considerable one-off burdens. However, thanks to the continued good development of our operating business, we still expect a net result of more than €1 billion for the financial year. This is under the condition that there will be no further significant deterioration in the economic environment, for example due to further shortages in the gas supply,” said Bettina Orlopp, Chief Financial Officer of Commerzbank.

*** Press contact Erik Nebel +49 69 136-44986

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.

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At its meeting today, the Supervisory Board of Commerzbank appointed Sabine Mlnarsky to the Board of Managing Directors of the Bank with effect from 1 January 2023. She will assume responsibility for the Group Human Resources division. As Chief Human Resources Officer and Labour Relations Director she is succeeding Sabine Schmittroth, who, in line with her personal life planning, is leaving Commerzbank when her contract expires at the end of 2022.

Sabine Mlnarsky has more than two decades of experience in the field of human resources and is joining Commerzbank from Austria’s Erste Group Bank AG. At the central institution of the Austrian savings bank sector, the 47-year-old lawyer has headed the human resources area since 2016. She thus returned to the company where she had embarked on her career in HR management in 2001, before she was responsible for human resources at the Lufthansa subsidiary Austrian Airlines in the years 2013 to 2016.

The Chairman of the Supervisory Board of Commerzbank, Helmut Gottschalk, said of her appointment to the Board of Managing Directors: “We are pleased that with Ms Mlnarsky we have acquired a manager who is both experienced and dynamic, someone who is not only highly familiar with our industry, but who has also demonstrated her extensive abilities in periods of transition. She will bring fresh impetus to the human resources work at Commerzbank while developing new prospects for working in the Bank and reinforce the sense of optimism in the company and enhance the image of Commerzbank as an employer. At the same time, the Supervisory Board would like to thank Ms Schmittroth for her services to the company in various functions over the course of nearly four decades and wishes her all the very best in the next phase of her life”.

At today’s meeting, Chief Risk Officer Marcus Chromik also informed the Supervisory Board that he intends to fulfil his management contract, which runs until the end of 2023, but, in line with his personal life planning, will not accept a possible offer of an extension to his contract. On this, the Chairman of the Supervisory Board Helmut Gottschalk said: “We respect the decision on the part of Mr Chromik, which he has been considering for a long time now. After then 14 years in the Bank and 8 years as a member of the Board of Managing Directors, he would like to start a new chapter in his professional life. The sense of mutual appreciation is great, and we look forward to the remaining collaboration. By informing the Supervisory Board at this early stage, we now have clarity and planning security for an orderly transition in this important function”.

Press contact Sven Korndörffer +49 69 136-22461 Silvana Herold +49 69 136-46646 Sascha Ullrich +49 69 136-82349

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Commerzbank has set concrete CO2 reduction targets for half of its lending volume granted to private and corporate clients to be achieved by 2030. The Bank will initially focus on CO2-intensive sectors when managing climate risk. For example, by 2030 a reduction target of at least 73% is set for the energy production sector and a reduction of at least 57% for the significantly larger mortgage portfolio. Achieving these targets is an important interim step for the Bank in reducing the CO2 emissions of its entire lending and investment portfolio to net zero by 2050 at the latest.

The specific targets for sustainable portfolio management can be found in Commerzbank’s new ESG framework. This framework clearly states all the key cornerstones of its sustainability strategy and hence makes its concept of sustainability transparent to all stakeholders. The document will continue to be updated.

"We want to accompany our clients in their sustainable transformation in the best possible way. This means that our clients know what they can expect from us – but also that they understand what we expect from them," said Manfred Knof, CEO of Commerzbank, at the Bank's second Sustainability Dialogue event.

"The sustainable transformation of the economy cannot be stopped. It’s true that we’re currently experiencing a setback due to soaring energy prices, inflation, supply chain bottlenecks and a restart of coal-fired power plants," continued Knof. "In the medium term, however, the war will significantly accelerate the energy transformation. It has given us yet another reason to quickly reduce our dependency on fossil fuels and their suppliers. Commerzbank is very aware of the important role it plays in the energy transition. Our goal is to channel around €300 bn into sustainable products by 2025."

Framework discloses Commerzbank's understanding of sustainability

In particular, the new ESG framework at Commerzbank governs which products are considered sustainable. Amongst others, it describes the criteria for sustainable lending and the reduction targets for CO2-intensive sectors. Social criteria are also taken into account and the criteria for exclusions are defined. One example is the guideline for fossil fuels. The Bank expects its clients who generate 20% or more of their revenue or power production from coal to present a coal exit plan by 2025. Through this guideline, Commerzbank is helping to accelerate the coal phase-out by 2030.

"Our ESG framework provides our stakeholders with the greatest possible transparency. We’re creating a Bank-wide standard, which will provide guidance for the stringent management of all ESG products, processes and activities," said Bettina Storck, Head of Group Sustainability Management. The ESG framework focuses on Commerzbank’s core business, the customer and product portfolio. In this regard, the Bank distinguishes between Sustainable Finance and Transformation Finance.

Sustainable Finance represents the share of the portfolio which is already classified as sustainable. By 2025, Commerzbank will mobilise at least €300 bn euros for sustainable products, a threefold increase from 2020. Transformation Finance includes financing projects which fail to fulfil the requirements of Sustainable Finance, but which, as normal financing transactions, can foster the transformation of borrowers towards sustainability.

With SBTi, portfolios are steered towards net zero

Commerzbank has set concrete CO2 reduction targets for half of the lending volume granted to private and corporate clients. For this, the Bank uses the requirements set by the Science-based Target Initiative (SBTi) and will initially focus on seven CO2-intensive sectors such as power generation, commercial and private real estate and automotive manufacturing as well as iron and steel, cement and aviation. "The better we support our clients in reducing their emissions, the faster we will move towards net zero," said Chief Risk Officer Marcus Chromik. "Achieving the reduction targets for 2030 is an important stage for us en route to becoming a net zero bank by 2050 at the latest." Commerzbank has set itself the goal of establishing clear CO2 reduction targets for 70% of its lending volume granted by autumn 2022.

Commerzbank advises and accompanies corporate clients in their green transformation

In the Corporate Clients segment, Commerzbank has set itself the aim of developing solutions that enable its clients to significantly reduce their CO2 emissions. This also includes direct access to energy transition projects. In June, Commerzbank, together with RWE, signed a memorandum of understanding to build an offshore wind farm with an output of around 1 gigawatt and to start operations by 2030 at the latest. As part of this, Commerzbank will be setting up a ‘Green Mittelstand Fund’, which will provide large medium sized companies with access to green electricity from offshore wind turbines. The fund will, for the first time, provide these companies with the opportunity to secure long-term purchase agreements for green electricity. This kind of participation is currently reserved for large industrial companies only. The construction of the offshore wind farm is subject to the prerequisite that RWE’s bid for the project is accepted following the invitation to tender in 2023.

ESG loans reward corporate clients who meet targets early with interest rate cuts

The Bank intends to double its credit exposure in renewable energies to €10 bn by 2025. The Bank also expects significant growth in sustainable bonds and sustainability-linked loans. Since the beginning of this year, Commerzbank has offered a bilateral loan, in which sustainability targets and timelines are defined between the company and Commerzbank. "If the borrower fails to meet the targets, the rate will be raised until the agreed targets are met. However, the interest rate can, of course, fall if the borrower reaches its ESG targets earlier than agreed. This creates a financial incentive to operate sustainably," said Knof. "We want to offer our clients the products they need to meet their sustainable financing and investment needs. We are committed to this."

CO2 reduction target for banking operations met at an early stage due to fewer business trips

Commerzbank is also pursuing ambitious reduction plans in its own banking operations, which are expected to be net zero by 2040. For this the Bank uses efficient facility management and artificial intelligence. By the end of 2021, CO2 emissions had already fallen by 40% compared to 2018. However, the decline is largely due to the pandemic and the lack of business travel. For this reason, Commerzbank expects to see a temporary increase in emissions and stands by its interim target of reducing greenhouse gas emissions by 30% by 2025.

About the Sustainability Dialogue

The Sustainability Dialogue event provides an overview of Commerzbank’s sustainability activities. During the virtual event, participants can submit questions directly to the panel. The second Sustainability Dialogue took place today, 4 July 2022, with the Chief Executive Officer Manfred Knof, Chief Risk Officer Marcus Chromik, and Bettina Storck, Head of Group Sustainability Management.

*** Information Link to the audio file of the Sustainability Dialogue: Commerzbank AG - Nachhaltigkeitsdialog (available from approx. 2 p.m., 4 July 2022, in German only)

*** Press contact Dennis Bartel, +49 69 136-26528, dennis.bartel@commerzbank.com Renate Christ, +49 89 3564-2721, renate.christ@commerzbank.com Beate Schlosser, +49 69 136-22137, beate.schlosser@commerzbank.com

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

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Essen/Frankfurt am Main, 20 June 2022

The idea is as innovative as it is reasonable: RWE and Commerzbank plan to create a ‘Green Mittelstand Fund’ to give medium-sized industrial companies in Germany access to green electricity generated by offshore wind plants. The two companies have signed a Memorandum of Understanding (MoU) to this effect.

The new fund will offer these companies for the first time the opportunity to secure green electricity through long-term power purchase agreements (PPAs). Up to now, it has mainly been large industrial customers who have been able to sign such long-term power purchase agreements with large-scale green electricity projects. The medium-sized companies are offered two options as part of this fund: On the one hand, they can participate directly in the planned offshore wind farm with equity. On the other hand, they can secure long-term green electricity via a PPA and thus achieve their decarbonisation targets. Both options can also be combined.

The planned wind farm is to have an installed capacity of around one gigawatt (GW). The companies want to apply for a seabed for the wind farm within the framework of future tenders, in accordance with the planned amendment to the German Wind Energy at Sea act. These auctions are expected to take place in 2023. RWE plans to hold 51 percent of the shares in the wind farm, the remaining 49 percent are to be offered to interested medium-sized companies by Commerzbank via the ‘Green Mittelstand Fund’. RWE will develop, build and operate the wind farm.

The company will commit to making the power generated there available to medium-sized companies. Commerzbank, on its part, plans to make green electricity directly available to its customers from the German ‘Mittelstand’, i.e. medium-sized companies. On the one hand, this is to take place via individual financing and credit solutions for the equity investments of medium-sized companies in the offshore wind farm. On the other hand, the concept offers the possibility to purchase green electricity from the wind farm via PPAs starting with a tranche corresponding to a capacity of 5 megawatts – tailored to the electricity needs of medium-sized companies.

“The ‘Mittelstand’ is what makes the German economy a success. With this innovative solution, we want to give these companies in particular access to green electricity production from offshore wind turbines and thus contribute to financing the energy transition in Germany”, explains Michael Kotzbauer, Member of the Board of Managing Directors, Corporate Clients at Commerzbank. “What is particularly attractive here is that our concept also offers investment opportunities in offshore wind that meet the electricity demand of medium-sized industrial companies."

German Wind Energy at Sea act to be ammended to enable real transformation

Germany needs enormous amounts of green electricity to be climate neutral by 2045. The amendment to the German Wind Energy at Sea act therefore provides expansion targets to be increased and seabed for offshore wind to be brought forward to at least 70 GW by 2045. In order to take advantage of industrial policy-related opportunities and make Germany a top location for investment in renewable energies, speed is required, as well as a clear focus on supporting the economy in switching to climate-friendly production. To this end, the majority of green electricity from offshore wind must find its way into industry and the medium-sized enterprises of the German ‘Mittelstand’.

Ulf Kerstin, Chief Commercial Officer Offshore Wind of RWE, emphasises: “Green electricity at competitive prices is the pledge of a sustainable industrial nation with a strong tradition of the ‘Mittelstand’. Our concept opens up great opportunities for this because it can support companies and the energy transition. However, the amendment to the legislation should be modified in such a way that it really does give a boost to the transformation of Germany as an industrial location because electricity from offshore can be offered at competitive prices”.

One prerequisite for this is to dispense with the negative bidding component, which the current draft law provides for, when designing the bidding conditions for offshore wind turbines on so-called non-pre-surveyed areas. This bid component would make green electricity unnecessarily more expensive for German companies, which are already facing record high energy prices. There is also a need for improvements in the criteria for the award procedure. They should be chosen in such a way that they allow differentiation between the bids and at the same time serve the overriding goal of providing green electrictiy in a smart and system-serving way.

*** For further enquiries: Dennis Bartel Head of Media Relations Personal und Technologie Commerzbank AG T +49 69 136 26528 M +49 172 203 11 10 E dennis.bartel@commerzbank.com

Matthias Beigel Head of Media Relations National RWE AG T +49 201 5179 5008 M +49 152 54 53 55 07 E matthias.beigel@rwe.com

*** Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

RWE RWE is leading the way to a green energy world. With an extensive investment and growth strategy, the company will expand its powerful, green generation capacity to 50 gigawatts internationally by 2030. RWE is investing €50 billion gross for this purpose in this decade. The portfolio is based on offshore and onshore wind, solar, hydrogen, batteries, biomass and gas. RWE Supply & Trading provides tailored energy solutions for large customers. RWE has locations in the attractive markets of Europe, North America and the Asia-Pacific region. The company is responsibly phasing out nuclear energy and coal. Government-mandated phaseout roadmaps have been defined for both of these energy sources. RWE employs around 19,000 people worldwide and has a clear target: to get to net zero by 2040. On its way there, the company has set itself ambitious targets for all activities that cause greenhouse gas emissions. The Science Based Targets initiative has confirmed that these emission reduction targets are in line with the Paris Agreement. Very much in the spirit of the company’s purpose: Our energy for a sustainable life.

Data Protection The personal data processed in connection with the press releases will be processed in compliance with the legal data protection requirements. If you are not interested in continuing to receive the press release, please inform us at Datenschutz-kommunikation@rwe.com. Your data will then be deleted and you will not receive any further press releases from us in this regard. If you have any questions about our data protection policy or the exercise of your rights under the GDPR, please contact datenschutz@rwe.com.

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Today, Commerzbank AG has successfully issued another Green Bond with an issuance volume of €500 million. The Bank will use the proceeds to refinance renewable energy projects. Commerzbank also issued its own Green Bonds in 2018 and 2020.

“We are consistently expanding our volume of sustainable products. This is part of our strategy. We want to mobilise €300 billion by 2025,” said Bettina Orlopp, Chief Financial Officer of Commerzbank. “Thanks to the growth of our lending for renewable energy projects, we were able to issue our third Green Bond. We are responding to the continuing increase in demand for sustainable asset classes and are providing our investors with an opportunity to participate in the sustainable transformation of the economy”.

Commerzbank has linked loans for onshore and offshore wind projects and solar projects to the non-preferred senior Bond. The Bond attracted keen investor interest, with a volume of more than €1.1 billion, the final order book at re-offer was more than two times subscribed. The Bond has a term of 5.25 years with a call date in September 2026 and an annual coupon of 3%. In addition to Commerzbank, the joint lead managers for the transaction were ABN, BBVA, ING, and Natixis.

Commerzbank is a well-established player in the market for sustainable and green bonds. For years, the Bank has advised and supported its clients on the issue and placement of sustainable and green bonds across the international capital markets. Already this year, the Bank has lead-managed more than 20 green and social bond issuances with an aggregate volume of more than €20 billion. In 2021, the aggregate volume was €62.2 billion for 57 issuances.

*** Press contact

Erik Nebel +49 69 136-44986

*** About Commerzbank

Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

*** Disclaimer

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Commerzbank has continued its upwards trend in customer business in the first quarter 2022 and saw a double-digit percentage growth in its revenues. As previously announced on 26 April of this year, especially net interest income increased significantly thanks largely to the rate hikes in Poland. Net commission income further improved from an already high level a year ago. With the strong revenues, the Bank was able to overcompensate the higher risk provisioning due to the significant increase in economic and geopolitical uncertainties as a consequence of the Russian war against Ukraine. Furthermore, the cost-reduction programme is on target. In total, the operating result has increased, while the net result more than doubled to €298 million which was slightly better than announced in the pre-release. This means, the Bank is on track to achieve its targets for the full year.

“The strong development of our revenues in the first quarter proves that our ‘Strategy 2024’ is working. The good start to the year has confirmed our expectation that we will generate a net result of more than €1 billion in 2022. We remain determined to pay a dividend for this year. Our strong capital basis gives us the necessary leeway for this,” said Manfred Knof, Chief Executive Officer of Commerzbank.

Commerzbank has also continued to push ahead with its strategic initiatives in the first months of this year and made further progress on its goal of becoming the digital advisory bank for Germany. With “money mate” a new service which makes securities trading simpler and faster for retail customers was launched. In Private and Wealth Management, a new portfolio management product has been successfully launched which takes advantage of the expertise of the 50 specialists in the Chief Investment Office. It has already attracted an inflow of €300 million in the first weeks since the start.

There are also new features in the banking app. It is now possible to easily open an account and the launch of the digitalised consumer loan has been started. In the Corporate Clients segment, the development of Mittelstandsbank Direkt is making good progress. After the start with 1,000 clients last year, 2,000 clients are currently being migrated to the direct banking service. In addition, the Corporate Clients portal has been relaunched – and will gradually include new digital services.

Commerzbank has made good progress with its sustainability strategy and registered a good start to the year with its sustainable business products. With a volume of €101 billion at the end of the first quarter, the Bank is well on track to reach this year’s target of €207 billion. A loan product was launched for Mittelstand in which concrete sustainability targets are defined between a company and Commerzbank, leading to a lower interest rate once these targets are reached. For the first time, the Bank has published its non-financial report in line with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). Beginning with the CO2-intensive loan portfolios in the energy generation sector and the automotive production sector, concrete CO2 reduction targets have been determined on the basis of the “Science-based Targets Initiative”.

Exposure in Russia significantly reduced

Following the Russian war on Ukraine, the Bank has stopped new business in Russia. In compliance with all the applicable sanctions, the Bank is only accompanying existing German and international customers. It will continuously adapt its business strategy and risk assessment to the current situation. Since mid-February, the Bank has reduced its net exposure to Russia by 36% to less than €1.2 billion by the end of April.

Thanks to the strong customer business in the first quarter, Commerzbank increased its revenues by 12% to €2,795 million (Q1 2021: €2,492 million). Net interest income improved by 12% to €1,401 million (Q1 2021: €1,254 million) benefitting significantly from higher interest rates in Poland as well as from the higher loan volume and increased pricing of deposits. Following on from a strong result a year ago, net commission income showed growth of a further 2% to €972 million (Q1 2021: €951 million). It benefitted from good volumes in payment transactions with corporate clients as well as from an increasing securities business with private customers. Positive contribution to the revenues also came from a strong capital markets business and valuation effects of hedging instruments.

The risk result in the first quarter was minus €464 million (Q1 2021: minus €149 million). This is dominated by provisioning effects of almost half a billion euros in connection to Russia. The Bank formed a top level adjustment (TLA) of €334 million as an additional provision. There were also negative effects from rating changes in the loan portfolio. This was offset to some extent by the partial release of the TLA formed in connection with the Covid pandemic. Without these effects, the base risk result was minus €104 million. In total, TLAs of €713 million were available by the end of March.

In the first quarter, Commerzbank has made further progress in reducing its cost base. The operating costs declined by 2% to €1,440 million (Q1 2021: €1,469 million). This is a result of personnel reductions, lower consulting fees, and savings in connection with the leaner branch network. On the other side, the burden from compulsory contributions increased again, by 3.2% to €347 million (Q1 2021: €336 million). This is mainly due to a further increase in the European bank levy. Total costs for the quarter amounted to €1,787 million (Q1 2021: €1,806 million). Overall, the cost-income ratio in the first quarter improved significantly to 63.9% (Q1 2021: 72.5%).

All in all, the operating result increased to €544 million (Q1 2021: €538 million). Before risk costs it rose by 47% to €1,008 million (Q1 2021: €686 million). In total, the Bank improved its net result after taxes and minority interests to €298 million (Q1 2021: €133 million).

The Common Equity Tier 1 ratio (CET 1 ratio) at the end of March was a robust 13.5% (end of 2021: 13.6%). This already includes an accrual for the planned dividend payment. The risk-weighted assets (RWA) remained stable compared to the previous quarter. The Bank was able to offset increases from rating migrations due to Russia. The buffer to the current regulatory requirement (MDA threshold) of 9.4% stands at around 410 basis points.

“Thanks to very strong business in all customer segments, we have generated double-digit growth in our revenues in the first quarter and lowered the costs as planned. Pre provision profit rose by nearly 50% to over €1 billion. We have been able to more than compensate for the currently identifiable effects resulting from the Russia-Ukraine war. This shows how robust and resilient our customer business is in these challenging times. This is also true for our comfortable capital base, with which we are not only capable of paying a dividend, but are also well-equipped to deal with further uncertainty,” said Bettina Orlopp, Chief Financial Officer of Commerzbank.

Development of the segments

The Private and Small-Business Customers (PSBC) segment again benefited from the trend towards investment in securities in Germany. Net inflow amounted to €3 billion in the quarter. However at the end of March, the total volume of securities was around €8 billion less than at the end of 2021 due to lower valuations on the stock markets. The loan volume increased by around €2 billion to €123 billion, mainly thanks to robust mortgage financing in the first quarter. Moreover, the Bank made further progress with the introduction of pricing on large deposits. In the meantime a volume of €22 billion has already been priced in the PSBC segment, around €3 billion more than at the end of 2021.

Overall, the Private and Small-Business Customers segment increased its revenues in the first quarter by nearly 11%, to €1,469 million (Q1 2021: €1,329 million). In particular mBank showed a considerable improvement in revenues. It benefited significantly from the rises in Polish interest rates and was able to increase its net interest income by 86% year-on-year. mBank also improved its net commission income by nearly 19%. It was able to clearly offset for the increase of €41 million in provisions for the loan portfolio in Swiss francs. In Germany, the segment also posted a rise in revenues. These were 4% higher year-on-year. Progress with costs and a slight rise in the risk result led to an operating result of €403 million for the segment, an increase of more than 60% (Q1 2021: €250 million).

The Corporate Clients segment increased its revenues by nearly 12% to €926 million (Q1 2021: €829 million). The Mittelstandsbank continued its upwards trend, with revenue growth in all business lines. The International Corporates division was able to more than compensate for the strategy-driven decrease in its lending business through growth in transaction banking and capital markets business. The Institutionals division also saw a slight rise in revenues compared to the same quarter of the previous year.

The operating costs in the segment declined by more than 5%. This contrasted with a significantly higher risk result of minus €286 million (Q1 2021: minus €52 million). In total, the Corporate Clients segment booked an operating result of minus €7 million (Q1 2021: €101 million); before the risk result the figure was €279 million and thus 82% higher year-on-year.

Outlook

Based on the assumptions that there will be no material additional provisions for the loan portfolio of mBank in Swiss francs and that effects from Russia will remain contained, Commerzbank confirms its outlook for 2022. The Bank expects underlying interest and commission income to increase – driven by higher net interest income in mBank from rates increases in Poland. Costs are to be reduced to €6.3 billion. The risk result is expected to come in below €700 million, assuming usage of TLAs. The Bank targets a net result of more than €1 billion. The Common Equity Tier 1 ratio is expected to be more than 13%. Commerzbank intends to propose a dividend with a pay-out ratio of 30% of the net result – after AT1 coupon payments – for the business year 2022.

*** Press contact Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

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At this Year’s Annual General Meeting (AGM) of Commerzbank, Manfred Knof, Chairman of the Board of Managing Directors, commented on the financial year 2021 and the progress made in implementing the Bank’s “strategy 2024”: "In the first year of the transformation, we have delivered on our promises. We were even more succesful than expected – especially in our customer business. This shows that our strategy is working, even in times of a global pandamic”. Due to the Covid pandemic, the AGM was once again held virtually.

Commenting on the outlook, Manfred Knof said: ”With regard to the Bank, we remain optimistic for this year and expect to further improve our results. We have made a good start to the new financial year, and we are adhering to our targets for 2022. We’re staying the course, and we’re keeping focussed on the future. There remains much to be done in order to achieve the goals of our “Strategy 2024” and to make Commerzbank sustainably profitable”.

Following the debate, shareholders today approved all agenda items. The main voting results at a glance:

Ratification of actions (items 2 and 3)

The AGM ratified the Board of Managing Directors’ actions as well as the Supervisory Board’s actions with a majority of 99.36% and 85.27% respectively.

Election of auditor (items 4)

The AGM elected KPMG as auditor for the full financial year 2022 with 99.71%. This means that the change of auditor which was started last year has now been completed.

Approval of remuneration report (item 5)

The shareholders approved the remuneration report for the last financial year with 59.85%. “We take the criticism of our remuneration report seriously and will implement further improvements,” said Helmut Gottschalk, Chairman of the Supervisory Board of Commerzbank. It was the first time that the AGM was to decide on the approval of the remuneration report.

Adjustments to remuneration system for the Board of Managing Directors (item 6)

The AGM approved adjustments to the system for the remuneration of the Board of Managing Directors with 84.60%. The changes are to reduce complexity, increase clarity and transparency, and strengthen the performance-oriented mindset. In addition, the variable remuneration is to be linked more closely to the sustainable development of the Bank. In order to strengthen the identification with the company, a share ownership guideline is to be introduced for the Board of Managing Directors and the share-based part of variable compensation is to be increased.

Amendments to Articles of Association concerning Supervisory Board compensation (item 7)

With a majority of 99.20% amendments to the Articles of Association concerning the compensation of the Supervisory Board were approved. Thereby the remuneration of the members of the Supervisory Board is to be standardised with regard to the additional compensation for the membership in the committees.

Shortening term of office of Supervisory Board members (item 8)

Furthermore, the AGM cleared the way for shortening the term of office of the Supervisory Board members from five to four years with 99.50%. In addition, the AGM will have the the right to determine an even shorter term of office when electing the representatives of the shareholders.

Further information on this year’s AGM is available on our website at www.commerzbank.com/agm.

*** Press contact Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

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LONDON & FRANKFURT: Commerzbank has released a comprehensive whitepaper that explores the potential of application programming interface (API) technology to encourage collaboration and facilitate sustainable supply chains through digital ecosystems, positioning businesses to adapt to the sustainability focused landscape.

The whitepaper, titled “How API based ecosystems can serve circular economy”, looks at the role of APIs as facilitators of data exchange and how this technology can be deployed by financial institutions – and their clients – to enable more sustainable business models. It explains how, by aggregating complex data from various sources, APIs can provide the building blocks for solutions such as digital ecosystems. This method of data distribution is crucial, reveals Commerzbank, if corporates are to meet their sustainability targets, comply with regulators, and transition to a more circular economy.

The paper highlights the immediate need for API-enabled digital ecosystems, stating: Ecosystems based on APIs are going to be integral in the transformation from traditional economy models into new business models, as they are founded through collaboration. They will not only allow for sustainable services but also the reusing and sharing of already established competencies and services between participants – as in a circular economy business model.

“We are convinced that the challenges of today cannot be solved alone. We all need to collaborate to develop circular business models embracing the idea of true sustainability,” said Christoph Berentzen, Head of API Banking at Commerzbank. “Banks have always been committed to answering clients’ evolving financing needs with the right lending products and we are now seeing demand for embedded finance services – supplementary services to development such as digital ecosystems. This is something Commerzbank is currently working on and prioritising in our API banking cluster, and we are looking to offer more and more open banking solutions”.

Alexander Pawellek, Principal Product Owner responsible for digital innovation and strategy in trade finance at Commerzbank added: “Currently, market players all hold valuable data, but the system landscape is fragmented. The timely sharing of relevant information would deliver cost and time savings while also opening up new business opportunities. Such a solution is not created overnight – it is established by taking small, concrete steps”.

With this in mind, Commerzbank has also developed a prototype digital ecosystem, the Sustainable Supply Chain Platform, to provide a working example of how APIs can best be applied to solve sustainability reporting challenges with supply chains. The aim of the prototype is to bring together partners from trade and sustainability finance to identify potential synergies. The platform will allow ESG ratings providers, for instance, to share data on the ratings of certain suppliers. Using the API-enabled platform, buyers would be able to instantly assess whether their own supply chain is a sustainable one.

To learn more, or to get involved, visit: developer.commerzbank.com/

*** Press contact Claire Tappenden +44 20 74755161

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with almost 46,500 employees.

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On the basis of preliminary figures, Commerzbank has increased its operating result in the first quarter 2022 slightly to €544 million (Q1 2021: €538 million) which significantly exceeds analyst consensus of €282 million. Revenues improved thanks to strong customer business in all operating areas by 12% to €2,795 million (Q1 2021: €2,492 million). Net interest income rose by 12% to €1,401 million (Q1 2021: €1,254 million) which primarily reflects higher revenues at mBank as a consequence of the rises in the Polish interest rates. Net commission income increased by a further 2% to €972 million (Q1 2021: €951 million), following on from a strong result in the previous year.

With the double-digit growth in revenues, Commerzbank more than compensated for the charges as a consequence of the Russian war against Ukraine. The risk result in the first quarter is to be minus €464 million (Q1 2021: minus €149 million). This increase results from provisioning effects of about half a billion euros in connection with the war in Ukraine. In total, the Bank has now formed top level adjustments (TLA) of €713 million as additional provisions.

All in all, the preliminary net result in the first quarter after taxes and minority interests amounted to €284 million. In the first quarter of 2021 this figure was €133 million.

Commerzbank continues to expect a net result of more than €1 billion for the 2022 financial year and confirms all its other 2022 financial targets. This is also true for the risk result, which is still expected to be less than €700 million in 2022 taking into account the top level adjustments which have been formed. The outlook is based on the assumptions that there will be no substantial increase in the provisions for the Swiss francs loan portfolio of mBank and that the economic effects of the Russia-Ukraine war remain contained.

“We have made a good start to the new financial year. Thanks to strong customer business we have increased our operating result although the economic consequences of the Russian war against Ukraine have impacted on our risk result. We are sticking by our targets for the year as a whole,” said Manfred Knof, Chief Executive Officer of Commerzbank.

The figures stated in this press release are preliminary. Commerzbank will publish its final figures for the first quarter 2022 on 12 May 2022.

Press contact

Erik Nebel +49 69 136-44986

Maurice Farrouh +49 69 136-21947

About Commerzbank

Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers,predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

Disclaimer

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As neosfer GmbH, the innovation unit and early-stage investor of Commerzbank AG will henceforth focus even more on the digital and sustainable transformation of the economy and the bank. With a new brand concept, the company underscores the change, combines competencies in the areas of digitalization and sustainability, and keeps its entry into new business areas open. The name "neosfer" is international and highlights the development from a pure incubator to a diversified business model. Derived from new, transfer and sphere, it describes the exploration of new areas and the transfer of digital and sustainable know-how into the bank and thus into the economy. In this way, the Commerzbank subsidiary is sharpening its business model and actively responding to the ongoing changes in the market and in society.

Customer demand in the B2B and B2C sectors is no longer just growing for digital solutions, but above all for sustainable solutions. In response, transformation must be driven in both directions. Kai Werner, Managing Director of neosfer, explained: "Digitalization and sustainability are undoubtedly the key drivers of our current times. As neosfer, we are convinced that the two trends cannot be viewed separately from each other but are closely linked and must therefore always be considered simultaneously". To this end, neosfer investigates future technologies that are relevant to business and society, invests in innovative ideas and develops sustainable and digital solutions.

Through investments in technology-driven and sustainable startups, neosfer brings innovations to Commerzbank and to its customers. The portfolio already includes several companies with a focus on sustainability. Successful startup examples include Dabbel, Squake, Global Changer and Grover. The latter recently achieved Unicorn status (market valuation of over $1 billion). In addition, neosfer develops its own prototypes and venture building projects and is always in exchange with network partners."We believe in adding value through collaboration - be it with startups, network partners or customers - in order to identify and jointly tackle the best possible solutions," says Matthias Lais, Founder of main incubator and Managing Director of neosfer. "Technology is not an end in itself for us, but always a tool to generate real customer value”. With the first edition of the Impact Festival last year, the company set an important milestone, linking startups from the ESG sector with established companies and investors to accelerate sustainable transformation. They want to build on that success this year as neosfer GmbH: Impact Festival 2022 will take place on October 5 and 6, 2022 in Offenbach am Main.

As one of the first innovation units and early-stage investors on the market, main incubator has already been part of the Commerzbank Group since 2013. Since its foundation, the company has successfully brought many innovations to the bank and thus actively contributes to the establishment and expansion of the bank's digital transformation. With the rebranding and the deliberate expansion to sustainability, neosfer is scaling its model in line with the strategy of Commerzbank AG.

*** Press contact neosfer Dennis Eberlein +49 170 9183236 dennis.eberlein@neosfer.com

Press contact Commerzbank Dennis Bartel +49 69 136-26528 dennis.bartel@commerzbank.com

*** About neosfer neosfer is the early-stage investor and innovation unit of Commerzbank Group. It investigates future technologies that are relevant to business and society, promotes and develops sustainable, digital solutions, and brings them profitably to the bank and its customers. All of this is done through the three areas of invest, build, connect. It creates access to innovation through strategic venture capital (neosfer.invest), in-house development of technologies and business models (neosfer.build), and building ecosystems around the sustainable and digital future of society (neosfer.connect).

With a portfolio of currently 23 digital and sustainable startups, neosfer has always kept its eyes on the future and is continuously developing. Some successful prototypes, such as the Lissi project, the blockchain-based identity network for self-determined identities, have already emerged from this and are being used in the Commerzbank Group. Through its own events, such as the monthly tech startup event series "Between the Towers" and the Impact Festival, the company strengthens its network in the innovation, venture and sustainability sectors.

neosfer GmbH, or neosfer for short, is a wholly owned subsidiary of Commerzbank AG based in Frankfurt am Main.

About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with almost 46,500 employees.

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We kindly ask for your attention to the police press release and the behavioural information contained therein.

*** Press contact Silvana Herold +49 69 136-46646 Sascha Ullrich +49 69 136-82349

Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with almost 46,500 employees.

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Commerzbank AG invites its shareholders to its regular Annual General Meeting (AGM) on Wednesday 11 May 2022. Due to the Covid pandemic, the event will once again take place virtually without the physical presence of the shareholders or their proxies. The AGM will be transmitted live online beginning at 10 am. Shareholder voting rights can be exercised by way of absentee ballot or by granting proxy to the voting right representative of the company.

In order to enable an interactive exchange with its owners, the Bank is again preparing a way to communicate which exceeds legal requirements. Shareholders may submit their questions via an online electronic system (InvestorPortal) until the day before the AGM. Those shareholders who have submitted questions in due time before the event will also be given the opportunity for follow-up questions during the AGM via the portal. Shareholders may also submit written statements and short video messages by the end of 8 May 2022 which will be made available on the InvestorPortal. These messages may also be broadcast during the AGM. In addition to the letter to the shareholders from the Chairman of the Supervisory Board, Helmut Gottschalk, which is published with the invitation, the advance manuscripts of the speeches by CEO Manfred Knof and the Chairman of the Supervisory Board will be made available online presumably on 6 May 2022.

Of particular note are the following items of the agenda:

Election of the auditor (item 4) The change of auditor is to be completed with the AGM in 2022. The AGM in 2021 had already elected KPMG as the new auditor for interim financial statements in the period after 31 December 2021 until the AGM in 2022. Now, the election of KPMG as auditor for the entire financial year 2022 is on the agenda.

Approval of remuneration report (item 5) For the first time, shareholders will decide on the approval of the remuneration report for the past financial year. In future, the remuneration report will be submitted to the AGM for approval every year.

Remuneration system for the Board of Managing Directors (item 6) The system for the remuneration of the Board of Managing Directors is to be refined. The aim is to reduce complexity, increase clarity and transparency, and strengthen the performance orientation. In addition, the variable remuneration will be more closely linked to the sustainable development of the Bank. For this purpose, ESG – i.e. Environmental, Social, Governance – objectives are anchored as part of the Group’s target. Furthermore, a share ownership guideline will be introduced for the Board of Managing Directors and the share-based part of variable compensation will be increased to strengthen the identification with the company and to support a sustainable business performance. The adjustments to the remuneration system for the Board of Managing Directors shall also support the successful transformation of Commerzbank in the best possible way.

Amendments to the Articles of Association concerning Supervisory Board compensation (item 7) The remuneration of the members of the Supervisory Board is to be standardised with regard to the additional compensation for the membership in the committees. This takes account of the extended tasks and the increased responsibility and workload of the committees. Furthermore, the basic structure of the remuneration system for the members of the Supervisory Board is to remain unchanged.

Shortening term of office of Supervisory Board members (item 8) The AGM is to decide on amendments to the Articles of Association for the term of office of the Supervisory Board members. It is planned to shorten the regular term of office from five to four years. This addresses the discussion about the term of office for members of supervisory boards, which is sometimes considered as too long by international standards. In addition, the AGM shall be granted the right to determine an even shorter term of office when electing the representatives of the shareholders. Such an amendment in the Articles of Association will furthermore enable the AGM to establish staggered terms of office instead of a uniform term of office of the representatives of the shareholders in the Supervisory Board. This can increase the continuity and flexibility of the Supervisory Board with regard to its members because no longer will all representatives of the shareholders in the Supervisory Board have to be newly elected at a single general shareholders’ meeting. A decision about the future concept for the terms of office of the representatives of the shareholders in the Supervisory Board which goes beyond shortening the regular term of office to four years for all members of the Supervisory Board has not yet been made with the proposed amendments to the Articles of Association. However, the amendments create the greatest possible flexibility in future Supervisory Board elections.

As in previous years, the speech of the CEO and the statement by the Chairman of the Supervisory Board will be transmitted live and will be available publically on 11 May 2022 at www.commerzbank.com/agm. The hashtag on Twitter for the AGM is #CobaHV. The full details of the invitation to the 2022 AGM, including the agenda and explanations of the individual items, can also be found at www.commerzbank.com/agm.

*** Press contact Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

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At its Capital Markets Day on Tuesday, Commerzbank announced improved medium-term financial targets associated with its “Strategy 2024”. In view of the expected positive development in its customer business and the rising interest rates in Poland, the Bank has increased its revenue target for the 2024 financial year by around €400 million to €9.1 billion. In 2024, the Bank aims for an operating result of €3 billion; it had initially planned for an increase to €2.7 billion. With this, Commerzbank sees the potential to return more capital to its shareholders than previously planned. In total, the Bank intends to distribute €3 billion to €5 billion to shareholders through dividends and potential share buybacks until the 2024 financial year. For 2024, the Bank now expects a return on tangible equity of more than 7% for 2024.

“The good progress of our transformation and our strong customer business provide us with a tailwind. In view of the positive expectations for the coming years, we aim to return more capital to our shareholders than previously planned. We intend to offer our investors attractive returns and to distribute capital in a reliable manner. This is a cornerstone of our strategy,” said Manfred Knof, Chief Executive Officer of Commerzbank.

The total revenues of about €9.1 billion now expected for the 2024 financial year are €600 million higher than the figure for 2021. At the presentation of its “Strategy 2024” one year ago, the Bank had expected revenues of €8.7 billion for 2024. The increased target is mainly due to additional revenues at mBank as a consequence of growth and the higher interest rates in Poland. For its Private and Small-Business Customers segment in Germany and its Corporate Clients segment, the Bank plans for further moderate growth. Possible interest rate hikes by the European Central Bank are not included in the revenue expectations. If rate increases occur, substantial additional revenues would be possible.

The higher revenues at mBank in Poland are offset to some extent by additional costs from inflation. Consequently, Commerzbank has slightly adapted its cost target for 2024 , from €5.3 billion to €5.4 billion. In the 2021 financial year, the costs at the Group were €6.7 billion. As the increased cost target will be more than compensated by higher revenues, Commerzbank now expects a cost income ratio of 60% for 2024; the previous target was 61%. The new target for the operating result is €3 billion in 2024 which is €300 million more than previously planned. In 2021, the Bank generated an operating result of almost €1.2 billion.

“We expect to continue with the positive momentum seen last year and are lifting our targets for 2024. We now expect higher revenues as well as a higher operating result than we aimed for at the beginning of our ‘Strategy 2024’. As the effects of possible increases of Euro interest rates are not included in our targets, we see further upside potential,” said Bettina Orlopp, Chief Financial Officer.

With its “Strategy 2024”, Commerzbank is developing into the digital advisory bank for Germany, which stands for customer-centricity, digitalisation, sustainability, and profitability. On the path to achieving this goal, it will reach further milestones in 2022. From autumn onwards, the central advisory centres are scheduled to start operations at all 12 planned locations and customers will gain access to personal advice at these sites. The optimisation of the branch network will be concluded by the Bank, with the number of branches reduced by around a further 100 to reach the target size of 450. The personal service for premium customers with high advisory needs will be further expanded by offering new products in asset and wealth management. “We are aligning our resources to areas relevant to our customers and are united in our aim to positively surprise customers with our products and services – digitally and personally,” said Thomas Schaufler, Member of the Board of Managing Directors responsible for the Private and Small-Business Customers segment. “A clear customer focus will be key to reaching our profitability goals”.

The Bank has also set clear targets for efficiency gains in its Corporate Clients segment. It confirms its goal of reducing its proportion of business with low RWA efficiency to 22% by 2024. In 2021, it had already reduced the proportion more strongly than planned by 5 percentage points to 29%. In addition, the Bank will continually expand its digital product offering through to 2024.This year, Commerzbank will enlarge its direct bank offering for further corporate clients, introduce the new coverage model for its SME clients, and continue with the streamlining of its international network. The objective is to have closed 10 of the 15 locations scheduled for closure by the end of the year. “We are and will remain the Bank for Germany’s Mittelstand and are deeply rooted in the German regions. We are also the leading financier of Germany’s foreign trade and are located internationally where our clients need us,” said Michael Kotzbauer, Member of the Board of Managing Directors responsible for the Business Segment Corporate Clients. “We are a highly innovative, strategic partner for our clients and will actively accompany them into the future”.

Further potential for the financial performance of the Bank is provided by CommerzVentures. As of 1 April 2022, Commerzbank will launch its third venture capital fund since 2014. This fund will have a volume of €300 million which means it is €50 million larger by volume than the first two funds together. In past years, CommerzVentures has made positive contributions to the revenues of the Bank. The investment focus of the third fund will once again be on companies from the fintech and insurtech environment. Newly included will be start-ups focussing on crypto-technology and decentralised finance, on blockchain-based decentralised applications for the financial sector, as well as technology companies at the interface between financial services and sustainability solutions known as “climate fintechs”.

The Bank intends to further accelerate the pace when it comes to sustainability. The volume of sustainable financial products is to increase to €207 billion in 2022, after it had risen to €194 billion in 2021. The commitment is to channel €300 billion into sustainable products by 2025. The core element of the sustainability strategy is the net-zero target. By 2050 CO2 emissions of the entire loan and investment portfolio are to be reduced to net zero. The management of the CO2 intensity is currently being launched with using the methodology of the “science-based targets initiative”. Commerzbank has begun to set ambitious targets to reduce the CO2 footprint of its customer portfolios and is the first German bank to do so. It has already determined targets for two CO2-intensive industries by 2030: the emissions related to the electricity generation loan portfolio will be reduced by more than 75% and those of the automotive manufacturers portfolio by more than 45%. A further milestone will be reached in the third quarter of 2022 when the Bank will set concrete reduction targets for all the relevant industries in its loan and investment portfolios.

*** Press contact Sascha Ullrich +49 69 136-82349 Maurice Farrouh +49 69 136-21947

About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

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In the first year of its transformation, Commerzbank has returned to profitability despite high one-time charges of nearly €2 billion and posted a net result of €430 million. The basis for this was the positive development of its customer business with a stabilised net interest income and a significantly higher net commission income. The Bank has also reduced its running costs as planned. Additionally, the risk result in the second year of the pandemic was significantly lower. Overall, the Bank generated an operating result of almost €1.2 billion. The Common Equity Tier 1 (CET 1) ratio improved to 13.6% providing a solid basis for the further transformation.

“In the first year of the transformation, we have delivered on our promises. We have resolutely moved ahead with our strategic initiatives. This increases our confidence that we will achieve our ambitious goals for 2024,” said Manfred Knof, Chief Executive Officer of Commerzbank. “2022 will be a decisive year in the implementation of our strategy. We intend to continue with the successful customer business of the past year and increase the net result to more than €1 billion. This means that we will aim to pay a dividend for the 2022 financial year. For the coming years, we have decided on a clear capital return policy”.

The Bank’s capital return policy provides for dividend payments in the coming years of 30 to 50% of the net result after deduction of AT 1 coupon payments. For the year 2022, a pay-out ratio of 30% is initially planned if the Bank meets its targets. Prerequisite for a dividend is a CET 1 ratio, which is at least 200 basis points above the regulatory requirement (MDA threshold) even after a dividend payment. In addition to dividend payments, the capital return policy provides for the possibility of share buybacks subject to the further successful execution of “Strategy 2024” and a regulatory approval.

Commerzbank has consistently tackled the implementation of its “Strategy 2024” in the past year, with which it intends to realign its business model to the needs of its customers, streamline the organisation, and modernise processes. Key flagship projects were successfully launched on the path to becoming the digital advisory bank for Germany. The first three advisory centres for private customers began to operate. In the Corporate Clients segment, direct banking support and services have been piloted for the first customers.

The Bank also has set ambitious sustainability goals with the net-zero target as its key element. By 2050, the net CO2 emissions of the entire loan and investment portfolio will be lowered to net zero. The Bank intends to increase its sustainable business volume to €300 billion per annum by 2025. In 2021, the volume of sustainable financial products already rose by 88% to €194 billion. With a tougher policy on fossil fuels, Commerzbank is pushing the coal phase-out and the transformation of the economy.

The Bank made important progress towards sustainably higher profitability. The framework agreement for the necessary personnel reduction was reached with the employees’ representatives, and the negotiations on the future target structure were successfully concluded. In total, the Bank will reduce headcount by approximately 10,000 full-time positions in gross terms by 2024. Especially thanks to successful voluntary and early retirement programmes, a reduction of more than 6,000 positions has already been fixed by corresponding individual contracts with employees. In total, the Bank had nearly 36,700 full-time positions at the beginning of 2022, almost 2,800 less than one year ago. To optimise its branch network, the Bank further reduced the number of locations from about 800 to around 550. This means that the Bank is progressing well towards the target size of 450 branches. Before the pandemic, the Bank had approximately 1,000 branches.

The streamlining of the international network has proceeded more quickly than originally expected. During 2021, the Bank closed 6 out of the 15 foreign locations scheduled for closure. In addition, an agreement was reached on the sale of the Hungarian subsidiary Commerzbank Zrt. Moreover, the agency network in Switzerland has already been decommissioned. To optimise its capital market business, Commerzbank entered a comprehensive cooperation in equity brokerage and equity research with ODDO BHF. Good progress has also been made to increase in capital efficiency in the Corporate Clients segment. The proportion of the business with a low RWA efficiency was reduced to a greater extent than planned – by 5 percentage points to 29% in 2021.

Commerzbank increased its revenues in the 2021 business year by a total of 3% to €8,459 million (2020: €8,186 million). This already includes the announced additional charges of €600 million for provisions in connection with the foreign currency loans of mBank. In contrast, a positive effect was seen not only from the extraordinary income from the Targeted Longer-Term Refinancing Operations (TLTRO) of the European Central Bank (ECB), but also from the contribution of almost €220 million from CommerzVentures.

A clear upwards trend was seen in securities business which led to an increase of the underlying net commission income by approximately 9% to €3,616 million (2020: €3,320 million) in 2021. Given the negative interest rate environment, the underlying net interest income amounted to €4,617 million (2020: €4,996 million). However, net interest income improved from quarter to quarter thanks to higher contributions from lending business and the expansion of pricing for large deposits.

The risk result in the past year was minus €570 million, a significantly lower level than in the previous year (2020: minus €1,748 million). The ratio of non-performing loans (NPE) improved as of the end of December to a very low 0.9% (end of December 2020: 1.0%). This confirms the high quality of the Bank’s loan portfolio. The additional provision for expected Covid effects, the so-called top-level adjustment, amounted to €523 million as of the end of the year. It remained almost unchanged compared to the end of 2020 and is still available as a provision to cover the direct and indirect effects of the pandemic.

In the past year, the total costs amounted to €6,706 million (2020: €6,672 million). This also includes the one-time write-off of €200 million for ending the outsourcing project for securities settlement in the second quarter. Excluding this one-time charge, the Bank was able to reduce its costs as planned to €6.5 billion. The operating costs were lowered by 2% to €6,039 million (2020: €6,160 million). Compulsory contributions amounted to €467 million (2020: €512 million).

The operating result increased in 2021 to €1,183 million (2020: minus €233 million); in the fourth quarter this figure was €141 million (Q4 2020: minus €328 million) despite the high additional provisions at mBank. After deduction of the restructuring expenses of €1,078 million and after taxes and minority interests, the net profit in the past year was €430 million (2020: minus €2,870 million).

The Common Equity Tier 1 (CET1) ratio improved significantly by the end of 2021 to 13.6% (end of 2020: 13.2%) due to an increase of CET 1 among others thanks to the positive net result and due to reduced risk-weighted assets (RWA). The buffer to the current regulatory requirement (MDA threshold) of 9.4% increased to around 420 basis points (end of 2020: 370 basis points).

“Thanks to the upwards trend in customer business, we were able to generate an operating result of more than €1 billion. The net result is also positive although we had to shoulder very high one-off charges. The restructuring expenses, the increase in provisions for Swiss francs loans and the extraordinary write-off due to the ending of the outsourcing of securities settlement totalled to nearly €2 billion. This shows the profit potential of our Bank,” said Bettina Orlopp, Chief Financial Officer of Commerzbank.

Development of the segments

The Private and Small-Business Customers segment increased its volume of securities and loans in Germany by €50 billion to €340 billion. Of the growth of around €42 billion in the securities volume more than €15 billion came from net new inflows. The mortgage business grew by a further 7% to around €92 billion in the past year. Customer deposits also developed positively. The Bank was thus able to lower the volume to €147 billion and to introduce pricing on more deposits. Currently, private customer deposits in the amount of €18 billion are being priced.

The Private and Small-Business Customers segment was able to increase its underlying revenues in all customer businesses in Germany in 2021. The Private Customers division alone saw a revenue growth of more than 6%. The Small-Business Customers division and Commerz Real also contributed higher revenues. There was also a strong upwards trend in the operating business at mBank. Driven by higher interest rates, the net interest income of the Polish subsidiary increased by about 25% in the fourth quarter alone compared with the final quarter of 2020. The net commission income rose by 15%. However, overall revenues of mBank declined in 2021 as a result of the considerable increase in provisions for the Swiss franc loan portfolio. In total, the underlying revenues of the Private and Small-Business Customers segment in 2021 were €4,708 million (2020: €4,825 million). Reduced costs and a lower risk result led to an operating result of €575 million (2020: €370 million). Without the additional provisions at mBank the result would have been €1,175 million (2020: €599 million).

Thanks to a strong fourth quarter, the Corporate Clients segment was able to maintain its underlying revenues for the full year at a virtually stable level of €3,113 million (2020: €3,157 million). Growth was posted by the Mittelstand division, while the underlying revenues in the International Corporates and Institutionals divisions declined as expected in line with the strategic refocussing. In the final quarter, International Corporates and Mittelstand increased their earnings year-on-year, while Institutionals remained stable. Thanks to the low risk result and successful cost management, the segment generated a total operating result of €656 million (2020: minus €465 million) in the past year.

Outlook

Commerzbank anticipates an increase in underlying net interest income and net commission income in the 2022 financial year. This reflects higher expected net interest income at mBank thanks to the rate increases in Poland and should compensate for potential churn effects as a result of the efficiency measures. The costs are to be reduced to €6.3 billion. This includes higher costs at mBank due to inflation, while Commerzbank is sticking to its cost-cutting path in Germany. For the risk result, the Bank anticipates burdens of less than €700 million. The CET1 ratio is expected to exceed 13%. All in all, the Bank expects a net profit of more than €1 billion, and aims to pay a dividend for the 2022 financial year. A dividend pay-out ratio of 30% of the net result after deduction of AT 1 coupon payments is planned. The outlook is based on the assumption that there will be no substantial increase in the provisions for the Swiss franc loan portfolio of mBank.

The figures presented in this press release for the year 2021 are preliminary and have not been audited.

*** Press contact Sascha Ullrich +49 69 136-82349 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 28,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2021, Commerzbank generated gross revenues of some €8.5 billion with around 46,500 employees.

*** 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.

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“Since last autumn I have gradually formed the resolution, after 38 years with Commerzbank, to enter a new phase of my life. This is the right moment. By the end of this year, most aspects of the personnel transformation will be underway. When a tough job reduction programme comes to an end, it is by no means unusual for the responsible board member to seek new professional opportunities. I am now stepping aside to allow the Bank to place the responsibility for my division in new hands. Until then, however – as before – I will be fully committed to perform my task in the interests of Commerzbank and its employees,” said Sabine Schmittroth.

Helmut Gottschalk, the Chairman of the Supervisory Board of Commerzbank, said: “Sabine Schmittroth’s invaluable achievements on behalf of Commerzbank are undeniable. She has made essential contributions to the excellent progress in our transformation into a digital advisory bank for Germany. We owe her our respect and gratitude above all for her impressive success in filling the dual role as Board member with responsibility for HR and the Private and Small Business Customers Segment for over a year. We greatly appreciate Sabine Schmittroth’s decision to remain fully committed to her role as Board member responsible for HR until the end of this year, thus ensuring a smooth succession”.

CEO Manfred Knof said: “I fully respect Sabine Schmittroth’s decision. All of us on the Board of Managing Directors have worked very well with her. We owe a great deal of the credit for the success of our talks with the employee representative bodies over the past year to her. We’re delighted that Sabine Schmittroth, with her enthusiasm and desire to make a difference, will remain part of the Board of Managing Directors until the end of this year”.

Sabine Schmittroth has been a member of the Board of Managing Directors of Commerzbank AG since January 2020 and is currently responsible for Human Resources. From October 2020 until November 2021 she was also responsible for the Private and Small Business Customer Segment. After joining Dresdner Bank in 1984 – following stints in customer advisory services and the HR department – she held various management positions in the private customer business from 1999 onward, most recently as the director of the Frankfurt sales region. In 2009, she became management spokesperson of Commerz Direktservice GmbH and was appointed Director of Sales Management Branch Banking in 2011. From 2015 to 2019 Sabine Schmittroth served as Member of the Divisional Board of Private and Small Business Customers with Commerzbank AG.

Since March 2021, Sabine Schmittroth has also served as the chairwoman of AGV Banken, the Employers’ Association of the German Banking Industry, which she joined in January 2020.

*** Press contact Silvana Herold +49 69 136 46646 Dennis Bartel +49 69 136 26528

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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LONDON & FRANKFURT: A new industry report titled "Relevant Advanced Technologies for Trade and Supply Chain Finance" launched by Commerzbank, in partnership with the Fraunhofer Institute for Material Flow and Logistics (IML), reveals that the trade and supply chain finance industries are at a turning point, with emerging technologies and the increasing volume of accessible data setting in motion the rapid evolution of new ecosystems.

Combining the expertise of application-oriented scientists from Fraunhofer IML with trade finance specialists at Commerzbank, the paper underpins the bank’s commitment to shape the trade finance business of the future. The joint research effort shows that digital advancements are pushing the development of improved business models to meet the need for increased operational efficiency and alignment with more complex sustainability goals.

The report identifies the key innovations that are forming the building blocks of the new trade finance ecosystems, including:

Big data and Artificial Intelligence (AI)

As one of the world’s most data-intensive industries, trade and supply chain finance is transforming at a rapid pace with the ability to share and process vast volumes of complex information. Big data has been highlighted as an “indispensable” source of technological innovation but can only be effective if implemented in tandem with other technologies.

“Big data analytics can help financial institutions to leverage the wealth of trade data stored in multiple databases across different geographies along the supply chain […] by identifying data trends and flagging anomalies, banks can detect fraud at an early stage,” states the whitepaper.

With global data set to grow by 500% between 2018 and 2025 , the report explains that effectively processing this mass of information will be a main challenge for banks and trade participants, but also enables AI and machine learning solutions to automate decision-making processes and forecast trends in risk management, financial analytics, and portfolio management.

Blockchain, Distributed Ledger Technology (DLT), and smart contracts

The report looks at the growing opportunities for businesses in the form of B2B platforms, which can reduce boundaries, improve transparency, and support automation. It predicts that these platforms will profoundly alter the way in which international trade is undertaken. One such example is the blockchain-enabled, distributed trade network Marco Polo. Developed by an international consortium including Commerzbank, the solution significantly increases speed and transparency of trade business by automatically matching digital trade data.

Furthermore, the whitepaper also explains that DLT and blockchain technology could reduce trade finance operating costs by 50 to 80% and improve turnaround times three- to four-fold. The barriers removed could lead to more than US$1 trillion in new trade over the next decade.

Internet of Things (IoT) and sensorics

By 2030, the number of internet-connected objects will reach more than 125 billion, according to a preliminary forecast by the American Bankers Association. The networking of each object opens new revenue opportunities in novel demands on payment and finance flows.

One application scenario in supply chain finance arises through the creation of automated payment solutions triggered by sensor data. By linking the physical and financial supply chain using IoT, it is possible to design fully automated order processing along the entire supply chain.

“Supporting Germany’s trade corridors is in Commerzbank’s DNA,” comments Nikolaus Giesbert, Divisional Board Member at Commerzbank, “and we finance around 30% of Germany’s foreign trade. That is why it is vital we have our finger on the pulse of the latest technological advances in trade finance and deliver enhanced solutions to our clients. We very much value our partnership with Fraunhofer and hope this whitepaper serves as a catalyst to drive further discussion and action across the industry”.

Prof Dr Michael Henke from Fraunhofer IML in Dortmund adds: “The trick to reach the plateau of productivity quickly is to combine all the technologies we have in our hands today. That’s what we are doing in our collaboration with Commerzbank, where we’re consistently integrating the financial flow with the material- and information flow”.

This whitepaper is the most comprehensive body of research currently available looking at the trade and supply chain finance sector and comes at a pivotal time for trade participants. It is the culmination of a long-standing partnership between Commerzbank and the prestigious research organisation Fraunhofer IML.

Download White Paper (PDF, 5.9 MB)

*** Press contact Barbara Stein +49 69 136 46273

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

*** Disclaimer and Forward-Looking Statement 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.

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Commerzbank AG will sell its 100% subsidiary Commerzbank Zrt. to Erste Bank Hungary Zrt. Both banks signed a contract to this effect today. As part of its “Strategy 2024”, Commerzbank announced in February that it would adjust its foreign presence. “We are consistently aligning our international network with the needs of our core customers and are focussing on international businesses with reference to Germany. We will continue to be the strong international banking partner in the most important trade corridors of the German economy but will need fewer own locations than before,” Chairman of the Board of Managing Directors of Commerzbank Manfred Knof explained.

The transaction in Hungary is still subject to the approval of the antitrust and banking supervisory authorities. It has been agreed to not disclose the purchase price. The closing of the sale and thus the start of the operative implementation of the transaction is planned for the second half of 2022. At the same time, a comprehensive cooperation agreement signed between Commerzbank and Erste Group will also enter into force. With this partnership, Commerzbank will be able to offer its corporate customers easy access to selected markets in Central and Southeastern Europe via its cooperation partner Erste Group. Commerzbank will remain present in Eastern Europe with its own locations in Poland, the Czech Republic, and Russia.

Focus on costumer orientation

Commerzbank Zrt., based in Budapest, was founded in 1993 as one of the first subsidiaries of West German banks in Hungary. Over the course of its almost 30-year history, the Hungarian subsidiary of Commerzbank has successfully established itself in the market with a comprehensive range of products for corporate clients. In addition to international customers, the Commerzbank subsidiary serves Hungarian SMEs and large customers with a team of about 100 employees. The main income is generated by the credit and trade finance and currency business. The bank is profitable and total assets amounted to approximately HUF400 billion (approximately €1 billion) in 2020.

Michael Kotzbauer, Member of the Board of Managing Directors responsible for the Business Segment Corporate Clients, said: “With the sale, we are becoming more efficient and with the cooperation agreement, we will continue to guarantee our customers access to the Hungarian market via Erste Group”. Kotzbauer further emphasised: “We are sure that with Erste Bank Hungary Zrt., we have found a buyer who is close to us in terms of culture, offers convincing products and services for our customers, and with whom we can execute a smooth transition for everyone involved in a cooperative manner”.

Erste Bank Hungary covers the entire spectrum of financial services. Measured by the number of customers, branches, and ATMs, it ranks among the top three banks in Hungary. Erste Bank Hungary has been a member of Erste Group, one of the largest providers of financial services in the eastern part of the EU, since 1997.

Bernd Spalt, Chief Executive Officer of Erste Group: “This acquisition is an important step for our corporate business in Hungary and perfectly complements our existing customer base in this segment. In addition, it will allow our clients to benefit from the excellent product knowledge, especially in fields of cash management and trade finance, that Commerzbank’s strong track record in Hungary ensures. Coming on the back of our purchase of the Hungarian online broker Random Capital earlier this year, this newest acquisition marks a further step in our pursuit of a targeted growth strategy in Central and Eastern Europe”.

Streamlining of foreign network progressing

For Commerzbank, the sale of its Hungarian subsidiary is a further step to the strategic streamlining of its presence abroad. The Bank plans on exiting 15 foreign locations by 2024. In Europe, these are the offices in Barcelona, Bratislava, Brussels, and Luxembourg, and, in Asia, Hong Kong. The Dubai office will continue as a representative office in the future. In addition, the network of international correspondent banks will be reduced from around 1,600 to around 1,300. The Bank had initially expected to pull out of 3 locations in the current year.

In the first nine months, however, the locations in Baku, Belgrade, Kuala Lumpur, and Jakarta have already been closed. With its presence in almost 40 countries in the future, the Bank remains present wherever it is important for its customers.

*** Press Contact Monika Arens +49 69 136-29673 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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Commerzbank has issued a new policy for fossil fuels – with the goal of forcing the coal phase-out by 2030 and pushing forward the sustainable transformation of the real economy. “With the new policy, we are taking another major step towards net zero. We are underscoring our commitment to channelling investment flows towards the Paris climate target and pushing ahead with the transformation. This is also demonstrated by the fact that we have reduced our coal portfolio by half in just two years,” says Manfred Knof, Chairman of the Board of Managing Directors of Commerzbank. Currently the coal portfolio amounts to approximately €1bn. This corresponds to around 0.2% of the Bank’s total portfolio.

When the policy comes into force on 1 January 2022, the upper limit for companies with ties to the coal sector will be substantially reduced and globally harmonised. Existing clients that currently use coal to generate 20% or more of their sales or power production have time until 2025 to draw up a plan for an exit from coal no later than 2030. To this end, Commerzbank will enter into an intensive exchange with its clients. Moreover, Commerzbank will not commence new business relationships with companies that generate more than 20% of their sales or power production with coal. The same applies to potential new clients planning to expand coal-related activities. Project financing is limited exclusively to necessary modernization of existing coal-fired power stations and is subject to a critical assessment of each case. This represents a significant tightening of the Bank’s disqualification criteria. Previously, a cap of 30% or, internationally, of 50% applied.

The news policy also refers to business with companies from the oil and gas sectors. Starting on 1 January 2022, this will be covered by a mandatory policy for the first time: existing business relationships in these sectors will be subject to regular reviews in terms of environmental and social criteria. In addition, Commerzbank will not enter into new business relationships with companies planning to expand oil and gas activities. In general, Commerzbank will not provide financing for new oil-fired power stations or oil and gas extraction projects. This applies to both conventional and unconventional extraction methods.

Michael Kotzbauer, Divisional Board Member Corporate Banking, adds: “We are supporting our clients in their transformation and providing them with the necessary planning certainty. But if we don’t see real efforts on the client side to build a sustainable business model, we will terminate the business relationship”.

The data for the new policy is obtained from the Global Coal Exit List and the Global Oil and Gas Exit List, which are created and updated by the NGO Urgewald. The fuel policy replaces the coal policy of 2016, which already prohibited the financing of new coal mines and power stations.

Sustainability at Commerzbank

Commerzbank is committed to the Paris climate and has made sustainability an integral part of its strategy. The Bank joined the UN Global Compact in 2006. 2019 it has been among the founding signatories of the Principles for Responsible Banking.

The net zero target is a core element of the Commerzbank sustainability strategy. The goal of reducing the CO2 emissions of its entire lending and investment portfolio to net zero is to be realised by 2050 at the latest. This commitment was also made by joining the UNEP FI Net-Zero Banking Alliance in April 2021. For its own banking operations, the Bank aims to reduce CO2 emissions to net zero by 2040. In managing its portfolio in the directions of net zero, Commerzbank applies the scientific approach of the Science-Based Targets Initiative (SBTI), of which it is a member. The Bank will define interim SBTI targets for 2030 for all relevant portfolios by August 2022.

*** Press contact Dennis Bartel, +49 69 136 26528 Beate Schlosser, +49 69 136 22137

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

Disclaimer and forward-looking statements 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.

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Commerzbank and the employee representatives have successfully completed negotiations on the implementation of Strategy 2024. “Just nine months after the announcement of Strategy 2024, we have finalised the Bank’s target structure in Germany,” said Manfred Knof, Chairman of the Board of Managing Directors of Commerzbank. “With the agreement on the partial settlements of interests, we have reached an important milestone. We can now continue moving full speed ahead with the transformation. I wish to thank all involved parties for the constructive and successful cooperation that enabled us to achieve this positive result so quickly”.

The agreement creates clarity on the structure of all group divisions in Germany. With these new structures, the Bank will be significantly leaner than before. The number of management positions will decrease by around 30%. “All employees now have transparency with regard to the future structures. This creates clear perspectives for the future,” said Sabine Schmittroth, Board Member responsible for Human Resources.

With the agreement on the partial settlements of interests, the framework social plan approved in May 2021 will also come into force. Effective immediately, employees can utilise the instruments for a socially responsible headcount reduction. “We offer our employees a wide range of instruments appropriate for the phase of life where they find themselves,” said Sabine Schmittroth. “We’re on the right track to implement the headcount reduction as socially responsible as possible”.

The Bank and the employee representatives also completed negotiations on the terms of an in-house collective agreement on the advisory centre that will come into force when the target structure takes effect no later than in the fourth quarter of 2022. The in-house collective agreement permits work on Saturdays and guarantees the continued operation of all advisory centre locations until 31 December 2027. The advisory centre is a cornerstone of the Bank’s strategy in the Private and Small-Business Customers segment. In the future, it will complement the onsite advisory services in 450 branches and the Bank’s online and mobile banking services.

Commenting on the agreements, Uwe Tschäge, the Chairman of the Central and Group Works Council, said: “With the partial settlements of interests and the in-house collective agreement along with the site guarantees for the advisory centre, we have ensured appropriate weighting of employee interests in the transformation of Commerzbank. We will continue to exert our influence to ensure that the restructuring gives due consideration to social factors and that the Bank continues to provide dependable working conditions”.

With Strategy 2024, Commerzbank is repositioning itself for its customers. The goal of the restructuring is to combine the advantages of a fully digitalised bank with personal advisory services, a consistent customer focus and sustainability. On the way to establishing long-term profitability, the Bank will reduce headcount by approximately 10,000 full-time positions in gross terms by 2024. More than half of the necessary headcount reductions are already ensured and contracted in a socially responsible way.

*** Press contact Dennis Bartel +49 69 136 26528 Andrea Bamberger + 49 69 136 53799

*** About Commerzbank

Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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After a strong third quarter, Commerzbank expects a positive net result for the full year. The operating result for the third quarter amounted to €472 million and has consequently increased almost threefold compared with the previous-year quarter. Over the first nine months, the Bank generated an operating profit of more than €1 billion. With a Common Equity Tier 1 ratio (CET 1 ratio) of 13.5%, the Bank continues to have a solid foundation for the transformation.

Commerzbank made further progress in implementing its “Strategy 2024”, most importantly with the transformation to become a digital advisory bank. In October, the first centralised advisory centres started operating. By the end of the year, around 750,000 customers from closed branches are to receive advisory services from the three locations in Berlin, Quickborn, and Düsseldorf. A digital signature was launched in the Corporate Clients segment and is now being gradually expanded. Furthermore, Commerzbank was recently awarded the title of Germany’s most secure online bank.

Commerzbank confirmed its strong customer focus, being ranked once again as the leading trade finance bank for German companies. The Bank also continued to make progress with its sustainability targets. New business for green mortgage loans amounted to around €1.2 billion in the third quarter, meaning that they accounted for more than one quarter of business volume for new mortgages.

The Bank consistently pursued the strategic goal of higher profitability and achieved additional milestones in this process. After the successful implementation of the voluntary programme, more than half of the necessary personnel reduction has already been achieved in a socially responsible way. On the journey to a sustainably profitable bank, around 10,000 full-time positions are to be cut by 2024. In order to cushion the effects of the low-interest environment, the Bank reduced the allowance for pricing of high deposits from €100,000 to €50,000.

“The implementation of our strategy is proceeding according to plan and the operating business is also developing well. Despite the restructuring expenses, we are anticipating a positive net result for the full year,” said Manfred Knof, Chairman of the Board of Managing Directors of Commerzbank.

In the third quarter, Commerzbank generated solid revenues amounting to €2,006 million (Q3 2020: €2,033 million). Underlying net commission income rose by around 7% to €873 million. The main factors contributing to this were the securities business of Private and Small-Business Customers as well as the trade finance and payments businesses of Corporate Clients. Underlying net interest income decreased to €1,146 million (Q3 2020: €1,226 million). However, in the Private Customers business in Germany, net interest income increased by more than 2%, as higher contributions from lending business and the expansion of pricing for high deposits had a positive effect.

In the third quarter, the risk result of only minus €22 million was at a significantly lower level than in the previous year (Q3 2020: minus €272 million). The ratio of non-performing exposure (NPE ratio) remained unchanged at the low level of 0.8% (end of June 2021: 0.8%). Both values confirm the high quality of the Bank’s loan portfolio. The additional provision booked for the expected effects of the coronavirus pandemic in the past year – the top-level adjustment – amounted to €496 million at the end of September. Overall, it remained on an almost unchanged level in comparison with the previous quarter.

The Bank reduced total costs in the third quarter by around 5% year-on-year. In the first nine months, the costs amounted to €5,061 million (9M 2020: €4,996 million). These included a one-time write-off in the second quarter for the termination of the outsourcing project for securities settlement amounting to €200 million. Despite additional investments in digitalisation, IT, infrastructure and regulatory issues, the Bank managed to reduce operating costs, excluding the one-time write-off, by 2% to €4.458 million in the first nine months. The compulsory contributions at €402 million were also lower year-on-year (9M 2020: €445 million).

The operating profit went up in the third quarter to €472 million (Q3 2020: €168 million). After deduction of restructuring expenses totalling €76 million and after taxes and minority interests, the consolidated profit attributable to Commerzbank shareholders amounted to €403 million (Q3 2020: minus €60 million).

The Common Equity Tier 1 ratio (CET 1 ratio) increased slightly and was 13.5% at the end of September 2021 (end of June 2021: 13.4%). The buffer to the regulatory requirement (MDA threshold) of currently 9.4 % increased to around 410 basis points. At the end of September, the risk-weighted assets came down to around €175 billion (end of June 2021: €178 billion). RWA efficiency continued to improve.

“The figures for the third quarter are very encouraging. We achieved solid revenues while risk provisions remained at a low level, and we have our costs under control. Our capital ratio stays strong. This progress is giving us a tailwind,” commented Bettina Orlopp, Chief Financial Officer of Commerzbank.

Development of the segments

The Private and Small-Business Customers segment posted further growth in loans and securities in the third quarter. The year-on-year volume in Germany increased further, by around 20% to the current total of €325 billion. The growth in securities of around €3.6 billion compared with the previous quarter was almost entirely attributable to inflows of €3 billion net new money. The development of the mortgage business continued to be strong and grew by 7% to around €90 billion year-on-year. As a result of this, the loan volume increased by more than €2 billion to €119 billion compared with the previous quarter. The introduction of pricing on high deposits continued. Private customer deposits amounting to €16 billion have already been priced.

Overall, the Private and Small-Business Customers segment succeeded in increasing its underlying revenues by 5% to €1,219 million (Q3 2020: €1,163 million) in the third quarter. Business with private customers in Germany posted a year-on-year increase in revenues of 8% in the third quarter. Additional provisions of mBank amounting to €95 million for the Swiss francs loan portfolio had a negative impact. Supported by a risk result of €1 million, the operating result for the segment increased to €299 million in the third quarter (Q3 2020: €83 million).

In the Corporate Clients segment, underlying revenues in the third quarter decreased to €766 million (Q3 2020: €794 million) in line with the strategic realignment. While the Mittelstand and Institutionals divisions succeeded in slightly increasing their underlying revenues, they slightly decreased in the International Corporates division. Overall, the segment improved its operating profit to €221 million (Q3 2020: €73 million). In addition to lower costs, the segment benefited from a low risk result of minus €29 million (Q3 2020: minus €120 million). The segment’s risk-weighted assets (RWA) came down by €14 billion year-on-year and amounted to €79.5 billion at the end of September.

Outlook

The outlook for the full year continued to improve in the third quarter. Revenues in the full year 2021 will exceed the previous year’s. The Bank is targeting operational costs of around €6.5 billion. The one-time write-off of €200 million in the second quarter is in addition to this. The Bank is now expecting a risk result of less than €700 million. Overall, the Bank expects a positive operating result and a net profit for the full year. The Common Equity Tier 1 ratio is expected to be around 13.5% at year end – well above the targeted buffer of 200 to 250 basis points above MDA. The expectations are based on the assumption that there will be no fundamental change affecting the Swiss francs loan portfolio at mBank.

Press contact

Sascha Ullrich +49 69 136-82349

Erik Nebel +49 69 136-44986

Maurice Farrouh +49 69 136-21947

About Commerzbank

part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

Disclaimer

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Commerzbank pursues ambitious cornerstones for its sustainability strategy. The core of the sustainability agenda is the commitment to “net zero”. “We are expressly committed to the Paris Climate Agreement. That is why we have committed ourselves to reducing the CO2 emissions of our entire credit and investment portfolio to net zero by 2050 at the latest,” emphasised Manfred Knof, Chairman of the Board of Managing Directors. “We want to contribute to channelling more capital into sustainable economic activities in order to mitigate the consequences of climate change. Our most important goal is therefore to support our clients in their transformation into sustainably operating companies”. To this end, the Bank will mobilise around 300 billion euros by 2025. This corresponds to a tripling of the sustainable business volume compared to the end of 2020. “As a bank, we are financiers of the green transformation,” said Knof. “Hence, sustainability becomes a fundamental pillar of our business model”.

Sustainable business volume to be tripled to 300 billion euros by 2025 Commerzbank has made transparent which products are included in the sustainable business volume in its “Sustainable Finance Framework”, which was published in April 2021. In the corporate client business, this includes, inter alia, the support of sustainability-related syndicated loans and promissory note loans as well as issues of sustainability-related bonds. In the private client business, asset management and green mortgages are to be contributing to the growth of the sustainable business volume.

Coal portfolio halved to around 1 billion euros within two years Commerzbank has had a binding coal policy since 2016. Among other things, it stipulates that the Bank shall not finance any new coal-fired power plants or coal mines. In the past two years alone, the Bank’s coal exposure has been halved to around 1 billion euros. This corresponds to about 0.2 per cent of the total portfolio. The Bank is currently working on expanding the policy to include gas and oil. It is to come into force on 1 January 2022.

Measurement of carbon footprint of loan and investment portfolio in preparation The Bank will define specific CO2 reduction targets for the entire loan and investment portfolio by August 2022 in accordance with the requirements of the “Science-based Targets Initiative”. The initiative provides a scientifically sound methodology for measuring CO2 intensity. Commerzbank already joined a year ago, so far the only German bank among more than 50 European companies in the financial sector to do so.

The Bank is currently working on making the carbon footprint of its loan portfolio measurable and deriving measures that are necessary to achieve the climate targets. In a first step, it is focussing on CO2-intensive sectors such as energy production. Initial test calculations show that a reduction in CO2 intensity by more than 50 per cent will be necessary in this portfolio by 2030 in order to achieve the preliminary goals of the Paris Climate Agreement. An even higher reduction will be required for “net zero”. For the energy sector, the Bank intends to define concrete CO2 targets as early as by the end of the current year.

With regard to its own banking operations, Commerzbank aims to reduce CO2 emissions to net zero by 2040 at the latest. Since 2007, it has reduced its own CO2 emissions by 70 per cent, and its banking operations have been climate-neutral in Germany since 2015. By 2025, Commerzbank also aims at cutting the CO2 emissions by a further 30 per cent which corresponds to around 36,000 tonnes of CO2. Key measures to achieve this include the increasing restriction of flights for business appointments and the further energy-efficient refurbishment of real estate.

Regular dialogue forums ensure transparency of progress in sustainability By launching the new online event “Sustainability Dialogue”, the Bank will regularly report on its sustainability activities in the future. Viewers can participate directly in the virtual exchange by posing questions. “We want to make our progress in sustainability transparent. To this end, we are seeking continuous dialogue with interested stakeholders, from which we expect valuable impetus,” said Bettina Storck, Head of Group Sustainability Management. The first “Sustainability Dialogue” – which addressed the Bank’s sustainability agenda – took place today, 17 September 2021, with Chief Executive Officer Manfred Knof, Member of the Board of Managing Directors responsible for the Business Segment Corporate Clients, Michael Kotzbauer, and Chief Risk Officer Marcus Chromik.

*** Information Link to the audio file of the Sustainability Dialogue: Commerzbank AG - Nachhaltigkeitsdialog (available from approx. 1 p.m., only in German) Link to the Sustainable Finance Framework of Commerzbank

*** Press contact Dennis Bartel, +49 69 136-26528 Beate Schlosser, +49 69 136-22137

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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At today’s meeting, the Supervisory Board of Commerzbank made personnel decisions in order to establish the Board Team for the far-reaching transformation that has been set in train in the context of Strategy 2024.

Thomas Schaufler, currently Board Member for Retail Banking at Erste Group Bank AG in Austria, will take responsibility for Private and Small-Business Customers at Commerzbank on 1 January 2022. Currently, Sabine Schmittroth is responsible for this segment. The appointment of Thomas Schaufler to the Board of Managing Directors is still subject to the usual approval by the regulatory authority.

As already announced in June, Sabine Schmittroth will return to focusing fully on her role as Labour Relations Director. As part of the transformation and the associated implementation in human resources, this function is particularly important.

The Supervisory Board has also appointed Dr Jörg Oliveri del Castillo-Schulz as the new COO on the Board of Managing Directors. The appointment of Jörg Oliveri del Castillo-Schulz is still subject to the usual approval by the regulatory authority. Once this approval has been granted, he will succeed Jörg Hessenmüller, whose appointment as Member of the Board of Managing Directors at Commerzbank will end at the latest on 31 December 2021. Jörg Hessenmüller offered his resignation with the aim of giving the Bank the opportunity for a new beginning.

The Chairman of the Supervisory Board, Helmut Gottschalk, commented as follows on the new appointments: “The newly formed Board Team combines a long track record of management experience with great depth of specialist expertise and furthermore secures the necessary focus for implementing Strategy 2024”.

CEO Manfred Knof added: “The task now is to develop our full potential as a team and to consistently transform Commerzbank further – to become THE digital advisory bank in Germany, which stands for customer centricity, sustainability and profitability”.

Since January 2021, Thomas Schaufler has been Board Member with responsibility for Retail Banking at Erste Group Bank AG in Austria and Board Member of Erste Bank der österreichischen Sparkassen AG. Thomas Schaufler joined Erste Group already in 1997 and since then he has held various management positions in retail banking. In February 2016, he was appointed as Board Member of Erste Bank der österreichischen Sparkassen AG, where he is responsible for retail business, business with small businesses and independent advisors, private banking, asset management, marketing and product management. Thomas Schaufler is a Certificated European Financial Analyst and obtained a master’s degree at the University of Applied Sciences for Management & Communication.

Dr Jörg Oliveri del Castillo-Schulz is currently an independent consultant for strategy and transformation projects. As COO and CHRO, he was most recently responsible for the areas of IT, digitalisation, operations, sourcing and human resources as Board Member of IKB Deutsche Industriebank AG from 2016 to 2020. Jörg Oliveri del Castillo-Schulz is a business economist, he took a Master of Business Administration at Edinburgh University Management School and obtained his doctorate at the University of Edinburgh, UK. His professional career took him to various board and senior management positions at institutions including Deutsche Bank and at other financial services providers in Germany, Europe and the United Kingdom, where he was responsible for the transformation of business and operating models, companies also at national level, and for restructuring projects, sourcing activities and services.

Jörg Hessenmüller has driven forward the digital transformation of Commerzbank with great commitment. The technical and cultural initiatives were particularly important and these enabled him to give his board division a new profile. The agile cluster/delivery organisation “Campus 2.0” created by him received significant accolades throughout the sector.

Chairman of the Supervisory Board, Helmut Gottschalk commented: “We would like to thank Jörg Hessenmüller for his commitment as a Board Member and for his many years of cooperation at the Bank, with broadly-based management responsibility. We would like to wish him all the best for the future”.

*** Press contact Sven Korndörffer +49 69 136-22461 Silvana Herold +49 69 136-46646 Sascha Ullrich +49 69 136-82349

Disclaimer and Forward-Looking Statement

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Commerzbank has again demonstrated its resilience in this year’s stress test conducted by the European Banking Authority (EBA). In the adverse stress test scenario, the common equity tier 1 ratio (CET 1 ratio) came out at 8.2% at the end of the 2023 stress test horizon. In view of further tightened assumptions, for example a large and prolonged economic slump in Germany and a continuing additionally stressed low interest rate environment, the CET 1 ratio decreased by 502 basis points over the stress period. Also, an economic downturn of –3.9% cumulatively over the three-year time horizon to 2023 (2018: –3.3%) was simulated for Germany in addition to the real pandemic stress (Gross Domestic Product decrease of 4.8%) of the previous year.

The starting point for the stress test was the CET 1 ratio of 13.2% at the turn of 2020/21, which reflected not only the significant burdens resulting from the coronavirus crisis but also high expenses for the transformation of the Bank. In the baseline scenario of this year’s EBA review, Commerzbank’s CET 1 ratio is 13.3% in 2023. As of the end of March 2021, Commerzbank’s actual CET 1 ratio was 13.4%, well above the minimum regulatory requirement.

“The stress test result once again confirms Commerzbank’s healthy risk profile. We’ve demonstrated our resilience in a very tough stress scenario despite a difficult starting point in the pandemic environment,” said Marcus Chromik, Chief Risk Officer. “Commerzbank has comfortable liquidity and capital buffers. This gives us sufficient headroom for our transformation. Our customers can rely on us, and we’ve proved that during the coronavirus pandemic, which has been a very real stress test for almost a year and a half”.

The stress test assumed a static balance sheet and therefore did not take account of any current or future business strategies or management initiatives. It’s also not a forecast of Commerzbank’s profits. The results of the stress test feed into the Supervisory Review and Evaluation Process (SREP).

Further information on EBA’s publication of 30 July 2021 can be found at https://www.commerzbank.de/en/hauptnavigation/aktionaere/ir/stresstest.html.

*** Press contact Erik Nebel +49 69 136-44986 Sina Weiß +49 69 136-27977

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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Today, Commerzbank’s Board of Managing Directors decided to end the project for outsourcing securities settlement to HSBC Transaction Services GmbH with immediate effect. The reasons for the decision are technical implementation risks and changed market conditions. Due to the project stop, the Bank is anticipating an exceptional write-off of around €200 million in the second quarter of 2021. The write-off will not impact the liquidity or the Common Equity Tier 1 (CET1) capital of the Bank. Furthermore, provisions in the double-digit millions will be set aside.

This year’s cost target of €6.5 billion remains valid in operational terms. However, the expenses for the exceptional write-off come in addition.

With this step, Commerzbank reduces complexity in its transformation and will firstly continue to modernise its own system landscape. The IT delivery organisation of Commerzbank introduced two years ago will make an important contribution to this. As part of its strategy 2024, the Bank has created a dedicated Key Area for Securities & Brokerage.

Since the launch of the outsourcing project in 2017, the market and technological environment have undergone substantial change. “After careful consideration, we have taken the decision to stop the outsourcing project owing to the high implementation risks. The significant growth in trading volume and the ongoing technological development are allowing us to continue securities settlement profitably,” commented COO Jörg Hessenmüller.

The transfer of positions to the systems of the subsidiary company of HSBC planned for the middle of 2021 will not be carried out. Master data already transferred and tax statements relating to securities business are to be transferred back to Commerzbank by the beginning of 2022. Client business will not be affected by this.

*** Press contact Sven Korndörffer +49 69 136-22461 Silvana Herold +49 69 136 46646

Erik Nebel +49 69 136 44986

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At its meeting today, the Supervisory Board of Commerzbank made important decisions to further strengthen the Bank’s Board of Managing Directors and ensure long-term continuity and stability on the Board for the profound transformation launched with “Strategy 2024”.

Bettina Orlopp will become Deputy Chairwoman of the Board with effect from 17 June 2021. In this context, the Supervisory Board extended her appointment to the Board of Managing Directors by five years until June 2026 ahead of terms. This underscores the significant importance of Commerzbank’s consistent orientation toward the goal of regaining sustained profitability. The Board appointment of Chief Operating Officer Jörg Hessenmüller was also extended for a further five years until the end of 2026. His responsibilities include key enablers for the transformation, above all the ongoing process of digitalisation at Commerzbank.

In addition, Sabine Schmittroth will focus perspectively on her role as Labour Director. The human resources challenges presented by the restructuring already underway at Commerzbank make the Human Resources department more important than ever. Sabine Schmittroth will pass on responsibility for the Private and Small-Business Customers segment, which she additionally assumed in autumn 2020. A process to fill this position on the Board of Managing Directors, which is important to the Bank’s ongoing success, has been initiated.

Helmut Gottschalk, Chairman of the Supervisory Board, said: “The top priority for all of us is the consistent implementation of our strategy and hence the success of the transformation we have launched at Commerzbank. Continuity, stability, and the unwavering focus of the Board’s activities on the common goal are essential here. To ensure this, we are securing the commitment of top executives to Commerzbank for a longer term and are going to further strengthen the Board team who enjoys the full confidence of the Supervisory Board”.

Manfred Knof, Chief Executive Officer of Commerzbank, said: “Commerzbank’s Board of Managing Directors is a very strong team, one that we are now making even more cohesive and effective. We are determined to work together in the years ahead to shape a Commerzbank that is customer-centric, digitalised, sustainable, and profitable. That is both our team commitment and my own personal commitment”.

*** Press contact Silvana Herold +49 69 136-46646 Erik Nebel +49 69 136-44986

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Commerzbank AG has successfully issued the third AT 1 bond under its issuance programme for additional tier 1 capital (AT 1). The bond has a volume of €500 million and a fixed coupon of 4.25% per annum. With a volume of more than €1.75 billion, the order book was several times oversubscribed, which reflects the extensive interest of investors. The bond will be listed on the Luxembourg Stock Exchange. Moody's is expected to give the AT1 bond a rating of Ba2 and S&P a rating of BB-.

With the issuance, Commerzbank further strengthens and optimises its capital structure. The new bond will reduce Commerzbank’s Common Equity Tier 1 (CET 1) requirement (MDA threshold) by 21 basis points to 9.40% pro forma as at the end of March 2021.

In May 2020, Commerzbank had launched an issuance programme for AT 1 capital which enables it to gradually issue subordinated bonds with a total nominal value of up to €3 billion over the next years. In 2020, Commerzbank issued two AT 1 bond under its issuance programme with a net volume of €1.75 billion.

The new bond has a perpetual maturity and a first call date from October 2027 to April 2028. The bond terms include a temporary write-down in the event that the Bank’s Common Equity Tier 1 ratio (CET 1 ratio) drops below 5.125%. The subscription right of the shareholders was excluded. Joint lead managers for the transaction were Citigroup, Commerzbank, Deutsche Bank, Santander and UBS.

*** Press contact Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

Disclaimer and Forward-Looking Statement This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities in the United States of America, Canada, Japan, Australia, or in any jurisdiction in which such offer or solicitation is unlawful. 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.

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In May 2021, Commerzbank joined with İşbank and LBBW to become one of the first banks to execute commercial transactions with German and Turkish corporate clients via the Marco Polo trade finance network in a live environment. The purpose of these transactions was to establish an irrevocable payment commitment to the supplier, issued by the buyer’s bank.

With these live transactions, Commerzbank has reached a key milestone in the run-up to the market launch of Marco Polo Payment Commitment. The data required to establish the payment commitments for both transactions was exchanged in a digital format via the Marco Polo trade finance network, using Corda blockchain technology.

The first cross-border transaction took place on 10 May 2021, in cooperation with İşbank, between corporates Kuraray Europe GmbH and Şişecam. The underlying commercial transaction involved the export of laminated special glass interlayers from Germany to Turkey. The payment by open account has been replaced by an irrevocable payment undertaking with digital exchange and matching of trade data.

The second transaction – the ‘go-live’ in Commerzbank’s home market of Germany, followed on 20 May 2021, in cooperation with LBBW and between KSB and Voith. The underlying transaction was the purchase of special couplings. As with Commerzbank’s first live transaction, the data transfers required to secure payments between the pump and valve manufacturer KSB and the technology group Voith, as well as the credit institutions involved, were performed in a secure and closed area with access only permitted to the parties involved in the transaction.

A Marco Polo Payment Commitment is an irrevocable, abstract undertaking by the buyer's bank to the supplier to make payment on the due date. The payment commitment is based on the exchange and successful automatic matching of digital trade data in the DLT/blockchain network, thus providing financing options.

Nikolaus Giesbert, Divisional Board member Transaction Banking at Commerzbank AG, said: “Our clients are looking for innovative supply chain management solutions. Commerzbank is focusing on speed and transparency in this area, where blockchain applications have tremendous potential. This transaction is a major step towards market launch”.

“KSB is an international digitalisation pioneer in our sector, and has set standards with many innovative solutions,” said Dr Stephan Timmermann, KSB Management Spokesman. Dr Matthias Schmitz, Managing Director responsible for Finance and Procurement, added: “After digitalising our production and products wherever possible, we are now systematically approaching digitalisation of our processes. The Marco Polo platform, and technologies such as blockchain and distributed ledger, are allowing us to raise our trading processes to a new, paper-free, and – most importantly – secure level”.

“Following our pilot transaction in 2020, we were thrilled to carry out a first live transaction using the Marco Polo platform. Having automated and digitalised most of our internal processes over recent years, the Marco Polo network is the perfect match for our digitalisation strategy. With Commerzbank, İşbank and Şişecam, we have joined forces with valuable business partners to pave the way for digitalisation of one of the last remaining paper-based processes – documentary payments“, emphasised Juliane Löbig, Director Finance & Accounting at Kuraray Europe GmbH.

“Live payment commitment transactions involving KSB, Kuraray, Şişecam and Voith, and Marco Polo member banks Commerzbank, İşbank and LBBW are proof that digital end-to-end settlement processes with a high degree of automation and an electronic data exchange are possible, and will become a reality in trade finance“, noted Daniel Cotti, Managing Director, Centre of Excellence Banking & Trade at TradeIX.

As a founding member of the Marco Polo initiative, Commerzbank – together with LBBW and Turkey’s İşbank – was one of the first banks to settle Marco Polo Payment Commitments for live commercial transactions digitally via Marco Polo’s distributed-ledger technology (DLT) network. The network, operated by the FinTech TradeIX, is built on R3’s Corda blockchain technology.

*** Press contact Barbara Stein +49 69 136 46273

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

*** About KSB KSB is a leading international manufacturer of pumps and valves. The Frankenthal-based Group has a world-wide presence with its own sales and marketing organisations, manufacturing facilities and service operations. The workforce of around 15,100 generated in 2020 sales revenue of € 2.2 billion.

*** About Kuraray Europe GmbH Established in 1991, Kuraray Europe GmbH is based in Hattersheim, near Frankfurt am Main, Germany. In 2020 the company generated annual sales of EUR 593 million. It has more than 800 employees in Germany at its sites in Hattersheim, Frankfurt and Troisdorf. Kuraray is a global speciality chemicals company and one of the largest suppliers of industrial polymers and synthetic microfibres for many sectors of industry. Examples are KURARAY POVAL™, Mowital®, Trosifol® and CLEARFIL™. Kuraray Europe also has around 215 employees at six other European sites. They are also working on the development and application of innovative high-performance materials for a wide range of sectors, including the automotive, paper, glass and packaging industries, as well as for architects and dentists. Kuraray Europe is a wholly owned subsidiary of the publicly listed Kuraray Co., Ltd., which is based in Tokyo, Japan, and has more than 11,200 employees worldwide and sales of EUR 4.4 billion.

*** About the Marco Polo network Marco Polo, a joint venture of technology companies TradeIX and R3, globally active financial institutions and their corporate clients, is the biggest and fastest growing global trade finance network. Established in 2017, Marco Polo offers banks and other companies an open software platform for trade finance applications based on a decentralised blockchain solution, facilitating the seamless and secure exchange of data and assets between participants.

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In a joint project, Commerzbank, Evonik and BASF successfully tested a shared blockchain platform to efficiently handle bilateral supply chain processes between companies in a live environment. During the test, payments between Evonik and BASF were checked, paid and booked in a fully automated and digital manner by means of a programmed payment process. “Programmable money has enormous potential to further digitalise supply chains. Commerzbank has once again taken a significant step forward in the use of blockchain-based payment solutions building on our existing work in this exciting area of future financing”, said Carsten Bittner, Divisional Board Member responsible for Technology Foundations at Commerzbank.

Evonik’s mutual supplier relationship with BASF forms the basis for the project; the companies have maintained an active business relationship for many years and they regularly settle trade receivables. In the pilot project, the two companies transmitted business process-relevant data to Commerzbank’s blockchain platform with the help of the data service provider Elemica. The platform then generated a complete and tamper-proof depiction of the relevant business processes as well as the data and then blockchain was used to automate payments. For this purpose, electronic money (e-money) was made available to the partners for trading on the distributed ledger technology platform. Payments were processed once the transaction was automatically validated by digital contracts (smart contracts) and through programmable money, i.e. cash on ledger.

The project participants are pleased with the successful completion of the pilot. Heinz-Günter Lux, Senior Digital Strategist at Evonik Digital GmbH commented: “The payment process via blockchain and by means of programmable money along our existing process chains is definitely more transparent, quicker and more reliable. It is an important building block towards the development of fully autonomous supply chains”.

BASF is already using blockchain technology in pilot projects for the secure exchange of data and information between multiple participants in complex value chains. As well as other things, blockchain technology will also enable BASF to collaborate more effectively with its customers and suppliers in future. With the conclusion of the pilot, the project partners have agreed to further explore the use of this innovative payment method and expand it to include other supply chain business partners in the coming months.

Blockchain technology opens up automation and efficiency potential. Commerzbank has been integrating the technology for years and developing specific applications to offer clients suitable blockchain-based products and services. The experience gained from past pilots and collaborations, for example, the processing of machine-to-machine payments with Daimler Trucks and the successful money market securities transaction via blockchain with Continental and Siemens, allows Commerzbank to create value for our clients and to make the technology profitable.

*** Press contact Monika Arens +49 69 136-29673 Carsten Kipper +49 69 136-45189

*** About Commerzbank Commerzbank is the leading bank for SMEs and a strong partner for around 30,000 corporate customer associations and about 11 million private and small-business customers in Germany. In its two divisions – Private and Small-Business Customers and Corporate Clients – the Bank offers a comprehensive portfolio of financial services. Commerzbank finances around 30% of Germany's foreign trade and it is represented in nearly 40 countries around the world in the corporate customer business. The Bank focuses on German SMEs, large companies and institutional customers. In its international business, Commerzbank supports customers with a business connection to Germany and companies from selected future industries. As a result of the integration of Comdirect, private and small-business customers benefit from the services of one of the most modern online banks in Germany in combination with personal advice in the branch. The Polish subsidiary mBank S.A. is an innovative digital bank that serves around 5.7 million private and corporate customers, mainly in Poland but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of around €8.2bn with just under 48,000 employees.

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At Tuesday’s virtual Annual General Meeting (AGM), Commerzbank shareholders elected Helmut Gottschalk, Burkhard Keese, Daniela Mattheus, Caroline Seifert, and Frank Westhoff by a large majority to the Bank’s Supervisory Board, as proposed. The duration of the appointments will run until the end of the 2023 AGM. At a Supervisory Board meeting immediately following the AGM, Helmut Gottschalk was re-elected as Chairman of the Board. He had previously been appointed as a member of the Supervisory Board by court order in April 2021 and had afterwards been elected as Chairman of the Supervisory Board by the members. This mandate ended at the close of today’s AGM.

“I will devote all my commitment, professional experience, and energy to Commerzbank. I want to make a contribution to bringing this tradition-rich bank back to success,” said Gottschalk. He succeeds Hans-Jörg Vetter, who resigned from his post on 16 March 2021 for health reasons. “On behalf of the entire Supervisory Board, I would like to express my sincere thanks for Mr. Vetter’s great commitment and the important impetus he has provided. We wish him all the best and much strength,” Gottschalk said during the AGM.

The further changes to the Bank’s 20-member Supervisory Board had become necessary after Andreas Schmitz resigned his mandate on 24 March 2021, and Tobias Guldimann, Rainer Hillebrand, and Victoria Ossadnik resigned their mandates at the end of the AGM.

“We are tackling the transformation of Commerzbank quickly and decisively. Our ‘Strategy 2024’ stands for customer orientation, digitalisation, sustainability, and profitability,” said Manfred Knof, Chairman of the Board of Managing Directors since the beginning of this year, in his speech to the shareholders. “We have clearly outlined the structures needed and we have taken the first steps. We will do everything we can to make Commerzbank efficient and sustainably profitable again. We want to become the digital advisory bank in Germany. I will not let up until we reach our goal, since the German economy, the German Mittelstand, and our retail customers need a strong, reliable, and independent Commerzbank”.

Due to the ongoing coronavirus pandemic, Commerzbank’s AGM was again held as a virtual event this year. Shareholders voted on the key items on the agenda as follows:

Ratification of actions (items 2 and 3)

The AGM ratified the Board of Managing Directors’ actions as well as the Supervisory Board’s actions with a majority of 99.4% and 86.9% respectively.

Election of the auditors (items 4 and 5)

Moreover, the AGM cleared the way for the planned change of the auditor. For the fiscal year 2021, EY was elected as auditor for the last time with 99.5%. For any interim financial statements in the period after 31 December 2021 until the AGM in 2022, the shareholders elected KPMG as the new auditor with 99.9%. It is planned that the AGM in 2022 will then also elect KPMG as the new auditor for the full fiscal year 2022.

Election of new Supervisory Board members (item 6)

With a large majority of more than 99% Helmut Gottschalk (Former Chairman of the Supervisory Board of DZ Bank), Burkhard Keese (Chief Financial Officer, Lloyd’s of London), Daniela Mattheus (Attorney-at-law, Governance Advisor), Caroline Seifert (Management Consultant for Transformation), and Frank Westhoff (Former Member of the Board of Managing Directors of DZ Bank) were elected to the Supervisory Board of Commerzbank.

Agreement on profit transfer agreement with CommerzVentures GmbH (item 7)

The AGM approved the profit transfer agreement with CommerzVentures GmbH concluded on 1 March 2021 between Commerzbank Aktiengesellschaft (as parent company) and CommerzVentures GmbH (as subsidiary) (99.7%).

Further information on this year’s AGM is available on our website.

*** Press contact Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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Commerzbank made a very good start into the current year and generated a positive net result in the first quarter despite the ongoing pandemic and restructuring charges. Net commission income increased strongly thanks to a flourishing securities business. This enabled the Bank to largely compensate the impact from the negative interest-rate environment and the ongoing lower consumption resulting from coronavirus restrictions. In conjunction with stable expenses and a lower risk result, this led to an operating profit of €538 million. The Common Equity Tier 1 (CET 1) ratio of the Bank improved to 13.4% and continues to be significantly above the regulatory requirement (MDA). Following on from the positive start of the year, the Bank raised its full year outlook for revenues and the CET 1 ratio.

The transformation of Commerzbank launched in February through “Strategy 2024” is making good progress with the four core topics of profitability, sustainability, digitalisation, and customer centricity.

As already announced, the Bank quickly reached agreements with the employee representatives in Germany about a framework settlement of interests and a framework social plan concerning the necessary personnel reduction. The binding agreements form the basis for a maximally socially responsible downsizing. The Bank had already agreed a voluntary redundancy programme on a headcount reduction of 1,700 full-time equivalents for 2021.

The Bank is also proceeding quickly with the issue of sustainability and has defined ambitious goals for this area. It intends to increase the volume for sustainable financial products from the recent total of around €100 billion to €300 billion by the end of 2025. Furthermore, Commerzbank is one of the first German financial institutions to have made a commitment as a member of the Net-Zero Banking Alliance to reduce CO2 emissions as far as possible and to achieve net-zero CO2 emissions for the entire loan and investment portfolio by 2050, and for its own banking operations already by 2040.

Commerzbank is also making good progress on its digital offerings and in the area of customer centricity. Together with Deutsche Börse, it is investing in the fintech 360X as part of a strategic partnership. The goal is to develop new blockchain-based digital marketplaces and ecosystems for existing real asset classes such as art and real estate. The Bank also agreed a comprehensive cooperation for Equity Brokerage and Equity Research with Oddo BHF. Commerzbank is thereby reducing costs and complexity while improving the customer offer. Alongside market-leading stock analysis in the German-speaking regions of Germany, Austria, and Switzerland, customers will also receive even better access to European equity markets in future.

“After only a few months, we have already achieved some important milestones in our transformation and launched a large number of projects and measures in all parts of the Group. We are now consistently implementing these projects. The agreement with the employee representatives on the framework for the necessary headcount reduction is a decisive step,” commented Manfred Knof, Chief Executive Officer of Commerzbank. “After a very good start into the year, we are looking confidently to the future despite of the ongoing pandemic”.

Revenues in the first quarter increased by 35% to €2,492 million (Q1 2020: €1,851 million) primarily on the basis of a strong net commission income and positive valuation effects. The interest rate benefit from the Targeted Longer-Term Refinancing Operations (TLTRO) of the European Central Bank (ECB) amounted to €126 million in the first quarter. The underlying revenues excluding exceptional items rose to €2,308 million (Q1 2020: €2,024 million). This enabled the Bank to more than compensate the pressure of the negative interest-rate environment on net interest income.

The risk result at minus €149 million was below the year-on-year value (Q1 2020: minus €326 million). Despite of the ongoing coronavirus pandemic, the loan portfolio remained stable. This is also reflected by the continuing low ratio of non-performing exposures (NPE ratio) at 0.9% (year-end 2020: 1.0%). The additional provision formed last year for coronavirus effects anticipated for 2021 (“top-level adjustment”) was nearly unchanged at €495 million at the end of March.

Operating costs fell to €1,469 million (Q1 2020: €1,503 million). Administrative expenses benefited from lower spending for advertising, depreciation, and travel. The burden of compulsory contributions continued to rise by almost 12% to €336 million (Q1 2020: €301 million) as a result of higher contributions for the deposit guarantee scheme and for the European Bank Levy. Despite this additional burden, total expenses were at €1,806 million (Q1 2020: €1,804 million) and thus remained stable overall.

Total operating profit amounted to a strong €538 million (Q1 2020: minus €278 million). This more than compensated for the restructuring charges of €465 million booked in the first quarter. The consolidated profit attributable to Commerzbank shareholders amounted to €133 million (Q1 2020: minus €291 million) partly due to positive tax effects.

The CET 1 ratio increased to 13.4% by the end of March (end of December 2020: 13.2%) and is now around 380 basis points above the regulatory requirement (MDA) of currently 9.6%.

“We started the year with very strong results, and we have achieved a positive net result after restructuring charges. In particular, the strong securities business made a significant contribution to this result, and this enabled us to largely compensate for the effects arising from the negative interest-rate environment. Our improved capital ratio provides us with a solid basis for the further transformation,” said Bettina Orlopp, Chief Financial Officer at Commerzbank.

Development of the segments

The Private and Small-Business Customers segment continued its growth with loans and securities and increased the volume of its business in Germany to €307 billion by the end of March – a plus of €17 billion by comparison with year-end 2020 and €67 billion year-on-year. This was primarily due to strong securities business with an increase in volume of €15 billion since the beginning of the year. Out of this, €5 billion was net new money. Since the turn of the year, the loan volume went up by €2.4 billion to around €115 billion. Once again, the driver for this growth was successful mortgage business, which increased year-on-year by 7% to a volume of nearly €88 billion.

Total underlying revenues for the Private and Small-Business segment amounted to €1,338 million (Q1 2020: €1,329 million), despite of sustained pressure on net interest income. Owing to the securities business, net commission income increased by more than 11%. This enabled the segment to compensate for falling contributions from deposits, lower demand for consumer loans due to the pandemic, and the effect of the lockdown on payment transactions. Net interest income fell by around 10% due to the continuing negative interest-rate environment. Thanks to the significantly lower risk result, the segment generated an operating profit of €250 million (Q1 2020: €146 million).

The Corporate Clients segment maintained almost stable underlying revenues at €824 million (Q1 2020: €833 million) thanks to strong capital market business which enabled the segment to compensate the pandemic-related decrease in lending business. The International Corporates division benefited from improved bond and syndicated loan business, while lower demand for loans had an impact in the Mittelstand division. The effects of the coronavirus crisis led to lower transaction banking in the Institutionals division. Including exceptional items and valuation effects, total revenues for the segment increased by more than 11% to €842 million (Q1 2020: €755 million).

A low risk result of minus €52 million (Q1 2020: minus €165 million) and a further reduction in costs led to a positive operating result for the segment of €98 million (Q1 2020: minus €112 million).

Outlook

Given the strong results of the first quarter, revenues should slightly exceed the previous year. With the further progress of the transformation the Bank targets costs of around €6.5 billion. While uncertainty of the further development of the pandemic remains, a risk result in the range from minus €0.8 billion to minus €1.2 billion is anticipated. Based on current observations, a risk result up to minus €1 billion is likely. Based on the results of the first quarter, the Bank expects a CET 1 ratio of at least 12.5% – well above the targeted buffer of 200 to 250 basis points above the MDA. Overall, Commerzbank expects a positive operating result. The expectations are based on the assumption that there is no fundamental change affecting the Swiss francs loan portfolio at mBank.

*** Press contact Sascha Ullrich +49 69 136-82349 Erik Nebel +49 69 136-44986 Sina Weiß +49 69 136-27977

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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From 11 May 2021, Commerzbank will be cooperating with the Franco-German financial services group ODDO BHF in the area of equities. As part of its Strategy 2024, Commerzbank has announced that it will be reviewing the possibility of cooperation with potential partners for the areas of equity trading and equity research. The aim is to become more efficient and to offer Corporate Clients an even better platform for placement of their shares. “This cooperation means that our capital markets business will be aligned even more consistently with the needs of our core clients. At the same time, this enables us to reduce costs and complexity without compromising on client service,” commented Chairman of the Board of Managing Directors Manfred Knof.

In the area of brokerage, ODDO BHF will support Commerzbank as an exclusive partner in future. “We have decided on ODDO BHF as a partner because this financial services group will contribute a high level of expertise in equity sales and trading for markets in Europe and North America. This will enable us to create a significantly greater bandwidth for our Corporate Clients in equity market transactions and we will be able to ensure even better placement for them,” explained Michael Kotzbauer, Member of the Board of Managing Directors responsible for Corporate Clients at Commerzbank. As a result of the platform encompassing wider geographical placement, Corporate Clients will now be able to extend their reach beyond the existing market-leading coverage for shares in the German-speaking regions of Germany, Austria and Switzerland. They will now also be able to benefit from strong coverage in other European countries and sectors with correspondingly greater selling power.

In this new arrangement, Commerzbank will remain the first contact partner for its Corporate Clients and one of the leading Equity Capital Markets (ECM) partners in the German-speaking regions.

Over the long term, Commerzbank will no longer offer institutional equity research in-house, i.e. research on shares for professional clients. This will be provided through ODDO BHF as the cooperation partner. Philippe Oddo, Managing Director and CEO of ODDO BHF: "We are very pleased to be working with one of the most important addresses in corporate banking in Germany. With this step, we are further expanding our position as a leading pan-European provider for our private, institutional and business customers."

The advisory competence for the equity business, Equity Capital Markets (ECM), remains an important cornerstone for corporate clients business at Commerzbank and customers will continue to have unrestricted access to this in future. The Bank will maintain its focus on the relevant requirements for its Corporate Clients in this area – also in relation to the Mittelstand – and it will also continue to be at their side for the issue of new equity capital, for example in initial public offerings, share placements, capital increases and convertible bonds.

*** Press contact Christoph Ott +49 69 136 24431 Monika Arens +49 69 136 29673

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

*** About ODDO BHF ODDO BHF is an independent Franco-German financial services group, with a history stretching back over 170 years. It was created from the alliance of a French family-owned business built up by five generations of stockbrokers and a German bank specialising in Mittelstand companies. With 2,500 employees (1,300 in Germany and Switzerland and 1,200 in France and Tunisia), and more than 125 billion euros in assets under management, ODDO BHF operates in three main businesses, based on significant investment in market expertise: private banking, asset management and corporate and investment banking. The Group has a specific ownership structure as 65% of its capital is held by the Oddo family and 25 % by employees. This “partnership” ethos guarantees the long-term involvement of its teams. In 2020, ODDO BHF generated net banking income of 624 million euros, and at 31 December 2020, the Group had over 940 million euros of shareholders' equity.

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Commerzbank and the employee representatives have today agreed on a framework settlement of interests and a framework social plan for AG Germany. The binding agreements form the platform for a maximally socially responsible headcount reduction within the framework of the “Strategy 2024” adopted in February. The Bank intends to implement the headcount reduction primarily through retirement arrangements, such as partial retirement or early retirement. As part of this arrangement, the Bank has extended the offer of early retirement to seven years. Furthermore, termination agreements and support for employees with perspectives inside and outside the Bank have been agreed.

The Bank will book provisions for additional restructuring expenses of around 225 million euros for retirement arrangements that were expanded beyond the scope of the original plan. “This money is well invested as it enhances our planning certainty for the implementation of the headcount reduction,” commented Manfred Knof, Chairman of the Board of Managing Directors of Commerzbank. “We engaged in some very intensive negotiations and have achieved a result that will enable the fast implementation of the transformation. I would like to express my thanks to all the participants for the disciplined and constructive cooperation, despite all the differing interests”.

Overall, the Bank is now projecting total restructuring expenses amounting to slightly above two billion euros. Out of these expenses, more than 900 million euros were already booked in the last two business years. At the beginning of April, the Bank set aside further provisions in the amount of around 470 million euros for the first quarter of 2021. These are intended for a number of initiatives including a voluntary programme. Employees who make use of this offer will leave the Bank by the end of 2021 at the latest, so that savings will already be effective from the coming year. The remaining expenses for the headcount reduction will be booked in the second quarter.

Over the coming months, the details of the headcount reduction in the individual Group divisions are to be discussed based on the framework agreements reached and arranged in partial settlements of interests. The aim is to complete these negotiations by the end of this year.

The bank intends to carry out a review on the status of the agreed headcount reduction in 2023. If it emerges that the measures have proved inadequate, the Bank will discuss necessary additional measures with the employee representatives in the first quarter of 2023. These include collective reductions in working hours or compulsory redundancies as a last resort. Both sides have agreed the social plan to compensate for or ameliorate the economic disadvantages for affected employees.

“We have found solutions for our employees that are fair, comprehensible and socially responsible. The settlement of interests and social plan form the framework for being able to bring the negotiations to a conclusion by the end of the year,” said Sabine Schmittroth, Member of the Board of Managing Directors responsible for Human Resources.

Uwe Tschäge, Chairman of the Central and Group Works Council, stated: “A top priority for us is to take appropriate account of the interests of the employees. These encompass the interests of those employees who remain with the Bank and the interests of colleagues who leave the Bank. A step like this can only happen with a socially responsible structure for the headcount reduction. We have made good progress with the agreements reached and we will expand on these in further negotiations”.

As part of its “Strategy 2024”, Commerzbank launched a comprehensive transformation. The aim of the restructuring is to combine the advantages of a fully digitalised bank with personal advisory services, a consistent customer focus and sustainability. Costs are to be substantially reduced and profitability significantly increased by 2024. This will permit Commerzbank to create the enablers to reinforce its leading position as the Bank for the German Mittelstand and a strong partner for around eleven million Private and Small-Business Customers. The realignment makes a significant headcount reduction inevitable. The Bank is planning to reduce the number of full-time positions by around 10,000 in gross terms by 2024. This compares with an increase of around 2,500 full-time equivalents. This will reduce the costs for external service providers alongside other benefits. Overall, it will result in a net reduction of around 7,500 positions.

*** Press contact Dennis Bartel +49 69 136 26528 Erik Nebel +49 69 136 44986

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.5 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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.

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Deutsche Börse and Commerzbank are entering a strategic partnership with fintech 360X to develop new blockchain-based digital marketplaces and ecosystems for existing real asset classes such as art and real estate.

In order to achieve this, the partners combine their strengths: Deutsche Börse as experienced market infrastructure operator, Commerzbank as partner for the digital banking world of tomorrow, and 360X’s experienced team of fintech founders will jointly work on digital marketplaces of the future to generate new revenue potential. The first reference transaction (minimum viable product) for two asset classes is planned for this year.

The new trading platform facilitates investment in asset classes that have so far been illiquid, explains Carlo Kölzer, founder and CEO of 360X. “Our mantra is ‘Making Things Investable – Bridging the Gap between Asset Classes and Capital Markets’. We create transparent and liquid trading venues for assets that have not yet existed in digital markets. We are therefore starting with trading venues for art and real estate. 360X is set up as a highly scalable model so further asset classes will follow”. Carlo Kölzer and his team founded 360T, the world's leading electronic foreign exchange trading platform, in Frankfurt in 2000.

Trading assets on blockchain basis

The assets will be made investable and tradable via tokenisation and fractionalisation. Tokenised real assets are mapped on blockchain to facilitate access for investors and allow the fractionalisation of the underlying asset.

The three partners maintain the highest standards of legal certainty, data protection, and compliance with regulatory frameworks as well as for the establishment of an orderly secondary market.

Threefold expertise for new digital markets

Carlo Kölzer: “360X aims at a megatrend. Digital assets are an exponential growth market. We create new ecosystems and offer investors innovative investment opportunities in assets which they did not have access to before. This creates added value for the financial sector”.

Theodor Weimer, CEO of Deutsche Börse AG: “I am convinced that Deutsche Börse has to venture into new asset classes. In the future, we will see a broad tokenisation and digitisation of assets that are not tradable today. 360X is the new innovative platform for serial marketplace creation that we are building with our partners”.

Manfred Knof, CEO of Commerzbank AG: “We take real assets to digital marketplaces. With our and Deutsche Börse’s investment in 360X we see the potential to actively shape one of these digital asset ecosystems of the future. Commerzbank has many years of experience with DLT technology and is a sought-after expert in the emerging asset universe. With pilot transactions in the areas of payments, securities and trade finance, as well as strategic partnerships with technology and internet companies, and cooperation with DLT networks, Commerzbank is a reliable partner in tomorrow’s digital banking”.

Deutsche Börse and Commerzbank have longstanding experience with DLT technology, with joint pilot transactions having been executed via DLT for the first time in 2019.

*** Press contact Commerzbank Dennis Bartel, Tel.: +49 69-136-26528 E-Mail: dennis.bartel@commerzbank.com

Press contact Deutsche Börse Group Patrick Kalbhenn, Tel: +49 69 211-14730 E-Mail: patrick.kalbhenn@deutsche-boerse.com

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

*** About Deutsche Börse Group As an international exchange organisation and innovative market infrastructure provider, Deutsche Börse Group ensures markets characterised by integrity, transparency, and stability. With its wide range of products, services, and technologies, the Group organises safe and efficient markets for sustainable economies. Its business areas extend along the entire value chain in exchange trading, including the admission, trading and clearing, and custody of securities and other financial instruments, the dissemination of market data, as well as the management of collateral and liquidity. As a technology company, the Group develops state-of-the-art IT solutions and offers IT systems all over the world. With more than 9,000 employees, the Group has its headquarters in the financial centre of Frankfurt/Rhine-Main, as well as a strong global presence in locations such as Luxembourg, Prague, London, New York, Chicago, Hong Kong, Singapore, Beijing, Tokyo and Sydney.

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Today Commerzbank has joined the Net-Zero Banking Alliance of UNEP FI, the United Nations Environment Programme Finance Initiative. As one of the first financial institutions worldwide, Commerzbank is committed to reducing its CO2 emissions in the best possible way. The aim is to reduce the CO2 balance sheet of its entire lending and investment portfolio to net zero by 2050 at the latest. For its own banking operations, the Bank aims to reduce CO2 emissions to zero by 2040. “By voluntarily committing ourselves to net zero we underline our decisiveness to actively contribute to the sustainable transformation of society and the economy. In the run-up to this year's World Climate Conference in Glasgow, where the realisation of the Paris Climate Agreement will be a headline topic, we’re sending a clear signal," says Manfred Knof, CEO of Commerzbank.

In 2019, Commerzbank singed the Principles for Responsible Banking initiated by UNEP FI and committed itself to support the real economy in its transformation. "With our commitment to net zero, we’re taking an important and consistent step forward," says Knof. Commerzbank’s CO2 emissions have already been reduced by more than 70% since 2007and its own banking operations have been climate neutral since 2015.

The net zero commitment demands comprehensible actions with which Commerzbank proves support for its clients’ efforts to reduce their greenhouse gas emissions. Firstly the focus is laid on CO2 intensive sectors. The Bank will regularly report on its progress in accordance with UNEP FI guidelines. In managing its portfolio, Commerzbank will use the scientific approach of the Science-Based Targets Initiative, which it joined as the first German Bank in 2020.

*** Press contact Dennis Bartel +49 69 136 26528 Beate Schlosser +49 69 136 22137

About Net-Zero Banking Alliance The Net-Zero Banking Alliance of UNEP FI brings together representatives from international banks to coordinate efforts and promote a smooth but rapid decarbonisation of the economy. The Net-Zero Banking Alliance is part of the Glasgow Financial Alliance for Net Zero (GFANZ) which is open to asset owners, asset managers, banks and insurance underwriters. Members will include all those that are, or will be, part of the Race to Zero.

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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Commerzbank AG invites its shareholders to its regular Annual General Meeting (AGM) on Tuesday 18 May 2021. Due to the ongoing coronavirus pandemic, the event will once again take place virtually without the physical presence of the shareholders or their proxies. The AGM will be transmitted live online beginning at 10 am. Shareholder voting rights can be exercised exclusively by way of absentee ballot or by granting proxy to the voting right representative of the company.

“Dialogue with our owners is very important to us. Despite the restrictions of a virtual event in times of a pandemic, we have expanded the way we communicate to offer an enhanced interactive exchange with our shareholders, going beyond the legal requirements”, said Manfred Knof, Chairman of the Board of Managing Directors of Commerzbank.

Shareholders may submit their questions via an online electronic system (Investor Portal) by the end of 16 May 2021. Those shareholders who have submitted questions in due time before the event will also be given the opportunity for follow up questions during the AGM via the portal. Shareholders may also submit written statements or short video messages by the end of 15 May 2021 which will be made available on the Investor Portal. These messages may also be broadcast during the AGM. In order to give shareholders the possibility to comment on the speech by the Chairman of the Board of Managing Directors, the manuscript will be made available online from 12 May 2021.

Of particular note are the following additional items to the agenda:

Election of the auditor (item 4–5)

For the final time, the Supervisory Board proposes that EY be elected as the auditor for the annual financial statements for the financial year 2021 (item 4). For 2022, Commerzbank plans to change its auditor. A selection process was carried out in accordance with the requirements of EU Regulation. KPMG has emerged as the preferred auditor. The change is due to be implemented in two steps: Initially, the general shareholders’ meeting 2021 is due to elect KPMG as the new auditor for their audit review of any interim financial information for periods after 31 December 2021 and prior to the AGM in the year 2022 (item 5). The AGM in 2022 is then due to also elect KPMG as the new auditor of the financial statements for the entire financial year 2022.

New election of five members of the Supervisory Board (item 6)

The Supervisory Board will propose five new members for election at the Annual General Meeting. They are to be elected for the period from the end of the Annual General Meeting until the end of the Annual General Meeting 2023.The proposed candidates are Helmut Gottschalk, Burkhard Keese, Daniela Mattheus, Caroline Seifert and Frank Westhoff. Immediately after his appointment by the AGM, the Supervisory Board intends to elect Helmut Gottschalk as Chairman of the Supervisory Board. The former long standing Chairman of the Supervisory Board of DZ Bank will thus succeed Hans-Jörg Vetter, who resigned from the Supervisory Board on 16 March for health reasons. The other candidates are to succeed members Tobias Guldimann, Rainer Hillebrand, Victoria Ossadnik and Andreas Schmitz.

As in previous years, the speech of the Chairman of the Board of Managing Directors at the AGM will be transmitted live and will be available publically on 18 May 2021 on www.commerzbank.com/agm. The hashtag on Twitter for the AGM is #CobaHV. The full details of the invitation to the 2021 AGM, including the agenda and explanations of the individual items, can also be found on www.commerzbank.com/agm.

***

Press contact

Sascha Ullrich +49 69 136 82349

Maurice Farrouh +49 69 136 21947

***

About Commerzbank

Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

Disclaimer and Forward-Looking Statement

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Today, the Supervisory Board of Commerzbank AG decided to propose four additional new candidates for election to the Supervisory Board to shareholders at the next Annual General Meeting (AGM). The candidates are Daniela Mattheus, Caroline Seifert and Frank Westhoff. With the dispatch of the invitation to the AGM, a fourth candidate will be proposed to the shareholders, who cannot yet be named for formal reasons. The AGM of Commerzbank is expected to take place on 18 May 2021.

The changes in the 20-member Supervisory Board of the Bank have become necessary after Andreas Schmitz resigned from his mandate on 24 March. In addition, Tobias Guldimann, Rainer Hillebrand as well as Victoria Ossadnik have resigned from their mandates taking effect with the end of the upcoming AGM. As previously reported, on Sunday the Supervisory Board had decided to propose Helmut Gottschalk for election to the Supervisory Board and subsequently elect him as its Chairman. Gottschalk is to succeed Hans-Jörg Vetter, who resigned from office on 16 March for health reasons.

“I am pleased that we were able to recruit such an experienced and competent set of candidates for our Supervisory Board very quickly,” says Uwe Tschäge, Deputy Chairman of the Supervisory Board. “I thank the entire Supervisory Board as well as all outgoing members for their commitment. I am confident that we will continue to work very well together in the new constellation”.

Daniela Mattheus is a lawyer and Managing Partner at the European Center for Board Efficiency (ECBE). The former partner at Ernst & Young is a corporate governance expert and has a lot of experience in advising supervisory and advisory boards.

Caroline Seifert is a management consultant for transformation. Prior to her self-employment, the brand & design specialist had worked in leading positions for Deutsche Telekom and the Indian mobile phone company Jio.

Frank Westhoff is a former board member of DZ Bank. He was a member of the board of the cooperative central institution as Chief Risk Officer from 2006 to 2017. Before that, he worked for Deutsche Bank, among others, for more than a decade.

Due to the ongoing Corona pandemic, Commerzbank’s AGM will once again have to be held as a virtual event without the physical presence of shareholders. The invitation to the AGM will be published in short term.

*** Press contact Sascha Ullrich +49 69 136 82349 Erik Nebel +49 69 136 44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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Commerzbank is making good progress on its roadmap towards the cost reductions targeted in its strategy 2024. The Bank has reached an agreement with the Central Works Council on a voluntary programme for the necessary headcount reduction. A reduction in Germany totalling around 1,700 full-time equivalents is to be achieved through the programme by the end of 2021.

“The voluntary programme is an important step in the necessary headcount reduction,” commented Sabine Schmittroth, Member of the Board responsible for Group Human Resources. “We are quickly providing instruments that will already reduce the cost base in the coming year”.

Under the programme, entitled employees are to be offered termination agreements from July 2021. Employees who make use of the voluntary programme will leave the Bank by the end of the year.

In the first quarter of 2021, the Bank will book restructuring charges amounting to a total of around €470 million. The majority results from the voluntary programme. Further restructuring expenses are mostly booked for the restructuring abroad and for real estate. The Bank had announced that it is spending a total or around €1.8 billion for restructuring in the context of its strategy 2024. Including the provisions for the voluntary programme, around €1.4 billion have already been booked.

*** Press contact Sascha Ullrich +49 69 136 82349 Erik Nebel +49 69 136 44986

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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The significance of the renminbi continues to grow among Commerzbank’s corporate clients. The majority of companies with annual sales of €250m or more see the Chinese currency as highly relevant: 57% (2019: 46%) now use the renminbi for invoicing in their China business, and a further 20% of this group plan to make the switch in the next 12 months. In the category for companies with annual sales of €50m or more, 42% of firms currently invoice in renminbi, and 26% plan to do so within a year. Hedging foreign exchange risk continues to be the main driver for invoicing (64%). For the companies surveyed, “advantages in opening up markets in China” are almost on a par with “advantages in negotiating pricing” (around 50% in each case).

The Covid-19 pandemic has had a noticeable negative impact on business in China for the majority of companies – with around three-quarters reporting a decline in sales of up to 25%. However, over the course of the year, most of the declines have recovered to pre-crisis levels with two-thirds of the companies surveyed anticipating a positive future trend for business in China. Around 20% of companies say they will remain below pre-crisis levels despite the recovery. Three-quarters of all Commerzbank clients now conduct their China business via locations in Europe, while the most frequented branch in Asia is Shanghai. “For us, this is a clear indication that the renminbi is steadily developing into a “normal” foreign currency for corporate clients and it’s increasingly being settled at their European headquarters”, explains Michael Rugilo, Asia expert at Commerzbank.

38% of the companies surveyed are not currently planning to switch to renminbi (prior year 63%). According to the survey, the main barriers to the changeover are “established practices” (59%) and “the trading partner’s preference for euros or US dollars” (54%). Two other obstacles have become more relevant: persistently rigid capital outflow restrictions and “lack of confidence in the sustainability of the currency”, both criticised by 18% (2019: 11%) of respondents. 13% of the corporates also cite “political uncertainties”.

In day-to-day business, trade services (69%) and foreign exchange hedging and risk management instruments (59%) are the main instruments used in connection with renminbi products. Compared to 2019, the use of cash services and capital transfers has decreased. Of cash services, the majority of companies use renminbi payment transactions and accounts. “The fact that demand for renminbi financing declined during the pandemic demonstrates that many clients have an adequate capital base – even in pandemic times”, explains Mr Rugilo.

For the majority of respondents (63%), the US-China trade conflict has no impact on day-to-day business with China, even after the change of government in the US. This assessment is unchanged from 2019. Companies that are feeling the effects of the trade conflict are responding primarily by moving away from invoicing their China business in USD. One-fifth are relocating business to other markets. Just under 20% of respondents expect the trade conflict to improve, but the clear majority assume that there will be no change despite the new government. “The adjustment of freight routes clearly emphasises two things: firstly, how flexibly corporate clients can react to regulatory changes and secondly, the expectation that the trade conflict will last longer”, remarks Mr Rugilo.

In what is now its fifth survey, Commerzbank, in cooperation with the survey institute forsa, questioned more than 220 corporate clients with Asian business in Europe from 25 January to 9 February 2021.

*** Press contact: Maximilian Bicker: +49 69 136 22440 Bernd Reh: +49 69 136 46971

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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Helmut Gottschalk is to become new Chairman of the Supervisory Board. This was decided by the Supervisory Board today. Initially, Gottschalk will be proposed to the shareholders at the Annual General Meeting (AGM) for election as a new member of the Supervisory Board. Immediately after his appointment by the AGM, the Supervisory Board intends to elect Gottschalk as Chairman of the Supervisory Board.

Gottschalk is to succeed Hans-Jörg Vetter, who resigned from office on 16 March for health reasons. Gottschalk served for a total of 15 years on the Supervisory Board of the cooperative central bank DZ Bank AG, which he successfully led as Chairman from 2010 to 2018.

The Supervisory Board moved ahead quickly with the selection process for its new Chairman. The company also expects the Supervisory Board to find a swift solution for the remaining vacancy, so that the AGM can be scheduled at short notice and shareholders can be invited accordingly.

*** Press contact Sascha Ullrich +49 69 136 82349 Erik Nebel +49 69 136 44986

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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Google Cloud and Commerzbank, a leading German commercial bank with a strong international focus, announced today that they are expanding their collaboration by entering into a five-year strategic partnership. With the help of Google Cloud, Commerzbank will move a significant number of its banking applications to the cloud, a continuation of a comprehensive digital transformation strategy underway since 2017. Google Cloud will support Commerzbank on its journey to build a cloud transformation organisation and to innovate new solutions for the Bank’s customers.

Commerzbank is increasingly using cloud technology to bring new products and customer experiences to market faster, improve the performance of its systems, and reduce operating costs. This is intended to accelerate the Bank’s overall digital transformation, which includes a goal of running 85 per cent of its decentralised applications on the cloud by 2024.

“In our new ‘Strategy 2024’, a multicloud approach continues to play a major role. We will benefit from Google Cloud’s extensive capabilities in infrastructure modernisation, as well as from its know-how in data analytics and machine learning, as one of the pioneers of this technology. As we move to the cloud, Google Cloud is an important strategic partner,” said Jörg Hessenmüller, Chief Operating Officer (COO) and member of the Board of Managing Directors of Commerzbank.

Google Cloud has been providing Commerzbank with cloud technologies and expertise since 2017. With this new, expanded agreement, Google will now offer the Bank a deeper set of platform services to support its digital transformation. Using Google Cloud will allow Commerzbank developers to follow a continuous integration and continuous delivery (CI/CD) approach, enabling them to make updates to code more seamlessly. This means that building and maintaining applications will be faster and easier, ensuring that end users have access to cutting edge financial apps.

Commerzbank customers are already using the first application developed on Google Cloud platform – the “Digitale Kontoanalyse,” i.e. the “digital account analysis”. This application provides multiple benefits for banking customers and Commerzbank employees, including:

“We are excited to work with Commerzbank to help the Bank transform digitally. This partnership means that Google Cloud not only meets the high regulatory requirements of the financial sector, but we also cooperate on industry-wide initiatives such as the Collaborative Cloud Audit Group to provide verifiable transparency against important compliance standards in the financial services industry,” said Daniel Holz, Vice President, EMEA North Region at Google Cloud.

The Collaborative Cloud Audit Group (CCAG) is a group of financial services firms in Europe that performs pooled audits of cloud providers like Google Cloud to ensure regulatory compliance of their material outsourcing operations.

***

Press contact Commerzbank Silke Lerch +49 69 136-50428 Cornelia Bohland +49 69 136-24994 Carsten Kipper +49 69 136-45189

Press contact Google Cloud Lilian Randzio-Niedermeier +49 1520 268-3262 Jane Khodos +1 650 335-5771

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of Comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced online banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

About Google Cloud Google Cloud accelerates organizations’ ability to digitally transform their business with the best infrastructure, platform, industry solutions and expertise. We deliver enterprise-grade cloud solutions that leverage Google’s cutting-edge technology to help companies operate more efficiently and adapt to changing needs, giving customers a foundation for the future. Customers in more than 200 countries and territories turn to Google Cloud as their trusted partner to solve their most critical business problems.

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The Board of Managing Directors of Commerzbank AG has decided to postpone the Annual General Meeting (AGM) originally planned for 5 May 2021. The postponement is due to the ongoing restaffing on the Supervisory Board. The company aims to hold the AGM in short term and publish the necessary election proposals with the invitation.

The Supervisory Board swiftly pushes ahead with the restaffing. There are two positions to be filled. On 16 March, the Chairman of the Supervisory Board, Hans-Jörg Vetter, resigned his mandate for health reasons. In addition, Supervisory Board member Andreas Schmitz resigned his mandate yesterday evening with immediate effect.

Despite the postponement of the AGM, the Board of Managing Directors continues to consistently implement the new strategy and maintains the targeted schedule for the conclusion of the necessary framework agreements for the planned reduction of staff.

*** Press contact Sascha Ullrich +49 69 136 82349 Erik Nebel +49 69 136 44986 Maurice Farrouh +49 69 136 21947

*** About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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As early as this year, Commerzbank intends to complete key restructuring steps announced in its programme “Strategy 2024” on 3 February 2021. The aim of the restructuring is to become the direct and advisory bank for Germany and to further strengthen its leading position as the Bank for the German Mittelstand and a strong partner for around eleven million private and small-business customers.

After the financial year 2020 was negatively affected by the effects of the coronavirus pandemic and the provision set aside for the planned restructuring, the Bank is aiming to return to a positive operating result already in the current year. Over the coming four years, costs will be substantially reduced, and profitability will be significantly increased on the basis of a detailed implementation plan for the new strategy programme. Commerzbank is targeting an operating profit of around €2.7 billion and a return on tangible equity (RoTE) of around 7% for 2024. The resumption of dividend payments is planned for the 2023 financial year. There is the potential to return overall up to €3 billion to shareholders in the years 2023 and 2024 in the way of dividends or share buybacks, subject to a successful transformation and prior permission of the European Central Bank.

“We want to be sustainably profitable and shape our own destiny as an independent force in the German banking market,” commented Manfred Knof, Chairman of the Board of Managing Directors of Commerzbank. “To achieve this aim, we need to carry out an in-depth restructuring of the Bank over the coming years. Our ‘Strategy 2024’ represents customer centricity, digitalisation, sustainability, and profitability. We will consistently and rapidly implement our plan”.

As a result of “Strategy 2024”, Commerzbank is targeting a reduction in costs by €1.4 billion or around 20% in 2024 by comparison with 2020. One third of the envisaged savings are already planned for implementation by 2022. At the same time, revenues are expected to remain largely stable – mBank will continue its revenue growth.

Commerzbank will reduce approximately 10,000 full-time equivalents in gross terms as announced. At the same time, the recruitment of around 2,500 full-time positions is planned. This will allow the Bank to further reduce its costs, among others for external service providers. In total, the net reduction amounts to around 7,500 full-time positions. The necessary framework agreements are expected to be concluded with the Group Works Council until the Annual General Meeting on 5 May 2021.

Private and Small-Business Customers: Increase in profitability

Commerzbank has defined ambitious goals in both business segments for 2024. It targets a pre-tax return (RoCET) of 25% in the Private and Small-Business Customers segment including mBank and a cost-income ratio (CIR) of 59% including compulsory contributions.

The Bank will achieve this by further developing the segment into an attractive combination of a highly efficient direct bank and first-class advisory offering. This will combine the strengths of comdirect with the advisory expertise of Commerzbank. Commerzbank will reduce the number of branches from the current level of 790 to 450 locations. At these branches, customers will receive advice on issues like account, card, and consumer credit, as well as being supported in the use of digital offerings. Private and small-business customers with a greater requirement for advisory services will receive comprehensive personal support and individual solutions on all issues related to investing and financing at 220 of these locations. Commerzbank intends to significantly expand its business with affluent customers and small-business customers in Private Banking and Wealth Management.

Corporate Clients: Significant efficiency gains

In the Corporate Clients business, Commerzbank is targeting a pre-tax return (RoCET) of 9% based on stringent RWA management and is aiming for a cost-income ratio (CIR) including compulsory contributions of 62% in 2024.

In future, the Bank will focus on the German Mittelstand and large corporates and on international customers with German connectivity. Commerzbank will only provide advisory services for further international corporate clients if they are operating in selected future-oriented sectors such as mobility, sustainability, communications, life sciences, and capital goods. The Bank will continue to maintain its responsibility as a strong financing and hedging partner for German companies conducting import and export business around the world. Corporate clients will continue to be offered personal advisory services and a network of regional locations. At the same time, an innovative direct bank offering for corporate clients will gradually be established with a standardised product and advisory offering.

Fast implementation of the new strategy

“Strategy 2024” is underpinned by clearly defined measures and milestones. The implementation plan envisages the closure of a further 190 branches over the course of 2021. The Bank will close a further 150 branches in 2022 and 2023 and establish the central advisory centres for the Private and Small-Business Customers segment. At the same time, the Corporate Clients segment will be largely digitalised, the product offering will be streamlined and the presence overseas will be adapted to the customer structure. More than 80% of the envisaged headcount reduction is set to be completed by year-end 2023. The cost savings are planned to start taking full effect in 2024.

Provision for planned restructuring and coronavirus crisis negatively impacted 2020 results

In the financial year 2020, Commerzbank established the foundation for the restructuring. With a charge of €814 million, the Bank booked a substantial proportion of the planned restructuring expenses of around €1.8 billion. Apart from the restructuring charge, the Bank incurred the impairment of goodwill and other intangible assets of around €1.6 billion, which, however, had no effects on the regulatory capital base. This led to a net result of minus €2,870 million (2019: plus €585 million).

In 2020, the operating business was clearly impacted by the coronavirus pandemic. Commerzbank took €505 million additional provisions for coronavirus effects (“top-level adjustment”) anticipated for 2021. Furthermore, legal provisions for foreign-currency loans at mBank were increased by €229 million. Together with negative exceptional revenue items, this led to an operating result of minus €233 million in 2020 (2019: plus €1,253 million).

Despite the net loss, the Common Equity Tier 1 ratio (CET 1 ratio) amounted to 13.2% at the end of 2020 (year-end 2019: 13.4%) and, with around 370 basis points, remained clearly above the minimum regulatory requirement of 9.5% (MDA threshold).

“We have cleaned-up our balance sheet and made provision for an economic environment that continues to be uncertain,” said Bettina Orlopp, Chief Financial Officer of Commerzbank. “Our comfortable capital position gives us adequate financial leeway for the implementation of our ‘Strategy 2024’ over the upcoming years”.

Stable underlying revenues – high quality of the loan book

Excluding the €229 million increase in provisions for foreign currency loans at mBank, underlying revenues continued to remain almost stable at €8,447 million (2019: 8,615 million) This was in particular due to net commission income, which the Bank increased by almost 9% thanks to a strong securities business. It more than compensated the burden from the interest rate environment. Including negative exceptional items and valuation effects, Group revenues decreased to €8,186 million (2019: €8,639 million).

Administrative expenses were reduced by 2.4% to €6,160 million (2019: €6,313 million) through effective cost management. This was driven by the net headcount reduction of around 900 full-time equivalents and savings in expenses for advertising and business travel and lower depreciation. This contrasted with a further increase of compulsory contributions by 13% to €512 million. Nevertheless, costs came down overall to €6,672 million (2019: €6,766 million) and were therefore around €200 million below the original expectation for 2020.

Against the background of the global pandemic, the risk result in 2020 rose to minus €1,748 million (2019: minus €620 million). This includes negative impacts from the coronavirus pandemic amounting to €961 million. The quality of the loan book at year-end continues to be high with a non-performing exposure ratio (NPE ratio) of only 1.0%.

Corporate Clients negatively impacted by coronavirus crisis – Lower effects on private customers

The Private and Small-Business Customers (PSBC) segment again performed well in its customer business in 2020. Loan volumes in the domestic market grew by €8 billion to €112 billion. The volume of mortgage lending alone increased by 7% to €86 billion on the back of record high new business volumes. The securities volume experienced strong growth of €20 billion to €177 billion, of which net inflows amounted to around €12 billion.

Thanks to the high level of customer activity, the segment increased net commission income by 12% to €2,151 million. This led to stable underlying revenues of €4,826 million (2019: €4,846 million) and compensated negative impacts from additional higher provisions for foreign-currency loans at mBank. The risk result rose to minus €562 million (2019: minus €254 million). Overall, the operating profit for the segment amounted to €368 million (2019: €831 million) in 2020.

The development in the Corporate Clients segment was significantly impacted by the coronavirus pandemic in the past financial year. Revenues came down to €3,216 million (2019: €3,360 million). The strict RWA management by the Bank and lower liquidity requirements from customers on account of the coronavirus pandemic led to a reduction in loan volumes. Furthermore, the decline in the global economy exerted a negative impact on the demand for trade finance. However, stronger capital market business partly compensated revenue reductions in trade finance and the loan business. Due to the pandemic, the risk result of the segment increased to minus €1,081 million (2019: minus €342 million). Of these, €373 million were booked as additional provisions for expected coronavirus effects in 2021 (“top-level adjustment”). With reduced operating expenses, the operating result of the segment was minus €458 million (2019: plus €336 million).

Outlook for 2021

For the current financial year, Commerzbank expects slightly lower revenues reflecting the focus on a more efficient use of equity capital (RWA optimisation) in the transformation. With increasing investments and initial cost measures from the transformation, the Bank aims for a cost reduction to around €6.5 billion. Depending on the development of the coronavirus pandemic, the Bank expects a risk result of between minus €0.8 billion and minus €1.2 billion. A positive operating result is expected for 2021. Taking into account the planned additional restructuring expenses of around €0.9 billion, Commerzbank is targeting a Common Equity Tier 1 ratio (CET 1 ratio) of more than 12% at year-end.

The figures presented in this press release for the year 2020 are preliminary and have not been audited.

The annual press conference will be broadcast live on the internet from 10.30 am onwards today. Photos will be available at around 1 pm here.

*** Press contact Margarita Thiel +49 69 136-46646 Sascha Ullrich +49 69 136-82349 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

About Commerzbank Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 30,000 corporate client groups and around 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. Following the integration of comdirect, private and small-business customers benefit from the services offered by one of Germany’s most advanced direct banks combined with personal advisory support on site. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2020, Commerzbank generated gross revenues of some €8.2 billion with almost 48,000 employees.

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Today, the Board of Managing Directors resolved the new strategy for the period ending 2024 following a discussion with the Supervisory Board. The cornerstones of the new strategy programme “Strategy 2024” had already been announced on 28 January 2021. Commerzbank will present details of the strategy, the concrete measures and targets for the years 2021 to 2024 at the annual results press conference on 11 February 2021.

Today’s resolution of the Board of Managing Directors initiates an in-depth restructuring programme as well as a comprehensive digitalisation of the Bank. The objective of the transformation is to combine the benefits of a fully digitalised bank with personal advice, consistent customer focus, and sustainability.

Manfred Knof, Chairman of the Board of Managing Directors of Commerzbank AG: “Our new strategy creates a strong foundation for a sustainably profitable and highly efficient Commerzbank. The planned reductions are certainly very painful. We will implement this programme rigorously and consistently but also in a fair manner and with mutual respect. The agreement signed with the employee representatives today will contribute to creating clarity for our workforce soon."

Agreement concluded with the Group Works Council

Today, the Board of Managing Directors signed an agreement with the Group Works Council of Commerzbank AG. The agreement enables the Bank to expedite the negotiations on human resources aspects of the transformation process swiftly and with the appropriate fairness and transparency. The agreement defines fundamental principles for shaping the transformation process at Commerzbank AG Germany. The objective is to provide clarity and transparency as early as possible about positions affected, timeframes and perspectives. The objective is to conclude the necessary framework arrangements – framework settlement of interests and a framework social plan – with the Group Works Council already for the Annual General Meeting being held on 5 May 2021.

Cost reductions of €1.4 billion targeted

As a result of the restructuring, Commerzbank targets a return on equity (RoTE) of approximately 7 per cent for the financial year 2024. Compared to the figures expected for 2020, costs will be reduced by €1.4 billion or around 20 per cent by 2024. At the same time, revenues are expected to remain largely stable – excluding the further growth of mBank. Commerzbank anticipates restructuring expenses totalling €1.8 billion, which will be fully financed with existing funds. The restructuring expenses will be fully booked in the current financial year. A provision of €0.8 billion was already set aside in the financial year 2020 to cover a substantial proportion of the restructuring expenses that will be incurred. In addition, there are further €0.1 billion in provisions from 2019. By 2024, Commerzbank will reduce approximately 10,000 full-time equivalents in gross terms.

Despite the significant restructuring, the Bank targets a common equity tier 1 ratio (CET 1) which is at least 200 to 250 basis points above the minimum regulatory requirements (MDA). This will enable Commerzbank to remain robust and resilient while efficiently managing its capital.

As part of the Group, mBank will continue pursuing its growth strategy.

Private and Small-Business Customers: transferring the strengths of comdirect to the entire segment

Commerzbank will significantly transform its business with private and small-business customers. The objective is to create an attractive combination of a scalable online bank and a premium advisory offering. This will merge the digital and innovation strengths of comdirect with the advisory expertise of Commerzbank.

Services will be based on the individual needs of customers. In future, the digital services of an online bank will be available to all eleven million private and small-business customers in Germany. Efficient use of data will enable customers to receive tailor made, needs-based solutions – at the right moment and through the right channel. The Bank will offer personal advice at branches and at central advisory centres 24/7.

Commerzbank will reduce the number of branches from the current level of 790 to 450 locations across Germany. This is where customers will have access to advice on topics such as accounts, cards, and consumer loans and receive support on the Bank’s digital offering. At 220 of these locations, wealth management and small-business customers with a greater need for advisory services will receive comprehensive, personal advisory support, and individual solutions on all issues relating to wealth management and finance. Commerzbank intends to significantly expand its business with wealthy customers and small-business customers in its Private Banking and Wealth Management segment.

At the central advisory centres, personal banking advisors will support customers’ service requirements for digital, mobile, or telephone banking 24/7. Customers will also receive comprehensive advice, for example in the areas of securities investment or mortgages.

Corporate Clients: focus on clients with a clear German business angle and future-oriented sectors

Commerzbank is the leading Bank for the Mittelstand. During the coronavirus crisis, it succeeded in once again fulfilling its role as a strong and reliable finance partner for the German economy. Going forward, the Bank will continue to support the German Mittelstand and large corporations, as well as international clients with German connectivity. Commerzbank will only support other international corporate clients if they operate in selected lead sectors with significant future potential. The Bank will remain true to its responsibility as a strong finance and hedging partner for German companies engaging in import and export business throughout the world.

Commerzbank will adopt a more nuanced approach to advisory services for corporate clients and align them more directly with individual needs. Corporate clients will continue to receive personal advisory support and will have access to a network of regional branches. However, individual support for companies will focus on clients with a more sophisticated need for advice and where this can be delivered on a profitable basis. At the same time, an innovative online bank offering will gradually be rolled out for corporate clients with a standardised product and advisory requirement. Profitability is to be significantly enhanced by a number of measures including the digitalisation of processes, optimised pricing structure and, in particular, the use of data-based services.

The product range is to be streamlined and will undergo additional digitalisation. Activities in investment banking will concentrate even more strongly on the requirements of corporate clients. This relates in particular to equity capital markets (ECM) and support for mergers & acquisitions (M&A). These services will be offered exclusively to the Bank’s corporate clients with a corresponding need for advice (e.g. business succession). Cooperations are being examined for equity trading and sales as well as equity research.

Commerzbank will remain a strong partner for its clients in international markets. Its local presence however will be structured more efficiently. This includes the bundling of back-office functions in regional hubs and the optimisation of the correspondent-bank portfolio. As a consequence, the Bank intends to exit 15 international locations and to convert 2 branches into representative offices. Accordingly, the Bank will be present in almost 40 countries going forward.

2020 earnings impacted by goodwill impairment and restructuring expenses

According to preliminary figures, Commerzbank posted an operating profit of minus €233 million in the fiscal year 2020 (2019: +€1,253 million). This clearly reflects the burdens of the coronavirus pandemic. Overall, a net result of almost minus € 2.9 billion (2019: +€585 million) is expected. This includes the already announced restructuring charges of more than €800 million and a goodwill impairment of around €1.5 billion.

Despite the loss, the common equity tier 1 ratio (CET 1 ratio) remained very comfortably above the regulatory requirements at 13.2 per cent as of the end of 2020.

Commerzbank will present its complete financial results at the annual results press conference on 11 February 2021.

*** Press contact Margarita Thiel +49 69 136-46646 Sascha Ullrich +49 69 136-82349 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiary mBank in Poland is an innovative digital bank. The integration of Comdirect enables Commerzbank to combine the services of one of Germany’s most advanced online banks with a personal advisory offering at local level.The Bank serves around 11.6 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Commerzbank intends to launch an in-depth restructuring programme. As part of its transformation, the Bank strives to combine the benefits of a fully digitalised bank with personal advice, consistent customer focus, and sustainability. Costs are to be significantly reduced and profitability substantially increased by 2024.This will enable Commerzbank to further strengthen its leading position as the Bank for the German Mittelstand and as a strong partner for approximately eleven million Private and Small-Business Customers.

The Bank's Board of Managing Directors has submitted a draft of the new strategy programme to the Supervisory Board. The Supervisory Board meeting in which this proposal is due to be discussed is scheduled for 3 February 2021. After that the strategy is to be decided upon by the Board of Managing Directors. So far, no decisions have been taken on any item of the strategy programme. The early publication of planned cornerstones is a consequence of the current media coverage.

Manfred Knof, Chairman of the Board of Managing Directors of Commerzbank AG: “We want to focus on Commerzbank’s strengths and secure its strong performance for the long term. To achieve this, we will thoroughly reduce complexity and cut costs. Our goals are very ambitious, but we will do everything necessary to achieve them. Thereby, the Bank will create value for customers, employees, shareholders, and society as a whole”.

The strategy programme builds on the following key levers:

- Going forward, the Bank will consistently put profitability before growth, for example when it comes to the efficient use of capital or adequate pricing of products and services.

- As part of the Group’s restructuring, there will be a significant headcount reduction. By 2024, Commerzbank will reduce approximately 10,000 full-time equivalents in gross terms. In Germany, will affect every third job. Commerzbank will work with employee representatives to agree fair and – as far as possible – socially responsible solutions for the headcount reduction. The Bank is working towards a swift agreement on the planned headcount reduction with the Works Council to launch implementation as soon as possible.

- As part of a wide-ranging digitalisation, the Bank will substantially reduce the branch network and significantly expand its digital offerings for customers. The number of branches is to be reduced from the current level of 790 to 450 locations across Germany. At the same time, the Bank will simplify, digitalise and automate its business processes. To achieve this, Commerzbank will invest a total of €1.7 billion in its IT over the next four years.

- Furthermore, the Bank will accelerate its cultural transformation with the objective to strengthen a success-oriented performance culture.

Sustainability will play an even more central role across all business activities going forward. Commerzbank intends to commit to ambitious targets. A corresponding strategy will be presented in the near future.

Cost reductions of €1.4 billion targeted

As a result of the restructuring, Commerzbank targets a return on equity (RoTE) of 6.5 to 7 per cent for the financial year 2024. Compared to the figures expected for 2020, costs will be reduced by €1.4 billion or around 20 per cent by 2024. At the same time, revenues are expected to remain largely stable – excluding further growth of mBank. Commerzbank is anticipating restructuring expenses totalling €1.8 billion, which will be fully financed with existing funds. The restructuring expenses will be fully booked in the current financial year. A provision of €0.8 billion was already set aside in the financial year 2020 to cover a substantial proportion of the restructuring expenses that will be incurred. In addition, there are further €0.1 billion in provisions from 2019.

Despite of the significant restructuring, the Bank targets a Common Equity Tier 1 ratio (CET 1) which is at least 200 to 250 basis points above the minimum regulatory requirements (MDA). This will enable Commerzbank to retain its resilience while efficiently managing its capital.

As part of the Group, mBank will continue its growth strategy.

***

Subject to a positive decision by the Board of Managing Directors, Commerzbank will present details of the strategy and concrete measures and targets for the years 2021 to 2024 at the annual results press conference on 11 February 2021. A capital markets day will also be held for investors on the same day. Journalists will be able to follow this online on the Commerzbank website after having registered in advance.

***

Press contact

Margarita Thiel +49 69 136-46646

Sascha Ullrich +49 69 136-82349

Erik Nebel +49 69 136-44986

Maurice Farrouh +49 69 136-21947

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiary mBank in Poland is an innovative digital bank. The integration of Comdirect enables Commerzbank to combine the services of one of Germany’s most advanced online banks with a personal advisory offering at local level.The Bank serves around 11.6 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

***

Disclaimer

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Cloud computing is a key strategic technology for the digital transformation of the European financial sector. So far private clouds have been widely used, but public cloud solutions are becoming increasingly important due to their flexibility and scalability, as well as the high-quality security and resilience standards.

Therefore, leading European financial Institutions have taken the initiative to establish the European Cloud User Coalition (ECUC). Amongst others Allied Irish Banks, BAWAG Group., Belfius Bank, Commerzbank AG, Deutsche Börse AG, EFG Bank AG, Erste Group Bank, Euroclear, ING Groep N.V., KBC Bank NV, Swedbank AB and UniCredit S.p.A. have joined the ECUC to ensure and enable secure cloud applications for the European financial industry as a whole.

Besides winning new members ECUCs objective is to jointly agree on security standards and best practices for the use of cloud technology for European financial players. On that basis the high European regulatory and data protection standards will be better enforced with non-European cloud providers as well. As a result, financial institutions will in the long term be more independent in their technology selection, thus strengthening competition.

As a first step, ECUC will publish a paper with requirements for cloud services during 2021. The paper will consider all aspects of the basic European regulation and the data localization provision, including General Data Protection Regulation (GDPR) requirements.

*** Press Contact Name: Oliver Redenius Telephone: +49 69 136-27164 Email: oliver.redenius@commerzbank.com

ECUC Contact Name: Dirk Thomas Telephone: +49 69 136-43689 Email: member@ecuc.group

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On 1 January 2021, Sabrina Kensy (38) took on the role of Divisional Board Member leading Commerzbank’s corporate clients business in the Central/East market region. In this role, she is responsible for the division in the five eastern federal states and Berlin, as well as in Hesse, Rhineland-Palatinate and Saarland. She succeeds Michael Kotzbauer, who has taken over the position of Board Member for Corporate Clients.

In addition to many years of experience, Sabrina Kensy brings along her excellent expertise in all aspects of the corporate clients business. She started her professional career at Commerzbank in 2001, working initially in risk management and in various sales functions. She has led the Divisional Board office of Mittelstandsbank Central/East since 2015. In this function, she had already assumed responsibility for the strategic management of the regional business, which she will continue to manage from Berlin.

“I am personally delighted that, with Sabrina Kensy, we have succeeded in filling this important position in corporate clients sales with an internal solution,” said Michael Kotzbauer, Board Member for Corporate Clients. “She is extremely well connected in the region and has many years of sales experience in the large corporates and Mittelstand business. She has been valued by our customers for many years. I am convinced that with Sabrina Kensy at the helm of Mittelstandsbank Central/East, we will succeed in further strengthening our leading market position in the region”.

*** Press contact Maximilian Bicker +49 69 136 22440 Bernd Reh +49 69 136 46971

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In its two divisions – Private and Small-Business Customers and Corporate Clients – the Bank offers a comprehensive portfolio of financial services tailored to the needs of its clients. Commerzbank finances around 30% of Germany's foreign trade and is the market leader in the German corporate clients business. The Bank makes its sector expertise available to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiary mBank in Poland is an innovative digital bank. With the integration of Comdirect, Commerzbank combines the services of one of the most modern online banks in Germany with personal advice in the branch. Overall, the Bank serves 11.6 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers and institutional clients worldwide. The Polish subsidiary mBank S.A. serves around 5.7 million private customers and corporate clients, mainly in Poland but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of EUR 8.6 billion with approximately 48,500 employees.

Commerzbank expects the existing goodwill of around €1,5 billion to be fully written-off due to among others deteriorating market parameters, in particular the level of interest rates in the euro area and in Poland. The changed market parameters that led to the goodwill write-off will also have a negative impact on the valuation of the deferred tax assets.

The required write-off of goodwill has no impact on the capital ratio, which the Bank continues to expect at around 13% at the end of 2020.

Manfred Knof, CEO of Commerzbank, stated: "After this balance sheet clean-up, we are well prepared for the road ahead of us. Our goal is to make the bank more profitable in the long term”.

For the financial year 2020, the bank also expects a risk result of at least minus €1.7 billion. This already includes a top-level adjustment of around €500 million for expected Corona-related effects in 2021. With the higher risk result the bank also anticipates the currently expected impact of the second lockdown.

"By increasing our risk result we are responding to the ongoing Corona pandemic and feel well prepared for further developments this year," said Bettina Orlopp.

*** Press contact Erik Nebel +49 69 136-44986 Sascha Ullrich +49 69 136-82349

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Sven Korndörffer will take up his position as new Head of Group Communications at Commerzbank on 1 April 2021 at the latest. He will succeed Richard Lips who left Commerzbank at the end of last year at his own request. As Divisional Board Member for Group Communications at Commerzbank, Sven Korndörffer will take over responsibility for the Corporate Communications, Public Affairs, Brand Management and Communication Products and Services divisions, including corporate communications, public affairs with its liaison offices in Brussels and Berlin, brand management, market research and the Commerzbank foundation. He will report to Manfred Knof, who took over as Chairman of the Board of Managing Directors of Commerzbank on 1 January 2021.

Manfred Knof, CEO of Commerzbank, said: “I am delighted to have won an experienced, bold and creative communications manager in Sven Korndörffer. He will set a fresh tone in Group Communications during a demanding transformative phase for Commerzbank, thus making an important contribution towards leading Commerzbank into a sustainably successful future. On behalf of the Board of Managing Directors and the Supervisory Board, I would like to thank Richard Lips for the outstanding service he has rendered to Commerzbank over the last 15 years. We all wish him the very best for his further personal and professional life”.

Sven Korndörffer will join from Aareal Bank, where he is Managing Director Group Communications and Governmental Affairs, holding responsibility for internal and external communications, marketing and public affairs. Prior to joining Aareal Bank, he held various positions at Norddeutsche Landesbank (NordLB) between 1995 and 2007, initially within Group Communication and International Relations, later as personal assistant to the Chairman of the Executive Board. In his most recent position at NordLB, the graduate economist headed the Management Board Office as a Bank Director.

*** Press contact Margarita Thiel +49 69 136-46646 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiary mBank in Poland is an innovative digital bank. The integration of Comdirect enables Commerzbank to combine the services of one of Germany’s most advanced online banks with a personal advisory offering at local level. The Bank serves around 11.6 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Commerzbank has reached agreement with the Group Works Council about the planning of restructuring measures in the period from 2021 to 2024. These are based on the existing resolution for the strategy Commerzbank 5.0. The Board of Managing Directors of Commerzbank then passed a resolution to book additional provisions for restructuring measures of a total of 610 million euros in the fourth quarter 2020. These are attributable to the reduction of 2,300 full-time positions. The formation of provisions is yet subject to approval by the auditor.

“As announced, we are posting additional restructuring expenses in the fourth quarter. As a consequence, we are creating the basis for absolutely necessary future cost savings,” said Bettina Orlopp, Chief Financial Officer of Commerzbank.

In the third quarter of 2020, the Bank had already formed restructuring provisions in the amount of around 200 million euros to cover various issues including a part-time retirement programme. A planned reduction of around 2,900 full-time positions results from this measure and from the provisions formed in the fourth quarter. In September 2019, the Bank had announced a reduction by 4,300 full-time positions overall.

The restructuring provisions will have a correspondingly negative impact on the net result in the fourth quarter of 2020.

The bank is planning further restructuring measures as part of the new strategy to be announced in the first quarter of 2021. Details on this have yet to be worked out and decided.

*** Press contact Maurice Farrouh +49 69 136- 21947

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As part of the annual review and in the course of methodological changes, the Federal Financial Supervisory Authority (BaFin) has reduced the German O-SII buffer for Commerzbank AG as an otherwise systemically important institution from 1.5% to 1.25% with immediate effect.

In the annual Supervisory Review and Evaluation Process (SREP) the European Central Bank (ECB) has confirmed that the bank-specific capital requirements for Commerzbank Group remain in place for 2021. The additional own funds requirement of Pillar 2 (P2R) of 2% is composed of CET 1 capital, additional core capital (AT 1) and Tier 2 capital.

The Common Equity Tier 1 capital requirement for Commerzbank on group level as of 30 September 2020 stands pro forma at 9.53% based on risk weighted assets (MDA threshold). This requirement consists of the CET1 minimum requirement of 4.5%, the pillar 2 requirement (P2R) of 1.125%, the capital conservation buffer of 2.5%, the reduced O-SII capital buffer of 1.25% and the countercyclical capital buffer of currently 0.02%. As a result of several AT 1 bond issuances in 2020 the AT 1 shortfall which also needs to be fulfilled with CET 1 has been significantly reduced to 0.14%.

With a CET 1 ratio of 13.5% as of 30 September 2020, the distance to the MDA threshold (Maximum Distributable Amount) of close to 400 basis points – pro forma after taking into account the reduction of the O-SII capital buffer – is very comfortably above regulatory requirements.

*** Press contact Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiary mBank in Poland is an innovative digital bank. The integration of comdirect enables Commerzbank to combine the services of one of Germany’s most advanced online banks with a personal advisory offering at local level. The Bank serves around 11.6 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Roland Boekhout, Member of the Board of Managing Directors for the Corporate Clients segment, has offered a mutually agreed termination of his contract to the Supervisory Board. At its meeting today, the Supervisory Board of Commerzbank decided to accept the mutually agreed termination of Roland Boekhout’s contract. Reason for it were differing views on the future set up of the corporate clients business. His appointment to the Board of Managing Directors will end on 31 December 2020.

In the same meeting, the Supervisory Board decided to appoint Michael Kotzbauer, currently Divisional Board Member in the Corporate Clients segment responsible for Mittelstandsbank Central/East, as new Executive Board Member for Corporate Clients from 1 January 2021. His appointment is still subject to regulatory approval.

Hans-Jörg Vetter, Chairman of the Supervisory Board of Commerzbank, said: „Roland Boekhout has decided to leave Commerzbank due to differing views on the future set up of the corporate clients business. I would like to thank him for his openness and respect the consequence of his decision. I wish him all the best for his private and professional future. At the same time, I am glad to be able to ensure a seamless hand over of the segment to a veteran in the Corporate Clients business with a deep understanding of our clients needs. In particular, he is a proven expert in the business with the German Mittelstand, in which the bank has a leading position. I wish Michael every success for his new role”.

As of January 1, 2020, Roland Boekhout assumed responsibility for Commerzbank's corporate clients business. Prior to this, Roland Boekhout was a member of the Management Board Banking of the ING Group in the Netherlands and also served as CEO of ING in Germany from 2010 to 2017. Boekhout studied business administration at the Erasmus University in Rotterdam and completed the general management program CEDEP at the INSEAD in Fontainebleau. After three years at Unilever in the Netherlands from 1988 to 1991, Roland Boekhout joined ING Group. There, his career saw him take up various management positions, including in the US, Poland and Mexico.

Michael Kotzbauer began his career at Commerzbank in 1990 after studying business administration. Since 2017 he has been Divisional Board Member in the Corporate Clients segment responsible for Mittelstandsbank Central/East, which includes Hesse, Rhineland-Palatinate, Saarland and the East German federal states including Berlin. Prior to this, he was Divisional Board Member responsible for the capital market-oriented business with large corporates in Southern and Eastern Germany until 2015. From 2010 to 2013, he was Regional Board Member for the corporate clients business in Asia located in Shanghai.

*** Press contact Margarita Thiel +49 69 136-46646 Maximilian Bicker +49 69 136-22440

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiary mBank in Poland is an innovative digital bank. The integration of comdirect enables Commerzbank to combine the services of one of Germany’s most advanced online banks with a personal advisory offering at local level. The Bank serves around 11.6 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Eurozone in lockdown: the current quarter as well as the first quarter of 2021 will be marked by lockdowns. German gross domestic product (GDP) is likely to fall in the winter months. “We expect a technical recession in Germany, even if industry is holding up well," said Commerzbank Chief Economist Dr. Jörg Krämer. However, a strong recovery is likely to begin in the spring. Firstly, the rate of infection is likely to subside due to warmer temperatures. Secondly, a broad-based vaccination programme should have sufficiently immunised the population from autumn onwards. Thirdly, consumers will spend part of the large volume of savings they had accumulated especially in the spring. “Based on our estimates, these coronavirus savings add up to a considerable 4% of disposable income in Germany," comments Dr. Jörg Krämer. The German economy, like most eurozone countries, will have returned to pre-crisis levels by the end of next year at the latest. Commerzbank’s economists expect annual growth for 2021 to average at 4.5% for Germany and at 5.0% for the eurozone; they are therefore more optimistic than the average consensus of economists in general.

Fiscal policy: relaxation beyond 2021

The role of the state in combating the pandemic, as well as in mitigating its economic consequences, has been met with increased acceptance. “The reawakened belief in the state favours a climate in which economic policy will remain in coronavirus mode for a long time to come, even if the slump in gross domestic product is offset again," Dr. Jörg Krämer stated. “EU fiscal policy will allow euro area countries to run budget deficits above 3% of GDP long after the crisis has subsided. The €750bn coronavirus pandemic recovery fund, which should be launched at the start of 2021, is also synonymous with this transition," says Dr. Jörg Krämer. Commerzbank’s economists estimate that the EU will disburse a good €400bn in the form of loans and non-repayable grants over the next two years. This corresponds to 1.6% of EU gross domestic product on average.

ECB: monetary easing will not end in December

Since the outbreak of the coronavirus pandemic, the ECB’s net bond purchases have equated to the EU member states’ total net issuance. “Since the outbreak of the virus, the ECB has been financing entire national budget deficits,” explains Dr. Jörg Krämer. According to Commerzbank’s economists, the ECB will extend the PEPP bond purchase programme by six months up to the end of 2021 at least and increase the volume by €600bn to €1,950bn. While interest rate cuts are no longer expected, there should be a further increase in bond purchases in mid-2022.

With the prospect of a very expansive fiscal and monetary policy longer term, we will see continued asset price inflation. The ten-year German government bond yield, for example, is likely to remain in negative territory over the next two years, fluctuating around the -0.5% mark according to Commerzbank Research. The DAX is forecast to rise further in 2021 (year-end target: 14,200), even though the price-earnings ratio is already well above the ten-year average. “The fact that the loose monetary policy continues to spark off rising asset prices is because consumer price inflation is expected to remain low in the coming years,” Dr. Jörg Krämer explains. Commerzbank’s economists expect core inflation (inflation excluding energy, food and beverages) to average at just 0.8% in the coming year, although it will rise slightly temporarily once the wave of infection has subsided.

Commerzbank Research forecasts

*** Press contact Bernd Reh +49 69 136-46971

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiary mBank in Poland is an innovative digital bank. The integration of Comdirect enables Commerzbank to combine the services of one of Germany’s most advanced online banks with a personal advisory offering at local level. The Bank serves around 11.6 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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For the third quarter 2020, Commerzbank reported a stable customer business in spite of the coronavirus crisis and made significant progress in transforming the Bank. Thanks to strong net commission income, underlying revenues remained almost stable. The operating result was €168 million. This reflects the further risk provisioning as a consequence of the coronavirus pandemic. The Bank has continued to bring down operating costs. It has laid the foundation for further cost reductions with the launch of further programmes for the necessary headcount reduction and the closure of about 200 branches. In the third quarter, the Bank booked a restructuring charge of €201 million for these items, which brought the net result to minus €69 million. Nevertheless, the Common Equity Tier 1 ratio improved to a strong 13.5% at the end of September 2020 and continued to be clearly above all regulatory requirements.

Good progress was made in business development. The Bank benefited from a high level of securities trading activities in the Private and Small-Business Customers segment and continued to grow the customer base. The completed merger with comdirect a few days ago will enable Commerzbank to combine the services of one of the most advanced online banks in Germany with personal advisory capability at local level and achieve targeted synergies. In the Corporate Clients segment, the Bank sustained its leading position in debt capital market business and acted, among other things, as joint lead manager for the issuance of the inaugural Green Bond of the Federal Republic of Germany. The Bank took further steps on sustainability. It very successfully issued its second own Green Bond and expanded its offering of more sustainable investments with the new mutual fund Klimavest. Furthermore, Commerzbank has been one of the official supporters of the Task Force on Climate-related Financial Disclosures (TCFD) since the beginning of September 2020. The Bank will thus take into account climate risks in managing its loan portfolio and will make those climate risks transparent in future.

“In spite of the challenging environment, we continue to be at the side of our customers, and we are making progress towards becoming a more sustainable bank. The successful merger with comdirect has enabled us to take an important step towards becoming more profitable and at the same time even better for our customers,” commented Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “By combining comdirect and Commerzbank under one roof, we are bundling the strengths of the two banks and providing our customers with an outstanding digital offering, coupled with personal advisory capability and a presence at local level”.

Group revenues amounted to €2,033 million (Q3 2019: €2,182 million) in the third quarter. In addition to exceptional items and valuation effects, the year-on-year decrease was due to a further addition of €71 million to the legal provisions for foreign currency loans at mBank. This was counteracted positively by the growth of more than 6% in net commission income, primarily thanks to a strong securities business. Once again, CommerzVentures, the Banks’s venture capital fund, made a positive contribution, this time of €43 million.

Although the Bank continued to invest in IT and the digitalisation of its business model, operating expenses came down year-on-year to €1,521 million (Q3 2019: €1,559 million). This was driven by strict cost management, less business travel and the ongoing headcount reduction. However, the lower operating costs contrasted with the almost 20% increase in compulsory contributions, which amounted to €72 million.

The risk result of minus €272 million (Q3 2019: minus €114 million) was again driven by the coronavirus crisis. The coronavirus effects amounted to €181 million, of which €70 million were booked as a top-level adjustment for expected future credit losses. Overall, the quality of the loan book remained high with the ratio of non-performing exposures continuing to be low at 0.9%.

The operating profit fell to €168 million (Q3 2019: €449 million) as a result of exceptional items and the risk result. The pre-provision result was €440 million (Q3 2019: €563 million). The pre-tax profit amounted to minus €43 million (Q3 2019: €441 million). This reflects the restructuring charge amounting to €201 million booked in the third quarter. The net result attributable to Commerzbank shareholders and investors in additional equity components was minus €69 million (Q3 2019: €297 million).

The Common Equity Tier 1 ratio (CET 1 ratio) rose slightly to 13.5% (end of June 2020: 13.4%). The Bank benefited from lower risk-weighted assets. As a result of the successful issuance of a further AT1 bond in September, the Bank was able to reduce the regulatory requirements for Common Equity Tier 1 (“MDA threshold”) to currently around 9.8%, the buffer at the end of the third quarter was around 370 basis points. Over the medium term, the Bank intends to maintain a distance of at least around 200 basis points through the cycle.

“We have a strong capital position and a healthy risk profile. This represents a good basis for future impacts arising from the coronavirus crisis and for the further realignment of the Bank,” said Bettina Orlopp, Chief Financial Officer of Commerzbank. “We are continuing to work strategically on costs. We have paved the way for further cost savings through the agreed branch closures and the new programmes for headcount reduction”.

Development of the segments

The Private and Small-Business Customers (PSBC) segment continued to grow in terms of customers and assets in the third quarter of this year. The increased usage of digital channels supported the segment’s acquisition of around 82,000 net new customers. The Bank has already gained around 327,000 net new customers since the beginning of the year. From the end of June to the end of September, the loan volume rose by around €2 billion to €110 billion. The main contributor to this increase was mortgage lending. The lending volume rose to €84 billion on the back of a strong new business, a year-on-year increase of 7%. The volume of consumer loans reflected the general consumer caution in the context of the coronavirus crisis and amounted to €3.9 billion. During the third quarter, the securities volume grew by over €7 billion, with net inflows contributing €2 billion. Contributions to securities savings plans increased by more than 50% in the first nine months of this year compared to the previous year. This included many customers investing in securities for the first time. In the first nine month of 2020, the number of digital securities transactions almost doubled compared to the year before. The new brokerage function in the Commerzbank mobile app, started in July, has also contributed to the success of the securities business.

In the ongoing challenging negative interest rate environment, the underlying revenues for the segment amounted to €1,164 million (Q3 2019: €1,234 million) in the third quarter. Weaker net interest income contrasted with the increased net commission income as a result of a significantly higher level of customer activities. Lower revenues from modelled deposits in Germany and cuts of the Polish interest rate were factors contributing to the lower net interest income. Excluding the further addition of €71 million to legal risk provision for foreign currency loans at mBank, the segment’s underlying revenues remained stable. Operating costs at €872 million were slightly up year-on-year (Q3 2019: €867 million). At the end of the third quarter, the risk result of minus €130 million was significantly higher year-on-year as a result of the coronavirus pandemic (Q3 2019: minus €87 million). Overall, the operating result for the segment decreased to €83 million (Q3 2019: €313 million). The segment achieved an underlying pre-provision result of €224 million (Q3 2019: €316 million).

The Corporate Clients segment generated underlying revenues of €806 million (Q3 2019: €831 million) thanks to an overall stable customer business. The International Corporates division shows stable revenues from loan business and benefited from a positive capital markets business with, among other things, a higher contribution from debt capital market issuances. The reduced revenues year-on-year in the Mittelstand and Institutionals divisions reflect the impact of the coronavirus pandemic on the economy. Around the end of the quarter, international trade started to gather pace again, and the Bank saw first indications of recovery in the trade finance business which will normally be reflected in the revenues with some delay. Revenues in the business with the German Mittelstand increased compared with the previous quarter. One of the factors driving this was higher demand for currency hedges from customers. Loan volumes in business with Mittelstand and International Corporates fell by around €6 billion to €89 billion compared to the previous quarter. This reflects the reduced level of loan drawings after the peak in March as well as selective new business with a focus on existing customers and RWA efficiency.

Overall, the Corporate Clients segment generated an operating profit of €74 million. The reduction in costs to €590 million (Q3 2019: €602 million) had a positive impact. The risk result of the segment was minus €120 million (Q3 2019: minus €30 million) owing to the impact of the coronavirus crisis. However, the operating profit excluding the risk result and adjusted for exceptional items was almost stable with €212 million (Q3 2019: €221 million).

In the Others and Consolidation segment Commerzbank reported an operating profit of €12 million (Q3 2019: minus €12 million) in the third quarter. The positive impact of CommerzVentures more than offset negative valuation effects from inter alia exchange rate fluctuations.

Outlook

Commerzbank expects largely stable customer revenues for the Private and Small-Business Customers segment in 2020. For Corporate Clients, the Bank expects a stronger impact from the coronavirus. The Bank continues its cost management and targets a cost base including IT investments slightly below the level of 2019. At the moment, the Bank continues to expect a risk result between minus €1.3 billion and minus €1.5 billion for 2020, however subject to the further development of the coronavirus pandemic. In light of the expected risk result and booked restructuring charge, the Bank anticipates a negative net result for the year. The Bank now expects at least 13% for the Common Equity Tier 1 ratio at the end of the year.

***

Press contact

Maurice Farrouh +49 69 136-21947

Erik Nebel +49 69 136-44986

Sascha Ullrich +49 69 136-82349

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiary mBank in Poland is an innovative digital bank. The integration of comdirect enables Commerzbank to combine the services of one of Germany’s most advanced online banks with a personal advisory offering at local level. The Bank serves around 11.6 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

***

Disclaimer

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The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has provided a mezzanine tranche guarantee of around €125 million to Commerzbank AG on an existing portfolio of loans to small and medium-sized companies (SMEs and mid-caps). The guarantee will release regulatory capital for Commerzbank and will enable it to provide new lending of up to €500 million to SMEs and mid-caps in Germany under favourable terms. This is expected to mitigate the impact of the COVID-19 crisis on smaller businesses, self-employed individuals and mid-caps, which are currently experiencing shortages in liquidity.

The transaction benefits from the support of the European Fund for Strategic Investments (EFSI). EFSI is the central pillar of the Investment Plan for Europe, in which EIB Group and the European Commission are strategic partners to strengthen the competitiveness of the European economy. Under the guarantee, the EIB takes on the mezzanine risk under a synthetic securitisation transaction with Commerzbank. The EIF will provide a guarantee to Commerzbank in relation to an existing portfolio of SME and mid-cap loans. A counter-guarantee from the EIB will fully mirror the EIF’s obligations under this guarantee.

“Due to COVID-19, many companies are experiencing a slump in demand for their goods and services, a lot of them are even struggling to stay in business,” said EIB Vice-President Ambroise Fayolle, in charge of operations in Germany and EFSI. “All around Europe we are seeing strong demand for loans and short-term financing. Transactions like this one with Commerzbank are crucial to making this financing available. They help companies to weather the crisis and secure tens of thousands of jobs. I am glad that we can rely on a longstanding and trusted partner to provide the financial means so badly needed by businesses in Germany in these challenging times”.

EIF Chief Executive Alain Godard added: “The EIF is pleased to be working with Commerzbank and the EIB to provide additional access to finance for SMEs and mid-caps. The combination of the EIF’s investment and structuring expertise and the EIB’s efficient deployment of EFSI funds offers a competitive financing solution for Commerzbank that will serve to boost the supply of finance in the real economy. In these trying times, it is important that we work together with trusted partners to generate much-needed support for European businesses”.

Neil Aiken, Head of Lending at Commerzbank, said: “As the leading bank for SME and mid-cap lending in Germany, Commerzbank has continued to provide liquidity to support its clients throughout the COVID-19-pandemic. This transaction allows us to manage our existing capital and to provide an additional €500 million of new lending to our SME and mid-cap clients. We have been proudly co-operating with the EIF and EIB for a number of years and look forward to continuing to do so in the future”.

European Commission Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, said: “This financing under the Investment Plan for Europe will allow Commerzbank to provide new lending of up to €500 million to SMEs in Germany affected by the coronavirus pandemic. SMEs will play a vital role in our economies and societies and they need extra support at this challenging time. More broadly, we will continue to pay special attention to SMEs to ensure they can continue to thrive”.

*** Press contact Commerzbank Christoph Ott +49 69 136 24431

Press contact EIB Antonie Kerwien, a.kerwien@eib.org, tel.: +352 4379 82175, mobile: +352 691 285 497 Website: www.eib.org/press - Press Office: +352 4379 21000 – press@eib.org

Press contact European Commission Flora Matthaes, Tel.: +32 2 298 39 51, Mobil: +32 460 755 148; E-Mail: flora.matthaes@ec.europa.eu

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves around 11.5 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

About the European Investment Bank The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. Since 2000, the European Investment Fund (EIF), a specialist provider of risk finance to benefit small and medium-sized companies, is part of the EIB Group.

About the Investment Plan for Europe The Investment Plan for Europe is one of the EU’s key actions to boost investment in Europe, thereby creating jobs and fostering growth. To this end, smarter use is made of new and existing financial resources. The EIB Group is playing a vital role in this initiative. With guarantees from the European Fund for Strategic Investments, the EIB and the EIF are able to take on a higher share of project risk, encouraging private investors to participate in the projects. In July, the EIB Group exceeded its target to trigger €500 billion of additional investment by the end of 2020. To date, the projects and agreements approved under EFSI are expected to mobilise around €535 billion of investments and benefit around 1.4 million small and medium-sized companies throughout the EU.

*** 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.

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At its meeting today, the Supervisory Board of Commerzbank unanimously appointed Manfred Knof (55) as successor to Martin Zielke as Chairman of the Commerzbank Board of Managing Directors.

This decision is subject to the approval of supervisory authorities.

Hans-Jörg Vetter, Chairman of the Supervisory Board of Commerzbank, said: "I am pleased that we have been able to win Manfred Knof for the role of Commerzbank's CEO. Manfred Knof is an experienced and highly effective top manager who has proven himself in a wide range of tasks in the financial services industry. He brings the necessary expertise and human leadership skills for the tasks that lie ahead of the Bank”.

Manfred Knof said: "I have a great deal of respect for this new assignment. Commerzbank, with its Mittelstandsbank, has a high relevance for the German economy. Its Private Clients Business has shown a very innovative approach. And Commerzbank has a unique culture that I am very much looking forward to”.

Vetter thanked Martin Zielke, who will remain Commerzbank’s CEO until 31 December 2020, for his performance at the helm of the Bank: "As a CEO, Martin Zielke successfully focused Commerzbank's business model and pushed ahead with the digitalisation of the Bank. In doing so, he has set important strategic impulses, which will be decisive for Commerzbank's future success.

Martin Zielke has shown great engagement for Commerzbank in the last 18 years and has also supported me personally. For this, I express personally and also on behalf of the Supervisory Board my sincere thanks and respect to him”.

From 1 August 2019 to its merger into Deutsche Bank AG in Mai this year, Manfred Knof was Chairman of the Board of DB Privat- und Firmenkundenbank AG and now continues to be Head of Deutsche Bank's Private Bank Germany.

Until 2017, he was Chief Executive Officer of Allianz Deutschland AG and comprehensively digitalised the business of the insurer, was responsible for the growth initiatives in all distribution channels and steered Allianz’ Turn-Around program. In 1995, he joined the Allianz Group and held various management positions in Germany and abroad, including Regional CEO of Central and Eastern Europe. Between 2003 and 2005, he held various positions at Dresdner Bank, most recently as Head of the private banking business in Southern Germany, with responsibility for more than 1000 branches. He began his career in 1991 at the management consultancy Kienbaum Management Consultants in Düsseldorf.

Knof studied law at the University of Cologne and attained its doctorate in 1994. He also holds a Master of Business Administration from New York University. Manfred Knof is married and has two sons.

*** Press contact Richard Lips +49 69 136 22461 or +49 162 280 4902 Margarita Thiel +49 69 136 46646 or +49 172 706 5233

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves around 11.5 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Commerzbank has been official supporter of the Task Force on Climate-related Financial Disclosures (TCFD) since the beginning of September 2020. “We make the risks and opportunities of climate change transparent in our credit portfolio. This is an important step towards becoming a more sustainable bank,” said Rüdiger Rass, Head of Credit Risk Management. The TCFD recommendations are the basis for consistent and comparable reporting on the effects of climate change. Commerzbank plans to publish its first TCFD report in 2022 for the fiscal year 2021.

The TCFD recommendations provide a risk management framework on the impact of climate change and for the reporting of companies. The standard was set up by the Financial Stability Council of the G20 countries and central banks. Around 1,030 companies globally have already committed themselves to the recommendations of the TCFD.

Also, in September 2020, Commerzbank joined the Science Based Targets initiative (SBTi), which has committed itself to reducing greenhouse gases based on scientifically calculated targets. This will enable companies to align their climate policies with the objectives of the Paris Climate Agreement and to effectively counteract climate change.

“Climate change is increasingly becoming a risk driver. Physical risks, such as the effects of natural disasters, and transitory risks from the change processes to a more sustainable economy, are becoming more important factors in the risk management of banks and other companies,” Rass emphasised. “In the future, we want to transform our credit portfolio towards a more sustainable approach and provide our stakeholders with decision-making information based on transparent and comparable benchmarks. Therefore, we see ourselves as a strong partner for our clients, particularly small and medium-sized businesses. We support the financing of the transformation into a low-carbon economy of tomorrow”. As a concrete first step, the Bank has identified the CO2-intensive sectors of its overall portfolio, such as parts of the energy and automotive portfolios, and is currently determining the level of CO2 emissions associated with these subportfolios.

Sustainability is an integral part of Commerzbank’s core business. In the current year alone, the Bank has accompanied 20 green and social bond issues with a total volume of more than €20 billion for its clients and is a leading provider in Germany and Europe with a volume of around €4.6 billion EaD for financing projects in the renewable energies sector. Since 2019, Commerzbank has provided green construction financing for its private clients, which actively contributes to the promotion of energy-efficient construction, modernisation, and acquisitions. In June 2020, Commerzbank also signed a climate commitment with 15 other members in the German financial sector.

*** Press Contact Dennis Bartel +49 69 136-26528 Sina Weiß +49 69 136-27977

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves around 11.5 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

*** Disclaimer This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for securities. 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.

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Michael Mandel, Member of the Board of Managing Directors for the Private and Small Business Customers (PSBC) segment, has offered a mutually agreed termination of his contract to the Supervisory Board. At its meeting today, the Supervisory Board of Commerzbank decided to accept his offer. The appointment of Michael Mandel as a member of the Executive Board will end by mutual agreement on September 30, 2020.

Martin Zielke, CEO at Commerzbank, said: "I would like to thank Michael for a close and trusted cooperation. I know Michael as a colleague who has always fought for the Bank with passion and a great deal of personal commitment. I wish him all the best for his private and professional future. Sabine, through her many years of experience in the Private and Small Business Customers segment, brings with her a wealth of experience to take the segment forward in its further development”.

"Michael has shaped Commerzbank's private customer business. He has had a significant impact on the successful development of the segment in the past few years and deserves gratitude and respect for it." said Hans-Jörg Vetter, Chairman of the Supervisory Board of Commerzbank.

Michael Mandel began his career at Dresdner Bank in 1996. After a position at McKinsey, in 2002 Mr Mandel moved to Commerzbank, initially as Divisional Head for Business Development. From 2005 onwards he held the position of Divisional Board Member for Private and Business Customers. In 2008, Mr Mandel took over as CEO of Comdirect Bank AG in Quickborn. Following his return to Frankfurt as Divisional Board Member for Private Clients in 2010, Mr Mandel made a significant contribution to the successful realignment of the Private Customer Segment. In May 2016, he became a Member of Commerzbank’s Board of Managing Directors responsible for the Private and Small Business Customers (PSBC) segment. This role included the responsibility for the branch network, Comdirect Bank AG, Commerz Real and mBank.

From 1 October Sabine Schmittroth will assume the responsibility for the Private and Small Business Customers (PSBC) segment in the Board of Managing Directors in addition to her role as Board Member responsible for Human Resources.

Marcus Chromik, Chief Risk Officer, will assume the responsibility for Compliance.

*** Press contact: Margarita Thiel +49 69 136-46646 Gunnar Meyer +49 69 136-27298

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 coun¬tries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

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Commerzbank AG has today very successfully issued another Green Bond with an issuance volume of €500 million. It is the Bank’s second own Green Bond after the first issuance in October 2018. The Bank will use the proceeds to refinance renewable energy projects.

“Sustainability is very important for Commerzbank. In recent years, we have significantly expanded our financing for renewable energy projects. This means that we were now able to issue the second Commerzbank Green Bond providing our investors with an opportunity to participate in the sustainable transformation of the economy,” said Inga Johal, Divisional Board Member Group Treasury at Commerzbank. "We are also responding to the continuing increase in demand for sustainable asset classes. For us as an issuer, it is particularly important to widen the Bank’s investor base by issuing green bonds. The great success of our issuance shows that Green Bonds are no longer a niche topic”.

The non-preferred senior Bond attracted extraordinary keen investor interest. With a volume of more than €4 billion, the final order book at re-offer was 8 times subscribed. The Bond has a term of 5.5 years with a call date in March 2025 and an annual coupon of 0.75 %. Joint lead managers for the transaction were Commerzbank, Danske Bank, ING, Natixis und Santander.

Commerzbank obtained its second party opinion from the renowned sustainability rating agency Sustainanalytics. It confirms that the Bond complies with the latest Green Bond Principles This market standard provides investors with a high degree of transparency with regards to how the funds are actually used. Commerzbank has earmarked the proceeds from the Bond for loans for onshore and offshore wind projects and solar projects in Germany, other European countries, and North America. The projects financed by the Green Bond aim to help avoid CO2 emissions of around 850.000 tons per year.

Commerzbank is an established player in the market for sustainable and green bonds. For years, the Bank has supported its clients to prepare sustainable bonds and place them in the international capital market. "We have strong expertise in this relatively young market. In the current year, we have already lead-managed 20 green and social bond issues with an aggregate volume of more than 20 billion euros," said Marie-Claire Ouziel, Global Head of Bonds.

The Bank has been a signatory of the Green Bond Principles since 2014. Commerzbank has also been a partner of the Climate Bonds Initiative since January 2020. The non-profit international initiative aims to contribute to a CO2-efficient and climate-resistant economy with the global bond market.

*** Press contact Erik Nebel +49 69 136-44986 Christoph Ott +49 69 136-24431 Sina Weiß +49 69 136-27977

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11.5 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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In this year's Institutional Investor (formerly Extel) survey of equity professionals in Europe and the United States, Commerzbank has confirmed its top position in German equity research, sales and corporate access. This seamlessly follows on from the Bank’s Top 1 and 2 rankings in the Extel category ‘Germany - Leading Brokerage Firm’ of the past 10 years.

With regard to research sectors with a German-related focus, Commerzbank leads in ‘Financials’, ‘Industrials’ and ‘Information Technology’, and comes second in ‘Consumer Discretionary’,' ‘Materials’ and ‘Small & Mid Cap Stocks’. Commerzbank is also ranked first and second, respectively, in the European categories, ‘Equity Technical Analysis & Charting’ and ‘Index Analysis’.

In ‘Corporate Access: Overall Germany’ the Bank earned top marks for ‘Conferences’, ‘Roadshows’, ‘Field Trips’, ‘Logistics’ and ‘Team Quality’ related to Germany.

‘We have always maintained our quality promise of a first-class research offering and are very grateful that customers value this,’ said Christoph Dolleschal, Head of Equity Research & Strategy and Deputy Head of Research at Commerzbank. ‘In this challenging time, too, the scope and quality of our product range has not suffered. It pays to note that a year ago we completely digitalised the research production, so there were no restrictions on home office activities’.

In the survey of more than 1,200 financial institutions for the European equity market, Commerzbank analysts achieved outstanding results in several individual rankings: The two best analysts in the ‘Overall Germany Research’ category are members of the Commerzbank Research team: Andreas Huerkamp (first place) and Achim Matzke, Head of Technical Analysis & Index Research (second place). In addition, Commerzbank analysts captured a further twenty ‘Top 10’ positions in various categories with a German-related focus, twelve of which were in the Top 3.

*** Press Contact Bernd Reh +49 69 136-46971 bernd.reh@commerzbank.com

*** About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves around 11.5 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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In the second quarter of 2020 Commerzbank generated an operating profit of €205 million in spite of significantly higher negative impact from the risk result. Overall, client business was stable. The Corporate Clients segment slightly increased revenues thanks to good capital market business. In the Private and Small-Business Customer segment, the Bank reported further growth in customers and in loan and securities volume primarily on the back of its digital offerings. Overall, the Bank increased revenues by almost 7% year-on-year. This reflects a significant increase in net commission income and reversals of valuation effects. The latter had a significant negative effect on the previous quarter. In Q2 valuation effects partly recovered in line with expectations. The Bank brought down operating costs by 3.3%. This contrasted with a significantly higher risk result of minus €469 million. It included additional effects of minus €131 million resulting from the coronavirus and an impact of €175 million from a single case. Although the Bank did not make use of the new regulatory transitional rules, the Common Equity Tier 1 ratio increased from 13.2% in the previous quarter to 13.4% and is clearly above all requirements.

“In the second quarter, we achieved a positive result in spite of the coronavirus and we were able support our customers in overcoming the consequences of the pandemic. That is the top priority in times like this,” said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “We have benefited from the fact that in recent years we have positioned the Bank to be much more robust and more digital”.

Since the beginning of the coronavirus crisis, Commerzbank has received around 21,000 loan applications with a volume of €20 billion and the Bank has approved KfW-loans in the amount of around €7 billion. This puts the Bank’s market share for KfW loans up to €100 million at around 15 %. Furthermore, the Bank granted payment holidays for more than 33,000 loans with a volume in excess of €3.4 billion. The digital offerings of the Bank gained additional momentum. As a consequence, the number of active users of the online banking portal and the banking app achieved a new record with 2.7 million in June. The banking app of Commerzbank alone had almost 1.6 million active participants in June. Approximately every two weeks, the offering was expanded by new functions, such as the possibility to order securities on the app or to use Apple Pay without a credit card. The virtual debit card necessary for this has already been ordered more than 100,000 times following its introduction in the middle of June.

Group revenues increased by 6.8% to €2,273 million (Q2 2019: €2,129 million) in the second quarter. They benefited from robust growth of 7% in net commission income, primarily thanks to strong securities business. The first reversals of negative valuation effects from the first quarter made a positive contribution to the increase in revenues. The venture capital fund of Commerzbank, Commerz Ventures, made a positive contribution of around €50 million. Excluding exceptional items, revenues grew by €184 million to €2,278 million (Q2 2019: €2,095 million).

Operating costs continued their downward trajectory by €53 million to €1,526 million (Q2 2019: €1,579 million) in spite of IT investments, as a result of sustained cost management in the second quarter. The ongoing programme of headcount reductions also contributed to this. At the end of June 2020, the number of full-time positions in the Group was around 39,700, which is around 1,000 FTEs less year-on-year. The reduced operating costs contrasted with compulsory contributions amounting to €73 million, which went up once again with an increase of €10 million year-on-year (Q2 2019: €63 million).

The risk result increased significantly in the second quarter to minus €469 million (Q2 2019: minus €178 million). Of this, minus €175 million are due to a large single case. The effects of the coronavirus also had a negative impact on the risk result totalling €131 million. This includes a provisional recognition of €84 million for potential corona-related effects. The quality of the loan book remained high thanks to the massive reduction of risk over past years with a ratio of non-performing loans continuing to be low at 0.8%.

Overall, the Bank generated an operating profit of €205 million (Q2 2019: 309 million) in the second quarter. The pre-tax profit amounted to €211 million (Q2 2019: €329 million). The Bank therefore generated a net result attributable to shareholders of €220 million (Q2 2019: €279 million). This also reflects a low tax ratio because, among other things, the valuation gain of Commerz Ventures does not trigger a tax expense.

The Common Equity Tier 1 ratio (CET 1 ratio) improved to 13.4% at the end of June (end of March 2020: 13.2%; end of June 2019: 12.9%), while the Bank did not use the new regulatory transitional rules. The increase in Risk weighted Assets was overcompensated by capital build as a result of the net profit in Q2, lower regulatory deductions, and positive effects from the revaluation reserve. As at 30 June 2020, the Bank was more than 300 basis points above the regulatory requirement for Common Equity Tier 1 (“MDA threshold”), which could be reduced from 10.8% to 10.1% by the successful issuance of AT 1 and Tier 2 capital instruments in the second quarter. The leverage ratio was 4.7% (June 2019: 4.5%) and hence also clearly above the requirements.

“We increased our revenues and our CET 1 ratio in the second quarter, but the operating profit was negatively impacted by the risk result,” commented Bettina Orlopp, Chief Financial Officer of Commerzbank. “It is all the more important that we reduce our costs in order to be able to cushion future burdens. We are working on this and have stepped up the cost target for this year”.

Development of the segments

The Private and Small-Business Customers (PSBC) segment continued its growth in the second quarter and gained 103,000 net new customers in Germany primarily through digital channels. The segment now totals around 11.5 million customers. At the end of June, the loan and securities volume rose to €262 billion (end of March: €239 billion). The volume of mortgage lending grew by 7% to €84 billion on the back of strong new business. The volume of consumer loans remained stable at €3.8 billion (end of March 2020: €3.8 billion) as a consequence of the brake on consumer spending imposed by the coronavirus. The higher securities volume reflects the recovery in the equity markets and net inflows of €4.2 billion. Comdirect contributed strongly. The legal merger of Comdirect with Commerzbank is currently in its final phase and is likely to be completed at the beginning of the fourth quarter.

Total revenues for the segment fell back slightly to €1,194 million (Q2 2019: €1,222 million). This includes an increase in the legal provision for foreign currency loans at mBank by €42 million. While net commission income rose by 9% thanks to the high level of securities activities and the recovery in the stock markets, net interest income came down. Aside from reduced consumption in the corona crisis, this is also due to lower contributions from deposits. In addition, mBank was affected by a reduction of interest rates in Poland. The negative impact arising from the risk result of the segment amounted to €153 million (Q2 2019: minus 48 million) in the second quarter of this year, with €77 million of this being attributable to mBank. The operating costs were reduced to €864 million (Q2 2019: €873 million). Overall, the operating profit for the segment decreased to €112 million (Q2 2019: €248 million).

The Corporate Clients segment slightly increased revenues to €791 million in the second quarter (Q2 2019: €776 million). The driver for this development was the International Corporates division, which benefited from strong capital market business for debt products. In particular, the Bank’s bonds business achieved its strongest quarter in the last five years. Primarily at the beginning of the quarter, there was also a high demand for loans from international large corporates which had a positive effect. On a quarterly average, the loan volume in Mittelstand and International Corporates was €95 billion (Q1 2020: €89 billion). This enabled the segment to more than compensate for the effects of the lower level of economic activities and reduced international trade resulting from the coronavirus pandemic in the segment’s Mittelstand and Institutionals divisions.

The risk result of the Corporate Clients segment was minus €289 million (Q2 2019: minus €127 million) mainly owing to the mentioned single case. The segment reduced operating costs by almost 6% to €583 million (Q2 2019: €619 million). The total operating result of the segment was therefore minus €89 million (Q2 2019: €21 million). Before risk provision, earnings amounted to €201 million and were therefore €53 million higher year-on-year.

In the Others and Consolidation segment, Commerzbank reported an operating profit of €181 million (Q2 2019: €2 million) in the second quarter of the current year. The main reason here is the partial reversal of negative Q1 effects from long-term hedging transactions. Furthermore, the Bank reported the valuation gain of Commerz Ventures here.

Outlook

On the assumptions that there will be no second lockdown, economic activities gradually recover, and the government support programmes prove to be effective, the Bank expects largely stable customer revenues for the Private and Small-Business Customers segment over the course of this year. For Corporate Clients, the Bank expects a stronger impact from the coronavirus. The Bank continues its cost management and is now targeting a cost base including IT investments slightly below the level of 2019. The risk result for the year 2020 is expected between €1.3 billion and €1.5 billion. In light of the expected risk result and potential restructuring charges, the Bank anticipates a negative net result for the year. The target for the Common Equity Tier 1 ratio continues to be at least 12.5% in line with reduced regulatory requirements.

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Financial figures at a glance

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Press contact

Margarita Thiel +49 69 136-46646

Maurice Farrouh +49 69 136-21947

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves around 11.5 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

***

Disclaimer

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The two buildings called "Sophie" and "Karl", with a total of around 30.000 m² of rental space, are part of the Lenbach Gardens in Munich. The Lenbach Gardens located in the heart of the Bavarian state capital combine living and working in one neighbourhood. The high-quality and architecturally harmonious design of this neighbourhood in a prominent location near Stachus places the Lenbach Gardens as a real landmark property in the Munich center.

BayernLB and Commerzbank successfully completed the financing in cooperation with investors, Hines Immobilien and the legal advisors.

Siegfried Eschen, Head of the Center of Competence for Commercial Real Estate Finance at Commerzbank commented on the transaction: "We are pleased to provide this financing, in close cooperation with BayernLB, to our long-standing client Hines for such an exciting property in a prominent location in Munich. We look forward to continuing this trusted cooperation.

Bernd Mayer, Head of Real Estate Finance at BayernLB: “We are proud to successfully contribute to the financing of this trophy asset in the middle of Munich. The partnership-based and trusted cooperation and the detailed know-how of all project participants was the essential prerequisite this demanding transaction. The investors have acquired two high-quality buildings in a prime location with sustainable returns”.

Christian Meister, Managing Director Hines Immobilien GmbH: "The ensemble Lenbach Gärten is one of the best office properties on the Munich market and we are pleased to have been able to advise the owners on the acquisition and financing of this premium property. Sincere thanks go to the two syndication partners, Commerzbank and BayernLB, for a very quick and constructive financing".

*** Press contact Monika Arens +49 69 136 29673

BayernLB: Matthias Lücke +49 89 2171 21302

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

About BayernLB BayernLB is a leading commercial bank in Germany and has established itself as a streamlined bank for promising sectors of the German economy. The BayernLB Group is one of the country’s top property financiers and asset managers. Through its Real Estate division, a core business area, the Bank finances property in all asset classes – offices, retail space, residential property, logistics centres and managed real estate. BayernLB’s customer base is broad, ranging from project developers to private investors and housing companies, through to institutional fund sponsors and asset management companies. BayernLB’s banking products include everything from short-term project finance to long-term commercial financing – incorporating government subsidy schemes and in conjunction with syndicate banks and savings banks. BayernLB is there for its real estate customers, both in Germany, elsewhere in Europe und USA.

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*** Press contact Richard Lips +496913622461 or +49 (0)1622804902 Margarita Thiel +496913646646 or +49 (0)1727065233

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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The Presiding and Nomination Committee of the Supervisory Board of Commerzbank has discussed in its meeting today the offer of Martin Zielke to resign early as a Board Member of Commerzbank AG on the basis of a mutual termination of his Board Membership. It also discussed if, in the view of the Supervisory Board, such resignation is in the interest of Commerzbank. The Presiding and Nomination Committee has decided to recommend to the Supervisory Board of Commerzbank to mutually terminate the appointment of Martin Zielke as Board Member and Chairman of the Board of Managing Directors of Commerzbank at a point in time to be agreed between Martin Zielke and the Supervisory Board but the latest by 31 December 2020. The Supervisory Board will decide on this in its meeting on 8th July 2020.

Martin Zielke: "Under my leadership we set the course for a digital future for Commerzbank in 2016. With the take-over of Comdirect, we have laid the ground for developing an innovative and robust business model for the Bank. Even if we made strategic progress, the financial performance of the Bank has been and is unsatisfactory. And as CEO I bear the responsibility for that. As I want to assume this responsibility, I offered the mutual termination of my Board Membership to the Supervisory Board Committee at its meeting today. I would like to open the way for a fresh start. The bank needs a profound transformation and a new CEO, who gets the necessary time from the markets to implement a strategy”.

Stefan Schmittmann has resigned from office at today’s Presiding and Nomination Committee meeting with effect from the 3rd of August 2020.

Stefan Schmittmann: "As Chairman of the Supervisory Board, I fully supported all the strategic decisions of the Executive Board. Commerzbank's 5.0 strategy has not found sufficient acceptance in the markets. This is reflected in the share price. Therefore I have come to the conclusion that I am responsible too and should take my share of responsibility. This is why I am going to resign. There are profound changes ahead for the Board of Managing Directors, the Bank and its employees. This will take a lot of strength and effort, and should be free from repeated discussions over my role”.

*** Press contact Richard Lips +496913622461 oder +49 (0)1622804902 Margarita Thiel +496913646646 oder +49 (0)1727065233

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Commerzbank AG has successfully issued the first AT1 bond under its new issuance programme for additional tier 1 capital (AT1). The bond has a volume of €1.25 billion and a fixed coupon of 6.125% per annum. With a volume of €9.5 billion, the order book was several times oversubscribed, which reflects the extensive interest of investors. The bond will be listed on the Luxembourg Stock Exchange.

With the issuance, Commerzbank further strengthens and optimises its capital structure. The new bond also enables Commerzbank to make use of the recent regulatory changes, whereby AT1 can now be used to a greater extent to meet the capital requirements (SREP). At the end of May 2020, Commerzbank had launched an issuance programme for AT1 capital which enables it to gradually issue subordinated bonds with a total nominal value of up to €3 billion over the next years. Overall, this issuance and the most recent Tier 2 issuance of €750 million will reduce Commerzbank's Common Equity Tier 1 (CET1) requirement (MDA threshold) to 10.07% pro forma at the end of March 2020.

"Die erste Transaktion im Rahmen unseres neuen Emissionsprogramms ist auf große Resonanz gestoßen. Dadurch konnten wir die Anleihe zu sehr guten Konditionen emittieren. Mit der weiter verbesserten Kapitalstruktur vergrößern wir unseren Handlungsspielraum", sagte Bettina Orlopp, Finanzvorständin der Commerzbank.

The new bond has a perpetual maturity and a first call date from October 2025 to April 2026. The bond terms include a temporary write-down in the event that the Bank’s Common Equity Tier 1 ratio (CET 1 ratio) drops below 5.125%. The subscription right of the shareholders was excluded. Joint lead managers for the transaction were Barclays, BNP Paribas, Commerzbank, Deutsche Bank and UBS.

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Press contact

Erik Nebel +49 69 136-44986

Maurice Farrouh +49 69 136-21947

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Disclaimer

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities in the United States of America, Canada, Japan, Australia, or in any jurisdiction in which such offer or solicitation is unlawful. This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for securities. 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.

İşbank and Commerzbank have jointly run an international trade finance transaction based on distributed ledger technology (DLT). Payments were secured by digitally processing the related data transfer via Corda blockchain technology on the Marco Polo trade finance network.

İşbank is the first bank in Turkey to perform a trade finance transaction using blockchain technology. The transaction took place on 27 May 2020 between İşbank, Şişecam, Kuraray Europe GmbH, and Commerzbank AG and supported the trade of laminated glass interlayers from Germany to Turkey.

“Increasing security, speed, and operational efficiency in international trade, this technology is a paradigm change for foreign trade supply chains”, İşbank’s Deputy Chief Executive Şahismail Şimşek is convinced: “As İşbank, we offer innovative solutions to our customers’ financing needs with our firsts in technology. Now, with this pilot transaction using blockchain technology, we are starting a reliable and easier period based on matching data in foreign trade. We aim to offer new experiences to our customers by taking part in new technological developments in the world and developing foreign trade products over blockchain technology”.

Marco Polo is a collaboration network focussed on securing payments and financing of trade transactions. Its DLT allows foreign trade transactions to be financed securely and in a very efficient manner. Transactions are safe and transparent and can be processed in a trusted environment.

Thanks to R3’s Corda technology underpinning Marco Polo, the trade transaction data was only distributed to the parties along the workflow of the trade, making the settlement processes much quicker and more efficient. It is also possible to integrate third parties into the data flows where required by banks and trade partners. All parties involved were able to communicate and view trading data simultaneously.

“After having processed various Marco Polo Payment Commitment pilot transactions last year, we are now very happy to have piloted with İşbank an advanced pre-live version of the platform. We ensured the technical performance and validated the workflow with our corporates to pave the way to production,” underlines Enno-Burghard Weitzel, Head of Trade Product Management at Commerzbank.

“We were very excited and honored to take part in the Marco Polo project, as the technology of Marco Polo offers three big advantages. Firstly, it supports a trustful relationship between business partners and helps to offer unique services for our customers. Secondly, the platform supports our efforts to further digitalise business processes. Thirdly, Marco Polo Blockchain solution perfectly fits to one key part of Kuraray’s mission to use pioneering technologies”, remarks Juliane Löbig, Director Finance & Accounting, Kuraray Europe GmbH.

Şişecam’s Chief Financial Officer, Görkem Elverici, adds: “Şişecam Group is one of the most established businesses in Turkey and is a global player in all key areas of the glass industry, as well as soda and chromium chemicals. With a global footprint in over 150 markets, it conducts a significant volume of international trades on a weekly basis. Şişecam is excited to announce that it has undertaken the first blockchain transaction in Turkey through the use of the Marco Polo’s blockchain-based payment platform, and the Group continues to innovate and use all the digitally available solutions to provide the best service and experience to its overall ecosystem including its customers and suppliers”.

***

Press contact

Commerzbank: Barbara Stein +49 69 136 46273

İşbank: Gül Mutlay +532 2518330

Kuraray Europe: Johanna Krauthauf +49 69 305 85934

Şişecam: Elif Ergun +908502063818

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

About İşbank

İşbank was established in 1924 at the initiative of Mustafa Kemal Atatürk, founder of the Turkish Republic, as the first national bank of Turkey, with a founding mission defined as “contributing to the foundation and development of the country”. İşbank serves retail, SMEs, and large corporate customers and provides all kind of banking services with an extensive network and around 24,000 employees through a strategy of achieving sustainable and profitable growth based on being “the bank closest to customers”. The bank has the most extensive private distribution network in the country with 1,243 domestic branches and 6,530 ATMs. The share of non-branch channels in total transactions has increased significantly in recent years and reached over 94% by March 2020. The number of the bank’s digital (mobile and internet banking) customers, which is continuously increasing, exceeded 8.4 million. İşbank also operates abroad through its 22 foreign branches. As a highly trusted financial institution, İşbank also maintains its pioneering position in foreign trade through its extensive correspondent network of banks based in around 120 countries. Today, creating value for the Turkish economy for almost 100 years, İşbank moves confidently towards the future not only with its numbers and initiatives in technology but also with extensive and social responsibility initiatives and sustainability activities.

About Kuraray Europe GmbH

Kuraray Europe GmbH was founded in 1991. It is headquartered in Hattersheim near Frankfurt/Main and generated an annual turnover of €804 million in 2019. More than 700 employees work for Kuraray nationwide at the locations Hattersheim, Frankfurt, and Troisdorf. Kuraray is a global specialty chemicals company and is one of the largest suppliers of polymers and synthetic microfibers for many branches of industry, such as KURARAY POVAL™, Mowital®, Trosifol®, or CLEARFIL™. In addition, the company has a further 200 employees at six European sites, who also develop and apply innovative high-performance materials for numerous industries such as the automotive, paper, glass, and packaging industries as well as for architects and dentists.

About Şişecam Group

One of the most established enterprises in Turkey, Şişecam Group is a global actor in business fields including all main areas of glass industry, i.e. flat glass, glassware, glass packaging, and glass fiber, as well as soda and chromium chemicals. Today, Şişecam, the world’s leading supplier of chromium compounds and the 7th-largest synthetic soda ash producer in the world, is the 3rd-argest glassware and the 5th-largest glass packaging and flat glass manufacturer globally.

The Group, which has 43 production facilities in total, operates in Turkey, Germany, Italy, Bulgaria, Romania, Slovakia, Hungary, Bosnia-Herzegovina, the Russian Federation, Georgia, Ukraine, Egypt, India, and the USA. With its more than 80 years of experience, 22,000 employees, production in 14 countries, and sales in 150 countries, Şişecam is a group at international scale and continues on its journey to become one of top three global producers in its all-main business fields.

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The Board of Managing Directors of Commerzbank AG has decided to launch an issuance programme for additional tier 1 capital (AT1). This will enable the Bank to gradually issue subordinated bonds with a total nominal value of up to €3 billion. A decision on the first issuance under the programme will be taken at a later date.

“Over recent years, we have built up a strong CET 1 position. We are creating a framework with the AT1 issuance programme that can be used flexibly. This will enable us to further optimise our capital structure and also respond to the additional business opportunities that have arisen for us in the context of the coronavirus crisis and the changed regulatory requirements,” commented Bettina Orlopp, Chief Financial Officer of Commerzbank. “The programme will give us the opportunity to act rapidly in response to the capital requirement and the market environment”. The issuance programme also enables Commerzbank in future issuances to make use of the recent regulatory changes, whereby AT1 can now be used to a greater extent to meet the capital requirements (SREP).

The basis for the issuance programme is the resolution relating to the authorisation for the Board of Managing Directors passed by the Annual General Meeting in 2019 to issue once or more than once hybrid bonds up until 21 May 2024 which meet the requirements for regulatory recognition as additional core equity. It is planned to exclude the subscription right of the shareholders from the issuances of the programme. In July 2019, Commerzbank issued its first additional tier 1 bond with a volume of 1 billion US dollars. At the end of March 2020, the common equity tier 1 ratio (CET 1 ratio) stood at 13.2 percent and therefore exceeds all regulatory requirements.

*** Press contact Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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At today’s regular Annual General Meeting of Commerzbank AG which was held virtually, shareholders voted as follows on the key items on the agenda:

Resolution on the use of distributable profits (item 2)

The Annual General Meeting voted, as proposed by the Board of Managing Directors and the Supervisory Board of Commerzbank, that the distributable profits of approximately €188 million for the financial year 2019 as reported in the annual financial statements, be allocated in full to the other profit reserves. By this, Commerzbank follows a recommendation by the European Central Bank to not pay a dividend for the year 2019. The resolution was passed with a majority of 99.69%.

Discharge (items 3 and 4)

The members of the Board of Managing Directors and Supervisory Board were discharged with a majority of 89.8% and 89.42% respectively.

New election of members of the Supervisory Board (item 6)

Anja Mikus and Markus Kerber have resigned from their mandates on the Supervisory Board with effect as of today´s Annual General Meeting. As proposed by the Supervisory Board, the Annual General Meeting elected Jutta Dönges (Managing Director of Bundesrepublik Deutschland – Finanzagentur GmbH) and Frank Czichowski (Senior Vice President/Treasurer KfW Banking Group) as successors with a majority of 98.21% and 99.66% respectively.

Compensation of the members of the Board of Managing Directors (item 7)

Shareholders approved the system of compensation for the Board of Managing Directors adjusted in March 2020 with a majority of 76.45%. The system takes into account the current regulatory requirements, the German Remuneration Ordinance for Institutions under Supervisory Law, and the recommendations of the German Corporate Governance Code.

Anticipatory resolutions on share buybacks (items 9 and 10)

The Annual General Meeting approved the anticipatory resolutions on share buybacks. The Bank now has the opportunity to acquire treasury shares in a volume of up to 10 per cent of the value of the share capital by May 2025. The Bank will also be able to use derivatives for this purpose. Both can be used to optimise the Bank’s capital structure.

Amendment of the articles of association (item 11)

The shareholders had to decide whether the Bank can apply a shortened notice period for a restructuring general meeting in the hypothetical case of a significant deterioration of the financial situation under very specific conditions which is a recommendation of the Banking Supervision. In this case, the new proposal allows a shortened invitation period of 14 days. Commerzbank had already submitted a corresponding proposal to amend its articles of association to the 2017 Annual General Meeting which slightly missed the necessary majority of two thirds of the votes cast. Taking into account the feedback received from the shareholders, the current proposal from the Board of Managing Directors and the Supervisory Board provided for an invitation period of 14 days, which does not make full use of the statutory parameter of ten days. This resolution was passed by the Annual General Meeting with a majority of 98.96%.

The precise voting results on the individual items on the agenda can be found at www.commerzbank.com/agm

*** Press contact Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

Owing to the coronavirus crisis, Commerzbank reported an operating result of minus €277 million in the first quarter of 2020. Temporary valuation effects exerted a negative impact here along with a higher risk provision booked on account of the pandemic. However, the Bank posted good development in client business and thereby increased its net interest and commission income overall by 10% in a comparison with the year-earlier quarter. Deducting the negative impact arising from the coronavirus totalling minus €479 million, the Bank would have achieved an operating profit of €202 million. In spite of the coronavirus effects, the Common Equity Tier 1 ratio at 13.2% remained at a comfortable level and forms a good basis for managing the crisis and the implementation of the Bank’s strategy. The Bank has made considerable progress on this front. The complete takeover of comdirect is in the final straight, after a resolution on the squeeze-out under merger law was passed at the Annual General Meeting of comdirect. Furthermore, Commerzbank economically completed the sale of the Equity Markets & Commodities (EMC) business division to Société Générale with the successful handover of the final trading books and systems a few days ago. Meanwhile, the Bank has decided to not pursue the sale of the Polish mBank in the light of current market distortions and its own strong capital position.

With the outbreak of the pandemic, Commerzbank implemented a range of different measures directed towards safeguarding stable and secure business, and providing support for clients. At the highpoint of the coronavirus lockdown, around 80% of the employees were working remotely. Nevertheless, more than 80% of the branches were staffed during the lockdown and more than 200 large locations were open. Since the beginning of May, the Bank has adopted a step-by-step approach to opening further branches. All the self-service zones are open. Overall, more than 18,000 financing and information enquiries relating to the crisis were received from corporate clients and small business customers. The Bank carried out significantly more than 20,000 advisory consultations on financing for coronavirus with corporate clients and small business customers and it has provided them with around €11 billion of additional liquidity in Germany and abroad until the end of April. As early as the first seven weeks of the crisis, Commerzbank approved around 2,500 loan applications for the German Development Bank (KfW) amounting to a volume of nearly €4 billion. Until the end of April, Commerzbank deferred more than 20,000 loans from private customers and corporate clients with a volume of more than €2.5 billion. At the same time, user figures reached record values for digital offerings. The upward trajectory of customer growth continued with the Bank acquiring around 10,000 new customers on average each week in the first quarter primarily through online channels.

“At this moment, we are experiencing historically unprecedented circumstances. The coronavirus pandemic is putting the world and our economic system under a severe strain. We have not seen a comparable crisis since World War II. The banks have a key role to play in overcoming this crisis by providing liquidity and thereby helping their customers to get through these difficult times. We accept this responsibility and we have already provided around €11 billion of additional liquidity,” said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “Our strong balance sheet and our robust liquidity and capital position place us in a good position to meet this challenge and help the German economy with full strength”.

Group revenues benefited from good customer business during the first quarter. Net interest income went up by in excess of 7%, and net commission income grew by more than 14% on the back of an excellent securities business. This contrasted above all with the temporary negative valuation effects on hedging transactions for customers and on own account amounting to €295 million. This was due to the high level of market volatility. When markets stabilise, the valuations of these derivatives are likely to recover. Overall, revenues amounted to €1,853 million (Q1 2019: €2,157 million) in the first quarter of 2020.

Costs came down to €1,804 million (Q1 2019: €1,832 million), and operating expenses were reduced by 4% to €1,503 million (Q1 2019: €1,567 million). Effective cost management was the most important contributing factor here along with advances in personnel reduction. At the end of March, the number of full-time employees in the Group stood at 39,800, a reduction of around 1,200 by comparison with the year-earlier figure. As announced, the Bank launched a new phased part-time retirement programme in April as part of the strategy “Commerzbank 5.0” to bring about further job reductions. On the other hand, negative impacts arising from compulsory contributions rose to €301 million (Q1 2019: €265 million) in the first quarter. The reason for this was the significantly higher European bank levy, which was reported in full during the first quarter.

The risk result increased fourfold to minus €326 million (Q1 2019: minus €78 million) as a result of the coronavirus pandemic. Of this, €185 million are due to the effects of the crisis. Apart from actual losses amounting to €74 million as a consequence of the pandemic, this amount is primarily made up of top level adjustments for expected credit losses amounting to €111 million. This takes account of the charges that are currently foreseeable and of the comprehensive government aid programmes. Overall, the loan book continued to be healthy with a low ratio of non-performing loans of 0.8% thanks to the massive reduction in risk over recent years.

The operating result was minus €277 million (Q1 2019: €246 million). The effects of the coronavirus on the risk profit and in loan loss provisions amounted to minus €479 million. The pre-tax result was minus €233 million (Q1 2019: €227 million). It includes extraordinary proceeds from the EMC sale. The net result attributable to Commerzbank shareholders came out at minus €295 million (Q1 2019: €122 million).

The Common Equity Tier 1 ratio (CET1 ratio) stood at a strong 13.2% at the end of March 2020 despite increased Risk-Weighted Assets, also due to credit demand in the Corporate Clients segment (end of December 2019: 13.4%; March 2019: 12.7%). The leverage ratio was 4.7% (March 2019: 4.5%) and was hence clearly above the requirements. The Liquidity Coverage Ratio (LCR) of 130% at the end of March also significantly exceeded all regulatory requirements and demonstrates the comfortable liquidity position of the Bank.

“Thanks to the far-reaching measures adopted by the Federal Government, we anticipate that German companies, which make up the lion’s share of our business, will come through the crisis comparatively well,” commented Bettina Orlopp, Chief Financial Officer of Commerzbank. “We have a healthy loan book and the proportion of impaired loans has been below the average for Germany and Europe for many years now. We will therefore be able to cushion additional effects resulting from the pandemic. At the same time, we will intensify our cost management even more this year. This is because cost efficiency and powerful digital structures are absolutely essential particularly during the current period”.

Development of the segments

The Private and Small-Business Customers (PSBC) segment posted an excellent quarter in all business areas. Revenues increased by 10% to €1,317 million (Q1 2019: €1,201 million). Strong securities business made a major contribution to this, which generated an increase of 25% for net commission income. Furthermore, despite the restrictions caused by the coronavirus, the segment acquired a net increase of 142,000 customers in Germany especially on the basis of online acquisitions. The volume of mortgage lending went up by 7% to €82.2 billion. The volume in consumer finance business rose to €3.8 billion (year-end 2019: €3.7 billion).

The risk result of the PSBC segment increased to minus €160 million (Q1 2019: minus €52 million). Thereof, €83 million were attributable to mBank. Overall, revenue growth compensated for the higher risk result so that the operating profit remained stable with €150 million (Q1 2019: €153 million). Without the coronavirus effects totalling €62 million, the segment’s operating profit would have been €212 million.

The Corporate Clients segment succeeded in maintaining revenues in the direct customer business at a largely stable level in the first quarter compared both with the year-earlier quarter and the fourth quarter 2019 in spite of the pandemic. The loan volume of corporate clients increased as a result of the higher financing requirement to €89 billion on quarterly average. Due to the volatile markets, the valuation of hedging instruments for customers resulted in temporary negative earnings effects. Overall, the segment achieved revenues of €747 million (Q1 2019: €860 million) in the first quarter.

The risk result in the Corporate Clients segment increased to minus €166 million (Q1 2019: minus €28 million). Of this, €122 million were due to the consequences of the pandemic - €61 million was caused by defaults actually related to the coronavirus and a further €62 million for top level adjustments. Overall, the segment’s operating profit was minus €114 million (Q1 2019: €119 million). Without charges due to the crisis in the risk result and the valuation effects together totalling 201 million, the segment would have generated an operating profit of €86 million.

In Others and Consolidation, the Bank reported an operating profit of minus €313 million (Q1 2019: minus €19 million) in the first quarter. Once again, the reason for this were temporary effects in the valuation of long-term hedging transactions for interest and currency risks in March, which were partly compensated again in April.

Outlook

Even during the coronavirus crisis, Commerzbank will continue to stand at the side of its customers. The Bank will further develop its business model incorporating the experiences from the Corona crisis. In view of the uncertainty about the further development of the pandemic, it is difficult to provide a concrete outlook. Assuming that the economy will gradually gain momentum after a lockdown lasting around two months and that there is no second lockdown, the Bank expects to keep revenues in customer business largely stable in the financial year 2020, excluding the influence of non-recurring and valuation effects. As a result of the intensified cost management, the Bank targets to achieve a cost base on the level of 2019 now also including IT investments of up to €0.2 billion from “Commerzbank 5.0”. Commerzbank expects charges amounting to between minus €1.0 and €1.4 billion to impact the risk result. With the 55 basis point reduction in regulatory minimum capital requirements, the Bank is adjusting its target for the CET1 ratio from at least 12.75% to at least 12.5% at the end of the year. The current CET1 ratio of 13.2% gives the Bank leeway to take advantage of additional business opportunities.

*** Press contact Margarita Thiel +49 69 136-46646 Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.7 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Polish mBank S.A. ("mBank") will remain part of the Commerzbank Group. Commerzbank has decided to retain its majority stake of 69.3% in its Polish subsidiary and to terminate the sales process. Under the current market conditions which are dominated by the coronavirus crisis, a transaction doesn’t seem feasible at reasonable terms. The Bank will consistently continue to pursue its Commerzbank 5.0 strategy. The Bank’s strong capital position provides a good basis for this.

Commerzbank announced in September 2019 its intention to sell its majority stake in mBank. At the time the main objective of the sale was to significantly reduce risk-weighted assets and to release capital within the Group for a faster implementation of the Commerzbank 5.0 strategy. In the meantime, Commerzbank has achieved sufficient flexibility with regards to its Common Equity Tier 1 ratio.

“It is clear that we will only sell such a valuable asset as mBank if the terms are right. The current market environment which is marked by the corona crisis, does not allow for an attractive valuation in line with the underlying value of mBank," said Bettina Orlopp, Chief Financial Officer of Commerzbank. "Our strong capital position gives us the leeway to implement our Commerzbank 5.0 strategy and make the planned investments without the need to sell mBank”.

*** Press contact Margarita Thiel +49 69 136-46646 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019 Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

Shareholders who want to participate in the virtual Annual General Meeting must have registered by the end of 6 May 2020. They will receive the internet access code required for online access with their confirmation of registration. Shareholders may submit questions via an electronic system until midnight on 10 May 2020. During the event, further questions cannot be posed.

The agenda includes the presentation of the consolidated and individual annual financial statements for 2019 (item 1), the ratification of actions by the corporate bodies (items 3 and 4), and the election of the auditor (items 5).

Of particular note are the following additional items to the agenda:

Resolution on the use of distributable profits (item 2)

The Board of Managing Directors and the Supervisory Board of Commerzbank propose that the distributable profits of approximately €188 million for the financial year 2019, as reported in the annual financial statements, be allocated in full to the other profit reserves. This would mean that Commerzbank, following a recommendation by the European Central Bank, would not pay a dividend for the year 2019.

New election of members of the Supervisory Board (item 6)

Anja Mikus and Markus Kerber have resigned from their mandates in the Supervisory Board on 2 April 2020 with effect as of the Annual General Meeting. Therefore, the proposal is made to elect Jutta Dönges (Managing Director of Bundesrepublik Deutschland – Finanzagentur GmbH) and Frank Czichowski Senior Vice President/Treasurer KfW Banking Group) as successors.

Compensation of the members of the Board of Managing Directors (item 7)

The Annual General Meeting is asked to approve the system of compensation for the Board of Managing Directors adjusted in March 2020. It takes into account the current regulatory requirements, the German Remuneration Ordinance for Institutions under Supervisory Law, and the recommendations of the German Corporate Governance Code.

Anticipatory resolutions on share buybacks (items 9 and 10)

The Bank is to be given the opportunity to acquire treasury shares in a volume of up to 10 per cent of the value of the share capital by May 2025. The Bank should also be able to use derivatives for this purpose. Both can be used to optimise the capital structure.

Amendment of the articles of association (item 11)

The shareholders are to decide whether the Bank can apply a shortened notice period for a restructuring general meeting in the hypothetical case of a significant deterioration of the financial situation under very specific conditions. In this case, the new proposal allows a shortened invitation period of 14 days.

As in previous years, the speeches of the Chairman of the Supervisory Board and the Chairman of the Board of Managing Directors at the Annual General Meeting will be transmitted live for the entire public on the internet on 13 May 2020 at www.commerzbank.com/agm. The hashtag on Twitter for the Annual General Meeting is #CobaHV. The full details of the invitation to the 2020 Annual General Meeting, including the agenda and explanations of the individual items, can also be found at www.commerzbank.com/agm.

*** Press contact Margarita Thiel +49 69 136-46646 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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The Board of Managing Directors of Commerzbank will not propose a dividend payment for the 2019 financial year to the Annual General Meeting 2020. Commerzbank is thus following the European Central Bank’s recommendation to banks from 27 March 2020 not to pay a dividend for 2019 and 2020 until at least 1 October 2020, given the uncertainties caused by the Corona Virus pandemic. For the current fiscal year 2020, the Management Board will not plan for a dividend payment until the uncertainties caused by the Corona Virus pandemic have ended. The Board will then decide on this again as appropriate. Therefore, any quarterly profits can be fully included in the regulatory capital ratios.

“In view of the Corona pandemic our priority is to support our customers," said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. "We have strong capital buffers and a comfortable liquidity position that are above all regulatory requirements. Nevertheless, given the uncertainties surrounding the Corona Virus pandemic, it makes sense to follow the ECB's recommendation and suspend dividend payments for the time being."

On the basis of the amendments to the German law adopted by the Bundestag last week, the Bank is planning to hold its Annual General Meeting this year as a virtual online event. “The health of our shareholders and of employees and service providers involved in the organization of the event has priority. We are thus reviewing all options for a legally, technically and organizationally reliable execution of our shareholders’ meeting,” explained Martin Zielke. “Depending on this, the Annual General Meeting will be held on 7 May 2020 as originally scheduled or at a later date. We welcome the substantial statutory easing of regulations introduced by the Federal Government to facilitate the holding of annual general meetings. This places us in the position of being able to pass the necessary resolutions despite the restrictions imposed by the Corona Virus pandemic”.

*** Press contact Margarita Thiel +49 69 136-46646 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

Download Press Release (PDF, 420 kB)

Commerzbank and comdirect today signed the contract to merge comdirect into Commerzbank. The comdirect Annual General Meeting will decide on the squeeze-out under merger law. The goal of the merger is to combine the strengths of the two banks and to better prepare for the challenges of the market and the competitive environment.

According to the current planning status, the integration will be gradual. After the legal merger, Commerzbank and comdirect will initially continue to offer unchanged services. The offering will then be merged, unified, and expanded. With this, the Bank intends to offer its customers the best solutions and to meet its claim to be the leading bank in Germany for retail customers and small-business customers. The main objective of the integration is the further development of our digital services for all customers with a focus on “mobile first” and the expansion of personal advisory services especially for private banking, wealth management, and small-business customers.

The comdirect locations Quickborn and Rostock will remain. All employment relationships of the comdirect employees, which exist at the time of the merger, will be transferred to Commerzbank with the merger. In addition to the strategic advantages of the merger, Commerzbank will realise synergy potential of up to €150 million per year as a result of the complete integration, increasing profitability in a difficult market environment. Synergies arise, for example, from the reduction of double functions, the consolidation of infrastructure, and the consequent digitalisation.

Commerzbank’s Annual Report published today, reports on the audited figures for the past financial year and confirms the preliminary figures of the Group, as published at the Annual Press Conference on 13 February 2020. Operating profit for the 2019 financial year amounted to €1,258 million (2018: €1,242 million). The consolidated profit attributable to Commerzbank shareholders and investors in additional equity components was €644 million, compared with €862 million in the previous year.

The individual financial statement of Commerzbank AG in accordance with the provisions of the German Commercial Code (HGB) show a net profit of €188 million for 2019 (2018: €262 million). This includes the servicing of all profit-related capital instruments of Commerzbank AG. The outlook published in the Annual Report does not yet take into account the possible effects of the Corona crisis.

Detailed information about the monetary remuneration of the members of the Board of Managing Directors can be found in the remuneration report (starting on page 29). The number of employees at the end of 2019 was 48,512.

The merger documents and the 2019 Annual Report can be found on our webpage.

*** Press contact Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947 Gunnar Meyer +49 69 136-27298

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Commerzbank will pay a cash compensation of €12.75 per share to the minority shareholders of comdirect as part of the planned squeeze-out under merger law of comdirect bank Aktiengesellschaft (“comdirect”). The basis for the price is the objective corporate value determined by the auditor Warth & Klein and the share price of comdirect. The adequacy of the cash compensation will also be reviewed by the court-appointed auditor Baker Tilly.

Warth & Klein has determined a company value of €1,577 million for comdirect using the capitalised earnings method. This results in a value per share of €11.17, which is slightly lower than Commerzbank's voluntary public acquisition offer for comdirect of 11.44 euros per share which was published on 30 October 2019. The share price of comdirect was also taken into account when determining the appropriate amount of the cash compensation. The decisive factor here is the volume weighted average price (VWAP) of comdirect during the three-month period prior to the announcement of the squeeze-out under merger law. Commerzbank announced on 3 January 2020 that it had reached the 90% investment threshold required for the squeeze-out under merger law. The VWAP for the relevant period before 3 January 2020, amounted to €12.75 per share, according to the Federal Financial Supervisory Authority (Bafin) and is therefore the lower limit for the amount of cash compensation.

“With the integration of comdirect, we will accelerate the digital transformation of Commerzbank and develop even better services for customers. The determination of cash compensation for comdirect shareholders is the next step on the way to the squeeze-out under merger law,” said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “After the annual general meeting of comdirect, we will be pushing the integration forward with full force”.

Commerzbank currently holds about 90.29% of comdirect shares and has reached the required investment threshold for a merger-law squeeze-out. As the next step, comdirect’s annual general meeting is to decide on the transfer of the shares of comdirect’s minority shareholders to Commerzbank. Upon entry into the commercial register at the competent court, the merger will take legal effect and the cash settlement will be paid to the minority shareholders of comdirect.

By integrating comdirect, Commerzbank aims to draw on comdirect’s strong digital expertise and innovative capabilities for the benefit of all Commerzbank group customers in future. The integration will also give comdirect the opportunity to scale up its offering through Commerzbank. comdirect should maintain its usual product and service level quality, and in the future, customers will also benefit from Commerzbank's branch presence. In addition to the strategic advantages of the merger, Commerzbank will realise significant synergy potential of up to €150 million as a result of the integration.

***

Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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150 years ago, on 26 February 1870, Commerzbank was founded as “Commerz- und Disconto-Bank” in Hamburg. The Bank celebrated its anniversary on Wednesday with an event in Frankfurt attended by approximately 500 guests from the areas of politics, economics and culture. “The history of the Bank mirrors Germany’s political and economical history,” said Stefan Schmittmann, Chairman of the Supervisory Board of Commerzbank, at the event. “From the founding of the German Reich in 1871 until the reunification of our country, Commerzbank was and is one of the major financers of the German economy. Initially only serving businesses, at the beginning of the 20th century the Bank opened to private customers as well”.

“Our 150th anniversary is a very special and emotional moment for us,” said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “We have been supporting our customers for 150 years. This makes us proud. The acceptance by our customers shall also shape the next decades. Commerzbank is here to stay”.

Federal Minister of Finance Olaf Scholz took up a request from Schmittmann for a level playing field of the regulation of banks, FinTechs and BigTechs and said: “We can only manage a successful modernisation if we are economically strong and solidary. And if we think and act in an European way. Modernisation must be fair. This also applies to the tax system. At an international level, we are currently working hard to ensure that large digital corporations, in particular, are adequately taxed”.

“I warmly congratulate Commerzbank on its 150-year anniversary. Commerzbank is an important part of Frankfurt’s financial centre, the most significant one on the European continent," said Hesse’s Prime Minister Volker Bouffier. “As state government in Hesse, one of our central goals is to make it even more attractive compared to international competitors. Our previous commitment has been successful. Frankfurt is regarded as a Brexit winner in the banking sector and has expanded its position as a leading financial centre. It plays a central role in the economic prosperity of our country and provides and secures many jobs. But we cannot afford to rest on our laurels. In the future, we must continue to jointly make great efforts to ensure that Frankfurt continues to be one of the world's leading financial centres. Commerzbank and its employees can make an important contribution to this. In the past, they have repeatedly demonstrated that they can adapt to new challenges and are capable of change. This is a prerequisite for sustainability – today, as well as 150 years ago”.

The Bank has accompanied Germany's economic development closely for 150 years. Founded to provide business with new financial resources as well as to facilitate international trading, financing of foreign trade and the Mittelstand is still at the heart of the Bank. As a result, the Bank made a big contribution to transforming Germany into a modern industrial nation. At the beginning of the 1920s, Commerzbank had the largest branch network among all German banks and so managed to target numerous medium-sized customers nationwide. In the course of the 20th century, it has risen up to be one of the leading, international commercial banks, also with a strong focus on private banking since the 1950s. Today, Commerzbank finances around 30% of German exports and serves more than 11 million private customers in Germany. Then and now, taking responsibility for society has always been important. 50 years ago, Commerzbank established the Commerzbank foundation which supports projects in the scientific, cultural, and social fields nationwide.

“Commerzbank has always reorganised and developed to withstand the challenges of the future in an increasingly changing environment,” said Stefan Schmittmann. Martin Zielke added: “In our long history we have always proven that we’re able to adapt to new requirements and emerge stronger from crises. We want to actively shape the change and inspire others to do so”.

Critical examination of the Bank’s history

On the occasion of the anniversary, the Eugen Gutmann-Gesellschaft, a foundation supported by Commerzbank, will release a scientific publication on 9 March 2020. In the study, “150 years Commerzbank 1870–2020”, authors Stephan Paul, Friederike Sattler and Dieter Ziegler take a critical view on the history of Commerzbank based on numerous sources, some of which were previously unexplored. In his speech, Stefan Schmittmann especially mentioned the Bank’s role during the time of National Socialism as well as the responsibility of Germans: “We have to keep the memory awake so that what happened at that time will never happen again. I acknowledge this responsibility on behalf of Commerzbank”.

Additonal material can be found on our webpage as well as a film about Commerzbank’s 150 year anniversary.

History of Commerzbank

*** Press contacts Nils Happich +49 69 136-80529 Oliver Redenius +49 69 136-27164 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has provided a mezzanine tranche guarantee of around EUR 100m to Commerzbank AG on a EUR 1.500m granular portfolio of loans to SMEs and Mid-Caps originated by Commerzbank in its ordinary business. The guarantee will release regulatory capital for Commerzbank and will enable Commerzbank to provide further lending of up to EUR 400m to innovative SMEs and Mid-Caps in Germany.

The transaction was made possible by the support of the “European Fund for Strategic Investments” (EFSI). The EFSI is the central pillar of the “Investment Plan for Europe”, or Juncker-Plan, in which EIB Group and the European Commission are strategic partners to strengthen the competitiveness of the European economy. Under the guarantee, EIB takes on the mezzanine risk under a synthetic securitisation transaction with Commerzbank. EIF is fronting the operation by providing a guarantee to Commerzbank in relation to an existing portfolio of SME and Mid-Cap loans. EIB will provide a back-to-back counter-guarantee to EIF which will fully mirror EIF’s obligations under its guarantee.

EIB Vice President Ambroise Fayolle, in charge of innovation and operations in Germany, commented: “The transaction clearly leverages EIB Group synergies, and strengthens Commerzbank’s capacity to provide fresh funds to innovative companies. This is a top priority for the EIB Group as SMEs and Mid-Caps are responsible for the creation of one in every two new jobs. Only this new operation with Commerzbank is expected to support nearly 60000 jobs. Therefore I am very glad that we are continuing our long and successful cooperation with Commerzbank in providing fresh access to finance for innovative businesses in Germany”.

EIF Chief Alain Godard: “EIF is pleased to be working with Commerzbank and the EIB to provide additional access to finance for SMEs and Mid-Caps. The combination of EIF’s investment and structuring expertise and the EIB’s efficient deployment of EFSI funds offer a competitive financing solution for Commerzbank which will serve to boost the supply of finance in the real economy”.

Roman Schmidt, Head of Capital Markets, Commerzbank AG said: “Commerzbank is Germany’s leading bank for SME and mid-cap lending and has been proudly co-operating with promotional banks for many years. This innovative product helps us to satisfy increasing client demands whilst providing the opportunity to manage our capital. Closing this consecutive synthetic securitisation under EFSI is a further proof of Commerzbank’s innovative spirit as well as a commitment to further support the German Mittelstand at competitive conditions”.

*** Press contact Commerzbank Christoph Ott +49 69 136 24431

Press contact EIB Christof Roche, c.roche@eib.org, Tel.: +352 4379-89013 / Mobil: +32 479 65 05 88 Website: www.eib.org/press – Pressestelle: +352 4379-21000 – press@eib.org

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019, Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

About the Investment Plan for Europe The Investment Plan for Europe, the Juncker Plan, is one of the EU’s top priorities to boost investment and to create jobs and growth by making smarter use of existing and new financial resources. The EIB Group is playing a vital role in this investment drive. Through guarantees from the European Fund for Strategic Investments (EFSI), the EIB and the EIF are able to take on a higher share of project risk, encouraging private finance providers to participate in the projects. In addition, EFSI is accompanied by a new advisory service, the European Investment Advisory Hub, which enables public and private project operators to structure their investment projects more professionally. The projects and agreements approved for financing under the EFSI so far are expected to mobilise €458.8 billion in investments and support around more than one million start-ups and SMEs across all 28 Member States.

*** 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.

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Commerzbank reported a stable operating profit in the financial year 2019 despite the further deterioration in the operating environment. Customer business remained healthy growing in terms of customers and assets. The Bank gained around 473,000 net private and small business customers in Germany and grew its loan and securities volume by 16% to €261 billion. The Corporate Clients segment increased its lending to corporates by €6 billion to €88 billion and improved its revenues in its direct customer business. Overall, the Bank’s growth initiatives resulted in an improvement in net interest income which offset the headwind from the negative interest rate environment. On the cost side, the Bank made further savings through strict cost management, enabling it to meet its cost target for 2019 of below €6.8 billion despite higher compulsory contributions. Meanwhile its negative risk result was higher driven by single cases in the Corporate Clients segment. At the same time the Bank’s loan quality showed a further improvement with a non-performing exposure (NPE) ratio of 0.9%.

Commerzbank has made a successful start to the implementation of its “Commerzbank 5.0” strategy and has already achieved tangible progress. It has increased its stake in its online subsidiary comdirect to over 90%, thereby laying the foundation for a rapid integration. The sale process of mBank in Poland has been started. And by the fast agreement on a part-time retirement program, the Bank has laid the basis for the personnel reduction to be as socially responsible as possible. Provisions of €101 million were already booked in the fourth quarter of 2019 for this purpose.

“We ended the financial year 2019 with a better operating profit than expected. Together with the strong capital ratio, this provides us with a good starting position for 2020. We will take advantage of the extra leeway,” said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “We have already made tangible progress with our “Commerzbank 5.0” strategy and are ahead of plan. So, I’m more optimistic about our return expectations than I was last autumn”.

Group revenues rose to €8,643 million in 2019 (2018: €8,570 million) with a further improvement in revenue quality: the growth initiatives resulted in a rise of nearly 7% in net interest income to €5,074 million (2018: €4,748 million). In the fourth quarter of 2019, a higher provision for foreign currency loans at mBank had a negative impact on revenues. Nevertheless in the last quarter, revenues climbed by almost

7% to €2,173 million (Q4 2018: €2,035 million). This is attributable to higher net interest income in the Corporate Clients segment and in Treasury, as well as increased net commission income on the back of the improvement in securities business in the Private and Small Business Customers segment.

Operating costs were reduced to €6,313 million in 2019 (2018: €6,459 million). Contributing factors included the progress made in the “Commerzbank 4.0” personnel reduction, targeted savings and the prioritisation of and efficiency gains in strategic investments. The Bank thereby more than compensated for the further rise in compulsory contributions to €453 million caused mainly by the higher European bank levy and the banking tax in Poland (2018: €423 million). In total, costs were cut to €6,766 million (2018: €6,882 million). In the fourth quarter, they totalled €1,673 million (Q4 2018: €1,642 million).

The risk profit was minus €620 million for 2019 due to single cases (2018: minus €446 million). The fourth quarter accounted for minus €250 million (Q4 2018: minus €154 million), mainly due to individual cases in the international corporate customer business. Overall, the diversification of the portfolio is robust enough to manage slowdowns in individual sectors. The NPE ratio improved further to a low 0.9% by the end of 2019 (end of 2018: 1.0%), underlining the Bank’s strong risk profile.

The operating profit for 2019, at €1,258 million, came in slightly higher than the previous year’s (2018: €1,242 million). In the fourth quarter it improved to €250 million despite the rise in the risk result (Q4 2018: €240 million). The full-year pre-tax profit of €1,112 million (2018: €1,227 million) includes the restructuring costs of €101 million booked in the fourth quarter for the first part of the personnel reduction. The net result attributable to Commerzbank shareholders and investors in additional equity components for 2019 came out at €644 million (2018: €862 million). The figure reflects the higher tax charge of €369 million (2018: €262 million). This fact and the provisions for the personnel reduction led to a net result of minus €54 million in the last three months of the year (Q4 2018: €113 million).

Capital buffer significantly strengthened

The Bank significantly improved its capital base: its Common Equity Tier 1 ratio (CET 1 ratio) stood at a strong 13.4% at the end of December 2019 (end of September 2019: 12.8%, end of 2018: 12.9%). This already includes the dividend accrual of 15 cents per share for the financial year 2019. The considerable improvement of the CET 1 ratio is attributable partly to the €3 billion reduction in Risk-Weighted Assets (RWA) for credit risk in the fourth quarter, achieved as a result of portfolio optimisation at the end of the year. The Bank also reduced the RWA for operational risk through enhancement in its model which was approved by the regulators. Overall, RWAs decreased by almost €8 billion between the end of September and end of December 2019 to almost €182 billion. The leverage ratio rose at a comfortable 5.1% at the end of 2019 (end of 2018: 4.8%). Total assets rose to €464 billion (end of 2018: €462 billion).

“We have systematically reduced our costs, thereby meeting our cost targets. And we will remain ambitious. Further, we have improved the quality of our earnings thanks to our good customer business and we will pay a dividend again for 2019”, said Bettina Orlopp, Chief Financial Officer of Commerzbank. “Our strong capital ratio of 13.4% provides us with more flexibility in the implementation of our strategy and for focused growth”.

Development of the segments

The Private and Small-Business Customers segment continued on its growth trajectory last year, attracting around 473,000 net new customers in Germany – 100,000 of these in the fourth quarter. This means that, on a net basis, it has brought more than 1.5 million new customers on board since autumn 2016. It increased its loan and securities volume by €35 billion to €261 billion in 2019 (end of 2018: €226 billion). Here, the volume of mortgage lending alone increased by a further €5.8 billion to €80.9 billion.

The growth also enabled the segment to increase its net interest income by 5.6%. This allowed it to offset the effects of negative interest rates and the ECB’s monetary policy. Overall, revenues increased to €4,913 million (2018: €4,806 million). Revenues rose to €4,883 million in 2019 (2018: €4,851 million) after adjustment for exceptional items such as the sale of ebase. In the fourth quarter, underlying revenues for the Private and Small Business Customers segment, impacted by the increased provision for foreign currency loans at mBank, totalled €1,173 million (Q4 2018: €1,185 million).

Operating costs were lower in 2019, at €3,529 million (2018: €3,586 million). However, compulsory contributions were up again at €285 million (2018: €252 million), particularly at mBank. The risk result rose to minus €253 million (2018: minus €233 million). Here, too, the increase came from mBank. Overall, the segment saw its operating profit jump by a good 15% to €846 million (2018: €735 million). The figure for the fourth quarter was €126 million (Q4 2018: €172 million), largely affected by the provision for foreign currency loans booked at mBank.

The Corporate Clients segment performed satisfactory in direct client business. It increased its lending to corporates by €6 billion to €88 billion in 2019 despite continued competitive pressure, and boosted revenues in its core business. Revenues with the Mittelstand and International Corporates increased by around 4 %, revenues with Financial Institutions grew by around 3%. However, the 2018 figures included profit contributions from legacy portfolios which have since been wound down. The absence of these in 2019 affected the segment’s revenues, which totalled €3,241 million (2018: €3,414 million). Underlying revenues came to €3,328 million for the full year (2018: €3,457 million) and €838 million in the fourth quarter (Q4 2018: €845 million).

The segment trimmed its full-year operating costs to €2,453 million through successful cost management (2018: €2,503 million). Charges arising from single cases caused the segment’s risk result to rise to minus €342 million (2018: minus €194 million). In the fourth quarter, these single cases occurred primarily internationally. Given the slowdown in German and European economic growth, the Bank remains cautious in its assessment of the risks and continues to closely monitor the portfolio. In total, the segment generated an operating profit of €328 million in 2019 (2018: €597 million). The operating profit for the fourth quarter came to €42 million due to the rise in loan loss provisions and the absence of the contribution from the discontinued legacy portfolios (Q4 2018: €110 million).

Outlook

Commerzbank will continue to pursue its growth strategy and targets underlying revenues in 2020 at least at the level of 2019. It confirms its target for a cost base of €6.7 billion plus up to €0.2 billion cost to achieve IT investments as part of the Commerzbank 5.0 agenda. The risk result is expected to be above minus €650 million. The Bank is planning to maintain a dividend pay-out ratio for 2020 at a level comparable to 2019. It confirms its target for a Common Equity Tier 1 ratio of at least 12.75% by year end.

*** Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2019 Commerzbank generated gross revenues of €8.6 billion with approximately 48,500 employees.

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Commerzbank has joined the Climate Bonds Initiative Partnership Program, effective January 2020, marking a new step in the bank’s commitment to sustainability. The international NGO, in which more than 100 global partners from across the financial sector participate, aims to contribute to a CO2-efficient and climate-resilient economy via the global bond market.

Climate Bonds are a part of the Green Bond market. In order to issue a Climate Bond according to the definitions of the Climate Bonds Initiative, the issuer must demonstrate that the proceeds of the bond reduce climate-damaging CO2 emissions or increase the climate resilience of the economy. In 2019, Green Bonds were issued with a volume of more than 230 billion euros. Of these, ca. 80% were in line with the definitions of the Climate Bonds Initiative.

"The financial market plays a key role in the fight against climate change. The Climate Bonds Initiative makes an important contribution to securing the credibility, transparency and traceability of the sustainable bonds market," says Roman Schmidt, Head of Commerzbank's Capital Markets business. "Partnering with the Climate Bonds Initiative provides an opportunity for Commerzbank to cooperate at many levels with a leading international proponent of green finance activities”.

“We are delighted to welcome Commerzbank to our partners network. As an active participant in green finance and low carbon projects worldwide for many years, their market experience is widely acknowledged. Commerzbank’s deep understanding of the German Energiewende (energy transition) will help in transferring lessons learned into other areas still to undergo transition in the face of the escalating climate crisis “, says Manuel Adamini, Head of Investor Engagement at the Climate Bonds Initiative.

Commerzbank has a long history of expertise in the business of sustainable and green bonds. In 2007 Dresdner Bank, which was integrated into Commerzbank, lead managed the first ever Green Bond issue by the European Investment Bank (EIB). Commerzbank has been a signatory of the Green Bond Principles since 2014. These guidelines define a voluntary standard for the issuance process of green bonds and promote standardisation, integrity and transparency in the market for Green Bonds. In October 2018, Commerzbank launched its first own Green Bond. The issue volume was EUR 500 million. The five-year bond is used to refinance renewable energy projects.

*** Press contact Christoph Ott +49 69 136-24431

Press contact Climate Bonds Initiative Andrew Whiley +44 7506 270 943 andrew.whiley@climatebonds.net

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018 Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

About the Climate Bonds Initiative Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low carbon economy. Climate Bonds undertakes advocacy and outreach to inform and stimulate the market, provides policy models and government advice, market data and analysis, and administers an international Standard & Certification Scheme for best practice in green bonds issuance. For more information, please visit www.climatebonds.net.

Climate Bonds Partners Program Banks, institutional investors, private and non-governmental organizations (NGOs) and governments are eligible to join as Climate Bond Partners to help grow a market of green and climate bonds. Partners support investor and stakeholder outreach and education projects centred on growing robust and¬¬¬ sustainable green bond markets that contribute to climate action and low carbon investment. Partners assist in developing initiatives to grow investment in climate finance solutions, participate in different market development committees and help define policy agendas for sector, country and sub-national green bond development programs. A list of Partners is available here.

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Commerzbank AG will acquire an equity stake in comdirect bank Aktiengesellschaft ("comdirect") from institutional investor Petrus Advisers Ltd. through its subsidiary Commerzbank Inlandsbanken Holding GmbH. The purchase price has not been disclosed.

Once the transaction has been completed, Commerzbank will hold more than 90 percent of the shares of comdirect. Meaning that Commerzbank has reached the required investment threshold for the merger of comdirect into Commerzbank by means of a squeeze-out under merger law. In the course of the targeted squeeze-out, comdirect shareholders will receive a cash compensation for their shares. “With the increase of our comdirect stake, we have laid the basis for a swift merger of comdirect into Commerzbank. This is an important step to quickly and efficiently execute the integration of our successful direct banking subsidiary and realise significant synergies. This is a key component of our Commerzbank 5.0 strategy. With our strong multi-channel bank we will offer comdirect’s excellent brokerage services to all Commerzbank customers,” says Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank.

By integrating comdirect, Commerzbank aims to draw on comdirect’s strong digital expertise and innovative capability for the benefit of all Group customers in future. The integration will also give comdirect the opportunity to scale up its offering through Commerzbank. For the customers of comdirect, the usual product and service quality should be maintained and in the future they will also benefit from Commerzbank's branch presence. In addition to the strategic advantages of a merger, Commerzbank will realise significant synergy potential as a result of the integration.

*** Press contact Nils Happich +49 69 136-80529 Maximilian Bicker +49 69 136-22440

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018, Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

Under the voluntary public acquisition offer of Commerzbank AG for all the outstanding shares of comdirect bank Aktiengesellschaft (“comdirect”), the acceptance deadline on 6 December 2019 has now expired. By the end of the acceptance deadline, comdirect shareholders had tendered a total of 457,343 shares. Including the comdirect shares already held by Commerzbank, this shareholding corresponds to a proportion of approximately 82.63 per cent of all the shares. This means that the offer condition of a minimum acceptance threshold of 90 per cent has not been met so that the acquisition offer is not executed. comdirect shareholders will therefore initially retain their shares.

The integration of comdirect will now take place by means of a direct merger into Commerzbank. Following consent granted by the general meetings of both companies, the shareholders of comdirect will receive Commerzbank shares in exchange for their shares. The exchange ratio will be determined on the basis of expert reports on the value of comdirect and Commerzbank. The direct merger was already announced as an alternative at the end of September 2019.

“We are confident about the logic of integrating comdirect, and we are well prepared. I want to see more comdirect in Commerzbank, and bundling our resources is the best way of getting there. A direct merger of comdirect into Commerzbank will now take place. We will institute the necessary measures immediately,” commented Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “All customers will benefit from the merger: comdirect customers will still be able to rely on the proven offering of products, services, and brokerage. The branch network of Commerzbank will also offer them new options. Commerzbank customers will gain access to comdirect’s excellent digital offering”.

Since it was founded in 1994, comdirect has set benchmarks in online banking with innovative products, services, and advisory capabilities. Today, it is one of the leading direct banks and one of the leading online brokers in Germany. The business models of the two companies are becoming ever more closely aligned, and this is why comdirect shall be integrated into Commerzbank to become part of a strong, innovative multichannel bank. As a result of this, it will also be able to benefit from scale effects and growth opportunities within the Group. In addition to the strategic advantages, Commerzbank will be able to realise significant potential synergies from the integration.

*** Press contact Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018, Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

*** Disclaimer and Forward-Looking Statement This release is neither an offer to purchase nor a solicitation of an offer to sell comdirect bank Aktiengesellschaft shares or any other security. The offer document, the terms and conditions contained therein shall have sole relevance in respect to the offer. Investors and holders of shares in comdirect bank Aktiengesellschaft are advised to read the relevant documents regarding the takeover offer to be published by Commerzbank Inlandsbanken Holding GmbH as they contain important information. Investors and holders of shares in comdirect bank Aktiengesellschaft can receive the offer document as well as other documents in connection with the offer from the website www.commerzbank-offer.com once they become available.

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Commerzbank AG now offers its customers Apple Pay. Apple Pay enables easy, secure and private payments with iPhone, Apple Watch, iPad, and Mac. Customers can make fast and convenient purchases in stores, in apps and on websites.

"We want to make life easier and faster for our customers in terms of finance and the launch of Apple Pay is a key building block. This makes digitisation a positive experience in everyday life," said Uli Coenen, Head of Division at Commerzbank, responsible for Marketing and Digital Banking in the private and small business customer segment.

Security and privacy are at the core of Apple Pay. The actual card number of credit or debit cards used are not stored on the device, nor on Apple servers.

Apple Pay is easy to set up and users will continue to receive all the rewards and benefits offered by their Master or Visa credit and debit cards.

With iPhone and Apple Watch, customers can pay with Apple Pay in shops, restaurants, taxis, vending machines and many more places. When shopping on the web in Safari with Apple Pay, there´s no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information. Every Apple Pay purchase is authenticated with just a glance or touch with Face ID or Touch ID, or a device´s passcode.

For more information on Apple Pay, visit: http://www.apple.com/de/apple-pay

*** Press contact Hans-Peter Rudolph +49 69 136-50306

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018, Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

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Deutsche Börse and HQLAX successfully launched their jointly developed Distributed Ledger Technology (DLT) solution for frictionless collateral swaps in the securities lending market. The live transactions were executed by Commerzbank, Credit Suisse and UBS on the Eurex Repo F7-trading system.

As part of these transactions, ownership of a basket of German government bonds and a basket of corporate bonds was swapped between UBS and Commerzbank, both using Clearstream Banking S.A. as custodian. This was followed by a cross-custodian swap between UBS and Credit Suisse, in which ownership of a basket of corporate bonds at Clearstream Banking S.A. and a basket of German government bonds at Euroclear Bank was exchanged without the need for securities to be physically moved between the collateral agents. Instead, the change in ownership was recorded on the digital collateral registry, which is one of the four layers of the HQLAX operating model and was built on Corda Enterprise, the commercial distribution of R3’s blockchain platform.

The successful launch of the platform is an important milestone for the implementation of DLT in the securities lending market. “The go-live of the HQLAX operating model demonstrates the power of innovation that DLT is already bringing to the financial services industry,” said Jens Hachmeister, Head of New Markets at Deutsche Börse. “It proves how new technology can successfully be combined with trusted market infrastructure – and the positive reception of the model in the market speaks for itself. We look forward to continuing our fruitful collaboration with HQLAX”.

The three pioneer banks, Commerzbank, Credit Suisse and UBS, have been working with HQLAX since the start of this digital transformation initiative. “HQLAX have come a very long way in a relatively short period of time,” said Guido Stroemer, CEO of HQLAX. “The launch of our production platform is the culmination of strong collaboration, not only with our strategic partner Deutsche Börse, but also with R3 and several global banks with which we began our journey less than three years ago in an R3 lab. Our mission statement from the very beginning has been to deliver solutions for specific pain points in the market, and so we worked very closely with a core group of banks to deliver an operating model that was designed by the market, for the market”.

Peter Schmidt, Co-Head, Repo Desk Treasury at Commerzbank, said, “HQLAX delivers a fascinating approach to overcome the fragmented post-trading landscape. It enables treasury departments to manage their collateral pools more efficiently by significantly reducing the settlement cycle and avoiding resource-intensive collateral movements. It is a first but important step toward a new ecosystem where tokenised assets can be traded in a DLT environment”.

Romain Dumas, Managing Director in the Global Liquidity Group at Credit Suisse, added, “These first production trades constitute a major step toward unlocking the operational value we see in technology. We are delighted to have worked with HQLAX since the very beginning and look forward to collaborating with them in the future”.

Gareth Allen, Head of UBS Treasury Assets, said, “It's very exciting to help bring DLT into the secured funding markets via the HQLAX platform. We hope that innovative ideas like this bring more liquidity to the secured funding markets and allow them to operate more efficiently. We look forward to our continued collaboration with HQLAX and its growing ecosystem of custodians and market participants to help shape strategic innovation in the securities lending market”.

In addition to Commerzbank, Credit Suisse and UBS, over 15 market participants, including CIBC, Citi, Goldman Sachs and ING, are currently engaged in different phases of onboarding to the HQLAX platform. Meanwhile, J.P. Morgan is in the process of becoming the third tri-party agent in the HQLAX operating model, alongside Clearstream Banking S.A. and Euroclear Bank. This will add another important custody/collateral location to the solution, further increasing collateral mobilisation efficiencies for participants.

Earlier this year, Deutsche Börse also acquired a third tranche of shares in HQLAX.

*** Press contact Josefin Altrichter +49 69 136 80209 JosefinMarie.Altrichter@commerzbank.com

*** About the HQLAX operating model The HQLAX operating model facilitates more efficient collateral management of high-quality liquid assets (HQLA) – which are in heightened demand under Basel III regulations – and it allows market participants to connect to the platform via existing, well established interfaces. The digital collateral registry layer enables delivery-versus-delivery (DvD) ownership transfers of baskets of securities, eliminating the operationally onerous requirement to move securities across fragmented securities settlement systems. The other layers are the leading Eurex Repo F7-trading system where transactions are executed, the participating custodians/tri-party agents where the securities are deposited and the TTP which connects the custodians/tri-party agents to the digital collateral registry. Continuing with a guiding principle of leveraging feedback from market participants to deliver valuable use cases, HQLAX and Deutsche Börse are already developing further functional enhancements and new business features, including digital collateral record re-use, intraday trades, delivery-versus-payment (DVP) trades and support for various types of pledges.

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany’s foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018, Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

About Deutsche Börse Deutsche Börse Group is one of the largest exchange organisations worldwide. It organises markets characterised by integrity, transparency and safety for investors who invest capital and for companies that raise capital – markets on which professional traders buy and sell equities, derivatives and other financial instruments according to clear rules and under strict supervision. Deutsche Börse Group, with its services and systems, ensures the functioning of these markets and a level playing field for all participants – worldwide.

About Credit Suisse Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as “Credit Suisse”). Our strategy builds on Credit Suisse's core strengths: its position as a leading wealth manager, its specialist investment banking capabilities and its strong presence in our home market of Switzerland. We seek to follow a balanced approach to wealth management, aiming to capitalize on both the large pool of wealth within mature markets as well as the significant growth in wealth in Asia Pacific and other emerging markets, while also serving key developed markets with an emphasis on Switzerland. Credit Suisse employs approximately 47,440 people. The registered shares (CSGN) of Credit Suisse AG's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

About HQLAX HQLAX is a financial technology innovation firm that specialises in delivering liquidity management and collateral management solutions for institutional clients in the global securities lending and repo markets. www.hqla-x.com.

About UBS UBS is the world’s largest global wealth manager. UBS provides financial advice and solutions to private, institutional and corporate clients worldwide, as well as private clients in Switzerland. Headquartered in Zurich, Switzerland, UBS is present in all major financial centers worldwide.

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An upward movement with below-average growth rates is more likely for Germany and the euro area in 2020 than a recession or a classically strong recovery. "Conflicting economic factors speak for such a bloodless upward movement," says Commerzbank's chief economist Jörg Krämer. Although loose monetary policy and a probable partial settlement in the trade dispute are creating the economy. At the same time, however, growth will be slowed by fears of a renewed flare-up of the trade war and by a lack of recovery in China. For the full year 2020, Commerzbank economists expect Germany to grow by 0.8 percent, which is only 0.4 percent adjusted for the unusually high number of working days.

"Our major concern - more than the economy - is the competitiveness of Germany as a production location. For two years the economy in this country has been growing at a weaker rate than the rest of the euro area," said Krämer. "The erosion of competitiveness over a number of years is beginning to show itself."

IN 2020 Commerzbank economists expect growth of 0.9 percent in the euro area. This is half a percentage point more than in Germany, but much less than in previous years. A slow economic upward movement and the continued failure to meet an inflation target of just under two per cent would probably have prompted former ECB President Mario Draghi to ease monetary policy again. But for the first time in a long time, the euro economy has grown stronger than the ECB expected. In addition, new ECB President Christine Lagarde maintains a consensual style of leadership. "In doubt, she maintains the status quo," Chief Economist Krämer said. He does not expect further easing of monetary policy for 2020, unlike in the past. The ECB will also continue to pursue the policy of negative interest rates for many years to come. The vast majority of the so-called "pigeons" in the Governing Council also support this.

In the short term the Dax could grow even further if Trump and the Chinese agreed economically. "But if it becomes clear in the course of the year that the trade conflict is not fundamentally resolved and the economy is only recovering little, the mood could tilt and the Dax could recede again. Our end-of-year target for the Dax is therefore deliberately conservative with 13,700 points," says Krämer. Commerzbank economists tend to expect higher prices for EUR-USD next year. The year-end forecast is 1.18.

*** Pressekontakt Bernd Reh +49 69 136-46971 bernd.reh@commerzbank.com

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018 Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

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Starting in November 2019, Commerzbank will publish sustainability ratings in its share votes, which will be delivered in partnership with the data analysis company Arabesque S-Ray GmbH. This means that institutional investors who obtain their equity research from Commerzbank will receive quantitative sustainability scores from Arabesque S-Ray in addition to the fundamental equity ratings prepared by the bank. Arabesque S-Ray evaluates how companies are compliant with the principles of the United Nations Global Compact and delivers a score on financially material environmental, social and governance (ESG) issues. This information will be published in addition to Commerzbank’s fundamental votes.

"We see an ever-increasing interest from institutional investors in ESG-topics. We are glad that the partnership with Arabesque S-Ray allows us to provide value-added input for our clients in this important area," says Ingo Schachel, Head of Fundamental Equity Research at Commerzbank. "Arabesque S-Ray is an exciting young company in this field. We are pleased to be the first cooperation partner in the field of fundamental equity analysis to establish a long-term partnership with Arabesque S-Ray".

Using ESG big data and machine learning models, Arabesque S-Ray evaluates the sustainability performance of over 7,200 companies globally. The technology systematically combines over 250 ESG metrics with news signals from over 30,000 sources across 170 countries. The quantitative approach of S-Ray enables the user to evaluate the impact of sustainability on a daily basis.

Andreas Feiner, CEO of Arabesque S-Ray GmbH, says: “We are delighted to be partnering with Commerzbank to provide our ESG data analysis and scores as part of its equity research for clients. Demand for sustainability data from institutional investors continues to grow rapidly, leading to a sea-change in ESG practices within portfolio management”.

"We were convinced by the high data and analysis quality of Arabesque S-Ray. We are confident that S-Ray can set a new standard in data quality and analysis methods," continues Ingo Schachel.

Commerzbank's equity research evaluates around 200 German and European equities and reaches numerous institutional investors in Europe and North America. In the Extel surveys of 14,000 fund managers, Commerzbank Research has regularly ranked first or second in the category "Best Brokerage Firm: Germany".

*** Press contact Christoph Ott +49 69 136 24431

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018 Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

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Commerzbank AG welcomes the joint statement by the Board of Managing Directors and the Supervisory Board of comdirect relating to the voluntary public acquisition offer to comdirect shareholders published on 30 October 2019. In the statement published today, the Board of Managing Directors and the Supervisory Board of comdirect unanimously confirm the appropriateness of the offer price. The statement is based on two external fairness opinions carried out by Barclays and Deloitte on behalf of comdirect.

“We welcome the joint statement issued by the Board of Managing Directors and the Supervisory Board of comdirect. comdirect has assessed our offer price as financially appropriate. Now is the right time to accept our offer,” commented Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank.

On 20 September 2019, Commerzbank announced its intention to submit a voluntary public acquisition offer for all outstanding shares in comdirect as part of the strategic update Commerzbank 5.0. The offer price is €11.44 per share in cash. This corresponds to a premium of 25 percent on the Xetra closing price of the comdirect share on 19 September 2019, the day before publication of the first announcement of the offer plans. The business models of the two companies are becoming ever more closely aligned and this is why comdirect shall be integrated into Commerzbank to become part of a strong, innovative multichannel bank. In addition to the strategic advantages of a merger, Commerzbank will be able to realise significant potential synergies from the integration.

On 30 October, Commerzbank published the offer document relating to the voluntary public acquisition offer for all outstanding shares of comdirect bank Aktiengesellschaft. The offer period for the acquisition offer runs until 6 December 2019 and the completion is subject to a minimum acceptance threshold of 90 per cent (including the comdirect shares already held by Commerzbank). The offer document and all other information on the offer is published on the following website: www.commerzbank-offer.com.

*** Press contact Nils Happich +49 69 136-80529 Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018 Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

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At a press conference in Shanghai today, Commerzbank announced its signing of the Green Investment Principles (GIP) for the Belt and Road Initiative (BRI).

The GIP, jointly developed by China’s Green Finance Committee (GFC) and the City of London Corporation‘s Green Finance Initiative (GFI), in partnership with several other international institutions including the Belt and Road Bankers Roundtable (BRBR), IFC, World Economic Forum and Paulson Institute, aims to incorporate low-carbon and sustainable development into projects in BRI countries, which represent approximately 40% of the World’s total land area and 55% of total CO2 emissions.

Commerzbank settles more than 30% of Germany’s foreign trade business and supports its corporate and institutional clients along the Belt and Road Initiative (BRI). Nick Johnston, Regional Board Member Asia at Commerzbank, commented: “The Green Investment Principles serve as an important framework for companies and the investment community to promote green investment along the BRI. The scale of BRI calls for significant emphasis on ensuring institutions like ourselves work together to find ways to maximise the implementation of green, low-carbon and climate-resilience investment across the numerous vast and smaller projects alike”.

Dr. Ma Jun, Chairman of China Green Finance Committee said: “The Belt and Road Initiatives’ ambitious infrastructure and economic development plans need to be matched by equally ambitious sustainability commitments. Accordingly, the Green Investment Principles ensure that environmental friendliness, climate resilience, and social inclusiveness are built into new investment projects. Commerzbank is a proven leader in promoting sustainability across its business and to its clients, making its participation in the GIP extremely valuable to the initiative’s efforts to achieve its goal”.

Sustainability has been an integral part of Commerzbank’s corporate management for many years. The Bank carried out its first financing of renewable energy projects in the late 1980s and today it is one of the leading finance providers for the renewable energy sector in Germany and Europe. For more than a decade the Bank has been supporting its clients in both the preparation and placing of sustainable bonds and in October 2018 successfully issued its first own green bond. Recently Commerzbank officially reiterated its commitment to 2015 Paris Climate Agreement, as one of the founding signatories of the United Nations-backed Principles for Responsible Banking.

Commerzbank implements a number of initiatives and services across its business globally to promote an inclusive and sustainable economy. It supports clients with their financial ventures abroad, spanning its trade financing, M&A, Capital Market products and funding solutions. In a growing trend of Euro-dominated bond issuance from Chinese issuers, the Bank recently acted as a bookrunner for the Ministry of Finance of the People’s Republic of China’s Euro-denominated triple-tranche senior bond offering. The bond mandate was highly successful in Europe with majority of the participating investors coming from Europe.

Commerzbank has a presence in China’s onshore financial centres as well as the region’s offshore hubs. The Bank has been accompanying and financing global trade since 1870 and has been present in Asia for more than 50 years. China and Germany have long enjoyed strong trading connections, with the New Silk Road ending in the inner harbour of Duisburg in Germany, the world’s largest mainland port in the heart of industrial Germany, where many of Commerzbank’s core clients are located.

***

Press contact Claire Tappenden +44 20 7475 5161

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018 Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

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Commerzbank increased its operating profit on a year-on-year basis in the third quarter of 2019. Higher revenues, reduced costs and a low risk result contributed to this. In the Private and Small Business Customers segment, the Bank gained 141,000 new customers and grew its business volumes. The Corporate Clients segment recorded a third-quarter result below the previous year, but generated higher revenues in client business. The segment saw a significant improvement in its result compared to the second quarter, due in part to the lower drag from the risk result. The Bank cut its costs further: year-to-date it achieved savings of around €130 million compared to 2018 despite a rise in compulsory contributions.

In September, the Bank presented its “Commerzbank 5.0” strategy and kicked-off its implementation. The evolved strategy builds on the proven foundations of the past few years. The focus will continue to be on growth in the core areas of business with private, business and corporate customers, cost reduction and digitalisation. The aim is to achieve a significant increase in value in the Bank’s core business areas. In order to implement its growth and investment programme at a faster pace and self-financed, the Bank is seeking to sell mBank in Poland.

One first milestone in the implementation of Commerzbank 5.0 is the planned integration of comdirect, with the aim of pooling digital competencies and enhancing synergies in innovation and costs. At the end of October, the Bank took the first step in this process and made an acquisition offer for all outstanding shares of its direct bank subsidiary. The offer of €11.44 per share in cash is subject to achievement of a minimum acceptance threshold of 90 % and ends on 6 December 2019. After that, comdirect would be merged into Commerzbank by means of a merger-law squeeze-out. If this is not successful, Commerzbank intends to take the steps required for a direct merger of comdirect into Commerzbank. In this case, the shareholders of comdirect would receive Commerzbank shares in exchange for their shares following consent granted by the general meetings of both companies. The exchange ratio would be determined on the basis of expert reports on the value of comdirect and Commerzbank.

“Commerzbank 5.0 is the logical next step in our strategy. We have already started the implementation and are working hard to reach our milestones quickly. We deliberately set long-term success above short-term return targets. Wishful thinking is not helpful in the face of low interest rates, an economic slowdown and geopolitical uncertainties”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank.

The Bank increased Group revenues by 2 % year-on-year in the third quarter to €2,183 million (Q3 2018: €2,140 million). The figure after adjustment for exceptional items was €2,170 million (Q3 2018: €2,122 million). Net interest income was increased by 2.7% as a result of this growth, while net commission income remained almost stable. Operating costs were trimmed to €1,560 million in the third quarter (Q3 2018: €1,607 million). Consequently, the Bank reduced its cost base to €5.1 billion in the first nine months (first nine months of 2018: €5.2 billion). The successful internalisation of previously outsourced activities was a contributing factor here. Overall the significant reduction in operating expenses by around €250 million outweighed the rise in compulsory contributions and in personnel costs. The risk result was down year-on-year at minus €114 million in the third quarter (Q3 2018: minus €133 million) and the risk indicators remained stable overall. The NPL ratio, at 0.8%, remained at a very low level.

In total, the Bank increased its operating profit to €448 million in the third quarter (Q3 2018: €346 million) and its pre-tax profit to €440 million (Q3 2018: €331 million). The net result was also up – from €218 million in the third quarter of 2018 to €294 million. The net Return on Tangible Equity (RoTE), taking into account the interest coupon for the Additional Tier 1 capital (AT 1), stood at 4.4% (Q3 2018: 3.5%). The Bank had strengthened its capital base at the beginning of July with its inaugural AT1 issue in the amount of US$ 1 billion.

The Common Equity Tier 1 (CET 1) ratio was down slightly in the third quarter, standing at 12.8% at the end of September (end of June 2019: 12.9%). The ratio already includes a dividend accrual in line with the pay-out ratio for 2018. The slight fall in the CET 1 ratio was mainly attributable to the increase in risk-weighted assets (RWA) in connection with the regulatory review of internal risk models (Targeted Review of Internal Models, TRIM). The Bank offset almost the whole of the TRIM effect in the third quarter through capital accumulation. RWA totalled €189 billion at the end of September (end of June 2019: €187 billion, end of September 2018: €178 billion). While RWA for credit risks rose by €3 billion after effects from TRIM and mitigating factors, RWA for market and operational risks remained largely unchanged. The leverage ratio stood at 4.7% at the end of September (end of June 2019: 4.5%). Total assets came to €513 billion (end of September 2018: €518 billion).

“In the third quarter we achieved a good result. This is based on higher revenues, reduced costs and a low risk result”, said Stephan Engels, Chief Financial Officer of Commerzbank. “We continue to grow our customer and asset base, thus tackling undiminished margin pressure. Looking forward, we substantially invest in the Bank’s digitalisation and further cost reduction”.

Development of the segments

The Private and Small Business Customers (PSBC) segment continued its growth in customer numbers and assets. In the third quarter, the Bank gained a net 141,000 new customers in Germany (Q3 2018: 117,000), two-thirds of these at Commerzbank and one-third at comdirect. These new customers count towards the target of more than 1 million new customers by 2023. Volumes in loans and securities grew by €4 billion in the third quarter and amounted to €251 billion. The volume of the mortgage lending portfolio expanded by a further €1.1 billion to €79.2 billion over the same period, with an increased margin in new business.

Revenues after adjustment for non-recurring items were higher year-on-year in the third quarter at €1,243 million (Q3 2018: €1,226 million). This was helped by the successful growth in customers and assets, and the good performance of the subsidiaries. The segment’s total revenues in the third quarter were also higher than the previous year’s, at €1,327 million (Q3 2018: €1,204 million). This figure includes positive and negative exceptional items amounting to €84 million. The negative side included the ongoing purchase price allocation write-downs in connection with the consumer finance joint venture, and the positive side the proceeds from the sale of ebase.

The segment made further progress on the cost side, reducing its operating costs to €873 million (Q3 2018: €897 million). The third-quarter risk result came out higher year-on-year at minus €87 million (Q3 2018: minus €69 million), though on a nine-month basis it was nearly on a par with 2018 at minus €187 million (first nine months 2018: minus €184 million). The segment increased its operating profit to a total of €315 million in the third quarter (Q3 2018: €186 million).

The Corporate Clients segment recorded resilient client business in the third quarter. The corporate loan book expanded by €1 billion to €89 billion. Based on higher loan volumes and good performance in capital market business and trade finance, the International Corporates and Financial Institutions divisions increased revenues. The Mittelstand division was able to compensate for the margin pressure and to keep earnings stable through growth. Revenues from customer business were offset by a lack of contributions from legacy portfolios and negative valuation effects. As a result, revenues for the third quarter came in at €782 million and were lower than in the same quarter of the previous year (Q3 2018: €855 million).

The segment was able to further cut its operating costs in the third quarter, to €596 million (Q3 2018: €617 million). The risk result was lower than in Q2, which had been affected by single cases, and stood at minus €31 million (Q3 2018: minus €61 million; Q2 2019: minus €127 million). On a nine-month basis, the drag from the risk result was higher in 2019 than in 2018, on account of lower write-backs of provisions. In total, the segment generated an operating profit of €146 million in the third quarter (Q3 2018: €175 million)

Outlook

As was already communicated in the strategy update at the end of September, the Bank has adjusted its outlook for financial year 2019. The main reason for the adjustment was the uncertain macroeconomic environment, in particular the worsening global trade conflicts. The further monetary policy easing announced by the European Central Bank in September and the resulting pressure on margins will also have a negative impact on earnings. Commerzbank therefore no longer expects to achieve its target of slightly higher Group income compared with the previous year. As noted in the strategy update, the generally difficult macroeconomic and business policy conditions and the current interest rate environment form the basis for the Bank’s financial planning. Also in consideration of the fact that the Bank anticipates a significantly higher tax rate in the fourth quarter, consolidated net income for the 2019 financial year is expected to be lower than in the previous year. The Bank is targeting a Common Equity Tier 1 ratio of at least 12.75% by the end of the year. The cost base should remain below €6.8 billion, while the drag from the risk result is expected to be at least €550 million. The Bank is planning to maintain a pay-out ratio for financial year 2019 at a level comparable to 2018.

*** Press contact Nils Happich +49 69 136-80529 Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, Comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small business customers nationwide and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018 Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

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Today, Commerzbank AG published the offer document relating to the voluntary public acquisition offer for all the outstanding shares of comdirect bank Aktiengesellschaft (“comdirect”).

Commerzbank already holds around 82 percent of the shares in comdirect. The other 18 per cent are in free float. The aim is to merge comdirect into Commerzbank so as to draw on comdirect’s strong digital expertise and innovative capability for the benefit of all Group customers in future. The integration will also give comdirect the opportunity to scale up its offering through Commerzbank.

Commerzbank is offering comdirect’s shareholders €11.44 per share in cash. This corresponds to a 25 per cent premium on the Xetra closing price of the comdirect share on 19 September 2019, the day before Commerzbank published the ad-hoc announcement on its draft strategy “Commerzbank 5.0”. The offer period for the acquisition offer runs until 6 December 2019 and the completion is subject to a minimum acceptance threshold of 90 percent (including the comdirect shares already held by Commerzbank).

Once the acceptance threshold is reached, it would then be possible to integrate comdirect into Commerzbank by way of a squeeze-out under merger law. This is Commerzbank’s preferred option. If this is not successful, Commerzbank intends to take the steps required for a direct merger of comdirect into Commerzbank. In this case, the shareholders of comdirect would receive Commerzbank shares in exchange for their shares following consent granted by the general meetings of both companies. The exchange ratio would be determined on the basis of expert reports on the value of comdirect and Commerzbank.

Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank: “We are making an attractive offer to comdirect shareholders. During the past ten years, the share of comdirect was generally traded below the offer price. From our perspective, the fact that the comdirect share was recently quoted above the offer price is due to speculation about a potential increase in the offer. However, since we are going to keep our offer where it is, I am recommending that comdirect shareholders should accept it. This is because there is the risk of a potential price loss for the comdirect share if our offer fails. Moreover, there is no risk of shareholders who tender their shares ending up in a worse position by comparison with cash compensation in a squeeze-out”.

Commerzbank expects that the cash compensation to be determined for the squeeze-out will not exceed the offer price of €11.44 per share. If, contrary to expectations, the cash compensation exceeds the offer price after all, Commerzbank will retrospectively compensate all those shareholders who tendered their shares within the framework of the offer and pay them the difference.

Since it was founded in 1994, comdirect has set benchmarks in online banking with innovative products, services, and advisory capabilities. Today, it is one of the leading direct banks and one of the leading online brokers in Germany. The business models of the two companies are becoming ever more closely aligned and this is why comdirect shall be integrated into Commerzbank to become part of a strong, innovative multichannel bank. In addition to the strategic advantages, Commerzbank will be able to realise significant potential synergies from the integration.

Customers of comdirect will still have access to the high-quality products and services and will be able to benefit from Commerzbank’s branch network. In return, Commerzbank customers will gain access to comdirect’s excellent brokerage offering, which will be continued under the existing product brand.

***

Press contact

Nils Happich +49 69 136-80529

Maurice Farrouh +49 69 136-21947

Erik Nebel +49 69 136-44986

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in nearly 50 countries. The Bank’s two business segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services precisely tailored to their customers’ needs. Commerzbank transacts approximately 30% of Germany's foreign trade and is the market leader in German corporate banking. The Bank offers its sector expertise to its corporate clients in Germany and abroad and is a leading provider of capital market products. Its subsidiaries, comdirect in Germany and mBank in Poland, are two of the world’s most innovative online banks. With approximately 800 branches going forward, Commerzbank has one of the densest branch networks in Germany. The Bank serves more than 11 million private and small-business customers in Germany and over 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. Its Polish subsidiary mBank S.A. has around 5.6 million private and corporate customers, predominantly in Poland, but also in the Czech Republic and Slovakia. In 2018, Commerzbank generated gross revenues of €8.6 billion with approximately 49,000 employees.

***

Disclaimer and Forward-Looking Statement

This release is neither an offer to purchase nor a solicitation of an offer to sell comdirect bank Aktiengesellschaft shares or any other security. The offer document, the terms and conditions contained therein shall have sole relevance in respect to the offer. Investors and holders of shares in comdirect bank Aktiengesellschaft are advised to read the relevant documents regarding the takeover offer to be published by Commerzbank Inlandsbanken Holding GmbH as they contain important information.

Commerzbank, Deutsche Börse and MEAG, the Asset Manager of Munich Re and ERGO, have reached a further step in examining the scope of distributed ledger technology in post-trade services. The partners successfully completed the settlement of a legally binding secondary market securities transaction via tokens; Commerzbank further used the tokenized cash as collateral at Eurex Clearing as Central Counterparty. The prototype scenario reflected a delivery-versus-payment transaction and the transfer of tokenized cash, aiming on exploring the potential of various comprehensive services leveraging distributed ledger technology.

For this transaction, digital tokens were generated using both commercial bank money (cash tokens) and securities (securities tokens). The simultaneous swap of the tokens as final and binding settlement was enabled by using distributed ledger technology. As a further use case for cash tokens, Commerzbank provided the tokenized cash credits for coverage of margin requirements to Eurex Clearing as Central Counterparty as part of their operative risk management.

Eurex Clearing acted as tokenizer of cash, MEAG as the buyer of securities and Commerzbank as the seller and the custodian of the securities tokens. Main incubator, Commerzbank’s research and development unit, provided the blockchain platform.

The underlying technology and the legal concept were jointly developed by Commerzbank and Deutsche Börse. As a first step of their collaboration on DLT, Commerzbank and Deutsche Börse already completed a legally binding repo transaction earlier this year.

“This is an important joint effort in further exploring the potential of distributed ledger technology for the financial services industry. By combining multiple use cases within these transactions, we have broadened the scope of applications where the market can benefit from possible standards in this new technology. Our goal is to foster our role as financial infrastructure provider of choice”., stated Jens Hachmeister, Head of New Markets at Deutsche Börse Group.

“After our first collaboration with Deutsche Börse in March 2019, we are pleased to jointly reach a further milestone in using DLT for post-trade-services in capital markets. We will continue to work on these topics to provide our clients with market-ready solutions”, said Benjamin Duve, Head of Custody & Direct Market Access, Commerzbank AG.

Dr. Frank Wellhöfer, member of the board of management at MEAG: “For us as investor, distributed ledger technology has a significant potential to increase efficiency of operations. By reducing the need for intermediaries, the transaction process of securities is going to accelerate furthermore. The involvement of tokens representing securities and money will facilitate network efficiencies and build a foundation for the creation of standards. This is important for the buy side as standards lead to broader market acceptance and thus create liquidity on DLT platforms in general”.

The concept of this test transaction has been shared with regulatory and oversight authorities. Further productive introduction remains subject to their approval and the compliance with regulatory requirements and applicable policies. The partners aim to further develop financial markets infrastructure and services for the future, first steps to establish a respective framework have recently been initiated by the German Federal Government.

*** Press contacts:

Commerzbank Josefin Altrichter Tel.: +49 69 136 80209, e-mail: JosefinMarie.Altrichter@commerzbank.com

Deutsche Börse Group Leticia Adam, Tel.: +49 69 211 12 766, e-mail: leticia.adam@deutsche-boerse.com

MEAG Dr. Josef Wild, Tel.: +49 89 2489 2072, e-mail: jwild@meag.com

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small-Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

About Deutsche Börse Deutsche Börse Group is one of the largest exchanges worldwide. It operates markets characterised by integrity, transparency and security for investors wishing to invest capital and for companies wishing to raise capital. On these markets, professional traders buy and sell shares, derivatives and other financial instruments in accordance with clear rules and under strict supervision. Deutsche Börse Group’s services and systems ensure that these markets can operate and all participants have equal opportunities – worldwide.

About MEAG MEAG is the asset management company of Munich Re and ERGO. MEAG has locations in Europe, Asia, and North America, offering its vast expertise to institutional investors and private customers. MEAG manages total investments currently valued at approximately EUR 270 bn.

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This press release is available only in German language.

The pilot project objectives are to build a digital end-to-end trade finance and supply chain finance solution on a blockchain platform. Marco Polo offers to the network members a set of Application Programming Interfaces (APIs) for direct interaction with ERP systems, allowing international trade participants to make payments, create irrevocable payment obligations and discount accounts receivable within a unified transparent system of interaction with partners.

“We launched our first distributed ledger technology in trade finance as early as 2017. Since then, corporate blockchain solutions have been considerably elaborated, and earned our clients’ confidence and proved their applicability to real business processes. Projects such as Marco Polo create added value for clients ensuring more international trade transparency and manageability thanks to integrated bank payment, finance and discount instruments”, said Dina Merkulova, Head of Trade Finance at Alfa-Bank.

Current corporate purchase and supply processes are too cumbersome due to the execution and exchange of multiple paper documents, while banking instruments are not integrated into clients’ business processes. The Marco Polo network based on R3 Corda allows Alfa-Bank to offer its clients a wide range of international trade finance solutions and seamless integration into the global trade ecosystem.

“Our decision to take part in the pilot project was prompted by our intention to optimize the process of interaction with partners based on blockchain technology. We expect Marco Polo to ensure seamless collaboration of several sides engaged in international trade operations (banks, suppliers, insurance companies, etc.) with a flexible access to working capital financing instruments to the parties”, said on behalf of NLMK Director for Treasury, Anna Sokolova.

“Our international corporates show continuous interest in piloting the Marco Polo Payment Commitment together with us and banks of our global network, like Alfa-Bank. This new instrument, which is provided upon digital processing and matching of trade data in the Marco Polo network, meets our customers’ growing demand for increased speed of transaction and transparency, optimised financing, enhanced working capital management and possible integration of ERP systems”, said Enno-Burghard Weitzel, Commerzbank’s Global Head of Trade Finance Products.

“Integrated working capital solutions directly related to the contract, issued invoices and shipping documents definitely benefit all the parties, and our experience with Marco Polo demonstrates that core processes can really be streamlined”, added Christian Greving, Cash Coordinator Treasury, Vesuvius GmbH.

International trade is a multilateral process involving exporters, importers, logistics services providers, insurers, customs, banks and many other parties. Long-term blockchain-based solutions will make it possible to totally abandon the traditional practice of isolated paper documents mailing by post, reduce overhead cost and simplify business processes by connecting various stakeholders of trade transactions to the same network and sharing data.

*** Press contact Anastasia Glukhova T +7 (0) 495 783 53 79 M +7 (0) 905 594 73 44 AGlukhova@alfabank.ru

Stefanie Riedel T +49 (0) 69 136 57157 M +49 (0) 170 573 78 56 stefanie.riedel@commerzbank.com

*** About Alfa-Bank Founded in 1990, Alfa-Bank is a full-service bank operating in most sectors of the financial market, including retail and corporate lending, investment banking, leasing, factoring and trade finance. Alfa-Bank is Russia’s largest financial institution in terms of total assets, total equity, deposit and loan portfolios. According to IFRS financial statements for the first six months of 2019, the Alfa Banking Group, which comprises ABH Financial, AO “Alfa-Bank”, as well as its subsidiary financial companies, had total assets of $52.1 billion, gross loans of $34.7 billion, and total equity of $7.7 billion. Net profit for the first half of 2019 amounted to $249 million. As of 30 June 2019, Alfa-Bank was servicing more than 640,000 corporate clients and 16.5 mln individuals; 791 branches have been opened in Moscow, Russian regions and abroad, including a subsidiary bank in the Netherlands and finance subsidiary companies in the UK and Cyprus.

About NLMK Group NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines. NLMK operates production facilities in Russia, Europe and the United States. The Company’s steel production capacity exceeds 17 million tons per year. NLMK has the most competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 12M 2018, the Company generated $12 billion in revenue and $3.6 billion in EBITDA. Net Debt/EBITDA stood at 0.25x. The Company has investment grade credit ratings from S&P, Moody’s, Fitch and Expert RA. NLMK’s ordinary shares with a 19% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital please follow the link https://nlmk.com. For NLMK Group’s photos and corporate videos, please visit https://media.nlmk.com/ru/.

About Vesuvius GmbH Vesuvius GmbH operates in Germany and is a part of Vesuvius plc.

Vesuvius is a global leader in molten metal flow engineering and technology principally serving the steel and foundry industries. In 2018 our revenues were £1.8bn. We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to improve their manufacturing processes, enhance product quality and reduce costs. These include flow control solutions, advanced refractories and other consumable products and increasingly, related technical services including data capture to give our customers the insights they need. Our worldwide presence enables us to serve our customers through a network of low-cost manufacturing plants located close to their own facilities, and embed our industry experts within their operations, who are all supported by our global technology centers. Vesuvius’ core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and global reach, all of which facilitate the expansion of our addressable markets. Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investment whilst providing each of our employees with a safe workplace where he or she is recognised, developed and properly rewarded.

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small-Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

Further Information https://www.marcopolo.finance/ https://www.r3.com/ https://tradeix.com/

*** 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.

The Supervisory Board of Commerzbank has appointed Sabine Schmittroth to the Board of Managing Directors with responsibility for Human Resources with effect from 1 January 2020. She takes over from Dr. Bettina Orlopp, who is currently in charge of Compliance, Human Resources, Legal and Group Customer Process & Data Management.

Bettina Orlopp will succeed Stephan Engels as Chief Financial Officer of Commerzbank by 31 March 2020 the latest. She will also be in charge of Tax, Investor Relations and Treasury. Sabine Schmittroth, who will initially take charge of Human Resources and Group Customer Process & Data Management with effect from 1 January 2020, will additionally take on responsibility for Compliance at the latest by 31 March 2020. The Legal department will then be headed by CEO Martin Zielke. Sabine Schmittroth’s appointment is subject to the approval of the regulatory authorities.

Stefan Schmittmann, Chairman of the Supervisory Board of Commerzbank: “I am delighted that, with the appointment of Sabine Schmittroth, we have found an excellent successor to Bettina Orlopp as Director of Human Resources. In the course of her career at Commerzbank and Dresdner Bank, Sabine Schmittroth has made a significant contribution to the Bank in various management positions in the operating segments and at head office. Meanwhile, with Bettina Orlopp, Commerzbank is gaining an excellent Chief Financial Officer from its own ranks. As a Board member she has done outstanding work on the Bank’s personnel reorganisation in the context of Commerzbank 4.0. She has also been responsible for improving the Bank's compliance systems and for the successful conclusion of the review by the US monitor. With these appointments and that of Roland Boekhout as the Board member for Corporate Clients, the Commerzbank Board of Managing Directors is in fine shape again”.

Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank: “In the three years in which we have worked together on the Board, Bettina Orlopp has been in charge of three areas that are fundamental to the future of the Bank. She has successfully and prudently mastered many difficult issues. Bettina Orlopp possesses excellent analytical skills and is a strong communicator who, as Head of Strategy, has already shown in-depth experience with the Bank’s financials. This made her the obvious choice for the role of CFO at Commerzbank. She will also be taking charge of Treasury, assuming operational responsibility for this all-important part of the Bank. I wish Bettina Orlopp continued success as she embarks on her new role. I am also delighted to welcome Sabine Schmittroth, a highly valued and successful colleague of many years, to the Board of Commerzbank. The successful customer growth in retail banking is also attributable to her. She has also steered a number of transformation and change processes in the private customer segment. In all this she has always championed personnel development, which is her big passion. She is ideally equipped, as she embarks on her new role, to address the rapidly changing demands placed on staff by digitalisation and regulation”.

Dr. Bettina Orlopp (49) is the Board member currently responsible for Compliance, Human Resources and Legal. In this role, she has brought Commerzbank’s Compliance department in line with the latest regulatory standards, was in charge of the implementation of Commerzbank 4.0 and the associated personnel planning, and introduced a unified remuneration system for the Bank. Prior to that she was the divisional Board Member for Group strategy, with responsibilities including mergers and acquisitions. Before joining Commerzbank, Bettina Orlopp was a partner at McKinsey and Company, specialising in banks and insurance companies. Orlopp studied ? HYPERLINK "https://de.wikipedia.org/wiki/Betriebswirtschaftslehre" ?business management? and gained her doctorate at the ? HYPERLINK "https://de.wikipedia.org/wiki/Universität_Regensburg" \o "University of Regensburg" ?University of Regensburg?.

Sabine Schmittroth (54) is currently the Divisional Board member for Private Customers at Commerzbank and is responsible for central functions in the Private and Small Business Customers segment. In this role she has played a key part, over the last few years, in the reorganization of the retail banking business and the compliant implementation of regulatory requirements. She has held various managerial positions in central functions and operating segments at Dresdner Bank and Commerzbank in, including management spokesperson at Commerz Direktservice, Commerzbank’s client centre subsidiary. She also has experience of working as an instructor and personnel developer in Dresdner Bank's Human Resources department and holds a coaching qualification from the European Business School. She began her career as a trainee banker at Dresdner Bank.

*** Press contact Margarita Thiel +49 69 136-46646 Nils Happich +49 69 136-80529

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 coun?tries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide

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Following the ad-hoc release of the cornerstones of the new strategic programme “Commerzbank 5.0” on 20 September 2019, the Board of Managing Directors and the Supervisory Board have discussed and approved the new programme. With its new strategy, the Bank is investing in technological innovation and into its core business. This will enable the Bank to accelerate its digitalisation, generate growth and increase efficiency.

In the Private and Small Business Customers segment, Commerzbank is investing strongly into its mobile banking franchise, keeping the branch network as a core pillar of its offering. With around 800 branches, Commerzbank will continue to have a strong nationwide presence. The Bank sees revenue potential through the enhanced use of data, which will enable the provision of individually tailored products to clients. Commerzbank is also planning to introduce a new pricing strategy. Through the planned integration of comdirect the Bank will bundle its digital expertise.

In the Corporate Clients segment, the Bank will further strengthen its market presence with Mittelstand-clients, or SMEs. The further digitalisation and increased platform efficiency is expected to create greater scope for sales and advisory. In Germany alone, the Bank intends to increase its distribution capability by adding more than 150 new staff. The focus will lie on leveraging further business opportunities with existing clients and on increasing capital efficiency.

The Bank’s strategic programme foresees total investments of around €1.6 billion in digitalisation and further cost reductions. This will include additional investments of €750 million in digitalisation, IT infrastructure, and growth. The remaining €850 million will consist of restructuring costs for the planned headcount reduction of a gross 4,300 and net 2,300 full-time positions, and for the announced changes to the branch network. The planned divestment of the majority shareholding in mBank S.A. (“mBank”) in Poland is expected to generate the financial resources enabling a faster implementation of the strategy.

“Commerzbank 5.0 will put the Bank on a sustainable footing. We want it to continue to be successful with clients even in a deteriorating market environment. This means we are significantly reducing our cost base whilst making major investments in our distribution capability as well as the faster digitalisation of the Bank. We want to convince customers with a superior product and service offering and be their first choice”, commented Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank AG.

“As part of Commerzbank 5.0, we are planning to invest around €1.6 billion in digitalisation and in further improving our cost efficiency. The planned sale of mBank will result in a significant reduction of risk-weighted assets and release capital to enable us to implement our strategy faster. In a market environment that looks set to deteriorate further, we have set ourselves realistic return targets,” commented Chief Financial Officer Stephan Engels.

Private and Small-Business Customers: Expansion of mobile banking while maintaining a strong branch presence

In the Private and Small Business Customers segment, Commerzbank is investing strongly into its mobile banking franchise under its mobile first strategy. Today, 1.2 million out of a total of 1.7 million daily customer contacts already take place through the mobile and online channels. As a result of the expected increase in mobile usage, Commerzbank wants to gain significantly more data points and use them to tap additional business potential. The use of algorithms will help the Bank to design products and services that are more precisely tailored to the individual needs of customers. At the same time, the enhanced use of algorithms and data should increase the efficiency of new customer acquisition.

After growing strongly over recent years and increasing its active customer base by a net 1.3 million customers, Commerzbank sees measured growth in the Private and Small-Business Customers segment. By the end of 2023, the Bank wants to win more than 1 million new customers in Germany. Following the sale of ebase with 1 million customers and the pending closure of largely inactive customer accounts amounting to a further 1 million, the Bank will continue its growth on an active customer base of 11.1 million.

Furthermore, Commerzbank is aiming to systematically tap additional revenue potential with existing customers. The Bank is introducing a new pricing strategy, thereby giving customers more choice of service and price options. In concrete terms, the basic offering will be complemented by a modular offering. In future, under a fair use policy, inactivity will also be considered in the pricing models for otherwise free basic products.

Commerzbank will retain a nationwide presence in Germany with around 800 branches. It plans to incrementally close around 200 branches and move to a mix of branch formats that is in line with changing customer requirements. The Bank will thereby adapt its branch network to the expected changes in branch utilisation in Germany due to the greater use of digital channels. The Bank’s real estate expertise will be bundled in 50 new, regional real estate centres.

Bundling of digital expertise through planned integration of comdirect

Business with private and small-business customers will also be strengthened by the planned integration of comdirect into Commerzbank. Commerzbank intends to leverage the high level of digital expertise of comdirect for the entire Group. Comdirect will become part of a strong, innovative multichannel bank and will benefit from economies of scale and opportunities for growth within the Group.

Since its foundation in 1994, comdirect has set benchmarks in online banking with innovative products, services, and advisory. In future, Commerzbank intends to make this acknowledged expertise available to all its customers. Customers of comdirect will keep the service offerings they are used to, while also benefitting from Commerzbank’s branch presence. In return, Commerzbank would be able to provide its customers with access to the outstanding brokerage offering of comdirect, which will be continued under the same product brand.

Corporate Clients: Strengthening of distribution and increased efficiency

In the Corporate Clients segment, Commerzbank is consistently expanding its position as the leading German bank for SMEs (“Mittelstand”). The emphasis is clearly on striking a balance between additional business, risk appetite, and capital efficiency. Furthermore, the Bank is focussing on enhancing its distribution and platform efficiency.

While continuing to grow in customer numbers, Commerzbank intends to make better use of the potential offered by existing customer relationships. It is therefore strengthening its distribution capabilities with more than 150 new front office staff in Germany alone. Distribution and advisory in selected European markets will also be increased. Furthermore, additional digitalisation and the targeted improvement in platform efficiency will open up further scope for sales. This, in conjunction with the increase in personnel, will enable an even higher intensity of client coverage and advice.

Commerzbank is also expanding its proven sector approach. In future, more than 500 corporate clients will be covered this way in Germany and in selected Eurozone countries, compared to around 100 currently. Experience since the launch of this approach in 2016 shows that supporting clients with comprehensive sector expertise also contributes to making existing customer relationships more profitable.

The efficiency of the corporate banking platform is also being enhanced. The Bank is aiming to consolidate its platforms. In future, as many international transactions as possible are to be processed on the German IT platform. In addition, greater platform utilisation is anticipated as a result of new business. Capital efficiency and cost discipline will be relevant for any additional growth to ensure an appropriate return on capital. In addition, the Bank is planning to support its growth trajectory by further strengthening its credit risk expertise.

In recent years, the incumbent Board Member responsible for the segment, Michael Reuther, has repositioned the Corporate Client segment in a challenging environment and successfully advanced the integration of corporate banking and the capital markets business. The designated Board Member for Corporate Clients, Roland Boekhout, has a long track record in Germany and in European markets that will enable him to continue to develop this strong agenda.

Social responsibility even more firmly embedded in the business model in future

The foundation for the economic success of Commerzbank is and always will be the social acceptance of its approach to business. As a responsible bank, Commerzbank has a longstanding position on controversial topics such as weapons, environmentally damaging energy sources and basic food speculation. Acting responsibly also includes careful handling of customer data and high data security.

However, the Bank intends to adopt an even more ambitious approach to sustainability and environmental issues in future, and it will work even more proactively to support the achievement of the Paris climate targets. Commerzbank’s operations are already climate-neutral. Also, it was recently one of the world’s first signatories to the UN Principles for Responsible Banking. This rigorous approach will also generate business opportunities. In future, Commerzbank will also help its customers achieve enhanced sustainability with a greener product offering. As of this week, private customers are able to take out green mortgages. In the corporate clients business, Commerzbank will gear its credit portfolio more towards sustainability criteria.

Release of equity through planned disposal of mBank; acquisition offer to shareholders of comdirect bank

On 20 September 2019, Commerzbank announced that the Bank was selling its majority shareholding in mBank S.A. (“mBank”) in Poland. This will allow the Bank to generate the financial resources enabling a faster implementation of its strategy and the associated investments. The sale will result in a marked reduction in risk-weighted assets by around €17 billion and the release of equity capital at Commerzbank. The transaction is subject to regulatory approvals.

In conjunction with the integration of comdirect, Commerzbank also intends to submit a voluntary public acquisition offer for all outstanding shares in comdirect. The offer price is €11,44 per share in cash. This corresponds to a premium of 25 per cent on the unaffected Xetra closing price of the Comdirect share on 19 September 2019, the day before publication of the ad hoc announcement on the Commerzbank draft strategy 5.0. Commerzbank already holds a stake of 82 per cent in comdirect. Details of the planned acquisition offer can be downloaded at www.commerzbank-offer.com.

Adjusted outlook for 2019 – Additional growth in customers, assets, and revenues over the medium term

Over the course of 2019, the market environment has continued to deteriorate further. This has been particularly evident in the corporate clients business. The Bank is therefore no longer anticipating a rise in underlying revenues for the year 2019.

The further development of the strategy is intended to allow the Bank to achieve additional growth in customers and assets, and higher revenues by 2023, even in a market environment that is not expected to improve. Commerzbank is aiming to reduce costs by around €600 million by 2023 compared to the current year. By investing in the progressive modernisation of its Group-wide IT infrastructure, the Bank aims to reduce its IT costs to €1billion. Costs are also to be cut further in the central divisions and segments as well. This should result in a cost base of at most €5.5 billion in 2023 following the sale of mBank. As already announced, another Group-wide headcount reduction of gross circa 4,300 and net circa 2,300 full-time positions is regrettable but inevitable. A significant proportion of the circa 2,000 new positions will be created in strategically important areas. The details will be worked out over the next months in consultation with the employee representatives. The aim is to make the planned headcount reduction as socially responsible as possible.

After the implementation phase of the strategy, the Bank intends to achieve a return on equity of more than 4 per cent over the medium term. This medium-term planning takes account of recent decisions by the European Central Bank. The targeted capital ratio remains unchanged at between 12 and 13 per cent. This, in conjunction with the targeted return on equity, should enable the Bank to pay regular dividends.

*** Press contact Margarita Thiel +49 69 136-46646 Nils Happich +49 69 136-80529 Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

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“In signing the principles, we are reiterating our commitment to the Paris Climate Agreement from 2015,” said Martin Zielke, Chief Executive Officer of Commerzbank. “As a bank, it is our responsibility to support the transformation of the economy towards sustainability. And this is exactly what the Principles for Responsible Banking demand”.

Sustainability has been an integral part of Commerzbank’s corporate management for many years. For example, the Bank has committed to the Green and Sustainable Finance Cluster Germany, which was established in Frankfurt in 2018 and advances the sustainability of the financial industry in Germany.

“We are all responsible for our actions regarding sustainability. This is why we have been climate-neutral since 2015 and have significantly lowered our CO2 emissions,” Zielke added. “But we can achieve the greatest progress in climate protection and sustainability together with our clients and investors”.

In 2018, Commerzbank issued its first green bond with a volume of €500 million. In addition, the Bank continues to maintain its leading position in the field of renewable energies with a current credit amount of €4.9 billion in project financing and €0.9 billion in corporate financing. The sustainable focus also includes binding rules for business transactions involving coal – with the objective of gradually reducing financing in the field of coal-fired power generation.

** Press contact Beate Schlosser +49 69 136-22137

*** 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.

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With its new strategic programme, Commerzbank is enhancing the long-term sustainability of its business.

In the segment Private and Small Business Customers, Commerzbank will focus on the expansion of its mobile banking capabilities and the possible merger of comdirect bank Aktiengesellschaft (“Comdirect”) into Commerzbank. The Bank’s branch network remains a pillar of Commerzbank’s strategy. In the Corporate Clients segment the Bank intends to strengthen its distribution capability, also in particular with corporates in the Mittelstand (SME) segment. As part of its strategy, Commerzbank is planning to invest significantly in technology. The draft strategy foresees total investments of around 1.6 billion euros. Investments in digitalisation, IT infrastructure and growth account for an estimated 750 million euros of this, while restructuring costs in connection with necessary headcount reduction and planned modifications to the branch network account for the remaining 850 million euros. The Bank will retain a nationwide presence in Germany with around 800 branches, which reflects a reduction of 200 compared to today.

A further Group-wide headcount reduction is regrettable but inevitable. An estimated additional 4,300 full-time positions would be shed across the Group. The planned increase of around 2,000 full-time positions in strategic areas would take the anticipated net Group-wide headcount reduction to around 2,300 full-time positions. The details will be worked out over the next few months in consultation with the employee representative committees. The aim would be to implement the planned headcount reduction as socially responsible as possible.

Investment capacity to be strengthened by the sale of the majority stake in mBank

The draft strategy foresees the sale of Commerzbank’s majority stake in mbank S.A. (“mBank”). This would allow the Bank to generate the financial resources enabling a faster implementation of its strategy and the associated investments. The sale would result in a marked reduction in risk-weighted assets by around 17 billion euros and a release of equity capital at Commerzbank. The planned sale of mBank would be subject to regulatory approvals.

Planned purchase offer for comdirect bank Aktiengesellschaft

As the business models of Commerzbank and Comdirect become more closely aligned on the back of progressive digitalisation, the draft strategy also envisages the merger of Comdirect into Commerzbank. Against this background, Commerzbank is considering making a purchase offer to Comdirect’s outstanding shareholders under usual conditions. According to the draft strategy, Commerzbank would offer Comdirect’s shareholders a premium of presumably 25 percent on the unaffected Comdirect share price. The Bank currently already holds an 82 percent stake in Comdirect.

Medium term targets by 2023

The further development of the strategy is intended to help the Bank achieve additional growth in customers and assets, and higher revenues by 2023, even if the market environment continues to deteriorate. Commerzbank would aim for a cost level in 2023 of around 600 million euros lower than in the current year. This would result in a cost base of no more than 5.5 billion euros in 2023 following the sale of mBank. After the implementation of its strategy, the Bank is targeting a Return on Tangible Equity of more than four percent in the medium-term. The capital ratio is set to remain at 12 to 13 percent. In conjunction with the targeted Return on Tangible Equity, this should enable the Bank to pay regular dividends

*** Press contact Margarita Thiel +49 69 136-46646

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This week, Commerzbank presented its view of the global wind energy market in Hamburg to coincide with the Husum Wind industry event, which takes place from 10 to 13 September 2019. “If we want to achieve our CO2 emission reduction targets, we have to significantly expand wind energy in Germany. At the same time, all market participants need to establish an international footprint, in order to tap into new markets and increase cost efficiency”, says Berthold Bonanni, Head of the Energy unit (CoC Energy) at Commerzbank AG.

Onshore

The global wind market continues to grow, albeit with significant regional fluctuations. Commerzbank anticipates annual global growth for the onshore sector to increase to 68 gigawatts (GW) by 2020, from 46 GW in 2018. Annual growth forecasts for the years 2021 to 2028 vary between 57 GW and 63 GW per annum. This uncertainty is primarily due to regulatory changes, such as the discontinuation of state subsidies in the US and China as of 2021.

In Germany, ongoing modifications to the legal framework for tenders (first introduced in 2017 through the Renewable Energy Sources Act) have led to distortions of installation volumes over the last few years. In addition, permits are increasingly delayed due to a large number of applications and an increasing number of appeals and legal complaints. In the first half of 2019, only 287 megawatts (MW) (-82 % yoy) of wind power was newly commissioned. Of the 86 wind turbines installed, only 27 (representing 33%) were in Northern Germany (Lower Saxony: 14, Mecklenburg-Western Pomerania: 11, Schleswig-Holstein: 2, Hamburg/Bremen: 0). As a result, German turbine manufacturers, their suppliers as well as project developers are increasingly facing economic pressure.

In view of the expected lower business potential in Germany, Commerzbank has already expanded its international activities in recent years and has increasingly financed projects abroad, for example in the USA, where a local team was established in New York 10 years ago, in Scandinavia, Spain and Chile.

Growth trend offshore

By contrast, the outlook for the offshore sector differs starkly with an average growth rate of 15% anticipated over the next 10 years (from currently 4.3 GW annual installations to 19.1 GW p.a.). Commerzbank, which has established itself as a leading bank within the European offshore market (specifically Germany, Belgium, France and the United Kingdom), sees significant potential in the newly developing offshore sector in the USA. Commerzbank is also optimistic with regard to Asia – particularly South Korea, Japan and Taiwan – where it has already participated in the project financing of one offshore wind farm and is currently reviewing another promising transaction.

Long-term power purchase agreements

In many markets, such as the USA, Scandinavia and Spain, projects are increasingly securing their revenues from power generation via power purchase agreements (PPAs). In Germany, however, Commerzbank currently only expects new PPA-based projects for large-scale photovoltaic plants which are not eligible for subsidies. The trend of falling remuneration rates and lower levelised cost of electricity for renewable energies will make PPAs more attractive. In particular, the anticipation of rising power prices can offer industrial electricity consumers the opportunity to hedge their electricity price by contracting green power for the long term. Also, an increasing awareness of companies’ carbon footprint has led to a rise in the demand for green PPAs. However, in order to secure project financings on the basis of long-term PPAs with tenors of 10 to 15 years, only offtakers with good credit ratings can be considered.

“From today’s perspective, we deem it unrealistic to achieve political wind energy installation targets exclusively on the basis of PPAs due to the limited availability of creditworthy offtakers. In order to enable the much-needed expansion of renewable energies and to achieve the CO2 reduction targets, PPAs make sense as a supplement to a subsidy regime”, Bonanni says.

Commerzbank AG, with its Centre of Competence Energy (headquartered in Hamburg), is one of the leading financiers of renewable energies, with a loan volume of around €4.9 billion in project financing and around €0.9 billion in corporate financing.

*** Media contact Thomas Kleyboldt +49 173 2477706

*** 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.

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Commerzbank’s Chief Financial Officer, Stephan Engels, has informed the Chairman of the Supervisory Board that he is committed to fulfill his contract, which runs until April 2020, but that he would decline a potential offer to extend it.

Supervisory Board Chairman, Stefan Schmittmann, acknowledged Stephan Engels’ decision with regret and expressed his appreciation for his work at Commerzbank: “Stephan Engels is a distinguished manager, who has done a great job. For this I would like to thank him also on behalf of the Supervisory Board, as well as for honouring his remaining contract term. This gives us the opportunity to organise an orderly succession process."

Martin Zielke, Chief Executive Officer of Commerzbank AG, said: "I deeply regret Stephan Engels' decision, but understand his desire to embark on a new, international challenge. Stephan Engels supported the Board and me personally in devising the Commerzbank 4.0 strategy, as well as in the ongoing strategy process. He has been instrumental in making Commerzbank as stable and forward-looking as it is today. I’d like to extend my thanks to Stephan and wish him all the best for his personal and professional future."

Stephan Engels, Chief Financial Officer of Commerzbank said: “I have to say that I haven’t taken this decision lightly. It was not a conscious decision to leave the Bank because of one reason or another, but rather a personal decision to pursue an opportunity that has arisen elsewhere. After almost eight years on the Board of Managing Directors of Commerzbank, I have the opportunity to take on a new international challenge. Commerzbank has a strong corporate culture and it fills me with pride to have been part of it. I have actively contributed to the ongoing strategy process and of course will continue to support and conclude it. My contract runs until April 2020 and I will support the Bank with my full commitment as long as Martin Zielke and the Supervisory Board think it makes sense”.

Stephan Engels has been Chief Financial Officer at Commerzbank since 1 April 2012, responsible for Group Finance, Investor Relations, Tax, Treasury and mBank. Previously, he was Head of Finance & Controlling at Mercedes-Benz and Head of Group Controlling and Reporting at Daimler AG. Prior to that, he was Chief Financial Officer at DaimlerChrysler Bank and DaimlerChrysler Services AG, and a member of the Mercedes-Benz Cars Executive Committee. Stephan Engels is married and has two children. Born in Hamburg, he studied economics at the University of St. Gallen.

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Press contact

Margarita Thiel +49 69 136 46466

Nils Happich +49 69 136 80529

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

***

Disclaimer

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The starting point for the automotive supplier sector has after record years turned challenging: in the first six months of 2019 there was a simultaneous decline in the production figures (Europe: -5 %, China: -13 %, North America: -3 %) . Commerzbank Research also expects 2019 global sales to fall by around 4%. This downturn is hitting this key industry in the midst of a fundamental transformation process and increasing margin pressure. Although it does come with some positive aspects as Cedric Perlewitz, Automotive Sector Head at Commerzbank explains: “As a result of the gloomier economic outlook, we are seeing an acceleration of strategy change from automotive suppliers. This applies to the focus of investments in electric vehicles, as a response to the sustainability needs of customers as well as a CO2 strategy to avoid fines and sanctions. From 2020, the clock is ticking for manufacturers”.

Strategy change on the rise

When it comes to the topic of sustainability, the German automotive sector is aligning itself more closely to the future generation of customers. Manufacturers are bringing forward launch dates for electric cars – this is also against the background of competition from Asia. “We are observing the use of large budgets for converting factories despite the uncertainty around the timing of the E-Transformation, which has already been in full swing for some time,” says Perlewitz. “For instance, many suppliers are increasingly reporting successes with larger orders for electric vehicles”.

The desire of the major carmakers and politicians to establish electric vehicles on the mass market is currently countered by comparatively high prices. “In the medium term the hybrid car, with a combination of an internal combustion engine and an electric motor, will be a step on the way to achieving this goal,” says Perlewitz. The current challenge facing smaller and medium-sized enterprises is to produce parts for internal combustion engines in present models while at the same time investing in new technologies for electromobility.

Connected and autonomous driving, lightweight construction and shared mobility

Connected and autonomous driving (“AD”) are other important drivers of research and technical developments. 80% of all newly registered cars in Germany already connected. Safety and driver assistance systems (ADAS /AD Level 2+), as well as information and communications systems, are increasingly being used and often already in compact class vehicles. However, before autonomous vehicles can be launched on the market; a number of legal obstacles need to be overcome. The development of artificial intelligence is also not yet so advanced that a driver can hand over control of the vehicle for a long period of time. This is where new partnerships and cooperation models with new market players from outside the auto industry are emerging to promote new ecosystems for AD. “New technologies are breaking up the traditional ‘balance of power’ between manufacturers and suppliers,” says Cedric Perlewitz.

Commerzbank Research sees the possibility of CO2 fines for manufacturers as a primary risk factor. Manufacturers must act to avoid losing half of their profits through EU fines. In order to meet stricter emissions reduction targets and avoid CO2 fines from 2020/2021, the automotive industry is using alternative materials as well as new powertrain technologies and software in the short term. Lighter materials such as aluminium, plastics, high-strength steel and carbon bring clear advantages. Greater demand for car-sharing services in the wake of new mobility requirements will allow for the establishment of new business models, in particular in the metropolitan regions and cities.

Sustainable financing

This change of strategy will at the same time lead to increased financing requirements, says Commerzbank expert Perlewitz. In the future green and sustainable financing could become an important differentiating factor, as is already common practice in other sectors (utilities, real estate sector as well as manufacturing industry). Financing proceeds need to be allocated exclusively to a “green” project portfolio (for example investments in transformation/new plants for e-components, electric models).

“In view of the enormous transformation process, the strategies on the part of the automotive and supplier industries are simultaneously driving forward new formats and sources of financing. If investments in new e-projects are clearly allocated, we expect such forms of financing to gain in significance in the European automotive sector. This will also open up new target investor groups for issuers,” says Cedric Perlewitz.

*** About Commerzbank Commerzbank is a leading international commercial bank with locations in just under 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the needs of its clients. Commerzbank finances around 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German business world, the Bank is also a leading provider of capital market products. Its subsidiaries comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, the Bank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

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In the transaction, order and delivery data were agreed upon between the companies via the international Marco Polo trade finance network. Payment terms were secured by an irrevocable payment commitment, triggered through automated matching of trade data. For the first time, automatic matching of trade data was achieved with involvement of the executing logistic provider, in this case Logwin, which entered the relevant transport details directly into the network.

An important objective of the Marco Polo network is to obtain all trade data necessary for a transaction as directly as possible, from the original data source. This also includes external third parties such as logistic providers. The data transfer for this transaction was executed via the DLT platform simultaneously to the settlement of the real trade transaction.

Gerald Böhm, Head of Guarantees and Trade Finance at Voith, said: “For the first time, we have processed the purchase and delivery of special hydraulic couplings from Germany to Taiwan using blockchain technology. We executed this transaction with KSB, the leading pump and valve manufacturer, via the Marco Polo network. We are delighted that this pilot transaction marks a further important milestone in the development of Distributed Ledger Technology for more efficient trade finance processes”.

“Now, an independent third party – in our case the logistics provider – is able to trigger a payment obligation in favour of the supplier This significantly enhances the value of the payment commitment”, explained Matthias Heuser, Head of International Trade and Payment Solutions at LBBW.

“As a buyer, together with our bank we can ensure that the payment commitment becomes effective only if the goods are actually in the hands of the logistics provider, and on their way to the delivery destination”, explained Ralf van Velzen, Head of Export Financing at KSB SE & Co. KGaA.

"For Logwin, participation in the real-time transaction with parallel data transfer has shown just how much potential there is in the DLT technology – how it helps to significantly simplify and accelerate the processes – on the part of the logistics partners as well as their customers”, confirmed Managing Director Lars-Erik Poths and Key Account Manager Konstantin Wunsch at Logwin Air + Ocean Deutschland GmbH.

"The goal for future development is to expand the Marco Polo network, bringing additional relevant parties for trade transactions on board – such as insurance companies, inspection authorities, local chambers of commerce, etc. In this way, the entire supply chain can swiftly and digitally be mapped”, added Enno-Burghard Weitzel, Commerzbank’s Global Head of Trade Finance Products.

About Commerzbank Commerzbank is a leading international commercial bank with locations in just under 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the needs of its clients. Commerzbank finances around 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German business world, the Bank is also a leading provider of capital market products. Its subsidiaries comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, the Bank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

About KSB KSB is a leading supplier of pumps, valves and related support services. These come in a wide range of applications ranging from building services, industry and water transport to waste water treatment, power plant processes and solids transport. With production plants, sales offices and agents as well as service centres in more than 100 countries, KSB is always close to its customers. With a workforce of around 15,700, the KSB Group generated sales revenue of € 2.25 billion in 2018. The basis of the company's success is an innovative technology based on its own research and development work. The activities of the KSB research centres concentrate on hydraulics, materials development and the automation of pumps and valves. Excellent efficiencies, energy-saving motors as well as equipment for the control and monitoring of system components ensure a high level of energy efficiency. With over 170 service centres and around 3,000 service employees, KSB provides inspection, maintenance and repair services worldwide. All-in service and operations management complete the service portfolio.

About LBBW Landesbank Baden-Württemberg (LBBW) is both a medium-sized universal bank and the central bank of the savings banks in Baden-Württemberg, Saxony and Rhineland-Palatinate. With total assets of EUR 241 billion and around 10,000 employees (as of 31 Dec. 2018), LBBW is one of the largest banks in Germany. Its core activities are the business with corporate customers, in particular small and medium-sized enterprises and the private customer business, as well as savings banks. A further focus is placed on real-estate financing as well as the customer-oriented capital market business with banks, savings banks and institutional investors.

About LOGWIN Logwin AG (Grevenmacher, Luxembourg) provides efficient logistics and transport solutions for its customers from industry and trade. In 2018, the group generated sales of EUR 1.1bn and currently employs about 4,400 staff. Logwin operates in all main markets worldwide and has around 190 locations on six continents. With its two business segments Solutions and Air + Ocean, Logwin AG is one of the leaders in the market. Logwin AG is listed in the Prime Standard of the Deutsche Börse. The majority shareholder is DELTON Logistics S.à r.l., Grevenmacher (Luxembourg).

About Voith Group The Voith Group is a global technology company. With its broad portfolio of systems, products, services and digital applications, Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive. Founded in 1867, the company today has more than 19,000 employees, sales of € 4.2 billion and locations in over 60 countries worldwide and is thus one of the large family-owned companies in Europe.

Further Information https://www.marcopolo.finance/ https://www.r3.com/ https://tradeix.com/

Media Contacts LBBW: Bernd Wagner +49 711 127-76402 bernd.a.wagner@LBBW.de

Commerzbank: Josefin Altrichter +49 69 136-80209 josefinmarie.altrichter@commerzbank.com

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Working together with its research and development unit main incubator, Commerzbank is the first German bank to develop a blockchain-based payment solution for machine-to-machine (M2M) payments. A fully automated payment process between an electric charging point and a Daimler truck system has taken place. For this transaction, Commerzbank issued Euros on a blockchain and provided Daimler Trucks with “cash on ledger” (i.e. the money on the blockchain) to process the payment.

As a result of digitalisation, machines are increasingly interconnected with each other and operating with rising degrees of autonomy. At the same time, independent communication and interaction between machines (called machine-to-machine or M2M) is happening, this also enables the settlement of mutual payments. This means that payments in automated contexts will no longer need to be triggered by human intervention. Current payment systems are not yet able to meet these requirements.

“After having completely digitised securities transactions in past pilot projects, the focus is now shifting to DLT-based payment structures. As a bank we see our mandate as creating new digital payment architectures for our clients”, says Stephan Müller, Divisional Board Member Transaction Banking, Commerzbank.

The pilot successfully demonstrated that both charging and subsequent payment processes can be performed fully automatically and without any human interaction. Over the short term this may lead to efficiency gains in logistic chains while also leveraging considerable potential as vehicle automation increases. The solution can also be used profitably for many further user cases in machine-to-machine communication, such as in the chemicals sector, in manufacturing or in the real estate industry.

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Press contact

Josefin Altrichter +49 69 136-80209

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About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small-Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

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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.

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In the first half of 2019, Commerzbank continued growth in customers and assets. In a very challenging environment, the Bank increased its net interest income by 9% thanks to the additional business in the core segments and generated higher underlying revenues in the customer business. Here, the contributions of new customers again played an important role in mitigating the headwind from negative interest rates, tight margins, and regulatory requirements. However, the progress in the customer business was contrasted by a significantly lower fair value result in the Corporate Clients segment, especially in the second quarter. This led to lower revenues overall. In addition, the drag from the risk result was higher due to single cases in the second quarter and lower write-backs of provisions in the first half of the year. The non-performing loan (NPL) ratio was a low 0.8% (H1 2018: 0.9%). Operating costs have been reduced by 4% through active cost management and more selective strategic investments in growth and digitalisation. In addition to the continued growth in customers and assets, two other strategic milestones were reached. The run-off segment Asset & Capital Recovery (ACR) was dissolved with effect from 1 July 2019 thanks to the successful run-down of the non-strategic portfolios over the last few years. And the transformation of the headquarter has taken an important step forward. Since 1 July, IT and product areas have been working closely together under the name "Campus 2.0".

“We are continuing on our growth path and are making significant progress in our customer business. Despite all the successes we have made, challenges continue to increase for the industry and for us,” said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “This might require further investments. And this is exactly what we are examining and assessing in our current strategy process”.

Group revenues came to €4,285 million in the first half of 2019 (H1 2018: €4,395 million). Also adjusted for one-off effects revenues stood at €4,285 million, which was below the previous year (H1 2018: €4,376 million). This development was primarily due to the marked drop in the fair value result mainly in the Corporate Clients segment which was adversely affected by valuation effects and the lack of contributions from legacy portfolios. Progress in customer business was reflected in net interest income which was increased thanks to continued loan growth and lower funding costs. Revenues for the second quarter amounted to €2,129 million (Q2 2018: €2,178 million). Adjusted for one-off effects, they stood at €2,095 million (Q2 2018: €2,160 million).

Operating expenses including compulsory contributions were reduced in the first half of 2019 and amounted to €3,487 million (H1 2018: €3,576 million). This development is based on operating costs which were reduced to €3,150 million (H1 2018: €3,274 million; Q2 2019: €1,581 million; Q2 2018: €1,636 million). This was mainly due to the prioritisation of strategic investments. Meanwhile, compulsory contributions rose again by almost 12% compared to the first half of 2018 to €337 million (H1 2018: €302 million). The figure for the second quarter was €72 million (Q2 2018: €58 million).

The risk result was in line with expectations in the first half of the year and stood at minus €256 million (H1 2018: minus €160 million). The increase is attributable in particular to the second quarter which accounted for minus €178 million of this (Q2 2018: minus €82 million). The higher figures are due to single cases in the second quarter and lower write-backs of loan loss provisions in the first half of the year. Overall, the Bank’s risk profile remains very healthy with a non-performing loan (NPL) ratio of 0.8%. This reflects the Bank’s prudent lending standards and the resilient but generally weaker German economy

In total, the Bank generated an operating profit of €542 million in the first six months (H1 2018: €659 million), including €298 million in the second quarter (Q2 2018: €401 million). Also in the second quarter, operating profit benefited from progress in the customer business and higher net interest income. Overall, the decrease was mainly due to the low fair value result and the higher risk result. The pre-tax profit came to €542 million (H1 2018: €689 million) in the first half of 2019. This was also impacted by the lower pre-tax profit for the discontinued business area Equity Markets & Commodities (EMC), which was around €30 million down on the previous year. Correspondingly, the net result attributable to Commerzbank shareholders stood at €391 million (H1 2018: €533 million). While the tax burden in the first quarter was comparatively high, the second quarter benefited from exceptionally low tax expenses of €20 million. In the second quarter, the net result stood at €271 million (Q2 2018: €272 million). Earnings per share came in at €0.31 in the first half (H1 2018: €0.43). The net return on tangible equity remained unchanged at 4.3% in the second quarter (Q2 2018: 4.3%).

Common Equity Tier 1 ratio rises to 12.9%

The Bank strengthened its capital position despite continued growth in the second quarter. The Common Equity Tier 1 ratio (CET 1) rose to 12.9% at the end of June (end of March 2019: 12.7%). The ratio already includes a dividend accrual in line with the pay-out ratio for 2018. At the beginning of July 2019, the Bank also successfully optimised its capital structure and further strengthened its total capital with the issue of its inaugural additional tier 1 bond with a volume of US$1 billion. Risk-weighted assets (RWA) were almost unchanged in the second quarter at €187 billion (end of March 2019: €185 billion). Risk-weighted assets for credit risks also remained at the same level as in the first quarter of 2019 despite increased lending volumes in the core business. This was mainly due to RWA management and lower currency effects. The leverage ratio still stood at a comfortable 4.5% at the end of June (end of March 2019: 4.5%). Total assets came to €518 billion (end of June 2018: €488 billion).

“In the second quarter, we were able to further strengthen our common equity ratio as business growth continued. This means that we are well prepared for the expected regulatory burdens like TRIM,” said Stephan Engels, Chief Financial Officer of Commerzbank. “At the beginning of July, we also optimised our capital structure and further strengthened our total capital by issuing our first AT 1 bond which was significantly oversubscribed”.

Development of the segments

The Private and Small Business Customers (PSBC) segment continued its growth in Germany and gained a net 232,000 new customers overall in the first half of the year (H1 2018: 145,000). In the second quarter, 108,000 net new customers joined the Bank. The segment therefore remained on track in terms of customer growth. The new customers provided additional business. Assets under Control in Germany rose by a further €32 billion in the first half of the year (increase in Q2 2019: €11 billion) to €413 billion (end of 2018: €381 billion). Hence, assets have risen by €77 billion since the end of 2016 and were therefore above the target of more than €400 billion for 2020. The loan book now amounts to over €100 billion. This forms a good basis for a further increase in net interest income. The portfolio volume in the mortgage lending business rose by a further €3.0 billion in the first half of 2019 (Q2: €1.6 billion) to €78.1 billion.

Following its continued growth, the segment increased its net interest income by more than 7% in the first six months of 2019 and thus compensated the sustained margin pressure. Revenues after adjustment for exceptional items improved slightly to €2,464 million (H1: €2,436 million). In the second quarter, underlying revenues rose year-on-year to €1,244 million (Q2 2018: €1,225 million).

Furthermore, the segment made progress on the cost side in the first half of the year despite higher compulsory contributions. The operating costs were reduced by €56 million to €1,743 million (H1 2018: €1,800 million). This more than compensated for the increase in compulsory contributions. The risk result improved slightly in the first half of the year to minus €100 million (H1 2018: minus €115 million), underlining the healthy risk profile. In sum, the segment improved its operating profit by 4.1% to €392 million (H1 2018: €377 million). The second quarter contributed €239 million (Q2 2018: €174 million) to this.

The Corporate Clients segment gained additional new corporate clients in what remained a difficult market environment. The segment has already brought 11,400 new clients on board since the beginning of 2016. Loan volumes increased by €6 billion in the first six months to €88 billion. Hence, the segment has already achieved its customer and loan growth targets for the end of 2020.

In the Corporate Clients segment, adjusted income increased in Mittelstand, International Corporates, and Financial Institutions and hence in all the directly customer-facing business areas. By contrast, Others was adversely affected by a lower result from hedging activities and portfolio management as well as the lack of revenues from legacy portfolios particularly in the second quarter of 2019. In addition, this area had benefited from a large individual transaction in the previous year. Consequently, the segment’s underlying revenues were down overall in the first half at €1,668 million (H1 €1,775 million). The figure for the second quarter was €799 million (Q2 2018: €909 million).

While the segment’s operating expenses were reduced to €1,238 million in the first six months (H1 2018: €1,282 million), the burdens from the risk result increased. The risk result came out at minus €155 million in the first half of the year (H1 2018: minus €60 million), in particular due to single cases in the second quarter and lower write-backs of provisions in the first half of the year. In total, the segment generated an operating profit of €142 million in the first half (H1 2018: €315 million). The figure for the second quarter was €22 million (Q2 2018: €218 million).

With the non-strategic portfolios successfully run-down, the Bank dissolved the Asset & Capital Recovery (ACR) segment with effect from 1 July 2019. The remaining portfolio volume of €4.5 billion – including the segment’s ship finance portfolio of now only around €200 million – was transferred to the Others & Consolidation segment. ACR recorded revenues of €79 million (H1 2018: €106 million) and generated an operating profit of €31 million in its last first half (H1 2018: €76 million).

Outlook

The Bank will continue its growth strategy in 2019 and is expecting higher underlying revenues than in the previous year. Overall, the Bank expects a slight year-on-year increase in consolidated net income for the 2019 financial year, although this target has become significantly more ambitious given the earnings development in the first half of the year, the noticeable worsening of the macroeconomic situation, and the increasingly uncertain geopolitical situation. The Bank is targeting a Common Equity Tier 1 ratio of at least 12.75% by the end of 2019. The cost base should remain below €6.8 billion in 2019, while the drag from the risk result is expected to be at least €550 million. The Bank is planning to maintain a pay-out ratio for financial year 2019 at a level comparable to 2018.

*** Press contact Nils Happich +49 69 136-80529 Maurice Farrouh +49 69 136-21947

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Commerzbank’s Supervisory Board has today appointed Roland Boekhout (56) to the Board of Managing Directors. Roland Boekhout, currently Member of the Management Board Banking at ING Group, will take on responsibility for Commerzbank's Corporate Clients segment by 1 January 2020, following the usual cooling off period. He succeeds Michael Reuther (60) who, as agreed and announced in December, will leave the Bank to embark on a new chapter in his professional life. Roland Boekhout’s appointment to the Board is still subject to the approval of the supervisory authorities.

Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank, commented: "With Roland Boekhout we gain an experienced, international expert to head up our Corporate Clients segment. He looks back on a long and successful banking career, has a deep insight into the German market, as well as corporate banking expertise in various international markets. I am looking forward to the new ideas Roland Boekhout will bring to further digitalise our corporate clients business. I would like to thank Michael Reuther for the excellent cooperation during his time at Commerzbank. He successfully advanced the integration of the corporate clients business with the investment bank in a very challenging market environment and transformed Commerzbank into a pioneer in client-focused investment banking. I would also like to thank Michael Reuther for agreeing to continue to head up the corporate clients segment until the end of the year, to ensure an orderly hand-over to Roland Boekhout."

Dr. Stefan Schmittmann, Chairman of the Supervisory Board at Commerzbank, said: "I am delighted to have found in Roland Boekhout a proven expert for this important position, and I would like to sincerely thank Michael Reuther for his extraordinary commitment and great service to Commerzbank over the past thirteen years. He successfully managed the seamless integration and risk reduction of the investment banking activities following the acquisition of Dresdner Bank, which can’t be credited highly enough. In my former role as a Board Member responsible for Risk Management, I have come to appreciate Michael Reuther not only professionally but also personally”.

Michael Reuther, Commerzbank’s Board Member responsible for the Corporate Clients segment commented: “I am very glad that the Bank has found such a renowned expert for the German and international corporate clients business to join the Board of Managing Directors. Roland Boekhout is an excellent choice. I have agreed to continue to head up the corporate clients business until the end of the year with my full commitment and to pursue the growth path that we have embarked on”.

Roland Boekhout said: “I am delighted to join Commerzbank as it distinguishes itself through a high customer focus, a collaborative culture and a no-nonsense attitude. Commerzbank has a unique position in the German business, and that combination makes it a very exciting opportunity for me. I am very much looking forward to working together with my new colleagues, and to continue to grow the strong footprint Commerzbank has in the corporate and institutional space in Germany and abroad.“

Roland Boekhout has been a member of the Management Board Banking of the ING Group in the Netherlands since 2017. He is responsible for the banking business in Benelux as well as for the implementation of an integrated banking platform in Belgium and the Netherlands. Prior to this, he served as CEO of ING in Germany from 2010 to 2017. Boekhout studied business administration at the Erasmus University in Rotterdam and completed the general management program CEDEP at the INSEAD in Fontainebleau. After a short period at Unilever in the Netherlands from 1988 to 1991, Roland Boekhout joined ING Group. There, his career saw him take up various management positions, including in the US, Poland and Mexico.

*** Press contact Margarita Thiel: +49 69 136 46646 Maximilian Bicker: +49 69 136 22440

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Commerzbank AG has successfully issued its inaugural additional tier 1 bond. The bond has a volume of 1 billion US dollars and a fixed coupon of 7.0% per annum. As part of the marketing process, talks were held with more than 140 investors in Germany, Europe and Asia. The order book was several times oversubscribed, which reflects the extensive interest of investors. The bond will be listed on the Luxembourg Stock Exchange.

With the issue today, the Bank is optimising its capital structure, also in light of changed regulatory requirements imposed by the European Banking Authority (EBA). The subordinated bond meets the criteria set out in the Capital Requirements Regulation (CRR) for additional tier 1 capital (AT1). The instrument has a perpetual maturity and a first call date in April 2025. The bond terms allow for a temporary write-down in the event that the core equity tier 1 ratio (CET1 ratio) of the Bank drops below 5.125 per cent. Joint lead managers for the transaction were UBS, Commerzbank, Barclays, HSBC, and JP Morgan.

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Press contact

Maurice Farrouh +49 69 136-21947

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 coun¬tries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

***

Disclaimer

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities in the United States of America, Canada, Japan, Australia, or in any jurisdiction in which such offer or solicitation is unlawful. 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.

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Renminbi (RMB) is becoming increasingly important for Commerzbank’s corporate clients, with two thirds of companies with an annual turnover of more than EUR 250 million considering it highly relevant when responding to Commerzbank’s 2019 RMB survey. 46% now invoice their Chinese clients in RMB and a further 21% plan to adopt RMB invoicing in the next 12 months. Among small and medium-sized businesses (SMEs) with an annual turnover of between € 2.5 m and € 12.5 m, only 9% have switched to invoicing in RMB.

In its fourth RMB survey, Commerzbank, in cooperation with Forsa, surveyed more than 3,900 Europe-based corporate clients that have business interests in Asia and 100 Chinese corporate clients that conduct international business. In the previous surveys the Germany-Austria-Switzerland region was surveyed.

This year’s survey showed that businesses are closely watching the current geopolitical situation, responding by taking action within their purchasing and treasury departments. While cash services remain as important as ever, risk management solutions in particular are becoming increasingly relevant. When asked about the advantages of invoicing in RMB, an unprecedented 73% of clients gave “hedging against exchange rate risks” as the main driver (previous year: 60%). Other important reasons included “advantages in price negotiations” (57%; previous year: 62%), “advantages in entering the Chinese mainland market” (46%; previous year: 35%) and “preferences of Chinese trading partners” (38%; previous year: 37%).

According to the survey, the main barriers preventing companies from switching to adopting the RMB include “already established procedures” (57%; previous year: 59%) and the “preference of trading partners for euros or US dollars” (49%; previous year: 41%).

Due to the restrictions on capital leaving China, the reasons against invoicing in RMB are consistent with last year’s results, with 11% of clients citing a “lack of trust in the sustainability of the currency”, while the proportion of those expressing concerns about “political uncertainty” rose to 11% (previous year: 5%).

Asked about how the current geopolitical situation had affected their business, two-thirds of European companies said they had felt “no” to “hardly any” impact, while one-third stated the effects were noticeable. “Interestingly, 44% of clients with an annual turnover of more than € 250 m rate the impact on their business higher on average. Conversely, only 15% of our smaller corporate clients with an annual turnover of between € 2.5 m and € 12.5 m have noticed the change in global economic conditions as having an impact on their business,” explains Michael Rugilo, Asia expert for Commerzbank.

The mood in China with regards to cross-border use of RMB is similar to that in Europe: 29% of Commerzbank’s corporate clients in China already use the currency, 4% plan to switch within one year and 67% do not intend to change their invoicing. However, the reasons and barriers are weighted differently; 58% of clients in China state they were prompted to switch by demand from abroad, while currency hedging played a lesser role at 19%. Chinese firms also cite “trading partners and their preference” (53%) as well as “already established procedures” (23%) as barriers to switching to RMB.

Barbara Herbert, RMB expert for Commerzbank, summarises the survey’s findings: “While last year’s survey centred on the hope of a return to the liberalisation of the Chinese currency, corporate clients are now increasingly occupied with the impacts of the changed geopolitical conditions on their China business”.

*** Press contact: Maximilian Bicker: +49 69 136 22440 Bernd Reh: +49 69 136 46971

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. In 2018, it generated gross revenues of EUR 8.6 billion with approximately 49,000 employees.

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The Board of Managing Directors of Commerzbank AG has decided to issue a subordinated bond. The bond meets the criteria set out in the Capital Requirements Regulation (CRR) for additional tier 1 capital (AT 1). Subject to the approval of the Supervisory Board, the bond will be issued with an exclusion of the subscription right of the shareholders. The issue serves to further strengthen and structurally optimise the Bank’s regulatory capital.

The AT 1 bond shall be issued in the aggregate nominal amount of at least 500 million US dollars in a specified denomination of 200,000 US dollars. The bond will have a perpetual maturity and a first call date in April 2025. The bond terms include a temporary write-down in the event that the Bank’s Common Equity Tier 1 ratio (CET 1 ratio) drops below 5.125 per cent. The bond will be issued following a roadshow, subject to market conditions.

“We have made good progress in the implementation of our strategy and have built up a strong CET 1 position. The AT 1 issue enables us to optimise our capital structure, particularly in the light of our growth strategy and changes in regulatory requirements,” said Stephan Engels, Chief Financial Officer of Commerzbank. Commerzbank’s CET 1 ratio stood at 12.7 per cent at the end of March 2019, thereby exceeding all regulatory requirements.

*** Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

*** Disclaimer This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities in the United States of America, Canada, Japan, Australia, or in any jurisdiction in which such offer or solicitation is unlawful. 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.

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Bangkok Bank and Commerzbank have jointly run an international trade transaction based on Distributed Ledger Technology (DLT). Payments between the German export customer Schott and the Thai import customer A.P.A. Industries were secured by digitally processing the related data transfer via Corda blockchain technology on the Marco Polo trade finance network.

The transaction comprised the supply of glass tubes from the German specialty glass manufacturer Schott to the Thai packaging manufacturer A.P.A. Industries. APA uses the glass tubes for high-end pharmaceutical packaging for the Asian market.

For the transactions, order and delivery data were agreed between the companies via the Marco Polo network and the payment was secured by a conditional payment commitment from Bangkok Bank, the buyer's bank. The entire flow of information was efficiently and comprehensibly mapped via R3’s Corda DLT platform. All parties involved (A.P.A. Industries, Bangkok Bank, Commerzbank and Schott) were able to communicate and view trading data simultaneously via specially set up digital nodes.

"We are very pleased to have partnered with our client Schott in this pilot, handling an international trade transaction between Germany and Thailand via DLT-based technology. These transactions prove how relevant DLT will be for German SMEs and the export industry. We are happy to be one of the drivers to develop this digital solution for trade finance and to support clients with our expertise”, says Enno-Burghard Weitzel, head of product management trade services at Commerzbank AG.

Securing payments for commercial transactions with traditional instruments is often complex and lengthy due to the many intermediaries and the large number of physical documents involved in the process. Using Trade IX's DLT platform provides opportunities to make trading easier and faster. After the second successful pilot project, the focus is now on the complete mapping of transactions via the Marco Polo network with direct connection to the customer's existing supply chain management systems (ERP integration). It is planned to expand the network with additional banks and participants from the transport and insurance industries in order to map the entire value chain in the foreign trade business.

Mark Siegel, Senior Manager Treasury at Schott says: “We expect DLT to significantly simplify and accelerate our international business and are pleased that we were able to participate as a partner in this pilot project. ” The German corporate hopes DLT technology and the Marco Polo project will help significantly increase and standardize automation in trade finance.

“The participation in the pilot project has also allowed us to gain more experience with the DLT technology that we will be able to use in other areas,” said Dieter Worf, head of treasury at SCHOTT.

Marco Polo is a Trade Finance project of R3’s blockchain consortium. The provider TradeIX and the member banks develop different solutions supporting Trade and Supply Chain Finance. Meanwhile 22 banks from Europe, Asia-Pacific, Russia, Middle East and North and South America have joined the initiative.

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Press contact Commerzbank Josefin Altrichter +49 69 136 80 209

***

About APA Industries Co., Ltd. APA Industries Co., Ltd., with registered capital of 250 million Bath (USD 8 million) is 50 years experienced in the production and quality control of high caliber pharmaceutical and cosmetic primary packaging. The objectives of the company are the commitment of manufacturing and design of innovative quality products according to customer requirements while maintaining continuous improvement. Lately, in order to expand its production capacity and to keep pace with its growing customer base, the company recently moved to a new location which is a large scale manufacturing facility with consist of many products line such as PE and PP bottle for parenteral solutions and aluminum collapsible tube.

About Bangkok Bank Bangkok Bank is one of Southeast Asia’s largest regional banks with total assets of 3.2 trillion baht (USD 102 billion), as of March 31, 2018. It is a leading provider of corporate finance and SME lending in Thailand, with approximately 240 business centres and business desks, as well as around 1,200 branches and approximately 17 million customer accounts. The bank‘s international network includes 32 overseas branches in 15 economies with particular strength in Southeast Asia and China. For more information about Bangkok Bank please visit www.bangkokbank.com.

About Schott Schott is a leading international technology group in the areas of specialty glass and glass-ceramics. The company has more than 130 years of outstanding development, materials and technology expertise and offers a broad portfolio of high-quality products and intelligent solutions. Schott is an innovative enabler for many industries, including the home appliance, pharma, electronics, optics, life sciences, automotive and aviation industries. Schott strives to play an important part of everyone’s life and is committed to innovation and sustainable success. With more than 15,500 employees at production sites and sales offices in 34 countries, the group has a global presence. In the 2017/2018 fiscal year, Schott generated sales of 2.08 billion euros. The parent company, Schott AG, has its headquarters in Mainz (Germany) and is solely owned by the Carl Zeiss Foundation. This is one of the oldest private and one of the largest science-promoting foundations in Germany. As a foundation company, Schott assumes special responsibility for its employees, society and the environment.

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Despite a number of international flashpoints the SME sector continues to focus on internationalisation. According to Commerzbank’s latest survey, at present 52 per cent of these companies are exporters – most of them export into the Eurozone. One industry with a high rate of exporting companies is the manufacturing industry; here, 78 percent of the companies surveyed are exporters. Only 6 per cent of companies with internationalisation potential are hesitant to expand abroad. But geopolitical turbulence like ongoing trade tensions and Brexit are changing the framework conditions. However, the SME sector is prepared for this and depending on the size of the company is focussed on core products, marketing, and distribution in the EU single market or by innovation and international diversification. 81 per cent of the companiesstate that a key driver for internationalisation is the competiveness of German products. Other drivers are the increasing digitalisation of business processes (78 per cent) and the favourable financial framework conditions (73 per cent).

The results of the 19th survey by theUnternehmerperspektiven initiative entitled “How safe are the markets? Managing risks in international business” was presented in Frankfurt on 27 May 2019. The survey identifies political and economic reasons for the changing internationalisation of the SME sector.

“One important finding for us as a bank is that companies with the potential for internationalisation have become hesitant in the face of the changing geopolitical situation and apparent uncertainty for foreign investments,” commented Michael Reuther, member of the Board of Managing Directors responsible for Corporate Clients at Commerzbank. “So we see that we are called upon to support SMEs to hedge controllable risks when they expand abroad. German companies should continue to capitalise on their opportunities in global markets”.

Current political and economic situation creates planning uncertainty

Nearly two thirds of the surveyed companies expect there to be less planning security in the next two years, and 61 per cent expect a gloomier economic outlook. The reasons for this are political and economic uncertainty: 47 per cent regard the increasing global trade conflicts as being negative for their own business activity, 35 per cent regard a possible Brexit as negative. Companies in the SME sector currently assess China as being a more reliable trading partner than the USA or Great Britain (30 per cent versus 17 per cent and 8 per cent). But domestic issues are also a burden for companies: 45 per cent expect the diesel crisis to have a negative impact on their business activities. 35 per cent see negative consequences from climate change. “Alarmism or battening down the hatches is the wrong approach. We are supporting politicians to advocate a multilateral and rules-based global trading system so that cost-effective and sustainable trading is possible at fair conditions,” said Dr Holger Bingmann, President of the Federation Wholesale, Foreign Trade, Services (BGA), and patron of the current Commerzbank study.

No patent recipe for internationalisation strategies

Companies are reacting individually to this situation. The trend: SMEs with an annual turnover of up to €15 million are concentrating in their expansion on their core products (63 per cent). For 44 per cent, the focus is on the EU single market; just under half (48 per cent) hedge against payment and default risks. Companies with an annual turnover of more than €100 million are stepping up their own innovation efforts (78 per cent) and are digitalising products and processes (79 per cent). More than two thirds (67 per cent) of these companies hedge against payment and default risks. The amended internationalisation strategies ofexporting companies are impacting on the choice of foreign markets. New markets are to be found overseas, e.g. in India and North America, for 14 per cent; 12 per cent plan on expanding to China. More and more production facilities are being transferred most frequently to China (31 per cent), also to countries within ASEAN, the Association of Southeast Asian Nations, (11 per cent), and to Poland (11 per cent). “It is encouraging to see how many companies are positioned on the international stage,” is how Bingmann assessed the situation.

Banks should provide support with operational issues

The majority of demands when going abroad can be found operationally with more than three quarters (77 per cent) stating that bureaucracy is a problem when doing business in new markets. Price fluctuations with raw materials (57 per cent) and import duties (54 per cent) pose additional hurdles. Exporting companies expect assistance from the banks when dealing with the challenges posed by controllable risks. Nearly half expect an assessment of risks with international business and 45 per cent expect the provision of information on foreign markets. 38 per cent of the companies surveyed would like to receive individual advisory services when entering country markets with challenging political or economic conditions. In response to the question of which is the most important bank for international business, 43 per cent of the exporting companies answer Commerzbank, making it the leading bank in Germany’s foreign trade sector.

The “Unternehmerperspektiven” initiative and its studies

Since 2006, the Mittelstand initiative “Unternehmerperspektiven” has been a public forum for topics which affect companies. Once a year, it surveys 2,000 owners and managers from companies of every size and from every sector. The representative surveys are conducted by Forsa. Representatives from the business world and industry federations, politics, and academia discuss the results in the framework of public podia.

*** Press contact Maximilian Bicker +49 69 136-22440 Bernd Reh +49 69 136-46971

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At today’s regular Annual General Meeting of Commerzbank AG in Wiesbaden, shareholders voted as follows on the key items on the agenda:

Resolution on the appropriation of distributable profit (item 2) The Annual General Meeting voted, as proposed by the Board of Managing Directors and the Supervisory Board, to use the distributable profit for financial year 2018 in an amount of approximately €262 million, to pay a dividend of €0.20 per dividend-bearing share and to allocate the remaining amount to profit reserves. The resolution was passed with a majority of 99.5%.

Discharge (items 3 and 4) The members of the Board of Managing Directors and Supervisory Board were discharged with a majority of 99.8% and 99.2% respectively.

Anticipatory resolutions on authorised and additional core capital (items 7 to 9) The Annual General Meeting resolved to revise the stock resolutions on authorised capital as proposed. Furthermore, the Board of Managing Directors was granted a new authorisation to issue profit participation rights and other hybrid bonds which are recognised as additional Tier 1 capital (AT 1 Capital). The anticipatory resolutions are intended to replace the yet valid decisions of 2015.

The precise voting results on the individual items on the agenda can be found at www.commerzbank.com/agm.

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Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

***

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Commerzbank’s shareholders will today vote on the proposal by the Board of Managing Directors and Supervisory Board to pay a dividend for financial year 2018. If the Annual General Meeting (AGM) adopts the proposal, the distributable profit for the year of €262 million posted in the financial statements will be used to pay a dividend of €0.20 per dividend-bearing no-par-value share, and the remainder will be allocated to other revenue reserves (pay-out total: approximately €250 million).

“I am pleased that we are able to propose to the Annual General Meeting that a dividend be paid again,” said Stefan Schmittmann, Chairman of the Supervisory Board of Commerzbank. “This will enable our investors and shareholders to share in the Bank’s progress on its path to higher profitability”.

Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank, added: “We have made very good progress in terms of our strategy, and the momentum in our customer business remains undiminished. We have also significantly improved our results – even if they do not yet fully meet our expectations. We will continue to work hard to increase profitability”.

In financial year 2018, the operating profit under the international accounting standard IFRS for the Commerzbank Group came to €1,245 million. The net profit attributable to shareholders amounted to €865 million.

In the AGM, the anticipatory resolutions on the authorised capital are to be rewritten. Furthermore, the Board of Managing Directors is to be granted new powers to issue profit-sharing rights and other hybrid notes that are recognised as Additional Tier 1 Capital (AT 1 Capital). The anticipatory resolutions are intended to supersede the resolutions from 2015 currently in force.

The Bank still expects higher underlying revenues for the year in progress. Costs are continuing to be cut and are expected to be below €6.8 billion at year-end. “We will take advantage of the current structural change in the banking market to further enhance our standing with our customers. Our top priorities are growth and speed. With Campus 2.0, we will improve our time to market for new products and services and increase our efficiency,” said Zielke.

Commerzbank also already announced on publication of its results for financial year 2018 that it is aiming to pay a dividend for financial year 2019 as well. The pay-out ratio is expected to be on a level comparable to 2018.

The agenda can be found at www.commerzbank.com/agm, along with other AGM-related documents and a link to the speech of the Chairman of the Board of Managing Directors. The Twitter hashtag for the AGM is #CobaHV.

***

Press contact

Margarita Thiel +49 69 136-46646

Erik Nebel +49 69 136-44986

Maurice Farrouh +49 69 136-21947

***

About Commerzbank

***

Disclaimer

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Commerzbank grew in terms of both customers and assets in the first quarter of 2019 and slightly increased its underlying revenues in the customer segments. Particularly the net interest income profited from growth initiatives and helped to compensate continued margin pressure and new regulatory requirements in the securities business (MiFID II). The Private and Small-Business Customers segment saw a marked increase in its customer growth compared to the first quarter of 2018 and is on track with its strategy implementation. The Corporate Clients segment increased its loan volume further and improved its operating profit compared to the first quarter of 2018 thanks to its business with the Mittelstand and large corporates. Overall, the realigned Corporate Clients segment posted an increase in revenues from core products like loans, cash management and trade finance. The revamp of the Bank’s head office via the programme “Campus 2.0” is progressing as planned and is expected to be completed in July 2019.

“We are addressing the right issues with our strategy”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “Our growth with customers and assets is enabling us to strengthen our revenue base thereby compensating the effects from low interest rates and margin pressure. We’ll leverage the current momentum with our customers to further implement our strategy. With Campus 2.0 we will become ever more efficient. And of course we will continue to work on our profitability”.

Group revenues came to €2,156 million in the first quarter of 2019, after €2,217 million in Q1 2018 which had profited from exceptional items and valuation effects. Underlying revenues totalled €2,190 million and were slightly down on the previous year (Q1 2018: €2,216 million). Underlying revenues in the client segments, Private and Small Business Customers and Corporate Clients, registered a slight year-on-year increase.

Operating expenses were down to €1,834 million and in line with full-year expectations (Q1 2018: €1,882 million), despite an increase in compulsory contributions. At €265 million compulsory contributions were nearly 10% higher than in the first quarter of 2018 (Q1 2018: €244 million). This increase was attributable to the bank levies which need to be booked in the first quarter and was overcompensated by continued cost management and staff reductions. The Bank continued with its strategic investments in digitalisation and growth using fewer external suppliers, as announced. Overall, operating expenses were cut to €1,569 million (Q1 2018: €1,638 million).

The risk result remained low in the first quarter, at minus €78 million (Q1 2018: minus €77 million). It benefited from lower loan losses, which even offset the effect of write-backs of loan loss provisions in the previous year. The non-performing loan (NPL) ratio remained very low, at 0.9% (Q1 2018: 1.0%). It reflects the still favourable credit environment, as well as the Bank’s prudent lending standards and high portfolio quality.

The operating profit came to €244 million, supported by a 12% increase in net interest income (Q1 2018: €258 million). The pre-tax profit declined year on year to €225 million (Q1 2018: €301 million). The net result attributable to Commerzbank shareholders amounted to €120 million (Q1 2018: €262 million). The reason was a higher tax burden of about €90 million. In the previous year, tax refunds had a positive impact. Additionally, the tax ratio rose as a result of higher compulsory contributions which are largely non-tax deductible. The net result was also impacted by the year-on-year €60 million weaker performance of the discontinued Equity Markets and Commodities business. Earnings per share came in at €0.10 in the first quarter (Q1 2018: €0.21).

The Common Equity Tier 1 ratio (CET 1) stood at 12.7% at the end of March (end of December 2018: 12.9%; March 2018: 13.3%). This reflects the effects of the introduction of the international accounting standard IFRS 16 at the start of the year, which, as expected, resulted in a deduction of 16 basis points. The ratio already includes an accrual for the planned dividend in line with the 2018 pay-out ratio.

“Business with our clients remains on a positive track. Even in a very competitive environment, Q1 is proof of the resilience of our corporate clients business and an example of what is possible. The challenge now is to build on this progress”, said Stephan Engels, Chief Financial Officer of Commerzbank. “We are continuing to implement cost reductions despite further increases in compulsory contributions and ongoing strategic investments. Our cost targets remain unchanged”.

Development of the segments

The Private and Small Business Customers (PSBC) segment gained a total of 123,000 net new customers in Germany in the first quarter, almost twice as many as in the first quarter of 2018. Assets under Control in Germany went up by €21 billion to €402 billion between the end of December and the end of March, thanks in part to the recovery of market indices (Q4 2018: €381 billion). That means assets are currently above the target level for 2020 and have risen by €66 billion since the end of 2016. The mortgage lending business also performed strongly. Portfolio volumes were up 9% compared to March 2018 at €76.5 billion (March 2018: €70.4 billion). New business in mortgage lending in the first quarter amounted to €4.2 billion, which is almost €1 billion higher than the figure for the first quarter of 2018. The consumer loan book totalled €3.7 billion as of March 2019 (December 2018: €3.6 billion).

First-quarter revenues after adjustment for exceptional items stood at €1,220 million (Q1 2018: €1,211 million). Operating expenses were trimmed by €17 million to €870 million, while charges arising from compulsory contributions climbed by €29 million. The risk result remained virtually stable at minus €52 million (Q1 2018: minus €49 million). Overall, the segment generated an operating profit of €153 million in the first quarter (Q1 2018: €203 million). In the first quarter of 2018 the profit had been supported by a non-recurring item of €52 million from the sale of the Polish group insurance business.

The Corporate Clients segment gained 800 new clients since the start of the year, bringing the total number of new clients gained since the start of 2016 to 9,700. With prudent lending standards still in place, the corporate loan book expanded by €2 billion compared to the fourth quarter of 2018 to €84 billion.

On the back of this growth in lending, net interest income rose by 12% versus the first quarter of 2018, which contributed to stable revenues of €861 million (Q1 2018: €864 million). The contribution from the Mittelstand and International Corporates divisions increased compared to the first quarter of 2018. After the successful realignment of the segment, the core products loans, cash management, trade finance, and capital market solutions all showed an improvement on the previous year. This means all of the divisions’ core products made a positive contribution to the revenue performance. The Financial Institutions division recorded stable revenues year-on-year after its realignment despite weakening global trade activities. This shows that the investments for compliance over the previous years are paying off. Overall, Corporate Clients’ underlying revenues came to €869 million (Q1 2018: €865 million).

The segment cut its operating expenses excluding compulsory contributions by a good 3% to €619 million (Q1 2018: €642 million). Thanks to the continued high quality of the loan book, the risk result remained low in the first quarter of 2019 at minus €28 million (Q1 2018: minus €25 million). Corporate Clients improved its operating profit, in a still challenging environment, to €121 million (Q1 2018: €98 million).

In the Asset & Capital Recovery (ACR) segment, revenues fell to €11 million (Q1 2018: €45 million) in line with the further run-down of legacy portfolios which were reduced by a total of €300 million in the first quarter. The Group ship finance portfolio contracted to a volume of around €300 million, and by the end of March comprised only 38 financed ships. The segment’s operating profit amounted to minus €7 million (Q1 2018: €16 million).

Outlook

The Bank will continue its growth strategy in 2019 and is expecting higher underlying revenues than in the previous year. It is targeting a Common Equity Tier 1 ratio of at least 12.75% by the end of 2019. The cost base should remain below €6.8 billion in 2019, while the drag from the risk result is expected to be at least €550 million. The Bank is planning to maintain a pay-out ratio for financial year 2019 at a level comparable to 2018.

*** From approximately 7 am onwards you can find broadcast-ready video material with a statement by Stephan Engels at http://mediathek.commerzbank.de/.

*** Press contact Nils Happich +49 69 136-80529 Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

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“It made sense to evaluate this option for domestic consolidation in Germany. However, we were always clear: we needed to be convinced that any potential combination would generate higher and more sustainable returns for shareholders and allow us to enhance our value proposition to clients,” said Martin Zielke, CEO of Commerzbank. “After thorough analysis, we have concluded that this transaction would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration. I would like to thank Christian Sewing and everyone involved for the constructive discussions over the past few weeks. We will continue our strategy, grow together with our clients and invest in our future”.

*** Press contact Margarita Thiel +49 69 136-46646 Maximilian Bicker +49 69 136-22440

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Raisin’s German savings platform WeltSparen (www.weltsparen.de) is collaborating with Commerzbank to reach the bank’s corporate clients in Germany. In the segment of corporate clients Commerzbank is Germany’s market leader. The partnership enables Commerzbank to provide its corporate clients exclusive access to special conditions on fixed-term deposits. In addition to Commerzbank’s own products, corporate clients can now benefit from 3-month to 4-year term deposit offers from select German partner banks. To start with, the cooperation is focused on limited liability corporations (known in Germany as GmbH’s) and will be gradually expanded to include further legal entities.

Just as interest rates have fallen for retail savings products, rates on corporate deposits have also decreased and in some cases are yielding negative returns. With this collaboration Commerzbank’s corporate clients will be able to invest beyond the bank, securing rates well above the current market level in Germany,’ explained Dr. Daniel Berndt, Raisin’s Chief Client Officer.

The partnership will start by featuring fixed-term deposits from German credit institutions such as GRENKE BANK, NIBC BANK and GEFA BANK. Commerzbank selected all the cooperating banks from Raisin’s more than 70 current partner banks, and will regularly review further partnership options as the cooperation unfolds.

The fixed-term deposits offered by Commerzbank will be managed centrally via WeltSparen by the respective partner banks. Commerzbank will be able to provide its corporate clients an additional digital solution for their savings.

Press contacts:

Nicole Scheplitz Head of Corporate Communications Raisin GmbH T +49 (0) 30 36 74 119 38 M +49 (0)160 218 65 24 press@raisin.com https://www.weltsparen.de https://www.raisin.com

Bernd Reh Senior Spokesman Corporate Banking Germany T +49 (0) 69 136 46971 M +49 (0) 170 914 37 34 bernd.reh@commerzbank.com https://www.commerzbank.de

***

About Raisin / Weltsparen A trailblazer for open banking and the leading pan-European one-stop shop for online savings and investments, Berlin-based fintech Raisin was founded in 2012 by Dr. Tamaz Georgadze (CEO), Dr. Frank Freund (CFO) and Michael Stephan (COO). Raisin’s platforms — under the brand WeltSparen in the German-speaking world — are breaking down barriers to better savings for European consumers and SMEs: Raisin’s marketplace offers simple access at no charge to attractive and guaranteed deposit products from all over Europe, as well as globally diversified, cost-effective ETF portfolios (now available in Germany). With one online registration, customers can choose from all available investments and subsequently manage their accounts. Since launch in 2013, Raisin has brokered 12 billion EUR for more than 170,000 customers in 31 European countries and over 70 partner banks. Raisin was named to Europe’s top five fintechs by the renowned FinTech50 awards and is backed by prestigious European and American investors such as PayPal, Thrive Capital, Index Ventures and Ribbit Capital.

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Of particular note are the following additional items to the agenda:

Resolution on the use of distributable profits (item 2)

The Board of Managing Directors and the Supervisory Board of Commerzbank propose that the distributable profits of €262 million for the financial year 2018, as reported in the annual financial statements, are used to pay a dividend of €0.20 per dividend-bearing share, and that the remaining amount be allocated to the revenue reserves.

Anticipatory resolutions on authorised and additional core capital (items 7 to 9)

In addition, the anticipatory resolutions on authorised capital are to be revised. Furthermore, the Board of Managing Directors is to be granted a new authorisation to issue profit participation rights and other hybrid bonds which are recognised as additional Tier 1 capital (AT 1 Capital). The anticipatory resolutions are intended to replace the currently valid decisions of 2015.

Shareholders who have registered by the end of 15 May 2019 are entitled to participate in the Annual General Meeting and to exercise voting rights. The speeches of the Chairman of the Supervisory Board and the Chairman of the Board of Managing Directors at the Annual General Meeting may be viewed live on the internet on 22 May 2019 from 10 a.m. onwards at www.commerzbank.com/agm. The entire meeting will be transmitted live on the internet for shareholders from 10 a.m. (. The hashtag on Twitter for the Annual General Meeting is #CobaHV.

The full details of the invitation to the 2019 Annual General Meeting, including the agenda and explanations of the individual items, can also be found at www.commerzbank.com/agm.

*** Press contact Erik Nebel +49 69 136-44986 Nils Happich +49 69 136-80529

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Today, at Commerzbank’s first Belt & Road Initiative (BRI) workshop, Michael Reuther, Member of the Board of Managing Directors responsible for Corporate Clients, opened the event commenting: “We want to enable our clients to gain better access to the opportunities BRI provides”.

The event aimed to lift the lid on BRI as it continues apace; creating new trade and investment links between China and countries along the route. The necessary capital of BRI comes from diverse sources – some is Chinese foreign investment, but more and more is contributed as international co-financing. Commerzbank’s economic research team expects Chinese-led direct investment in BRI projects to exceed US$80bn by 2025, doubling the amount of 2018. It is also projected that new construction contracts related to BRI projects will be more than USD$150bn every year from now until 2025.

Hosted after Commerzbank’s flagship event, the Global Economy & Capital Markets Forum, the BRI workshop held in Frankfurt welcomed over 200 attendees and the following panellists:

Roland Boehm, Head of Corporates International at Commerzbank and panellist at the event, commented: “With global growth predicted to remain muted we have, as a market leader in foreign trade financing, a role to play in educating and highlighting opportunities to our clients. Investment in BRI may eventually reach US$1tn, and the potential impact to global trade and financing will be important for our Mittelstand clients as well as our multinational clients. BRI is a mega trend, and we want all clients to have access to services which will support their BRI business ambitions”.

“As the German market leader in foreign trade we support our corporate and institutional clients in their investment ventures abroad. Commerzbank’s strong trade finance capabilities will add value for our clients as they navigate business opportunities along the BRI trading corridors. Building on our international presence and our global Financial Institutions network we are the bank at the side of our clients when going abroad,” said Nikolaus Giesbert, Head of Trade Finance & Cash Management at Commerzbank.

Commerzbank has been accompanying and financing global trade since 1870 and has been present in Asia for more than 50 years, with the first representative office in Beijing opening over 30 years ago. The Bank settles approximately 30% of Germany’s foreign trade business.

In 2018, Commerzbank signed a memorandum of understanding with the Industrial and Commercial Bank of China to support projects linked to the BRI.

*** Press contact Claire Tappenden +44 (0)20 7475-5161

***

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In the first quarter, German economy performed weaker than expected. According to Commerzbank Research, the German gross domestic product hardly grew during this period. "This reduces the foundation for our year-end forecast, which we are lowering from 0.6% to 0.4%," said Commerzbank chief economist Jörg Krämer on Friday in Frankfurt. However, the outlook for the second half of the year remains unchanged. "Domestic demand is robust and the Chinese economy is expected to recover, which will revive exports to China," Krämer said.

However, Germany and the Eurozone are still suffering from the slowdown in foreign trade. "The economy continues to be in a gray area between a marked slowdown and a recession," said Krämer. Recession should be avoided if the Chinese economy stabilises towards the middle of the year. For the Eurozone, Commerzbank economists expect growth of 0.9% in 2019.

Commerzbank experts continue to regard a disorderly Brexit as possible. However, they welcome the direct talks between Prime Minister Theresa May and the leader of the Labour Party, Jeremy Corbyn. "The United Kingdom and the European Union could agree on a customs union at the very last minute," said Krämer. "Common external tariffs in a customs union could prevent the ‘unpopular’ backstop."

Meanwhile, things are going better in the USA. “In July, the US upturn will be the longest since 1854,” said Krämer. “But upswings do not die of old age, but of exaggeration”. Krämer, however, still doesn’t see major exaggerations in the market. Commerzbank economists are expecting US growth to slow down to 2.5% in 2019 (2018: 2.9%). This is specifically due to the decreasing impetus of last year’s tax cuts and the growing labour shortage.

With regard to the monetary policy in the Eurozone, Commerzbank analysts expect that in autumn the European Central Bank (ECB) will decide to leave key rates unchanged not only until the end of 2019 but until the end of 2020. For next Wednesday’s meeting, the Bank's experts do not expect any resolutions on details of long-term tender operations (TLTRO).

*** Press contact Stefan Gringel +49 69 136-51435 stefan.gringel@commerzbank.com

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LBBW and Commerzbank together have reached a milestone in the digitisationof commercial transactions based on distributed ledger technology (DLT). In order to secure payments from two commercial transactions, the necessary data transfer between Voith and KSB was for the first time ever carried out digitally and processed using the trade finance network Marco Polo on R3’s Corda blockchain platform.

As part of a pilot project, two commercial transactions between the international technology group Voith, and the leading pump and valve manufacturer KSB SE were mapped for the first time ever using blockchain technology. One transaction involved the delivery of special hydraulic couplings from Germany to China and the other the delivery of pumps within Germany.

In the transactions, order and delivery details were agreed between the companies via the Marco Polo network and the payment term was secured by a conditional payment commitment from the buyer’s bank. After delivery, the corresponding delivery details were entered into the network and automatically matched with previously agreed data, triggering an irrevocable payment obligation on the part of the buyer’s bank. The overall flow of information was efficiently and transparently mapped by R3’s Corda blockchain platform.

The number of intermediaries involved and the large number of physical documents make securing payments of commercial transactions with traditional instruments highly complex and labor intensive. The DLT platform from Trade IX, the technology partner for the Marco Polo network, makes it possible to secure the transaction by a payment commitment through the digital exchange of trade data, which can also be financed on behalf of the supplier by the supplier’s bank. Financing was also part of the pilot transaction.

In the wake of the successful pilot project, the next step will focus on the complete execution of transactions via the Marco Polo network with a direct connection to the customers’ management systems (ERP integration) in order to offer customers a seamless process. In future, the network is planned to be expanded by further banks and participants from the transportation and insurance sectors so that the entire value chain for foreign trade transactions is represented digitally with data.

Voith has long been committed to digital communication with banks in the trade finance sector. Both LBBW and Commerzbank are among the approximately 30 banks, which communicate with the multibank standard of SWIFT MT798. The use of DLT technology promises additional optimization potential, which should be exploited by companies. Voith has explored the market for current DLT technology solutions and, due to the architecture and variety of current and planned modules, decided to test Marco Polo and the underlying Corda technology as a first step. In doing so, Voith chose LBBW and Commerzbank as agile and active banks.

Gerald Böhm, head of Guarantees and Trade Finance at Voith, says: “Voith is always interested in innovative technology solutions in the field of finance. The cooperation with LBBW and Commerzbank offers us an opportunity to actively shape and incorporate the company’s perspective into the further development of the products on offer (here the payment commitment). Despite the elation surrounding the successful execution of the first two commercial transactions via the platform, a great deal of work still lies ahead. For example, in spite of the numerous advantages that are independent of the specific platform, standardised global governance must be established for the digital execution of commercial transactions”.

By participating in the project, KSB hopes to bring the conventional principles of trade finance into the digital future. “With Marco Polo we see an opportunity to take a significant step towards increased security, more efficiency and greater settlement speed in the area of payment processing. It is exciting to see state-of-the-art technologies such as distributed ledger being applied in an area as “outmoded” as trade finance. We would also like to take on a pioneering role in this area in cooperation with innovative partners such as Voith, Commerzbank and LBBW,” explains Ralf van Velzen, head of Export Financing at KSB SE & Co. KGaA.

As one of the founding banks of Marco Polo, Commerzbank recognised the potential of distributed ledger technology for the trade finance business early on and actively shaped it in various initiatives. At its DLT lab in the main incubator, the Group-wide research and development unit, Commerzbank is testing relevant prototypes in many business areas together with its clients and is working on new solutions for capital markets as well as trade finance. The creation of an international trade finance network such as Marco Polo is in parallel with the joint research initiative of Commerzbank and Fraunhofer Institute.

“We are very pleased to have successfully conducted the first trade finance pilot at Marco Polo. The transaction proves that blockchain technology offers our clients a payment undertaking and state-of-the-art financing for trade transactions with both foreign countries and domestically. We place particular emphasis on collaboration with experienced and interested corporate clients such as KSB and Voith as well as banks such as LBBW. We see a valuable opportunity here to work together to develop and bring to the market innovative trade finance solutions,” says Nikolaus Giesbert, divisional board member for Trade Finance & Cash Management at Commerzbank.

For LBBW, trade finance is the third area of application for distributed ledger technology after the Schuldschein and securitisation businesses. The bank's approach in this regard is to test DLT on real transactions with tangible customer benefit. Because the success of new trade finance projects depends on the number of participating banks, last year LBBW became a founding member of Marco Polo, the fastest-growing trade finance network based on Corda blockchain technology.

Dr Christian Ricken, member of the Board of Managing Directors of LBBW and head of the capital market business and asset management / international business, says: “With trade finance, we are tapping into a new area of application for distributed ledger technology from which our clients will derive extraordinary benefit. It will make transactions faster, easier and more secure. Not only are we breaking new ground in terms of technology, but also in the cooperation between banks and businesses. We launched this pilot project in conjunction with Commerzbank and our customers Voith and KSB and we now intend to develop the software in an open and agile exchange”.

The basis of the company's success is an innovative technology based on its own research and development work. The activities of the KSB research centres concentrate on hydraulics, materials development and the automation of pumps and valves. Excellent efficiencies, energy-saving motors as well as equipment for the control and monitoring of system components ensure a high level of energy efficiency.

With over 170 service centres and around 3,000 service employees, KSB provides inspection, maintenance and repair services worldwide. All-in service and operations management complete the service portfolio.

Further Information https://www.marcopolo.finance/ https://www.r3.com/ https://tradeix.com/

Media Contacts LBBW: Bernd Wagner +49 711 127-76402 bernd.a.wagner@LBBW.de

Commerzbank: Josefin Altrichter +49 69 136-80209 josefinmarie.altrichter@commerzbank.com

In its Annual Report published today, Commerzbank reports on its figures for the past financial year. The key figures in the consolidated income statement are unchanged compared to the provisional figures communicated on 14 February 2019. The operating profit for 2018 stood at €1,245 million (2017: €1,149 million). Commerzbank achieved a positive consolidated profit attributable to Commerzbank shareholders of €865 million, compared to €128 million in the previous year.

“In our core business, we grew further thanks to steady gains in new customers and an increase in assets under management and credit volume. Also, the high quality of our service and advice was once again acknowledged externally. This is expressed also in customer satisfaction, which is consistently at a very good level”, writes Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank, in the Annual Report to the shareholders.

“Overall, the growth paid off. In financial year 2018, income before loan loss provisions adjusted for positive one-off income and remeasurement effects rose by 5% to €8.6 billion”, adds Martin Zielke. “Ongoing strategic investment in digitalisation and technology and higher regulatory charges and levies were offset through strict cost management.“

The Private and Small-Business Customers segment reached a major strategic milestone in new customer growth: the segment has gained one million net new customers since the “Commerzbank 4.0” strategy was launched, with just under 420,000 in 2018 alone. Assets grew by €46 billion since 2016. The Corporate Clients segment has also continued its growth path. Since the beginning of 2016, the Bank has gained around 8,900 new corporate customers, mainly German small and medium-sized enterprises, with more than 3,500 of these coming on board last year. Total lending with corporate customers has increased by around €4 billion to €82 billion.

The risk reduction of recent years continued to pay off in 2018. The Bank passed the EBA stress test last year with a good result, despite further intensification of the crisis scenario. In addition, the European Central Bank (ECB) reduced the minimum requirement for the Common Equity Tier 1 (CET 1) ratio by 0.25 percentage points following the completion of the 2018 Supervisory Review and Evaluation Process (SREP). At the end of December 2018, the CET 1 ratio stood at a comfortable 12.9% and considerably exceeded all the applicable regulatory requirements.

The individual financial statement of Commerzbank AGpursuant to the provisions of the German Commercial Code (HGB) states a net profit for the 2018 financial year of €262 million (2017: €176 million). This includes the servicing of all profit-related capital instruments of Commerzbank AG. Subject to the approval of the decision-making bodies, the appropriate balance sheet profit is to be used to distribute the dividend of 20 cent per share planned by the Executive Board and to further strengthen retained earnings.

Outlook

”The environment in 2019 will remain challenging and, in spite of much progress, numerous tasks still lie ahead of us,“ Martin Zielke writes in the outlook. “We intend to continue our growth unabated in private and corporate customer business in order to gain more market share and increase our adjusted income. We will transfer our experience with the Digital Campus to large parts of the central organisation. We want to pick up the pace in this regard and become much faster at providing our sales force with viable products and services for our clients. All in all, we expect consolidated profit in the current financial year to be slightly higher than last year.“

Commerzbank is forecasting a slightly higher income overall for the current financial year, operating expenses below €6.8 billion, and a significantly higher risk result. This will result in a slight rise in operating profit and the cost/income ratio should improve slightly. Following the reduced SREP requirements, the ambition for the Common Equity Tier 1 ratio at the end of 2019 is at least 12.75%. Commerzbank is aiming to pay a dividend in 2019 at a level comparable to 2018.

The 2018 Annual Report can be found on the internet at www.commerzbank.com/annual-report2018.

*** Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986

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Commerzbank and Deutsche Börse have for the first time successfully used distributed ledger technology to execute a legally binding settlement of a repo transaction. The prototype transaction based on delivery versus payment was executed as part of a joint proof of concept examining the possible use of blockchain technology in securities settlement.

For the transaction, digital tokens were generated for both commercial bank money (cash tokens) and securities (securities tokens). Distributed ledger technology was then used to execute the simultaneous swap of the tokens as a legally binding transaction. Deutsche Börse acted as the cash provider, Commerzbank as the borrower and main incubator, Commerzbank’s research and development unit, acted as the blockchain platform operator. The technology used and the underlying legal concept were developed jointly by the partners.

The successful transaction shows that a legally-binding, efficient and transparent movement of tokenised securities and cash on blockchain based on a ‘delivery versus payment’ principle is feasible. Distributed ledger technology creates an immediate and simultaneous transfer of assets so that the transaction can be settled in real time. The key benefits of this shortened execution time are the reduced counterparty risk and the corresponding reduction of capital costs. This technology also permits the direct and transparent involvement of regulators and oversight authorities.

The repo transaction is based on a public note of KfW Bank Group (ISIN DE000A2LQSP7) amounting to EUR 10 million and a seven-day term with a negative interest rate of -0.5%. Repos are collateralised money market instruments, which banks use to cover their short-term liquidity requirement by depositing securities.

“Through the systematic development of blockchain technology, DLT is increasingly gaining in importance for a growing market. In past pilots we have focused on new issue projects; with the transaction between Deutsche Börse and Commerzbank we were now for the first time able to convert existing securities into digital tokens. We are delighted to support the transaction as a platform operator and, together with Deutsche Börse, to have reached such an important milestone in the adaptation of this future technology for the capital market”, said Michael F. Spitz, CEO of main incubator, the R&D unit of the Commerzbank Group.

“The successful execution as part of the joint project motivates us to explore the efficiency of distributed ledger technology further. Our particular focus here is on the integrated payment function - cash on ledger - which we have successfully demonstrated. The development of different blockchain applications and setting new standards is a high priority for Deutsche Börse Group, and we will push ahead with this process in close exchange with partners, supervisory authorities and central banks”, stated Jens Hachmeister, Head of DLT, Crypto Assets and New Market Structures at Deutsche Börse.

The results of the prototype settlement can serve as the basis for further developments. The next steps are linked closely to the creation of underlying legal conditions which are a requirement for a binding assessment of contractual relationships. The parties involved see themselves as trailblazers in this young technology and seek to create cornerstones for the financial market infrastructure.

**** Press contact Commerzbank Josefin Altrichter +49 69 136 80209 JosefinMarie.Altrichter@commerzbank.com

Press contact Deutsche Börse

Leticia Adam +49 69 211 12 766 leticia.adam@deutsche-boerse.com

**** About Commerzbank Commerzbank is a leading international commercial bank with locations in just under 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the needs of its clients. Commerzbank finances around 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German business world, the Bank is also a leading provider of capital market products. Its subsidiaries comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, the Bank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

**** About Deutsche Börse Deutsche Börse Group is one of the largest exchanges worldwide. It operates markets characterised by integrity, transparency and security for investors wishing to invest capital and for companies wishing to raise capital. On these markets, professional traders buy and sell shares, derivatives and other financial instruments in accordance with clear rules and under strict supervision. Deutsche Börse Group’s services and systems ensure that these markets can operate and all participants have equal opportunities – worldwide.

**** PDF, 392 kB

Hanover, Frankfurt, Munich, February 21, 2019. For the first time, Continental, Commerzbank and Siemens have carried out a test transaction as part of a pilot project to process a money market security between the companies using blockchain technology. The transaction took place in January. It had a volume of €100,000 and a term of three days. Continental was the issuer of the money market security, which was in the form of a euro-denominated electronic commercial paper according to legal requirements stipulated in the Luxembourg law. Commerzbank provided the Corda-based blockchain platform through its research and development unit, Main Incubator, and acted as a service partner. Siemens subscribed to the money market security as an investor. Corporate law firm GSK Stockmann provided legal advice on the transaction.

The main motivating factor for Continental and Siemens to carry out this project was to experiment with blockchain technology in practice with a view to using it in the medium to long term for regular financial transactions as well. In this pilot project, the transaction was initiated and settled directly between the two companies. A regular securities transaction between two companies was used as a starting point. The companies not only generated the money market security, but also processed the trade (including payment processing) in a legally binding manner using blockchain. The documents and funds were exchanged in a matter of minutes rather than days using this process. Unlike with conventional transactions, Commerzbank was no longer acting as a broker between contracting parties for this particular transaction, but as a platform operator and service partner. It provided the platform and all the technical requirements for blockchain trading, the legal structure and the digital money for direct trading of the money market security (based on e-money as financial collateral, “cash on ledger”).

Stefan Scholz, head of Finance & Treasury at Continental, was pleased with the successful outcome of the project, and commented, “Blockchain made the process even quicker and more effective. Working with our project partners, Siemens and Commerzbank, we tested the feasibility of using blockchain in the Finance department and it proved to be a success. I’m proud of this pioneering achievement. We gained some new experience across various areas of our companies in both a technical and legal respect and also in terms of interlinking between the specialist departments”. Direct contact (including with investors in short-term bonds), considerable flexibility and efficiency combined with increased security, as well as enhanced transparency, are some of the advantages that Continental sees in using blockchain technology in the Finance department.

Peter Rathgeb, corporate treasurer at Siemens, added, “It was important for us to test this technology at an early stage and develop action points for the future. There are clear advantages of using this technology, including significantly shorter processing times and faster time to market. Some of the major challenges revolve around the security and performance aspects and the legal area, such as the importance of creating a consistent European understanding of the standards and legal points involved when it comes to blockchain-based transactions”.

“While markets and technologies are constantly changing, established relationships with customers remain an important asset. We are pleased to be assisting our customers with the process of digital transformation through transactions like these. Blockchain technology has tremendous potential in making capital market transactions quicker, more straightforward and more efficient for our customers,” said Roman Schmidt, Commerzbank’s divisional board member for capital markets.

Processing money market securities usually takes up to two days

Money market securities are used to satisfy companies’ short-term financing requirements. Traditional aspects such as affordable financing costs and flexibility are particularly important with this form of short-term liquidity management. Blockchain will change aspects such as transparency, direct contact with investors and prompt settlement of transactions. The latter will change particularly with regard to the very short terms typically seen for money market securities. Payment and payment processing normally take two days. This is because of clearing systems, which are used to settle payments between accounts and involve a certain time lag.

Blockchain technology enables direct contact and more efficient processing

Blockchain is a special form of distributed ledger technology (DLT). It involves a local database that is used to store replicated, shared and synchronized digital data. All users of a DLT network have access to the same data at the same time. They also have shared write and read rights to the data and shared transparency. This causes a shift in the role of central broker – which is usually performed by banks in the context of financial transactions. State-of-the-art encryption and signature processes based on asymmetric cryptography are used, and are now considered to be practically tamper-proof.

The first dematerialized transaction of money-market securities

For the first time a digital money market security transaction was processed in a legally binding manner. This also made the transaction a lot faster and more efficient to process than before. It was possible because unlike similar blockchain transactions that have been processed previously, this transaction involved a security displayed entirely in blockchain form. The money market security was issued purely in digital form, with the purchase price amount in euros converted by Commerzbank – which has an e-money license – into digital money, so that payment could be made using blockchain. All requirements relating to this transaction were handled by digital and legally binding means using blockchain technology. Immediate value dating and real-time settlement were also possible. This is being regarded as the first step toward technical scaling of automated securities issues.

In the pilot transaction, the security was issued in accordance with Luxembourg law. Consequently, the security was issued, signed and traded digitally using a qualified electronic signature. In addition, for the security trade to be displayed directly and digitally as a delivery vs. payment transaction, the e-money held as financial collateral by Commerzbank was furnished digitally via blockchain, enabling the companies to exchange the security instantly for e-money.

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers, and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees.

About Continental Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transportation. In 2018, Continental generated preliminary sales of around €44.4 billion and currently employs approximately 244,000 people in 61 countries and markets.

About Siemens Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 170 years. The company is active around the globe, focusing on the areas of electrification, automation and digitalization. One of the largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of efficient power generation and power transmission solutions and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry. With its publicly listed subsidiary Siemens Healthineers AG, the company is also a leading provider of medical imaging equipment – such as computed tomography and magnetic resonance imaging systems – and a leader in laboratory diagnostics as well as clinical IT. In fiscal 2018, which ended on September 30, 2018, Siemens generated revenue of €83.0 billion and net income of €6.1 billion. At the end of September 2018, the company had around 379,000 employees worldwide. Further information is available on the Internet at www.siemens.com.

Contact GSK Stockmann Peter Scherer, +49 69 710003-154, peter.scherer@gsk.de

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The European Central Bank (ECB) has reduced the bank-specific capital requirements (Pillar 2 Requirement) for Commerzbank by 0.25 percentage points to 2.0% after the 2018 Supervisory Review and Evaluation Process (SREP). This reflects the major progress the Bank made in the improvement of its risk profile, including the reduction of its credit risks.

The successful reduction of risk profile and balance sheet in recent years is also reflected in the decision of the German supervisory authority to keep the buffer for otherwise systemically important institutions (O-SII) at 1.0% for 2019. The originally scheduled increase to 1.5% has been postponed.

The pure Common Equity Tier 1 (CET 1) requirement for Commerzbank now stands at 10.11% for this year. This requirement consists of the Pillar 1 Minimum of 4.5%, the Pillar 2.0 Requirement of 2.0%, the Capital Conservation Buffer of 2.5%, the buffer for otherwise systemically important institutions (O-SII) of 1.0% and the Countercyclical Capital Buffer of 0.11%. With a CET1 ratio of 12.9% at the end of 2018, Commerzbank was well above regulatory requirements. The Bank is targeting a CET1 ratio of at least 12.75% by the end of 2019.

*** Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986

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In the second year of its strategy implementation, Commerzbank increased its operating profit to €1.2 billion (2017: €1.1 billion) and its net profit to €865 million (2017: €128 million). The quality of its earnings significantly improved on the back of the successful growth in both core segments. Revenues after adjustment for exceptional items were up 5% year-on-year despite margin pressure. The target of one million net new customers was reached. Against a background of unchanged prudent lending standards, the corporate loan book has expanded by €7 billion or 9% since the end of 2016. Investments in digitalisation remained high, and operating expenses for 2018 were in line with expectations at just under €6.9 billion. The interlinking of IT with the product areas at head office is designed to help drive digitalisation forward. Work towards the strategic goal of further simplifying the Group has advanced as planned; following the signing of the purchase agreement with Société Générale in November 2018, the EMC business is now reported separately as “discontinued operations” in line with the accounting standard IFRS 5. The Bank further reduced its legacy portfolios in the Asset & Capital Recovery segment and was able to decrease its shipping portfolio to below €500 million by year end. The Bank has firm foundations, with a clean balance sheet and a significantly strengthened compliance function.

“Our strategy is right and is working. We are growing in terms of customers, lending volume and underlying revenues. We are making progress and this shows in our ability to pay a dividend”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “But it has also become clear during the first half of Commerzbank 4.0 that, given the challenging environment, we need to move even faster. That is why we are revamping our head office and interlinking the IT with our product areas. This will help us drive digitalisation forward and bring our offering to the market even quicker and more efficiently”.

Group revenues stood at €8,570 million for 2018 (2017: €8,764 million). The Bank increased its underlying revenues by a total of €441 million to €8,648 million in 2018 (2017: €8,208 million). This shows the quality of revenues has been substantially improved. In 2017, revenues were boosted by exceptional items and valuation effects of €557 million, whereas in 2018, these effects amounted to minus €78 million. This revenue swing was largely compensated for by the growth in the segments’ operating business. The growth initiatives led to a marked improvement in net interest income. In the fourth quarter of 2018, the Bank increased its underlying revenues slightly quarter-on-quarter to €2,151 million (Q3 2018: €2,122 million).

Operating expenses were in line with expectations in 2018. They amounted to €6,879 million (2017: €6,834 million). The slight increase on the previous year was due to ongoing strategic investments in digitalisation and technology. Also, costs arising from regulatory charges and compulsory levies continued to increase in 2018, reaching €420 million. The Bank managed to counteract these developments by means of strict cost management. Costs were down in the fourth quarter, at €1,641 million (Q4 2017: €1,731 million).

The risk result, at minus €446 million in 2018, remained at a low level. The Bank benefitted from the high quality of its loan books in its core segments and from the steady German economy as well as from write-backs of provisions for loan defaults in the first half of the year. The risk result for the fourth quarter stood at minus €154 million, compared with minus €133 million for the third quarter. The already very low non-performing loan (NPL) ratio improved again in 2018 to 0.9% (2017: 1.3%). This reflects the Bank’s high portfolio quality and its unchanged prudent lending standards.

The operating profit for 2018, at €1,245 million, was €97 million higher than the previous year’s figure (2017: €1,149 million). €240 million was generated in the fourth quarter, compared to €122 million in the fourth quarter of 2017. The pre-tax profit for 2018, including the discontinued operations, came to €1,230 million (2017: €459 million). So after deduction of taxes of €262 million and minority interests of €103 million, Commerzbank posted a net result attributable to Commerzbank shareholders of €865 million for 2018 (2017: €128 million). In the fourth quarter, it was higher year-on-year, despite a higher tax rate, at €113 million (Q4 2017: €75 million).

Common Equity Tier 1 ratio at 12.9% – healthy risk profile

The Common Equity Tier 1 ratio (CET 1) stood at 12.9% at the end of December 2018 (end of September 2018: 13.2%, beginning of 2018: 13.3%). This includes the dividend accrual of 20 cents per share for financial year 2018. The decrease in the ratio in the fourth quarter reflects the growth in lending in the core segments and a lower valuation of pension plan assets due to the weak equity markets. Risk-weighted assets (RWA) from credit risk increased by €2.5 billion in the fourth quarter, compared to the third quarter, reaching €147 billion. As a result, RWA rose overall to €180 billion (end of 2017: €171 billion, Q3 2018 €178 billion). The leverage ratio stood at a comfortable 4.8% at the end of 2018 (beginning of 2018: 4.8%). Total assets came to €462 billion (end of 2017: €452 billion).

“Our clean balance sheet gives us scope for growth. We are using it successfully. This is reflected in the improved net interest income, higher underlying revenues and in the Common Equity Tier 1 ratio of 12.9%”, commented Stephan Engels, Chief Financial Officer of Commerzbank. “We kept our operating expenses below €6.9 billion despite high investments. This means we are on track to meet our cost target of €6.5 billion in 2020”.

Performance of the segments

In Private and Small-Business Customers (PSBC), the growth strategy is paying off. At the end of 2018, the segment reached the one million mark for new customers in Germany since October 2016, and is therefore on course to meet its target of a net two million new customers by the end of 2020. In 2018, the number of net new customers rose by 417,000. Despite the slump on the equity markets, Assets under Control in Germany grew by €8 billion to €382 billion, which means they have risen by €46 billion since December 2016. Mortgage lending volumes were also up year-on-year by 9% at €75.6 billion.

On the back of this growth, PSBC generated revenues of €4,803 million in 2018 (2017: €4,823 million). The previous year, non-recurring effects from the sale of the Concardis holdings and the termination of the consumer finance joint venture with BNP Paribas had a positive impact. Underlying Revenues rose by €234 million or 5% on the year to €4,847 million in 2018, helped by the fact that net interest income increased again in the fourth quarter, compared to the third quarter, as a result of the growth initiatives. In the fourth quarter, underlying revenues for the PSBC segment totalled €1,185 million (Q3 2018: €1,226 million; Q4 2017: €1,216 million). The decline versus the third quarter and the previous year can be attributed to a lower net fair value result and to the weak equity markets, which weighed on securities business in particular.

PSBC’s operating expenses remained almost unchanged at €3,835 million in 2018 (2017: €3,811 million) despite higher regulatory costs and investments in growth. The risk result came out at minus €233 million for this, the first year in which the consumer finance business was entirely on Commerzbank’s balance sheet. In total, the segment generated an operating profit of €735 million (2017: €858 million), including €172 million in the fourth quarter (Q3 2018: €186 million; Q4 2017: €147 million).

The Corporate Clients segment continued on its growth trend. In 2018, the segment gained a net 3,500 new customers, making a total of around 8,900 since the beginning of 2016. The lending volume rose by €4 billion to €82 billion in 2018 despite competitive pressure. Especially in the challenging market environment during the fourth quarter, Corporate Clients could prove the resilience of its customer-focussed business model.

In Corporate Clients, revenues amounted to €3,451 million in 2018 (2017: €3,613 million), while underlying revenues totalled €3,495 million (2017: €3,584 million). Stiff price competition and lower demand for capital market products had an impact here. Net interest income however increased, also in the fourth quarter. Main drivers were International Corporates and the Mittelstandsbank. Financial Institutions continued its positive trend and increased revenues by 3,5% year-on-year. The Mittelstandsbank managed to offset the margin pressure in its lending business through volume growth. In the fourth quarter, the segment’s net interest income rose again slightly quarter-on-quarter by €20 million to €486 million, as a result of growth. This took underlying revenues to €857 million in the fourth quarter (Q3 2018: €850 million; Q4 2017: €896 million).

Strict cost management enabled operating expenses to be reduced in 2018, despite strategic investments, to €2,628 million (2017: €2,642 million). The cost of risk remained low and benefitted from write-backs in the first half of 2018. Therefore, the risk result was low at minus €194 million. In total, the operating profit for 2018 came in at €629 million despite the revamping and continued strong pressure on margins (2017: €676 million). The fourth quarter accounted for €122 million of this (Q3 2018: €184 million; Q4 2017: €34 million).

The Asset & Capital Recovery (ACR) segment further ran down its legacy portfolios by a total of €5.1 billion in 2018. The ship finance portfolio was substantially reduced to under €500 million and fewer than 60 ships. The commercial real estate portfolios were successfully decreased to around €900 million. Revenues fell to €114 million in 2018 (2017: €170 million), also as a result of the steadily shrinking legacy portfolio. The risk result came in at only minus €8 million owing to the much lower volumes. Therefore the operating result showed a sharp increase to €34 million (2017: minus €264 million). The figure for the fourth quarter was minus €56 million, impacted by negative valuation effects on hedging products (Q4 2017: minus €54 million).

Outlook

Commerzbank will concentrate on further growth in the core segments, and is targeting higher underlying revenues in 2019. Since the European Central Bank has signalled a reduction of the SREP requirements by 25 basis points, the Bank is targeting a CET 1 ratio of at least 12.75% by the end of 2019. The Bank is planning for a cost base below €6.8 billion in 2019, while the drag from the risk result is likely to be at least €550 million. The Bank is planning to maintain a dividend for financial year 2019 at a level comparable to that intended for 2018. In what is a challenging market environment, the Bank will continue with its growth strategy, and is targeting an average revenue growth of 3% per year. It will further increase its digitalisation efforts by revamping its head office, which should contribute to a targeted cost base of €6.5 billion in 2020.

2018 figures published in this press release are preliminary and unaudited.

From approximately 7 am onwards you can find broadcast-ready video material with statements by Martin Zielke and Stephan Engels at http://mediathek.commerzbank.de/.

The press conference will be broadcast live on the internet.

*** Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

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In the face of slow market adoption for the Bank Payment Obligation (BPO), which serves as a legally binding undertaking to execute payment for goods or services, Commerzbank has launched a new whitepaper, “Leading the path of digital evolution”, which explores how to boost BPO adoption among banks and – crucially – their corporate customers.

Angela Koll, Specialist Product Management Trade, Supply Chain Finance & Innovation at Commerzbank, says: “The BPO’s future potential – both as a transformation in its own right and as a gateway for other trade finance technologies – could set the industry on course for greater transaction optimisation and efficiency. It can also provide banks with the opportunity to better meet the growing demands of trading corporates, for faster, more transparent and digital process flows”.

The paper suggests that adoption of the BPO has been slow, so far, because: trade is traditional, yet complex; there remains a scarcity of banks available to transact with the BPO; corporates and banks still need to be made aware of the instrument’s appeal; and the URBPO still largely position the BPO as a tool for banks, rather than for corporates as well.

Koll adds: “While the trade finance community will pursue DLT advancements in the coming years, the BPO is available now – and has also already been demonstrated to be both commercially viable and valuable. To reach the tipping point, we need BPO-active banks to take a strategic approach to promoting the BPO as a product, both to their corporate customers and – critically – to other banks”.

Commerzbank successfully implemented its BPO front end in November 2018, thereby completing its digital BPO processing offering. The front end allows corporates to enjoy digital end-to-end communication with the data matching engine of SWIFT (SWIFT TSU). The BPO front end supports fast, automated and seamless transaction settlement processing of the BPO and improved efficiency to their working capital cycle.

Around 40 banks are offering BPO handling for trade business at the current time.

Read the white paper here.

*** Press contact Claire Tappenden +44 (0)20 7475 5161

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

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Michael Reuther, the Commerzbank AG Board member for Corporate Clients, has today notified the Supervisory Board that he is happy to fulfil his contract, which runs to the end of September 2019, but that he would decline a potential offer to extend his contract. At the same meeting, the Supervisory Board accepted, with regret, the request of Chief Operating Officer Frank Annuscheit to leave the Board on 28 February 2019 on health grounds. Jörg Hessenmüller has been named as Frank Annuscheit's successor. Jörg Hessenmüller's appointment to the Board of Managing Directors with effect from 1 January 2019 is still subject to the approval of the supervisory authorities.

Supervisory Board Chairman Stefan Schmittmann acknowledged with regret the upcoming departure of Frank Annuscheit and the announcement by Michael Reuther, and expressed his recognition of their many years of successful work.

Michael Reuther said of the reasons for his decision: “I have always found my work at Commerzbank and with my fellow Board members very enjoyable. But after what will be 13 years on the Commerzbank Board, I would like to embark on a new chapter in my professional life. Under my current life plans, extending my contract is no longer an option. Therefore I would like to give the Bank enough time to find a suitable successor, and, in my final year at the Bank, bring the restructuring of the Corporate Clients segment to a successful conclusion. I think this is also a good time for a change of management in the Corporate Clients business. My successor can then focus fully on the further growth of the business”.

Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank, commented: “I am sorry to learn of Michael Reuther’s decision, but I respect it. Michael Reuther is a valued colleague with a broad international profile and strong market expertise. He has made very good progress with the reorganisation of the Corporate Clients business, and I am pleased that he will be actively working with us on the transition and the search for his successor. During the integration of Dresdner Bank, he very successfully combined the trading operations of the two investment banks. The focus on client business only has made us a frontrunner in the industry. That deserves great credit. For that I extend my warmest thanks to Michael Reuther”.

Frank Annuscheit said of his reasons for stepping down: “I have been responsible for the Bank's IT and operations areas for 15 years, 11 of them as a member of the Board. That is a long time with a lot of transformations which have left their mark on me both professionally and personally. So the decision to withdraw from operational business did not come easily. But it is now time for me to focus on other priorities”.

Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank, commented: “Frank Annuscheit has been an important driving force for us. The head office restructuring recently decided on, whereby important IT functions are to be integrated into product development, was partly initiated by him. This is a bold and groundbreaking step for the Bank. The successful integration of Dresdner Bank’s IT was also attributable to him. I would like to extend my thanks to Frank Annuscheit for this, and am pleased that he will continue to work with the Bank in the future”.

Frank Annuscheit added: “In a digital enterprise, the IT has to be even more closely integrated into product and process responsibility. It is a good time, prior to the start of the crucial phase of this restructuring, to hand over responsibility to someone new. I am pleased the Bank has found, in Jörg Hessenmüller, a successor who will accomplish this task with great passion and energy”.

Jörg Hessenmüller, currently Divisional Board Member for the Group division Digital Transformation & Strategy, is to take over from Frank Annuscheit.

The Chairman of the Board of Managing Directors of Commerzbank, Martin Zielke, said: “I am delighted to welcome Jörg Hessenmüller to the Board. As Head of Strategy he was actively involved in shaping Commerzbank 4.0 and revamping the Group head office. In his new role he will drive and implement the ongoing digital transformation of the Bank. As a board member of mBank in Poland, he gained a wealth of experience in new technologies and their implementation”.

*** Michael Reuther (59) has been a member of the Board of Managing Directors of Commerzbank AG since 2006, and most recently has been responsible for the Corporate Clients business. Until 2017, he was also the Divisional Board Member responsible for Group Treasury. Prior to that, he worked as Group Head of Liquidity Management and Head of Treasury Europe at Deutsche Bank AG in Frankfurt and London. Michael Reuther studied law and economics at the universities of Göttingen and Freiburg, before attending the New York University Leonard Stern School of Business and Harvard Business School.

Frank Annuscheit (56) has held senior roles at Commerzbank since 2003, first as Chief Information Officer and Group Chief Operating Officer. Since January 2008 he has been a member of the Board of Managing Directors of Commerzbank, and is currently responsible for Group Banking Operations, Delivery Center, Group Information Technology, Group Markets Operations and Group Organisation & Security. A business graduate, he arrived from Deutsche Bank, where, among other things, he served as a board member of European Transaction Bank AG, and as Divisional Head of IT at Deutsche Bank 24.

Jörg Hessenmüller (48) is the Divisional Board Member in charge of the Group division Digital Transformation & Strategy. Prior to that, he was a Board member at Polish mBank, responsible for Finance and Investor Relations, as well as the strategic development of the Commerzbank subsidiary. He began his career in 1989 at Dresdner Bank, with a traineeship as a banker, and worked in interest rate derivatives trading and Treasury before taking on managerial roles in Financial Controlling. In 2009, as part of the integration of Dresdner Bank into Commerzbank, he became global divisional head of Investmentbanking Finance within Group Management Finance. Jörg Hessenmüller studied business economics at the Frankfurt School of Finance & Management, specialising in banking and finance.

*** Press contact Richard Lips +49 69 136-22461 Margarita Thiel +49 69 136-46646

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

The global decline in economic indicators is not a harbinger of a dangerous economic downturn, said Commerzbank chief economist Jörg Krämer on Friday in Frankfurt. “What we see here is just a slowdown of growth,” said Krämer.

The US economy, for instance, has been boosted this year by the reduction in taxes and an increase in government expenses, which will not repeat itself next year. In addition, the US Federal Reserve's monetary policy is depressing economic growth. The Fed has already raised interest rates eight times since the end of 2015 and will – after another step in December – raise it two further times next year, according to Commerzbank analysts. The rate would then be at 3.00%. The Bank's economists expect the US growth to fall to 2.5% in 2019.

In the Eurozone, the manufacturing sector, which is dependent on foreign trade, shows signs of weakness. According to Krämer, this is primarily due to exports to China, which are seeing less growth currently. “The development of economic growth in the Eurozone predominantly depends on China,” said Krämer. He believes, however, that the Chinese government will successfully stimulate domestic demand and thereby stabilise the Chinese economy. In this case the upswing in the Eurozone should continue to grow at a rate of 1.4% in 2019, according to Commerzbank economists.

The budget crisis in Italy represents a downside risk to this forecast. However, Krämer does not believe that the conflict will escalate. “Italy will continue this dispute until the elections to the European Parliament next May,” said Krämer. “After the elections, Italy will strike more modestly and in doing so open the door to a compromise”. Brexit also continues to be a factor of uncertainty. “Unfortunately, the EU has clearly left its mark on the Brexit agreement so an approval by the British Parliament is questionable,” said Krämer.

These factors combined with core inflation not picking up will have an impact on the European Central Bank. According to Commerzbank experts, the ECB will not raise interest rates in 2019, but in March 2020 instead – without initiating a rate hike cycle. “A true turnaround of monetary policy in the Eurozone is still not in sight,” said Krämer. It is expected that the DAX will recover as soon as economic indicators pick up next spring, and after the elections to the European Parliament, when the Italian government shows it is willing to compromise (DAX year-end forecast: 12,500).

Commerzbank Research Forecasts

Growth in gross domestic product in real terms in % compared to previous year

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Press contact

Stefan Gringel +49 69 136-51435 stefan.gringel@commerzbank.com

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

***

Disclaimer

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Commerzbank is the first financial institution to set up an Enterprise Lab at Fraunhofer Institute for Material Flow and Logistics IML in Dortmund, in an extension of the partnership that has been in place since July 2017.

In the Trade Finance Innovation-Lab, new payment and finance solutions will be developed for the Trade Finance business based on innovative technologies such as Distributed Ledger Technology (DLT), Smart Contracts and the Internet of Things (IoT), and made ready for the market. At the same time, both institutions will play an active part in helping to establish a general framework and standards for the digitalisation of international supply chain management and the related financing tools.

Commerzbank, one of Europe's leading foreign trade banks, is the first bank to join the Enterprise Lab Center with its Trade Finance Innovation-Lab, which covers the field of financial services with a focus on trade finance business, i.e. processing and financing international trade transactions. From now on, user-oriented researchers at Fraunhofer IML from logistics, supply chain management and blockchain technology will work closely with trade finance specialists from Commerzbank and its research and development unit, main incubator.

The Enterprise Lab Center at Fraunhofer IML brings together science and business. It already hosts several subject-specific labs set up by well-known industrial companies in sensor technology, automotive, logistics, chemicals, pharma and telecommunications. These are places where company representatives and researchers work together to analyse current and future trends in logistics and supply chain management, and assess potential scenarios in order to develop innovations and forward-thinking business models.

“Since the collaboration with Fraunhofer IML began, potential practical applications for the trade finance business have been identified and prioritised in consultation with corporate clients of the Bank. Processes along physical supply chains can be linked much more closely to the financial supply chain using new technologies. In many parts of the supply chain, processes currently done manually are able to be automated and performed more efficiently. The Enterprise Lab Center provides exactly the right framework for us to step up our collaboration, which has been a success to date”, said Nikolaus Giesbert, Divisional Board Member Fixed Income, Currencies & Commodities and Trade Finance & Cash Management, Commerzbank AG. “From our Trade Finance Innovation-Lab, we will work on a cross-sector basis to make optimum use of the opportunities provided by digitalisation, both in physical and financial supply chains”, he added.

“We are pleased to have entered into a collaboration with Commerzbank, a financial institution with decades of experience in international export and trade financing. The core competencies of Commerzbank and Fraunhofer IML complement each other perfectly. So in future, our Enterprise Lab Center will also be covering the field of finance”, commented Prof. Dr. Michael Henke, Institute Director at Fraunhofer IML. “The solutions developed jointly in our Trade Finance Innovations-Lab will blaze a trail for digital banking along the global supply chains of the future”, he said.

Press contact

Josefin Altrichter +49 69 136-80209

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

About Fraunhofer IML

The Fraunhofer Institute for Material Flow and Logistics IML is said to be first address in the holistic logistics research and is working on all fields of internal and external logistics. At the Institute, founded in 1981, there are at the moment 290 employees as well as 250 post-graduates and students, supported by colleagues in workshops, laboratories and service areas. Made-to-measure arranged teams create cross-industry and customer-specific solutions in the area of materials handling, warehouse management, supply chain management, simulation supported business and system planning and also traffic systems, closed loop economy, resources logistics, building logistics and e-business. For interdisciplinary projects the Institute can draw on a total of 25,000 employees of 72 institutes within the entire Fraunhofer association. Beside the location in Dortmund, there are additional locations in Frankfurt/ Main, Prien at Chiemsee and Hamburg as well as international offices in Lisbon and Beijing.

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.

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The EMC business comprises manufacturing and market making of flow and structured products as well as part of Commerzbank’s asset management activities including the exchange-traded funds (ETF) franchise. The Equity Capital Markets (“ECM”), the Equity Brokerage (“Equity Trading” and “Equity Sales/Brokerage”) businesses as well as the hedging business for commodity risks of Commerzbank are not part of the transaction.

The transaction would include the transfer of EMC’s trading books and client franchise, staff, as well as parts of the IT infrastructure. EMC front office employees and certain employees of associated support functions would be integrated by Societe Generale and Lyxor. The staff integration and the transfer of trading books as well as its associated assets and liabilities are anticipated to take place gradually, starting in 2019, once the relevant approvals are obtained.

Both Societe Generale and Commerzbank are committed to ensuring a smooth and seamless implementation of this transaction for their clients.

Press contacts Commerzbank Maximilian Bicker +49 69 136-22440 Stefan Gringel +49 69 136-51435

Press contacts Societe Generale Paris: Fanny Rouby - +33 1 57 29 11 12 - fanny.rouby@socgen.com @SG_presse London: Murray Parker - +44 20 7676 6771 - murray.parker@socgen.com Germany: Elke Pawellek - +49 69 7174 503 - elke.pawellek@sgcib.com

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

About Societe Generale Societe Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth, aiming to be the trusted partner for its clients, committed to the positive transformations of society and the economy.

Active in the real economy for over 150 years, with a solid position in Europe and connected to the rest of the world, Societe Generale has over 147,000 members of staff in 67 countries and supports on a daily basis 31 million individual clients, businesses and institutional investors around the world by offering a wide range of advisory services and tailored financial solutions. The Group is built on three complementary core businesses:

Societe Generale is included in the principal socially responsible investment indices: DJSI (World and Europe), FTSE4Good (Global and Europe), Euronext Vigeo (World, Europe and Eurozone), four of the STOXX ESG Leaders indices, and the MSCI Low Carbon Leaders Index.

For more information, you can follow us on twitter @societegenerale or visit our website www.societegenerale.com

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Commerzbank recorded continued growth in the first nine months of 2018 and increased its underlying revenues. In the Private and Small Business Customers segment, it gained around 117,000 net new customers in Germany in the third quarter. With a good 900,000 net new customers since October 2016, it is on track to achieve its target of one million net new customers by the end of 2018. The Corporate Clients segment is still ahead of its 2018 targets for new customers and volume of lending. Group revenues after adjustment for non-recurring items rose in the first nine months to €6,690 million (9M 2017: €6,338 million). In the third quarter the Bank increased its underlying revenues by nearly 9% year-on-year to €2,175 million (Q3 2017: €2,003 million). The Bank made further progress with the implementation of its strategy. In the third quarter, the migration of small business customers from the Corporate Clients segment to the Private and Small Business Customers segment was completed and the new relationship model for corporate clients established, among other things.

Group revenues stood at €6,727 million in the first nine months (9M 2017: €6,955 million). Last year’s figure had been bolstered by non-recurring items amounting to €617 million in the first nine months. In 2018, exceptional revenues in the first nine months stood at just €37 million. Overall, higher revenues from customer business helped to largely offset the difference year-on-year. In the third quarter, revenues amounted to €2,193 million (Q3 2017: €2,505 million).

Operating expenses totalled €5,412 million in the first nine months (9M 2017: €5,297 million). The year-on-year increase was mainly due to investments in strategy implementation and further growth. Operating expenses for the third quarter stood at €1,728 million (Q3 2017: €1,714 million). Costs were therefore in line with expectations for 2018, as was the risk result. It stood at minus €295 million in the first nine months and minus €134 million in the third quarter. This reflects the Bank’s portfolio quality and the benign credit environment. The non-performing loan (NPL) ratio remained very low, at 0.9%.

The operating profit for the first nine months came to €1,020 million (9M 2017: €1,128 million). It benefited from higher underlying revenues, a lower risk result and a positive contribution from the Asset and Capital Recovery segment. In the third quarter, the operating profit came in at €331 million (Q3 2017: €623 million). The year-on-year decline is attributable mainly to exceptional revenues of €502 million in the third quarter of 2017, including from real estate sales.

After deduction of taxes of €187 million and minority interests of €81 million, Commerzbank posted a net result of €751 million for the first nine months of 2018 (9M 2017: €53 million; impacted by restructuring expenses of around €800 million). The net result for the third quarter came in at €218 million (Q3 2017: €467 million).

“We increased our underlying revenues and steadily gain new customers. This shows that we have the right strategy: We grow in a highly competitive market. Our improved setup has also been confirmed by the European stress test. However, the environment remains challenging and although we have made a lot of progress, we still have some work to do”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank”. Chief Financial Officer Stephan Engels added: “We have significantly improved the quality of our earnings compared to last year. Our capital ratio and our leverage ratio are stable on a good level. Our outlook for the full year remains unchanged”.

The Common Equity Tier 1 ratio (CET 1) stood at 13.2% at the end of September, versus 13.0% at the end of June 2018. This includes earnings for the first nine months, factoring in a dividend accrual of 15 cents per share. Risk-weighted assets (RWA) amounted to €178 billion at the end of September, versus €176 billion at the end of June 2018. This rise, resulting partly from increased lending in the core segments, was more than offset by capital build-up. The leverage ratio stood at 4.5%. Total assets came to €493 billion (end of June 2018: €488 billion). The Bank’s achievements in risk reduction and improved balance sheet quality contributed to a significantly improved result in this year’s European Banking Authority stress test.

Development of the segments

The Private and Small Business Customers segment benefited from the continued growth in customers and Assets under Control, and increased its revenues after adjustment for non-recurring items by 7.8% year-on-year in the first nine months to €3,663 million. Underlying revenues were also up year-on-year for the third quarter, at €1,228 million (Q3 2017: €1,125 million). Assets under Control in Germany went up in all product categories, to stand at €392 billion at the end of the third quarter. The volume of mortgage lending grew by 10% year-on-year, reaching around €74 billion in September.

The segment’s operating expenses stood at €2,893 million (9M 2017: €2,794 million). The year-on-year increase was due to higher regulatory costs and investments in growth. The risk result came to minus €184 million. The operating profit stood at €564 million for the first nine months (9M 2017: €712 million, including non-recurring items of €238 million). Operating profit for the third quarter stood at €188 million (Q3 2017: €380 million). In the previous year, non-recurring effects from the sale of the Concardis holdings and termination of the consumer finance joint venture with BNP Paribas had contributed to the segment’s profit.

In the Corporate Clients segment, continued high margin pressure and competition impacted earnings. The Financial Institutions division returned to a stable profit contribution this year, following its realignment. Revenues from business with SMEs, large corporates and international companies were affected – despite some successful growth initiatives – by margin pressure, low interest rates and weak demand for hedging products. The result of the Equity Markets & Commodities division was driven by lower demand for structured products.

The Corporate Clients segment generated revenues of €2,836 million in the first nine months (9M 2017: €3,015 million), including €918 million in the third quarter (Q3 2017: €967 million). Operating expenses amounted to €2,189 million (9M 2017: €2,148 million). The risk result, which had benefited from releases in the first half of the year, normalised and stood at minus €124 million after nine months (Q3: minus €62 million). The operating profit came to €523 million for the first nine months (9M 2017: €743m) and to €169 million for the third quarter (Q3 2017: €237 million).

The Asset & Capital Recovery (ACR) segment recorded an operating profit of €90 million for the first nine months (9M 2017: minus €210 million, Q3 2018: €14 million). This result reflects both the reduced size of the segment's run-down portfolio and the revaluation of the Ship Finance portfolio following the introduction of IFRS 9. Revenues amounted to €135 million (9M 2017: €146 million). The revenue figure for the third quarter was €28 million. Operating expenses were further reduced, coming in at €60 million for the first nine months (9M 2017: €79 million). The risk result came out at €15 million. The Bank’s Ship Finance portfolio was run down further and stood at a volume of €1.1 billion at the end of the third quarter (Q3 2017: €4.2 billion).

Outlook

The outlook remains unchanged. In 2018, the Bank will focus on further growth and the implementation of its Commerzbank 4.0 strategy. Higher underlying revenues are expected at Group level with the Private and Small Business Customers segment exceeding and the Corporate Clients segment being below the 2017 figures. Driven by investments and compulsory contributions, costs are expected to be at around €7.1 billion. The risk result under IFRS 9 should be below €500 million, provided the global trade conflicts do not escalate significantly and there are no unforeseeable larger credit events. The Bank is aiming to resume dividend payments of 20 cents per share for financial year 2018.

*** From approximately 7 am onwards you can find broadcast-ready video material with statements by Stephan Engels at http://mediathek.commerzbank.de/.

*** Press contact Nils Happich +49 69 136-80529 Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

Commerzbank markedly improved its result in this year’s European Banking Authority (EBA) stress test. In the so-called adverse stress test scenario, Commerzbank’s Common Equity Tier 1 (CET 1) ratio stood at 9.9% in 2020, at the end of the stress test horizon. This is 2.5 percentage points above the previous test result in 2016. Overall, the adverse stress effect lowered the Bank’s CET 1 ratio of 13.3% (Basel III fully phased-in with application of the new IFRS 9 accounting rules at the turn of the year 2017/2018) by 3.4 percentage points. In 2016, the ratio had decreased by 4.7 percentage points under the adverse stress scenario.

“Our systematic reduction of risks over the last few years is paying off”, said Marcus Chromik, Chief Risk Officer of Commerzbank. “We have significantly improved our result in the stress test despite the even more challenging macroeconomic scenario. This is further proof of Commerzbank’s healthy risk profile and high resilience to stress”.

Since the EBA stress test in 2016, Commerzbank has undertaken a value-preserving reduction of its non-strategic portfolios and cut its Risk-weighted Assets (RWA) by roughly 29 billion euros. Its CET 1 ratio increased from 12.1% to 13.3% (considering the counter-effects of IFRS 9 at the turn of the year 2017/2018).

The 2018 stress test scenario was based on even more challenging macroeconomic conditions. Among other things, the test simulated an economic downturn of a cumulative –3.3% over the three-year period to 2020 for Germany (2016: –1.4%).

The stress test assumed a static balance sheet based on the IFRS 9 opening balance sheet for 2018, and therefore did not take account of any current or future business strategies or management initiatives. It is also not a forecast of Commerzbank’s profits. The results of the stress test feed into the Supervisory Review and Evaluation Process (SREP).

Further information on the EBA’s publication of 2 November 2018 can be found at https://www.commerzbank.de/en/hauptnavigation/aktionaere/aktuelles_2/stresstest2018.html.

Overview of stress test results

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Press contact

Nils Happich +49 69 136-80529

Erik Nebel +49 69 136-44986

Maurice Farrouh +49 69 136-21947

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

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Disclaimer

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Commerzbank plans to automate around 80% of the selected compliance relevant checks of the bank’s trade finance processes by 2020. In October 2018, Commerzbank has started a pilot phase to automate the anti-money laundering processes which are an essential part of any trade finance transaction review. After an evaluation of the pilot phase, it is planned to roll out a further stage of the sanctions checks in trade finance during 2019.

Commerzbank, the leading trade finance bank in Germany, has begun a partnership with Conpend, a fintech company focused on solutions for trade finance operations. Conpend uniquely uses optical character recognition (OCR) and progressive machine learning to extract data from physical documents, recognise patterns and flag deviations. The machine learning component means that the software will constantly improve the identification of potentially non-compliant transactions as it is being used. It will use application programming interfaces (APIs) to connect to Commerzbank’s existing trade finance processing infrastructure and create a complete and detailed audit trail for the bank to front-run the increasing expectations of regulators with respect to reporting requirements.

The planned automation of selected and relevant compliance pre-check and sanctions check processes in trade finance refers to business operations only – the so called “first line of defence”. It does not affect any downstream internal oversight, compliance and audit processes of the Bank. The new business processes will improve efficiency and further optimise risk control procedures. Any compliance risks identified will be reported to the Group Compliance unit where they will be monitored and examined according to the established risk management, control and governance processes.

Enno-Burghard Weitzel, Head of Product Management Trade Services at Commerzbank, says: “The processing of trade finance transactions is becoming more complex and prone to higher risks, as manual processes struggle to keep pace with the increasing regulatory and market trends. However, we are leading the change towards a new era for trade finance processing. Our aim is to focus the expertise of our trade finance specialists to the crucial and complex parts of the business, while using artificial intelligence to improve efficiency and further optimise risk controls. This is not only a long-term plan, but something we are implementing now to enhance client experience by significantly reducing the time for transaction processing and the associated costs”.

Marc Smith, Founder and Managing Director of Conpend, says: “A growing part of the activity within a bank’s trade finance division is focused on crucial but routine activities that underpin the value-added services they provide to clients. This provides a huge opportunity to improve efficiencies and allow more focus on client servicing. I’m delighted to partner with the team at Commerzbank that shares the same vision of modernising the traditional elements of trade finance processing”.

The key role of financial institutions in the trade finance business is to facilitate international trade transactions between two or more parties by assuming and managing risks. The banks involved offer clients risk mitigation mainly by covering the payment risk and other physical and event risks in the supply chain between exporter and importer through products such as the letter of credit and bank guarantees. Thorough and flawless compliance and sanction screening processes are indispensable in the trade finance business in order to mitigate risks for the Bank and to meet the regulatory requirements. The rapid development of innovation such as automation and machine learning technologies allows a significant enhancement of trade finance processes.

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Press contact Maximilian Bicker: +49 69 136 22440 Claire Tappenden: +44 20 7475 5151

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About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

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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.

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Commerzbank has issued today its inaugural green bond in the capital market. The issue raised €500 million. The Bank will use the proceeds to refinance renewable energy projects. “With our inaugural green bond we are sending an important signal about the growing significance of this asset class. Also, we continue to enlarge and diversify our investor base”, said Inga Johal, Divisional Board Member Group Treasury at Commerzbank. “It also demonstrates our strong commitment to climate protection and reinforces the Bank's sustainability strategy”.

The non-preferred senior bond attracted keen investor interest. The final order book at re-offer was above €1.1 billion. The bond has a term of 5 years with an annual coupon of 1.25%. Commerzbank obtained its second party opinion from the renowned sustainability ratings agency Sustainalytics, which confirms that the bond complies with the latest Green Bond Principles.

Commerzbank already has a wide experience in the green bond market. “For years we have been successfully supporting our corporate clients to prepare their sustainable bond issues and place them in the international capital market. This year alone we have already acted as a Lead Manager on 17 green and social bond transactions”, commented Roman Schmidt, Divisional Board Member Corporate Finance. In issuing its inaugural green bond, the Bank is adding to its expertise in this fast-growing asset class.

The bond is structured in accordance with the Green Bond Principles. This market standard provides investors with a high degree of transparency as regards how the funds are actually used. Commerzbank has earmarked the bond proceeds for loans for onshore and offshore wind projects and solar projects in Germany, other European countries, and North and South America.

Commerzbank is committed to the objective set at the UN Climate Change Conference in Paris in 2015 to limit global warming to less than 2 degrees Celsius versus pre-industrial levels. The associated energy revolution and reduction in CO2 emissions are creating a need for new technologies and products requiring large investments. Commerzbank is one of Germany’s top finance providers for the renewable energy sector, with a portfolio of around €5.2 billion as of December 2017.

*** Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

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Today in Hamburg, Commerzbank presented its market assessments of the wind energy market, ahead of Wind Energy Hamburg, which takes place from 25 to 28 September 2018. “We continue to observe a robust global expansion in renewable energies with a further decrease in production costs,” is the conclusion drawn by Berthold Bonanni, head of the Energy unit (CoC Energy) at Commerzbank AG.

The production of wind energy has experienced annual growth from 2015 to 2017 seeing an increase worldwide of 11% p.a., from 128 to 157 gigawatts (GW). In contrast, the investment costs for the same period fell by 7% p.a., from $323 billion to $280 billion. Bonanni added: “The trend of a decline in production costs continues unabated, it is largely driven by the transition to competitive bidding systems which determine the size of fixed remuneration rates”.

Regionally, Commerzbank forecasts strong annual growth in the Asia-Pacific region, and in particular in the offshore sector. In contrast, it is expected that Germany will see a brief decline in 2019, however growth of the onshore wind sector in Germany is expected to normalise from 2020.

Competitive bidding

The global trend of competitive bidding procedures puts pressure on remuneration rates. For example, the number of countries which utilise competitive bidding has increased from 64 in 2015 to 84 in 2017. In the EU this has been mandatory since 2017. “In our experience competitive bidding leads to lower remuneration rates because pricing is closely linked to the decline in production costs,” observes Bonanni.

Financing conditions

A decline in the size of remuneration in conjunction with an expected rise in electricity prices would increasingly bring renewable energy assets towards the threshold for price competitiveness (grid parity). If auction prices converge towards current market price levels, private power purchase agreements (PPAs) will become increasingly attractive. This transformation, which has already been observed in a number of markets, is also changing the financing conditions, as the financing is no longer based on government guarantees but on market-based instruments. “The consequences of this paradigm shift,” says Bonanni, “are currently still uncertain. However, the shift is an important element in the integration of renewables in the energy markets. This raises the question of how the risks from market economy-based project financing could be shared among the market participants”.

Commerzbank AG, with its Center of Competence Energy (headquarters in Hamburg), is one of the leading financiers of renewable energies with a loan volume of around €4.5 billion in project financing and around €0.7 billion in corporate financing. Commerzbank has financed ca. 15% of the wind capacity in Germany to date.

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Press contact

Thomas Kleyboldt +49 173 2477706

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About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

***

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.

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On 12 September 2018, Commerzbank Zrt. in Hungary celebrates its 25th anniversary with its clients and employees. Since opening its doors in Budapest, the Bank has been located in a historical building on Széchenyi rakpart right next to the Danube. In 1993, Commerzbank was one of the first western European banks to found a wholly-owned subsidiary in Hungary. Two years prior to this, it had already been represented there by a local office. In addition to its headquarters in Budapest, Commerzbank is also active in Kecskemét, Miskolc, and Győr. With around 110 staff, Commerzbank concentrates on providing corporate clients with customised financing and cash management solutions, as well as structured interest rate, exchange rate and hedging of country risks. Serving local and international clients, Commerzbank Zrt. accompanies Hungarian firms doing business in Germany and around the globe, as well as in Hungary, providing German and international clients with a gateway to do business in the eastern European country.

Germany is the most important trading partner for Hungary’s economy: in 2017, more than one quarter of Hungarian foreign trade was conducted with Germany. 27% of direct investment is accounted for by Germany, with more than 6,000 German companies active in Hungary. As a result of these close economic ties, Commerzbank plays an important role in export-oriented Hungarian and German SME sectors. The branches in Hungary are important hubs for Commerzbank’s international Corporate Clients business and achieved sustainable and long-term success, with revenues increasing by approximately 10% last year. Alongside the loans business, revenues were largely generated by the trade finance and foreign exchange segment. The loan volume in Hungary currently amounts to approximately €2 billion.

“As the market leader in Germany’s SME sector and in the financing of foreign trade, we also want to offer our clients personal points of contact for their activities as they navigate business opportunities in Hungary,” said Klaus Windheuser, Chairman and CEO of Commerzbank Hungary. “We are pleased to have been able to support our clients in and out of Hungary for 25 years. Via the Commerzbank Group we are connected with the whole world. Our international positioning and expertise in more than 50 countries worldwide allows us to offer clients access to more markets and strong distribution capabilities – more than many of our competitors do”. In the course of its 25-year presence, Commerzbank has firmly integrated itself into the country’s business world and society. Approximately half of its client base are Hungarian companies while the other half is made up of international clients, the majority of which have a German background.

Since its foundation in 1993, Commerzbank Hungary has also been committed to the promotion of contemporary Hungarian art. The Bank’s art collection includes works by István Nádler, Imre Bak, Angelika Tóth, and Nóra Soós. The Commerzbank Gallery in Budapest was opened in 2009 and it has become an important element in the artistic life of the Hungarian capital. At the Gallery, it is first and foremost leading contemporary artists of the fine arts who have the opportunity to present their works to the general public.

“Commerzbank Zrt. has for many years now been an integral part of Hungarian business and society, noted for its sustainable growth. We are very grateful for this and would like to expand the Hungarian-German relations, while also growing with our clients,” said Klaus Windheuser.

Commerzbank is present at several sites in Eastern Europe. In addition to Commerzbank Zrt. in Budapest, the Bank operates Commerzbank (Eurasija) AO in Moscow. Commerzbank also has branches in Bratislava/Slovakia and Prague/Czech Republic. The polish subsidiary mBank has its headquarters in Warsaw.

*** Press contact Monika Arens +49 69 136-29673

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

*** 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.

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Between an innovative mobility world and a new ecosystem

Despite the structural changes within the industry, the development of the German automotive supplier sector remains positive. “We expect a new sales record for the automotive sector this year, namely in the region of €84 billion. In a year-on-year comparison this is an increase of 5.4%. As a consequence of the negative effects from exchange rates, higher costs for raw materials, greater investment costs, and in particular as a result of increased research and development costs, we assume the earnings situation will deteriorate somewhat from 2018 onwards. This has already been reflected in the amended forecasts for the current business year by several listed suppliers,” explained Cedric Perlewitz, Sector Head Automotive & Transport at Commerzbank.

With ever stricter specifications for permissible emissions of noxious substances there is further pressure on car manufacturers to accelerate their change of strategy towards greater electro-mobility. “Digitalisation is turning a page and writing a new chapter when it comes to mobility. New cross-sector competitors, such as internet, technology and consumer electronics companies with future business models, as well as new manufacturers specialising solely in electro-mobility, are competing with the established players. Everybody wants to secure a piece of the new mobility action,” added Perlewitz.

Enormous investment costs are necessary to defy the digital shift in the automotive industry. According to the report, this will have repercussions: “We expect to see more cross-sector transactions triggered by digitalisation. The increasing software competence plays a decisive role in networking the car with the ‘outside world’,” stated Perlewitz. In this respect, there will be more strategic cooperations as well as minority shareholdings coming about; in particular, however, additional cross-border M&A activities are expected, above all from China to Germany.

Trend: Consolidation through digitalisation

One challenge for the car makers could be the pending consolidation process. As recently as 2016, a study from Struktur-Management-Partner (SMP) and the Institute for the Automotive Industry (IfA) forecast that the number of small- and medium-sized companies would decrease by as much as 30% by 2025. In the medium term, the need to create value-added on the respective sales markets will lead to an increase in the local purchasing quota from 40 to 50% at present to a figure of between 80 to 90%. Radical localisation, i.e. the use of supply sources in the respective region, is thus gaining in significance.

Furthermore, digitalisation is changing the current value-added structures. It is triggering a move away from the classical supply chain towards flexible production networks and is leading to the entry of software. Successful suppliers are actively utilising digitalisation. Not only are they transforming their production flows in line with customer requirements, they are also systematically exploring which innovative possibilities are opened up by digitalisation for their product ranges and business models.

Electro-mobility accelerating change of strategy

Electro-mobility will gain in significance in the automotive sector. An important driver behind the technical development and transformation is regulation. There is major uncertainty in an age of disruptive development: “In addition to the availability of efficient technologies – in the case of batteries, for example, their energy density and range – the solution has to make economic sense for the customer,” underlined Perlewitz. In this respect, the overall costs outlook is decisive for fleet operators, a particularly important customer group.

“We can observe how companies are realigning their strategy in the sector – also through spin-offs, in order to be able to react to these developments more efficiently and in a more agile manner,” said Perlewitz.

Battery production requires investment now

Battery technology – the most important driver in the automotive industry – represents the main focus of research work in the sector. Excessive prices, inadequate ranges, and long charging times are still an impediment to the use of electric cars on a mass scale. The availability of the key raw material lithium, which is required for the construction of rechargeable batteries, is safeguarded according to the Commerzbank Sector Report. The long-term objective of research work remains substituting the proportion of expensive cobalt without negatively impacting on the thermic stability or the number of possible charging cycles. Safeguarding the value-added chain is another key strategic consideration on the part of car makers and automotive suppliers. It is above all foreign market players which are already investing heavily in Europe and Germany.

“Companies are faced with the decision of choosing between the right point in time for investment and the necessary technological leap. German automobile manufacturers and automotive suppliers have also already begun positioning themselves for the next battery generation, the so-called solid-state cells, so as to make themselves more independent of Asian providers in the medium term,” is Perlewitz’s summary of the situation.

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The Commerzbank Sector Report Automotive Suppliers 2018 is available as an abridged version (in German only) at this link: https://www.commerzbank.de/branchenbericht-automotive

*** Press contact Maximilian Bicker +49 69 136 22440 Bernd Reh +49 69 136 46971

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

*** 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.

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Commerzbank made further progress in the implementation of its Commerzbank 4.0 strategy in the first half of 2018. The agreement on the sale of its Equity Markets & Commodities business to Société Générale marks another milestone for Commerzbank in the simplification of its business model. Revenues excluding exceptional items rose 4% year-on-year to €4,515 million (H1 2017: €4,335 million), driven in particular by the Private and Small Business Customers segment. Customer growth continued here at a slightly slower rate. Assets under control already exceeded the target for 2018. The Corporate Clients segment further increased its loan volume. Since 2016, the segment has gained 7,500 net new customers. The proportion of processes that had been digitalised stood at 56 percent at mid-year, following the completion of three digitalisation projects (“journeys”).

Group revenues increased to €4,534 million in the first half (H1 2017: €4,450 million), and to €2,221 million in the second quarter (Q2 2017: €2,064 million). Operating expenses in the first half stood at €3,684 million (H1 2017: €3,583 million), due to ongoing investments in strategy implementation and digitalisation, as well as higher regulatory costs. Operating expenses for the second quarter stood at €1,748 million (Q2 2017: €1,718 million). The risk result benefited from the Bank’s strong risk profile in a still benign credit environment and was minus €161 million in the first half. The risk result for the second quarter came to minus €84 million. The Bank's non-performing loan (NPL) ratio, at just 0.9%, remained low compared to its European peers.

The operating profit and pre-tax profit for the first half of 2018 climbed to €689 million (H1 2017: operating profit €505 million; pre-tax result minus €302 million). The operating profit for the second quarter came to €389 million (Q2 2017: €179 million). After deduction of taxes of €99 million and minority interests of €57 million, Commerzbank achieved a net profit of €533 million in the first half (H1 2017: minus €414 million). The net profit for the second quarter stood at €272 million (Q2 2017: minus €640 million). In the previous year, the net result had been driven by restructuring charges.

“Our strategy implementation is progressing. We are growing and further simplifying and digitalising our business”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “Given the intense competition, particularly in corporate clients, we have slightly adjusted our outlook. Our growth initiatives are already working. Of course, it will take some time for them to take full effect”.

The Common Equity Tier 1 ratio (CET 1) stood at 13.0% at the end of June, versus 13.3% at the end of March 2018. This includes the net result with a dividend accrual of 10 cents per share for the first half of the year. Driver for the decrease of the CET 1 ratio was the loan growth in the core business – including larger, short-term transactions in acquisition finance – and the associated rise in risk-weighted assets (RWA) for credit risk. Overall, RWA increased to €176 billion at the end of June 2018 (end of March 2018: €170 billion). The leverage ratio stood at 4.5% (end of March 2018: 4.6%). Total assets came to €488 billion (end of March 2018: €470 billion).

“We have addressed fierce competition and margin pressure by successfully expanding our lending. This is why our Common Equity Tier 1 ratio has moved a bit in the second quarter. We are expecting a CET 1 ratio of at least 13,0% for year-end”, said Stephan Engels, Chief Financial Officer of Commerzbank. “Our cost target of €6.5 billion for 2020 remains unchanged. In view of investment activities, regulatory contributions and project costs, we have slightly adjusted our cost target for the full year 2018 to €7.1 billion”.

Development of the segments

The Private and Small Business Customers segment continued on its growth path in the first half in a highly competitive market environment. Revenues excluding exceptional items rose by €160 million in the first half. Total revenues climbed to €2,439 million in the first half (H1 2017: €2,280 million). The revenue figure for the second quarter was €1,201 million (Q2 2017: €1,112 million).

In terms of Assets under Control in Germany, the segment has already met its target for the year of over €385 billion: at the end of the second quarter they amounted to €386 billion. The volume of mortgage lending reached €72 billion at mid-2018, while the consumer finance book totalled €3.5 billion. Growth in customer numbers slowed in the first half, with 145,000 net new customers – partly because, for reasons of client-profitability, the Bank will not engage in the current pricing competition for new retail customers at any cost.

Operating expenses increased in the first half to €1,945 million (H1 2017: €1,868 million). This is attributable to regulatory charges and further investments in digitalisation. The segment's risk result came to minus €121 million in the first half, with the second quarter accounting for minus €70 million of this.

Its operating profit rose to €373 million in the first half (H1 2017: €336 million), and to €171 million in the second quarter (Q2 2017: €142 million).

Commerzbank’s subsidiaries continued their growth trend in the first half. mBank increased its adjusted revenues to €518 million (H1 2017: €484 million) and acquired around 167,000 net new customers in the first half, around 88,000 of these in the second quarter. It now has about 5.5 million retail and corporate customers in Poland, the Czech Republic and Slovakia. Comdirect contributed revenues of €199 million in the first half, a year-on-year increase of €15 million. Commerz-Real’s revenues, at €119 million, were likewise higher than at mid-2017.

The Corporate Clients segment made good progress towards its growth targets in the first half. The loan volume in Mittelstand and International Corporates, including some short-term transactions, rose to €80 billion. With 7,500 net new customers since 2016, the segment already also exceeded its 2018 target of 7,000. However, continued high pressure on margins effected revenues despite successful growth initiatives. First-half revenues came to €1,914 million (H1 2017: €2,043 million). In the second quarter, revenues were supported by a large transaction in Credit Portfolio Management, and amounted to €948 million (Q2 2017: €943 million).

Operating expenses came to €1,502 million in the first half (H1 2017: €1,466 million). The risk result stood at minus €56 million for the first half, and minus €33 million for the second quarter.

The segment's operating profit for the first half was down on the previous year’s, at €357 million (H1 2017: €501 million). For the second quarter operating profit stood at €212 million (Q2 2017: €234 million).

The Asset & Capital Recovery segment achieved a positive operating result of €76 million in the first half of the year (H1 2017: minus €115 million, Q2 2018: €58 million). The revaluation of the Ship Finance portfolio following the introduction of IFRS 9 had a positive effect here. First-half revenues came to €107 million (H1 2017: €153 million). The revenue figure for the second quarter was €62 million (Q2 2017: €39 million). The risk result for the first half came out at €13 million. Operating expenses were down at €44 million (H1 2017: €57 million). The second quarter accounted for €17 million (Q2 2017: €28 million). The Bank’s Ship Finance portfolio amounted to €1.4 billion (H1 2017: €5.0 billion).

Outlook

The outlook has been adjusted slightly. In 2018, the Bank will focus on further growth and the implementation of its Commerzbank 4.0 strategy. Higher underlying revenues are expected at Group level with the Private and Small Business Customers segment exceeding and the Corporate Clients segment being below the 2017 figures. Driven by investments and compulsory contributions, costs are expected to be at around €7.1 billion. The risk result under IFRS 9 should be below 500 million, provided the global trade conflicts do not escalate significantly and there are no unforeseeable larger credit events. The Bank is aiming to resume dividend payments of 20 cents per share for financial year 2018.

*** From approximately 7 am onwards you can find broadcast-ready video material with statements by Stephan Engels at http://mediathek.commerzbank.de/.

*** Press contact Nils Happich +49 69 136-80529 Karsten Swoboda +49 69 136-22339 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.1 billion with approximately 49,300 employees.

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Today Commerzbank and ICBC announced that they have signed a Memorandum of Understanding (MOU) to support projects linked to the Belt and Road Initiative (BRI). China’s Belt and Road Initiative seeks to expand maritime routes and land infrastructure networks connecting China with Asia, Africa and Europe toboost trade by connecting and promoting economic cooperation across these continents. Commerzbank aims to support Belt and Road related projects with a business volume of USD 5bn in the following five years.

Nikolaus Giesbert, Divisional Board Member of Commerzbank AG and responsible for the Global Financial Institutions business, commented: “As a market leader in foreign trade for Germany it is part of our DNA to guide our clients in their investment ventures abroad. Commerzbank’s strong distribution capabilities in Europe combined with ICBC’s knowledge of the Chinese market will add value for German and European corporates as they navigate business opportunities along the trading corridors, and support Asian companies seeking to do business in Europe”.

Commerzbank is the only German bank to have an MOU with ICBC. The MOU seeks to explore further avenues of cooperation in Trade Finance, Corporate Advisory, Debt Capital Markets, Funding & Financing, Transaction Banking and Asset Management. With a banking relationship spanning over 20 years, the banks have worked on numerous deals together, most recently Commerzbank acted as Bookrunner on ICBC term loan facility and bond issuance in 2018.

Nick Johnston, Regional Board Member Asia of Commerzbank AG commented: “We are delighted to partner with ICBC to further support projects along the Belt and Road route. Through this framework we are building on our international reach in more than 50 countries offering more flexible funding, investment and risk management opportunities for our clients across the Belt and Road route”.

In 2017, China topped Germany’s foreign trade rankings with total trading value of EUR 186.6bn*, highlighting the importance of China for Europe’s largest economy.

Commerzbank has an integrated Corporate Clients business which offers capital market and corporate banking services; with a presence in China’s onshore financial centres as well as the region’s offshore hubs. Commerzbank has been accompanying and financing global trade since 1870 and has been present in Asia for more than 50 years, with the first representative office in Beijing opening over 30 years ago. Commerzbank settles approximately 30% of Germany’s foreign trade business.

BRI continues to create new trade and investment links between China and countries along the route. Commerzbank economists expect Foreign Direct Investment from China to BRI countries to have doubled to USD25 bn by 2020.

The land-based Silk Road Economic Belt (SREB) consists of overland corridors connecting China with Europe, via Central Asia and the Middle East. The Maritime Silk Road (MSR) links China’s southern coast to east Africa and the Mediterranean via the sea. The international freight rail routes linking China’s Chongqing and Germany’s Duisburg or Zhengzhou, a major transportation hub for Central China to Hamburg, home to one of the largest harbours in Europe are examples of the Belt Road Initiative.

To read Commerzbank’s full white paper on the Belt and Road Initiative the please click here

***

* According to the official data from Federal Statistics Office for Germany

*** Press contact Claire Tappenden +44 (0)20 7475 5151

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

*** About ICBC Industrial and Commercial Bank of China Ltd, established in 1984, has developed into the leading bank in the world, possessing an excellent customer base, a diversified business structure, strong innovation capabilities and market competitiveness. The Bank regards service as the very foundation to seek further development and has made efforts to build a “bank of the first choice of customers” while providing a comprehensive range of financial products and services to 6,271 thousand corporate customers and 567 million personal customers. In 2017, the Bank achieved a net profit of RMB287.5 billion, and ranked the 1st place among the Top 1000 World Banks by The Banker, ranked 1st place in the Global 2000 listed by Forbes, and topped the sub-list of commercial banks of the Global 500 inFortune for the fifth consecutive year. Up to Q1 2018, the Bank has branched out its operations in 45 countries and regions with 422 institutions, and has established correspondent bank relationships with 1,548 overseas banks in 143 countries and regions.

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The third survey by Fachhochschule des Mittelstands (FHM), the SME University in Bielefeld, revealed that the demands placed on finance and liquidity management have increased, leading to the proliferation and professionalisation of cash management systems. In the study, 280 SME finance managers were surveyed and when compared to previous studies there is now a greater proliferation of professional cash management systems in the SME sector. In 2015 only 36% of the surveyed finance managers had high-performance software to optimise payment flows, this figure is now 55%. In this respect, cash management solutions offered by banks have been able to clearly assert themselves on the market, with a share of 70%. Only 26% of the respondents use technology from software developers, with proprietary developments virtually no longer playing any role at all (4%).

The most striking difference is in the capabilities and usage patterns of the systems. For example, at some companies only one employee administers a particular account, while other firms use entire financial department to conduct their payment flows with various global bank relationships. For the academic head of the study, Prof. Dr. Volker Wittberg, this is not only due to the fact that SMEs vary in size, but is also a question of innovative strength and management. He commented, “There are certainly smaller companies which make full use of cash management systems that involve several employees, for example if the monitoring of incoming payments are the direct responsibility of individual employees in sales”.

Asked about the functionality of their systems, 83% of the respondents stated that they only have access to their cash management system via the computer on which the system is already installed. 22% of the respondents have access to their systems with every web browser. At present, mobile web applications do not yet play a role. 19% of the respondents can initiate and approve payment processes via an app, but only 10% have full access to their cash management system via an app. “App solutions have become omnipresent in many day-to-day settings thanks to their user friendliness. This is also true of cash management systems if they provide sufficient security,” says Frank-Oliver Wolf, head of Sales Payment Transactions and Foreign Trading Germany at Commerzbank. The phase of acutely low interest rates is having very little impact on the financial management of companies. One pattern that has emerged from study is that liquidity is spread across several accounts and utilised for swift settlement of liabilities so that charges on deposits are avoided.

At 78% the significance of fraud prevention has increased slightly over the previous year (71%). It may be seen that digitalisation goes hand in hand with the proliferation and development of cash management systems. This means two thirds (66.4%) of the respondents assume that digitalisation will lead to the expansion of their cash management systems. One third of those surveyed see direct networking with operational production and service provisions. “Digitalisation has also arrived in the financial management of small- and medium-sized enterprises now that security reservations are abating,” added Wolf.

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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Commerzbank has reached an agreement to sell its Equity Markets & Commodities (EMC) business to Societe Generale. The transaction is subject to pre-clearance with competent tax authorities, approval by further relevant authorities and the employee representative committees as well as the finalisation of legal documentation. It marks a further milestone in the execution of the “Commerzbank 4.0” strategy, which is deemed to reduce the Bank’s overall complexity and free up capital for investment in Commerzbank’s core franchise.

The transaction would include the transfer of EMC’s trading books and client franchise, staff, as well as parts of the IT infrastructure. EMC front office employees and certain associated support function staff would move to Societe Generale, subject to approval by employee representative committees.

The transfer of trading books and its associated balance sheet and revenue implications are estimated to take place gradually and to start at the end of 2018. Therefore, EMC revenues are expected to fade out in the profit and loss statement of Commerzbank during 2019. The reduction of expenses associated to Commerzbank’s EMC business is estimated to reduce the Bank’s cost base by at least €200m by year-end 2020 and to contribute to the cost reduction target announced as part of the “Commerzbank 4.0” strategy in 2016.

Since the announcement of the strategy, more than €3bn of risk-weighted assets (RWA) has been released due to the streamlining of the Bank’s Fixed Income, Currencies & Commodities (FICC) business. Through the sale of its EMC business, Commerzbank would additionally benefit from the release of RWA. Further to that, the sale would contribute to avoid the RWA impact expected to apply with the Fundamental Review of the Trading Book (FRTB) regulation.

Commerzbank’s EMC business comprises the Bank’s manufacturing and market making of flow and structured trading and investment products as well as its established exchange-traded funds (ETF) brand, Comstage, and its associated leading ETF market making platform. The Equity Capital Markets (“ECM”), the Equity Brokerage (“Equity Trading” and “Equity Sales”/”Brokerage”) businesses, and the hedging business for commodity risks will not be part of the transaction but will remain in Commerzbank’s Corporate Clients segment as part of its strategic client offering.

“With this agreement, we are delivering a further milestone in the implementation of our ‘Commerzbank 4.0’ strategy,” said Martin Zielke, Chief Executive Officer (CEO) of Commerzbank. “We are simplifying our business, we are contributing to our cost-cutting targets, and we are freeing up capital for the benefit of our core business with private and corporate clients,” he added.

“As a market leader for corporates in Germany, we will of course continue to offer the full range of capital markets products including commodity hedging products and brokerage services to our clients,” explained Michael Reuther, member of the Board of Managing Directors responsible for the Corporate Clients segment.

The current EMC business is an attractive and value-generating business. In 2017 it generated €381m gross revenues. It is an important ETF market maker in Europe, amongst the major retail products market makers and amongst the leading dealers of medium term notes.

“Over the last 29 years, the Equity Markets & Commodities business has grown in Commerzbank to be one of the leading European manufacturers and market makers of financial products. I am convinced that with Societe Generale and Lyxor, leading Derivatives and ETF Houses, we have found the right new owners for this franchise to grow, innovate and be even more successful in the future,” said Roberto Vila, Divisional Board Member Equity Markets & Commodities. “We will ensure a smooth and transparent transition process for investors who are holding our products,” Vila added.

***

Press contact Margarita Thiel +49 69 136-46646 Maximilian Bicker +49 69 136-22440

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

***

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Shanghai – Commerzbank today published a new white paper which examines how China’s Belt & Road Initiative (BRI) is influencing trends in Chinese outbound Mergers & Acquisitions (M&A), exports, financing and risk management. In particular, the corporate profile and financing requirements of Chinese companies is being transformed as a result of BRI, with increasingly sophisticated requirements for cross-border and financing solutions relating to key BRI corridors.

The white paper provides Commerzbank’s insights on how Chinese companies are fast learning how to overcome new challenges as they increasingly partner with foreign companies and become more adventurous when making BRI-related investments.

Commerzbank contends that BRI is helping to influence how Chinese companies talk to governments, engage with local investors, regulators and populations, learn about cultural obstacles, raise funds from international investors, attract partners and with a view to improving their global standing.

In Europe, for example, Chinese companies are helping to change perceptions by clearly outlining their intentions to protect jobs and safeguard technology. Meanwhile, in sub-investment grade markets, and regionally along the BRI route, local regulations can be difficult to navigate and non-payment risks are higher, creating a need for local expertise in order to better understand the environment and the appropriate hedging products to mitigate risks. Companies are now more aware of consolidated hedging at the group level to control investment risks overseas.

Perpetuating this is the experience of European companies and financial institutions, which are being increasingly utilised by Chinese companies as they scout projects, negotiate deals and build relationships that are accelerating the evolution of Corporate China.

The white paper also looks at the unprecedented opportunities presented by BRI to increase Environmental, Social and Governance (ESG) awareness in China, including financing tools - such as green bonds, green loans and climate bonds - and is hastening the arrival of more standardised global standards when it comes to what constitutes green financing. This comes against the backdrop of Chinese companies meeting the infrastructure needs of various non-investment grade countries that generally rely on non-renewable fuels such as coal. Managing this balancing act could be a pivotal moment for ESG.

Nick Johnston, Regional Board Member, Asia, commented: “Corporate China has undergone a significant transformation process at a considerable pace over the last 20 years. As this white paper from Commerzbank shows, we expect The Belt & Road Initiative will support efforts to promote this development to the next level”.

Roland Boehm, Divisional Board Member, Corporates International said: “In the future, Chinese corporates will continue to expand and diversify their financing, export, risk management and foreign acquisition activities. International banks with deep knowledge of regional markets and industry sectors, as well as capital market and international trade expertise, are playing a vital role in supporting this ongoing process”.

To read the full white paper please click here

**+ Press contact Claire Tappenden +44 (0)20 7475 5161 Claire.Tappenden@Commerzbank.com

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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Commerzbank has joined the Enterprise Ethereum Alliance (EEA). EEA is a worldwide blockchain consortium focussing on cross-industry cooperations. The Enterprise Ethereum Alliance connects Fortune 500 companies, start-ups, science, and technology providers with Ethereum experts. Launched in 2017, Ethereum’s goal is to create software for enterprises based on Ethereum technology that can handle complex and demanding applications at high speed. Ethereum is a distributed system (Distributed Ledger Technology, DLT) that depicts distributed programmes or contracts (smart contracts).

“Joining the Enterprise Ethereum Alliance is another important step for us in diversifying our blockchain activities and testing different technology standards”, said Jörg Hessenmüller, Divisional Board Member Development and Strategy at Commerzbank. “Blockchain is one of several emerging technologies that we explore at Commerzbank and that help us to further develop our banking business. We see great potential here. The Enterprise Ethereum Alliance offers us the opportunity to further expand our cross-industry collaborations”.

Commerzbank is investigating blockchain technology, inter alia, in its own blockchain lab where employees are testing possibilities for new applications in the banking business. Together with partners from financial, industrial, and scientific sectors, Commerzbank has already carried out several pilot transactions based on blockchain technology.

***

Press contact Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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As a result of the liberalisation of Chinese financial markets in recent years, the renminbi is also gaining in significance in Europe. Despite lesser GDP growth, considerable currency fluctuations and tighter regulation with regards to capital outflows, acceptance of the renminbi has risen significantly with German speaking corporate clients over the past two years. In cooperation with the market research institute FORSA, Commerzbank conducted its third renminbi survey amongst 2,400 small- and medium-sized corporate clients with business exposure to China within the D-A-CH region.

The new survey confirms expectations from the previous ones, yet also reveals some surprises: nearly one third of the participating clients (31 percent) have already converted their invoicing to renminbi when conducting trade with China. This figure is up from 17 percent in 2016. A further 5 percent of clients are planning to convert their invoicing process within the next 12 month. Corporate customers mention four measurable advantages from invoicing in renminbi: 1) possible advantages in price negotiations (62 percent), 2) hedging of the exchange rate risk (60 percent), 3) request of the Chinese trading partner (37 percent), as well as 4) advantages in tapping the Chinese market (35 percent). Interest in hedging against the foreign exchange risk has climbed considerably since the last survey (47 percent in 2016). Nearly two thirds (64 per cent) of the surveyed companies have already used advice on the topics of Asia to adjust their existing business setups to latest changes in the regulatory and financial landscape.

Frequently mentioned barriers to accept renminbi in international trade are “current use of EUR/USD in established procedure” with 59 percent and the “preference of EUR or USD by the Chinese trading partner” with 41 percent. For the first time 13 per cent of the companies mentioned of a ‘lack of confidence in the sustainability of the currency’ or expressed concern ‘due to existing capital controls’ (12 per cent) – in our opinion this represents a reaction to the tighter capital outflow restrictions by Chinese regulators.

Following the conversion of invoicing to renminbi, corporate enterprises make active use of well-established banking products to conduct trade with China: 89 percent of the surveyed companies process their payment transactions in renminbi and 82 percent use offshore renminbi accounts. More than half of the respondents (52 percent) use renminbi term deposits to invest their excess liquidity. When safeguarding against exchange rate risks, companies make active use of standard hedging products: FX spot transactions with 68 per cent and forward transactions with 63 per cent. 42 percent of active renminbi users stated that they trade this currency electronically on FX platforms. This further indicates that the Chinese currency is complex and that advisory services are appreciated when dealing with China. Renminbi usage is in particular demand by the manufacturing sectors. China is one of the most important trading partners for European importers and exporters, which as a result increases the acceptance of renminbi in trade.

“The renminbi is increasingly developing into a normal foreign currency for corporate clients,” says Michael Rugilo, Asia expert at Commerzbank. “However, its implementation into the business setup of our clients is complex as there is no ‘one size fits all’ solution. Procurement departments as well as treasury and accounting departments need to be involved during the implementation phase”.

Barbara Herbert, renminbi expert at Commerzbank, adds: “Despite the one-time setup requirements, companies frequently recognise the tangible benefits of using renminbi in trade. What we learn from client conversations is that the SME sector expects the Chinese regulation to return to the liberalisation path that we have seen in the past”.

***

Press contact Maximilian Bicker: +49 172 6108149 Bernd Reh: +49 170 9143734

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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At its next meeting, the European Central Bank (ECB) is expected to announce that it will halt its bond purchase programme by the end of the year, and it will almost certainly highlight the positive inflation outlook. However, according to Commerzbank chief economist Jörg Krämer, the ECB is obligated to stop its bond purchases. This will prevent them becoming a dominant creditor as it is not permitted to hold more than a third of government bonds. This means interest rates will remain unchanged. “The ECB will not raise its interest rates before summer of 2019,” said Krämer on Friday in Frankfurt. “And the ECB will do everything in its power not to misstate this as the beginning of a classic rate hike cycle”.

This is partly due to core inflation not picking up and also to Italy. It briefly looked like re-elections, but the right-wing Lega and the left-populist 5-Star Movement are now forming a government. “Although the new government is not aiming to exit the euro, it will pursue a hard stance with Brussels,” said Krämer. The costly plans of the new government would end efforts to lower the much too high Italian national debt. A return of the sovereign debt crisis could only be prevented by the ECB.

Meanwhile, US President Donald Trump has acted on his threats and imposed punitive tariffs on steel and aluminum imports from the EU. “The tariffs themselves are not a cause for concern, as the trade volume is comparatively low,” said Krämer. “The real danger is the possible escalation of the trade conflict”. The EU has already announced countermeasures. “If the countermeasures caused Trump to target the automotive sector next, we would have a problem,” Krämer warned. Therefore, Commerzbank economists see a downside risk to their 2018 Germany growth forecast (2018: 2.0 percent).

A possible trade war with the US is like a sword of Damocles hanging over the export-oriented German economy. Despite this, Commerzbank analysts still see the DAX at 13,500 points at the end of the year, but the volatility of the stock market is likely to remain high. In addition, oil prices continue to fluctuate. They rose significantly after the termination of the nuclear agreement with Iran, but have since stabilised due to rumours that the OPEC could expand its production volumes. The Brent oil price should be $65 a barrel by the end of 2018. The US dollar should appreciate against the euro by year-end (EUR-USD end of 2018: 1.16).

*** Press contact Stefan Gringel +49 69 136-51435 stefan.gringel@commerzbank.com

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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In the leading survey amongst professionals in the European stock markets, Commerzbank defended its top position in equity research and sales for Germany. In this year’s Extel survey the Bank received the first place in the category “Germany: Leading Brokerage Firm” for the seventh time in a row. Commerzbank analysts and sales staff were also able to win several individual rankings in the survey among approximately 11,000 investment professionals across Europe.

Christoph Dolleschal, Head of Corporate Equity Distribution and Deputy Head of Research at Commerzbank, said: “The quality and stability of research has always been crucial. Due to the reduction of broker lists connected to MiFID II, quality has become even more important. Therefore, we will continue to expand the Small & Mid Cap Coverage this year in order to further build on our excellent network in the German market.

Four of the best analysts in the category “Germany: Country Research” are employed at Commerzbank. Achim Matzke, Head of Technical Analysis & Index Research, once again leads the individual ranking. In addition, Andreas Hürkamp (3rd place), Petra von Kerssenbrock (6th place) and Heike Pauls (8th place) were awarded in this category. Commerzbank took second place in the overall ranking for “Germany: Country Research”. In the important category “Germany: Small & Mid Caps Research” Commerzbank again defended its first place; Commerzbank’s Heike Pauls, Thomas Becker and Ingo Schachel were placed as best analysts, Andreas Riemann came eighth.

Commerzbank also leads the categories “Germany: Equity Sales” and “Germany: Company & Expert Meetings”. The flagship conference German Investment Seminar (GIS) has been voted best “Pan-European Broker Conference-North America” by companies as well as investors. The Bank secured second place in the categories “Germany: Small & Mid Caps Sales”, “Multi Asset Research” and “Index Analysis” as well as “Equity Technical Analysis & Charting”, thus defending or improving its rankings from last year.

Robert Hurkmans came top in “Germany: Equity Sales” and took third place in “Germany: Small & Mid Caps Sales”, followed by Stephan Klepp in fifth place. In “Multi Asset Research” Max Kettner secured second place and Alexander Krämer came third. Achim Matzke took second place in the categories “Index Research” as well as “Equity Technical Analysis & Charting”, Petra von Kerssenbrock followed ranking fifth and sixth respectively.

*** Press contact Stefan Gringel +49 69 136-51435 stefan.gringel@commerzbank.com

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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The increased digital networking and automation of machines via the Internet of Things (IoT) in the age of Industry 4.0 makes it possible to access machine capacity and production data. The Internet of Things refers to networked physical devices that communicate among themselves on their own via the internet. Mechanical engineers and operators, for example, can use it to optimise machine capacity, minimise downtimes and customise maintenance cycles to suit utilisation patterns. The objective is to improve the efficiency of use for capital goods. These new technologies also make new business models possible, such as pay per use, pay per part, equipment as a service, and more.

Commerzbank has now become the first German bank to develop a data-based loan solution for this purpose. At its core, the new “pay-per-use loan” is an investment loan whose repayment is linked to the usage of the machine. The loan repayment schedule is calculated based on the actual usage of capital equipment, which helps preserve the user’s liquidity. If machine utilisation is low, the repayment burden is also low. It follows, then, that if there is an increase in production – and a rise in turnover – the repayment rate for the pay-per-use loan also rises.

This innovative solution for corporate clients has been developed by Big Data & Analytics experts at Commerzbank. At the beginning of the year, Commerzbank founded the new group division Big Data & Advanced Analytics under the leadership of Kerem Tomak in order to perform focused analytics of big and complex data and their business usage.

The prototype for this new digital loan model was put together by Commerzbank with machine tool manufacturer EMAG GmbH & Co. KG in Salach (Baden-Württemberg). The networking of the machine tools at EMAG allow for a detailed look at their utilisation patterns, which in turn dictates the calculation of the loan repayment rate. KMB Technologie für rationelle Fertigung mbH, a company specialising in rationalised manufacturing and headquartered in Saxony-Anhalt, uses these types of machines for parts production in the automotive sector. The production cycle typical of the industry is well reflected in the repayment process of the prototype.

For Dr. Achim Feinauer, COO of EMAG GmbH & Co KG, the pay-per-use loan represents one of the few features of Industry 4.0 which has successfully been translated from theory into practice. “On the path to networked production many obstacles, very often mental ones, have to be overcome. Pay-per-use is characterised by a direct combination of usage, i.e. turnover and earnings, to the costs of the investment. The benefits to liquidity requirements are tangible on a daily basis and are an incentive to implement Industry 4.0 in practical day-to-day production”.

“Thanks to the ability of our machines to communicate information, we are creating additional benefits for our customers,” says Claus Mai, CFO of EMAG GmbH & Co. KG. “As a result of the cooperation with Commerzbank and the development of customised financing, these benefits are heightened for our customers. As one of the leading providers of manufacturing systems we are pleased that Commerzbank is taking such innovative paths together with us”.

“The pay-per-use loan from Commerzbank allows us to invest in a new generation of machines from EMAG,” says Sven Hartwich, Commercial Manager at KMB Technologie Gesellschaft für rationelle Fertigung mbh. “With the flexible repayment rates we can adjust our liquidity for production and turnover. This in turn allows us to lower our break-even point further in order to achieve better overall financial stability”.

Jan-Philipp Gillmann, Divisional Board Member, Segment Development & Digitalisation in the Corporate Clients business segment at Commerzbank adds: “With our new pay-per-use loan, as the leading bank for corporate clients, we are taking another major step towards Industry 4.0. We are delighted that our long-standing client EMAG as well as KMB were willing to take that step with us. The jointly developed solutions are an important new element in our digitalisation strategy. Following on from the fully digitalised advisory process for hedging products and the digital loan platform, the pay-per-use loan will be rolled out over the course of this year as the next innovation in financial solutions for small and medium-sized enterprises”.

***

Press contact

EMAG GmbH & Co. KG Markus Isgro +49 (0) 7162 17-4658 Marketing misgro@emag.com

Press contact

Commerzbank AG Maximilian Bicker +49 69 136 22440 Corporate Communications Corporate Clients Maximilian.Bicker@commerzbank.com

***

About EMAG GmbH & Co. KG

The EMAG Group is one of the few manufacturers of manufacturing systems able to cover the entire process chain in machining before and after heat treatment. Thanks to access to a wide range of technologies (gear cutting, drilling, turning, milling, grinding, laser welding, induction hardening, ECM deburring, PECM machining, automation) EMAG realises complete process chains in the fields of gear, engine and chassis component manufacturing, as well as in the non-automotive sector. In doing so the long-standing company domiciled in Salach is able to avail of the extensive experience of all of the member companies of the EMAG Group and offer its customers modular turn-key manufacturing solutions of the highest standard. The group of companies employs approx. 3,000 personnel worldwide and generated consolidated sales of ca. 600 million euros in 2017.

***

About KMB Technologie Gesellschaft für rationelle Fertigung mbh

Through its high-quality and on-time deliveries, KMB Technologie has developed an excellent reputation in the automotive supplier industry in Saxony-Anhalt. In addition to large-scale production, the company also manufactures individual components, samples and small batches for a wide variety of machining levels. KMB is focused on the manufacture of parts, components, assembly groups and systems for the automotive industry and mechanical engineering. The production facilities were especially designed and installed for rationalised large-scale manufacturing. Currently about 35,000 parts leave the plant every day. KMB is not only a reliable and competent partner in large-scale manufacturing, but also in the fabrication of prototypes and pilot production series. Quality management guarantees conformity with the specific requirements of the automotive industry through high levels of process security in manufacturing.

KMB Technologie Gesellschaft für rationelle Fertigung mbH Industrieweg 9 | D-39261 Zerbst / Anhalt | Tel.: +49 (0) 3923 61 23-0 | Fax: +49 (0) 3923 61 23-290 | E-mail: info@kmb-technologie.de

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

***

Disclaimer

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On May 23rd, 2018, thyssenkrupp traded an FX Forward with Commerzbank and this transaction was instantaneously replicated in a Blockchain successfully. The use of Blockchain completely eliminates the need for a manual or semi-automated reconciliation between the client and the bank, thereby drastically reducing operational risks in FX transactions. The EUR/PLN FX Forward deal, which amounted to EUR 500,000 with a one month tenor, was initiated by thyssenkrupp using FX Live Trader, Commerzbank’s flagship FX Trading Platform. The deal confirmation was sent to thyssenkrupp directly via CORDA, a distributed ledger designed for finance by the R3 blockchain consortium.

On this achievement, Nikolaus Giesbert, Divisional Board Member, Fixed Income, Currencies & Commodities and Trade Finance & Cash Management, Commerzbank AG, said “Reconciliation is a major issue for banks when trading FX. Significant resources are dedicated to resolving the issues that occur during the matching process. This deal demonstrates how the use of distributed ledger can transform and digitalise the processes in this space. Commerzbank is pleased to be working with thyssenkrupp on this deal and to further develop digital banking solutions for corporates”.

With this pilot transaction, Commerzbank and thyssenkrupp have now affirmed a real FX transaction via Blockchain. In the future, the option of offering FX Post Trade Confirmation and Matching via Blockchain may offer significant benefits. Firstly, a more streamlined FX transaction process and a real time confirmation can offer efficiency gains for corporate treasurers by offering real time liquidity positions. Secondly, the use of Blockchain will completely eliminate the need for transaction reconciliation, since the transaction is stored as a single immutable record on the Blockchain. This drastically reduces time delays, operational trade risks, manual errors, and reconciliation problems in the process. Thirdly, the Blockchain based system will eliminate the need of the various third party solutions that banks use to send transaction confirmations to the clients. However, to fully realize these efficiency gains, technical, regulatory and legal requirements need to further develop.

“The comprehensive insight into the Blockchain process clearly shows how to connect market participants in the future in a highly secure and efficient manner while reducing transaction costs by avoiding external software solutions. The simplified process with maximum transparency reduces the hurdles for financial integration and allows us to rethink existing processes. At thyssenkrupp, we monitor digital developments very closely and look forward to introduce more applications with associated value for our treasury operations“, said Mr. Thomas Empelmann, Head of Corporate Finance, thyssenkrupp AG.

***

Press contact

Josefin Altrichter +49 69 136 80209

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

***

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, particularly to reduce its ACR portfolio, 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.

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17 May 2018 – Commerzbank, supported by SAP, has successfully completed an end-to-end integration between SAP S/4HANA business processes and R3’s Corda blockchain platform.

This is the first step toward enhancing the supply chain network of corporate clients to offer more efficient access to trade and supply chain finance services. This solution has the potential for corporations to significantly enhance and leverage their access to future business models based on distributed ledger technology, via their own corporate SAP system.

By deploying Corda’s secure blockchain technology to SAP Cloud Platform, the existing application programming interfaces (APIs) are utilized to access business networks and systems across all industries. The deployment of Corda to SAP Cloud Platform opens up the possibility for the Corda platform to integrate other technologies and capabilities such as API Management, Machine Learning and Analytics. Such an approach enables corporations to operate on a highly distributed but permission based and secure platform while fueling the next wave of business innovations utilizing the key benefits of blockchain-based technologies – trust, transparency and scalability.

Commerzbank is a member of R3’s global network and an active participant in a number of R3 initiatives on use cases in areas such as Trade Finance. SAP is actively collaborating with both R3 and R3 members.

“The successful connection test between Corda and SAP, as an important Enterprise Technology Provider, is a significant milestone in our journey to develop and implement digital product solutions. In Trade Finance, we see significant potential and the need to support digital data flows along the supply chain of our corporations. This is only possible by connecting ERP systems to new Distributed Ledger Technology (DLT) networks and platforms. We will share the results of this technical test in our ongoing projects with R3 and aim to use the SAP connection with Corda in future pilot transactions,” said Nikolaus Giesbert, Divisional Board Member, Fixed Income, Currencies & Commodities and Trade Finance & Cash Management, Commerzbank AG.

“Trade finance is a key area of focus for R3 as we work with our partners to develop a vibrant ecosystem of applications on Corda. Integrating the platform with SAP’s business processes is a further milestone in enabling widespread adoption of Corda by businesses around the globe,” said David E. Rutter, Chief Executive Officer, R3.

“This proof of concept, collaborating with Commerzbank, has shown the ease with which SAP S/4HANA via SAP Cloud Platform can easily exchange data with R3’s Corda network,” said Falk Rieker, Global Head of IBU Banking, SAP.

Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

Media contact: Josefin Altrichter, +49 69 136 80209, JosefinMarie.Altrichter@commerzbank.com

R3 is an enterprise software firm working with a network of over 200 banks, financial institutions, regulators, trade associations, professional services firms and technology companies to develop on Corda, its blockchain platform designed specifically for businesses.

R3’s global team of over 180 professionals in 11 countries is supported by over 2,000 technology, financial, and legal experts drawn from its global member base. R3 is backed by investment of USD 107 million from over 40 firms.

Corda is the outcome of over two years of intense research and development by R3 and its members and meets the highest standards of the banking industry, yet is applicable to any commercial scenario. It records, manages and executes institu-tions’ financial agreements in perfect synchrony with their peers, creating a world of frictionless commerce. Learn more at www.r3.com.

Media contact: Nick Warren/Nick Murray-Leslie, Chatsworth Communications, +44 (0)207 440 9780

Charley Cooper, R3, +1 929 329 1550, charley@r3cev.com

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In the first quarter of 2018, Commerzbank continued on its growth path and made further progress on its strategy. The two client segments, Private and Small Business Customers and Corporate Clients, further enlarged their customer base and are well on track to reaching their customer growth targets for 2018. The Bank additionally added corporate loan growth as a key indicator of its strategy execution in its reporting. The digitalisation of the business also progressed. In the first quarter the Corporate Clients segment successfully rolled out its digital onboarding for corporates and a digital working-capital lending platform. Also, the Bank aims to resume dividend payments for financial year 2018, and made an accrual of 5 cents per share in the first quarter.

The Bank’s operating performance in the first quarter of 2018 was stable. Revenues adjusted for exceptional items rose slightly to €2,301 million (Q1 2017: €2,282 million). Overall, revenues stood at €2,302 million (Q1 2017: €2,390 million). The operating profit came to €289 million (Q1 2017: €330 million). The risk result under International Financial Reporting Standard 9 (IFRS 9) stood at minus €77 million. It reflects the eliminated drag from ship finance, due to the revaluation of the Ship Finance portfolio following the introduction of IFRS 9. The Bank's non-performing loan (NPL) ratio, which was already low compared to its European peers, dropped to 1.0%, illustrating the Bank's healthy risk profile.

Operating expenses, at €1,936 million, were higher year-on-year (Q1 2017: €1,865 million). This reflects investments in strategy implementation and digitalisation which increased in the course of the year as planned and regulatory burdens. The operating expenses for the first quarter include compulsory contributions of €244m. Thereof, €186m was the contribution for the European bank levy for the year 2018, which increased by €15m year-on-year and was fully booked in the first quarter. Running costs for the fulfilment of regulatory requirements, such as those incurred in connection with MiFIR, MiFID II and IFRS 9, increased as well. The pre-tax profit stood at €289 million in the first quarter of 2018. The net profit came to €250 million (Q1 2017: €229 million). Earnings per share came in at €0.20 in the first quarter of 2018 (Q1 2017: €0.18).

“We are delivering on what is the core of our strategy: Growing our businesses with private and corporate customers and digitalising our business”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “As announced, we are aiming to resume dividend payments for financial year 2018 and have made an accrual of 5 cents per share in the first quarter”.

Common Equity Tier 1 ratio at 13.3% – risk profile shows further improvement

Risk-weighted assets (RWA) in the first quarter rose by €1 billion to €170 billion at the end of March 2018. With the introduction of IFRS 9, RWA had decreased by €2 billion and stood at pro forma € 169 billion per 1 January 2018. The increase in the first quarter was mainly due to higher lending in the client segments. The Common Equity Tier 1 ratio (CET 1) stood at 13.3% at the end of the first quarter. Thus, after IFRS 9 Commerzbank is still above all regulatory requirements and has leeway for further growth and the dividend accrual in the first quarter. The leverage ratio fell to 4.6% quarter-on-quarter, after 5.1% at the end of December 2017, mainly due to IFRS 9. Total assets came to €470 billion (end of 2017: €453 billion).

“Our business grew further in the first quarter. Growth is our answer to what remains a highly competitive German banking market”, said Stephan Engels, Chief Financial Officer of Commerzbank. He added: “Strict cost management remains a priority to compensate for large investments in digitalisation, increasing compulsory levies and the implementation of regulatory projects”.

Development of the segments

The Private and Small Business Customers (PSBC) segment continued its growth in the first quarter of 2018. Revenues climbed to €1,237 million (Q1 2017: €1,168 million). Excluding non-recurring items they improved by €44 million due to the good loan growth, more than offsetting the impact of negative interest rates. Operating profit rose year-on-year to €202 million (Q1 2017: €194 million).

The Bank gained approximately 73,000 net new private and small business customers in Germany in the first quarter, meaning customer growth was higher than in the previous two quarters. The PSBC segment has gained a net 712,000 new customers in Germany since October 2016, so it is well on track to reach its target of one million net new customers by the end of 2018. Assets under Control showed large gains in loans (€3 billion), deposits (€3 billion) and net new inflows in securities accounts (€3 billion). Thanks to this growth, Assets under Control amounting to €376 billion remained stable relative to the previous quarter, despite falling equity markets.

mBank, Comdirect and Commerz Real saw further business growth in the first quarter of 2018, and were able to increase their revenues compared to the first quarter of 2017. While Comdirect profited from customer growth and increased client trading activity due to higher market volatility, mBank benefited from margin expansion as well as volume growth in loans and deposits.

The risk result for the segment came to minus €52 million. This includes the risk costs for the instalment loan business, which Commerzbank has been operating on its books after it terminated a joint venture. Due to the high quality of the loan book, the risk result is still at a low level. Operating expenses climbed year-on-year to €984 million (Q1 2017: €941 million). This includes the charges for both the European bank levy and the Polish banking tax, which went up by €7 million year-on-year, as well as costs for the implementation of MiFID II and investments in growth and digitalisation. Costs were down quarter-on-quarter, though (Q4 2017: €1,016 million).

The Corporate Clients (CC) segment registered further growth as well. The Bank gained around 1,000 net new corporate clients in the first quarter and increased the volume of lending to German Mittelstand companies and large corporates year-on-year. Business was marked by pricing competition on the German market and muted client demand for capital market products in the first quarter of 2018. The operating profit was down in the first quarter, at €145 million (Q1 2017: €267 million). Revenues excluding valuation effects decreased year-on-year to €967 million (Q1 2017: €1,068 million). The Mittelstand and International Corporates divisions reflected the challenging market environment. Revenues in Financial Institutions increased quarter-on-quarter, after the Bank tightened its risk and compliance framework in 2017.

The segment’s risk result stood at minus €23 million in the first quarter of 2018. Operating expenses remained close to stable year-on-year, at €799 million (Q1 2017: €790 million). Personnel reductions undertaken as part of the segment’s strategic realignment compensated for higher investments.

In the Asset & Capital Recovery (ACR) segment, the revaluation of the Ship Finance portfolio following the introduction of IFRS 9 had a positive impact. The segment's operating result improved in the first quarter of 2018 to €18 million (Q1 2017: minus €33 million). Revenues came to €45 million (Q1 2017: €115 million). The ACR segment did not generate any charges for the risk result in the first quarter (loan loss provisions Q1 2017: €119 million). Operating expenses remained stable at €27 million in the first quarter of 2018 (Q1 2017: €29 million).

Outlook

The outlook remains unchanged: In 2018 the Bank will focus on further growth and the implementation of its Commerzbank 4.0 strategy. Higher adjusted revenues are expected for both the Private and Small Business Customers and the Corporate Clients segments. Despite ongoing investments in digitalisation and IT, the Bank will manage its costs at around €7.0 billion. The risk result under IFRS 9 is expected to be below €600 million. The Bank aims to resume dividend payments for financial year 2018.

*** From approximately 7 am onwards you can find broadcast-ready video material with statements by Stephan Engels at http://mediathek.commerzbank.de/.

*** Press contact Nils Happich +49 69 136-80529 Karsten Swoboda +49 69 136-22339 Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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Dr. Stefan Schmittmann is the new Chairman of the Supervisory Board of Commerzbank. At its constitutive meeting following the Annual General Meeting on 8 May the members of the executive body unanimously elected Schmittmann as its chairman. Stefan Schmittmann was a Member of Commerzbank’s Management Board from 2008 to 2015, most of the time responsible for Risk Management. He began his professional career in 1986 with Bayerische Vereinsbank.

“I am very pleased that Stefan Schmittmann is to be my successor,” said the retiring Chairman of the Supervisory Board, Klaus-Peter Müller. “He is an experienced banker with extensive specialist knowledge of our industry. I am convinced that he will be an excellent Chairman of the Supervisory Board”.

Following his election, Stefan Schmittmann proposed to the Supervisory Board that Klaus-Peter Müller be appointed as Honorary Chairman of the Supervisory Board. The Supervisory Board unanimously approved this proposal. “Klaus-Peter Müller has devoted 51 years of his life to the Bank, has consistently overseen its development, and as Chairman of the Supervisory Board has guided it through a number of turbulent years with a steady hand. This deserves our utmost respect. I am pleased that Klaus-Peter Müller is maintaining his links to the Supervisory Board and the Bank as the honorary chairman,” said Schmittmann.

It is the second time in the history of the Bank that a former Chairman of the Supervisory Board has been appointed as honorary chairman. Prior to Klaus-Peter Müller, this honour was extended to Walter Seipp, who had been the head of the Supervisory Board from 1991 to 1999.

*** Press contact Margarita Thiel +49 69 136-44646 Nils Happich +49 69 136-80529 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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The shareholders voted as follows on the key items on the agenda:

Resolution on the appropriation of distributable profit (item 2)

The Annual General Meeting voted, as proposed by the Board of Managing Directors and the Supervisory Board, to allocate the entire distributable profit for financial year 2017, as reported in the annual financial statements pursuant to the German Commercial Code (HGB), in an amount of approximately €88.1 million, to profit reserves. The resolution was passed with a majority of 99.50%.

Discharge (items 3 and 4)

The members of the Board of Managing Directors and Supervisory Board were discharged with a majority of 99.33% and 99.33%respectively.

New election of members of the Supervisory Board (item 6)

As proposed by the Supervisory Board, the Annual General Meeting appointed the following shareholder representatives, by way of an individual vote, to the Supervisory Board of Commerzbank AG until the close of the Annual General Meeting which resolves about the ratification of actions for financial year 2022, with an average majority of 97.68% of the votes: Sabine U. Dietrich (former member of the Board of Managing Directors of BP Europe SE), Dr. Tobias Guldimann (independent consultant in the financial sector), Dr. Rainer Hillebrand (member of the Board of Managing Directors of the Otto Group, Vice Chairman of the Board of Managing Directors), Dr. Markus Kerber (State Secretary at the Federal Ministry of the Interior, Building, and Community), Anja Mikus (Chief Executive Officer/Chief Investment Officer of the public endowment “Fonds zur Finanzierung der kerntechnischen Entsorgung” (Nuclear Waste Disposal Fund)), Dr. Victoria Ossadnik (Chief Executive Director of the Board of Managing Directors, E.ON Energie Deutschland GmbH), Dr. Stefan Schmittmann (former member of the Board of Managing Directors of Commerzbank AG), Robin J. Stalker (former member of the Board of Managing Directors of adidas AG), Nicholas Teller (Chairman of the Advisory Board of E. R. Capital Holding GmbH & Cie. KG), and Dr. Gertrude Tumpel-Gugerell (former member of the Executive Board of the European Central Bank).

Four new shareholder representatives were elected to the Supervisory Board: Dr. Rainer Hillebrand, Dr. Victoria Ossadnik, Dr. Stefan Schmittmann and Robin J. Stalker. The previous Supervisory Board members Karl-Heinz Flöther, Dr. Stefan Lippe, Klaus-Peter Müller, and Dr. Helmut Perlet stepped down from the executive body at the close of the 2018 Annual General Meeting.

*** Press contact Nils Happich +49 69 136-80529 Karsten Swoboda +49 69 136-22339 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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Commerzbank’s shareholders, meeting today in Frankfurt, are to elect the new members of the Supervisory Board as scheduled. If the Annual General Meeting accepts the Supervisory Board’s proposals, four new shareholders’ representatives will join the Supervisory Board: Dr. Rainer Hillebrand (member of the Board of Managing Directors of the Otto Group, Vice Chairman of the Board of Managing Directors), Dr. Victoria Ossadnik (Chief Executive Director of the Board of Managing Directors, E.ON Energie Deutschland GmbH), Dr. Stefan Schmittmann (former member of the Board of Managing Directors of Commerzbank AG), and Robin J. Stalker (former member of the Board of Managing Directors of adidas AG). In addition, Sabine Dietrich, Dr. Tobias Guldimann, Dr. Markus Kerber, Anja Mikus, Nicholas Teller and Dr. Gertrude Tumpel-Gugerell are standing for re-election.

Karl-Heinz Flöther, Dr. Stefan Lippe, and Dr. Helmut Perlet will leave the board with effect from the close of the Annual General Meeting, as will Klaus-Peter Müller. He has served as Chairman of the Supervisory Board since 2008. If elected, Dr. Stefan Schmittmann will be proposed to the members of the Supervisory Board as its new chairman.

Müller, speaking on the fringes of the Annual General Meeting, gave this assessment: “The last few decades have been challenging; the whole of the banking sector has experienced highs and lows. So I am especially pleased, as I leave the Board, that the Bank is in a good position, with a stronger capital base, reduced risks and an improved balance sheet. We have made digital transformation a priority, and are making good progress. All these factors provide a good basis for a sustainable increase in our profitability”.

“You have helped shape Commerzbank and its particular culture“, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank, in recognition of Müller’s long service with the Bank. “You have worked tirelessly for this Bank. There have been some difficult situations, but you always dealt with them in a resolute, professional manner”. Zielke added: “I have always valued your determination, but also your courage to challenge the status quo and to attempt something new. Indeed, you have been actively involved in and supportive of the current radical restructuring of ‘your’ Commerzbank”.

At the ordinary Annual General Meeting in Frankfurt, shareholders will also vote on the proposal to allocate the distributable profits from financial year 2017 in full to the revenue reserves. The purpose of this is to facilitate the ongoing implementation of the Commerzbank 4.0 strategy and to strengthen the Bank’s equity capital. In financial year 2017, the operating profit under IFRS for the Commerzbank Group came to €1,303 million. Despite restructuring expenses of €808 million, the net profit attributable to shareholders was positive, at €156 million.

Martin Zielke said: “Last year, we made further headway. We recorded growth in customers and assets under management. In the Private and Small Business Customers segment, we acquired more than 500,000 new customers in Germany. Our business volume increased by almost €40 billion. In corporate banking, too, we are seeing growth in all client categories. Last year we managed to win over more than 4,000 new clients”. This growth enabled Commerzbank to almost fully offset the effects of negative interest rates and competition-related low margins.

“Last year we made excellent progress in modernising Commerzbank”, commented Zielke. In 2018 too, the Bank will focus on the implementation of the Commerzbank 4.0 strategy. “We are still in the middle of restructuring“, Zielke said. “We are now in a crucial phase, and we need to keep up the momentum. After all, we still have some way to go on our path to higher profitability. ”

To this end, the Bank has set itself two clear objectives: growth and digitalisation. “We are aiming to gain 2 million new private and small business customers and 10,000 new corporate clients by the end of 2020“, Zielke went on. Meanwhile the Bank is to become more digitalised: “As we grow, we are simultaneously simplifying our business processes. Our Bank needs to become faster and more agile”.

Zielke added: “We want to grow, and to reinvent ourselves. We are working hard to achieve these objectives. We want to boost our profit again this year. And we are aiming to resume dividend payments for financial year 2018. We already made an accrual in the first quarter for this purpose.“

The agenda can be found at www.commerzbank.com/agm, along with other AGM-related documents and a link to the speeches of the Chairman of the Supervisory Board and the Chairman of the Board of Managing Directors. The Twitter hashtag for the AGM is #CobaHV.

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Press contact Margarita Thiel +49 69 136-46646 Erik Nebel +49 69 136-44986 Maurice Farrouh +49 69 136-21947

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About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, and Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned its clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is the leading finance provider for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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19th April 2018 – Batavia, the blockchain-based global trade finance platform that has been jointly developed by a consortium consisting of Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, IBM and UBS has successfully completed its first live pilot transactions with corporate clients.

Initial transactions included the trading of:

These transactions mark an important step in establishing Batavia as an open ecosystem that is built on the IBM Blockchain Platform. It has the potential to revolutionize the client experience by providing a digital and automated way of arranging, securing and financing international trade transactions. The pilot transactions were conducted with a variety of transportation modes, geographies and trading parties of various sizes, highlighting Batavia’s ability to scale and manage diverse transaction types.

In covering the end-to-end process of a trade, Batavia encompasses both the closing of trade agreements and the execution of smart payments, which can be automatically triggered by specified events in the supply chain and recorded in the blockchain. The platform is able to integrate track and trace and risk management tools, which can be tied to key events in the supply chains and signals from IoT devices, agreed upon between buyer and seller. These and many other Batavia features help to establish the trade finance platform as a solid foundation for a future trade finance ecosystem.

Alexander Dietlmeier, Head of Group Treasury at AUDI AG: “Blockchain is an important future technology for Audi. In cooperation with Commerzbank, we have processed a worldwide, blockchain-based commercial transaction through the Batavia platform for the first time – efficiently, safely and transparently. This achievement has demonstrated to us once again the great potential this innovative application holds. We have gained important experience that will enable us to continuously develop our capabilities in this field, and we will be testing this technology for other use cases in our distribution process”.

“It is very important to involve our corporate clients as early as possible in our research and development activities regarding the digitalisation of trade finance. I am very grateful to Audi for their cooperation and their support for our project. Our joint successful live transaction gives an idea of the potential of our platform. The trade data and the smart payment automatically triggered by shipment data build an important basis for risk management and financing tools adding value to every supply chain”, said Niko Giesbert, Divisional Board Member, Fixed Income, Currencies & Commodities and Trade Finance & Cash Management, Commerzbank AG.

Building on the successful development of a minimum viable product and the first pilot transactions with clients, the Batavia project is looking to enter a new phase focused on the building out of a production-ready solution. This may include joining forces with fintechs, financial institutions or other innovation leaders in the market.

About Audi

The Audi Group, with its brands Audi, Ducati and Lamborghini, is one of the most successful manufacturers of automobiles and motorcycles in the premium segment. It is present in more than 100 markets worldwide and produces at 16 locations in twelve countries. 100 percent subsidiaries of AUDI AG include Audi Sport GmbH (Neckarsulm), Automobili Lamborghini S.p.A. (Sant’Agata Bolognese, Italy) and Ducati Motor Holding S.p.A. (Bologna, Italy).

In 2017, the Audi Group delivered to customers about 1.878 million automobiles of the Audi brand, 3,815 sports cars of the Lamborghini brand and 55,900 motorcycles of the Ducati brand. In the 2017 fiscal year, AUDI AG achieved total revenue of €60.1 billion and an operating profit of €5.1 billion. At present, approximately 90,000 people work for the company all over the world, more than 60,000 of them in Germany. Audi focuses on sustainable products and technologies for the future of mobility.

Media contact: Lena Bösch, Tel.: +49 841 89-44038, lena.boesch@audi.de

About BMO Financial Group

Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8thlargest bank, by assets, in North America. With total assets of $728 billion as of January 31, 2018, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

Media contact: Amanda Robinson (Toronto) Tel.: (416)-867-3996, amanda.robinson@bmo.com

About CaixaBank

CaixaBank is leader in retail banking in Spain, with a 26.7% share among individual customers who make it their main bank. The bank, headed by chairman Jordi Gual, and led by CEO, Gonzalo Gortázar, has around 16 million customers in Spain and Portugal, with 5,379 branches, the largest commercial network in the Iberian peninsula. CaixaBank has been named "Best Bank in Spain 2017" by the UK magazine Euromoney and New York magazine Global Finance also recognised the entity as the "Best Bank in Spain 2017". In 2018, Euromoney named CaixaBank, the "Best Private Bank in Spain" for the fourth time in a row.

Media contact: CaixaBank Corporate Communications and External Relations Department, Tel.: +34 93 404 2414, prensa@caixabank.com

About Commerzbank

Media contact: Anastassia Hättich, Tel.: +49 69 136 49351, anastassia.haettich@commerzbank.com

About Erste Group

Erste Group is the leading financial services provider in the eastern part of the EU and the preferred partner of corporates in the region. Around 47,000 Erste Group employees serve over 16 million customers in 2,600 branches in seven countries: Austria, the Czech Republic, Slovakia, Romania, Hungary, Croatia, and Serbia. As per YE2017, Erste Group had EUR 220.7 billion in total assets, a net profit of EUR 1.31 billion, and a tier-1 capital ratio of 13.4% (CET-1, Basel III, phased in).

Media contact: Peter Klopf, Tel. +43 5 0100 11676, peter.klopf@erstegroup.com

About IBM

Batavia is built on the IBM Blockchain Platform, powered by The Linux Foundation’s Hyperledger Fabric. IBM is the leader in open-source blockchain solutions built for the enterprise. As an early member of Hyperledger, an open source collaborative effort created to advance cross-industry blockchain technologies, IBM is dedicated to supporting the development of openly-governed blockchains. IBM's blockchain platform is enabling hundreds of clients and thousands of developers to build and scale active networks across complex use cases, including cross border payments, supply chains, and digital identification. For more information about IBM Blockchain, visit www.ibm.com/blockchain.

Media contact: Holli Haswell, Tel.: +1-512-680-0593, hhaswell@us.ibm.com

About UBS

UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS' strategy is centered on our leading global wealth management business and our premier universal bank in Switzerland, enhanced by Asset Management and the Investment Bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.

Media contact: Karin Aquilino, Tel. +41-44 234 86 10, karin.aquilino@ubs.com

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Big data will have far-reaching repercussions for german companies, especially small- and medium-sized enterprises (SMEs). 97 per cent of SMEs polled have recognised this and believe that big data is relevant. Yet in the latest study by Commerzbank, only 8 per cent of the 2,000 surveyed companies (with sales of 2.5 million euros upwards) stated that they systematically record and analyse data to benefit their companies.

The results of the 18th survey; “Raw Material of the 21st century: Big Data, Smart Data – Lost Data?” which was presented on 17 April 2018 in Frankfurt, provides several reasons for the cautious stance on big data. Companies are hindered above all by data protection problems (30 per cent), a shortage of specialist personnel (40 per cent) and a lack of readiness on the part of senior managers (31 per cent). “One of the key results from our study is that is not that many Mittelstand companies have failed to identify the significance of big data, but that they are not yet ready to for gigantic potential of big data. This is largely due to internal structures and processes, and also as a consequence of their management culture. A wake-up call is necessary if Germany’s small- and medium-sized enterprises do not want to be left behind their international peers,” said Michael Reuther, the member of the board of managing directors of Commerzbank responsible for the Corporate Clients segment, on the latest study.

Cautious use of key technologies and big data in industry, the service sector and retail business

An analysis of the sectors shows the attitude of companies to digital trends and big data, for example a mere 32 per cent of industrial companies use new technologies for individual manufacturing and only 23 per cent use? network machinery. In the service sector, only 8 per cent of companies are planning to replace human workers with digital and autonomous processes. Artificial intelligence is one of the key-words here, yet it has made few inroads into the day-to-day working world. While in a sector comparison retail business creates a larger number of individual offerings with big data, a majority of 60 per cent, do not yet generate any data which delivers knowledge of individual customers together with their consumption and purchase decisions.

“Customer Journey” is currently a specialist topic

Only 12 per cent of the surveyed entrepreneurs and first-level managers currently conduct extensive data analysis on customers, users and markets. This limits the findings of the ‘customer journey’ (i.e. a comprehensive data basis on customer and market conduct). Despite the major significance attributed to digital data, the recording of all company- and customer-relevant data is not yet standard practice. At present data covering finance, warehouse stocks and key sales areas are recorded.

Analytical view of tech giants

The public perception of “tech giants” such as Facebook, Alibaba and Google also impacts on decision-makers in SMEs, 68 per cent of the surveyed companies view the monopoly of tech giants with concern, while one in five companies fears them as competitors. A positive finding is that for 34 per cent of companies, tech giants provide them with an opportunity to reconsider their processes. “It is not just the major companies which successfully work with big data which function as important role models. Innovative SMEs can serve as an example to other companies, providing inspiration and encouragement. In the Mittelstand we need a technology-friendly and courageous attitude to keep pace with the rapid digital developments of big data worldwide”. said Dr. Holger Bingmann, President of the German Wholesale and Foreign Trade Federation (BGA) and the patron for the latest Commerzbank study. He also added: “The second important factor is know-how. Just like the well-known large technology companies we need data analysts who can turn this data gold into entrepreneurial success. In this respect we do not have sufficient experts or the corresponding training courses and university courses in Germany”.

Major damage and threats from viruses and hackers – sabotage, if anything, is only a side issue

17 per cent of those surveyed have already experienced damage to their own IT through viruses and Trojans. 8 per cent report hacker attacks, 6 per cent have been damaged by digital fraudsters, and a similar percentage has been a victim of computer espionage. The greatest concern is posed by hacker attacks, stated 78 per cent of the respondents. Above all the so-called ‘smart data users’ have taken precautionary measure in the form of extensive security concepts. Companies which have already been affected by cybercrime are more likely to have hired security specialists and to have contingency plans in the event of an emergency.

Mittelstand sees banks as playing a supporting role

In the opinion of 56 per cent of companies polled, banks should assist in the treatment and timely provision of financial data. “We already offer convenient solutions, for example a digital treasury management system for liquidity management as well as mobile apps for banking in the Mittelstand to help our clients with their financial decision-making. However, in the future it will also be a question of, how the bank can support and assist clients in the use of their own data. In this respect the issue of security is, of course, of major importance. It will not, however, deter us in the development of disruptive business flows and models,” said Corporate Client board member Reuther explaining the role of Commerzbank.

The “Entrepreneur Perspectives” initiative and its studies

Since 2006 the Mittelstand initiative “Entrepreneur Perspectives” has formed a public forum for entrepreneurial topics. Once a year it surveys 2,000 company owners and first-level executives from companies of every size and from every sector. The representative surveys are conducted by Kantar TNS. The study results are discussed by representatives from the business world and industry federations, and by politicians and academics at public events.

Further information under www.unternehmerperspektiven.de.

*** Press contact Maximilian Bicker: 0172 6108149 Bernd Reh: 0170 9143734

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximatel.

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Of particular note are the following additional items on the agenda:

Resolution on the use of distributable profits (item 2)

The Board of Managing Directors and the Supervisory Board of Commerzbank propose that the distributable profits of approximately €88.1 million for the financial year 2017 as reported in the annual financial statements pursuant to the German Commercial Code (HGB) be allocated in full to the revenue reserves. The purpose of this is to facilitate the implementation of the “Commerzbank 4.0” strategy and to strengthen the Bank’s equity capital.

New election of members of the Supervisory Board (item 6)

The term in office of all members of the Supervisory Board representing the shareholders ends at the conclusion of the Annual General Meeting on 8 May 2018, and consequently a new election by the general shareholders’ meeting is required. The term of the newly elected Supervisory Board members will again be five years and will end with the Annual General Meeting which will decide on the ratification of actions for the fiscal year 2022.

The Supervisory Board proposes to the Annual General Meeting that the following persons be elected to the Supervisory Board as shareholder representatives: Sabine U. Dietrich (former member of the Board of Managing Directors of BP Europe SE), Dr. Tobias Guldimann (independent consultant in the financial sector), Dr. Rainer Hillebrand (member of the Board of Managing Directors of the Otto Group, Vice Chairman of the Board of Managing Directors), Dr. Markus Kerber (State Secretary at the Federal Ministry of the Interior, Building and Community with effect from 1 April 2018), Anja Mikus (Chief Executive Officer/Chief Investment Officer of the public endowment “Fonds zur Finanzierung der kerntechnischen Entsorgung” (Nuclear Waste Disposal Fund)), Dr. Victoria Ossadnik (Chief Executive Director of the Board of Managing Directors, E.ON Energie Deutschland GmbH with effect from 1 April 2018), Dr. Stefan Schmittmann (former member of the Board of Managing Directors of Commerzbank AG), Robin J. Stalker (former member of the Board of Managing Directors of adidas AG), Nicholas Teller (Chairman of the Advisory Board of E. R. Capital Holding GmbH & Cie. KG) and Dr. Gertrude Tumpel-Gugerell (former member of the Executive Board of the European Central Bank).

If the Annual General Meeting accepts these proposals, there will be four new shareholder representatives on the Supervisory Board, namely Dr. Rainer Hillebrand, Dr. Victoria Ossadnik, Dr. Stefan Schmittmann and Robin J. Stalker. Karl-Heinz Flöther, Dr. Stefan Lippe, Klaus-Peter Müller and Dr. Helmut Perlet will leave the Supervisory Board at the conclusion of this year’s Annual General Meeting. If elected, Dr. Schmittmann will be proposed to the members of the Supervisory Board as its Chairman.

Shareholders who have registered by the end of 1 May 2018 are entitled to participate in the Annual General Meeting and to exercise voting rights. The speeches of the Chairman of the Supervisory Board and the Chairman of the Board of Managing Directors at the Annual General Meeting may be viewed live on the internet on 8 May 2018 from 10.00 a.m. onwards at www.commerzbank.de/hv. Both speeches will be given in German only. The hashtag on Twitter for the Annual General Meeting is #CobaHV.

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Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

*** 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 the 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 by 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.

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In its Annual Report published today, Commerzbank reports on its figures for the past financial year. The main key figures in the consolidated income statement are unchanged compared to the provisional figures communicated on 8 February 2018. The Commerzbank Group’s operating profit for 2017 stood at €1,303 million. Commerzbank achieved a positive consolidated profit attributable to Commerzbank shareholders of €156 million despite booking restructuring expenses of €808 million.

“At Group level, operating business developed soundly overall in 2017, despite the ongoing restructuring. Income before loan loss provisions fell to € 9.2 billion. However, when adjusted for positive one-off income and remeasurement effects, the income before loan loss provisions rose slightly from the previous year to €8.6 billion. Operating expenses were reduced slightly to €7.1 billion in 2017. Operating profit was down slightly from the previous year at €1.3 billion. The positive trend in our capital position continued in the year under review. The Common Equity Tier 1 ratio stood at 14.1% at the end of December, compared with 12.3% in the previous year. As a result, the Bank’s capital position is comfortable and we clearly exceed all the applicable regulatory requirements. Our loan loss provisions remain low thanks to the stable economic situation in Germany and the quality of our loan book, as reflected in an excellent non-performing loan ratio of just 1.3%”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank.

Zielke added: “We are targeting a dividend distribution for the 2018 financial year. Meanwhile, we will continue the restructuring of Commerzbank in 2018 and take further key steps as we evolve to become a digital enterprise, all the while striving to achieve higher growth in our core business areas and enhance profitability. These are our objectives, and we will pursue them diligently”.

In the Private and Small-Business Customers segment, Commerzbank attracted over 500,000 new customers and more than €38 billion in assets during the reporting year. New retail mortgage financing business amounted to €15 billion, topping the nearly €12 billion in new business in the previous year. The Bank is now operating the consumer lending business on the in-house Commerzbank platform. At the same time, in Private and Small-Business Customers the Bank made a conscious decision to invest in the digital and personal services it offers to customers. The branches will continue to play a crucial role in the growth strategy. The Polish mBank again performed very well and gained around 292,000 net new customers in 2017.

The business performance of the Corporate Clients segment last year was largely determined by two factors: externally, by ever rising competition, and internally by the implementation of the Commerzbank 4.0 strategy. The focus here was on bringing together product units and concentrating on the core business, as well as continuously implementing growth initiatives and digitalising processes and products. Against the backdrop of these challenges, the segment comfortably beat its cumulative target of 3,500 net new customers by the end of 2017. This demonstrates that the strategic adjustments are going down well with the corporate customers.

The individual financial statement of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) states a net income of €176 million for 2017 (2016: €1,494 million). This takes into consideration the servicing of all profit-sharing rights in Commerzbank AG. The Bank intends to fully retain earnings for 2017. Detailed information about the monetary remuneration of the board members can be found in the remuneration report (pages 27 to 39). The number of employees of the Commerzbank Group as of the end of December 2017 was 49,417 (end of December 2016: 49,941). In autumn, the Supervisory Board extended the appointment of Martin Zielke as Chairman of the Board of Managing Directors until November 2023.

For the first time, the Annual Report also includes a non-financial report pursuant to the German Act on Strengthening Corporate Non-Financial Reporting (CSR-Richtlinie-Umsetzungsgesetz) (pages 44 to 52). In it, Commerzbank reports on the six areas: environmental protection, treatment of employees, social responsibility, respect for human rights, anti-corruption and anti-bribery, and treatment of customers.

Outlook

In financial year 2018, Commerzbank will focus on continuing to implement the Commerzbank 4.0 strategy. Commerzbank expects, that slightly lower income with slightly lower operating expenses and a significant fall in the risk result will give an operating profit almost on the level of the previous year and a slightly worse cost/income ratio. Excluding the effect from one-off income last year, operating income this year will rise slightly, resulting in a slight improvement in the cost/income ratio; on this adjusted basis there is a significant improvement in operating profit. As no more significant restructuring expenses are likely to be needed, the Bank expects a strong rise in the consolidated surplus in the current year. In view of Commerzbank’s comfortable equity capital position and the intention to further improve the risk profile, Commerzbank is aiming to pay a dividend for financial year 2018.

The 2017 Annual Report is to be found on the internet at www.commerzbank.com/annual-report2017.

*** Press contact Nils Happich +49 69 136-80529 Karsten Swoboda +49 69 136-22339 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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In 2017, Commerzbank achieved a positive net result despite booking restructuring expenses of more than €800 million, further raised its capital ratio and significantly reduced its legacy portfolios. The Bank progressed with the implementation of its Commerzbank 4.0 strategy, continued on its growth path and achieved most of its strategic objectives for 2017. Although the operating profit of €1,303 million for 2017 was lower than in the previous year (2016: €1,399 million), it increased versus 2016 if exceptional items and valuation effects are excluded. At €557 million these were considerably lower than the previous year (2016: €831 million). The same applies to revenues before loan loss provisions which decreased by 2.5% to €9,163 million (2016: €9,399 million). After adjustment for exceptional items, revenues before loan loss provisions were higher at €8,607 million (2016: €8,568 million). Growth in customers and assets almost completely offset the drag from negative interest rates and of lower margins from pricing competition.

Loan loss provisions stood at €781 million in 2017 (2016: €900 million). Both of Commerzbank’s operating segments profited from the stability of the German economy, while the run-down segment Asset & Capital Recovery (ACR) benefited from the accelerated reduction of the Ship Finance portfolio. Corporate Clients booked loan loss provisions for a large individual exposure in the fourth quarter. The Bank’s healthy risk profile is reflected in the further reduced, very low non-performing loan (NPL) ratio of 1.3%. Operating expenses were down slightly at €7,079 million (2016: €7,100 million). Cost management compensated for higher investments in digitalisation and growth, and increased costs for regulatory projects, compliance, deposit guarantee schemes and various banking levies. In particular, personnel expenses decreased as a result of the personnel reductions.

Taking into account the restructuring expenses of €808 million, the pre-tax profit for financial year 2017 came to €495 million (2016: €643 million). In the previous year, the pre-tax profit had been adversely affected by an impairment on goodwill and other intangible assets of €627 million and restructuring charges of €128 million. After deducting taxes of €245 million and minority interests of €94 million, Commerzbank made a net profit of €156 million (2016: €279 million).

In the fourth quarter 2017 the Bank was able to increase its adjusted revenues both on a quarter-on-quarter and year-on-year basis. The net profit was down year-on-year at €90 million (Q4 2016: €182 million). Due to lower exceptional revenue items, the operating profit fell to €159 million (Q4 2016: €337 million), and revenues before loan loss provisions to €2,193 million (Q4 2016: €2,399 million). After adjustment for exceptional items, Q4 2017 revenues were up on a year-on-year basis at €2,253 million (Q4 2016: €2,111 million). Loan loss provisions stood at €251 million in the fourth quarter (Q4 2016: €290 million). They were booked primarily for an individual exposure in the Corporate Clients portfolio and for the Ship Finance portfolio. Operating expenses at €1,782 million remained almost stable year-on-year (Q4 2016: €1,773 million).

“We see the structural change in the German banking sector as an opportunity and intend to be among the winners of this change. That’s why we are radically transforming the Bank. So far we made good progress in 2017: we have advanced the digitalisation of the Bank and have grown strongly. Therefore we aim to resume dividend payments for financial year 2018”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “However, it is also clear that we still have some work ahead of us before we can achieve the profitability we are aiming for”.

Common Equity Tier 1 ratio up at 14.1% – healthy risk profile

The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 climbed to 14.1% at the end of December 2017 (end of September 2017: 13.5%; end of December 2016: 12.3%). CET1 capital with full application of Basel 3 remained stable quarter-on-quarter, at €24.0 billion. Risk-weighted assets (RWA) with full application of Basel 3 came down significantly amounting to €171.0 billion at the end of 2017, versus €176.6 billion at the end of September 2017 and €189.8 billion at the end of 2016. The leverage ratio increased to comfortable 5.1% at the end of 2017 (end of September 2017: 4.7%). Total assets came to €452 billion (end of September 2017: €490 billion).

“In 2017 we invested in growth, digitalisation and regulation, while keeping our costs stable. Our CET 1 ratio stood at 14.1 percent in the fourth quarter”, commented Stephan Engels, Chief Financial Officer of Commerzbank. “The revaluation of our ship finance portfolio under IFRS 9 will minimise future burdens and has resulted in a CET 1 ratio of around 13.3 percent at the beginning of 2018. This gives us room for further investments in growth and for driving the digitalisation of the Bank forward”.

Individual financial statement of Commerzbank AG

The provisional individual financial statement of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) states a net income of €176 million for 2017 (2016: €1,494 million). This takes into consideration the servicing of all profit-sharing rights in Commerzbank AG. The Bank intends to fully retain earnings for 2017.

Development of the segments

The Private and Small Business Customers segment continued its growth and is ahead of target in terms of customers and assets under control in Germany. It gained around 639,000 net new customers since October 2016, including around 100,000 stemming from the takeover of Onvista by Comdirect. Around 502,000 of the net new customers were won in financial year 2017, of which around 52,000 joined Commerzbank in the fourth quarter of 2017.

Assets under control increased by €38 billion in 2017 to €376 billion. The volume of new mortgages reached €15.0 billion (2016: €11.9 billion). Consumer loans contributed revenues of €68 million in the first full quarter on Commerzbank’s own balance sheet.

The operating profit for 2017, at €867 million, was down on the previous year (2016: €1,078 million). Revenues before loan loss provisions remained stable year-on-year at €4,832 million (2016: €4,818 million). This was also the case for adjusted revenues before loan loss provisions, which came to €4,622 million in 2017 (2016: €4,628 million). Loan loss provisions rose by €35 million to €154 million in 2017 (2016: €119 million). Operating expenses went up over the same period to €3,811 million (2016: €3,621 million), largely as a result of higher investments in digitalisation and regulatory charges.

In 2017 mBank saw its revenues before loan loss provisions grow by 4.8% to €998 million (2016: €952 million). New business volume in consumer loans increased by more than 15% over the same period. mBank has attracted around 292,000 net new customers since the beginning of 2017. At the end of 2017 mBank had a total of approximately 5.4 million retail and corporate customers in Poland, the Czech Republic, and Slovakia. In 2017 mBank’s loan loss provisions rose year-on-year. Operating expenses increased due to higher regulatory burdens.

In the fourth quarter of 2017 the operating profit for the Private and Small Business Customers segment totalled €149 million (Q4 2016: €232 million). Revenues before loan loss provisions amounted to €1,190 million (Q4 2016: €1,174 million).

The Corporate Clients segment progressed well in its strategic realignment, improved its RWA efficiency, reduced costs and achieved strong customer growth. Mittelstand profited from its strong market position with German corporate customers. In the last two years Commerzbank added almost 5,400 new corporate customers – predominantly in the German Mittelstand – thereof 4,100 in 2017. Also loan volumes in Mittelstand and International Corporates increased slightly that year.

In 2017 the segment posted an operating profit of €809 million (2016: €1,289 million). Revenues before loan loss provisions decreased to €3,959 million in 2017 (2016: €4,232 million), impacted by low market volatility and pricing competition. The revenues of Financial Institutions reflect the streamlined correspondent banking network.

In 2017 the segment’s loan loss provisions rose by €110 million to €295 million (2016: €185 million). The increase is mainly due to one individual exposure. The segment reduced its operating expenses to €2,885 million (2016: €2,973 million) while pursuing strategic investments, thanks to strict cost management, and in particular due to the reduction in personnel expenses.

In the fourth quarter of 2017, the operating profit for the Corporate Clients segment totalled €66 million (Q4 2016: €363 million). The noticeable reduction compared to the very strong fourth quarter of 2016 was primarily due to the €202 million increase in loan loss provisions. Also the streamlining of Financial Institutions and pricing competition in the SME segment contributed to this decline. However, revenues were stable quarter-on-quarter. Underlying Q4 2017 revenues before loan loss provisions amounted to €979 million (Q4 2016: €1,086 million).

The Asset & Capital Recovery (ACR) segment reduced its Ship Finance portfolio significantly by a total of €2.2 billion, to €2.6 billion in 2017. Revenues before loan loss provisions fell to €166 million in 2017 (2016: €213 million). Loan loss provisions were reduced over the same period to €336 million (2016: €599 million). The operating loss improved to minus €269 million (2016: minus €515 million). Fourth quarter operating loss was at minus €54 million (Q4 2016: minus €156 million).

Outlook

In 2018 the Bank will focus on further growth and the implementation of its Commerzbank 4.0 strategy. Higher adjusted revenues are expected for both the Private and Small Business Customers and the Corporate Clients segments. Despite ongoing investments in digitalisation and IT, the Bank will manage its costs at around €7.0 billion. The risk result under IFRS 9 is expected to be below €600 million. The Bank aims to resume dividend payments for financial year 2018.

2017 figures published in this press release are preliminary and unaudited.

*** From approximately 7 am onwards you can find broadcast-ready video material with statements by Martin Zielke and Stephan Engels at http://mediathek.commerzbank.de/.

The press conference will be broadcast live on the internet https://www.commerzbank.de/en/hauptnavigation/presse/bilanzpressekonferenz/bpk.html.

*** Press contact Nils Happich +49 69 136-80529 Karsten Swoboda +49 69 136-22339 Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2017, it generated gross revenues of €9.2 billion with approximately 49,300 employees.

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At a recent event held in Shanghai, Commerzbank met with clients and industry specialists to discuss the most fundamental changes that the automobile industry has seen for decades. The autos industry is seeing paradigm shifts; from hardware and a combustion engine to the increased use of software and electrification.

The automotive industry remains an attractive growth sector: China vehicle sales will continue to rise and Europe continues to recover strongly with a growth of 3.0% for 2018E and a CAGR of above 2% till 2024E*. European automotive stocks have also outperformed the market over the past five years by 40%* despite exhibiting higher volatility. This has added to the attractiveness of the auto sector with Chinese investors, particularly suppliers, who continue to buy assets mainly in Europe.

Commerzbank clients are able to benefit from its comprehensive sector-based strategic and financial advisory services. Speaking at the event, Cedric Perlewitz, Head of Automotive & Transport Finance said: “Investments made by Chinese companies have almost tripled over the last three years. We’ve seen that automotive suppliers are the main target group for cross-border investment activities within the sector”.

Perlewitz added: “Chinese companies are emerging as the new leading M&A players. Looking to Europe, there’s a need to use the highly attractive European debt market and low interest rates which are currently available. We are seeing a strong demand for industrial names, particularly German corporates, and as auto megatrends develop further investments will be needed”.

Commerzbank has an integrated set-up of a capital markets business and corporate banking; with a presence in China’s onshore financial centres as well as the region’s offshore hubs.

Nick Johnston, Regional Board Member, Asia commented: “China’s rejuvenation is no longer a dream, in this thriving market Chinese investors are looking to invest in both Asia and Europe, with Commerzbank’s strong distribution capability and comprehensive sectoral expertise it means Commerzbank is well placed to help Chinese clients with opportunities in the European markets”.

Commerzbank has been accompanying and financing global trade since 1870 and has been present in Asia for more than 50 years, with the first representative office in Beijing opening over 30 years ago. The bank settles approximately 30% of Germany’s foreign trade business.

*** * Source: FactSet as of 16 Nov. 2017 *Source: LMC Automotive status (global light vehicle sales) as of Q3 2017; Note: (1) Asia-Pacific region without Middle East according to LMC definition.

Press Contact Claire Tappenden +44 (0)20 7475 5151

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees

*** 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, particularly to reduce its ACR portfolio, 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.

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Western economies look back on a year of strong growth. A broad recovery can even be observed in the Eurozone, which has been in crisis mode for a long time. In addition, the USA and Germany are close to full employment. Nevertheless, monetary policy of most central banks is still expansive. “How fast central banks bow out of their loose monetary policy is dependent on how inflation develops in the coming year,” explained Commerzbank’s chief economist, Jörg Krämer, on Friday in Frankfurt. This in turn influences the stock and bond markets as well as the US dollar.

For the USA, Commerzbank economists expect hardly any economic surprises in 2018. The economy should continue to grow by 2.3% and the core inflation rate should rise towards 2.0% by the end of next year. This is why Krämer forecasts that the Fed will again hike their rates three times next year. Even though the Fed has presented the prospect of three rate hikes for 2018, the markets are only pricing in half of it. “The markets mistrust the Fed – and seem to be making the same mistake as they did this year,” warns Krämer. Hence the Commerzbank analysts forecast a slightly stronger Dollar (EUR-USD end 2018: 1.12).

The inflation will play an important role next year in Germany as well – particularly during the upcoming wage negotiations. “The labour unions will demand a higher compensation for inflation in the upcoming bargaining round,” expects Krämer. “We are anticipating a three in front of the comma in many of the new agreements”. The labour unions will also point out the positive economic situation in Germany. Commerzbank economists raised their GDP forecast for the coming year from 2.0% to 2.5%. “The upswing in Germany has what it takes to keep surprising,” says Krämer.

Currently, the Eurozone is growing across the board and Commerzbank economists expect a growth of 2.5% in 2018, being more optimistic than most of their peers. Core inflation should remain around 1% due to the rather high unemployment rate. Despite the reduction of the bond purchases, this will serve the ECB as an argument to stick to its generally loose monetary policy for the foreseeable future. “The ECB has chained itself to the inflation forecasts,” Krämer criticises and urges for a policy change. Commerzbank analysts expect the ECB to continue their bond buying program until the end of the first quarter of 2019. “And so a first rate hike recedes even further into the distance,” Krämer says.

This expansive monetary policy in turn fuels the stock markets. In fact, the DAX would not have much room to further rise, Krämer points out. The business climate is on an all-time high, Chinas growth dampens and the price-earnings ratio in Europe is no longer low. “Without the ECB’s loose monetary policy I wouldn’t predict another good year for the DAX,” Krämer says. In the light of the ongoing policy, however, he predicts a year-end rate of 14,000 points. Thereby the low inflation also exerts influence on the stock markets. “Inflation will become the decisive factor in 2018,” Krämer summarises.

Commerzbank Research Prognoses Growth in gross domestic product in real terms in % compared to previous year

***

Press contact Stefan Gringel +49 69 136-51435 stefan.gringel@commerzbank.com

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

***

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Commerzbank AG and HSBC Transaction Services GmbH have agreed to enter into a strategic partnership for securities settlement. Under this partnership, Commerzbank’s securities settlement business processes will be transferred. For this purpose, a joint venture shall be set up in which Commerzbank shall have a 20 per cent minority stake. The partnership will be in place for an initial period of 10 years.

The new company is due to begin operations in early 2020. By then, both partners will have put in place the technical framework for the data migration. The investments and expected medium-term savings are fully accounted for in the “Commerzbank 4.0” strategy. In 2018, the partners will embark on an intensive testing phase designed to ensure a smooth transition of the securities settlement operations. The partners agreed not to disclose any further details of the agreement.

“Our ‘Commerzbank 4.0’ strategy is aimed at digitalising the Bank, while also simplifying processes and cutting costs. The strategic partnership with HSBC for securities settlement ties in with both these aims: in the future, we will be using HSBC’s state-of-the-art securities platform and achieving clear cost benefits”, said Frank Annuscheit, Chief Operating Officer and a member of the Board of Managing Directors of Commerzbank.

*** Press contact Nils Happich +49 69 136-80529 Erik Nebel +49 69 136-44986 Karsten Swoboda +49 69 136-22339

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

***

Disclaimer

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Commerzbank continued to pursue its growth strategy in the third quarter, further increased its capital ratio, and made further progress in reducing the run-down portfolios. The business performance of client facing segments was stable quarter-on-quarter. In the Private and Small Business Customers segment, Commerzbank has gained around 450,000 net new customers and increased assets under control by €28 billion in Germany since the start of the year. By pursuing its growth agenda, the Bank is laying the foundations for future profitability. The Common Equity Tier 1 ratio stood at 13.5% at the end of September up from 11.8% a year earlier. In the Asset & Capital Recovery (ACR) segment, the shipping portfolio saw a substantial reduction of €1.5 billion in the first nine months of 2017, taking it to €3.3 billion at the end of the third quarter.

The Bank also continued with the implementation of its “Commerzbank 4.0” strategy in the third quarter as planned. The termination of the Commerz Finanz GmbH joint venture and the transfer of the consumer loan portfolio of around €3.5 billion onto the Bank’s books and systems were fully completed in the third quarter. The transfer of this portfolio now offers an opportunity for Commerzbank to expand the business on its own platform. Its target is to increase this portfolio to over €10 billion by 2020. Investments in digitalisation and its implementation in the Digital Campus are running to plan.

“We have made good progress in laying foundations for our transformation this year. In the interest of sustainable long-term profitability, we are focussing on growth. We have grown both in terms of clients and assets, having successfully reallocated RWAs and capital to our core businesses and strongly invested into our digitalisation and IT. We have now successfully transferred the consumer loan business onto our books and are now able to further grow this business”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank.

The Bank saw its operating profit increase by 7.7% year-on-year in the first nine months to €1,144 million (first nine months of 2016: €1,062 million). Previously announced non-recurring revenue items and valuation effects, which sum up to €618 million after nine months, contributed to this increase (first nine months of 2016: €543 million). The operating profit for the third quarter 2017 came in at €629 million (Q3 2016: €429 million). The exceptional revenue items which arose mainly from real estate sales, the sale of Concardis, and the termination of the consumer loan joint venture with BNP Paribas, amounted to €502 million in the third quarter, and therefore had more of an impact than the non-recurring items in the same quarter of last year (Q3 2016: €231 million). Revenues before loan loss provisions were also stable in the first nine months, at €6,971 million (first nine months of 2016: €7,000 million). In the third quarter they rose by 3.0% to €2,511 million (Q3 2016: €2,437 million). Excluding non-recurring items, revenues before loan loss provisions were down year-on-year in the first nine months, at €6,353 million (first nine months of 2016: €6,457 million). This shows that the Bank’s growth in customer numbers and assets helped mitigating the negative interest rate environment and lower margins. In the third quarter, the Bank’s underlying revenues came to €2,009 million (Q3 2016: €2,206 million).

Net loan loss provisions, at €530 million, were lower year-on-year in the first nine months of 2017 (first nine months of 2016: €610 million). The figure for the third quarter was €168 million (Q3 2016: €275 million). Therefore, the Bank recorded a non-performing loan (NPL) ratio of just 1.5%, which is still low compared to its European peers, reflecting its healthy risk profile. Operating expenses were down slightly for the first nine months at €5,297 million (first nine months of 2016: €5,328 million). Personnel expenses decreased due to the personnel reductions, whereas expenses attributable to the various bank levies increased by €42 million. Operating expenses for the third quarter stood at €1,714 million (Q3 2016: €1,733 million).

Taking into account the restructuring expenses of €807 million booked in the second quarter in connection with the “Commerzbank 4.0” strategy, the pre-tax profit for the first nine months of 2017 came to €337 million (first nine months of 2016: €338 million). The pre-tax profit had been adversely affected in the first nine months of 2016 by an impairment on goodwill and other intangible assets of €627 million and restructuring charges of €97 million. So after deduction of taxes of €204 million and minority interests of €67 million, Commerzbank posted a positive net profit of €66 million for the first nine months of 2017 (first nine months of 2016: €96 million). The net result for the third quarter stood at €472 million (Q3 2016: minus €288 million). Earnings per share came in at €0.05 in the first nine months of 2017 (first nine months of 2016: €0.08).

The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 rose to 13.5% at the end of September 2017, versus 13.0% at the end of June 2017. This increase was attributable firstly to the larger CET 1 capital base: the Bank’s CET 1 capital with full application of Basel 3 rose by around €0.7 billion due mainly to the improved net profit. Secondly, Risk-Weighted Assets (RWA) were also lower again. RWAs associated with planned growth in the Bank’s core business and operational risks were higher, while there were lower RWAs for market risks and due to the portfolio run-down in Ship Finance. RWA with full application of Basel 3 stood at €176.6 billion at the end of September 2017, compared with €178.5 billion at the end of June 2017 and €194.6 billion at the end of September 2016. The leverage ratio came out at 4.7% at the end of the third quarter of 2017. Total assets came to €490 billion (end of June 2017: €487 billion).

“We have increased our Common Equity Tier 1 ratio significantly to 13.5 percent. Taking into account the IFRS 9 effect, we are aiming for a CET 1 ratio of at least 12.5 percent as of 1 January 2018. Besides growth, cost management remains a top priority. Active management has enabled us to keep our costs stable despite the investments in digitalisation and IT”, said Stephan Engels, Chief Financial Officer of Commerzbank. “We are continuing to make good progress with the run-down of our ACR shipping portfolio. We are on track to achieve our target for the year of around €3 billion. With IFRS 9 due to be implemented by the turn of the year, we are currently considering revaluating our Ship Finance portfolio to run it down even faster than previously planned”.

Performance of the segments

The Private and Small Business Customers segment continued with its growth strategy and is ahead of target in terms of growth in customer numbers and assets under control in Germany. Commerzbank has gained approximately 587,000 net new customers since October 2016. Around 450,000 of these were acquired in the first nine months of 2017, including around 100,000 as a result of the takeover of Onvista by Comdirect. Assets under control rose by €28 billion over the same period to €366 billion. The volume of new mortgage lending business reached €11.3 billion in the first nine months of 2017 (first nine months of 2016: €9.2 billion).

The operating profit for the segment for the first nine months of 2017 was down year-on-year at €717 million (first nine months of 2016: €845 million). The decrease is attributable primarily to an increase in operating expenses. In the third quarter an operating profit of €381 million was generated – also supported by non-recurring items (Q3 2016: €273 million). Revenues before loan loss provisions remained stable year-on-year in the first nine months of 2017 at €3,642 million (first nine months of 2016: €3,643 million). The revenue figure for the third quarter was €1,363 million (Q3 2016: €1,216 million). This included non-recurring items totalling €238 million, mainly from the previously announced sale of the Concardis holdings and the valuation in connection with the termination of the consumer loan joint venture with BNP Paribas. Excluding non-recurring items, revenues before loan loss provisions came to €1,125 million, so were stable relative to the previous quarter (Q2 2017: €1,110 million).

Loan loss provisions for the segment rose by 23.8% in the first nine months of 2017 to €130 million (first nine months of 2016: €105 million). €55 million of this was booked in the third quarter (Q3 2016: €40 million). Operating expenses increased to €2,795 million in the first nine months (first nine months of 2016: €2,693 million). The €24 million increase in compulsory contributions in Poland was a key factor in this. Of the operating expenses, €927 million was incurred in the third quarter (Q3 2016: €903 million).

mBank revenues before loan loss provisions increased in the first nine months of 2017 to €738 million (first nine months of 2016: €721 million). Thereof, €254 million were generated in the third quarter (Q3 2016: €228 million). The volume of new consumer loan business went up by more than 15% year-on-year in the first nine months. mBank has attracted around 208,000 net new customers since the beginning of the year. In the third quarter of 2017, mBank retrospectively adjusted its customer numbers for authorised users of a microfirm current account. At the end of September 2017, mBank had approximately 5.3 million retail and business customers in Poland, the Czech Republic and Slovakia.

Corporate Clients had to deal with weak markets and the challenges from the negative interest rate environment. In the first nine months of 2017 it reported an operative result of €742 million (first nine months of 2016: €927 million). The third quarter accounted for €241 million of this (Q3 2016: €327 million). Adjusted revenues before loan loss provisions slipped to €2,981 million in the first nine months of 2017 (first nine months of 2016: €3,147 million). In the third quarter, they were slightly higher than in the previous quarter, at €961 million (Q2 2017: €952 million).

Mittelstand saw muted loan demand, but was able to partially compensate for it with a good performance with capital market products. International Corporates grew its lending business slightly compared to the first nine months of the previous year. However, demand for structured capital market products declined over the same period. The strategic realignment and repositioning of Financial Institutions is on track. Revenues have now stabilised. Equity Markets & Commodities benefited in the first nine months from solid customer activity due to favourable equity markets.

Loan loss provisions for the Corporate Clients segment were reduced in the first nine months of 2017 to €123 million (first nine months of 2016: €215 million). The segment saw its operating expenses for the same period reduced to €2,148 million (first nine months of 2016: €2,219 million). It managed to cut its costs despite strategic investments and higher expenditure on the implementation of regulatory and compliance requirements.

In the Asset & Capital Recovery (ACR) segment, the Ship Finance and Commercial Real Estate Finance portfolios were reduced by about €2.3 billion in the first nine months of 2017. The shipping portfolio, having been run down by €1.5 billion or more than 30% in the first nine months, now stands at around €3.3 billion. The segment’s operating result improved in the first nine months of 2017 to minus €215 million (first nine months of 2016: minus €359 million). The figure for the third quarter was minus €100 million (Q3 2016: minus €108 million). Revenues before loan loss provisions increased to €141 million in the first nine months (first nine months of 2016: €30 million). Loan loss provisions were reduced over the same period to €277 million (first nine months of 2016: €292 million). Nearly all of these provisions were for Ship Finance. Operating expenses were down in the first nine months of 2017 at €79 million (first nine months of 2016: €97 million).

Outlook

The Bank will continue to strengthen its market position and focus on the implementation of the “Commerzbank 4.0” strategy. The Bank is aiming for a Common Equity Tier 1 ratio of at least 12.5%, including the effect of the introduction of IFRS 9, from 1 January 2018. The cost base is expected to be below €7.1 billion for 2017. Loan loss provisions are likely to amount to around €800 million, with the ACR segment accounting for around €400 million of this. The Bank is still expecting a slightly positive net result for the year as a whole.

*** From approximately 7 am onwards you can find broadcast-ready video material with statements by Stephan Engels at http://mediathek.commerzbank.de/.

*** Press contact Nils Happich +49 69 136-80529 Karsten Swoboda +49 69 136-22339 Maurice Farrouh +49 69 136-21947 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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A report from Commerzbank shows the end of the sideways movement. In the current year, the German mechanical engineering sector has seen a noticeable surge, this comes after production in the sector was, on average, stagnating in 2016. The expected growth of 2 per cent in production for 2017 is likely to be surpassed quite easily. Forecasts show that production is set to increase by more than 2 per cent in 2018. This is due to the robust economic development both in Germany and worldwide, as well as a rise in investment activity in plant and equipment by companies. The average EBIT margin for the sector will remain more or less constant at 5.1 per cent for 2017 as well as 2018, with total sales in the sector improving by a good 3 per cent in 2018. Against the background of increasing industrialisation, demand for products from German engineering firms will also be seen from China and other developing countries in the future. “The business climate in the German mechanical engineering sector is more stable than it has been for the past five years. Despite more intensive competition, current capacity utilisation is higher than 85 per cent,” says Dr. Alexander Mann, Sector Head Industrials at Commerzbank.

The majority of German engineering firms are providers of technically complex and highly specialised system solutions. These are usually non-publicly-listed companies (“hidden champions”) and – thanks to their focus on niches, technological benefits and innovative strengths – are very often global market leaders in their segments. Moreover, the sector is innovative; current spending on innovation amounts to approximately €15.5 billion. The implementation of Industry 4.0 solutions is regarded as the core task in many companies at present as this will ultimately also lead to an improvement in revenues. The development of after-sales services will also allow companies to expand their business models.

Competition in the segment formed by less sophisticated machinery (the so-called mid-tech segment) is constantly increasing, in particular in eastern Asia. “Nevertheless it can be quite lucrative for German producers to expand their commitment in the mid-tech segment. They will have to lower production costs anduse the superior know-how that many of their competitors in the low-tech sector do not have yet,” says Dr. Alexander Mann. “Making market-entry into the mid-tech sector more difficult for new competitors and helping to defend their market share”.

In addition to the machine construction sector the vehicle construction, metal production and building industries are important markets for the sector. According to VDMA, the bulk of exports in 2016, approximately 47 per cent, went to member states of the European Union. The largest single consumer in the eurozone to date has been France, with just less than 7 per cent, followed by the United Kingdom and Italy, with nearly 5 per cent, and Austria and the Netherlands, each with 4 per cent. More than 10 per cent of exports go to the USA, followed by China with a little over 9 per cent.

As a heavily export-oriented branch of industry, the German mechanical engineering sector is heavily dependent on the global economy, forecasts for 2017 indicate a more moderate growth of 3.4 per cent.. In 2017 the export share of mechanical engineering amounts to more than 60 per cent of sales by German firms. Production at locations outside of Germany is increasingly making an additional contribution to the significance of foreign trading by German mechanical engineering firms. “International locations are key to the growth strategy being adopted by the engineering and plant construction sector,” emphasises Dr. Ralph Wiechers, a member of the management of VDMA Frankfurt and its senior economist. “The number of personnel in mechanical engineering firms abroad with German participation is already around 400,000”.

Alongside the general uncertainty surrounding the global economy, which is has an impact on the engineering sector, there are also the effects of an upsurge in protectionist tendencies, the uncertain development of the Brexit negotiations, and the numerous political flashpoints such as Syria, North Korea and the east Ukraine. However, while the consequences of Brexit could become noticeable for the sector, a greater effect may be felt from protectionist measures from the new US government.

The mechanical engineering sector is Germany’s most important branch of industry, by the number of employees. Approximately 1.03 million people are employed in more than 6,000 companies, of which nearly two thirds employ fewer than 100 staff – meaning the sector is largely dominated by SMEs. A mere 6 per cent of the companies have 500 or more employees. These large-scale firms generate more than 50 per cent of sales in the sector, which in 2016 amounted to approximately €228 billion, up 1.8 per cent on the previous year. With a share of 10 per cent, Germany is the world’s third-largest market for mechanical engineering products, after China (38 per cent) and the USA (14 per cent). On the global market German mechanical engineering firms play an important role in virtually every area of the sector, occupying leading positions in 14 sub-sectors – such as drive systems and materials handling equipment, machine tools and agricultural engineering the companies.

Press contact Commerzbank Bernd Reh +49 69 136 46971

Press contact VDMA Holger Paul +49 69 6603 1922

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The Commerzbank Sector report Retail Trade in Germany 2017 is available in its abridged version under this link: Commerzbank Sektorbericht Einzelhandel – Kurzversion

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its indepth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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Commerzbank will celebrate the 50th anniversary of its operations in the United States on Wednesday, 11 October 2017. From humble beginnings as a one person representative office in 1967, Commerzbank New York evolved to become the very first branch of a German bank to operate in the U.S. in 1971. Though primarily established as a lending institution, the mission and vision for the branch was to build and maintain relationships between Germany and the U.S. Today, Commerzbank New York continues that mission, offering a complete range of corporate and capital markets products and services, advisory and brokering partnerships.

“As experts in cross-border transactions, particularly in corporate finance, FX management and trade finance, we are able to facilitate business for our clients worldwide. We support both U.S. Corporates who are interested in the European markets, first and foremost our home market Germany, and also German companies looking to expand into the U.S. We aim to serve these clients at both ends,” said Roland Boehm, Divisional Board Member, Corporates International.

One of the pioneers of the New York branch was Klaus-Peter Mueller, who is now the Chairman of the Supervisory Board. He commented: “The 50th anniversary of our New York branch exemplifies Commerzbank’s international business model and illustrates the strong historic ties of the economies of the United States and Germany. We have always understood that our role is to facilitate this important transatlantic economic and financial relationship”. Klaus-Peter Mueller held the position of Joint General Manager of the New York branch from 1982 to 1986, and was also Assistant Representative of the former New York Representative Office from 1968 to 1971.

The Bank has gained a reputation as a strong leader in the U.S. financial community as host of the award winning German Investment Seminar (GIS), the largest investment conference for German corporates in the U.S. Held over the course of three days, German companies meet with North American equity investors, providing insights on their strategies and current business activities. The GIS provides a unique platform for leading German corporates to come together with prominent U.S. asset managers, enabling them to enhance their shareholder dialogue.

In one of the world´s largest financial centres, Commerzbank New York provides clients with direct access to the global markets. In addition to supporting medium-sized and large U.S. Corporates and U.S. subsidiaries of German clients, the Bank also offers wholesale banking for institutional clients and banks. Our Corporate Clients business includes Corporate Finance and Advisory, DCM Loans and Bonds, Corporate Equity and Distribution, as well as Trade Finance and Cash Management. Corporate clients benefit from extensive sector expertise and a deep penetration of key industry sectors: Automotive & Transport, Industrials, Consumer & Retail, Healthcare & Chemicals, Infrastructure & Energy and Telecom/Media/Technology - and it is this knowledge which sets Commerzbank apart from the competition. For risk management, Commerzbank New York also has a fully functional broker-dealer platform (Commerz Markets LLC).

Operating across the United States and Canada, the Commerzbank New York branch now employs over 350 professionals at its Liberty Street offices in downtown Manhattan. Beyond their typical job responsibilities, for these employees Corporate and Social Responsibility is an important facet of the Commerzbank New York identity. Driven by staff volunteers, their main focus at the moment is supporting local children in crisis, whether through disease, poverty or neglect. Chosen charities for 2017 include the New York Society for Prevention of Cruelty to Children (founded in 1875 and the oldest child protection agency in the world) and G.O.A.L.S. (Girls Organization of Athletics, Leaders in Sports).

From its very first commercial trade in 1968, to its most recent multi-billion dollar investment grade corporate bond underwriting, at Commerzbank New York the list of strategic key accounts is steadily rising. John Geremia, Regional Board Member and General Manager of the Commerzbank branch in New York said: “With our client-centric business model, I believe we are on a solid growth trajectory. This is supported strongly by Commerzbank’s digitalisation initiatives which will help to make customer advisory more efficient”. Geremia adds, “Commerzbank New York is emerging as a model for sustainable growth in a compliant and efficient manner”.

***

Press contact Maximilian Bicker: + 49 69 136-22440 Monika Arens: + 49 69 136-29673

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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Downturn in customer frequency and shift in customer requirements necessitate a strategy change

In the coming years the German retail trade, which accounts for approximately one sixth of gross domestic product, will be confronted with a number of major developments within the sector and society as a whole. Above all the shift in customer requirements, digitalisation, rapid growth in delivery services, and a downturn in customer frequency in the stationary retail trade pose major challenges for the sector and its 3.32 million employees. “The predatory competition and consolidation which has been taking place since the beginning of the new millennium will increasingly lead to the development of oligo-political structures in the industry,” forecasts Andreas Resch, Sector Head Consumer & Retail at Commerzbank in Frankfurt.

The boundaries between the different types of company will gradually become blurred. Discounters will adapt, increasingly becoming more like supermarkets, and vice versa. New shopping trends, such as experience shopping, more consulting-intensive shopping offerings and the rise of ethical consumers are leading not only to a re-design of retail outlets and service structures, but also to totally new ranges. The demographic change is also spurring on this development. “The population of Germany is shrinking, becoming older and more diverse. So there are also new consumption requirements,” says Resch, quoting from the latest sector report from Commerzbank on the retail trade.

Fundamental transformation with new delivery systems

Probably the most fundamental change is already in the starting blocks: the launch of new delivery services. However, this still requires viable business models. In the future, there will be an increase in drones, robots, electric delivery vehicles which are particularly suited to inner-city locations, and bicycles delivering goods to the customer’s doorstep. “Retail trade in Germany has the potential to transform itself in part from a stationary to an ambulatory trading system. However, in which form this trend will ultimately assert itself remains to be seen,” comments Resch.

Digitalisation and omnichannel concepts offer new sales opportunities

This transformation of the retail trade, which posted sales of €508 billion in 2015, is being driven by the megatrend of digitalisation. In Germany the total volume of online trading already amounts to €44 billion. Many companies of all sizes firmly rooted in the stationary trade are endeavouring to break into online trading. “All the efforts are geared to the bundling and concentration of all online and offline sales channels in the form of omnichannel concepts. This development will be accompanied by the digitalisation of retail outlets and corporate structures. For example, intelligent shelves, which fix prices in a dynamic manner using computer systems, logistics systems which automatically place new orders for products and fill shelves, the analysis of customer data, and the use of such data to recommend personalised products, all create additional potential. However, at present these are often still a long way off in the retail trade,” adds Resch.

Innovative strength remains vital to survival

Slight growth expected for 2017 with sales up 1.8 per cent in nominal terms

Growth of 1.8 per cent in nominal terms is expected for sales in 2017. But the increasing competitive intensity and a decline in frequency in the stationary trade are risks that cannot be ignored. “The necessary amendment and adjustment of business models in part requires significant investment in know-how, IT infrastructure and personnel. It also requires the modernisation of sales outlets to provide a personal and beneficial shopping experience.In part there is considerable need for investment and this will have to be shouldered by the retail trade in the coming years. However, the largest challenge for retail traders is to reach the right strategic decisions with regard to megatrends. This encompasses an extensive and at times radical adjustment of business models. In the long term, those companies which recognise change as an opportunity will have a better outlook for success,” is the conclusion reached by the retail expert.

The report is based on analyses and assessments of the industry by the following units of Commerzbank AG:

Segment: Corporate Clients Unit: Research Department: Economic Research

Segment: Corporate Clients Unit: Advisory & Primary Markets Department: Sector Team Consumer & Retail

Segment: Group Risk Management Unit: Credit Risk Corporates Department: Sector Team Retail

*** Press Contact Jutta Wellmann +49 172 2953136

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its indepth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, whichwas founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

*** 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, particularly to reduce its ACR portfolio, 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.

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4 October, 2017 – Bank of Montreal (BMO), CaixaBank, Commerzbank and Erste Group have joined an initiative launched by UBS and IBM in 2016 to build a new global trade platform based on blockchain technology. This new platform, called Batavia, is built to be openly accessed by organisations of all sizes anywhere in the world, and can support trade finance for transactions across all modes of trade, whether goods are being transported by air, land or sea.

Batavia advances the work initiated by UBS and IBM to develop a trade finance platform built on the IBM Blockchain Platform powered by the Hyperledger Fabric Blockchain framework. The development work is being done collaboratively by the five banks and IBM in consultation with transportation industry experts as well as the banks’ customers to ensure that the platform is flexible and intuitive for customers and can be commercialized. Batavia is targeting pilot transactions with customers on the network in early 2018 to test and refine the platform.

Designed to support more efficient, transparent and cost effective transactions, the new global trade financing platform will help organizations more easily build multi-party, cross-border trading networks worldwide. Batavia will allow transacting parties to view the progress of a shipment as it leaves the warehouse, is loaded onto a plane, truck or boat and arrives at the receiving port, automatically releasing payments incrementally along each step of the process.

The platform will help connect participants in a trading network, delivering the potential to transform global trade. The open nature of the platform, which encourages broad participation by many banks, vendors and regulators, will also help open new trade corridors, bring new players into the market and expedite processes that before were prohibitively time-consuming and expensive.

Traditionally, trading partners, including buyers, sellers, their banks, transporters, inspectors and regulators have relied on large volumes of paper based documentation to securely conduct trade transactions. This process can take up to weeks, incurring costs, making data vulnerable to errors due to repeated manual reprocessing and tying up capital. Delays and lack of transparency in trade can make it difficult for companies to access financing, limiting their ability to trade across borders and grow revenues. The Batavia platform will eliminate the necessity to handle and compare documents, allowing buyers, sellers and their banks to execute transactions with a high degree of efficiency and transparency.

Blockchain enables greater transparency by digitising agreements entered into a permanent, immutable ledger that all involved parties in a trade transaction can view. The status of a contract until its fulfilment is updated automatically through IoT sensor data or user input. Batavia will save users time and reduce costs by ensuring the integrity of data as it changes hands, reducing third-party verification processes and minimising the potential for errors, tampering or disputes. When all participants in a transaction can access a shared version of the truth, they can interact with greater trust, building larger and more distributed networks, and in turn, growing revenue.

** Bank of Montreal “BMO takes great pride in being a leader in trade and supply chain finance innovation. Our objective is to deliver simple and efficient solutions founded on technology that delivers cost, efficiency and risk benefits to our clients and the bank,” said Jeffrey Shell, Managing Director and Head of Global Trade & Banking at BMO. “We are very excited to participate in this initiative and sense the development of real, positive outcomes for our clients in North America and around the world. As a partner in Batavia we are strengthening our ability to remain highly relevant to our clients as the financial services industry continues to evolve”.

CaixaBank Jordi Fontanals, CaixaBank Chief Operating Officer, said: “At CaixaBank we operate a fully customer-centric innovation model, using technology and creating original products to support individuals and businesses alike. Harnessing blockchain technology offers enormous potential for driving digitization, but more importantly it paves the way for international projects in collaboration with multiple partners, with these being created and designed to serve our customers. Batavia is a prime example of this, allowing us to bolster the foreign trade services that CaixaBank provides to its clients with commercial operations around the world”.

Commerzbank Bernd Laber, Group Executive Trade Finance & Cash Management, Commerzbank AG said: “Commerzbank processes around 30% of German foreign trade and a significant share of European foreign trade activities. As a strong partner for international trade finance, we assist our clients with premium solutions as well as in mitigating risks. With this collaboration and the envisaged platform, we strive to be at the forefront of exploring modern technology in the digital transformation of international trade finance processes”.

Erste Group “Erste Group is committed to implementing innovations that provide our clients with greater transparency, efficiency and utility in the pursuit of their business and financial interests. By transforming the processes in international trade financing, the Batavia platform promises to boost foreign trade, thus also strengthening a key prosperity-promoting pillar of the economies in our region, Central and Eastern Europe,” said Patrick Götz, Head of Corporate Flow Products at Vienna-based Erste Group Bank AG.

IBM “In working with hundreds of clients to implement blockchain solutions, financing global trade has emerged as one of the use cases most in need of innovating,” said Fabio Keller, IBM project lead. “Targeting the creation of large, global, multi-modal networks that bring transparency and trust to each step of the trade process is what makes Batavia a platform with so much potential to transform the way companies around the world do business with one another”.

UBS "Today, the process of securing and financing trade is highly cumbersome for corporates," said Beat Bannwart, Head Strategic Innovation & Market Development, Corporate & Institutional Clients at UBS. "Through working closely with our clients, we aim to innovate their user experience through a simple, digital and automated way of arranging, securing and financing their international trade transactions by leveraging new technology and creating an open ecosystem."

** About BMO Financial Group Established in 1817, and currently marking its 200th year of operations, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of $709 billion as of July 31, 2017, and more than 45,000 employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.

Media contact: Mallory Micetich (New York) (212)-885-4158, Mallory.micetich@bmo.com

About CaixaBank CaixaBank is leader in retail banking in Spain, with a 25.7% share among individual customers who make it their main bank. The bank, headed by chairman Jordi Gual, and led by CEO, Gonzalo Gortázar, has around 16 million customers in Spain and Portugal, with 5,468 branches, the largest commercial network in the Iberian peninsula. CaixaBank has been named "Best Bank in Spain 2017" by the UK magazine Euromoney for the fourth consecutive year. This year, Euromoney named CaixaBank, the "Best Private Bank in Spain" for the third time in a row and New York magazine Global Finance also recognised the entity as the "Best Bank in Spain 2017".

Media contact: CaixaBank Corporate Communications and External Relations Department, Tel.: +34 93 404 2414, prensa@caixabank.com

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its indepth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, whichwas founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

Media contact: Tim Seifert, Tel.: +49 69 136 81771, tim.seifert@commerzbank.com

About Erste Group Erste Group is the leading financial services provider in the eastern part of the EU and the preferred partner of corporates in the region. Around 47,000 Erste Group employees serve over 16 million customers in 2,600 branches in seven countries: Austria, the Czech Republic, Slovakia, Romania, Hungary, Croatia, and Serbia. As per H1 2017, Erste Group had EUR 218.2 billion in total assets, a net profit of EUR 624.7 million, and a tier-1 capital ratio of 13.2% (CET-1, Basel III, phased in).

Media contact: Peter Klopf, Tel. +43 5 0100 11676, peter.klopf@erstegroup.com

About IBM

IBM is the leader in open-source blockchain solutions built for the enterprise. As an early member of Hyperledger, an open source collaborative effort created to advance cross-industry blockchain technologies, IBM is dedicated to supporting the development of openly-governed blockchains. IBM has worked with more than 400 clients across financial services, supply chains, IoT, risk management, digital rights management and healthcare to implement blockchain applications. For more information about IBM Blockchain, visit www.ibm.com/blockchain.

Media contact: Holli Haswell, Tel. +1-512-680-0593, hhaswell@us.ibm.com

About UBS UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. The operational structure of the Group is comprised of our Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. UBS's strategy builds on the strengths of all of its businesses and focuses its efforts on areas in which it excels, while seeking to capitalize on the compelling growth prospects in the businesses and regions in which it operates, in order to generate attractive and sustainable returns for its shareholders. All of its businesses are capital-efficient and benefit from a strong competitive position in their targeted markets.

Media contact: Huw Williams, +44-207-568 99 80, huw.williams@ubs.com

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Commerzbank, KfW Banking Group and MEAG, the asset manager of Munich Re and ERGO, have jointly traded a Euro Commercial Paper (ECP) issued by KfW, and simultaneously replicated the transaction in a Blockchain. Blockchain or distributed ledger technologies build a decentralised data structure and found the basis for intelligent electronic contracts, so called “Smart Contracts”, which focus on the automated processing of business transactions. The security was sold to MEAG, and settled without a paying agent or a clearing system. This pilot transaction comprised a €100,000 issuance volume with a five-day term.

In parallel to issuance and settlement, key transaction elements were replicated and simulated by means of distributed ledger technology, using the R3 Corda platform. For this purpose, the standard number of required intermediaries was reduced, this allowed for an immediate posting. In parallel a real-time replication of the transaction was done using distributed ledger technology. Normally, securities settlement and related payments require two days, due to the restrictions imposed by clearing systems which necessitate deferred timing.

Since 2015, Commerzbank has been involved in an initiative launched by technology firm R3. This initiative explores applications for distributed ledger technologies in the financial services industry. Commerzbank had also, in cooperation with other banks and R3, developed an initial prototype of the Corda based platform. This pilot transaction, using a money market instrument, was realised via an extension of this application, which provides additional functionality. For instance, individual transaction steps can be made transparent through a real-time visualisation, which also provides a basis for a regulatory reporting.

Given their short terms and simple structures, money-market instruments qualify to issuance and trading using distributed ledger technology. With this pilot transaction, the institutions involved have now simultaneously simulated key elements of a real transaction with several counterparties via a Blockchain. Looking to the future, the option of immediate securities settlement may offer significant benefits. Firstly, a more streamlined transaction processes and a reduced number of intermediaries can offer efficiency gains. Secondly, a same day value date can reduce settlement risk, thus providing relief in terms of capital. As money-market instruments are usually traded in high volumes, a marked reduction in capital and liquidity costs can be expected. However, to fully realise these efficiency gains it will require further technical, regulatory and legal adjustments.

The development of the market readiness of the new platform will be gradually progressed over the coming years. A particular focus is on embedding distributed ledger technology in the regulatory framework, as well as adjustments with regards to the securities law. At the same time, this will involve further development of existing regulatory reporting interfaces.

"The pilot transaction has demonstrated that the issuing as well as the trading of securities can be simulated in real time via Blockchain technology. Transforming securities transactions into digital issues may open up significant potential for efficiency gains", said Roman Schmidt, Commerzbank's Divisional Board member for Corporate Finance.

Dr Frank Wellhöfer, Managing Director for Investment Controlling, Back Office and IT at MEAG, said: "This project has allowed us to analyse from an investor's perspective the impact of blockchain technology on front and back-office processes, and regulatory aspects. The future belongs to digital business processes. The potential efficiency gains and cost benefits are already highly attractive when looking at existing processes; the opportunities offered by the further development of our processes promise additional revenues for our clients."

"Advancing digitalisation will have a significant impact on the manner in which financial markets transactions will be traded and settled in the future. As a major player on the international money and capital markets, KfW believes that Blockchain technology holds significant potential. With this pilot transaction, we have been able to gather initial positive experience in practice. Looking forward, we anticipate benefits in terms of settlement speeds, transparency, and high security standards", said Dr Frank Czichowski, Treasurer of KfW.

*** Media contacts Tim.Seifert@commerzbank.com +49 69 136-81771 jwild@meag.com +49 89 2489-2072 Sybille.Bauernfeind@kfw.de +49 69 7431-2038

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its indepth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, whichwas founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

About MEAG MEAG stands for best practice asset management for Munich Re and ERGO. MEAG has representations in Europe, Asia and North America and also offers its extensive know-how to institutional investors and private clients from outside the Group. MEAG currently manages assets to the value of around € 252 billion.

About KfW Group KfW is one of the world’s leading promotional banks. With its decades of experience, KfW is committed to improving economic, social and ecological living conditions across the globe on behalf of the Federal Republic of Germany and the federal states. To do this, it provided funds totalling EUR 81.0 billion in 2016 alone; and of this, 44 % went into measures for protecting the environment and combating climate change. KfW does not have any branches and does not hold customer deposits. It refinances its promotional business almost entirely through the international capital markets. In 2016 KfW raised EUR 72.8 billion for this purpose. In Germany, the KfW Group is represented in Frankfurt, Berlin, Bonn and Cologne. Its network includes 80 offices and representations around the world.

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, particularly to reduce its ACR portfolio, 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.

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Together with clients and employees from the branch office in Prague, Commerzbank will celebrate the 25th anniversary of its presence in Czechia on 8 September 2017. In 1991, after the lifting of the Iron Curtain, Commerzbank became one of the first German banks to accompany Germany’s small- and medium-sized enterprises (SMEs) in their business dealings in and from within the then Czechoslovakia, through a local representative office. The Bank opened its first branch in Prague in 1992 and with 23 employees. It has now developed into an internationally-oriented corporate client bank with three additional sites in Brno, Ostrava and Pilsen, as well as some 200 employees and 1300 client relationships. “Alongside Poland, Czechia is one of our core markets in Central and Eastern Europe. As the only local German corporate client bank we are benefitting in Czechia from our global network and our foreign trade expertise,” said Roland Boehm, divisional board member Corporates International at Commerzbank.

Germany is the number one export country for the Czech economy, with around one third of Czech exports going to Germany, the bulk mainly for the automotive industry. As a consequence of these close business relationships, Commerzbank is an important pillar for the export-oriented Czech and German SME sectors. The branches in Czechia are an integral component in the international corporate client business of Commerzbank, which have been successful on a sustainable basis. In the past five years revenues from the region have increased by an average of fewer than 10 per cent each year. The main source of revenues is from Commerzbank’s trade finance business, followed by the credit and foreign exchange segments. The credit volume in Czechia currently amounts to approx. 900 million euros.

Roland Boehm added: “As the market leader in the German SME sector and in foreign trade financing we have to be where our clients are. We have been financing and accompanying German-Czech trade flows for 25 years now and are a reliable partner for Czech companies in their international activities”.

The Prague site gained further in significance with the opening of IT service units for Frankfurt and London in 2004. Commerz Systems was founded in 2015. With the opening of the Finance-Service Hub in 2016 Prague also assumed finance activities for other European sites. The Trade Service Hub (TSH) was also founded in the same year; this processes the complex documentary business for parts of Central and Eastern Europe.

Michael Krueger, managing director of the Commerzbank branch in Prague commented: “Commerzbank has been a fixed element in the Czech economy and society for many years now. We are very grateful for this and would like to further develop and consolidate German-Czech relations”.

In the course of its 25-year presence Commerzbank in Czechia has firmly integrated itself into the country’s business world and society. Czech companies increasingly rank among its clients and some 80 per cent of the employees are Czech. Together with Commerzbank’s Polish subsidiary mBank, the Commerzbank Group ranks among the top 10 employers in Czechia. Commerzbank has also been committed to the cultural sector for 23 years, supporting the traditional autumn concerts. In association with the music faculty of the Academy of Musical Arts in Prague, Commerzbank awards a sponsorship prize of 300,000 Czech koruna (approx. 11,500 euros) to support young Czech artists each year. For its anniversary celebrations Commerzbank Prague has been able to book Martin Kasik, the internationally renowned Czech pianist and a former student at the music academy.

In addition to the branches in Czechia, Commerzbank also has offices in Bratislava and Budapest in Eastern Europe. The Polish Commerzbank subsidiary mBank is domiciled in Warsaw.

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Press contact

Monika Arens: + 49 69 136-29673

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About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

Diesel emissions debate accelerates strategy change

The number of people interested in buying a diesel car keeps falling: in June of this year, only just under 40 per cent of newly-registered vehicles were fitted with a diesel engine – down almost 20 per cent year-on-year. This slump might well reflect consumer uncertainty, caused by the 'Dieselgate' affair as well as by fears of diesel cars being banned from inner cities. "Consumers' new 'diesel angst' has far-reaching consequences for the automotive industry: the key fleet business is facing upheaval", explains Cedric Perlewitz, Sector Head Automotive, at Commerzbank in Frankfurt. "This calls upon manufacturers to significantly accelerate their strategic change, focusing on electromobility", Perlewitz adds. Falling demand for diesel-fuelled vehicles puts pressure on resale values, thus driving up the cost of leasing diesel cars.

Automotive groups are facing tightened legal requirements for carbon dioxide emissions, together with new thresholds for particulates and nitrogen oxides – driving up research and development costs for manufacturers, whilst sales of diesel vehicles are declining. Yet the future of diesel engines is only one of many issues manufacturers and suppliers currently have to deal with. "The automobile industry is undergoing the most fundamental change it has seen for decades. On top of diesel engines, manufacturers need to contend with four key mega trends: electromobility, connected and autonomous driving, as well as mobility services", Perlewitz maps out the survey results of Commerzbank's current sector report on automotive suppliers. "At the same time, the current debate holds a great opportunity for the automotive industry: to accelerate the impending transformation process and strategic change. Thanks to their leading market position and strong balance sheets, German manufacturers and suppliers can actively contribute to shaping the industry's change", Perlewitz says.

Electromobility: blessing and curse

An ever-growing number of Germans can see themselves choosing an electric vehicle next time they are looking to buy a passenger car. However, this still requires marked improvements in terms of prices, charging times, and range. Perlewitz explains: "Customers' expectations regarding the infrastructure are considerable – but political pressure on manufacturers is greater still. Hence, whilst the prospects for a growing market are a blessing for electric vehicles, the curse for the industry lies in the costs incurred for research and development, and in the time pressure." Whilst German car manufacturers had originally devised their strategies for a mass market in electric vehicles to occur towards the end of the next decade, a growing number of experts now envisage this at a much earlier stage. This is why the industry is now looking somewhat wistfully towards Asia, where most of the manufacturing expertise for car battery cells is concentrated. Nevertheless, joint efforts by automotive groups and politicians in order to establish battery-powered vehicles on the mass market are gaining speed. For these efforts to succeed, marked improvements in the price/performance ratio will be necessary. Hybrid passenger cars will provide an interim solution over the medium term. To comply with even tighter carbon dioxide emissions limits, suppliers and manufacturers will need to further optimise combustion engines, gearboxes, tyres, and aerodynamics.

Connected and autonomous driving push up investments

Both connected and autonomous driving are key items for research and technological innovation. At 58 per cent, German suppliers and manufacturers hold the highest share in patents for autonomous driving worldwide; they already operate self-driving test vehicles. Before these come to the market, however, significant legal hurdles will need to be overcome. "I only expect fully autonomous driving post-2025", Perlewitz states. Even though established automotive suppliers have built a strong market position in driver assistance systems, leveraging many years of experience in this field, technology developments are now occurring very rapidly indeed. "Especially in 'car-to-X' communications – the electronic data interchange between the vehicle and the infrastructure – competitors from outside the industry represent a serious threat, which might leave established automotive suppliers behind", sector head Perlewitz underlines. 80 per cent of new cars registered in Germany are already connected. Security and driver assistance, as well as information and communications systems are increasingly being used, including in the compact cars segment. Commerzbank expert Perlewitz outlines the situation: "Digitalisation and networking trigger fundamental change in the automotive sector. Car manufacturers and suppliers must evolve from traditional production towards the provision of mobility services." This requires significant investment into their own software expertise and/or new digital business lines, both organically and through acquisitions. "The need for digitalisation will trigger more company takeovers – both within the automotive sector and across other sectors", Perlewitz adds.

At the same time, interesting start-ups are drawing attention. At this year's edition of Commerzbank's Automotive Colloquium, three start-up businesses presented their solutions to the future issues of electromobility, networked driving, and mobility services. Specifically, Ubitricity has developed a solution to convert simple street lights into charging points: using 'intelligent' charging cables, this can allow electric vehicles to be charged everywhere, at low cost. Start-up German Autolabs will shortly launch its first 'digital passenger', which will leverage artificial intelligence in order to control driver communications depending on the situation at hand. Conversely, door2door – yet another start-up – is pushing the concept of shared mobility, linking users' smartphones with a fleet of minibuses serving as on-demand shuttles, with ride requests pooled intelligently.

Innovative power becomes vital

"Automotive manufacturers and suppliers have increasingly evolved into digital technology groups. The future will see wholly new business models, which we are only scarcely aware of right now", Perlewitz believes. Current challenges will accelerate the pace of change in the automotive industry even further. In this context, the automobile universe is increasingly being penetrated by Big Data players as well as numerous start-ups. For the first time in the industry's 130+-year history, vehicle manufacturers and their suppliers are no longer a closed society. This means that innovative strength has turned into one of the most important competitive factors.

"With 2017 revenues of €78.9 billion, we forecast automotive suppliers in Germany to post yet another record year", Perlewitz states, adding: "Given high investment costs and increased competition, we anticipate subdued profits from 2018 onwards."

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The report is based on analyses and assessments of the sector, provided by the following Commerzbank AG units:

Segment: Corporate Clients Division: Research Department: Economic Research

Segment: Corporate Clients Division: Advisory & Primary Markets Department: Sector Team Automotive & Transportation

Segment: Group Risk Management Division: Credit Risk Corporates Department: Sector Team Automotive

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Media contact Maximilian Bicker – telephone +49 69 136-22440

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About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its indepth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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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, particularly to reduce its ACR portfolio, 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.

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Commerzbank is well on track with the implementation of its “Commerzbank 4.0” strategy and has further improved its Common Equity Tier 1 ratio. The Bank has already booked the whole of the announced restruc-turing charges in the second quarter and agreed a framework social plan and framework reconciliation of interests with the employee representative committees. At mid-year, the Bank has already gained a net 500,000 new customers in its Private and Small Business Customers segment in Germany. In the Asset & Capital Recovery (ACR) segment, the shipping portfolio was reduced by a significant €0.9 billion in the first half and now stands at €3.9 billion. The target is to reduce it to around €3 billion by the end of the year.

The operating profit in the first half of this transitional year was down year-on-year, also due to slower markets in the second quarter, at €515 million (H1 2016: €633 million). The operating profit for the second quarter came in at €183 million (Q2 2016: €351 million). Revenues before loan loss provisions remained stable in the first half, at €4,460 million (H1 2016: €4,563 million). Revenues excluding non-recurring items rose year-on-year by €93 million to €4,344 million (H1 2016: €4,251 million). Revenues for the second quarter amounted to €2,068 million (Q2 2016: €2,240 million).

Loan loss provisions stood at €362 million for the first half (H1 2016: €335 million). The figure for the second quarter was €167 million (Q2 2016: €187 million). The Bank’s non-performing loan (NPL) ratio of just 1.5%, which remains low compared to its European peers, reflects its healthy risk profile. Operating expenses, which amounted to €3,583 million in the first half, were down on the first half of 2016 (€3,595 million). Operating expenses for the second quarter stood at €1,718 million (Q2 2016: €1,702 million).

The Bank generated a pre-tax result of minus €292 million in the first half of 2017 (H1 2016: €593 million). This includes restructuring charges of €807 million. It had originally expected to book restructuring charges of around €1,100 million, split between 2017 and 2018. The lower figure is due to the personnel reductions already implemented, staff turnover, and expected efficiencies in staff transfers and replacements.

Including tax expenses of €69 million and after deduction of minority interests of €45 million, Commerzbank posted a net result of minus €406 million (H1 2016: €384 million). The net result for the second quarter was minus €637 million (Q2 2016: €215 million).

“We have booked the provisions for the personnel reductions early and in full and have made further progress in the implementation of our strategy. We are ahead of target for client growth, partly because we have invested. However, it will take a while for this client growth to be reflected in revenue growth. In our two transformational years 2017 and 2018, we are thereby laying the foundations for a sustainably higher profitability”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank.

The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 rose to 13.0%, versus 12.5% at the end of March 2017. The increase is largely attributable to the decrease in risk-weighted assets (RWA). This fall, on a Basel 3 fully-loaded basis, was due partly to active portfolio management in credit risk and favourable effects resulting from currency movements. RWA stood at €178.5 billion at the end of June 2017, compared with €186.2 billion at the end of March 2017 and €198.3 billion at the end of June 2016. The leverage ratio stood at 4.6%. Total assets came to €487 billion (end of March 2017: €490 billion).

“Our Common Equity Tier 1 ratio has gone up to 13.0% in spite of restructuring charges and we expect a slightly positive net result for the financial year. Despite increased investments in digitalisation we were able to reduce our costs year-on-year”, commented Stephan Engels, Chief Financial Officer of Commerzbank.

The digital transformation of Commerzbank is on track. The Digital Campus, the hub of the Bank’s digitalisation activities, is fully staffed and 8 Journeys are being processed. The second quarter saw the launch of Commerzbank’s new mortgage app and the Comdirect digital asset management service. Besides this, the Bank established its new Big Data & Advanced Analytics division which will employ some 100 data specialists.

Development of the segments

The Private and Small Business Customers segment is ahead of target in terms of growth in customer numbers and assets under control in Germany. The number of net new customers since October 2016 stands at around 522,000. 385,000 of these joined the Bank in the first half of 2017, including around 100,000 from the acquisition of Onvista by Comdirect. Assets under control rose by €19 billion in the first half to €357 billion. The volume of new mortgage lending business amounted to nearly €8 billion in the first half (H1 2016: €6.1 billion).

The operating profit, at €336 million, was down on the same period of the previous year (H1 2016: €572 million). Factors that played a part here include a positive non-recurring effect of €123 million in the second quarter of 2016 from the sale of Visa Europe shares and higher investments in growth initiatives. These investments are usually amortised within approximately 18 months. The operating profit for the second quarter stood at €142 million (Q2 2016: €295 million). Revenues before loan loss provisions were down slightly year-on-year in the first half, at €2,279 million (H1 2016: €2,427 million). The fall was due in large part to investments in initiatives to promote customer growth, which were funded from current revenues. The revenue figure for the second quarter was €1,111 million (Q2 2016: €1,232 million).

Loan loss provisions increased in the first half to €75 million (H1 2016: €65 million), €42 million of which was booked in the second quarter (Q2 2016: €42 million). Operating expenses increased in the first half to €1,868 million (H1 2016: €1,790 million). In the second quarter, operating expenses amounted to €927 million (Q2 2016: €895 million). The first-half increase is attributable to the introduction of the European bank levy in Poland (€28 million) and investments in future growth.

mBank recorded revenues before loan loss provisions of €484 million in the first half of 2017 (H1 2016: €493 million). Of this, €243 million was generated in the second quarter (Q2 2016: €273 million). The volume of new consumer loan business increased by more than 20% in the first half. mBank also gained roughly 200,000 net new customers in the first half, 100,000 of them in the second quarter. This means it now has approximately 5.6 million retail and business customers in Poland, the Czech Republic, and Slovakia.

In the Corporate Clients segment, the strategic realignment is under way. The operating profit for the first half stood at €502 million (H1 2016: €600 million); in a weak market environment the operating profit for the second quarter stood at solid €235 million (Q1 2017: €267 million). Revenues before loan loss provisions were down year-on-year in the first half, at €2,043 million (H1 2016: €2,240 million). Of this, €943 million were generated in the second quarter (Q2 2016: €1,095 million).

The Mittelstand and International Corporates Group divisions registered solid contribution from Corporate Finance, but saw muted client activity in Fixed Income and Currencies as well as ongoing headwinds from low interest rates. The strategic realignment and new setup of the Financial Institutions business is well on track. The Equity Markets & Commodities Group division benefited from solid client activity and good demand for investment products in the first half.

The segment’s loan loss provisions decreased in the first half of 2017 to €76 million (H1 2016: €128 million), of which €33 million was booked in the second quarter. Despite strategic investments and higher regulatory and compliance expenditure, the segment was able to lower its costs: operating expenses were reduced year-on-year to €1,465 million (H1 2016: €1,512 million).

In the Asset & Capital Recovery (ACR) segment, the ship finance and commercial real estate finance portfolios were reduced by about €1.5 billion in the first half. The shipping portfolio, having been run down by €0.9 billion in the first half, now stands at around €3.9 billion. The segment’s operating result improved in the first half of 2017 to minus €115 million (H1 2016: minus €251 million). Its operating result for the second quarter was minus €82 million (Q2 2016: minus €132 million). Revenues before loan loss provisions increased to €154 million (H1 2016: minus €42 million). The revenue figure for the second quarter was €39 million (Q2 2016: minus €24 million). Loan loss provisions increased in the first half to €211 million (H1 2016: €145 million). In the second quarter, loan loss provisions stood at €92 million (Q2 2016: €75 million). These were booked for ship finance only. Operating expenses were reduced in the first half of 2017 to €58 million (H1 2016: €64 million). The second quarter accounted for €29 million of this (Q2 2016: €33 million).

Outlook

In the financial year 2017, the Bank will further strengthen its market position and will focus on the execution of the “Commerzbank 4.0” strategy. The Bank aims for a CET 1 ratio of around 12.5% including the IFRS 9 impact effective 1 January 2018. The cost base is expected to be below €7.1 billion. Loan loss provisions are expected to amount to around €800 million, with the ACR segment accounting for around €450 million of this. The result of the second half of the year will benefit from positive exceptional revenue items of more than €390 million stemming from sales and revaluations. The Bank is expecting a slightly positive net result for the financial year 2017.

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From approximately 7 am onwards you can find broadcast-ready video material with statements by Stephan Engelsat http://mediathek.commerzbank.de/.

*** Press contact Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 18 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

How can a bank shape the future? This is the key question addressed in the latest edition of Commerzbank’s Corporate Responsibility Magazine. For the Bank itself, this implies reconciling profitable growth with sustainable development.

One important parameter is climate protection in the Bank’s core business: with a loan portfolio of €5 billion, Commerzbank is one of the largest financers of renewable forms of energy in Germany. In August 2016, the Board of Managing Directors adopted a coal guideline stating that the Bank shall have no involvement whatsoever in the financing of new coal-fired power stations and coal mines.

Another topic covered is the need to take responsibility in an increasingly globalised world. Commerzbank, with around a 30 per cent share of foreign trade financing, ranks as one of the top export banks in Germany. Ecological and social criteria are always a factor when deciding whether or not to give a transaction the green light.

Since it plays an active role in society, Commerzbank believes it has a responsibility to help shape the future. Social solidarity is a key part of this. For example, some of the Bank’s employees are involved, on a voluntary basis, in helping young people who have had a difficult start in life to make a successful transition into the world of work.

The magazine also takes a brief look at Commerzbank’s new sustainability programme. The 100 targets it sets will help ensure that sustainability considerations are more firmly embedded in employees’ day-to-day work. Whether it is a matter of focussing on energy efficiency in customer advisory work or using environmentally friendly coffee cups, every gesture helps Commerzbank on its path to greater sustainability. The full programme can be found atsustainability.commerzbank.com/programme.

The Corporate Responsibility Magazine is available online at sustainability.commerzbank.com/magazine. Print copies can also be ordered there.

Sustainability made transparent

Commerzbank’s sustainability report – the GRI report – is based on the globally recognised standards set out in the Global Reporting Initiative (GRI). These ensure that the sustainability of the activities of companies can be compared on an international level. The latest GRI report also serves as a communication on Commerzbank’s progress in relation to the United Nations Global Compact in the financial year 2016. Detailed information is available online at http://www.sustainability.commerzbank.com/gri_reportsustainability.commerzbank.com/gri_report.

*** Press contact Beate Schlosser +49 69 136-22137

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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Commerzbank has agreed an outline reconciliation of interests and outline social plan with the employee representative committees in Germany. The binding agreements form the basis for the personnel reductions announced by the Bank in autumn 2016 as part of the “Commerzbank 4.0” strategy.

Commerzbank and German employee representatives have agreed that operational redundancies will be used only as a last resort in implementing the personnel reductions. The numerous other options included in the set of measures specified in the outline reconciliation of interests must first be exhausted. Both sides agreed on the outline social plan designed to compensate for or lessen the financial disadvantages for the employees affected.

The parties to the negotiations had already agreed, in spring 2017, on an age-related part-time working scheme which would come into effect first. Now the other measures have been set out. These include provisions for older employees such as early retirement and the “56plus” severance scheme, termination agreements with a severance package, and voluntary individual reductions in working hours.

Large-scale staff transfers are planned as part of the restructuring. To soften the impact on the employees affected, the Bank will provide salary safeguards, commuter grants, opportunities to gain qualifications, and assistance with finding new positions.

Details of the personnel reductions in the individual Group divisions in Germany will be worked out, based on the agreements, over the coming months and set out in partial reconciliations of interest. The aim is to complete the negotiations by the end of this year.

Bettina Orlopp, Executive Board Member responsible for Compliance, Human Resources and Legal, said: “The personnel reductions are painful for the Bank and those affected. However, they are necessary in order to make the Bank fit for the future, and are an important step in the implementation of our Commerzbank 4.0 strategy. We want to ensure that the restructuring is handled as socially responsibly as possible. We have laid the foundations for this with the outline reconciliation of interests and the outline social plan”.

Uwe Tschäge, Chairman of the General and Group Works Council, stated: “Our aim is to avoid operational redundancies and to cushion the impact of the personnel reductions, as well as to maintain decent jobs for the remaining employees going forward. We are heading in the right direction with the agreements we have struck, and will build on this in our further negotiations”.

Commerzbank wants to sustainably increase its profitability by the end of 2020. As part of its “Commerzbank 4.0 strategy”, it is systematically focussing on its core businesses and wants to digitalise 80 percent of relevant processes. The reorientation makes significant personnel reductions inevitable. The Bank plans to have a core workforce of around 36,000 full-time positions by 2020, compared with around 43,000 full-time positions at the end of 2015.

As already announced, the Commerzbank will book restructuring expenses of around €810 million in the second quarter of 2017 for the personnel reductions. The Bank had previously forecast restructuring provisions of €550 million for 2017 and 2018 respectively. The lower charge is due to the personnel reductions already implemented, staff turnover and expected efficiencies in staff transfers and replacements.

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Press contact

Alexander Cordes +49 69 136-42764

Karsten Swoboda +49 69 136-22339

Erik Nebel +49 69 136-44986

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About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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Disclaimer

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International trade finance and the underlying commercial and financial transactions are becoming more and more a focus of digitisation initiatives by corporates, banks and research institutions.

Increasing global competition, changing customers demand and shorter product lifecycles have put pressure on optimised and more efficient international supply chains. With digitalisation gaining pace, multiple opportunities for process optimisations from enhanced data management and near real-time data availability, has arisen along the physical supply chains.

Commerzbank and the Fraunhofer-Institute for Material Flow and Logistics (IML) in Dortmund have agreed on a cooperation which aims to develop scenarios for future supply chains. Fraunhofer IML supports the bank with the orchestration of these new processes and provides latest insights into the future of physical supply chains as well as the future deployment of blockchain based technology in this area. Blockchain or distributed ledger technologies build a decentralised database for the so called Internet-of-Things applications (IoT) and Smart Contracts (automated processing of business cases). They constitute the basis for new trade ecosystems, new supply chain finance concepts, faster transaction processing and new solutions in working capital management.

“Our core competence in the trade finance business; cash management financing trade and risk management will continue to be of great relevance for our customers in the digital age. Teaming-up with the Fraunhofer Institute for Material Flow and Logistics grants the best possible insight into the currently extremely heterogeneous digitisation approaches along the logistic- and material flow processes of our customers“, commented Dr. Bernd Laber, group executive Trade Finance & Cash Management Corporate Clients, Commerzbank. “We are working on several projects and in a number of consortiums also with other international banks on the digitisation of bank products and bank services, and on applications for blockchain technologies. As a corporate bank the focus on future supply chains of our customers is of paramount importance and we will develop this in co-operation with Fraunhofer Institute“, Dr. Laber explained.

“Digitisation approaches in supply chain management as for example the development of smart containers which are autonomously able to route themselves, to communicate, to interact with logistic service providers and to initiate payments will offer new business potential for banks in financing, risk management and transaction banking”. explains Prof. Dr. Michael Henke, Director of the Fraunhofer Institute for Material Flow and Logistics (IML).“ I am convinced that technologies like blockchain and smart contracts will become the central enabler for the intelligent interlinking of physical and financial supply chains. With Commerzbank as innovative cooperation partner we will elaborate new, fast and secure solutions for the supply chains of the future”.

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Press contact

Bernd Reh: 0170 914 3734

Tim Seifert: 0171 575 3863

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About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

*** About Fraunhofer IML

Fraunhofer IML is said to be first address for all questions with respect to holistic logistics, the employees work on all fields of internal and external logistics. At the Institute, founded in 1981, there are at the moment 260 employees as well as 250 post-graduates and students, supported by colleagues in workshops, laboratories and service areas. Made-to-measure arranged teams create cross-industry and customer-specific solutions in the area of materials handling, warehouse management, supply chain management, simulation supported business and system planning and also traffic systems, closed loop economy, resources logistics, building logistics and e-business. Not least, the Fraunhofer IML is acting as general coordinator for the multi-institute central theme »Internet of Things« within the entire Fraunhofer-Gesellschaft. If necessary, Fraunhofer IML can draw on 24,000 employees in 67 institutes of Fraunhofer-Gesellschaft. Further locations beside Dortmund are Frankfurt/Main, Hamburg, Prien at lake Chiemsee, Lisbon and Beijing.

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Since pioneering green bonds the EIB, the world’s largest international public bank and the largest issuer of green bonds, has continued to support initiatives to increase investment in climate related projects and strengthen investor confidence in green bonds.

The EIB also confirmed a new partnership with NGO We Forest to reverse deforestation and combat desertification where forests are most threatened. Under the initiative a new tree will be planted by We Forest in Africa, Asia or the Amazon for every signature on the dedicated EIB website and for every Euro donated by global banks supporting green bonds. The initiative would enable both private and institutional support for green bonds to tackle deforestation in vulnerable communities.

Commerzbank supported the EIB’s first issuance of green bonds in the debt capital markets ten years ago and earlier this week Commerzbank acted as a joint-lead manager on a new EUR 1 billion Climate Awareness Bond from the EIB. Yesterday’s transaction had an ultra-long tenor of 30 years, making it the longest outstanding Green Bond issue in the market.

“On the occasion of the 10 year anniversary of the first Climate Awareness Bond, EIB once again set a new Milestone transaction with the longest tenor ever. Even at the ultra-long end of the curve, EIB demonstrated its market leadership and attracted strong investor demand. The EIB is not only the first but also the largest issuer in the Green Bond and we are very proud of our long-standing partnership with EIB in the sustainable bond market and beyond”. said Mirko Gerhold, head of DCM Bonds Solutions at Commerzbank.

“Green bonds play an increasingly important part in accelerating support for climate related investment. Over the last decade the fight against climate change has been strengthened through the contribution of debt capital markets to fund climate solutions. We are pleased to mark the historic green bond anniversary together with Commerzbank and other German partners, and look forward to unlocking private support for climate related investment in the years ahead”. highlighted Jonathan Taylor, European Investment Bank Vice President.

The first green bonds were issued by the European Investment Bank, the Bank of the European Union, ten years ago on 4th July, 2007. Since then the EIB has issued more than EUR 19 billion of Climate Awareness Bonds in 11 different currencies. The EIB’s Climate Awareness Bonds have financed investment in 146 renewable energy and energy efficiency projects in 44 countries around the world.

The self-financing EIB is the world’s largest supranational bond issuer and issues green bonds, which finance a significant proportion of renewable energy and energy efficiency lending, alongside regular bonds.

The EIB is the world’s largest multilateral financier of climate related investment and last year alone provided EUR 19 billion for climate action projects worldwide. In support of the Paris Agreement, EIB committed to deliver climate finance globally for around EUR 100 billion in the five year period to 2020.

Background information: The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

Press contacts: EIB: Richard Willis, r.willis@eib.org, Tel.: +352 4379 82155, +352 621 555 758 Website: www.eib.org/press – Press Office: +352 4379 21000 – press@eib.org

Commerzbank: Tim Seifert, tim.seifert@commerzbank.com, Tel.: +49 69 136 81771

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Commerzbank is well advanced in its negotiations with employee representatives concerning the implementation of its Commerzbank 4.0 strategy. Based on this and subject to approval by the Group and Central workers’ councils, the Bank will book restructuring expenses of approximately €810 million in the second quarter 2017.

Further charges for the implementation of personnel reductions as part of the Commerzbank 4.0 strategy are not expected. The Bank had previously announced restructuring charges of €550 million for 2017 and 2018 respectively. The lower restructuring expenses are due to the personnel reductions already implemented, staff turnover and expected efficiencies in staff transfers and replacements.

Given the weak markets, Commerzbank anticipates a lower operating result in the second quarter versus the first quarter of 2017. Including restructuring charges, Commerzbank envisages a negative Group net result in the second quarter. Nevertheless the CET1 ratio is expected to be higher than 12.5% in the second quarter. Despite the higher restructuring charges, from today’s perspective Commerzbank does not expect to report a negative net result for financial year 2017.

The execution of the Commerzbank 4.0 strategy is firmly on track. Customer growth continued in the second quarter 2017. After gaining 151,000 net new customers in the first quarter, the Private and Small Business Customers segment registered a further approximately 200,000 net new customers in Germany by the end of May. This includes approximately 100,000 customers from the acquisition of OnVista by comdirect.

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Figures shown in this release are preliminary. Commerzbank will publish its final figures for the second quarter 2017 on 2 August 2017.

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Press contact

Margarita Thiel +49 69 136-46646

Erik Nebel +49 69 136-44986

Karsten Swoboda +49 69 136-22339

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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Disclaimer

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In the leading survey amongst professionals in the European stock markets, Commerzbank further strengthened its top position in equity research and sales for Germany. The Bank yet again defended its number one position as “Germany: Leading Brokerage Firm” according to the Extel survey. The survey among some 16,000 stock markets’ professionals across Europe also showed that the three best equity analysts for Germany are employed by Commerzbank.

Christoph Dolleschal, Head of Equity Research and Corporate Equity Distribution at Commerzbank, said: “In geopolitically troubled times and against the backdrop of regulatory changes, qualitative research as well as steady and reliable service is more important than ever. Even in a volatile market environment we haven’t let disturbed ourselves to represent our ideas confidently. Therefore, our Extel results, which have been outstanding for years, are an honour and a motivation for us”. Dolleschal added: “Investors and asset managers can take advantage of our strategic approach with a focus on German equities and Commerzbank’s close relationship to large corporates as well as medium-sized businesses”.

For the tenth year in a row, Extel awarded Commerzbank’s equity research the No. 1 in the top category “Germany: Country Research”. Achim Matzke, Head of Technical Analysis & Index Research, again leads the ranks of the best individual equity analysts for Germany, followed by his colleagues Andreas Hürkamp at No. 2 and Petra von Kerssenbrock at No. 3. Thorsten Grisse and Thomas Becker are two more analysts of the Bank to be placed in the top 10 of the individual rankings for Germany.

The Bank again received first place in the sector “Germany: Small & Mid Caps Research” as well as the third place in “Multi Asset Research”. Commerzbank also regained the top spot in the sector “Germany: Equity Sales” after finishing second in the year before. The Commerzbank experts moved up to second place in “Germany: Company & Expert Meetings” as well as “Index Analysis”. They again scored top 3 rankings in “Germany: Small & Mid Caps Sales” and “Equity Technical Analysis & Charting”.

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Press contact Stefan Gringel +49 69 136-51435 stefan.gringel@commerzbank.com

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About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

***

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, particularly to reduce its ACR portfolio, 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.

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This news is only available in German language.

Commerzbank generated a solid operating profit and further improved its Common Equity Tier 1 ratio in the first quarter of 2017. The implementation of the “Commerzbank 4.0” strategy announced in autumn last year is running according to schedule. The Bank's operating profit improved in the first quarter of 2017 to €314 million (Q1 2016: €282 million). Revenues before loan loss provisions increased slightly to €2,374 million (Q1 2016: €2,323 million), although, as expected, there was no repeat of the significant positive one-off effects that occurred in the same quarter of the previous year. Excluding these, revenues rose by €116 million year-on-year. This positive trend in revenues is due primarily to a rise in net commission income on the back of higher volumes in securities. Loan loss provisions stood at €195 million in the first quarter of 2017 (Q1 2016: €148 million). The year-on-year increase in loan loss provisions is due to higher loan loss provisions for ship finance. The non-performing loan (NPL) ratio of just 1.5%, which is still good compared to our European peers, reflects the Bank's healthy risk profile. Operating expenses came to €1,865 million (Q1 2016: €1,893 million). They already include the whole of the bank levy for 2017, which amounted to €171 million. The pre-tax profit stood at €314 million in the first quarter of 2017. So after deduction of taxes of €77 million and minority interests of €20 million, Commerzbank made a net profit of €217 million (Q1 2016: €169 million). Earnings per share came in at €0.17 in the first quarter of 2017 (Q1 2016: €0.13).

“Commerzbank had a good start to the new year and achieved a decent operating profit in the first quarter. We are on track with the implementation of our Commerzbank 4.0 strategy. The Private and Small Business Customers segment saw further growth in customer numbers and assets in the first quarter. In the Corporate Clients segment we launched a €6 billion credit initiative for German SMEs. But it is also clear that it will take some time for our growth to be sufficient to significantly outweigh the burden resulting from the negative interest rate environment”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank.

Common Equity Tier 1 ratio up at 12.5% – risk profile remains very good

Risk-Weighted Assets (RWA) with full application of Basel 3 were reduced in the first quarter of 2017 as a result of active portfolio management and lower operational risks. They stood at €186.2 billion at the end of March 2017, compared with €189.8 billion at the end of 2016 and €194.5 billion at the end of March 2016. The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 rose to 12.5%, versus 12.3% at the end of December 2016. The rise stems from the reduction in RWA. The level of the CET 1 ratio gives the Bank the necessary scope to absorb the forthcoming charges arising from restructuring costs and regulatory and accounting requirements. The leverage ratio decreased to 4.6% at the end of the first quarter of 2017, from 4.8% at the end of December 2016. Total assets came to €490 billion (end of 2016: €480 billion).

“Our Common Equity Tier 1 ratio has gone up to 12.5 percent. This gives us the necessary leeway for investments and restructuring. So we are proceeding according to plan”, commented Stephan Engels, Chief Financial Officer of Commerzbank. “Our risk profile remains very good”.

Development of the segments

The Private and Small Business Customers segment registered continued operational growth in the first quarter of 2017, both in Germany and at mBank. While the operating profit was down year-on-year at €194 million (Q1 2016: €277 million), the fall also reflects both the positive one-off effects, totalling €40 million, in the same quarter of the previous year, and higher regulatory costs, particularly in Poland, which rose by €32 million. Revenues before loan loss provisions did fall slightly to €1,168 million (Q1 2016: €1,195 million). However, after adjustment for the €40 million from the first quarter of 2016, revenues were up slightly, despite the continuing burden of the negative interest rate environment in Germany. Loan loss provisions increased over the same period to €33 million (Q1 2016: €23 million), which is still a low level. Operating expenses climbed to €941 million (Q1 2016: €895 million). This figure includes the higher costs for the bank levy and the Polish banking tax.

In Germany the Bank attracted approximately a net 151,000 new customers in the first quarter, making a gain of 0.3 million customers since it hit its 1 million target early, in October 2016. The loan volume was up 7% year-on-year. The new business in mortgage lending increased again over the same period. The quality of commission income was further improved due to the fact that managed investment products accounted for a larger share of business.

mBank also saw further business growth in the first quarter of 2017, and was able to raise its revenues before loan loss provisions compared to the first quarter of 2016. New business in consumer loans increased by more than 30% by volume over the same period. mBank also gained around 99,000 net new customers in the first quarter of 2017, so that it now has around 5.5 million private and corporate customers in Poland, the Czech Republic and Slovakia.

Operating profit for the Corporate Clients segment was down year-on-year in the first quarter at €250 million (Q1 2016: €280 million). Revenues before loan loss provisions, after adjustments for valuation effects from own liabilities (OCS) and for counterparty risk in the derivatives business, decreased year-on-year to €1,068 million (Q1 2016: €1,130 million). The Mittelstand Group division, supported by strong demand for capital market products, maintained stable revenues over the same period, and so was able to offset the burden of the negative interest rate environment. In the International Corporates Group division, clients remained reluctant to engage in capital market activities, while revenues from commercial banking as a whole remained stable. In Financial Institutions, revenues were down on account of the targeted reduction in the number of correspondent banks. Equity Markets & Commodities saw strong client demand for investment products in the first quarter of 2017 due to rising equity markets. The segment’s loan loss provisions stood at €43 million in the first quarter of 2017 (Q1 2016: €56 million). Operating expenses were reduced year-on-year to €789 million (Q1 2016: €810 million). As part of the Commerzbank 4.0 strategy, a growth initiative was launched in the segment in the first quarter with the aim of extending an additional €6 billion in loans to German SMEs.

The Asset & Capital Recovery (ACR) segment recorded an improvement in its operating result in the first quarter of 2017 to minus €33 million (Q1 2016: minus €119 million). Revenues before loan loss provisions increased to €115 million (Q1 2016: minus €18 million), largely as a result of the recovery of an exposure in the Public Finance Group division that had already been written down, as well as valuation effects. Loan loss provisions for the same period were higher, at €119 million (Q1 2016: €70 million). Ship Finance accounted for almost all of this. Operating expenses stood at €29 million in the first quarter of 2017 (Q1 2016: €31 million).

Outlook

The outlook remains unchanged: this financial year the Bank will further strengthen its market position and will focus on the implementation of the Commerzbank 4.0 strategy. Investments, P&L including restructuring costs, capital and RWA will be managed in such a way as to keep the CET 1 ratio stable at 12% or above. Commerzbank will aim to keep the cost base stable and book the first part of restructuring charges for Commerzbank 4.0 this year. The Bank expects loan loss provisions for segments Private and Small Business Customers as well as Corporate Clients to remain on the level of 2016, while loan loss provisions in Ship Finance are expected to be in a range of €450 million to €600 million.

Financial figures at a glance

*** From approximately 7 am onwards you can find broadcast-ready video material with statements by Stephan Engelsat http://mediathek.commerzbank.de/.

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*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances approximately 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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The shareholders voted as follows on the key items on the agenda:

Resolution on the appropriation of distributable profit (item 2)

The Annual General Meeting has voted, as proposed by the Board of Managing Directors and the Supervisory Board, to fully allocate the distributable profit, as reported in the annual financial statements for the financial year 2016, in an amount of approximately €747.2 million to profit reserves. The resolution was passed with a majority of 99.75%.

Discharge (items 3 and 4)

The members of the Board of Managing Directors and Supervisory Board were discharged with a majority of 99.80% and 99.79%, respectively.

Election of external auditor for the financial year 2018 (item 7)

As proposed by the Supervisory Board, the Annual General Meeting elected Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, Eschborn/Frankfurt a.M. as external auditor for the annual financial statements and the consolidated financial statements, as well as external auditor for the review of the interim financial reports for the financial year 2018. The resolution was passed with a majority of 99.62%.

This enables Commerzbank to change the external auditor for the financial year 2018, as intended, and in line with the provisions of the new EU Audit Regulation. The fact that Ernst & Young has already been elected this year ensures that the auditor can commence with the necessary preparatory activities for the transition of the audit mandate from mid-2017 onwards.

New election of a member of the Supervisory Board (item 8)

As proposed by the Supervisory Board, the Annual General Meeting elected Dr Tobias Guldimann to the Supervisory Board of Commerzbank AG; with a majority of 99.72%. Dr Guldimann succeeds Prof. Dr Ulrich Middelmann, who passed away in 2013. The latter had been succeeded by Dr Roger Müller as a substitute member of the Supervisory Board. Dr Müller’s term of office ended upon the election of the successor, and Dr Müller has returned to his position as a substitute member.

Amendment of the Articles of Association (item 9)

The Annual General Meeting has approved this item with 66.44%. With regard to the required majority of two-thirds of the votes cast, consent has thus not been given. Commerzbank’s intention with item 9 had been to have the Annual General Meeting decide that the Company could apply a shortened notice period – subject to certain conditions – for convening general shareholders’ meetings to adopt resolutions on a capital increase.

This would have been a precautionary measure, pursuant to the German Act on Reorganisation of the Responsibilities of the German Financial Market Stabilisation Agency (the “FMSA Reorganisation Act”) for the theoretical case that the prerequisites for intervention by a supervisory authority under the German Recovery and Resolution Act had been fulfilled.

Commerzbank is keeping its option open to put the topic to the vote once more.

The precise voting results on the individual agenda items are available at www.commerzbank.com/agm.

*** Press contact Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339 Erik Nebel +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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Commerzbank shareholders are voting today on the proposal by the Board of Managing Directors and the Supervisory Board that the net profit of approximately €747.2 million for the financial year 2016 – as reported in the annual financial statements pursuant to the German Commercial Code – be allocated in full to the revenue reserves. This serves to implement the “Commerzbank 4.0” strategy adopted last autumn, and to strengthen the Bank’s equity.

At the ordinary Annual General Meeting, held in Exhibition Hall 11 in Frankfurt/Main, shareholders are also voting on the proposal to elect Dr. Tobias Guldimann as a new member to the Supervisory Board. Furthermore, the shareholders are electing a new external auditor. The Supervisory Board is proposing that Ernst & Young be elected as external auditor for the financial year 2018.

Klaus-Peter Müller, Chairman of the Supervisory Board of Commerzbank, said: “Since taking up his post as the Chairman of the Board of Managing Directors one year ago, Martin Zielke has, together with his fellow board members, pursued a path towards sustainability and success for our Bank”.

Müller also stated: “Under the new EU Audit Regulation, Commerzbank is obliged to exchange external auditors on a regular basis. With our proposed change of the external auditor for the financial year 2018, we are one of the first companies to act pursuant to the new Europe-wide legal requirements”.

In the financial year 2016, Commerzbank attained according to IFRS an operating profit of €1,399 million (2015: €1,942 million) and a net profit of €279 million (2015: €1,084 million). The common equity tier 1 ratio at the end of 2016 had increased to 12.3 per cent (2015 year-end: 12.0 per cent).

Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank, said: “In 2016 we achieved a solid result. We have continued to grow our Private and Small Business Customers business and maintained our market leading position in the Corporate Clients segment. Nevertheless, we cannot yet be satisfied with our result. The environment remains challenging which is why implementing our strategy is so important. We are fundamentally realigning the Bank. In 2020 Commerzbank will be simpler, faster, and better”.

“Both 2017 and 2018 will be years of transformation,” Zielke explained. “Our new strategy is aimed at achieving the Bank’s sustainable profitability. Therefore we will have to invest more than €1 billion in restructuring stemming from the reinvestment of earnings – the challenging environment makes this necessary”.

The implementation of the strategy is on track. Zielke said: "We had a good start into the year and achieved a decent result. We continue to grow strongly in the Private and Small Business Customers segment and have won more than 150,000 new customers in the first three months of the year. In the Corporate Clients segment we launched a 6 billion euros loan initiative for German SMEs”.

Commerzbank will sustainably increase its profitability by the end of 2020. As part of its “Commerzbank 4.0” strategy it will consistently focus on its core businesses, digitalise 80 per cent of relevant processes thereby achieving significant efficiency gains. The Bank’s business is divided into two key client segments: Private and Small Business Customers as well as Corporate Clients.

In the Private and Small Business Customers segment, the Bank intends to win 2 million new net customers in Germany by 2020. It remains committed to its dense branch network. In Corporate Clients, the Bank is combining the strengths of its Mittelstandsbank (SME) franchise leveraging its capital markets expertise. The objective is to acquire 10,000 new corporate clients by the end of 2020. “We will leverage our position of strength to win market share,” said Zielke.

At www.commerzbank.com/agm you will find the agenda, additional documents on the Annual General Meeting, as well as a link to the live broadcast of the speeches by the Chairman of the Supervisory Board and the Chairman of the Board of Managing Directors.

*** Press contact Margarita Thiel +49 69 136-46646 Erik Nebel +49 69 136-44986 Karsten Swoboda +49 69 136-22339

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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According to a survey commissioned by Commerzbank, over the past five years 35 per cent of the companies have seen a change in their top management. 39 per cent expect to see such a change in the next five years. In the same period, 62 per cent of the companies expect to see the development of new business areas, 47 per cent expect disruptive changes on the market and one third of the companies expect to see major shifts in key technologies. For Commerzbank’s study, “Next generation: New business mind-sets” the market research institute Kantar TNS surveyed more than 2,000 small- and medium-sized enterprises across Germany. The results were presented to media in Frankfurt on 27 April 2017.

Change in top management offers companies major potential

A management change offers a large number of opportunities. Following a change in senior management, 66 per cent of those surveyed expect new areas of competence to be anchored in the structure of the company. 50 per cent of the firm expect to see comprehensive digitalisation of all business processes and corporate activities, and also intend to intensify their marketing and brand endeavours. Those surveyed see a change of management as a catalyst for the initiation of necessary changes. However, Commerzbank’s study indicates that in this respect the full potential frequently remains untapped, just one quarter of the companies in which a management change has happened report that processes and activities had been digitalised. “Small- and medium-sized enterprises now quite clearly have the best opportunity to complete a fundamental transformation into companies of the future. On the one hand, flat hierarchies and flexible structures allow them considerable room to manoeuvre. On the other hand, they are able to invest in their future success more easily than start-ups,” explained Michael Reuther, the member of the board of managing directors of Commerzbank responsible for the corporate clients segment.

The transformation into a company of the future is a joint project

Companies which have successfully implemented changes benefit from a new generation at the helm and the arrival of experienced, external managers. Young successors and managers aged below 40 frequently bring a founder mentality to the company and push ahead with pioneering corporate projects. However, young managers are most effective in companies which they have founded themselves. Just over 10 per cent of the surveyed companies are such “digital natives”. Many of them rank among the 15 per cent of companies which are active in growth markets in the service sector. In established firms – 50 per cent of the companies are over 30 years old – long-standing managers ensure regular product innovations to an above-average degree, safeguarding the company’s competitiveness. The study also reveals that companies in the SME sector profit from heterogeneous senior management structures with a good age mix of “those here for many years” and “newcomers”.

Companies expect “next generation banking” from their financial institutions

The surveyed companies show a very high degree of interest in new digital banking services. Alongside the development of new software and apps, 52 per cent of SMEs expect intelligent solutions which integrate bank services into their own IT systems. Nevertheless, advisory services remain popular: every second entrepreneur or manager can also imagine establishing contact to a bank using video chat.

The Commerzbank Entrepreneur Perspectives initiative and its studies

Since 2006 the Commerzbank Mittelstand initiative; Entrepreneur Perspectives, has provided studies and a forum to articulate the positions and viewpoints of the Mittelstand. The initiative regularly polls owners and managers from companies of all sizes and from all sectors on current issues across Germany. The data basis is formed by representative surveys of 2,000 first-level executives. The study results are discussed by representatives from the business world and industry federations, by politicians and academics in the framework to generate a mutual understanding and to develop viable solutions to the challenges faced by the Mittelstand. The complete results of the new study “Next Generation: New business mind-sets” can be found under www.unternehmerperspektiven.de.

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Press contact

Maximilian Bicker: 0172 6108149

Bernd Reh: 0170 9143734

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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Brexit continues to approach for the UK, the much anticipated French election is just around the corner, but sentiment indicators demonstrate that there is an air of optimism among European companies. “Loose ECB monetary policy is gradually reaching the real economy, not just the financial and housing markets,” said Commerzbank’s chief economist, Jörg Krämer, on Thursday in Frankfurt. In addition, there is a stronger global demand, although this faces unresolved problems in emerging countries. Commerzbank economists expect economic growth in the Eurozone to be slightly above consensus at 1.8% for this year.

In the French presidential elections, the Bank’s economists predict that Emmanuel Macron is on course for victory. “But Macron is not the nation’s saviour,” Krämer comments. He believes significant reforms will not be made by Macron. In Germany, Krämer expects a continuation of the consumer-driven upswing. Although other stumbling blocks could arise, for example the rollback of former Schröder reforms, the upswing is expected to continue in the short term. Commerzbank economists forecast that the German economy will grow by 1.6% in 2017, proving slightly more optimistic than the leading economic-research institutes.

As a result of an increase in inflation, pressure on the European Central Bank (ECB) to withdraw from the expansionary monetary policy rose. This will ease when the inflation rate falls over the course of 2017. Commerzbank analysts believe consumer prices will rise by 1.4% on average this year. As in 2016, the core inflation rate will only rise by 0.9%. Against this backdrop, Commerzbank analysts expect ECB will not raise interest rates for the moment. However, in the next year ECB will gradually scale back its bond buying, as it would otherwise exceed set limits. “But an enforced end to the bond buying should not be misinterpreted as the end of the loose monetary policy,” Krämer says.

Meanwhile, the US central bank began to normalise its monetary policy. “The US economy is developing roughly in line with the Fed’s expectations,” Krämer states. Commerzbank analysts expect two further rate hikes this year – one in June and one in December. However, the protectionist policy by the US president could still cause uncertainty. The Bank’s economists expect the US government to primarily address weaker trade partners like Mexico. “But Donald Trump will not provoke larger trading areas such as China and the EU,” Krämer says. “For example, if the Chinese were to retaliate and impose duties on US agricultural imports, farmers in the Midwest would suffer badly. But many of them voted for Trump”.

Recent production cuts agreed upon by OPEC and some non-OPEC countries have supported the oil price. However, Commerzbank analysts adhere to their forecast of Brent oil falling below $50 a barrel again by the end of the year. “The agreements of the OPEC countries will go to pieces as soon as they sense to being at risk of losing market share to other producing countries,” Krämer explains. With regard to the DAX Commerzbank experts also stand by their end of the year forecast of 11,700 points, although it is currently above this level. “We believe the market has run too far,” Krämer warns.

Commerzbank Research Prognoses

Growth in gross domestic product in real terms in % compared to previous year

*** Press contact Stefan Gringel +49 69 136-51435 stefan.gringel@commerzbank.com

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

*** 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, particularly to reduce its ACR portfolio, 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.

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Under this guarantee, EIB takes on the mezzanine risk under a synthetic securitisation transaction with Commerzbank. EIF is fronting the operation by providing a guarantee to Commerzbank in relation to an existing portfolio of corporate loans. EIB will provide a back-to-back counter-guarantee to EIF which will fully mirror EIF’s obligations under its guarantee. In addition, EIB and Commerzbank will enter into a separate agreement, whereby Commerzbank agrees to comply with EFSI requirements.

Ambroise Fayolle, Vice President of the EIB and responsible for Germany, commented: “The transaction clearly leverages EIB Group synergies, and it strengthens Commerzbank’s capacity to increase the size of its SME and Mid-Cap portfolio. The support of SMEs and Mid-Caps is a top priority for the EIB Group as they are the biggest sector of the EU economy, with 23 million enterprises employing around 75 million people. Small and medium sized enterprises and Mid-Caps are responsible for the creation of one in every two new jobs and I am very glad that we are continuing our long and successful cooperation with Commerzbank in providing fresh access to finance for SMEs and Mid-Caps”.

EIF Chief Executive, Pier Luigi Gilibert said: “EIF is pleased to be working with Commerzbank and the EIB to provide additional access to finance for SMEs and Mid-Caps. The combination of EIF’s investment and structuring expertise and the EIB’s efficient deployment of EFSI funds offer a competitive financing solution for Commerzbank which will serve to boost the supply of finance in the real economy”.

European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “SMEs are the engines of job creation and growth across Europe. Today's agreement demonstrates that our strategy to support these SMEs through unlocking additional financing is working. With this EFSI-backed financing, they will be able to innovate, expand their activities and create new jobs. I wish the small businesses that will benefit from the financing backed by the Investment Plan every success”.

Michael Reuther, Member of the Board of Managing Directors Commerzbank AG and CEO Corporate Clients said: “Commerzbank is Germany’s leading bank for SME and mid-cap lending and has been proudly co-operating with promotional banks for many years. This innovative product helps us to satisfy increasing client demands whilst providing the opportunity to manage our capital. Closing the very first synthetic securitisation under EFSI is a proof of Commerzbank’s innovative spirit as well as a commitment to further support the German Mittelstand at competitive conditions”.

About the EIB The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

About the EIF The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance. EIF designs and develops both venture and growth capital, guarantees and microfinance instruments which specifically target this market segment

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and M Bank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

The Investment Plan for Europe The Investment Plan for Europe, the so-called Juncker Plan, is one of EU´s top priorities to boost investments and to create jobs and growth by making smarter use of existing and new financial resources. The EIB Group is playing a vital role in this investment drive. Through guarantees from the European Fund for Strategic Investments (EFSI), the EIB and the EIF are able to take on a higher share of project risk, encouraging private finance providers to participate in the projects. In addition, EFSI is accompanied by a new advisory service, the European Investment Advisory Hub, which enables public and private project operators to structure their investment projects more professionally. The investment offensive also aims to make the regulatory environment in the EU more conducive to investment, especially in the digital, energy and capital market sectors. In September 2016, President Juncker proposed to extend the EFSI by increasing its firepower and duration as well as reinforcing its strengths.

Press contacts: Christof Roche, c.roche@eib.org, Tel.: +352 43 79 89013, Mobile: +32 479 65 05 88 Website: www.eib.org/press - Press Office: +352 4379 21000 – press@eib.org Follow us on Twitter @eib

Maximilian Bicker, maximilian.bicker@commerzbank.com, Tel. +49 69 136 22440, Mobile +49 172 610 8149 Bernd Reh, bernd.reh@commerzbank.com, Tel. +49 69 136 46971, Mobile +49 170 9143734 Website: www.commerzbank.com- Press Office: +49 136 22830 – Presse-Firmenkunden@commerzbank.com

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Of particular note are the following additional items on the agenda:

Resolution on the use of distributable profits (Item 2)

The Board of Managing Directors and the Supervisory Board of Commerzbank propose that the distributable profits of approximately €747.2 million for the financial year 2016 as reported in the annual financial statements pursuant to the German Commercial Code (HGB) be allocated in full to the revenue reserves. This serves to implement the “Commerzbank 4.0” strategy as resolved last autumn and to strengthen the equity capital of the Bank.

Election of the auditor (Items 5-7)

For the financial year 2018, Commerzbank seeks to change the auditor under the provisions of the new EU Audit Regulation. The election of the new auditor Ernst & Young shall already take place at the Annual General Meeting 2017. In particular, this ensures that the auditor can commence with the necessary preparatory activities for the transition of the audit mandate from mid-2017 onwards. For the financial year 2017, the Supervisory Board proposes PricewaterhouseCoopers as the auditor.

New election of a member of the Supervisory Board (Item 8)

It shall be proposed to the Annual General Meeting that Dr. Tobias Guldimann be elected to the Supervisory Board. Guldimann was employed by Credit Suisse from 1986 to the end of 2013, where he last was Chief Risk Officer. Guldimann is the Chairman of the Administrative Board of the Swiss rating agency Fedafin and a member of the Administrative Board of the Swiss private bank Edmond de Rothschild.

Guldimann is to succeed Prof. Dr. Ulrich Middelmann, who passed away in 2013. The latter had been succeeded by Dr. Roger Müller as a substitute member of the Supervisory Board. Upon the election of the successor, the mandate of Müller will end, and he will return to his position as a substitute member.

Amendment of the articles of association (Item 9)

The German Act on Reorganisation of the Responsibilities of the Federal Agency for Financial Market Stabilisation (the “FMSA Reorganisation Act”) enables financial institutions, on certain conditions, to provide for a shortened notice period for calling general shareholders’ meetings to adopt resolutions on a capital increase in the articles of association. This is a precautionary measure for the theoretical case that the prerequisites for a supervisory authority having to take action under the German Recovery and Resolution Act have been fulfilled. Commerzbank’s Board of Managing Directors and the Supervisory Board propose to the shareholders that use be made of the statutory possibilities and a resolution be adopted on a corresponding change to the articles of association.

Shareholders who have registered by midnight on 26 April 2017 at the latest are entitled to participate in the Annual General Meeting and to exercise voting rights. The speeches of the Chairman of the Supervisory Board and the Chairman of the Board of Managing Directors during the Annual General Meeting of Commerzbank may be viewed live on the internet on 3 May 2017 from 10.00 a.m. onwards at www.commerzbank.com/agm.

*** Press contact Alexander Cordes +49 69 136-42764 Erik Nebel +49 69 136-44986

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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The operating profit in the Group stood at €1,399 million as of the end of 2016 following on from €1,942 million in the previous year. The full year net profit came in at €279 million; this sum includes an impairment on goodwill and other intangible assets of €627 million as well as restructuring expenses of €129 million.

“Our business performance in 2016 was affected in particular by persistently low interest rates, volatile capital markets and a mood of caution among our customers. Despite all this, we achieved a solid operating profit of €1.4 billion. The Bank’s loan loss provisions also reflect our healthy risk profile. This is also evident from the non-performing loan ratio, which remains very good at just 1.6 per cent and compares well with other banks in Europe. The positive trend as regards capital resources continued in the year under review. With a Common Equity Tier 1 ratio of 12.3 per cent under full application of Basel 3, we are well above the currently applicable regulatory requirements imposed by the European Central Bank,” said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank, in the 2016 Annual Report submitted today.

Zielke added: “In September 2016 we presented our “Commerzbank 4.0” strategy. We want to make our Bank fit and profitable for the future. We want to become the most competitive bank in Germany – one that offers private and corporate customers a superior, modern range of digital and personalised services. We want to be close to our customers and to be fast and efficient in our dealings with them. Most of all, though, we want to reduce complexity and make our Bank one that can withstand adversity over the long term. With this in mind, we will be spending the coming years making our business model consistently more focussed, implementing digital transformation and boosting efficiency”.

In Private and Small-Business Customers, Commerzbank’s rate of growth has continued to outpace the market. The segment gained some 320,000 net new customers in Germany, significantly exceeding the target from 2012 of adding one million net new customers by the end of 2016. The lending business grew by 8% year-on-year. The new business volume in retail mortgage financing in 2016 was close to the previous year’s level, with a slightly increased margin. New consumer loan volumes rose by some 31%. The Bank also achieved strong growth in retirement savings business. The digitally networked multi-channel bank was further expanded. In branch business, Commerzbank has set up a single user interface for customers and their advisors in the year under review. The Polish mBank was also able to implement all the measures in its “One bank” strategy, which ran until 2016, and achieved almost all its targets. mBank’s customer base rose to 5.4 million in the year under review.

The former Mittelstandsbank and Corporates & Markets segments were merged to form the Corporate Clients segment. Building on the strengths of the Mittelstandsbank, the capital markets products and services of interest to corporate customers are also being integrated into the new segment. In order to make its organisation more efficient, Commerzbank will also be divesting itself of some of its investment banking trading activities and presenting itself exclusively as a customer-focussed bank. The downsizing of the trading activities is aimed at reducing earnings volatility and regulatory risk, and freeing up capital. The intention is to build on the Bank’s existing strengths by expanding trade finance business and enhancing its leading position in Germany as a debt house. Commerzbank will also be leveraging its extensive sector expertise in key German industries even further in future to increase the number of Dax and M Dax customers and other large corporates in Europe. Commerzbank is also endeavouring to expand its leading market position in Mittelstand business by further developing its existing service offering and rolling out new digital products and services.

The individual financial statement of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) states net income of €1,494 million for 2016 (2015: €1,693 million). This sum takes into consideration the payment of interest on all profit-sharing rights in Commerzbank AG. The Bank intends to retain full earnings. Detailed information about the monetary remuneration of the board members can be found in the remuneration report (pages 26 to 40). The number of employees of the Commerzbank Group as of the end of December 2016 was 49,941 (end of December 2015: 51,305).

Commerzbank received significant recognition of its sustainable approach with the Bank being added to the “Stoxx Global ESG Leaders” sustainability index in autumn 2016. Hence Commerzbank is included in this leading group of 300 companies from around the world, which stand out for the comprehensive way in which they tackle environmental, social, and governance issues.

Outlook

Commerzbank expects the environment to remain very challenging in the current financial year and does not anticipate any significant relief from the interest rate environment. Although the successes anticipated from “Commerzbank 4.0” are only scheduled to become apparent in the years to follow, the Bank aims to improve its income and earnings quality in 2017. Given that operating income is likely to be lower and costs stable, Commerzbank anticipates a similar consolidated net profit to last year.

The 2016 Annual Report is to be found on the internet at www.commerzbank.com/annualreport2016.

*** Press contact Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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Investors are sceptical when it comes to the long-term impact of the new US administration on the US economy. This was the result of a survey of around 400 participants at the Commerzbank Global Economy & Capital Markets Forum in Frankfurt on Wednesday. 64% of the surveyed see positive effects in the short term but expect the effect to be the reverse in the long term. 13% consider the impact as negative in every respect. One reason for this is the protectionism expected by the new US administration.

This phenomenon is certainly not limited to America: in the Netherlands, France, Germany and Italy, anti-establishment parties are getting ready for elections as well. 89% of surveyed delegates believe that these parties will significantly increase their influence in at least one of the countries, 15% even expect this to be the case in all four of the countries. The surveyed investors are thereby showing less confidence than in the previous year. In last year’s conference, 79% of the attendees were convinced that the UK would vote against “Brexit”.

Against the backdrop of this geopolitical uncertainty it is hardly surprising that investors expect globalisation to encounter reverses in the coming years: 53% of investors expect moderate reverses, 12% expect significant reverses. 25% of the polled participants hope for a positive development.

The EUR/USD rate is estimated to stay in the same corridor in a year’s time as it is ranked at the moment – between 1.00 and 1.10. A quarter of those polled believe that the euro will fall below parity with the dollar. With regards to upcoming Brexit negotiations, half of the Forum attendees expect the British pound to slightly weaken versus the euro within the next 12 months. 34% of participants see the DAX between 12,000 to 12,999 points in a year’s time, while 29% forecast it jumping above the 13,000 mark.

The Global Economy & Capital Markets Forum is an annual event for corporations and institutional investors. World-renowned business and opinion leaders, economists and financial sector decision-makers come together for two days to discuss the key trends and developments that are likely to drive investment strategies and shape capital market conditions. The conference was held for the fifth time and was attended by around 400 professionals from around 50 countries this year.

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Press contact

Stefan Gringel +49 69 136-51435 stefan.gringel@commerzbank.com

Tim Seifert +49 69 136-81771 tim.seifert@commerzbank.com

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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Commerzbank generated a solid operating profit and further improved its Common Equity Tier 1 ratio in 2016. The implementation of the “Commerzbank 4.0” strategy announced in autumn last year has begun on schedule. The operating profit for financial year 2016 fell to €1,399 million as of the end of 2016 (2015: €1,942 million). This was due mainly to challenging market conditions and the continued negative interest environment, which had an adverse impact on net interest income. Revenues before loan loss provisions fell year-on-year to €9,399 million (2015: €9,795 million). They also include some positive one-off effects, for example in the second quarter as a result of the sale of the Visa Europe shares, and in the fourth quarter in connection with the Heta exposure. Loan loss provisions stood at €900 million in financial year 2016 (2015: €696 million). The year-on-year increase in loan loss provisions was the result of high loan loss provisions for ship finance due to the difficult situation on the shipping markets. The Bank’s non-performing loan ratio of just 1.6%, which remains very good compared to its European peers, reflects the Bank`s healthy risk profile. Operating expenses were reduced to €7,100 million despite the charges arising from the new Polish banking tax and the European Bank Levy (2015: €7,157 million). The pre-tax profit, taking into account the impairment on goodwill and other intangible assets of €627 million in the third quarter and restructuring costs of €129 million, came in at €643 million for 2016. So after deduction of taxes of €261 million and minority interests of €103 million, Commerzbank posted a net profit of €279 million for 2016 (2015: €1,084 million). Earnings per share came in at €0.22 in financial year 2016 (2015: €0.90).

In the fourth quarter of 2016, the net profit fell year-on-year to €183 million (Q4 2015: €193 million). An operating profit of €337 million was recorded, versus €384 million in the fourth quarter of 2015. Revenues before loan loss provisions increased year-on-year to €2,399 million (Q4 2015: €2,240 million). This increase was attributable to the reinstatement of the value of the Heta exposure and revenues from the Bank`s sales of real estate, among other things. Loan loss provisions rose sharply year-on-year in the fourth quarter to €290 million (Q4 2015: €112 million). This development was due to the loan loss provisions on the ship finance portfolio, as was the case for the year as a whole. Operating expenses remained almost stable year-on-year, at €1,772 million (Q4 2015: €1,744 million).

“In 2016 we achieved a solid profit and further improved our capital ratio. However, we cannot yet be satisfied with the quality of our earnings and that’s why we will put every effort into the implementation of our strategy. We have now given ourselves the room for manoeuvre needed for this and can proceed with the transformation as planned. We want to make Commerzbank the most competitive bank in Germany by 2020. We will now work to achieve, step by step, the targets we have set ourselves”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank AG.

Common Equity Tier 1 ratio up at 12.3% – risk profile remains good

Risk-Weighted Assets (RWA) with full application of Basel 3 were further reduced in the fourth quarter of 2016 by active portfolio management. They stood at €190 billion at the end of 2016, compared with €195 billion at the end of the third quarter and €197 billion at the end of 2015. The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 rose to 12.3%, versus 12.0% at the end of December 2015. The increase was due to lower RWA. The level of the CET 1 ratio gives the Bank scope to absorb the forthcoming charges arising from restructuring costs and regulatory and accounting requirements. The leverage ratio improved to 4.8% at the end of financial year 2016, from 4.5% at the end of 2015. Total assets came to €480 billion (2015: €533 billion).

“Our Common Equity Tier 1 ratio has gone up to 12.3 per cent and exceeds all regulatory requirements. It means we are ready for the forthcoming charges arising from restructuring costs and regulatory obligations. And the CET 1 ratio is set to remain at or above 12 per cent for the rest of the year”, explained Stephan Engels, Chief Financial Officer of Commerzbank. Engels added: “We kept our costs stable in 2016 and were able to fully offset additional external charges”.

Implementation of Commerzbank 4.0 strategy under way

The implementation of the Commerzbank 4.0 strategy announced at the end of September 2016 is under way and running to plan. 300 staff are now on-site on the Digital Campus working on the digitalisation of 6 of the 14 end-to-end processes, known as “journeys”. One example of an end-to-end process is the Digital Instalment Loan platform, which will be started for the customers this year. Our target is to digitalise 80% of relevant processes within the Group by 2020. In retail banking a new type of branch was introduced: the “city branch”. The new sales platform, “One”, was also rolled out at the end of November. The unified user interface means customers and advisors have access to the same information – in the branch, in online banking, and in future at the customer centre as well. In the Corporate Clients segment, a new management structure has been agreed and already put in place to a large extent. Moreover, we have put in place teams of experts for all key industries, allowing us to offer our clients the combined expertise of Corporate Finance, Risk Management and Research. We are expanding this business.

Individual financial statement of Commerzbank AG

The provisional individual financial statement of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) states net income of €1,494 million for 2016 (2015: €1,693 million). This sum takes into consideration the payment of interest on all profit-sharing rights in Commerzbank AG. The Bank intends to retain full earnings.

Development of the segments

Under the new strategy unveiled at the end of September, which includes the restructuring of the segments, Commerzbank will now concentrate on two operating segments: the new Private and Small Business Customers segment and the new Corporate Clients segment.

The Private and Small Business Customers segment achieved continued growth in the 2016 financial year, both in Germany and at mBank. Its operating profit rose slightly year-on-year by 3% to €1,079 million (2015: €1,051 million). The figure includes several positive one-off effects which offset the adverse impact of the negative interest rate environment in Germany. In a tough market environment, revenues before loan loss provisions remained stable at €4.8 billion (2015: €4.8 billion). In Germany the loan volume was 8% up on the previous year, exceeding the market growth rate. Volatility in net commission income was further reduced according to plan by increasing the volume of securities in premium custody accounts and managed accounts. Loan loss provisions decreased by 29% over the same period to €119 million (2015: €167 million). Operating expenses remained stable at €3,621 million (2015: €3,627 million). This includes a rise in costs at mBank due largely to the Polish banking tax.

In Germany the segment attracted approximately a net 321,000 new customers in 2016. Since the end of 2012 it has gained 1.1 million customers. This means the retail business has met or surpassed all the essential targets it had set itself for the end of 2016. Especially the targets for the operating profit and assets under management have been significantly overachieved. The volume of new business in mortgage lending was roughly the same in 2016 as in the previous year, with a slightly higher margin. Sales of consumer loans increased by 31% in volume terms.

mBank also saw further business growth in financial year 2016, and was able to raise its revenues before loan loss provisions compared to the previous year. New business volume in consumer loans increased by more than 20% over the same period. mBank also gained a good 400,000 net new customers, so that it now has around 5.4 million customers in Poland, the Czech Republic and Slovakia. In the fourth quarter of 2016 the operating profit for the new Private and Small Business Customers segment totalled €235 million (Q4 2015: €227 million). Revenues before loan loss provisions amounted to €1,177 million (Q4 2015: €1,190 million).

The results of the Corporate Clients segment in financial year 2016 were adversely affected by the negative interest rate environment and the reorientation of business operations, though business with SMEs and German large corporates remained stable. Its operating profit was down year-on-year, at €1,287 million (2015: €1,695 million). The figure for the fourth quarter was €360 million (Q4 2015: €258 million). The improvement versus the same quarter of the previous year was due in particular to the fact there was a net release of loan loss provisions in the fourth quarter of 2016, whereas in the fourth quarter of 2015 loan loss provisions were still being added to on a net basis. Revenues before loan loss provisions, after adjustments for valuation effects from own liabilities (OCS) and for counterparty risk in the derivatives business, decreased to €4.3 billion in 2016 (2015: €4.7 billion). The fourth quarter contributed €1,083 million in revenues, after adjustments (Q4 2015: €1,120 million). The segment registered a marked fall in revenues in financial year 2016 due to the strategic adjustments to the business model. These adjustments are aimed at both improving the segment’s risk position and focussing more on core competencies and client needs. By contrast the Mittelstand Group division succeeded in maintaining its strong market position with overall stable revenues despite the negative interest rate environment. In International Corporates, clients were reluctant to engage in capital market activities, and ECB purchases of corporate bonds reduced fees for bond issuance and margins on corporate loans, while revenues from commercial banking as a whole remained stable. However, despite the tough market environment, capital market business was able to contribute to profits on the debt capital side as well, where stable revenues were recorded. The segment’s loan loss provisions rose to €185 million in 2016 (2015: €108 million). Operating expenses were down slightly at €2,973 million (2015: €3,030 million).

In the Asset & Capital Recovery (ACR) segment, the portfolios were run down further again in 2016. Exposure at Default (EaD) fell by €2.3 billion, taking it to €16.2 billion at the end of the year. The operating result was worse than the previous year at minus €514 million (2015: minus €466 million) on account of the steep increase in loan loss provisions in Ship Finance. The fourth quarter accounted for minus €155 million of this operating result (Q4 2015: minus €67 million). Revenues before loan loss provisions came out at €213 million for 2016 as a whole (2015: €76 million), supported by the reinstatement of the value of the Heta exposure in the fourth quarter. Loan loss provisions increased in 2016, due almost entirely to the further deterioration on the shipping markets, to €599 million, compared with €361 million the previous year. Operating expenses were reduced over the same period to €128 million (2015: €181 million).

Outlook

In financial year 2017 the Bank will further strengthen its market position and will focus on the implementation of the Commerzbank 4.0 strategy. Investments, P&L including restructuring costs, capital and RWA will be managed in such a way as to keep the CET 1 ratio stable at 12% or above. Commerzbank will aim to keep the cost base stable and book the first part of restructuring charges for Commerzbank 4.0. The Bank expects loan loss provisions for segments Private and Small Business Customers as well as Corporate Clients to be on the level of 2016, while loan loss provisions in Ship Finance are expected to be in a range of €450 million to €600 million.

2016 figures published in this press release are preliminary and unaudited.

***

From approximately 7 am onwards you can find broadcast-ready video material with statements by Martin Zielke and Stephan Engels at http://mediathek.commerzbank.de/.

*** Press contact Margarita Thiel +49 69 136-46646 Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in almost 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German economy, the Bank is a leading provider of capital market products. Its subsidiaries Comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank serves more than 17.5 million private and small business customers, as well as more than 60,000 corporate clients, multinationals, financial service providers, and institutional clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2016, it generated gross revenues of €9.4 billion with approximately 49,900 employees.

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With “#openspace” in Berlin-Schöneberg, Commerzbank has developed the first digitalisation platform for small- and medium-sized enterprises (SMEs). As the first of its kind, “#openspace” is a corporate transformation platform for German SMEs and constitutes a long-term cooperation between SMEs, innovation partners, and start-ups with the objective of successfully tackling the challenges posed by the digital future together. At the same time, “#openspace” is available as a home base for national and international start-ups providing advisory and logistical support.

“Digitalisation dominates the media, sciences, and corporate world like no other topic. But how can companies master the challenges posed by digitalisation? As an answer to this, we have created “#openspace”, a networked platform comprising SMEs, innovation partners, and start-ups. Here, the digital transformation is expedited and accompanied in the long term thanks to customised programmes,” says Holger Werner, CEO and founder of #openspace.

“With ‘#openspace’ we would like to empower SMEs so that they can fundamentally change their business models in line with new digital standards and help to overcome uncertainty with regards to digitalisation. Priority is given to the principle of ‘helping people to help themselves’,” says Joachim Köhler, COO and co-founder of “#openspace”.

In addition to a six week basic module named “#SenseOfUrgency”, “#openspace” offers various advanced programmes to provide a company with long-term support. The “#DigitalLab” module, for example, is geared towards supplementing an existing business model with digital products and processes. By contrast, in the “#DisruptiveLab”, an existing business model is fundamentally adapted over three phases.

In addition to the offering for Germany’s SME sector, with the “#StartUpFactory” “#openspace” also provides premises and support for international start-ups wishing to establish a foothold on the German and European markets or to expand in the region.

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Press contact Commerzbank Bettina Storck +49 69 136-81673

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About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. With the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services precisely tailored to its clients’ needs. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged market leader in financing for SMEs. The Commerzbank subsidiaries Comdirect in Germany and M Bank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of almost 9.8 billion euros with approximately 51,300 employees.

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About “#openspace” “#openspace” is the digitalisation platform for small- and medium-sized enterprises and the new home base for national and international start-ups. It provides them with the space and opportunities to make a success of the challenges posed by the digital future. The two managing directors Holger Werner and Joachim Köhler and their current team of 5 regard themselves as a long-term partner for small- and medium-sized enterprises undergoing digital transformation. “#openspace” is a wholly-owned subsidiary of Commerzbank and is domiciled in Berlin.

Download Press Release (PDF, 309 kB) Commerzbank #openspace Berlin Jan2017 (JPG, 3.5 MB) Commerzbank #openspace2 Berlin Jan2017 (JPG, 4.4 MB) http://www.openspace.digital/en

The requirements comprise the Pillar 1 Minimum of 4.5 %, the Pillar 2 Requirement of 2.25 %, the Capital Conservation Buffer of 1.25 % and the Domestic Systemically Important Banks Buffer (D-SIB/O-SII) of 0.5 %. The currently insignificant Countercyclical Buffer is not included.

The ratio of 8.5 % compares with the CET1 ratio of 13.6 % to Basel 3 transitional rules as of 30 September 2016.

The CET1 ratio requirement with the full application of Basel 3 (valid as of 2019) for Commerzbank is 10.75 %, assuming a constant Pillar 2 Requirement. The difference from the requirement for 2017 results from full application of the D-SIB (O-SII) amounting to 1.5 % and the Capital Conservation Buffer amounting to 2.5 %. This requirement compares with the CET1 ratio of 11.8 % with full application of Basel 3 as of 30 September 2016.

In its decision the ECB has lowered its requirements on Commerzbank’s Common Equity Tier 1 Requirement in a year-on-year comparison. For 2016 it had set the hurdles in the SREP at 10.25 % (Basel 3 transitional rules) and 11.75 % (Basel 3 full application).

In the SREP the ECB lays down individual capital buffers for relevant banks to further strengthen the resilience of the institutions to external shocks and increase the stability of the financial system.

Further information on the equity capital requirements placed on Commerzbank is to be found on the Internet under PDF, 120 kB

*** Press contact Alexander Cordes +49 69 136-42764 Maurice Farrouh +49 69 136-21947

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. With the two business segments Private and Small Business Customers, as well as Corporate Clients the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. The Commerzbank subsidiaries Comdirect in Germany and M Bank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of almost 9.8 billion Euro with approximately 51,300 employees.

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At the beginning of 2017 Donald Trump will be sworn in as the President of the United States of America and observers are still wondering just what this will mean. “Trump is different to his predecessors. But nobody knows what he will do differently,” Commerzbank’s chief economist Jörg Krämer said in Frankfurt on Friday at the presentation of his economic forecasts. Although the Republicans have a comfortable majority in Congress, Commerzbank’s experts nevertheless expect a tough tussle between Trump and his party colleagues. “Trump is not a true Republican,” Krämer said.

With regard to trade policy, Trump could utilise his extensive decision-making freedom to provoke trade conflicts. In the opinion of the Bank’s economists this could also damage the economic development of the USA. They therefore expect only moderately higher US growth of 2 per cent for 2017 and of 2.3 per cent for 2018 compared to that seen this year (1.6%). The core inflation will continue to rise moderately (2016: 2.2%; 2017: 2.3%; 2018: 2.5%). This has less to do with Trump, however, than with the approaching full employment, which has recently prompted wages to increase more quickly. For the Federal Reserve, Commerzbank’s experts expect two interest rate increases of 25 basis points each for the coming year and three of 25 basis points each for 2018.

In Europe, anti-establishment movements are also still on the rise. The forthcoming Constitutional referendum in Italy has developed into a plebiscite on the government itself. A failure to secure a reform of the senate on Sunday could sooner or later lead to fresh elections, with the euro-sceptic Five Star Movement possibly emerging as the winner of such an election. In Krämer’s opinion, however, Italy’s president would initially put in place a caretaker government so as to reassure the markets. “If the proposed reforms are not accepted on Sunday, the sovereign debt crisis will not automatically return”.

Should this come about in the course of the coming year, the European Central Bank (ECB) would once again come to the rescue. However, “the ECB no longer has that many levers to pull”, said Krämer. The bond-buying program would reach its limits in the coming year, even if these limits were expanded. In addition, vital reforms would, as a consequence, be postponed.

In Germany the “consumption-driven boom” continues apace. However an increasing number of undesirable developments can be seen under the glittering surface. These include, according to Krämer, the rolling back of earlier reforms and an increase in real estate prices, which poses the risk of a bubble. Overall, Commerzbank’s economists expect growth of 1.8 per cent this year and only 1.3 per cent in 2017.

The global economy will also feel the impact. In China the heavily indebted state-owned enterprises continue to suppress growth. Instead of dismantling surplus capacities, Commerzbank believes the government will ensure that state banks continue to supply the state-owned enterprises with loans. This will deprive the healthy companies of resources, and, on the whole, will weaken growth in the People’s Republic. Due to this “Zombification” the Bank’s economists expect growth next year to decline to 6.5% (2016: 6.7%).

On the stock markets, analysts at the Bank expect prices to rise further and see the DAX reaching a level of 11,700 points at the end of 2017. As a consequence of numerous political risks in the eurozone, Commerzbank’s experts expect strong fluctuations on the stock markets in the course of the coming year; making 2017 the “year of politics”.

Commerzbank Research Prognoses

Growth in gross domestic product in real terms in % compared to previous year

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Press contact

Stefan Gringel +49 69 136-51435 stefan.gringel@commerzbank.com

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About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. With the two business segments Private and Small Business Customers, as well as Corporate Clients the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the clients’ needs. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. The Commerzbank subsidiaries Comdirect in Germany and M Bank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of almost 9.8 billion Euro with approximately 51,300 employees.

***

Disclaimer

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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.

Development of the segments

The restructuring of the segments announced as part of the new strategy decided at the end of September will mean that the two new operating segments will contribute fairly equally to the Bank’s comprehensive income. Under the new structure and based on a preliminary calculation, the Private and Small Business Customers segment generates an operating profit of €0.8 billion and revenues before loan loss provisions of €3.6 billion for the first nine months of 2016. The Corporate Clients segment generates an operating profit of €0.9 billion and revenues before loan loss provisions of €3.4 billion for the same period. The new reporting structure will come into effect in the fourth quarter of 2016, and the results will be presented in this format for the first time with the annual press conference on 9 February 2017.

The results under the former structure were as follows:

The Private Customers segment saw its operating profit climb to €580 million in the first nine months of 2016 (first nine months of 2015: €555 million). The third quarter accounted for €209 million of this (Q3 2015: €228 million). In the period under review, as in the first nine months of the previous year, non-recurring effects were recognised which, overall, had a positive impact on the operating profit. Revenues before loan loss provisions slipped slightly to €2,823 million in the first nine months (first nine months of 2015: €2,870 million). The segment worked to counter the ongoing pressure on its deposit business caused by the negative interest-rate environment with the help of targeted measures, aimed in particular at increasing the volume of the lending business. Its loan volume rose by 8% year-on-year in the third quarter of 2016. New mortgage financing was up on the previous quarter and year-on-year. The securities business also improved slightly over the previous quarter. In addition, there was a further improvement in the composition of securities revenues. The proportion of the securities volume in premium custody accounts and managed accounts increased from 43% to 48% in the first nine months in a year-on-year comparison. Overall, the Private Customers segment saw continued growth. The Bank has attracted a total of 994,000 net new customers since 2013, so it is already close to its target of 1 million net new customers by the end of the year. Loan loss provisions decreased in the first nine months to a very low level of €11 million (first nine months of 2015: €51 million). Operating expenses were down slightly for the first nine months at €2,232 million (first nine months of 2015: €2,264 million).

Mittelstandsbank saw its operating profit reduced year-on-year in the first nine months of 2016 to €640 million due largely to lower revenues and much higher loan loss provisions (first nine months of 2015: €910 million). The third quarter accounted for €229 million of this (Q3 2015: €231 million). Hence, Mittelstandsbank continued to show a solid performance overall. Revenues before loan loss provisions – excluding adjustments for counterparty risk in the derivatives business – amounted to €2,078 million in the first nine months of 2016 (first nine months of 2015: €2,195 million). The negative interest rate environment, especially, had an adverse effect on deposit margins. In addition, net commission income was lower, particularly in Financial Institutions, due to the strategic focussing. However, revenues before loan loss provisions held stable in Large Corporates & International over the same period. Loan loss provisions for the segment rose substantially in the first nine months of 2016 to €213 million (first nine months of 2015: €110 million). Operating expenses were up over the same period – due primarily to investments in Compliance and IT – at €1,238 million (first nine months of 2015: €1,195 million).

The Central & Eastern Europe segment posted a good operating profit of €243 million for the first nine months of 2016 (first nine months of 2015: €254 million). Of this, €57 million were contributed in the third quarter (Q3 2015: €97 million). The new Polish banking tax introduced in February 2016 resulted in a charge of €54 million, which was partly offset by the positive revenue trend in the first nine months. Revenues before loan loss provisions climbed to €720 million in the first nine months of 2016 (first nine months of 2015: €687 million). The good revenue performance was supported by a positive one-off effect from the sale of the One Visa shares, totalling €65 million, in the second quarter. The revenues for the first nine months of 2015 also included a positive one-off effect of €46 million from the sale of the insurance business to the Axa Group. Even excluding these two one-off effects, revenues increased year-on-year. This was due to continued organic growth at mBank, which is reflected particularly in the positive trend in net interest income. There was an improvement both in volume terms and in the interest margin, for example the volume of consumer loans increased by 15% over this period. mBank also continued its positive trend in attracting new customers. In the third quarter around 104,000 net new customers in Poland, the Czech Republic and Slovakia joined mBank, taking its customer total to around 5.3 million customers at the end of September. Loan loss provisions of the segment remained virtually unchanged at €74 million in the first nine months of 2016 (first nine months of 2015: €75 million). Operating expenses increased in the first nine months, as a result of the Polish banking tax, to €403 million (first nine months of 2015: €358 million).

The Corporates & Markets segment, continuing to operate in a difficult market environment, saw its operating profit for the first nine months of 2016 reduced to €147 million after adjustments for valuation effects from own liabilities (OCS effect) and adjustments for counterparty risk in the derivatives business (first nine months of 2015: €410 million). This decrease was due mainly to a weaker first half in 2016. Its adjusted operating profit for the third quarter was at €22 million (Q3 2015: €25 million). Revenues before loan loss provisions – excluding the OCS effect and adjustments for counterparty risk in the derivatives business – fell to €1,210 million in the first nine months (first nine months of 2015: €1,514 million). Fixed Income & Currencies (FIC) and Advisory & Primary Markets (APM) saw their revenues remain virtually stable over this period, while Equity Markets & Commodities (EMC) and Credit Portfolio Management (CPM) registered a dip in revenues. EMC in particular was hit by the high level of uncertainty on the capital markets, which took its toll on business in structured investment products for institutional clients. Loan loss provisions in the segment totalled €22 million in the first nine months, versus net releases of loan loss provisions amounting to €25 million in the first nine months of 2015. Operating expenses were down sharply in the first nine months of 2016 at €1,041 million (first nine months of 2015: €1,129 million).

The Asset & Capital Recovery (ACR) segment reported a year-on-year improvement in its operating result in the first nine months of 2016 to minus €359 million (first nine months of 2015: minus €399 million). The third quarter accounted for minus €108 million of this (Q3 2015: €52 million). Revenues before loan loss provisions slipped to €30 million in the first nine months of 2016 (first nine months of 2015: €62 million). Loan loss provisions for the same period were lower, at €292 million (first nine months of 2015: €311 million), with only Ship Finance reporting a net addition to loan loss provisions in 2016. Operating expenses were down sharply in the first nine months of 2016 at €97 million (first nine months of 2015: €150 million).

Outlook

Including the goodwill impairments, Commerzbank is expecting a positive net result for the full year 2016. The CET 1 ratio after full application of Basel 3 should rise to around 12% by the end of the year. Commerzbank intends to keep its cost base for full year 2016 stable compared to last year. The Bank will fully offset additional external burdens to achieve this. Loan loss provisions should be under €1 billion despite the continuously challenging situation on the shipping markets.

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From approximately 7 am onwards you can find broadcast-ready video material with statements by Chief Financial Officer Stephan Engels at http://mediathek.commerzbank.de/.

*** Press contact Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339 Kathrin Wetzel +49 69 136-44011

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Today, Commerzbank launches its first international campaign focusing on its Corporate Clients business. The campaign is intended to promote the strengths of Commerzbank’s international business as well as its global presence and service offering for corporate clients domestically and globally. Four Commerzbank employees are featured as protagonists with the campaign representing four different locations and Commerzbank’s international expertise.

The main focus of the campaign is an overarching TV commercial which will appear on primetime television in Germany. The TV commercial will be accompanied by six content videos which will feature on international online media. The campaign focuses on seven core countries where marketing activities will be implemented: Germany, Austria, Switzerland and France as well as the UK, China and the USA.

Within the TV commercial, four Commerzbank employees are featured, representing four international locations. One employee, Marie Duflos, is already known from the Corporates & Markets TV commercial. Three further employees from New York, São Paulo and Shanghai will also be seen on screen. Commerzbank’s intention behind the Corporate Clients campaign is to strengthen the perception of Commerzbank as an international bank and to make clients and prospects more aware of its capabilities.

The TV commercial highlights Commerzbank’s international competence stating: ‘There’s a bank in Europe that stands at corporates’ side like no other. One which accompanies European corporates worldwide. A bank that finances a large share of European foreign trade, and was founded especially for that purpose over 140 years ago. That’s why so many companies in Europe rely on it for their international trade’.

Michael Reuther, Commerzbank Divisional Board Member of the new segment Corporate Clients and Group Treasury, explains why as part of the new strategy the corporate clients business is helping to establish Commerzbank’s identity: ‘Commerzbank processes over 30 per cent of German foreign trade and almost 20 per cent of the European foreign trade. We want to highlight this strong international presence and expertise even further with society and our customers. Our international business strengths are still little known by clients and prospective clients. We want to change that. We want to place greater emphasis on international competence’.

As a modern multi-channel bank, Commerzbank produced a moving image campaign with an innovative media and channel strategy on TV and on social networks. The Bank has also created a dedicated campaign microsite. The campaign represents the service offering of former segments Mittelstandsbank and Corporates & Markets, which are now merged, bringing their core strengths to the new segment Corporate Clients.

Commerzbank Head of Brand Management, Uwe Hellmann, explains how the Corporate Clients segment campaign is integrated into Commerzbank’s brand and product advertising plans: ‘The Corporate Clients campaign does not only strengthen the public perception of Commerzbank as an international bank but also mentions concrete products and innovative service offering for corporate clients globally’.

Running alongside the TV commercial and the six online content videos, adverts in print and online media will be placed. The campaign will also be displayed on screens at German and international airports in New York, São Paulo, Shanghai and London. The campaign is expected to run until end of December.

The campaign introduces the core business capabilities of Commerzbank’s new Corporate Clients segment, covering: Export finance, Commerzbank’s cross-border relationship model, capital market financing, risk management for interest rates, foreign exchange and commodities, letters of credit and cash pooling. Commerzbank campaign promises: ‘At your side, worldwide!’

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Press contact

Martin Halusa +49 69 136-85331 martin.halusa@commerzbank.com

Maximilian Bicker +49 69 136-22440 maximilian.bicker@commerzbank.com

Martin Bendrich +49 69 136-23719 martin.bendrich@commerzbank.com

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About Commerzbank

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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, particularly to reduce its ACR portfolio, 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.

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By the end of 2020 Commerzbank will have sustainably increased its profitability. As part of the “Commerzbank 4.0” strategy, it will concentrate on its core businesses and digitalise 80% of relevant processes, thereby achieving significant efficiency gains. Its business will be focused in two customer segments, “Private and Small Business Customers” and “Corporate Clients”. The Mittelstandsbank and Corporates & Markets segments will be consolidated into a single unit and trading activities in investment banking scaled back. The downsizing of the trading activities will reduce earnings volatility and regulatory risk, and will free up capital to be invested in the core businesses.

Commerzbank is aiming for a net return on tangible equity (RoTE) of more than 6% by the end of 2020. This target is based on the expectation that the interest rate environment will remain challenging. Should interest rates improve, a net return on tangible equity of more than 8% will be achievable. Commerzbank is expecting revenues for 2020 to total between €9.8 and 10.3 billion. The cost base is to be reduced to €6.5 billion, taking the cost/income ratio to below 66%. In a normalised interest rate environment, revenues could rise to over €11 billion and the cost/income ratio could fall to around 60%.

The Common Equity Tier 1 (CET 1) ratio, after full application of Basel 3, is expected to stay at around 12% and will be above 12% in 2018 taking into account currently foreseeable regulatory developments. For 2020 the Bank is expecting a ratio of above 13%.

To cover its restructuring costs of around €1.1 billion, Commerzbank will cease dividend payments for the time being and will retain its full earnings.

The focus on the core business, with some business activities being discontinued, and the digitalisation and automation of workflows will lead to staff reductions amounting to around 9,600 full-time positions. The Bank will shortly begin preparatory discussions with the relevant employee representative committees. At the same time, around 2,300 new jobs will be created in areas of business growth. Hence the net number of jobs shed will amount to around 7,300 full-time positions.

“Job cuts are a painful process for the Bank and for each individual affected. But they are necessary to make the Bank fit for the future. Although Commerzbank is stable, it is not profitable enough”, said Martin Zielke, Chairman of the Board of Managing Directors of Commerzbank. “We have achieved a great deal in the last few years: we have improved the quality of our balance sheet, reduced risk and significantly strengthened our capital base. Now, with the general business climate as challenging as ever, we need a bold rethink and a real transformation of the Bank. For this, we will be concentrating solely on our strengths, automating our processes and thereby laying the foundations for profitable growth at lower costs. The new Commerzbank 4.0 is focused, digital and efficient”.

Concentrating on strengths

With its two segments, “Private and Small Business Customers” and “Corporate Clients”, Commerzbank will in future be even more focused on its core businesses. “We are focusing on the areas where we deliver particular added value to our customers, thereby setting ourselves apart from the competition. And we are systematically giving up businesses in which we can’t see any future for us”, said Martin Zielke. This relates in particular to the investment bank, where trading activities will be simplified and aligned with the needs of the Bank's core customers. The existing Corporates & Markets segment will be integrated into the Corporate Clients segment. Services that are important to corporate clients such as primary issuance and distribution and risk management will remain key to the Commerzbank’s offering. The technology-intensive structured equities business in Equity Markets & Commodities (EMC), geared towards market-making and the manufacturing of securitised products, will be ringfenced in a separate legal entity. The exotic structured rates business will cease, while flow credit and bond trading in Fixed Income & Currencies (FIC) will be scaled back. The capital freed up by this withdrawal will be reinvested in the “Private and Small Business Customers” segment. By 2020 the Bank wants to achieve cost savings of €1.1 billion by focusing, eliminating redundancy, simplifying the infrastructure and by digitalisation.

Private and Small Business Customers: building on our strong position

The new Private and Small Business Customers segment encompasses Commerzbank's private and small-business customers as well as the subsidiaries Comdirect, Commerz-Real and M-Bank. The customer group “Small-Business Customers” comprises commercial clients and smaller SMEs.

The Bank wants to gain a net two million new customers in Private and Small Business Customers in the German market by 2020. Growth will be driven, in particular, by the expansion of digital multichannel banking and innovative products like a new digital instalment loan platform and digital asset management including Robo-Advice. Commerzbank will also maintain a dense branch network. Besides the large flagship branches in the main population centres, Commerzbank will introduce a new type of small, modern branch, the “city branch”.

“For years now, our retail business has posted sustainable, profitable growth in a stagnating market. We will continue this success story and extend it to small business customers”, said Zielke. The Bank is planning to substantially increase its market share among small business customers to 8% over the next four years, thanks to good regional accessibility, tailored product portfolios, digital solutions and its ability to offer private and business services in one place. The aim is for these measures to generate revenue growth of at least €1.1 billion in the new Private and Small Business Customers segment by the end of 2020.

Corporate Clients: national and international growth from a leading position

In corporate banking, the Bank wants to further extend its leading position in trade financing. To achieve this it is looking for focused growth in the most important trade corridors for German and European corporate clients. With its deep penetration of the key German industries – automotive and transport, chemicals and pharmaceuticals, engineering, energy and infrastructure, consumer and retail – Commerzbank possesses comprehensive sector expertise which sets it apart from the competition. In future it will increasingly offer this expertise to its international clients in Europe as well. Among SMEs with turnover of between €15 and 50 million as well, Commerzbank plans to further expand its market position with the aid of its international expertise and digitalisation. To achieve this it will further develop its offering and introduce new digital products and services.

Collaboration between client relationship managers and product experts will be further strengthened by the consolidation of Mittelstandsbank and Corporates & Markets. “The Corporate Clients segment builds on the strengths of the Mittelstandsbank and incorporates the products and services from the capital markets business that are relevant to our clients”, Zielke said. The aim is for these measures to generate revenue growth of over €300 million in the new segment by the end of 2020.

Evolution into a digital enterprise

Commerzbank wants to evolve into a digital enterprise in the next four years. The Bank will invest approximately €700 million per year in digitalisation and IT by reallocating existing funds, without increasing its overall investment expenditure. In future, agile project teams working on a “Digital Campus” will drive forward digitalisation projects and automate and optimise processes. By 2020 80% of relevant business processes will be digitalised. The Bank expects significant cost reductions and efficiencies as a result.

The first milestone will come in October when Commerzbank rolls out its integrated digital sales interface, “One”. This will enable sales personnel and customers to view information and conduct transactions on the same platform at any time. In addition, the Bank will put in place a flexible smart data architecture to enable customers to be addressed in a targeted way. An integrated cloud-based customer relationship management system for private, small business and corporate clients will then be introduced in the second half of 2017.

Outlook

Due to the reduction in trading activities, Commerzbank will write off goodwill and intangible assets of approximately €700 million in the third quarter of 2016. Consequently, the net result will be negative in the third quarter. The write-offs do not affect the Common Equity Tier 1 (CET 1) ratio. In terms of Operating profit, Commerzbank expects revenues to be approximately the same as in the second quarter. Loan loss provisions will be considerably higher than in the first two quarters due to ongoing weakness in the ship markets. Despite the goodwill write-offs, Commerzbank is expecting a small net profit for 2016 as a whole.

The CET 1 ratio after full application of Basel 3 will be higher in the third quarter of 2016 than in the previous quarter. The Bank is expecting its Common Equity Tier 1 ratio to stand at nearly 12% at the end of the year, provided no significant market distortions occur.

“Efficient use of our capital is our top priority. Our capital ratio will remain comfortably above the foreseeable regulatory requirements”, said Commerzbank's Chief Financial Officer, Stephan Engels. “We are financing the implementation of our strategy through the targeted use of our resources and by retaining profits. Therefore we are also ceasing dividend payments. We also have the necessary leeway by managing our risk-weighted assets”.

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Press contact Margarita Thiel +49 69 136-46646 Alexander Cordes +49 69 136-42764

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

*** 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, particularly to reduce its ACR portfolio, 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.

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The Supervisory Board intends to propose to the Annual General Meeting (AGM) in May 2018 that Dr. Stefan Schmittmann be elected to the Supervisory Board as a shareholder representative. The AGM shall also be notified that Dr. Stefan Schmittmann will be put forward as candidate for the position of Chairman of the Supervisory Board. Dr. Schmittmann stepped down from the Bank’s Board of Managing Directors at the end of 2015, and would therefore observe the statutory cooling-off period of two years before joining the Supervisory Board.

Commerzbank’s Supervisory Board furthermore intends to propose to the AGM in May 2017 that Dr. Tobias Guldimann be elected to the Supervisory Board as a shareholder representative. Dr. Roger Müller would step down from the Bank’s Supervisory Board at the end of the 2017 AGM. Should Dr. Tobias Guldimann be elected to the Supervisory Board, the Supervisory Board plans to appoint him as a member of the Audit Committee for the duration of his term as a Supervisory Board member.

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Press contact

Margarita Thiel +49 69 136-46646

Alexander Cordes +49 69 136-42764

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About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

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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, particularly to reduce its ACR portfolio, 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.

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Commerzbank maintained its good market position in a challenging environment, posting an Operating profit of €615 million for the first half of 2016 (first half of 2015: €1,089 million). The figure for the second quarter was €342 million (Q2 2015: €419 million). Revenues before loan loss provisions stood at €4,545 million (first half of 2015: €5,221 million). This fall in revenues was due in particular to the negative interest rate environment and customer caution in the wake of adverse developments on the macroeconomic and geopolitical front. The Bank implemented targeted measures to counter the decline. Revenues generated in the second quarter amounted to €2,231 million (Q2 2015: €2,436 million), of which €123 million is attributable to a positive one-off effect from the Visa transaction. The level of loan loss provisions was very low in the first half, at €335 million, of which €187 million was booked in the second quarter (first half of 2015: €438 million; Q2 2015: €280 million). The continued low level is due to the high quality of the loan book and the stability of the German economy. At 1.4%, Commerzbank has a very good non-performing loan ratio among its European peers. Operating expenses excluding the European Bank Levy have remained stable for several quarters. The Bank was able to compensate for strategic investments in digitisation, regulatory enhancements, and compliance by means of ongoing efficiency measures. Operating expenses amounted to €1,702 million in the second quarter (Q2 2015: €1,737 million), with personnel expenses down due to FTE reduction, sourcing, and lower accruals for variable compensation. Net profit came in at €372 million for the first six months of 2016, of which €209 million was generated in the second quarter (first half of 2015: €645 million; Q2 2015: €307 million).

“Commerzbank has maintained its good market position in an adverse environment and posted an operating profit of 342 million euros in Q2. In the Private Customers segment we further grew and extended our loan volumes. Furthermore, we are able to confirm our leading market position in Mittelstandsbank. We sustain a healthy risk profile with a very good NPL ratio of 1.4 per cent. Our CET1 capital ratio of 11.5 per cent is appropriate and already includes a dividend accrual of 10 cents per share for the first half of 2016. Moreover, we report a comfortable Leverage Ratio of 4.4 per cent”, said Stephan Engels, Chief Financial Officer of Commerzbank.

CET 1 ratio at an appropriate level at 11.5% (Q2 2015: 10.5%)

The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 was at 11.5% at the end of June 2016 (end of March 2016: 12.0%; end of June 2015: 10.5%). As in the first half of 2015, this includes a dividend accrual of 10 cents per share for the first half of 2016. The change in the ratio is due firstly to a moderate increase of risk-weighted assets (RWA) with full application of Basel 3 to €198 billion as of end of June 2016 (end of March 2016: €195 billion); in particular for operational risks due to the consideration of new external events factored in by external databases. Secondly, deductions on pension liabilities as well as revaluation reserve increased. The total assets in the Group amounted to €533 billion as of the end of June 2016 (end of March 2016: €536 billion). The leverage ratio came in at 4.4% at the end of the second quarter of 2016, reflecting the changes in capital and on the balance sheet.

Development of the segments

In the Private Customers segment, a good Operating profit of €371 million was recorded in the first half of 2016. This represented a year-on-year increase of 13% (first half of 2015: €327 million). The figure for the second quarter was €180 million (Q2 2015: €169 million). Revenues before loan loss provisions remained steady at €1,869 million (first half of 2015: €1,875 million). This includes a positive one-off effect of €58 million from the sale of Visa Europe shares in the second quarter. The segment was able to offset the negative interest rate environment with targeted measures such as increasing the volume of its lending business. Its loan volume was up by a significant 8% year-on-year in the first six months of 2016. New mortgage financing business remained at a high level, with margins increasing in the second quarter of 2016. Securities business was down owing to geopolitical uncertainties and customers’ resulting caution. Overall, the Private Customers segment saw continued growth. A net 62,000 new customers chose Commerzbank in the second quarter. Since 2013 the Bank has now gained a net 940,000 new customers. Loan loss provisions decreased in the first half to a very low €11 million (first half of 2015: €38 million). The segment was able to reduce its operating expenses in the first half to €1,487 million (first half of 2015: €1,510 million).

Mittelstandsbank saw its Operating profit fall from €679 million to €412 million year-on-year in the first half of 2016. In the second quarter of 2016, it generated €203 million, compared with €314 million in the second quarter of 2015. The impact of the negative interest rate environment, in particular, was evident here, and Mittelstandsbank took specific steps to offset this, for example by the reduction in deposits or price measures. This is reflected in the positive trend seen in the loan-to-deposit ratio from 80% in the first quarter of 2016 to 92% in the second quarter of 2016. Revenues before loan loss provisions – excluding adjustments for counterparty risk in derivatives business – totalled €1,401 million in the first half of 2016 (first half of 2015: €1,521 million). Core business held stable: the Mittelstand Germany division reported stable loan volumes along with higher margins. The Large Corporates & International division benefited in the first half from a 7% year-on-year increase in lending volume. The Financial Institutions division generated lower revenues, as expected. This is mainly due to more stringent risk and compliance requirements which were initiated by the Bank itself. In addition, net interest income for the first half declined by 7% year-on-year on account of the negative interest rate environment. Loan loss provisions stood at €146 million for the first half (first half of 2015: €79 million). Operating expenses were increased slightly, coming in at €835 million for the first half (first half of 2015: €805 million).

The Central & Eastern Europe segment achieved a good Operating profit of €186 million in the first half of 2016, of which €109 million was contributed in the second quarter (first half of 2015: €157 million; Q2 2015: €69 million). Revenues before loan loss provisions for the first six months were 7% higher than for the same period of the previous year (first half of 2016: €492 million; first half of 2015: €459 million). The good revenue performance was supported by a positive one-off effect from the sale of Visa Europe shares, totalling €65 million, in the second quarter. The figure for the first half of 2015 includes a positive one-off effect of €46 million from the sale of the insurance business to Axa Group. Even excluding these two one-off effects, revenues increased year-on-year. This gain resulted principally from net interest income which, excluding exchange rate effects, was up 17% on the first half of 2015. The segment continued to record organic growth. Similarly sales of consumer loans showed a sharp increase of 24% in the first six months compared to the first six months of 2015, reaching a record level in the second quarter. M-Bank continued its positive trend in attracting new customers: in the second quarter net new customers numbered around 109,000, taking M Bank's customer base to 5.2 million at the end of June. Loan loss provisions for the first half, at €42 million, were similar to the same period of the previous year (first half of 2015: €47 million). Operating expenses were higher in the first half of 2016, at €264 million (first half of 2015: €255 million). The rise is due to the €33 million charge for the Polish banking tax, introduced in February 2016.

In a challenging environment for equities business, the Corporates & Markets segment saw its Operating profit reduced to €201 million in the first half of 2016 (first half of 2015: €473 million). Of this, €119 million was for the second quarter, down from €176 million in the second quarter of 2015. Revenues before loan loss provisions – excluding valuation effects from own liabilities (OCS effect) and adjustments for counterparty risks in derivatives business – came to €837 million in the first half, which is 26% down on the same period of the previous year (first half of 2015: €1,133 million). In Advisory & Primary Markets (APM) the performance of the Debt Capital Markets unit resulted in a stable year-on-year showing. The Fixed Income & Currencies (FIC) division profited from the continued demand for currency products, whereas demand for interest rate and credit trading was muted by comparison due to the low interest rate environment and the European Central Bank’s monetary policy activities. Equity Markets & Commodities (EMC) was hit by the high levels of uncertainty on the capital markets, which took its toll on business in structured investment products for institutional clients. The securities lending and collateral management business is also being realigned and adapted in response to the change in market conditions. Loan loss provisions remained low in the first half. Net releases of loan loss provisions came to €7 million for the first half (first half of 2015: net release of €36 million). Operating expenses were reduced in the first half of 2016 to €718 million (first half of 2015: €784 million).

The Asset & Capital Recovery (ACR) segment reported a 43% year-on-year improvement in its Operating result in the first half to minus €256 million (first half of 2015: minus €451 million). Revenues before loan loss provisions totalled minus €48 million in the first half of 2016, above the level for the first six months of 2015 (first half of 2015: minus €95 million). In the first half of 2016, loan loss provisions in ACR were reduced to €145 million due to the continued portfolio run-down (first half of 2015: €249 million), whereas Ship Finance loan loss provisions were still at a high level. Operating expenses also decreased in the first half of 2016, to €63 million (first half of 2015: €107 million).

Outlook

Commerzbank will continue its strategy of further expanding its market share for its Private Customers business, and maintaining the leading position of the Mittelstandsbank. The Bank expects the negative rate environment and the adverse markets to further weigh on revenues. Furthermore, the Bank will aim to keep its very good risk profile, although loan loss provisions are likely to increase by a moderate amount due to lower releases and continuously challenging shipping markets. Commerzbank intends to keep its cost base stable with exception of additional external burdens. The Bank’s ambition remains to keep the capital ratio under full application of Basel 3 above SREP-requirements.

*** Press contact Alexander Cordes +49 69 136-42764 Kathrin Wetzel +49 69 136-44011

*** 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, particularly to reduce its ACR portfolio, 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

Commerzbank has attained a solid result in the Stress Test performed by the European Banking Authority (EBA). In the baseline scenario of the Stress Test Commerzbank has posted a Common Equity Tier 1 ratio (CET 1) of 13.1%. In the so-called adverse scenario of the Stress Test the Common Equity Tier 1 ratio was 7.4%. Both results apply to the end of the period under observation in 2018. These ratios already include significant “phase-in” effects as a result of regulatory requirements (Basel 3). These “phase-in” effects which amounted to 1.7% were incurred irrespective of the Stress Test.

In the EBA Stress Test in 2014 the Common Equity Tier 1 ratio with full application of Basel 3 for Commerzbank in the baseline scenario was 10.6%, in the adverse scenario 6.9%. In comparison to 2014 the 2016 EBA Stress Test was once again tightened significantly in terms of its methodology and expanded by further risk factors.

“Commerzbank is robust and stress resistant” says Marcus Chromik, the Chief Risk Officer of Commerzbank. “Even under the adverse conditions of the EBA stress scenario, the stability of the Bank would be granted. The low-risk balance sheet and good capital ratio of Commerzbank are proof to this”.

Since the 2014 EBA Stress Test Commerzbank has run down non-strategic portfolios by approx. 54 billion euros while preserving value, created approx. 3.5 billion euros of balance sheet equity capital, and thus increased the Common Equity Tier 1 ratio with full application of Basel 3 by 300 basis points from 9.0% (end of 2013) to 12.0% (end of 2015).

Under https://www.commerzbank.de/en/hauptnavigation/aktionaere/aktuelles_2/stresstest2016.html you can find further information on the publication by the EBA from 29 July 2016.

*** Press contact Margarita Thiel +49 69 136-46646 Alexander Cordes +49 69 136-42764

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

*** 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, particularly to reduce its ACR portfolio, 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.

Download Press Release (PDF, 72 kB)

The Common Equity Tier 1 ratio (CET 1) under full application of Basel 3 stood at 11.5% at the end of June 2016 (end of March 2016: 12.0%; end of June 2015: 10.5%) based on preliminary figures. This ratio includes a dividend accrual of 10 cents per share for the first half of 2016.

The change in the CET1 ratio mainly results from the following non-operating valuation and methodology effects:

As already stated in the past, the capital ratio can be volatile in the current market environment. Commerzbank’s ambition remains to keep its capital ratio under full application of Basel 3 above SREP-requirements.

Figures shown in this release are preliminary. Commerzbank will publish its final figures for the second quarter 2016 on 2 August 2016.

*** Press contact Margarita Thiel +49 69 136-46646 Alexander Cordes +49 69 136-42764

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

***

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, particularly to reduce its ACR portfolio, 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.

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With the increasing integration of China into the global financial system, the renminbi is progressively gaining in significance in Europe. This has been confirmed by a survey of more than 200 companies which was conducted by Commerzbank and the Forsa institute. In 2015 only 25% of the surveyed companies were actively engaged on the topic of renminbi, in 2016 this figure had grown to 33%.

To date 17% of surveyed participants are processing invoices for Chinese business activities in renminbi and a further 16% of the companies surveyed are planning to convert their invoicing next year. The fundamental reasons stated for this move are benefits with price negotiations (56%), the preferences of Chinese trading partners (53%), as well as safeguarding against exchange rate risks (47%) and advantages in market development on the Chinese mainland (41%).

Since the conversion of invoicing to renminbi, primarily standard products have been used. For example, 97% of the surveyed companies process their payment transactions in renminbi, 94% utilise renminbi accounts and a further 67% rely on exchange rate hedging for the purposes of risk management.

“The internationalisation of the renminbi has continued in the past year,” said Michael Rugilo, Asia Expert Corporates & Markets at Commerzbank, adding: “This is despite a downturn in currency reserves and muted growth forecasts for China”.

When safeguarding against exchange rate risks companies generally utilise standard products: the clear leaders, favoured by 80% of companies, are spot exchange transactions and forward exchange transactions. Approximately 50% also use electronic platforms to process their renminbi exchange rate hedging. Renminbi is particularly in demand in the manufacturing sector. China is one of the most important trading partners for importers and exporters, who as part of their trade relationships are progressively utilising the renminbi.

The survey confirmed that Germany’s SME sector uses and recognises the growing and international presence of the renminbi. “Corporate clients are increasingly using risk management products to utilise opportunities in an ever more challenging renminbi market environment or to reduce risks due to higher volatility,” said Martin Keller, Head of Product Management at Commerzbank Mittelstandsbank.

***

Press contacts

Bernd Reh +49 69 136 46971, bernd.reh@commerzbank.com

Tim Seifert +49 69 136 81771, tim.seifert@commerzbank.com

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

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*** Press contact Gunnar Meyer +49 69 136-27298 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

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As the first major German bank Commerzbank has developed a new financing platform for small- and medium-sized enterprises. The so-called peer-to-peer lending platform bears the name Main Funders. With this financing marketplace clients of Mittelstandsbank are able to present concrete investment projects to potential investors and thus acquire these for financing. As a rule the financing volumes are between €200,000 and €10 million.

“High investment requirements, for example in the wake of digitalisation and Industry 4.0, contrast with a high level of liquidity as a consequence of the ongoing low interest rates for deposits – now more than ever. This leads to a fresh need for additional offerings to conventional financing and investment business. We are addressing these with Main Funders,” says Michael Kotzbauer, divisional board member Corporate Banking at Commerzbank. “At the same time, as a platform Main Funders is an important basis in the framework of our digitalisation strategy,” adds Kotzbauer.

“Main Funders combines the competencies and long-standing experience of an established bank with those of an agile and innovative start-up,” explains Birgit Storz, Founder Director of Main Incubator and divisional head Segment Management and Development for Mittelstandsbank at Commerzbank. “We are utilising our client network, our banking know-how, and our tried-and-tested processes – which also have supervisory authority approval. At the same time, Main Funders is based on a user-friendly platform, which is easily accessible through the corporate client portal,” adds Storz.

The development of the new platform took place in close cooperation between Commerzbank and Main Incubator. The specialists from Commerzbank are active in the “backroom” at Main Funders. They also assume responsibility for the review and assessment of clients and projects – thus guaranteeing fair conditions thanks to risk-adjusted pricing depending on differing creditworthiness classes. The cornerstone for successful transactions is always a convincing project description.

*** Press contact Commerzbank Martin Halusa +49 69 136-85331 Bernd Reh +49 69 136-46971

Press contact Main Incubator Helena Nohman +49 69 719138730

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of EUR 9.8 billion with 51,300 employees.

*** About Main Incubator Main Incubator GmbH, main incubator for short, is a wholly-owned subsidiary of Commerzbank. Founded in October 2013, the company is domiciled in Frankfurt and commenced its business operations in March 2014. It is represented by its managing directors Birgit Storz and Christian Hoppe. When it was launched, main incubator was the first incubator for finance technology start-ups at a major bank in continental Europe. The focus is on solutions for corporate clients. With its strategic investments the company accompanies fintech start-ups through to the market launch of products. The offering for start-ups encompasses access to the clients of Commerzbank, venture capital, banking know-how, office space and infrastructure in Frankfurt. The incubator does not seek any majority stakes with its investments. main incubator has already completed six strategic participations: in Traxpay, Gini, OptioPay, ByeBuy, Bilendo and Retresco. In addition to investing in promising fintech companies, main incubator is pushing ahead with the digitalisation of Mittelstandsbank through company-building projects such as Main Funders. Further information under www.main-incubator.com

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In the leading survey amongst professionals in the European stock markets, Commerzbank has defended its top position in equity research and sales for Germany. At this year's Extel survey, the Bank is No. 1 in four categories. According to the survey, which generated a record participation of almost 20,000 stock markets professionals across Europe, six of the top ten equity ranked analysts for Germany work for Corporates & Markets (C&M), the investment banking arm of Commerzbank.

Christoph Dolleschal, Head of Equity Research and Corporate Equity Distribution at Commerzbank, said on Wednesday in Frankfurt: "In the current environment, where we see turbulent market phases, the need for in-depth research and a reliable service is higher than ever. So, the recognition of these Extel rankings for our research and sales capability are very important to us." He added: "Investors and asset managers can take advantage of the expertise, sector knowledge, and close relationship of Commerzbank to large corporates and medium-sized businesses."

Extel awarded Commerzbank’s equity research for the ninth consecutive year as the No. 1 in the top category "Germany: Country Research". Achim Matzke, Head of Technical Analysis & Index Research, again leads the ranks of the best individual equity analysts for Germany, followed by his in-house fellows Andreas Huerkamp, placed No. 2, and Petra von Kerssenbrock, placed No. 4. In the top 10 of the individual rankings on Germany, there are three more C&M analysts including Bernd Meyer, placed No. 8, whose team achieved a No. 3 position in the pan-European "Multi Asset Research" category. Moreover, Commerzbank finished second in the category “Equity Technical Analysis & Charting“ and third in ”Index Analysis“, both supported by four top ten positions each of the Commerzbank analysts.

In equities service for Germany, C&M defended for the fifth consecutive year the first position as "Germany- Leading Brokerage Firm" according to the Extel Survey 2016. This was underpinned by the 1st ranks in the categories "Germany: Small & Mid Caps Research" and "Germany: Small & Mid Caps Sales" as well as an improvement by two ranks to a No. 2 position in the "Germany: Equity Sales" category.

***

Media contact:

Thomas Bonk +49 69 136 22373 t.bonk@commerzbank.com

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank, it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of EUR 9.8 billion with 51,300 employees.

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Commerzbank has completed the winding-up of its wholly-owned subsidiary Hypothekenbank Frankfurt AG (HF), formerly Eurohypo AG. The portfolios of HF from the Private Customers, commercial real estate loans, and Public Finance segments were transferred to Commerzbank AG over the Whitsuntide weekend. HF has been transformed into the service company LSF Loan Solutions Frankfurt GmbH. The servicing and ongoing run-down of the commercial real estate loans portfolio transferred to Commerzbank AG are the tasks of LSF, operating mostly independently on behalf of Commerzbank. The necessary personnel cuts in Eschborn with the winding up of HF were attained without any enforced redundancies. In the course of the transformation of HF into the service company LSF, HF will return its banking licence and Pfandbrief licence.

In the course of the transaction all the outstanding Pfandbriefe of HF were transferred to Commerzbank AG. The outstanding mortgage Pfandbriefe of both institutions currently have the highest rating of AAA. The objective is that of retaining this rating for the mortgage Pfandbriefe of Commerzbank AG. Large portions of the private residential mortgage loans of HF are being transferred to the cover pool of Commerzbank AG. The commercial real estate loans of HF will, on principle, not be assigned to the cover pool of Commerzbank AG. The outstanding public Pfandbriefe of Commerzbank AG currently have the highest rating, AAA, from Moody’s and Fitch, the Pfandbriefe of HF have a rating of Aa1 from Moody’s. Commerzbank is aspiring to a solid rating of at least AA for its public Pfandbriefe in the future. With a view to the necessary surplus cover, the statutory requirements plus a sufficiently large buffer are being created for the management of the cover pool. Mortgage Pfandbriefe and public Pfandbriefe will also be a permanent element in the long-term funding of Commerzbank in the future.

Press contact

Martin Halusa +49 69 136 85331

Alexander Cordes +49 69 136 42764

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of EUR 9.8 billion with 51,300 employees.

***

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, particularly to reduce its NCA portfolio, 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.

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In a difficult market environment, Commerzbank generated an operating profit of €273 million in the first quarter of 2016 (Q1 2015: €670 million) and a net profit of €163 million (Q1 2015: € 338 million). Revenues before loan loss provisions declined to €2,314 million (Q1 2015: €2,785 million), reflecting a further deterioration in the interest rate environment and a slowing client activity within difficult markets. The loan loss provisions decreased again in the first quarter of 2016 to €148 million (Q1 2015: €158 million). The low level is a result of the high quality of the loan book, the stable condition of the German economy, and the continued run-down of non-strategic portfolios. The operating expenses in the first quarter were at €1,893 million (Q1 2015: €1,957 million). This already includes the entire European Bank Levy of €143 million expected for 2016 as well as the Polish banking tax of €13 million for two months. Strategic investments in digitilization as well as regulatory and compliance enhancements were compensated in full by consistent efficiency measures. The capital ratio CET 1 remained unchanged at 12.0% and, as in the same quarter of the previous year, reflects a dividend accrual of 5 cents per share.

The pre-tax profit after three months amounted to €273 million (Q1 2015: €604 million). On the whole, the first quarter of 2016 saw a net profit of €163 million (Q1 2015: €338 million).

“In view of difficult market conditions and the increasingly challenging interest rate environment, the Bank achieved a reasonable operating profit in the first quarter,” said Stephan Engels, Chief Financial Officer of Commerzbank. Engels added: “The Bank’s risk profile is good and with its CET 1 capital ratio at 12.0 per cent, it continues to hold a solid midrange position among European peers”.

Capital ratio stable – risk-weighted assets slightly reduced

The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 as of the end of March 2016 was unchanged at 12.0% (end of December 2015: 12.0%). This ratio takes into account a dividend accrual of 5 cents per share. The leverage ratio as of the end of the first quarter of 2016 remained unchanged at a comfortable 4.5%. Risk-weighted assets (RWA) with full application of Basel 3 decreased in the same period to €194.5 billion as of the end of March 2016 (end of December 2015: €197.4 billion). Positive impacts included the stronger exchange rate for the euro, in particular vis-à-vis the US dollar and the British pound, and beneficial effects from a new securitisation. The total assets in the Group amounted to €536 billion as of the end of March 2016 (end of December 2015: €533 billion).

Development in the segments

In the Private Customers segment the operating profit increased significantly in the first quarter of 2016 to €191 million (Q1 2015: €157 million). This includes a positive one-off effect of €44 million from a special dividend from EURO Kartensysteme GmbH. Despite the ongoing burden deriving from the low interest rate environment and customer reluctance in volatile stock markets, revenues before loan loss provisions rose slightly to €944 million in Q1 2016 (Q1 2015: €935 million). A growth in revenues in the strong lending business contributed to this. Compared to the same quarter of the previous year, the segment’s loan volume increased by 8% in the first quarter of 2016. Volumes of new business in mortgage loans totalled around €3.15 billion in the first quarter, and grew by 8% year-on-year, while the new business in consumer loans saw a volume increase of 44%. The loan loss provisions decreased in the first quarter of 2016 to €9 million and thus remained at a very low level (Q1 2015: €14 million). Operating expenses declined to €744 million in the same period (Q1 2015: €764 million). The segment’s customer growth continued with 59,000 net new customers acquired in the first quarter 2016. Thus, the total net growth since the end of 2012 amounted to 878,000 customers.

Year on year, the operating profit at Mittelstandsbank declined in the first quarter of 2016 to €209 million (Q1 2015: €364 million). This was mainly due to the negative interest rate environment that further intensified. The pressure on the deposit margins increased further with loan volumes unchanged due to a subdued loan demand in Germany. All in all, the core business with German SMEs and large corporates remained stable. The revenues before loan loss provisions decreased in the first quarter to €706 million (Q1 2015: €807 million), while loan loss provisions increased to €53 million (Q1 2015: €24 million). The interest income declined significantly, above all due to negative interest rates. Net commission income decreased, among other things, as a consequence of the lower income from FX hedging transactions. In the same quarter of the previous year the strong client demand in this area had led to exceptionally higher revenues. In order to counter the impact of negative interest rates for both the clients and the Bank, Mittelstandsbank has intensified its dialogue with its clients on alternative investment opportunities for excess liquidity. Operating expenses increased in the first quarter of 2016 to €444 million (Q1 2015: €419 million), primarily due to higher investments in Compliance and IT.

In the first quarter of 2016, Central & Eastern Europe generated a good operating profit of €77 million (Q1 2015: €88 million) despite the introduction of a banking tax in Poland in February 2016. The result for the same quarter of the previous year included a positive effect from the sale of the insurance business of M Bank. Revenues before loan loss provisions declined in the first quarter of 2016 to €220 million (Q1 2015: €253 million). Adjusted for the aforementioned effect of approximately €46 million, revenues increased. In particular, interest income rose because of the operational growth of M Bank and an improved interest margin. Loan loss provisions fell by almost 50% in the first quarter of 2016 to €13 million (Q1 2015: €23 million), with operating expenses decreasing in the same period to €130 million (Q1 2015: €142 million). M Bank continued its prudent cost management. However, the new Polish banking tax of €13 million was booked for the first time in the first quarter of 2016. The dynamic customer growth of M Bank also continued: year-on-year the number of customers increased by around 374,000. Therefore, the bank has now passed the level of 5 million customers.

The operating profit in Corporates & Markets – adjusted for effects from the valuation of own liabilities (OCS) and counterparty risks in the derivatives business – declined to €70 million in the first quarter of 2016. Alongside weak development of the capital markets, it was considerably lower than the extraordinarily good first quarter of 2015 (€250 million). The high degree of uncertainty with regard to capital markets also led to lower demand for investment solutions in the first quarter of 2016, and therefore to a decrease in the revenues before loan loss provisions to €475 million (Q1 2015: €681 million). The generally low level of primary issuance in syndicated loans and in equity markets were partially compensated by higher revenues from bond issuance. Loan loss provisions increased in the first quarter to €5 million, after the same quarter of the previous year had seen a net release of €47 million. The operating expenses declined in the first quarter of 2016 to €388 million (Q1 2015: €431 million).

Ongoing run-down of €1.0 billion in non-strategic portfolios

The operating profit in the first quarter of 2016 in the new Asset & Capital Recovery (ACR) segment amounted to minus €122 million (Q1 2015: minus €187 million). Decreasing losses resulted in particular from lower operating expenses and significantly lower loan loss provisions. The revenues before loan loss provisions in the first quarter of 2016 totalled minus €21 million (Q1 2015: minus €19 million). In the same period, loan loss provisions decreased to €70 million (Q1 2015: €109 million) as a consequence of the continued run-down of the portfolio. The operating expenses in the first three months of this year amounted to €31 million (Q1 2015: €59 million). The Bank has also successfully continued the value-preserving portfolio run-down in the first quarter: the exposure at default (EaD) in the segment fell by €1.0 billion compared to the fourth quarter of 2015, to just over €17 billion as of the end of March. In the Commercial Real Estate (CRE) area the run-down led to a reduction over the previous quarter of €0.2 billion, to €2.9 billion as of the end of March 2016. In the Ship Finance area the portfolio decreased by €0.6 billion to €5.5 billion despite difficult market conditions.

Outlook

Commerzbank will continue its strategy of increasing market share. In addition, it is further intensifying its efforts to mitigate the effects stemming from the negative interest rate environment. Without taking into account additional external burdens, the aim is to keep the cost base stable. The loan loss provisions are likely to see a moderate increase due to lower net releases. In view of the subdued nature of the first quarter, it will be more challenging to reach the net profit posted in 2015.

*** Press contact Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

*** 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, particularly to reduce its ACR portfolio, 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.

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The shareholders voted as follows on the fundamental items on the agenda:

Resolution on the use of the profit shown on the balance sheet (item 2)

The profits reported on the annual financial statements for the fiscal year 2015 totalled approximately €846.7 million. The Annual General Meeting has voted, as proposed by the Board of Managing Directors and the Supervisory Board, that approximately €250.5 million of the profit will be used for the payment of a dividend of €0.20 per share with dividend entitlement. The remaining sum of approximately €596.2 million will be allocated to the revenue reserves. The resolution was passed with a majority of 99.68%.

Discharge (items 3 and 4)

The members of the Board of Managing Directors and Supervisory Board were discharged with a majority of 99.85% and 99.81%, respectively.

Compensation for the Supervisory Board (item 7)

The Annual General Meeting has approved item 7 with 96.47%. Therefore, the compensation for the Supervisory Board will be changed to a purely fixed compensation. This reflects the development of the German Corporate Governance Code. The amount of the compensation will be adjusted in line with the increased level of responsibility and the large workload associated with the office.

The precise voting results on the individual items on the agenda are to be found at www.commerzbank.com/agm.

***

Press contact

Alexander Cordes +49 69 136-42764

Karsten Swoboda +49 69 136-22339

Kathrin Wetzel +49 69 136-44011

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

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The shareholders of Commerzbank are today voting on the proposal by the Board of Managing Directors and the Supervisory Board that the profits reported for the financial year 2015 to the amount of approximately €846.7 million be utilised for the payment of a dividend of €0.20 for each no-par share with dividend entitlement (a total of approximately €250.5 million). The remaining sum of approximately €596.2 million is to be allocated to the revenue reserves. Furthermore, shareholders are voting on the new regulation for the compensation of the Supervisory Board. In the future, Supervisory Board members’ will be converted to a purely fixed compensation so as to reflect the development of the German Corporate Governance Code. The shareholders’ meeting is taking place in Exhibition Hall (Messehalle Halle) 11 (Portalhaus) in Frankfurt/Main.

Klaus-Peter Müller, Chairman of the Supervisory Board of Commerzbank, said: “I am pleased, not only for our shareholders, but also for Martin Blessing, that the Board of Managing Directors and the Supervisory Board are able to propose to shareholders the resumption of a dividend payment today. Since 2008, he has safely guided our Bank through a period that has been extraordinarily difficult for the industry as a whole and particularly challenging for European institutions. At the same time, I am very pleased about Martin Zielke’s appointment as successor to Martin Blessing. In the past five years, he has put our Private Customers segment back on the road to success in an impressive manner. I am firmly convinced that together with the entire team of managing directors he will continue to pursue Commerzbank’s path to becoming a sustainably successful bank”.

Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank: “In an environment that remains challenging we saw a positive development in 2015. For the first time in five years, we have again attained a net profit of more than €1 billion. Our equity position has also seen a significant improvement. Today it is already much higher than the requirements demanded by regulators from 2019 onwards. Moreover, for the first time since the onset of the financial crisis, we intend to pay a dividend of 20 cents per share. All the segments of the Bank have contributed to this positive development. We have also made major progress in the Non-Core Assets segment. We have once again reduced both its volume and risks significantly. The portfolio of commercial real estate, ships, and sovereign debt declined to less than €63 billion as of the end of 2015. Since 2012, we have reduced this area by nearly €100 billion”.

In the financial year 2015, the operating profit of the Group increased to €1,909 million, following on from €689 million in the previous year. The Core Bank increased its operating profit to €2,310 million (2014: €1,504 million). The net profit improved significantly, to €1,062 million (2014: €266 million).

“In view of the considerably more challenging conditions we also expect to see a slow start into the year. The result for the first three months is likely to be lower than in the previous quarter. This will also have an impact on the year as a whole: it will be more challenging to attain the net profit posted in 2015,” said Martin Blessing.

“We have initiated and implemented a large number of measures and shown that we are successful. We have to continue determined along this path. We still face a number of tasks and challenges. The strategy for the years after 2016 will provide the correct answer to these. Developing this strategy will be the task of Martin Zielke and the entire team of managing directors. I am convinced that my colleagues will provide the right impetus to place the Bank on a sustainable footing,” added Blessing.

At www.commerzbank.com/agm you can find the agenda, additional documents on the Annual General Meeting, as well as a link for the live broadcast of the speeches by the Chairman of the Supervisory Board and the Chairman of the Board of Managing Directors.

*** Press contact Margarita Thiel +49 69 136-46646 Karsten Swoboda +49 69 136-22339 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittel¬standsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

***

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, particularly to reduce its ACR portfolio, 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.

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The operating profit in the Group increased to €1,909 million as of the end of 2015 following on from €689 million in the previous year. The full year net profit improved considerably to €1,062 million; this sum includes restructuring expenses of €114 million.

“2015 was a decent year overall for Commerzbank. For the third year in a row, the Bank increased its consolidated profit and earnings per share. In addition, we made further substantial reductions in risks within the Group. Compared with our European peer group, our Common Equity Tier 1 ratio under the full Basel 3 criteria of 12% is good. All these tangible and measurable successes show that our strategic focus is on track and that we are well-positioned to sustain higher levels of profitability in the years ahead,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank, in the 2015 Annual Report submitted today.

The digitalisation of customer approaches, product offerings, and business processes are of high strategic priority for Commerzbank. Private customers already have simple, user-friendly tools to carry out banking transactions from home – by text, audio, and video chat – during the day, in the evening, and at the weekend. New business in retail mortgage financing also posted healthy growth thanks to the new open real estate platform, up 18% year-on-year and counteracting lower deposit interest income caused by the low interest rate environment. In Mittelstandsbank, too, Commerzbank succeeded in offsetting – at least partially – the low and at times negative interest rates through growth. Commerzbank has also laid important foundations for the future in the area of digitalisation in Mittelstandsbank. To lay the foundations for an even more customer-oriented, modern Mittelstandsbank and for further profitable growth, Commerzbank has made the sales structure, particularly for the Mittelstand customers, more regionally focused. M Bank in Poland – which essentially represents the Central & Eastern Europe segment – is an award-winning innovation leader in digital sales. Overall in 2015, M Bank increased its customer base by some 400,000. Together with the sale of its insurance business to AXA Group, this has helped keep earnings stable despite much lower interest rates. In an environment of persistently low interest rates and at times high price volatility, 2015 was a year of two halves for the Corporates & Markets segment: the first very positive; the second more difficult. Corporates & Markets was able to make a stable earnings contribution this year, too.

The individual financial statement of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) states higher annual net income of €1,693 million for 2015. This sum takes into consideration the payment of interest on all profit-sharing rights in Commerzbank AG. The Board of Managing Directors plans to propose a dividend of 20 cents per share for the 2015 financial year and the accumulation of the remaining net profit in order to further strengthen the capital base. Detailed information about the monetary remuneration of the board members can be found in the remuneration report (pages 34 to 47). The number of employees of the Commerzbank Group as of the end of December 2015 was 51,305.

Outlook

Capital market volatility is likely to remain high in 2016, with continuing burdens from the low interest rate environment. However, despite the challenging conditions, Commerzbank is still aiming to further strengthen its market position while continuing with its rigorous cost management. For the Group, provided that there are no significant changes in economic and political conditions, and assuming that the tax rate returns to normal, Commerzbank expects a slight improvement in net profit in 2016.

Among the extensive sustainability activities of Commerzbank is a responsible approach to the use of natural resources. Against this background, beginning with the 2015 Annual Report, Commerzbank has decided to dispense entirely with the paper-based dispatch of annual reports.

The full version of the 2015 Annual Report is to be found on the internet.

*** Press contact Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets, and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of €9.8 billion with 51,300 employees.

*** 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, particularly to reduce its NCA portfolio, 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.

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In its meeting today, the Supervisory Board of Commerzbank resolved that Martin Zielke (53) will succeed Martin Blessing as Chairman of the Board of Managing Directors. It was amicably and mutually agreed, that Martin Blessing's term of office will end on 30 April 2016.

Moreover, the Supervisory Board resolved to appoint Michael Mandel and Dr Bettina Orlopp as members of the Bank's Board of Managing Directors. These decisions are still subject to regulatory approval.

Michael Mandel (49), currently Divisional Board member responsible for Private Customers, is expected to succeed Mr Zielke as the member of the Board of Managing Directors with responsibility for the Bank's Private Customers business. Michael Mandel contributed significantly to the successful turnaround of the Bank's Private Customers business over the last few years.

Bettina Orlopp (45), currently Divisional Board member for Group Development & Strategy, will be responsible, as a member of the Board of Managing Directors, for the new Board portfolio Compliance, Human Resources and Legal. The present assignment of responsibilities among the members of the Board of Managing Directors for these functions is as follows: Compliance (Stephan Engels), Human Resources (Frank Annuscheit), Legal (Martin Blessing, and Martin Zielke from 1 May 2016 onwards). With the new distribution of responsibilities amongst the members of the Board of Managing Directors the Bank responds to the significant demands placed upon Frank Annuscheit, Chief Operating Officer and Labour Director, as a result of digitalisation, together with the steady increase in the time required to deal with Compliance and Legal issues. The appointment also further underlines the importance of a strong compliance culture.

Ms Orlopp will fulfil her new duties in the capacity of Senior General Manager until her appointment to the Board of Managing Directors becomes effective. Until then, the distribution of responsibilities amongst the members of the Board of Managing Directors will remain unchanged. Successors to Michael Mandel and Bettina Orlopp in their current functions will be appointed by the Board of Management Directors in due course.

Klaus-Peter Müller, Chairman of the Supervisory Board, said: "I am delighted that Martin Zielke has been appointed as the new Chairman of Commerzbank's Board of Managing Directors. Following an intensive selection process, he was the right candidate, and he enjoys the trust of the entire Supervisory Board. Mr Zielke has a long and extensive experience in the private and corporate customer businesses, and in the finance function. He managed the turnaround of the Bank's Private Customers business in an impressive manner. I am firmly convinced that he, together with his team on the Board of Managing Directors, will continue to lead the Bank on the path towards success with sustainability. Furthermore, the Board of Managing Directors will be further strengthened with the appointments of Michael Mandel and Bettina Orlopp”.

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Having completed a banking apprenticeship at Deutsche Bank, Martin Zielke studied business administration at Göttingen University. He started his professional career with Dresdner Bank in 1990, including a sales management position in Hamburg. He joined Deutsche Bank 24 in 2000, as regional head of portfolio investment, before moving to Deutsche Hyp, as regional head of financing Retail banking. In 2002, Mr Zielke was appointed Group Manager, Retail Banking, at Commerzbank, where he successfully restructured the Bank's retail banking franchise. Three years later, he moved to the Mittelstandsbank, as Group Manager, Corporate Banking. In April 2006, he was appointed CFO of Eurohypo; he returned to Commerzbank in 2008, as Divisional Board Member for Group Finance. Mr Zielke has been a member of Commerzbank's Board of Managing Directors since November 2010, with responsibility for the Private Customers division. Under his leadership, the Bank's private customer business has been successfully restructured over recent years, and the process of change towards becoming a digital multi-channel bank was implemented.

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Curriculum Vitae Bettina Orlopp (PDF, 89 kB)

Image Bettina Orlopp (JPG, 936 kB)

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Press contacts

Richard Lips +49 69 136-22461 Simon Steiner +49 69 136-46646 Margarita Thiel +49 69 136-85483

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets, and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank, it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 millionprivate customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of EUR9.8 billion with 51,300 employees.

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 anincrease 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, particularly to reduce its NCA portfolio, the reliability of its risk management policies, procedures and methods, risks arising as a result of regulatory change and other risks. Forward- looking statements are therefore valid 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.

The crisis of the global economy and unsolved geopolitical conflicts are increasingly affecting the willingness to invest. Most decision-makers expect considerably lower stock prices, interest rates and commodity prices in 2016 compared with last year. That’s the result of a survey of around 400 participants at a Commerzbank capital markets conference in Frankfurt on Wednesday.

39% of investors regard China’s economic development as the greatest economic challenge for 2016. Investors see further risks in the ultra-loose monetary policy of the ECB (26%), in the possible bursting of economic bubbles due to the ongoing asset price inflation of real estate and equities, as well as the Fed policy and the possible Brexit (each at 7%). However, just one in five expects that Britain will vote to exit the European Union.

Faced with numerous geopolitical trouble spots, investors are less confident about the outlook for capital markets: 85% don’t believe that the DAX will rise up to 11.000 points or higher by this time next year, while at the 2015 conference 80% expected higher share prices. When it comes to crude oil prices, most investors think prices will rise within the next 12 months. But only 11% expect prices for Brent will rise above USD 60 a barrel. Last year’s survey revealed that 40% expected a price of USD 70 or more.

With regard to interest rates, 33% (2015: 27%) of conference participants believe that the yield on 10-year Bunds will be negative within the next 12 months. Just a third of the investors expect the US Federal Reserve to consequently proceed with their interest rate hikes and to raise key rates at least twice this year.

The Commerzbank Global Economy & Capital Markets Forum (GECM) is a conference for clients of Corporates & Markets, the investment banking division of Commerzbank. In addition to sessions on regulation, economics and monetary policies, the overall geopolitical environment was an important theme of the conference. Amongst the panellists taking part were the philosopher and economist Francis Fukuyama (author of the top seller “The end of history”), former NATO Secretary General Anders Fogh Rasmussen and the outgoing President of the Munich ifo institute, Hans-Werner Sinn. The GECM was held for the fourth time this year and the conference was attended by capital market professionals from more than 50 countries.

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Pressekontakt: Tim Seifert +49 69 136 81771 tim.seifert@commerzbank.com Thomas Bonk +49 69 136 22373 t.bonk@commerzbank.com

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of EUR 9.8 billion with 51,300 employees.

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Commerzbank has further improved its profitability and capital base, while simultaneously significantly reducing risks. The operating profit in the Group increased to EUR 1,909 million as of the end of 2015 (2014: EUR 689 million). In the 2015 financial year the revenues before loan loss provisions improved by EUR 1 billion year-on-year to EUR 9,762 million (2014: EUR 8,762 million). The loan loss provisions in the 2015 financial year were EUR 696 million and thus approximately 40% lower than in the previous year (2014: EUR 1,144 million). This is clear testimony to the high quality of the credit portfolio, which is also confirmed by a very low non-performing loan ratio (NPL ratio) of 1.6%. The operating expenses totalled EUR 7,157 million (2014: EUR 6,929 million). This increase is due to external factors: minus expenses for the European Bank Levy (EUR 119 million) and currency effects (EUR 85 million) the operating expenses amounted to EUR 6,953 million. Thus, the operating expenses – despite additional strategic investments such as those in digitalisation – were maintained at a stable level thanks to consistent efficiency measures. Likewise, it was possible to compensate in full for additional investments in regulatory matters and compliance, as well as a higher contribution to the Polish deposit guarantee fund. The full year net profit improved considerably to EUR 1,062 million (2014: EUR 266 million); this sum includes restructuring expenses of EUR 114 million (2014: EUR 61 million).

In the fourth quarter of 2015 the operating profitincreased to EUR 376 million, following on from minus EUR 260 million in the same quarter of the previous year. The net profit improved significantly over the fourth quarter of 2014 to EUR 187 million (Q4 2014: minus EUR 280 million). This positive development is also due to provisions for legal risks in the fourth quarter of 2014. The revenues before loan loss provisions increased year-on-year by approximately 21% to EUR 2,232 million (Q4 2014: EUR 1,848 million). In the fourth quarter the loan loss provisions decreased considerably year-on-year to a low level of EUR 112 million (Q4 2014: EUR 308 million). The operating expenses amounted to EUR 1,744 million, which corresponds to a slight downturn of 3% over the same quarter of the previous year (Q4 2014: EUR 1,800 million).

The Core Bank increased its operating profit to EUR 2,310 million (2014: EUR 1,504 million) in 2015. This positive development is also reflected in the return on equity (RoE) of the Core Bank, as well as in the return on tangible equity (RoTE). With a net RoE of 8.1% and an operating RoTE of 12.3% of the Core Bank these were significantly better compared to the same period in the previous year. In the previous year accruals for a settlement in the USA had led to charges on the revenues. The loan loss provisions decreased by 33% to EUR 330 million (2014: EUR 490 million). The operating expenses in the Core Bank were EUR 6,864 million and thus higher, at 3.7%, in a year-on-year comparison (2014: EUR 6,620 million). The credit volume was again increased in this period. Compared to the previous year the Private Customers and Mittelstandsbank segments increased their credit volumes on a yearly average by approximately 8% and approximately 4%, respectively.

“2015 has shown that our strategy is right and the implementation has been successful. For the first time in five years we have attained a net profit of more than 1 billion euros. In addition, we have further strengthened our capital base, which is at a good level compared to our competitors. The Board of Managing Directors plans to propose a dividend of 20 cents per share for the 2015 financial year,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank AG.

Risk profile improved, equity ratio increased significantly

The risk-weighted assets (RWA) with full application of Basel 3 were significantly reduced in the course of the fourth quarter of 2015, something which had a positive impact on the development of the core equity ratio. The risk-weighted assets amounted to EUR 197 billion, compared to EUR 213 billion as of the end of the third quarter of 2015. The clear decrease is due, among other things, to the continued portfolio run-down in the Non-Core Assets segment and the reduction in the RWA in the credit risk sector as a result of the application of a revised standard defined by the European Banking Authority (EBA). Both effects reduced RWA by EUR 10.5 bn. The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 increased considerably to 12.0%, compared to 9.3% as of the end of December 2014. This significant improvement is due to lower RWA and to an increase in the capital base. The CET 1 ratio already includes a dividend deferral of EUR 250 million, or 20 cents per share. The earnings per share increased significantly to EUR 0.88 (2014: EUR 0.23). The leverage ratio improved to 4.5% as of the end of the 2015 financial year, after amounting to 3.6% as of the end of 2014. The total assets were EUR 533 billion (2014: EUR 558 billion).

“In 2015 we have further reduced the risks and significantly increased the stability of Commerzbank. Our regulatory capital base has increased by approximately EUR 3.8 billion or nearly 20%. Our Common Equity Tier 1 ratio is now 12.0%,” said Stephan Engels, Chief Financial Officer of Commerzbank.

New financial architecture “Group Finance Architecture” launched

With the current financial reporting Commerzbank has launched a new financial architecture for Commerzbank AG Germany. The new “Group Finance Architecture” platform (GFA) significantly reduces complexity and provides the structural basis for future regulatory reporting. Permanent methodology changes are associated with the launch of GFA; these necessitate a one-off restatement for the preceding quarters of 2015 and for 2014. These adjustments have been adopted for the figures published today.

“With Group Finance Architecture we are able to consolidate our financial data on a single platform. This innovative architecture is one of the largest investments ever made by Commerzbank. Together with my fellow board member Frank Annuscheit and our colleagues from IT and Finance I am very pleased with the successful launch. This makes our financial architecture even better, even faster and even more secure,” said Engels.

Individual financial statement of Commerzbank AG

The provisional individual financial statement of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) states higher annual net income of EUR 1,693 million for 2015 (2014: EUR 282 million). This sum takes into consideration the payment of interest on all profit-sharing rights in Commerzbank AG. The Board of Managing Directors plans to propose a dividend of 20 cents per share for the 2015 financial year and the accumulation of the remaining net profit in order to further strengthen the capital base.

Development of the segments

In the 2015 financial year the Private Customers segment successfully continued its growth in terms of customers, assets and revenues. The operating profit increased significantly year-on-year, by 65% to EUR 751 million (2014: EUR 455 million). This includes a one-off net effect of approximately EUR 80 million which was booked in the third quarter. The revenues before loan loss provisions increased to EUR 3.7 billion (2014: EUR 3.5 billion), in particular as a consequence of the expansion of the credit business and a rise in revenues from existing customers in securities trading. The ratio of assets in premium and managed accounts increased in the fourth quarter 2015 compared to the previous year from 36% to 46%. Thus, the volatility in commission income was reduced further, as foreseen. In total, commission income was increased by more than 11% over the previous year. The loan loss provisions declined in the same period to EUR 14 million (2014: EUR 79 million). The operating expenses remained stable at EUR 2,953 million (2014: EUR 2,919 million). The number of net new customers increased in 2015 by approximately 286,000, having risen by 819,000 since the end of 2012. New business in residential mortgage loans grew by 18% year-on-year to more than EUR 12 billion. A volume increase of 27% was registered with consumer loans. In the fourth quarter of 2015 the segment virtually doubled its year-on-year operating profit to EUR 160 million (Q4 2014: EUR 81 million). The revenues before loan loss provisions amounted to EUR 894 million, higher than the level posted in the same quarter of the previous year (Q4 2014: EUR 842 million).

Mittelstandsbank attained a solid result in a challenging market environment. The operating profit declined in the 2015 financial year to EUR 1,062 million (2014: EUR 1,224 million), yet remains at a high level. The fourth quarter accounted for EUR 212 million (Q4 2014: EUR 251 million). The full year revenues before loan loss provisions declined to EUR 2.7 billion (2014: EUR 2.9 billion). This development is due in particular to the downturn in deposit transactions, which was driven by the negative level of interest rates on the market as well as the depreciation of a shareholding. Adjusted for valuation effects from counterparty risks in the derivatives business,the fourth quarter contributed revenues of EUR 679 million (Q4 2014: EUR 731 million). The loan loss provisions declined in the 2015 financial year to EUR 192 million (2014: EUR 342 million). The operating expenses increased in 2015 to EUR 1,471 million (2014: EUR 1,362 million), primarily due to higher regulatory costs and the European Bank Levy. Based on the sustained high level, the segment Mittelstandsbank generated a credit volume growth of 4% over 2014 in the 2015 financial year. It was also possible to improve the customer satisfaction among Germany’s SMEs to a very high level. In 2015 the segment also optimised its client-centric business model through a more regional and focused realignment in domestic sales.

The result in the Central & Eastern Europe segment reflects the good business development at M Bank in spite of the increasingly challenging market environment in Poland. In 2015 the segment generated an operating profit of EUR 346 million, which is only slightly lower than the result attained in the previous year (2014: EUR 364 million). The fourth quarter accounted for EUR 81 million (Q4 2014: EUR 89 million). The revenues before loan loss provisions in the segment increased in 2015 as a whole over the previous year by 2% to EUR 941 million (2014: EUR 923 million) and over the same quarter of the previous year by 12% to EUR 251 million (Q4 2014: EUR 225 million). The loan loss provisions declined in the 2015 financial year by 21% to EUR 97 million in the 2015 financial year (2014: EUR 123 million). The operating expenses increased to EUR 498 million (2014: EUR 436 million) as a consequence of contributions to the Polish deposit guarantee fund and to the “Fund for Supporting Distressed Mortgage Borrowers”. On the whole, M Bank was able to continue its operating growth in 2015, with the credit volume increasing by 7% and the deposits volume by 17% over the course of the year. It was also able to acquire around 400,000 net new customers, meaning that M Bank now has some 5 million customers in Poland, the Czech Republic, and Slovakia.

In 2015 Corporates & Markets achieved an operating profit of EUR 610 million (2014: EUR 675 million). After a strong start into the year, concerns over global growth led to a weaker second half in 2015. Adjusted for effects from the valuation of own liabilities (OCS) and counterparty risks in the derivatives business, the operating profit in the fourth quarter was EUR 80 million (Q4 2014: EUR 150 million). Adjusted revenues before loan loss provisions in 2015 were EUR 1.9 billion, virtually the same level as in the previous year (2014: EUR 2.0 billion). With revenues of EUR 595 million (2014: EUR 592 million), Equity Markets & Commodities (EMC) was the largest contributor to earnings. In Fixed Income & Currencies (FIC) the strong demand for foreign exchange products was not able to compensate for weaker client activity in interest rates and credit. Revenues in Corporate Finance decreased year-on-year due to lower fees on deposits on the back of the low interest rate environment. The loan loss provisions saw net reversals of EUR 36 million, following on from EUR 55 million in 2014. Ongoing investments in the optimisation of the back-office as part of the Centres of Competence model, the European Bank Levy and regulatory costs lead to increased operating expenses of EUR 1,426 million in 2015 (2014: EUR 1,352 million).

NCA: Further portfolio run-down – CRE and Ship Finance portfolio less than EUR 20 billion

In the 2015 financial year the Non-Core Assets (NCA) segment posted a much improved result, in both revenues as well as loan loss provisions and cost base. The operating profit improved to minus EUR 401 million over the previous year (2014: minus EUR 815 million). In this respect the fourth quarter of 2015 accounted for minus EUR 61 million (Q4 2014: minus EUR 189 million). The revenues before loan loss provisions totalled EUR 258 million, following on from EUR 148 million in the previous year. The operating expenses decreased slightly to EUR 293 million (2014: EUR 309 million).

The value-preserving portfolio run-down was successfully continued in 2015. In total, the exposure at default (EaD) was reduced by EUR 13 billion in the Commercial Real Estate (CRE) and Ship Finance areas. The EaD of the two segments at the end of the year was a mere EUR 19 billion. Thus, the objective of approximately EUR 20 billion by the end of 2016 has already been attained. As of the end of 2015 CRE accounted for approximately EUR 10.3 billion of the EaD; this corresponds to a reduction of EUR 9.7 billion or 49% over 2014. The EaD in Ship Finance was reduced by EUR 3.6 billion or approximately 30% to EUR 8.4 billion in the course of the year. The portfolios of non-performing loans at the end of the past year in both CRE and Ship Finance were only EUR 1 billion, both meaning a reduction of two-thirds year-on-year.

Commerzbank has reduced the portfolios in the NCA segment since the third quarter of 2012 from EUR 160 billion to EUR 63 billion at the end of 2015. As a result of this successful run-down, the Board of Managing Directors has decided to dissolve NCA and implement a new structure with the intention of transferring portfolios of higher quality and lower risk to the Core Bank. Approximately EUR 7 billion of the some EUR 10 billion in the portfolio of CRE will be transferred to the Core Bank segments Private Customers and Mittelstandsbank. From Ship Finance (portfolio: approximately EUR 8 billion) approximately EUR 3 billion are being transferred to Mittelstandsbank. Treasury will assume approximately EUR 36 billion of the EUR 44 billion from the Public Finance area. The remaining portions of the respective segments correspond to approximately EUR 18 billion and thus to less than 4% of group total assets. They will be bundled in the newly-created “Asset & Capital Recovery Unit” (ACR). The aim by year-end 2019 is that CRE and Ship Finance will show a combined EaD run-down to low single digit billion exposure. ACR will be endowed with a substantial capital buffer. The exact details, such as volumes and rating classes, will be communicated with the figures for the first quarter of 2016 at the latest.

Outlook

The year 2016 will be a challenging one due to the geopolitical and macroeconomic environment. However, this will not prevent the Bank from consistently implementing its strategy and aiming to further increase market shares in its Core Bank divisions. The cost base shall be kept stable except of additional external non-influenceable burdens. Commerzbank expects a moderate increase in loan loss provisions due to lower recoveries from impaired loans. From today’s perspective the Bank expects a slight increase in net profit in comparison with this year’s result.

Financial figures at a glance

Note: The financial reporting has been amended in accordance with IAS 8.

2015 figures published in this press release are preliminary and unaudited.

*** Press contact Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M Bank it owns two of the world’s most innovative online banks. With approximately 1,050 branches and more than 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts more than 16 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2015, it generated gross revenues of EUR 9.8 billion with 51,300 employees.

*** 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, particularly to reduce its NCA portfolio, 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.

Increasing digitalisation and burgeoning international activities mean that SMEs are being forced to safeguard their liquidity to an increasing degree at all times. In addition, the precise control of global payment and cash flows is gaining in significance for companies. The first study by the private university of applied sciences FH des Mittelstands (FHM) in Bielefeld on the topic of payment transactions in the SME sector reveals that merely 36 per cent of the surveyed financial officers already utilise a professional cash management system. In order to gain an overview as to whether and how efficiently SMEs practice cash management, for the first time ever FHM surveyed 239 financial officers at SMEs.

The prevalence of cash management systems, and in particular their degree of professionalization, deviate considerably according to the study. Whereas around two thirds of the financial officerswho practice cash management use a solution offered by their credit institution, approximately 22 per cent utilise their own system. 14 per cent deploy solutions from external software houses. 37 per cent of the respondents use their particular system for one company, while, in contrast, 27 per cent use it to control five or more companies. Just over half of the respondents administer five or more accounts with their cash management solution. “Cash is still the king. Which is why efficient cash management is all the more important, for it controls not only all financial flows, but also reduces transaction costs while at the same time maximising interest income from liquidity surpluses. Thus it makes an important contribution to the company’s profitability,” says Frank-Oliver Wolf, Head of Sales Germany Payment Transactions and International Business Commerzbank.

For the bulk of the respondents the low interest rate policy of the ECB has not changed their financial conduct. Only a smaller number are reacting to the effects of this policy, yet with a limited number of measures, such as the bringing forward of investments – also as a means of reducing liquidity. In this respect long-term loans are preferred as a financing instrument over leasing. The investment of short-term funds is no longer attractive in the view of the majority of the respondents.

Other findings show that in the majority of companies operational payment transactions and liquidity management are organised such that they are the responsibility of central management. Development as an independent partial area, for example as a profit centre or service centre, has not yet prevailed. With regard to cooperation with a credit institution two thirds of the respondents attach importance to a bank having an independent branch network and global networking.

“Professional cash management undoubtedly ranks among the next fundamental innovations in SME financial management. The results of the first customer-oriented cash management study are clear confirmation of this development,” says the academic head of the study, Prof. Dr. Volker Wittberg. The survey by FHM was conducted in the period from 15 September to 10 October 2015.

** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

Commerzbank Research presented its economic outlook for 2016 on Monday, predicting a German growth rate of only 1.3 per cent (2015: 1.7 percent); the same level as for the Eurozone in total. As a major exporting nation, Germany will suffer most from the economic slowdown in emerging markets, where the forthcoming rate hike by the US Federal Reserve (Fed) “will end a decade of cheap money," according to the bank’s report.

"Germany is experiencing a consumer-driven pseudo upswing. But beneath the glossy surface more and more undesirable developments shine through," Commerzbank chief economist Joerg Kraemer said on Monday. German growth will be artificially boosted by the negative interest rate policy of the European Central Bank (ECB). "The loose monetary policy will go on driving up the shares and property prices. Therefore, the ECB risks bursting a bigger financial bubble in the long term as the risks are growing every year," said Kraemer.

The ECB should take the US Federal Reserve as a role model, and gradually start indicating an exit from the zero interest rate policy. "With the recent interest rate cuts and extension of the QE programme, the ECB is sending the wrong signals,” said Commerzbank’s chief economist.

"The USA has successfully managed to get out of the financial crisis and achieve virtually full employment. The growth rate of 2.5 percent is fair and stable," said Kraemer. This allows the Fed to be the first major central bank to end the ultra-loose monetary policy and to return to a normal level of interest rates within the coming years. This will also create favourable conditions for the US dollar that could almost reach parity with the euro by the end of 2016. In fixed income markets, the advantage of 10-year US Treasuries will grow. The interest strategists at Commerzbank expect a yield of about 3 percent for the 10-year US Treasuries by the end of 2016 compared to 10-year Bunds that might return less than 1 percent.

Kraemer sees the global economy to be continuously supported by solid US growth. In contrast, China may only achieve a lower growth rate of 6.3 percent in 2016, preventing a slump in the economy, but at the price of a high level of debt and the "zombification" of numerous unprofitable state-owned enterprises. Additionally, other emerging markets may become more problematic as they have to get adapted to the rising interest rates.

According to Kraemer, the new direction taken by the US in regards to their interest rate policy will be the biggest game changer for the global economy compared to 2015. Other potential changes may come from the commodities markets. As price levels have dramatically lowered, the production of oil and base metals could no longer be profitable at many sites. Commerzbank’s commodity experts therefore expect less supply and an increase in prices, for example Brent oil prices are predicted to rise to 63 dollars by the end of 2016. "There’s an argument to expect higher inflation too," stated Kraemer.

For the German stock market, Commerzbank experts forecast rising prices. "The ECB has extended its bond purchasing programme again and thus promises ample liquidity and low interest rates for the coming years," Kraemer commented on the positive environment for equities. But the divergence between the monetary policies of the Fed and the ECB is likely to generate market volatility at one time or another. However, Commerzbank equity strategists are confident that the major German equity index Dax may rise to 12,600 points by the end of 2016, after digesting temporary setbacks down to 10,400 points that will offer an opportunity for investors to enter the market at lower prices. Fundamentally, they regard the DAX as attractive due to an average dividend yield of 2.8 percent, with 24 of the 30 DAX companies currently holding out for higher dividends.

Commerzbank Economic Research Forecasts

Growth of the real Gross Domestic Product (GDP) in percent compared to the previous year

2015 2016 2017

Germany 1.7 1.3 1.3

Eurozone 1.5 1.3 1.5

- France 1.1 1.0 1.4

- Italy 0.7 1.0 1.0

- Spain 3.2 3.0 2.7

USA 2.5 2.5 2.5

China 6.8 6.3 6.0

US-Dollar (for the euro,

*** More in the internet: www.commerzbank.com > Research

*** Media Contact: Thomas Bonk +49 69 136 22373 t.bonk@commerzbank.com

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

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Today Commerzbank announced the launch and listing of a new ETF, in partnership with BOC International, the Bank of China International (BOCI) Commerzbank – Shanghai Stock Exchange 50 A Share Index UCITS ETF and the cross listing of the Commerzbank CCBI RQFII Money Market UCITS ETF, in partnership with China Construction Bank International, both of which have been listed on the China Europe International Exchange (CEINEX).

CEINEX, a joint venture of Shanghai Stock Exchange (SSE), Deutsche Börse and China Financial Futures Exchange (CFFEX), was successfully launched today in Frankfurt.

The internationalisation of Renminbi (‘RMB’) continues to gain momentum however; options for onshore RMB investments outside of China are still limited. Commerzbank’s expertise as a leading provider of listed products in Europe and a leading ETF market maker in Europe and Hong Kong, aims to provide access to onshore RMB investments efficiently and effectively by partnering with two of the most experienced institutions in the Chinese markets.

Thomas Timmermann CEO of Asset Management at Commerzbank Corporates & Markets commented: “As the onshore Chinese markets are opening up to international investors, the market will continue to need investment solutions across a variety of asset classes. By launching these products now Commerzbank and its partners are keeping up to date with their client’s requirements”.

He added: “These ETFs provide offshore investors the opportunity to invest in the mainland Chinese securities markets, via a listed and regulated European product”.

More detail on Bank of China International (BOCI) Commerzbank – Shanghai Stock Exchange 50 A Share Index UCITS ETF:

More detail on the Commerzbank CCBI RQFII Money Market UCITS ETF:

ENDS

Press contacts: Claire Tappenden: +44 (0)20 7475 5161 Tim Seifert: +49 69 136 81771

Notes to editors

About the Bank of China (BOCI) Commerzbank SSE 50 Shares Index UCITS ETF

About the Commerzbank CCBI RQFII Money Market UCITS ETF

RFQII is the renminbi qualified foreign institutional investor scheme. Launched in December 2011 it allows a small number of Chinese financial firms to establish renminbi-denominated funds in Hong Kong for investment in the mainland. The aim being to allow overseas investors to use offshore renminbi deposits to invest in mainland securities markets.

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

About Commerzbank Asset Management Commerzbank Asset Management is part of the Corporates & Markets division of Commerzbank. It is the provider of Comstage ETFs as well as acting as a highly specialised investment service provider. It offers a full range of ETFs across asset clases through the Comstage platform and a spectrum of funds and asset management services invested in a range of asset classes worldwide. The offering is designed for both institutional and retail investors.

Its primary activities are based in Frankfurt, London and Luxembourg – where its own fund management company, Commerz Funds Solutions S.A. is based. Its flexibility, reliability and service orientation are highly valued by clients and partners alike. Client services cover four key areas: ETFs, Active Asset Management, Passive Asset Management and Private Labelling.

This communication is issued by Commerzbank AG and approved in the UK by Commerzbank AG London Branch, authorised by the German Federal Financial Supervisory Authority and the European Central Bank. Commerzbank AG London Branch is authorised and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct authority and Prudential Regulatory Authority are available on request.

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43-year-old Dr Chromik has been a Divisional Board Member and Chief Credit Risk Officer for the Core Bank since 2012. Previously, he served as Chief Market Risk Officer for Commerzbank’s Corporates & Markets segment for more than three years and was responsible for the Bank’s market and liquidity risk management. Dr Chromik, who holds a PhD in nuclear physics, started his professional career with McKinsey, in 2001. He joined Postbank Group in 2004, where he held various executive positions, including new issues and syndication, liquidity management, and Credit Treasury.

“Marcus Chromik brings extensive expertise and many years of experience to his new task. We are very happy to welcome him to the Board of Managing Directors,” said Klaus-Peter Müller, Chairman of Commerzbank’s Supervisory Board. “Marcus Chromik is a renowned expert in markets and credit risk management. We are pleased to welcome him to our team, and look forward to working together,” said Martin Blessing, Chairman of Commerzbank’s Board of Managing Directors.

Marcus Chromik will succeed Stefan Schmittmann who, as already announced in September 2015, wants to now focus on providing strategic advice, having spent more than 30 years in banking operations.

Marcus Chromik is married, with two children. Born in Kiel, he studied in Munich, Göttingen, and Kiel; he also spent time in the US, engaged in scientific research in Michigan.

***

Press contact Simon Steiner +49 69 136-46646 Karsten Swoboda +49 69 136-22339

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets, and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

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In the first nine months of 2015, Commerzbank significantly improved the net profit compared to the previous year and further increased the CET 1 ratio. The operating profit in the Group in this period was improved to EUR 1,499 million (first nine months of 2014: EUR 924 million). In the third quarter of 2015, the operating profit increased to EUR 429 million (Q3 2014: EUR 343 million). The revenues before loan loss provisions in the Group were raised to EUR 7.5 billion (first nine months of 2014: EUR 6.9 billion). The third quarter of 2015 contributed a total of EUR 2.3 billion to this sum (Q3 2014: EUR 2.4 billion). The loan loss provisions decreased in the first nine months of 2015 to EUR 584 million (first nine months of 2014: EUR 836 million). In the third quarter of 2015, they were EUR 146 million (Q3 2014: EUR 341 million). The ongoing low level is based on the high quality of the credit book and on the ongoing robust state of the German economy. Moreover, the continued portfolio run-down in the NCA segment has proved beneficial in this respect. In the first nine months of 2015, the operating expenses including the Bank Levy were EUR 5,426 million. Of this amount, EUR 1,734 million were accounted for by the third quarter of 2015 (Q3 2014: EUR 1,722 million).

The pre-tax profit increased in the first nine months of 2015 to EUR 1,405 million (first nine months of 2014: EUR 924 million). In the third quarter, the pre-tax profit improved to EUR 401 million (Q3 2014: EUR 343 million). This includes restructuring expenses of EUR 28 million for the optimisation of back office units in Germany and New York in the framework of the Centre of Competence approach.

All in all, the net profit increased to EUR 853 million in the first nine months of 2015 versus the same period of the previous year, amounting to EUR 207 million in the third quarter of 2015 (first nine months of 2014: EUR 525 million; Q3 2014: EUR 225 million).

Capital ratio again improved – further dividend accrual

The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 rose to 10.8% as of the end of September 2015 (end of June 2015: 10.5%). This includes a dividend accrual for the first nine months of 2015 to the amount of approximately EUR 250 million or 20 cents per share. From the current stance, this is the amount that the Board of Managing Directors will propose to the Supervisory Board for the full 2015 business year. Despite this dividend accrual and excluding the capital increase performed in April 2015, the Bank has already attained the CET 1 ratio target of more than 10% set for the end of 2016.

The leverage ratio improved as of the end of the third quarter of 2015 to 4.1%, following on from 4.0% as of the end of June 2015. The risk-weighted assets (RWA) with full application of Basel 3 remained stable in the same period at EUR 213.5 billion as of the end of September 2015 (end of June 2015: EUR 214.4 billion). The total assets in the Group amounted to EUR 564 billion as of the end of September 2015 (end of June 2015: EUR 561 billion).

“In the first nine months, we have further increased the revenues and the profit, while also significantly strengthening the capital ratio. We were again able to improve the risk profile of the Bank thanks to further run-down of the NCA portfolios. This shows that our client-centric business model is paying off, and the successful turnaround at Commerzbank is right on track. This is also reflected in the return on equity for the first nine months at the Core Bank, which was considerably above the previous year’s figure,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank. Blessing added: “From today’s stance, the Board of Managing Directors plans to propose a dividend of 20 cents per share for the 2015 financial year”.

Core Bank: operating profit increased in first nine months compared to the previous year

The Core Bankincreased the operating profit substantially in the first nine months of 2015 compared to the previous year to EUR 1,828 million (first nine months of 2014: EUR 1,535 million). In the third quarter, an operating profit of EUR 416 million was attained (Q3 2014: EUR 595 million). The positive development at the Core Bank in the first nine months is also reflected in the return on equity (RoE), as well as in the return on tangible equity (RoTE). The operating RoE of 11.3% and an operating RoTE of 13.2% in the first nine months were at a good level and were higher than in the same period of the previous year – despite considerably higher capital resources. The revenues in the Core Bank rose in the first nine months of 2015, by 6.5% to EUR 7,275 million, over the same period in 2014 (EUR 6,830 million). The loan loss provisions in the Core Bank declined in the first nine months to EUR 271 million (first nine months of 2014: EUR 387 million). The operating expenses in the same period were EUR 5,176 million (first nine months of 2014: EUR 4,908 million). Of this sum, EUR 137 million was accounted for by the European Bank Levy. In addition, compared to the previous year, there were higher expenses for strategic investments in digitisation and for regulatory issues.

Positive developments on the whole in the first nine months for the Core Bank segments

In the Private Customers segment an improved operating result and higher revenues underline the successful turnaround. In the first nine months of 2015, the operating profit increased significantly to EUR 562 million (first nine months of 2014: EUR 346 million). In the third quarter alone, an operating profit of EUR 230 million (Q3 2014: EUR 120 million) was generated. This includes a positive one-off net effect of EUR 81 million from a special dividend paid by EURO Kartensysteme GmbH and higher net additional provisions for litigation and recourses. In the first nine months of 2015, the revenues before loan loss provisions improved by 8.3% to EUR 2,796 million despite the ongoing burdens posed by the low interest rate environment (first nine months of 2014: EUR 2,582 million). The loan loss provisions in the first nine months of 2015 were, at EUR 39 million, still at a low level (first nine months of 2014: EUR 68 million). The operating expenses in the same period amounted to EUR 2,195 million (first nine months of 2014: EUR 2,168 million). The reason for the positive development in the results was, above all, the ongoing growth of the segment. The mortgage loan business developed positively with new business volume of more than EUR 9 billion in the first nine months of 2015. The credit volume also saw significant year-on-year growth of 8% in the third quarter. Moreover, the Private Customers segment acquired 87,000 net new customers in the third quarter. Thus, since the end of 2012, total growth has amounted to 753,000 net new customers.

The operating profit at the Mittelstandsbank declined in the first nine months of 2015 compared to the previous year to EUR 851 million (first nine months of 2014: EUR 973 million). Of this sum, EUR 216 million was accounted for by the third quarter of 2015 (Q3 2014: EUR 365 million). With a virtually stable operational customer business, the downturn in the first nine months was especially due to a write-down on a shareholding in a technology provider. The revenues before loan loss provisions declined in the first nine months by 6.4% to EUR 2,064 million due to valuation effects (first nine months of 2014: EUR 2,206 million), while the loan loss provisions decreased to EUR 119 million (first nine months of 2014: EUR 236 million). At the same time, the interest income from loans and the commission income, particularly from currency hedging transactions, were increased. However, these were not able to fully compensate especially for the downturn in deposits revenues, which was driven, above all, by the low interest rate environment. The credit volume in the first nine months of 2015 increased by 5% versus the same period of the previous year. The operating expenses rose to EUR 1,094 million over the first nine months of 2014 (first nine months of 2014: EUR 997 million), primarily as a result of the European Bank Levy and higher regulatory costs.

In the first nine months of 2015, the Central & Eastern Europe segment attained an operating profit of EUR 273 million, which is approximately the level seen in the previous year (first nine months of 2014: EUR 275 million). In this respect, the third quarter of 2015 contributed EUR 93 million (Q3 2014: EUR 93 million). At EUR 690 million, the revenues before loan loss provisions in the first nine months of 2015 were slightly lower compared to the previous year (first nine months of 2014: EUR 698 million). In the first nine months of 2015, the revenues included the positive special effect of approximately EUR 46 million from the sale of the insurance business of mBank. In contrast, there was a downturn in the interest and commission income. The growth in credit and deposit volumes was not able to compensate in full for the negative effects of the lower interest rate levels on the interest income in Poland or the statutory reductions in fees in the card business. The uncertainty in Poland regarding possible legislative initiatives on the conversion of foreign currency loans and a bank levy will still be felt in the coming quarters. The loan loss provisions declined versus the same period of the previous year to EUR 75 million in the first nine months of 2015 (first nine months of 2014: EUR 96 million). The operating expenses increased in the same period as a consequence of higher regulatory costs and of further investments to secure the organic growth of mBank to EUR 342 million (first nine months of 2014: EUR 327 million).

In the Corporates & Markets segment the operating profit in the first nine months of 2015, excluding valuation effects from own liabilities (OCS) and counterparty risk in the derivatives business, declined to EUR 430 million (first nine months of 2014: EUR 543 million). After a very good first half in 2015 the third quarter suffered under challenging market conditions, high levels of volatility, and lower client demand amid concerns over global growth. In the third quarter of 2015 the operating profit, adjusted for the valuation of own liabilities (OCS) and counterparty risks in the derivatives business, amounted to EUR 32 million, following on from EUR 148 million in the same period of the previous year. The revenues before loan loss provisions increased in the first nine months of 2015 to EUR 1,614 million (first nine months of 2014: EUR 1,529 million); in the same period the loan loss provisions saw net reversals of EUR 25 million, following net reversals of EUR 14 million in the same period of the previous year. The operating expenses increased in the first nine months of 2015 to EUR 1,076 million (first nine months of 2014: EUR 987 million), in particular due to the European Bank Levy which was booked in the first quarter of 2015.

NCA: further portfolio run-down – Ship Finance portfolio lower than EUR 10 billion for first time

In the first nine months of 2015, the operating profit in the Non-Core Assets (NCA) segment amounted to minus EUR 329 million (first nine months of 2014: minus EUR 611 million). In particular, the operating profit in the third quarter of 2015 of EUR 13 million (Q3 2014: minus EUR 252 million) contributed to the clear reduction in the loss. The revenues before loan loss provisions in the first nine months of 2015 amounted to EUR 234 million (first nine months of 2014: EUR 77 million), which was due above all to valuation effects. In the same period, the loan loss provisions declined as a consequence of the ongoing portfolio reduction to EUR 313 million (first nine months of 2014: EUR 449 million). The operating expenses amounted to EUR 250 million in the first nine months (first nine months of 2014: EUR 239 million). The increase results from the first-ever booking of the European Bank Levy to the amount of EUR 28 million.

The value-preserving portfolio run-down was also successfully continued by the Bank in the third quarter: The Exposure at Default (EaD) was reduced over the second quarter of 2015 in the areas of Commercial Real Estate (CRE) and Ship Finance by EUR 5.1 billion. Therefore, the EaD in the two areas at the end of September 2015 amounted to a mere EUR 22 billion (second quarter of 2015: EUR 27 billion; Q3 2014: EUR 36 billion) and was thus only EUR 2 billion higher than the target for the end of 2016. In the CRE area the run-down over the previous quarter was EUR 4.0 billion, with EUR 2.9 billion thereof accounted for by the sale of two portfolios of commercial real estate loans, which had already been communicated in July. The EaD in the CRE area was thus EUR 12.5 billion at the end of September 2015 (second quarter of 2015: EUR 16.5 billion). In the Ship Finance area the portfolio was reduced by EUR 1.1 billion to EUR 9.7 billion (second quarter of 2015: EUR 10.8 billion).

Outlook

“We intend to continue the sustainable growth path of the Core Bank through the rest of the year, and thus continue to aspire to an increase in revenues and market shares. Despite the dividend accrual that we have made, we have further increased our CET 1 equity ratio to 10.8%. We assume that this ratio will at the very least remain stable in the fourth quarter,” said Stephan Engels, Chief Financial Officer of Commerzbank. With a view to the loan loss provisions, the Bank expects these to remain below EUR 0.9 billion for the 2015 financial year – with lower loan loss provisions in both NCA and in the Core Bank. The operating expenses – without taking into account the European Bank Levy– are expected to be slightly higher than EUR 7 billion for the year as a whole.

***

Excerpt from the consolidated profit and loss statement

*** Press contact Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets, and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

*** 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, particularly to reduce its NCA portfolio, 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.

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With deep regret, Supervisory Board Chairman Klaus-Peter Müller has acknowledged this decision, expressing his respect as well as his high appreciation for the success that Martin Blessing has achieved. Müller will deliberate with the nomination committee of the Supervisory Board and define a process for finding a successor.

Explaining the reasons behind his decision, Martin Blessing said:

"I was delighted to be offered a contract extension and am honoured by the trust placed in me. For this, I am truly grateful. Nevertheless, after long and intensive consideration, I decided not to accept the offer. This was not an easy decision, as I am very fond of both the bank and my colleagues. After 15 years on the Board of Managing Directors of Commerzbank, half of which as Chairman, it is now time for me to embark on a new chapter in my professional life. I believe that 2016 is a good point in time for someone else to take over at the helm of the bank. Today, Commerzbank has a robust business model, excellent employees and managers, as well as a culture that is the envy of many companies. We have overcome the major challenges of the financial crisis or will do so in the coming months. We are also clearly on track to reclaiming our position as a sustainably successful bank."

Chairman of the Supervisory Board of Commerzbank Klaus-Peter Müller said:

"I deeply regret this decision and was hopeful that we could extend the contract. However, I respect Martin Blessing´s decision and greatly appreciate the success he has achieved as well as his commitment to continue to support the bank in a dedicated manner for the rest of his term. This allows us to organize a coordinated process for the nomination of a successor. We are truly grateful for his continued support”.

** Press contact Richard Lips +49 69 136-22461 Simon Steiner +49 69 136-46646

** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittel¬standsbank, Corporates & Markets, and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

Commerzbank has been given the official go-ahead by the Brazilian Central Bank (BACEN) to set up a subsidiary in São Paulo. It is now expected that business operations for the target group of small and medium-sized enterprises as well as major and capital market companies will be launched in the first quarter of 2016. “Even though the growth momentum in Brazil has slowed recently, the country still remains the seventh largest economy in the world and is by far the most important economy in Latin America and thus a major economic partner for Germany and Europe. Even in times of volatile markets, it is important for our Mittelstandsbank, the market leader in Germany for SMEs, to have a local presence to support our customers outside Germany,” says Bernd Laber, Divisional Board Member International of the Corporate Banking segment (“Mittelstandsbank”).

Harald Lipkau will take on the position of General Manager of Commerzbank in Brazil. A native of Brazil, he started his career in his home country and, after progressing through various positions, was most recently responsible within Commerzbank for financial institutions in Asia.

Around 1,400 German companies are currently represented in Brazil, of which approximately 900 are located in the metropolitan area of São Paulo. The majority of these companies are already customers of Commerzbank in Germany. It is now planned to serve their local units through the new Commerzbank subsidiary in São Paulo. A total of around 50 staff will be available locally for these customers.

Commerzbank plans to offer its comprehensive range of corporate and investment banking services in Brazil. Commerzbank will serve European companies operating in Brazil, and also provide support for international companies aiming to do business in Europe.

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets, and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost €9 billion with an average of approximately 52,000 employees.

***

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, particularly to reduce its NCA portfolio, 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.

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Over the past few years there has been a huge rise in multi-asset funds, with the number of these investment products increasing more than sixfold between 2000 and 2014 in Germany alone. Commerzbank is now responding to the growing demand for these funds with the new “Commerzbank Multi Asset Strategy Fund”, to which investors will be able to subscribe from 1 September 2015. The new fund allows Commerzbank to combine for the first time a multi-asset approach with three loosely correlated investment strategies. The fund may invest in global equities, bonds, alternative investments and money market products. At the same time, the investment strategies comprise two quantitative models and a discretionary approach. Firstly, the strategies identify those asset classes which have shown a particularly positive performance over a trend of several months (momentum strategy). Secondly, historical patterns or calendar anomalies are taken into account (seasonality strategy). Equities, for example, often display an above-average performance at the start of the year as a result of high inflows of funds or pronounced economic optimism. Thirdly, individual stocks are selected by the Corporates & Markets asset management team on the basis of a discretionary approach. The findings of Commerzbank's independent and multiple award-winning multi asset research team enable the fund managers to respond early, thereby actively managing the investment ratio in the individual asset classes. According to the Extel survey 2015, Commerzbank's multi asset research team ranks among the world's best in this area. All told, the equity ratio of the fund can range between 10 and 65 percent. Additional income can be generated with a higher equity ratio; conversely, falling equity prices may have a negative effect.

About the “Commerzbank Multi Asset Strategy Fund” Managing company: Commerz Funds Solutions S.A. Fund manager: Commerzbank AG Asset class: R WKN (securities identification code): CDF2MA Flat fee: 1.45% Offering premium: up to 5% Subscription period: 1 September 2015 to 1 October 2015

The prospectus, Key Investor Information Documents, the company's articles of association and annual and semi-annual reports are available free of charge in German from the company and the institutions mentioned below in paper format and in electronic format at www.am.commerzbank.com.

***

Press contact Tim Seifert, +49 69 136 81771, tim.seifert@commerzbank.com

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

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Commerzbank improved its operating profit in the first half of 2015 compared to the previous year by more than 80% to more than EUR 1 billion and increased the capital ratios to a comfortable level for the business model of Commerzbank. The operating profit in the Group in this period amounted to EUR 1,070 million (first half of 2014: EUR 581 million). In the second quarter of 2015, the operating profit improved substantially to EUR 385 million (Q2 2014: EUR 257 million). The revenues before loan loss provisions in the Group also increased considerably in the first half of 2015, to EUR 5.2 billion (first half of 2014: EUR 4.5 billion). In total, the second quarter of 2015 contributed EUR 2.4 billion to this result (Q2 2014: EUR 2.2 billion). The loan loss provisions in the second quarter of 2015 were EUR 280 million (Q2 2014: EUR 257 million). The ongoing low level is based on the high quality of the loan book and on the ongoing good state of the German economy. In the second quarter of 2015 the operating expenses amounted to EUR 1,753 million (Q2 2014: EUR 1,727 million). There were higher expenses for strategic investments in digitalisation, as well as for regulatory issues and compliance. The development of costs was also impacted by foreign exchange effects as a consequence of the weaker euro. All in all, year-on-year, the net profit soared to EUR 280 million in the second quarter and to EUR 646 million in the first half of 2015 (Q2 2014: EUR 100 million; first half of 2014: EUR 300 million).

Capital ratio improves to comfortable level – further dividend accrual

The Common Equity Tier 1 ratio (CET 1) with full application of Basel 3 rose to 10.5% as of the end of June 2015 (end of March 2015: 9.5%). Thus, it reached a comfortable level for the business model of Commerzbank. The ratio of 10.5% takes into account a dividend accrual for the first half of 2015 of EUR 125 million or 10 cents per share. The leverage ratio likewise improved as of the end of the second quarter of 2015 to 4.0%, following on from 3.7% as of the end of March 2015. The risk-weighted assets (RWA) with full application of Basel 3 declined slightly over the end of March 2015 to EUR 214.4 billion as of the end of June 2015 (end of March 2015: EUR 221.5 billion). The total assets in the Group amounted to EUR 561 billion as of the end of June 2015 (end of March 2015: EUR 605 billion).

Core Bank: operating profit improved substantially year-on-year

In the Core Bank, the operating profit was substantially increased year-on-year both in the second quarter of 2015 and in the first half of 2015. In the second quarter, an operating profit of EUR 641 million was attained (Q2 2014: EUR 442 million), with the effect that the Core Bank improved its operating profit considerably in the first half of 2015 to EUR 1,412 million (first half of 2014: EUR 940 million). This positive development is also shown in the operating return on equity (RoE) at the Core Bank, as well as in the operating return on tangible equity less intangible assets (RoTE). In the Core Bank, these were at a good level in the second quarter of 2015 with an operating RoE of 11.7% and an operating RoTE of 13.6% – despite considerably higher capital resources. The revenues in the Core Bank rose in the first half of 2015 by approximately 14%, to EUR 5,122 million, over the first half of 2014 (EUR 4,500 million). All segments across the Core Bank improved compared to the first half of 2014. The loan loss provisions in the Core Bank increased as expected compared to the same quarter of the previous year. However, at EUR 138 million in the second quarter of 2015, they remained at a low level (Q2 2014: EUR 193 million). In the second quarter, the operating expenses were at EUR 1,677 million (Q2 2014: EUR 1,646 million), and in the first half of 2015 at EUR 3,511 million, up from EUR 3,263 million in the first half of 2014. The increase is due, among other things, to higher expenses for strategic investments in digitalisation and for regulatory issues.

“In the first half of 2015, we increased the operating profit in the Group substantially year-on-year to more than EUR 1 billion. This is further testimony to the successful turnaround achieved by the Bank. We are on the right course with the strategic positioning. This is also shown in the return on equity for the first half of 2015, which, despite higher capital resources, increased considerably over the previous year,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank.

Revenues increased in all Core Bank segments in first half of 2015

An improved operating profit and higher revenue levels speak for the successful turnaround of the Private Customers segment. In the first half of 2015, the operating profit amounted to EUR 332 million. This is 46% more than in the previous year (first half of 2014: EUR 227 million). An operating profit of EUR 171 million (Q2 2014: EUR 116 million) was attained in the second quarter alone. In the first half of 2015 the revenues before loan loss provisions rose by nearly 6% to EUR 1,829 million (first half of 2014: EUR 1,719 million) despite the ongoing burdens posed by the low interest rate environment. In particular the mortgage financing business continued to grow and for the first time ever the volume of new business exceeded the EUR 3.5 billion level in a quarter. In the second quarter of 2015, the credit business in the branch bank posted significant growth of approximately 8% over the same period of the previous year. Furthermore, the positive development in results is supported by further growth of the segment: 68,000 net new customers chose Commerzbank in the second quarter, meaning that net new customer growth has totalled 666,000 since the end of 2012. The loan loss provisions – at EUR 34 million – remained at a low level in the first half of 2015 (first half of 2014: EUR 52 million). The operating expenses amounted to EUR 1,463 million in the first half of 2015 (first half of 2014: EUR 1,440 million).

Mittelstandsbank increased its operating profit year-on-year in the first half of 2015 by approximately 5% to EUR 636 million (first half of 2014: EUR 608 million). Hereof, EUR 294 million were booked in the second quarter of 2015, which corresponds to an increase of 9% for the quarter (Q2 2014: EUR 269 million). The increase in the first half was mainly due to lower loan loss provisions compared to the previous year. The revenues before loan loss provisions at EUR 1,465 million remained stable compared to the same period of the previous year (first half of 2014: EUR 1,461 million), while loan loss provisions of EUR 92 million (first half of 2014: EUR 200 million) decreased considerably. It was possible to compensate for the market environment-driven downturn in deposits revenues through an increase in the interest income from loans and in the commission income, above all from foreign exchange hedging transactions. At the same time, the loan volume in the first half of 2015 increased by 7% year-on-year. The operating expenses rose over the first half of 2014 and amounted to EUR 737 million (first half of 2014: EUR 653 million), which was due, among other things, to the European Bank Levy booked in the first half of 2015.

In the first half of 2015, the Central & Eastern Europe segment attained an operating profit of EUR 180 million, which approximates the level seen in the previous year (first half of 2014: EUR 182 million). In this respect, the second quarter of 2015 contributed EUR 64 million (Q2 2014: EUR 84 million); this sum reflects the ongoing low level of interest rates. The revenues before loan loss provisions in the first half of 2015 were slightly higher year-on-year (first half of 2015: EUR 462 million; first half of 2014: EUR 457 million). In the first half of 2015 the revenues included the one-off effect of approximately EUR 46 million from the sale of the insurance business of mBank. In contrast, there was a downturn in the interest and commission income. Clear growth in loan and deposit volumes was not able to compensate in full for the effects of the lower interest rate levels on the interest income in Poland. To date some 150,000 new customers have been won from the partnership with Orange. Year-on-year the loan loss provisions decreased in the first half of 2015 to EUR 47 million (first half of 2014: EUR 59 million). The operating expenses increased to EUR 235 million in the first half of 2015 (first half of 2014: EUR 216 million), which was primarily due to increased regulatory expenses as well as further investment to secure the innovation leadership of mBank.

Corporates & Markets had a good performance in the first half of 2015. The operating profit, excluding valuation effects from own liabilities (OCS) and counterparty risk in the derivatives business was at EUR 398 million (first half of 2014: EUR 396 million) of which EUR 144 million corresponded to the second quarter of 2015 (Q2 2014: EUR 194 million). Revenues before loan loss provisions remained solid, with the first half of 2015 at EUR 1,198 million (first half of 2014: EUR 1,045 million), of which EUR 531 million were attributable to the second quarter of 2015 (Q2 2014: EUR 504 million). Equity Markets & Commodities (EMC) contributed a strong result, with its best quarter in five years driven by high demand for investment and liability management solutions. Within Corporate Finance, Equity Capital Markets (ECM) had a good quarter. The performance of Fixed Income & Currencies (FIC) division was in line with the market, which was burdened by reduced market liquidity and the low interest rate environment. Loan loss provisions in the second quarter were at EUR 11 million, following net releases in the first quarter of 2015. Overall, the segment had net loan loss provisions releases of EUR 36 million for the first half of 2015 (first half of 2014: net releases of EUR 14 million). Operating expenses amounted to EUR 748 million in the first half of 2015 (first half of 2014: EUR 659 million), also due to the European Bank Levy booked in the first quarter of 2015.

NCA with further portfolio run-down in the CRE and Ship Finance segments

The operating profit in the Non-Core Assets (NCA) segment was minus EUR 342 million in the first half of 2015 (first half of 2014: minus EUR 359 million); in the second quarter of 2015, it totalled minus EUR 256 million (Q2 2014: minus EUR 185 million). Revenues before loan loss provisions amounted to EUR 78 million in the first half of 2015 and minus EUR 38 million in the second quarter of 2015 (first half of 2014: EUR 1 million; Q2 2014: minus EUR 40 million). The loan loss provisions increased in the second quarter of 2015 to EUR 142 million (Q2 2014: EUR 64 million). The operating expenses added up to EUR 181 million in the first half, of which EUR 76 million were incurred in the second quarter of 2015 (first half of 2014: EUR 162 million; Q2 2014: EUR 81 million).

The Bank maintained its speed with the portfolio run-down in the second quarter: the Exposure at Default (EaD) was reduced by EUR 3 billion over the first quarter of 2015 in the Commercial Real Estate (CRE) and Ship Finance divisions. As of the end of June 2015, the EaD was EUR 27 billion (first quarter of 2015: EUR 30 billion; Q2 2014: EUR 37 billion). EUR 1.0 billion was reduced in the CRE division, with the effect that as of the end of June 2015 there was an exposure of EUR 16.5 billion (first quarter of 2015: EUR 17.5 billion). In the Ship Finance division, the portfolio was run down by EUR 1.8 billion; this figure includes a foreign exchange effect of EUR 0.4 billion. In the second quarter of 2015 the portfolio totalled EUR 10.8 billion (first quarter of 2015: EUR 12.6 billion). The sale of two portfolios of commercial real estate loans with a total volume of EUR 2.9 billion, which was communicated at the beginning of July 2015, will become visible in the third quarter of 2015. Likewise, in July 2015, the sale of the ship restructuring platform Hanseatic Ship Asset Management (HSAM) for a price of approximately EUR 233 million was agreed. The charges from both transactions totalling EUR 98 million were already booked in the income statement in the second quarter of 2015.

Outlook

“In the second half of the year we intend to continue the Core Bank’s sustainable growth path. In the 2015 financial year we are, therefore, still aiming to grow the revenues and market shares. With a view to our business model, our CET 1 capital ratio is comfortable. The framework conditions for the banking sector are difficult and will remain so in the foreseeable future. For this reason we continue to consistently pursue our objective of becoming leaner, more efficient and more customer-centric,” said Stephan Engels, Chief Financial Officer of Commerzbank.

With a view to the loan loss provisions, the Bank expects these to remain below EUR 1 billion for the 2015 financial year – with lower loan loss provisions in both NCA and in the Core Bank. Despite the consistent implementation of the efficiency programmes, the cost pressure remains high. Commerzbank still plans to pay a dividend for the 2015 financial year.

Excerpt from the consolidated profit and loss statement

*** From approximately 7 am onwards you can find broadcast-ready video and audio material with statements by Chief Financial Officer Stephan Engels at http://mediathek.commerzbank.de/.

You can download the video directly via mobile end devices: http://mediathek.commerzbank.de/q2de/.

*** Press contact Alexander Cordes +49 69 136-42764 Karsten Swoboda +49 69 136-22339 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

*** 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, particularly to reduce its NCA portfolio, 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.

Commerzbank signed an agreement on the sale of its ship restructuring platform HSAM GmbH (Hanseatic Ship Asset Management GmbH), which was founded in May 2013, to a joint venture company of KKR Special Situations Group from Kohlberg Kravis Roberts & Co. L.P. (USA) and Borealis Maritime Ltd. (UK). The proceeds from the sale amount to approximately 255 million USD (approx. € 233 million). It was agreed that confidentiality be maintained on further contractual details. The transaction is still subject to the approval of the relevant authorities.

“In a favourable market environment we were able to divest HSAM GmbH earlier than expected. Thus, we are continuing our consistent path of value-preserving run-down,” said Stefan Otto, Divisional Board Member NCA Deutsche Schiffsbank.

HSAM GmbH was a wholly-owned subsidiary of Commerzbank Inlandsbanken Holding GmbH. The objective of the internal restructuring platform was to take over individual ships with potential from existing, non-performing credit relationships. Most recently, the portfolio of HSAM GmbH consisted of 18 ships, comprising 13 container ships and 5 bulk carriers.

The sale of HSAM improves the risk profile in the NCA segment and contributes to substantial value retention, which was made possible by operating the ships on the internal platform. The transaction will burden the second quarter result of the NCA segment with about €40 million. Due to a release of risk-weighted assets (RWA) in the third quarter of 2015, the overall net capital effect is more or less neutral.

*** Press contact Martin Halusa +49 69 136-85331

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

*** 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, particularly to reduce its NCA portfolio, 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.

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Commerzbank has reached agreements with investors on the sale of two commercial real estate (CRE) portfolios. Accordingly a European portfolio with a face value of EUR 2.2 billion has been sold to a consortium comprising JP Morgan and Lone Star, and a German portfolio with a face value of approximately EUR 0.7 billion to the investor Oaktree. The portfolios sold account for approximately 17% of the total of commercial real estate loans of EUR 17.5 billion still held in the Non-Core Asset (NCA) segment as of the end of March 2015. Confidentiality was agreed on the further details of the agreements.

The German portfolio of commercial real estate loans sold primarily comprises non-performing loans. As a result of the sale the domestic CRE black book is being reduced by approximately 40%.

The European portfolio encompasses the countries, Austria, Belgium, Czech Republic, Cyprus, Denmark, Finland, Hungary, Luxembourg, Netherlands, Rumania, Sweden, Switzerland, Slovakia and Turkey. The portfolio contains non-performing loans as well as other loans. The complexity in the NCA-CRE unit could be reduced considerably as a result of the sale.

The bank expects that the result in the second quarter of 2015 will see charges of approximately EUR 65 million and in the third quarter of EUR 20 million as a consequence of the sale. Due to the release of risk-weighted assets (RWA) of EUR 1.9 billion the transactions lead to a positive net capital effect of approximately 105 million euros. In total the sales have a positive impact on the core capital position of Commerzbank. In the future Commerzbank also intends to further reduce its portfolios in Commercial Real Estate and in Ship Finance in a value-preserving way. The Exposure at Default (EaD) of the CRE and Ships Finance units as of the end of March 2015 was EUR 30 billion.

Accordingly, the risk profile of the CRE loans portfolio has improved considerably with the two most recent transactions. In addition, the volume of CRE non-performing loans is being reduced by approximately EUR 1.3 billion as a result of the transactions (portfolio as of end of March 2015: EUR 3.0 bn).

“Both transactions show that we are continuing to press ahead with our value-preserving run-down, and that we are significantly reducing both risk and complexity,” said Sascha Klaus, Divisional Board Member Non-Core Assets Commercial Real Estate. “In this respect we are taking advantage of market opportunities, in order to achieve best possible results through competitive bidding procedures”.

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Martin Halusa +49 69 136-85331

Thomas Kleyboldt +49 40 368-32190

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

***

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, particularly to reduce its NCA portfolio, 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.

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In the leading survey amongst professionals in the European stock markets, Commerzbank has defended its top position in equity research and services for Germany. At this year's Extel survey, the Bank is No. 1 in four Germany categories. According to the survey, which generated a record participation of over 18,000 professionals across Europe, five of the top ten equity analysts for Germany work for Corporates & Markets (C&M), the investment banking arm of Commerzbank.

Christoph Dolleschal, Head of Equity Research at Commerzbank, said on Tuesday in Frankfurt: "Our focus on the international distribution of German stocks is paying off as shown once more by outstanding Extel results for our research and brokerage." He added: "Investors value the expertise and close relationship of Commerzbank to large corporates and medium-sized businesses."

Extel awarded Commerzbank’s equity research for the eighth consecutive year as the No. 1 in the top category "Germany: Country Research". Achim Matzke, Head of Technical Analysis & Index Research, again leads the ranks of the best individual equity analysts for Germany, followed by his in-house fellows Andreas Huerkamp, placed No. 2, and Petra von Kerssenbrock, placed No. 3. In the top 10 of the individual rankings on Germany, there are two more C&M analysts.

In equities service for Germany, C&M defended for the fourth consecutive year the first place as "Germany- Leading Brokerage Firm" according to the Extel Survey 2015. This was underpinned by the 1st ranks in the categories "Germany: Small & Mid Caps Research" and "Germany: Small & Mid Caps Sales" as well as top 5 rankings in "Germany: Company & Expert Meetings", "Germany: Equity Sales" and "Germany: Trading/ Execution".

In the pan-European Extel evaluation, "Multi Asset Research" and its director Bernd Meyer came in again among the top three. Moreover, Commerzbank finished third in the categories “Equity Technical Analysis & Charting“ as well as ”Index Analysis“, supported by No. 1 positions for Achim Matzke and No. 3 positions for Petra von Kerssenbrock.

*** Pressekontakt: Thomas Bonk +49 69 136 22373 t.bonk@commerzbank.com

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

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June 09, 2015

Commerzbank holds top spot for equity research and service in Germany

For eight years in a row the leading Germany Country Research in equities

Four times No. 1 in Germany categories

in-house fellows Andreas Huerkamp, placed No. 2, and Petra von Kerssenbrock, placed No. 3. In the top 10 of the individual rankings on Germany, there are two more C&M analysts.

***

Pressekontakt:

Thomas Bonk +49 69 136 22373 t.bonk@commerzbank.com

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

Download Press Release (PDF, 66 kB)

Small- and medium-sized enterprises in Germany have recognised the potential of digitalisation: a broad majority of 86 per cent of entrepreneurs and managers regard increasing digitalisation as a “major opportunity” for Germany as an industrial location. At least 48 per cent of the companies expect to see substantial growth in the next five years. One in six of all companies in Germany already rank among the digital forerunners. “These are companies which are already successfully focusing to an above-average degree on new digitisation trends so as, for example, to network value-added chains or to individualise their products. These forerunners are to be found in all sectors of industry and irrespectively of the size of the company or the age of their managers,” explained Markus Beumer, a member of the Board of Managing Directors of Commerzbank and responsible for its Mittelstand business, today at the presentation of the study “Management in transition: More digital, more efficient, more flexible!” For this study TNS Infratest was commissioned by the initiative “Entrepreneur Perspectives” with surveying first-level executives in 4,000 SMEs throughout Germany. The results were presented by Beumer together with the patron for the study, Dr. Stefan Groß-Selbeck, a former CEO of XING AG and now a partner and managing director of the Berlin office of BCG Digital Ventures.

Evolution instead of revolution with digitalisation in SMEs

The majority of companies have recognised the opportunities presented by digitalisation, yet are somewhat reticent: 63 per cent of those surveyed admit quite self-critically that the Mittelstand is to some extent neglecting the topic of digitalisation at present. Two thirds of the respondents are, by their own admission, active in markets which are characterised by mature products and services, strong predatory competition and ever shorter product and innovation cycles. In the view of the entrepreneurs the major challenges in this situation are cost reductions and productivity enhancement (stated by 43 per cent and 40 per cent of the respondents, respectively) rather than the development of product and service innovations (37 per cent) or the utilisation of new distribution channels (32 per cent). “It is undoubtedly never wrong to place the focus on costs and efficiency enhancement, but it appears expedient not to regard digitalisation primarily from the perspective of cost efficiency. Traditional companies can learn from start-ups here, by not only embracing new technologies to attain productivity gains, but also by taking entirely new paths so as to unlock new customer groups and distribution channels and to create new offerings,” recommended study patron Groß-Selbeck.

The majority of companies are reluctant when it comes to phenomena currently under major discussion such as big data, cloud computing or Industry 4.0, whereas great significance is attached to established digital technologies. “Naturally companies are focusing on online marketing, are optimising their administration, allowing for work from home offices and offering online services. Individualised and automated production or the networking of value-added chains, in contrast, are only being implemented by a very small number of companies,” reported Markus Beumer. The biggest challenges for companies according to the study are the complexity and tempo of technical development (52 per cent), the high investment needs (50 per cent), data protection issues (49 per cent) and the lack of reliable standards (42 per cent) – all this has led to many companies initially taking a wait-and-see attitude to digitalisation.

The proof of the pudding is in the eating – also with digitalisation

The considerable complexity of digital transformation means that many companies are tending to take a reactive stance. This can be dangerous in rapidly changing markets – with 33 per cent of the respondents reporting that key technologies in their industry are in transition, and 26 per cent stating that digitalisation threatens tried-and-tested business models. “The emergence of digital technologies offers major opportunities, yet is a mammoth management task because decisions have to be taken quickly and missing out on a decisive trend can have dire consequences later. Dealing with the complexity of digital change is one of the fundamental challenges for managers,” commented Markus Beumer.

How to do this successfully is shown by the group of digital forerunners. They do not bide their time, but focus on innovation and experimentation so as to establish a leading edge in keenly-fought markets. They launch pilot projects significantly more often than the average number of companies (+28 per cent higher than the average), analyse the potential of possible new products instead of merely orienting themselves to the market environment (+26 per cent), establish creative freedoms (+25 per cent) and recruit technical specialists (+24 per cent). “Having the courage to try out new things is the best recipe for successfully managing the digital transition in a company,” says Beumer.

The Entrepreneur Perspectives initiative and its studies

The Mittelstand initiative Entrepreneur Perspectives forms a forum for topics that move companies from Germany’s Mittelstand, and articulates the positions of the Mittelstand publicly. To this end it regularly polls comprehensive assessments of SME entrepreneurs on current issues – the data basis is formed by representative surveys of 4,000 first-level executives. The study results are discussed with representatives from the business world and industry federations, with politicians and academics – also on public podia – so as to generate mutual understanding and develop viable solutions to the challenges faced by the Mittelstand.

Contact: Martin Halusa: +49 170 8528638 Bernd Reh: +49 170 9143734

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

in-house fellows Andreas Huerkamp, placed No. 2, and Petra von Kerssenbrock, placed No. 3. In the top 10 of the individual rankings on Germany, there are two more C&M analysts.

***

Pressekontakt:

Thomas Bonk +49 69 136 22373 t.bonk@commerzbank.com

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

Download Press Release (PDF, 66 kB)

In the first quarter of 2015 Commerzbank has considerably increased both the revenues and the profits, while further strengthening its capital ratio. The operating profit has more than doubled to EUR 685 million (Q1 2014: EUR 324 million). This also includes the European bank levy of EUR 167 million as well as a valuation adjustment on the exposure to Austria’s HETA in the amount of EUR 0.2 billion. The operating performance in the Core Bank segments has made a significant contribution to the very good result. Negative charges could be compensated in the Core Bank by positive one-off effects and in NCA by positive valuation effects.

In the first quarter of 2015 the revenues before loan loss provisions in the Group increased by 23% to approximately EUR 2.8 billion (Q1 2014: EUR 2.3 billion). The loan loss provisions declined year-on-year to EUR 158 million (Q1 2014: EUR 238 million). This development is testimony to the high quality of the loan portfolio, the portfolio rundown in NCA, and the robust state of the German economy. The operating expenses in the first quarter were higher than in previous quarters due to the first-ever consideration of the European bank levy. They rose to just over EUR 1.9 billion (Q1 2014: approximately EUR 1.7 billion). The net profit increased considerably to EUR 366 million (Q1 2014: EUR 200 million). This includes restructuring expenses of EUR 66 million for the Corporates & Markets and Non-Core Assets (NCA) segments.

“We have made a successful start into 2015. We are performing well in all the operating segments and thanks to greater activity on the part of our customers have considerably improved the revenues. We have more than doubled the result in the first quarter – and this despite the charges from the European bank levy and a valuation adjustment on the HETA exposure. We are planning for a dividend for the financial year 2015 and are accruing quarterly. However, we have to wait, whether it will be enough at the end of the year,” said Martin Blessing, Chief Executive Officer of Commerzbank.

Capital ratio improved considerably – leverage ratio further increased

With the further increase in the Common Equity Tier 1 ratio (CET 1), the Bank has again strengthened its capital position. The ratio with full application of Basel 3 rose to 9.5% at the end of the first quarter 2015, compared to 9.3% as at the end of December 2014. This considers a dividend accrual totalling EUR 57 million. The leverage ratio with full application of Basel 3 improved to 3.7% as at the end of the first quarter of 2015, following on from 3.6% as at the end of December 2014. Due to the capital measure performed at the end of April 2015, the CET 1 ratio improved to 10.2% (pro forma as at end of March 2015) and the leverage ratio rose to 3.9% (pro forma as at end of March 2015). The risk-weighted assets (RWA) with full application of Basel 3 as at the end of March 2015 were, at EUR 221.5 billion, higher than the figure as at the end of December 2014 (EUR 214.1 billion). The reasons for this were, above all, foreign exchange effects as a result of the weak euro. The total assets in the Group amounted to EUR 605 billion as at the end of March 2015 (end of December 2014: EUR 558 billion).

Operating profit in Core Bank increased by approximately 55% compared to previous year

In the Core Bank the operating profit was significantly improved by a total of approximately 55% to EUR 771 million (Q1 2014: EUR 498 million). This positive development is also reflected in the return on equity (RoE) of 15.4% in the Core Bank. The The lower loan loss provisions of EUR 61 million further aided the operational development (Q1 2014: EUR 104 million). The operating expenses rose in the Core Bank year-on-year by 7% to EUR 1.8 billion (Q1 2014: EUR 1.6 billion), something which was due above all to the European bank levy paid for 2015, and to higher regulatory requirements.

Revenues and profits improved in all Core Bank segments

In the Private Customers segment, a very good operating profit of EUR 161 million was generated in the first quarter of 2015. This was 45% higher than in the first quarter of 2014 (EUR 111 million). Despite the downturn in the interest rate levels, the revenues before loan loss provisions improved to EUR 914 million, following on from EUR 873 million in the first quarter of 2014. The growth is, among other things, due to the higher volumes in Wealth Management products and Premium Depots. These saw considerable year-on-year growth of 16%. Thus, on the whole, the revenues increased to their highest level since mid-2011. The positive development in revenues in the Private Customers segment was bolstered by a sustainably high level of customer satisfaction and the ongoing high level of demand on the part of customers. Thus, the segment continued its growth path with 66,000 net new customers in the first quarter of 2015. The result also profited from the lower loan loss provisions, which, at EUR 13 million, were approximately 64% lower than in the previous year. The operating expenses amounted to EUR 740 million and include the annual contribution of the segment to the European bank levy to the amount of EUR 15 million.

Mittelstandsbank was able to increase its operating profit slightly year-on-year to EUR 345 million (Q1 2014: EUR 340 million). This includes the European bank levy of EUR 44 million for 2015, which was booked for the first time ever. The development of the result profited from lower loan loss provisions of EUR 35 million (Q1 2014: EUR 57 million). The revenues before loan loss provisions increased year-on-year by EUR 44 million to EUR 763 million. This positive development reflects the loan growth and the heightened customer demand, in particular for letter of credit and foreign exchange hedging transactions. In addition, the loan volume was increased by 10% over the first quarter of 2014. On the whole, it was therefore possible to compensate for the downturn in deposit income. The operating expenses rose to EUR 383 million.

The Central & Eastern Europe (CEE) segment improved the operating profit in the first quarter of 2015 to EUR 116 million (Q1 2014: EUR 98 million). The revenues before loan loss provisions were, at EUR 254 million, 13% higher year-on-year. In this respect, the conclusion of the sale of the insurance business of mBank to AXA Group ensured one-off proceeds of approximately EUR 46 million. The segment again attracted more net new customers. In addition, it was possible to compensate for the impact of the current interest rate environment to a considerable degree through growth in the loan and deposit volumes. The loan loss provisions increased slightly to EUR 23 million (Q1 2014: EUR 21 million). The operating expenses were, at EUR 115 million, up slightly year-on-year. Essentially responsible for this were the European bank levy and higher costs for the Polish deposit protection fund. In total mBank also continued its dynamic growth with new customers and volumes in the first quarter of 2015.

Corporates & Markets posted a very good start into 2015. In the first quarter of 2015 the segment attained an operating profit of EUR 300 million, a year-on-year improvement of 40% (Q1 2014: EUR 214 million). Even after adjustment for valuation effects from own liabilities (OCS) and from counterparty risks in the derivatives business (CVA/DVA), which totalled EUR 47 million, the segment posted a year-on-year increase of more than 25%. Year-on-year the revenues before loan loss provisions were increased significantly to EUR 666 million (Q1 2014: EUR 541 million). The key drivers behind higher profits year-on-year were the areas Fixed Income & Currencies (FIC) and Equity Markets & Commodities (EMC). FIC generated a very good result, increasing the revenues over the previous year by 45% to EUR 196 million, thanks to higher volatility in foreign exchange markets and higher bond trading activities. The EMC area also saw a good start into the year and was up 14% year-on-year thanks to healthy demand for structured investment solutions across all asset classes, as well as for hedging solutions to commodity exposures. Net reversals in loan loss provisions for Corporates & Markets amounted to EUR 47 million. Operating expenses increased to EUR 413 million due to first-time charges of EUR 65 million for the European bank levy. In addition, Corporates & Markets saw restructuring expenses of EUR 50 million of IT operations by Centres of Competence.

NCA with improved operating profit

The Non-Core Assets (NCA) segment improved the operating profit in the first quarter of 2015. There was an operating result of minus EUR 86 million, following on from minus EUR 174 million in the first quarter of 2014. The revenues before loan loss provisions increased year-on-year to EUR 116 million (Q1 2014: EUR 41 million). The segment result profited from positive valuation effects; these contrasted with valuation adjustments on the exposure to Austria’s HETA to the amount of EUR 0.2 billion. The loan loss provisions declined year-on-year, above all as a consequence of the portfolio rundown in the area Commercial Real Estate (CRE), by 28% to EUR 97 million (Q1 2014: EUR 134 million). The operating expenses increased year-on-year to EUR 105 million (Q1 2014: EUR 81 million). Of this sum the European bank levy accounted for EUR 27 million in the first quarter of 2015. Furthermore, restructuring expenses of EUR 16 million were booked in the segment.

The portfolio rundown was also continued in the first quarter of 2015, yet was partly compensated by foreign exchange effects. The Exposure at Default (EaD) of the Commercial Real Estate (CRE) and Ship Finance divisions as at the end of March 2015 was EUR 30 billion. Thus it was reduced by approximately EUR 2 billion over the fourth quarter of 2014 (Q4 2014: EUR 32 billion). The rundown over the first quarter of 2014 amounted to approximately EUR 16 billion (Q1 2014: EUR 46 billion). Commercial Real Estate accounted for approximately EUR 17.5 billion EaD as at the end of March 2015, which corresponds to a downturn of EUR 2.5 billion over the end of December 2014. In the Ship Finance division the portfolio was EUR 12.6 billion. Here the portfolio rundown of EUR 0.8 billion was offset by a negative foreign exchange effect of EUR 1.3 billion.

Outlook

“Despite the challenging environment as a result of the low interest rates, in the 2015 financial year we aim to grow the revenues and market share in the Core Bank. In the current year we expect loan loss provisions for the Group at the level of 2014 with lower loan loss provisions in NCA due to the asset run down. As expenses are under pressure due to regulatory requirements and the European bank levy, comprehensive execution of ongoing efficiency programs are necessary to keep our cost base stable over the year at approximately EUR 7 billion. We aim to organically increase our capital ratio CET 1 to significantly more than 10 percent by the end of 2015,” said Stephan Engels, Chief Financial Officer of Commerzbank.

Excerpt from the consolidated profit and loss statement

*** From approximately 7 am onwards you can find broadcast-ready video and audio material with statements by Chief Financial Officer Stephan Engels at http://mediathek.commerzbank.de/.

You can download the video directly via mobile end-devices: http://mediathek.commerzbank.de/q1de/

*** Press contact Alexander Cordes +49 69 136-42764 Nils Happich +49 69 136-44986 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

*** 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, particularly to reduce its NCA portfolio, 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.

The shareholders voted as follows on the fundamental items on the agenda:

Resolution on the use of the profit shown on the balance sheet (item 2)

The Annual General Meeting has voted, as proposed by the Board of Managing Directors and the Supervisory Board, to allocate the profit on the balance sheet shown in the annual financial statements for the financial year 2014 to the amount of approximately EUR 141.2 million completely to the profit reserves. The resolution was passed with a majority of 99.9 %.

Discharge (items 3 and 4)

The members of the Board of Managing Directors and Supervisory Board were discharged with an average majority of 99.6 % and 99.6 %, respectively.

Remuneration of members of the Board of Managing Directors (items 7 and 8)

The Annual General Meeting has approved with a majority of 98.4 % the system for the remuneration of the members of the Board of Managing Directors as of 1 January 2015 as described in the remuneration report, and with a majority of 98.9 % an increase in the maximum sum of the variable annual remuneration for members of the Board of Managing Directors. Accordingly, the amount of the fixed annual basic salary as well as the total remuneration with 100% target achievement will not change. The maximum attainable total remuneration will be reduced in comparison with the remuneration system to date.

The introduction of a new system as of 2015 had become necessary in order to bring the remuneration of the Board of Managing Directors into line with new and/or amended rules under European supervisory requirements (“CRD IV”), the Remuneration Ordinance for Institutions and the German Banking Act.

Remuneration of employees (item 9)

The Annual General Meeting has approved this item with 64.7 %. With regard to the required majority of a 75% of the votes cast, consent has thus not been given. Commerzbank’s intention with item 9 had been to have the Annual General Meeting decide that the maximum remuneration of a very limited number of employees may be raised to a maximum of twice the fixed annual remuneration. This would enable the Bank to continue to competitively remunerate its employees without having to raise fixed remuneration. From the Bank’s point of view this is the economically correct solution which would, moreover, prevent a permanent raise of fixed remuneration. Commerzbank is keeping its option open to put the topic to the vote once more.

New election of members to the Supervisory Board (item 10)

The Annual General Meeting has, as proposed by theSupervisory Board, elected Sabine U. Dietrich and Anja Mikus to the Supervisory Board of Commerzbank AG; this with a majority of 99.9 % and 99.7 %, respectively.

The Supervisory Board members Petra Schadeberg-Hermann and Dr. Nikolaus von Bomhard have left the Supervisory Board with the conclusion of the 2015 Annual General Meeting.

Amendment of contingency resolutions for the acquisition of treasury shares for the purpose of securities trading (item 11) as well as on the authorised and contingent capitals (items 12 and 13)

The Annual General Meeting has, as proposed, voted to amend the contingency resolutions on the acquisition of treasury shares for the purpose of securities trading, as well as on the authorised and contingent capitals. The new authorised capital replaces the two existing authorised capitals, that differed in terms of structures and maturities. Following the resolutions, the authorisation to issue convertible bonds or bonds with warrants, profit participation rights, and the underlying conditional capital were adjusted to the current share capital.

The precise voting results on the individual items on the agenda are to be found at www.commerzbank.com/agm.

*** Press contact Alexander Cordes +49 69 136-42764 Nils Happich +49 69 136-44986 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost €9 billion with an average of approximately 52,000 employees.

Download Press Release (PDF, 99 kB)

The shareholders of Commerzbank are deciding today on the proposal by the Board of Managing Directors and the Supervisory Board to allocate in full the profit on the balance sheet shown in the annual financial statements for the 2014 financial year to the amount of approximately EUR 141.2 million to the profit reserves. In the framework of the Ordinary Annual General Meeting the election of two members to the Supervisory Board is also scheduled. Furthermore, the shareholders are voting on the amendment of contingency resolutions for the acquisition of treasury shares for the purpose of securities trading as well as on the authorised and contingent capitals. The shareholders’ meeting is taking place at Messehalle 11 (Portalhaus) in Frankfurt/Main.

Klaus-Peter Müller, Chairman of the Supervisory Board of Commerzbank, said: “Commerzbank has posted sustainable growth in the Core Bank in 2014, further increasing its stability. The strategy is paying off, even with the difficult market conditions at present”. Müller added: “We are pleased that in Sabine Dietrich and Anja Mikus we have been able to acquire two competent personalities for the Supervisory Board. If the Annual General Meeting adopts the proposed resolution, the future proportion of women on the Supervisory Board will be 35 per cent, and thus clearly greater than the statutory quota”.

So as to take into account the amended rules under European supervisory requirements, the Remuneration Ordinance for Institutions and the German Banking Act, the Supervisory Board had already adopted the introduction of a new remuneration system for the members of the Board of Managing Directors in December 2014. In this respect, the Supervisory Board was guided by the fact that the amount of the fixed annual basic salary as well as the total remuneration with 100% target achievement is not changed under the new system. The maximum attainable total remuneration for the members of the Board of Managing Directors will be reduced considerably in comparison with the remuneration system to date.

Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank: “In the past financial year, Commerzbank has developed quite well in a challenging environment. We have consistently reduced the risks even further and improved the capital base on our own strength. The Common Equity Tier 1 ratio to the strict rules of Basel 3 increased to 9.3% as at the end of December. Thus, Commerzbank is now in a more stable position than one year ago. In the Core Bank we have seen further growth, have acquired many new customers, and extended our market shares. We continue to remain highly disciplined with regard to costs. This is all reflected in the operating profit of the core segments. In the Private Customers, Mittelstandsbank, Central & Eastern Europe and Corporates & Markets divisions we have earned a total of approximately 2.7 billion EUR. That is 300 million EUR more than in 2013”.

In the 2014 financial year, Commerzbank attained an operating profit of EUR 684 million (2013: EUR 731 million). In the Core Bank an operating profit of EUR 1.47 billion was generated. The net profit improved to EUR 264 million (2013: EUR 81 million).

“We will consistently continue along the path we have taken – even though this will not be easy given the current environment. The conditions today are worse than two years ago, when we formulated the strategic agenda. This means: We will have to undertake even greater endeavours to attain our targets for 2016. We have, therefore, set three main points of focus for the next two years. Firstly: Our customers have priority for us. Secondly: We will orient the Bank so that it also consolidates its leading role in a digital world. Thirdly: We intend to become faster and more efficient,” added Blessing.

At www.commerzbank.com/agm you can find the agenda and other documents on the Annual General Meeting, as well as a link for the live broadcast of the speeches by the Chairman of the Supervisory Board and the Chairman of the Board of Managing Directors.

***

Press contact Alexander Cordes +49 69 136-42764 Nils Happich +49 69 136-44986 Kathrin Wetzel +49 69 136-44011

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

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THIS PRESS RELEASE AND THE INFORMATION CONTAINED HEREIN ARE NOT BEING ISSUED AND MAY NOT BE DISTRIBUTED IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN OR AUSTRALIA.

Commerzbank AG today placed 113.850.693 new shares with institutional investors by way of a so-called accelerated bookbuilding process. The placement price was fixed at EUR 12.10 per share. The gross issue proceeds amount to a total of EUR 1.4 billion.

After the successful completion of the capital measure the Common Equity Tier 1 ratio with full application of Basel 3 is increasing to 10.2% (pro forma end of March 2015). Thus, the level for the Common Equity Tier 1 ratio demanded by the capital market in the meantime is being attained more quickly than planned. The leverage ratio is improving to 3.9% (pro forma end of March 2015).

Commerzbank AG and Deutsche Bank AG were the Joint Global Coordinators for the placement.

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

***

Disclaimer This press release does not constitute a prospectus, an offer to sell securities, or a solicitation of an offer to buy securities, in the United States of America or in any other jurisdiction and may not be published, distributed or transmitted, directly or indirectly, in or into the United States, Canada, Japan or Australia. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities of COMMERZBANK Aktiengesellschaft described herein have not been and will not be registered under the Securities Act, or the laws of any state or territory of the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable laws. COMMERZBANK Aktiengesellschaft does not intend to register any portion of the offering described herein in the United States or conduct a public offering of securities in the United States.

This press release is for information purposes only and does not constitute an offer document or an offer of transferable securities to the public in the U.K. to which section 85 of the Financial Services and Markets Act 2000 of the U.K. (“FSMA”) applies and should not be considered as a recommendation that any person should subscribe for or purchase any of the Securities. The Securities will not be offered or sold to any person in the U.K. except in circumstances which have not resulted and will not result in an offer to the public in the U.K. in contravention of section 85(1) of FSMA.

The communication of this document is restricted by law; it is not intended for distribution to, or use by any person in, any jurisdiction where such distribution or use would be contrary to local law or regulation.

This press release is not being distributed by, nor has it been approved for the purposes of section 21 of FSMA by, a person authorised under FSMA. This document is being communicated only to, and is directed only at, (I) persons who are outside the United Kingdom (II) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (III) high net worth companies and other persons within the categories described in Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”).

Any person who is not a Relevant Person should not take any action on the basis of this document and should not act or rely on this document or any of its contents. The Securities are available only to, and any invitation, offer or agreement to purchase will be engaged in only with Relevant Persons. Persons in possession of this document are required to inform themselves of any relevant restrictions. No part of this document should be published, reproduced, distributed or otherwise made available in whole or in part to any other person without the prior written consent of COMMERZBANK Aktiengesellschaft.

This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern 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 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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of Commerzbank’s strategic initiatives, the reliability of Commerzbank’s risk management policies, procedures and methods, and other risks. Forward-looking statements therefore speak only as of the date they are made. 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.

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THIS PRESS RELEASE AND THE INFORMATION CONTAINED HEREIN ARE NOT BEING ISSUED AND MAY NOT BE DISTRIBUTED IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN OR AUSTRALIA.

In the first quarter of 2015 Commerzbank has, on the basis of preliminary figures, further increased the revenues before loan loss provisions as well as the operating result and the capital ratio. The operating profit more than doubled to EUR 685 million (Q1 2014: EUR 324 million). The improvement was seen largely in the Core Bank but also in the Non-Core Assets segment. Negative burdens from the recognition of the European bank levy for the fiscal year 2015 as well as an impairment on HETA exposure have been compensated in the core bank by positive one-off effects and in NCA by positive valuation effects.

The revenues before loan loss provisions increased to EUR 2.8 billion (Q1 2014: EUR 2.3 billion). The primary reasons for the positive deviation in the results from market expectations are at a comparable size revenues from customer and capital market transactions, positive valuation effects and positive one-off effects.

The loan loss provisions decreased compared to the same period in the previous year to EUR 158 million (Q1 2014: EUR 238 million). The operating expenses increased slightly to approximately EUR 1.9 billion (Q1 2014: approximately EUR 1.7 billion). The net profit improved to EUR 366 million (Q1 2014: EUR 200 million).

The successful portfolio run-down in the Commercial Real Estate (CRE) and Ships Finance divisions has been continued since the previous quarter, despite negative foreign exchange effects to the amount of EUR 1.4 billion, with a reduction of EUR 2.0 billion to approximately EUR 30.1 billion as at the end of the first quarter of 2015.

On the basis of preliminary figures the CET 1 capital ratio with full application of Basel 3 – including the interim profit of the first quarter 2015 and a dividend accrual to the amount of EUR 57 million – improved in the first quarter of 2015 to 9.5% (end of December 2014: 9.3%). The leverage ratio as at the end of March 2015 increased to 3.7% (end of December 2014: 3.6%).

The Board of Managing Directors of Commerzbank AG today decided, with the consent of the Supervisory Board, to increase the share capital. To this end as many as 113.85 million new no-par-value shares are to be issued from authorised capital with the exclusion of subscription rights. The new shares are endowed with full dividend entitlement for the current financial year and will be offered to institutional investors through a private placement through the so-called accelerated bookbuilding procedure. Gross issue proceeds of as much as EUR 1.4 billion are to be attained with the placement. Commerzbank AG and Deutsche Bank are Joint Bookrunner for the placement.

The capital increase serves to further strengthen the capital resources of the Bank. With the successful conclusion of the capital measure announced today the Bank expects a further increase in the Common Equity Tier 1 ratio with full application of Basel 3 to presumably more than 10% (pro forma as at the end of March 2015). Thus the level for the Common Equity Tier 1 ratio demanded in the meantime by the capital market will be attained more quickly than planned.

With the successful conclusion of the transaction announced today the leverage ratio is expected to improve to 3.9% (pro forma as at the end of March 2015). Thus the Bank is moving closer to its target of 4% for the leverage ratio.

The ongoing strengthening of the CET 1 capital ratio and of the leverage ratio remains a strategic objective of the Bank. It is planned to increase these organically on an ongoing basis. The Bank is underlining its target of increasing the ROE after taxes in the Core Bank to at least 10% in 2016.

The final figures for the first quarter will be published on 7 May 2015.

Excerpt preliminary results first quarter of 2015

Simon Steiner +49 69 136-46646

Alexander Cordes +49 69 136-42764

Kathrin Wetzel +49 69 136-44011

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

*** Disclaimer This press release does not constitute a prospectus, an offer to sell securities, or a solicitation of an offer to buy securities, in the United States of America or in any other jurisdiction and may not be published, distributed or transmitted, directly or indirectly, in or into the United States, Canada, Japan or Australia. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities of COMMERZBANK Aktiengesellschaft described herein have not been and will not be registered under the Securities Act, or the laws of any state or territory of the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable laws. COMMERZBANK Aktiengesellschaft does not intend to register any portion of the offering described herein in the United States or conduct a public offering of securities in the United States.

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CommerzVentures GmbH, the Corporate Venture Capital subsidiary of Commerzbank launched around six months ago, has made its first investment in a fintech company. It joined the venture arms of Sberbank and Ping An as a follower investor in the Series D financing of the social investment platform eToro Group Ltd. The total investment volume raised among the investors amounted to USD 39 million. This includes a credit line of USD 10 million‎ by Silicon Valley Bank. ‎

Since the launch of CommerzVentures in the first quarter of 2014, the team has met far more than one hundred entrepreneurs and companies. „We aim at further improving Commerzbank’s ability to access innovations and trends in the financial sector. We have examined quite a number of interesting companies during the past months. Their potential alone shows that we are on the right track,“ said Bettina Orlopp, Member of the Divisional Board for Group Development & Strategy at Commerzbank and member of the CommerzVentures investment committee.

eToro Group Ltd. was founded in 2007 with the vision of developing a platform that would open the financial markets to everyone by simplifying the user’s experience. eToro then developed a contracts for difference (“CFD”) trading platform, which was launched in 2008. Following the rise of popular social networks, the company decided to launch its own social investing platform called “OpenBook” in 2010. The aim of social trading is to promote transparency by allowing traders from all across the globe to copy and learn from one another. To date, eToro has over 4 million registered users and offers hundreds of CFDs on currencies, stocks, indices, and commodities.

„At CommerzVentures we want to work with the best entrepreneurs who can articulate why they can dominate a given market segment. eToro is a perfect fit as it has firmly established itself as the leader in social trading and as it is run by ambitious and very talented management“, said Stefan Tirtey, co-managing director of CommerzVentures.

Yoni Assia, eToro's co-founder and CEO said: “These are truly exciting times for us at eToro as new partners begin to share our vision of recreating personal finance. The new funds raised will help us scale globally and grow faster than ever before. With new offices opened and others soon to follow, we will continue to dominate the field of social trading. Later this year, we are planning to introduce a completely new platform alongside our revamped popular investors program. The program gives traders the opportunity to earn a monthly income from trading and being copied by others on our platform”.

*** Press contact Alexander Cordes +49 69 136-42764 Nils Happich +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

About eToro eToro is the world’s leading social investment network, with more than 4 million registered users in over 140 countries and thousands of new accounts opened each day. eToro leads the social trading revolution through its community powered network, which enables every investor to see, follow and automatically copy the actions of other investors in real time. eToro’s mission is to revolutionize the way people access the financial markets and make their trading experience more social, simple, enjoyable and transparent. By harnessing the wisdom of the crowd, every member of eToro’s social trading network benefits from accelerated information exchange, knowledge sharing and the ability to quickly identify the best investment opportunities. With a wide range of award-winning mobile and web-based social trading tools, eToro appeals to every level of trading expertise, and provides an investment experience like no other before. For more information, visit us at www.etoro.com.

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The requirements placed on small- and medium-sized enterprises are changing with increasing digitalisation and the growing pressure to become more efficient. More and more decision-makers are attaching the highest strategic relevance to the digitalisation of entrepreneurial processes – “Industry 4.0” covers all sectors. For this reason Commerzbank Mittelstandsbank has extensively revised and expanded its digital and multichannel offerings for more than 100,000 users. The core of this is formed by the new corporate client portal www.firmenkunden.commerzbank.de. This has been completely overhauled, equipped with intuitive user navigation, expanded to include numerous new functions, and is available in 13 languages.

Also new is an app for cash management within companies. This additional offering to regular online banking is available for Android and iOS smartphones; at the touch of a button it shows the latest account balance as well as transactions from as many as 15 domestic and foreign accounts – both at Commerzbank and other institutions. In the closed area of the portal the ‘FX Live Trader’ and ‘Live Confirm’ platforms allow for real-time foreign exchange trading around the clock. Furthermore, with the web app Treasury Management System companies can optimise their payment flows, for example with Cash Concentrating or the establishment of a so-called Payment Factory.

“Technophile CEOs and CFOs increasingly have other needs nowadays, and they want contemporary offerings. In addition, they wish to equip their employees with mobile working media so that they are able to communicate via differing channels – and also with their financial partners,” says Holger Werner, the divisional board member responsible for Corporate Banking. “We are reacting to this. We are modernising our online site for corporate clients, expanding the mobile offering and equipping our consultants with new technology. With these measures Mittelstandsbank is heading into the second decade of its success story full of confidence,” adds Werner.

In March 2014 Commerzbank – as the first major bank on continental Europe – launched an incubator which invests in financial technology start-ups. The company, which trades under the brand name main incubator, is supporting Commerzbank in particular with the digitalisation of the corporate client business – through targeted investments in start-ups with promising solutions or as a company builder. main incubator accompanies FinTech start-ups through to the market launch of products. In this respect the focus is on the corporate client business. The offering to the start-ups encompasses access to the corporate clients of Commerzbank, equity capital financing, banking know-how, office space and infrastructure in Frankfurt. To date main incubator has made two strategic investments: in Gini, a forerunner in semantic real-time and self-optimising data analysis and processing, and in Traxpay, a B2B dynamic payments provider.

Further testimony to concentration on the business models of corporate clients is the greater regional focus of Mittelstandsbank. “Through streamlined hierarchies we have transferred greater decision-making competence to the local units. Thus reaction times and implementation periods are both reduced considerably. For example, after the submission of all the documentation we present a credit decision on volumes of up to 5 million euros within 72 hours,” says Werner.

Press contact Martin Halusa: Tel. +49 69 136-85331 Bernd Reh: Tel. +49 69 136-46971

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

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Today Commerzbank and CCB International Asset Management Limited (CCBI), the asset management arm of CCB International (Holdings) Limited (CCB International) announced the launch of the CBK CCBI RQFII Money Market UCITS ETF. It trades on the London Stock Exchange and is available to investors in the UK, Germany and Luxembourg.

In an environment where the options for offshore Renminbi (‘RMB’) investment are limited, the CBK CCBI RQFII Money Market UCITS ETF aims to provide European investors with an effective offshore RMB investment vehicle with access to RMB denominated Government, Policy Bank and Corporate Bonds. The RQFII quota* allows offshore RMB investment into and repatriation from the People’s Republic of China (PRC) money markets. When backtested over the past five years, the PRC money markets showed average returns greater than 4.0 per cent per annum *.

More detail on CBK CCBI RQFII Money Market UCITS ETF:

Thomas Timmermann CEO of Asset Management at Commerzbank Corporates & Markets commented: “RMB is an increasingly important currency for investors and we are delighted to be able to offer this product in partnership with CCB International. This ETF provides our customers an opportunity to invest in the region and offers further flexibility by trading and settling in Euro, RMB or Sterling. The ETF provides offshore investors the opportunity to use offshore renminbi deposits to invest in the mainland securities markets, with the aim of maintaining capital value and generating returns linked to the RMB money markets”.

China Construction Bank (London) Limited (CCB) is the first and only RMB clearing bank in London and is utilising London’s role as as a global financial centre and the largest offshore RMB trading market. Hu Zhang Hong, CEO of CCB International, said: “Not only does this mark an important historical milestone in the internationalisation process of the CCB and CCB International, it also demonstrates the significant achievement of the Chinese banking industry reform and the internationalisation of the RMB. This heralds an innovative and important step in the financial cooperation between China and the United Kingdom”.

The CBK CCBI RQFII Money Market UCITS ETF will invest in PRC government bonds, policy bank bonds, cash, central bank bills, commercial paper, and corporate bonds with a weighted maturity of no more than 6 months and an AAA Long- term rating or A-1 short- term rating by the local rating agency.

The ETF can be bought and sold each trading day through The London Stock Exchange, as well as in off-exchange trading through Commerzbank and other direct banks. The minimum investment is RMB 100 and the All-In fee of the ETF is 0.65 per cent per year.

As China opens up its currency to global trade and investment, Commerzbank continues to offer its clients access the new global currency. Commerzbank has over three decades of experience in China, working with industry, financial institutions and policymakers. Today, Commerzbank operates at the forefront of onshore and offshore RMB developments to service clients effectively.

About the CBK CCBI RQFII Money Market UCITS ETF

ENDS

Press contacts:

Claire Tappenden +44 (0)20 7475 5161

Tim Seifert +49 69 136 81771

* RFQII is the renminbi qualified foreign institutional investor scheme. Launched in December 2011 it allows a small number of Chinese financial firms to establish renminbi-denominated funds in Hong Kong for investment in the mainland. The aim being to allow overseas investors to use offshore renminbi deposits to invest in mainland securities markets.

* PRC money markets fund Index. Before taxes and fees. Past performance is not a reliable indicator of future results.

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

About Commerzbank Asset Management

Commerzbank Asset Management is part of the Corporates & Markets division of Commerzbank. It is the provider of Comstage ETFs as well as acting as a highly specialised investment service provider. It offers a full range of ETFs across asset clases through the Comstage platform and a spectrum of funds and asset management services invested in a range of asset classes worldwide. The offering is designed for both institutional and retail investors.

About CCB International

CCB International (Holding) Limited (CCB International) is an investment services flagship wholly owned by China Construction Bank Corporation (“CCB”) in Hong Kong, CCB International via its subsidiary CCB International Asset Management Ltd, is among the first RQFII investors to obtain the license from People’s Bank of China to invest in the CIBM for private RQFII products. CCB is the second largest bank in China, market capitalization of the bank reached around US$208 billion by the end of 2014, its wholly-owned subsidiary, China Construction Bank (London) Limited (“CCB London”) was designated as the London RMB clearing bank, the first time such a title has been granted by the People’s Bank of China outside of Asia, and CCB London Branch was authorised by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 22 December 2014.

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The following additional items on the agenda should be emphasised:

Resolution on the use of the profit shown on the balance sheet (item 2)

The Board of Managing Directors and the Supervisory Board of Commerzbank propose to allocate the net profit of approximately EUR 141.2 million for the financial year 2014 as reported on the annual financial statements in full to the retained earnings.

Remuneration of Members of the Board of Managing Directors (items 7 and 8)

The Annual General Meeting is to approve the system described in the remuneration report for the remuneration of the members of the Board of Managing Directors from 1 January 2015 onwards. It had become necessary to introduce a new system as of 2015 in order to bring the remuneration of the Board of Managing Directors into line with new and/or amended regulations of the European supervisory requirements (“CRD IV”), the Remuneration Regulation for Institutions (Institutsvergütungsverordnung), and the German Banking Act. Consequently, the Supervisory Board of Commerzbank had already adopted a new remuneration system for the members of the Board of Managing Directors in December 2014. In this respect, the Supervisory Board was guided by the fact that the size of the fixed basic annual salary and the total remuneration with 100% target achievement should not change under the new system. The maximum attainable total remuneration, in contrast, will be reduced considerably compared to the remuneration system to date.

So as to leave the total remuneration of the members of the Board of Managing Directors unchanged with 100% target achievement, the Supervisory Board proposes the adoption of an increase in the maximum sum of the variable annual remuneration for members of the Board of Managing Directors. This is – in keeping with § 25 a Section 5 Sentence 5 German Banking Act – not to exceed 140% of the fixed remuneration for each individual member of the Board of Managing Directors. With the intended increase in the upper limit both the fixed basic annual salary as well as the target sum for the variable remuneration of the ordinary members of the Board of Managing Directors would remain unchanged.

Remuneration of employees (item 9)

The Board of Managing Directors and the Supervisory Board of Commerzbank propose to the Annual General Meeting that use be made of the possibility to adopt a resolution on higher variable remuneration for employees of Commerzbank AG, and also for employees and managing directors of subsidiaries as defined in § 290 Section 1 Commercial Code. At present the variable remuneration may not exceed 100% of the fixed remuneration of each respective individual employee. The resolution of the Annual General Meeting would make it possible to lay down variable remuneration higher than 100%, yet a maximum of 200% of the fixed remuneration. There are two reasons for this: Firstly, so the Bank can acquire employees critical to the success of the Bank and tie these to the Bank more easily in competition with others. Secondly, the Bank would thus counter an inappropriate increase in the fixed remuneration and could retain a suitable variable remuneration component which would be consistent with the performance of Commerzbank Group.

New election of members of the Supervisory Board (item 10)

New members of the Supervisory Board are to be proposed for election to the Annual General Meeting. The personnel changes on the Supervisory Board will be necessary as Petra Schadeberg-Hermann and Dr. Nikolaus von Bomhard are laying down their Supervisory Board mandates as of the conclusion of the 2015 Annual General Meeting. For this reason, the Supervisory Board is proposing that Sabine U. Dietrich be elected to the Supervisory Board as the successor for Petra Schadeberg-Hermann and Anja Mikus as the successor for Dr. Nikolaus von Bomhard. Sabine U. Dietrich is a Member of the Board of Managing Directors of BP Europe SE. Anja Mikus is the Chief Investment Officer at Arabesque Asset Management.

Shareholders, who have registered by the end of 23 April 2015 at the latest, are entitled to participate in the Annual General Meeting and exercise their right to vote. Excerpts of Commerzbank’s Annual General Meeting can be followed live on the internet on 30 April 2015 from 10.00 a.m. onwards. Access will be provided at www.commerzbank.com/agm.

***

Press contact

Alexander Cordes +49 69 136-42764

Nils Happich +49 69 136-44986

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.

***

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, particularly to reduce its NCA portfolio, 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.

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Commerzbank considerably increased the net profit in the 2014 financial year, further reducing risks and significantly improving the relevant capital ratios. The operating profit was improved by 40% to EUR 1.0 billion (2013: EUR 0.7 billion). The revenues before loan loss provisions declined, above all due to the portfolio run-down in the Non-Core Assets (NCA) segment, to EUR 9.1 billion (2013: EUR 9.3 billion). The loan loss provisions were lowered considerably to EUR 1.1 billion (2013: EUR 1.7 billion), which is testimony to the high quality of the credit portfolio. Despite additional investment and higher regulatory costs, the operating expenses were maintained at a virtually stable level of EUR 6.9 billion (2013: EUR 6.8 billion) thanks to active cost management. The net profit improved to EUR 602 million (2013: EUR 81 million); this figure includes restructuring expenses of EUR 61 million (2013: EUR 493 million).

In the fourth quarter of 2014 the net profit increased to EUR 77 million, following on from EUR 64 million in the same quarter of the previous year. Among the contributors to the increase were lower loan loss provisions of EUR 308 million (Q4 2013: EUR 451 million).

The Core Bank attained a stable operating profit of EUR 1.8 billion (2013: EUR 1.8 billion) in the 2014 financial year. The operating return on equity in the Core Bank was 9.2%. The. Without these the operating revenues of the Core Bank would have increased despite the ongoing low interest rate environment. The loan loss provisions in the Core Bank were reduced significantly, by 26.3% to EUR 490 million (2013: EUR 665 million). The operating expenses in the Core Bank were EUR 6.6 billion and thus, as a result of additional investment and higher regulatory costs, increased slightly, by 2.6%, year-on-year (2013: EUR 6.4 billion). The credit volume was again increased in this period. In comparison with the previous year the Private Customers and Mittelstandsbank segments increased their credit volumes by 3% and 8%, respectively. Thus, the credit volumes in these segments increased more sharply than in the market in general.

“We have increased the operating profit to more than EUR 1 billion in 2014 and significantly improved our capital base through our own efforts. In a challenging environment we have posted further growth, have awarded more loans and increased market share. The measures in our strategic agenda have been well received by customers,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank AG. Blessing added: ”The satisfaction of our customers has risen considerably in the past two years. In the Private Customers segment we have acquired more than 530,000 new customers in this period, and at Mittelstandsbank our position as the market leader in the financing of German foreign trade has been extended. Our investment bank Corporates & Markets has expanded its international business. In the Central & Eastern Europe segment we were able to acquire 558,000 new customers thanks to our Polish subsidiary mBank”.

Implementation of the strategic agenda proceeding to plan

In 2014 Commerzbank implemented as planned the measures on the strategic agenda. In the two years since the announcement of the new strategy, the Core Bank segments have thus been able to attain significant progress.

The Private Customers segment has succeeded in considerably enhancing the trust of customers. Thanks to the high quality of advisory, attractive new products and the expansion of the digital offering, it was possible to continually increase customers’ willingness to recommend the Bank to others as well as the number of customers. In total the number of net customers has been raised by 532,000 since the end of 2012. The modernisation of the branch network was initiated with the opening of pilot branches.

Mittelstandsbank was likewise able to increase the satisfaction of its clients. This is demonstrated by both internal client surveys and independent external surveys. In addition, Mittelstandsbank has pushed ahead with its internationalisation in recent years. Thus, among other things, five new sites were opened in Switzerland, local corporate client business was developed in Austria, and the planned opening in 2015 of a subsidiary in Brazil was prepared. All in all, Mittelstandsbank has thus succeeded in further expanding its client base. This applies to SMEs, to clients from the upper Mittelstand and also to larger corporates. Thus 90% of all companies in Germany in the larger corporates sector now rank among the clients of Commerzbank. In the past two years Mittelstandsbank has increased its credit volume in Germany 15 percentage points more than the market in general and further extended its position as the market leader in the financing of the German export sector, increasing its market share in the financing of foreign trade in the entire eurozone in 2014 from 14% to more than 17%.

In the Central & Eastern Europe segment Poland’s mBank today ranks among the most innovative banks in the world. This has been aided by the new online banking platform and mobile apps which have been developed in recent years. In addition, mBank has successfully implemented its “one bank” strategy. Following the conclusion of the unification of the branding in 2013, work began on the reorganisation of the branch system in 2014. Moreover, it was possible to further diversify mBank’s funding base thanks to various bond issues and private placements. The net number of customers has been increased by 558,000 since the end of 2012.

The Corporates & Markets segment has expanded its international business in the past two years and even further diversified its business model. Thus it has been possible to compensate for a market-driven downturn in Fixed Income & Currencies through growth in the Equity Markets & Commodities division. The investment bank was also able to market more products and services internationally, namely in Europe, the USA and also in Asia. Thus the segment’s revenues have been increased by 23% since the end of 2012.

In the run-down segment NCA, the entire Exposure at Default (EaD) has been reduced by EUR 76 billion while preserving value and thus virtually halved since the starting point of the new strategy 30 September 2012. In the same period, the non-performing loans in the segment were reduced significantly, by EUR 5.4 billion or approximately 47% to EUR 6.2 billion.

Risk profile improved, Common Equity Tier 1 ratio increased to 9.5%

Through the run-down of risks and the consolidation of the capital base Commerzbank also improved its stability in 2014. Although the risk-weighted assets increased year-on-year as a consequence of the effects of the introduction of Basel 3, by 13.0% to EUR 215 billion (2013: EUR 191 billion), in comparison with previous quarters they have remained stable, however – despite continued growth in the Core Bank. The total assets increased slightly year-on-year, by 1.4% to EUR 558 billion (2013: EUR 550 billion). The increases in volume at the Core Bank also had an impact here. Commerzbank has further extended its comfortable equity capital position. The Common Equity Capital with full application of Basel 3 increased year-on-year by approximately EUR 900 million to EUR 20.3 billion. The Common Equity Tier 1 ratio (CET1) with full application of Basel 3 increased to 9.5%, following on from 9.0% as of the end of December 2013. As of the end of 2014 the CET 1 ratio in accordance with the provisional rules of Basel 3 improved year-on-year to 11.8% (end of December 2013: 11.6%). Since the third quarter of 2014 the leverage ratio has been stated on the basis of the amended rules of the directive on equity capital requirements of the European Union (CRD 4/CRR). Under these regulations the leverage ratio as of the end of December 2014 with full application of Basel 3 increased to 3.7%, after it had amounted to 3.3% as of the end of December 2013 pursuant to rules at that time.

“In 2014 we strengthened our capital base and further reduced risks. In our run-down segment we were able to significantly lower the portfolios and the risk-weighted assets. In addition we have increased our common regulatory equity capital by approximately EUR 900 million and improved the corresponding core equity ratio to 9.5%. Last year we were also able to significantly improve the leverage ratio to 3.7%. We have now also set ourselves a target for this for the end of 2016: we intend to increase the ratio with full application of Basel 3 to approximately 4%,” said Stephan Engels, Chief Financial Officer of Commerzbank. Engels added: “The Bank has continually enhanced its stability and stress resistance in recent years. This was impressively confirmed last autumn by the successful Comprehensive Assessment by the ECB and EBA”.

Individual financial statement of Commerzbank AG

The provisional individual financial statement of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) states higher annual net income of EUR 282 million for 2014 (2013: EUR 166 million). This sum takes into consideration the payment of interest on all profit-sharing rights in Commerzbank AG. It’s planned to transfer the net profit in full to the retained earnings.

Development of theSegments

The Private Customers segment increased its operating profit in 2014 by 87.5% to EUR 420 million (2013: EUR 224 million). The revenues before loan loss provisions were improved to EUR 3.4 billion (2013: EUR 3.3 billion). The increase in the net interest income by 5.1% to EUR 1.9 billion more than compensated for the slight downturn of 1.4% in the net commission income to EUR 1.5 billion. The loan loss provisions declined over the previous year, by 26.9% to EUR 79 million (2013: EUR 108 million). The operating expenses were lowered to EUR 2.9 billion (2013: EUR 3.0 billion). In the fourth quarter the segment increased the operating profit year-on-year to EUR 72 million (2013: EUR 60 million). Compared to the third quarter of 2014, the revenues saw charges through additional net provisions of EUR 35 million for legal risks, above all as a result of the verdict with regard to credit processing fees by Germany’s Federal Court of Justice at the end of October 2014. The segment has successfully continued along its growth path in 2014; thus the number of net new customers increased by approximately 288,000. New business in residential mortgage financing grew by 31% to EUR 10.4 billion in 2014, the volume of managed accounts, and the newly launched premium accounts increased year-on-year by 51% to more than EUR 31 billion.

Mittelstandsbank was able to increase its operating profit in 2014 by 9.6% to EUR 1.2 billion (2013: EUR 1.1 billion). The revenues before loan loss provisions were stable at EUR 2.9 billion (2013: EUR 2.9 billion). The loan loss provisions declined significantly year-on-year by 27.2% to EUR 342 million (2013: EUR 470 million). In particular fewer loan loss provisions had to be formed for new problematic loans than had been the case in the previous year. The operating expenses rose slightly in 2014, to EUR 1.4 billion (2013: EUR 1.3 billion), due to increases in both personnel and material expenses. In the fourth quarter of 2014 the operating profit improved year-on-year to EUR 249 million (2013: EUR 222 million). Mittelstandsbank has continued along its growth path in 2014. The credit volume was increased by 8% year-on-year, and thus saw stronger growth than the market in general. Thus the leading position in Germany’s Mittelstand has again been extended.

In 2014, the Central & Eastern Europe segment improved its operating profit significantly by 40.0% to EUR 364 million over the previous year (2013: EUR 260 million), with mBank attaining a record result in 2014. The revenues before loan loss provisions in the segment increased by 14.2% to EUR 923 million (2013: EUR 808 million). The loan loss provisions increased by 3.4% to EUR 123 million (2013: EUR 119 million). The operating expenses rose slightly, to EUR 436 million (2013: EUR 429 million). In the fourth quarter the segment attained an operating profit of EUR 89 million (2013: EUR 66 million). mBank further extended its strong position on the Polish market in 2014. It was able to acquire approximately 320,000 net new customers, and thus now has 4.7 million customers.

Corporates & Markets achieved an operating profit of EUR 675 million (2013: EUR 777 million) in 2014 in a difficult market environment. The operating profit adjusted for effects from the valuation of own liabilities (OCS) and counterparty risks in the derivatives business, however, was EUR 694 million (2013: EUR 713 million). The revenues before loan loss provisions declined by 5.2% to EUR 2.0 billion (2013: EUR 2.1 billion). The analogously adjusted revenues before loan loss provisions remained almost stable at EUR 2 billion. Equity Markets & Commodities (EMC) attained record revenues of EUR 607 million (2013: EUR 524 million) whilst Equity Capital Markets was able to double its revenues. Fixed Income & Currencies (FIC), in contrast, was affected by the low volatility on the markets and the low interest rate environment. With respect to the loan loss provisions there were net reversals of EUR 55 million, after net reversals of EUR 57 million in 2013. The operating expenses were reduced by 0.6% to EUR 1.4 billion (2013: EUR 1.4 billion) despite higher regulatory charges. In the fourth quarter of 2014 the operating profit was EUR 119 million (2013: EUR 166 million). Adjusted for the OCS effect and effects from the measurement of counterparty risks in the derivatives business the operating profit in the fourth quarter, however, increased to EUR 150 million (2013: EUR 98 million).

NCA: Run-down portfolio reduced by a further 28% or EUR 32 billion

The Non-Core Assets (NCA) segment again improved its operating profit in 2014. This amounted to minus EUR 786 million, and was thus 26.7% better than the figure posted in the previous year (2013: minus EUR 1,073 million). Although the revenues before loan loss provisions declined considerably in line with the run-down strategy to EUR 182 million (2013: EUR 359 million), the decline of EUR 428 million in the loan loss provisions to EUR 654 million (2013: EUR 1,082 million) was more than able to compensate for this. In this respect, the reduction in the loan loss provisions was primarily due to the CRE portfolio, while the loan loss provisions in the Ship Finance division remained, as expected, at a high level. In addition the operating expenses decreased by 10.3% to EUR 314 million (2013: EUR 350 million). In the fourth quarter of 2014 NCA improved the operating profit year-on-year to minus EUR 182 million (2013: minus EUR 328 million). Moreover, in the fourth quarter there were restructuring expenses of EUR 61 million as the operating business is being scaled down analogously to the faster-than-expected portfolio run-down.

In 2014 the NCA segment also continued with the value-preserving portfolio run-down. In total the Exposure at Default (EaD) of the portfolios was reduced in the course of the year by EUR 32 billion or approximately 28%. As of the end of 2014 the Commercial Real Estate division accounted for approximately EUR 20 billion of the EaD; this corresponds to a reduction of EUR 16 billion or approximately 44% over 2013. Approximately one third of this resulted from the sales of the CRE portfolios in Spain and Japan, as well as of the non-performing CRE credit portfolio in Portugal. The EaD in the Ship Finance division was reduced by EUR 2 billion, or approximately 16%, to EUR 12 billion in 2014. In Public Finance the portfolio holdings declined over 2013 by approximately 21% to EUR 52 billion.

Outlook: Continued growth in the Core Bank

The market environment in 2015 is likely to remain challenging. Nevertheless, in 2015 Commerzbank intends to bring about a further increase in the business volume as well as the revenues in the Core Bank. The operating expenses in the Group are to remain stable in the year as a whole at approximately EUR 7.0 billion. Additional charges such as the European bank levy will be balanced out by ongoing cost reductions. The loan loss provisions in 2015 are to be at the level of 2014 – with lower loan loss provisions in NCA.

“In 2015 the financial sector will again face major challenges. Thus the objectives of our strategic agenda remain ambitious. For this reason we will be more aggressive in the market and intend to attain profitable growth in the Core Bank,” said Martin Blessing.

Excerpt from the consolidated profit and loss statement

* Unaudited figures

*** Press contact

Alexander Cordes +49 69 136-42764

Nils Happich +49 69 136-44986

Karsten Swoboda +49 69 136-22339

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,100 branches and approximately 90 advisory centres for business customers Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of more than EUR 9 billion with an average of approximately 52,000 employees.

*** 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, particularly to reduce its NCA portfolio, 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.

Commerzbank AG is opening a representative office in Abidjan, the economic metropolis of Ivory Coast, thus expanding its network on the up-and-coming African continent. This means that Commerzbank, which has been operating in Africa since 1952 and maintains business relations with 50 of 54 African countries, is in¬creasing the number of its locations on the continent to 7. Commerzbank’s strategic target is to increase its presence precisely in global growth markets. The new representative office will be a contact for local banks and for German and international companies in French-speaking West Africa.

The head of the office in Abidjan, which has 5 members of staff, will be Konrad Engber (41). In his many years of working for Commerzbank, Engber has gathered extensive knowledge of the special economic and cultural characteristics prevailing on the African continent. He has already been Commerzbank’s represen¬tative in Addis Ababa, Ethiopia, and Tripoli, Libya.

Today Commerzbank is already the number 1 German-speaking bank in Africa. It has customer relations with 550 private and state-owned financial institutions, 29 central banks and sovereign wealth funds, as well as ministries and private companies on the continent. Currently more than 100 employees work in African business operations in various areas of the Group.

In the past few years, Ivory Coast’s economy has grown on average at rates of more than 9 per cent, boosted by a stable political framework, massive public and private investments, and structural reforms. In addition, economic relations between Africa and Europe will continue to develop dynamically. Commerzbank will participate in this growth process. “To take this development into account, we are also going to set up an African research hub in the new representative office,” explained Christof Gabriel Maetze, Global Head Financial Institutions at Commerzbank AG. “The intensive exchange with our colleagues in other African Locations and the bundling of information allow us to come even closer to market activity on the African continent,” said Maetze.

In Africa, Commerzbank also has representative offices in Johannesburg, Cairo, Addis Ababa, Lagos, Tripoli, and Luanda. The Bank is represented at more than 70 locations in over 50 countries worldwide. Its Financial Institutions division has a network comprising more than 5,000 correspondent banking relationships.

With a customer base of more than 100,000 small and medium-sized enterprises (revenue of more than €2.5 million) and banking relationships with just about all major German companies, Commerzbank regards itself as a strategic partner for corporate customers regionally, nationally in Germany, and internationally on the global markets of Germany’s strongly export-oriented economy.

Press contact Martin Halusa: Tel. +49 69 136-85331 Kirsten Böddeker: Tel. +49 69 136-85466

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittel¬standsbank, Corporates & Markets, and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,200 branches, Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2013, it generated gross revenues of more than EUR 9 billion with an average of approximately 54,000 employees.

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In the period from 2007 to 2013, the European manufacturers of technical textiles saw stronger growth than the European economy as a whole. In the crisis years 2008 and, in particular, 2009, above-average slumps were visible, however. The sub-segment non-woven fabrics, the production of which has increased by 11% since 2011, made a substantial contribution to this growth. For 2015, it is to be assumed that this area, as well as the other technical textiles, will see a moderate rise of approximately 2% in the production index, according to the industry report. With the textile-reinforced fibre composites – the so-called composites – the high level seen in 2007 will not be attained again due to weak demand in France, Spain, and Italy, however. In contrast, German, British, and eastern European manufacturers posted considerable increases in production.

Technical textiles are conquering more and more new application areas and are superseding conventional materials. Examples of this are reinforcement materials made of textile in concrete construction, artificial arteries in medical technology, and textile sandwich materials in vehicle construction and sport. Thus, the winning goal in the 2014 World Cup final was scored by Mario Götze wearing a “knitted” shoe. At the same time, new manufacturing methods are constantly being developed. Technology leadership is, therefore, a key success factor. “The German sector is regarded – also thanks to the excellent networking with the German research sector, which is itself unique worldwide – as the global technology market leader,” said Jürgen Grebe, Corporate Sector Analyst and author of the report, at the press conference at Frankfurt trade fair grounds as part of this year’s leading industry trade fair show Techtextil. In this respect, he stated, the focus was on high-quality, sophisticated product areas, and the sector was avoiding to the greatest possible degree competition with suppliers of mass-produced goods and low-quality products, that were primarily based in Asia. “Looked at that way, the German sector is predominantly the result of a successful structural change on the part of producers of traditional textiles to become highly technical and specialist manufacturers of high-quality textile products,” added Grebe.

Through to 2018, the global market for conventional textiles is set to grow from somewhat more than 130 billion US dollars at present to as much as 160 billion US dollars, states the report. In this respect the most important buyer area remains the vehicle construction industry. Yet sectors such as construction textiles and geotextiles, as well as niches such as ecotextiles, are gaining in significance. With non-woven fabrics it is expected that sales worldwide will increase from 33 billion US dollars at present to more than 42 billion US dollars by 2017. Here the biggest buyer area remains the hygiene sector. Higher growth rates are believed to be possible for composites – in particular due to strong demand in the buyer sectors vehicle construction, wind energy, and aviation. At present the global market volume for fibre-reinforced materials is estimated to be just less than 100 billion US dollars. In total the global market volume for technical textiles is currently more than 250 billion US dollars.

Viewed regionally the best outlook is attributed to the Asian market, headed by China. Yet other threshold countries are gaining in significance for German manufacturers, whose export quota for technical textiles in 2013 amounted to 62% and to 58% for non-woven fabrics. In this respect German producers are increasingly worried by a lack of know-how protection and rising administrative costs, for example in the use of origination regulations for primary materials, as well as the development of energy costs.

On the whole the German sector – 600 companies with more than 20 employees and a turnover of more than 6 billion euros each – is regarded as the market leader in Europe. Nearly 50% of the entire German textile production is already accounted for by technical textiles. As a consequence of the in part already highly extensive foreign production and other statistical demarcation problems, the actual turnover of the German manufacturers is likely to be very much higher, however.

The full industry report may be ordered free of charge in both English and German from the press office of Commerzbank.

Press contact

Martin Halusa +49 170 8528638

Bernd Reh +49 170 9143734

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2013, it generated gross revenues of more than EUR 9 billion with an average of approximately 54,000 employees.

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The economy in Europe is not making any substantial headway according to Commerzbank’s economic forecast 2015. The economists expect for the euro zone an unchanged economic growth rate of 0.8%. In Germany the GDP will not rise by more than 1.1% in 2015 after 1.5% in 2014. By contrast, the US could become an engine of growth for the global economy in 2015 with a GDP increase of 2.9%, which is why the US Federal Reserve Fed is expected to lift interest rates for the first time since nine years. Commerzbank’s economists expect an ongoing zero-interest rate policy of the European Central Bank (ECB) for the euro zone. This may shift more money into riskier investments like stocks and push the major German stock index DAX to 10,800 points by the end of 2015.

"The growth outlook in the euro zone for the coming year is sobering. Growth remains painfully slow," said Commerzbank chief economist Joerg Kraemer. For 2016, he expects economic growth of only 1.0% in the euro zone. "At this slow pace, it will take another two years before the euro countries in total will have reached an economic level the same as before the 2008 financial crisis," he said.

Kraemer identified the slowdown of growth in the emerging markets as major reason for the current economic weakness in Germany. However, the economy would gradually be pushed from falling oil prices, a declining euro exchange rate and low interest rates. This will also help promote private consumption, so that the German economy should grow a little more again after the spring 2015. But Germany may not expect a stronger growth rate of 1.5% before 2016.

In 2015 Commerzbank’s economists expect the capital markets worldwide to be dominated by the contrasting monetary policy of the Fed and the ECB. While the Fed gradually exits from an ultra-loose monetary policy and begins raising interest rates mid-year, the ECB would be ready to pursue an opposite course by starting QE, i.e. purchasing government bonds on a large scale to fight a weak economy and low inflation. That was, the ECB extends the de facto zero interest rate policy in the euro area for years. "The markets are likely to be torn between a loosening ECB and a Fed tightening," said Kraemer on the contrasting monetary policies across the Atlantic.

The prospect of rising US interest rates should largely benefit the dollar, however the euro may suffer. The foreign exchange strategists at Commerzbank expect a price of 1.15 dollars per euro at the end of 2015, ten cent lower than in November 2014. Yields on Germany’s ten-year government bonds (Bunds) could reach new lows in the first quarter of 2015 because of the looming government bond purchases by the ECB. But at year-end 2015, the Bund yields may be back at 1.0% again, as European government bonds could not completely decouple from the rising interest rates in the United States.

Despite the strong economy in the US in 2015, the equity markets on the Wall Street offer little upside potential because of rising interest rates there. Commerzbank’s equity strategists expect the S&P 500 to gain just 50 points to 2,100 points until the end of next year. However, the European and especially the German shares could perform better. European corporates’ profits should benefit from the decline of the euro on the FX markets. The analysts expect for the DAX 19 dividend increases and also with increasing payout ratios a record dividend payout of € 30.2 billion. In the ongoing low interest rate environment, the dividend yield should become more interesting for investors. With 3.1% for the DAX the dividend yield is about twice as high as that of corporate bonds. According to the equity experts at Commerzbank, the DAX is to rise to 10,800 points by the end of 2015, but volatility should remain high and price fluctuations may range from 9,000 to 11,000 points.

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Contact: Thomas Bonk +49 69 136-22373, t.bonk@commerzbank.com More in the web: https://www.commerzbank.com/en/hauptnavigation/research/research.html

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Forecasts Commerzbank Economic Research Growth rates of real Gross Domestic Product (GDP) in % year-on-year

***

About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2013, it generated gross revenues of more than EUR 9 billion with an average of approximately 54,000 employees.

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In the third quarterof 2014,Commerzbank has attained a good operating profit, again increased the loan volume and further improved the capital ratios. The operating profit in the Group more than trebled in the third quarter to EUR 343 million in a year-on-year comparison (third quarter of 2013: EUR 103 million). This was due above all to the improved revenues before loan loss provisions (plus 5% or plus EUR 125 million to EUR 2.4 billion) and the much lower loan loss provisions (minus 31% or minus EUR 151 million to EUR 341 million). In this period the operating expenses increased slightly to EUR 1.72 billion (third quarter of 2013: EUR 1.69 billion) as a result of the collectively-agreed salary increases and the additional expenses from increased regulatory requirements. The net profit was – at EUR 225 million – also considerably higher than in the previous year (third quarter of 2013: EUR 75 million).

In the first nine months of 2014, the operating profit in the Group was EUR 924 million and thus a good 44% higher in a year-on-year comparison (first nine months of 2013: EUR 641 million). In this respect the Bank profited above all from the lower loan loss provisions (EUR 836 million compared to EUR 1.3 billion in the first nine months of 2013). These compensated for two effects: first, the slightly lower revenues before loan loss provisions (minus 2.0% to EUR 6.9 billion) as a consequence of the portfolio run-down in the Non-Core Assets segment (NCA) and the ongoing low interest rate environment and, second, the increase of just less than 1% in operating expenses to EUR 5.15 billion. In the first nine months of 2014, Commerzbank generated a net profit of EUR 525 million. The sharp rise in a year-on-year comparison (first nine months of 2013: EUR 17 million) is also due to the restructuring expenses of EUR 493 million which were booked last year.

“In the third quarter we have continued the good development seen in the first six months. This may be seen above all in the results of the Core Bank,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank. “The growth in the Core Bank also illustrates: Our product and service range amended in line with changing customer requirements is very popular”.

CET 1 ratios increased further, slight decrease in risk-weighted assets

With the positive development of the Common Equity Tier 1 ratio (CET 1) the Bank has further extended its comfortable capital position. With the full application of Basel 3, Commerzbank posted a higher CET 1 ratio of 9.6% compared to the 9.0% seen as of end of December 2013 and the 9.4% seen as of end of June 2014: The ratio also increased in accordance with the transitional rules of Basel 3 by 0.2 percentage points to 11.8% as at the end of September 2014 (end of December 2013: 11.6%, end of June 2014: 11.7%). The risk-weighted assets as at the end of September 2014 were EUR 216 billion and thus slightly lower than the figure at the end of June (EUR 217 billion). From the third quarter of 2014 onwards, the leverage ratio will be disclosed following the revised, stricter rules of the European Union’s Capital Requirements Directive (CRD 4/CRR). Even according these rules and with the full application of Basel 3 the leverage ratio increased to 3.4 %. In the previous quarters, the leverage ratio was disclosed pursuant to the then respectively relevant calculation logic of the CRD 4/CRR. The respective leverage ratio with the full application of Basel 3 had been at 3.2% as of the end of September 2013 and at 3.3% as of end of June 2014.

In the third quarter, the Core Bank has continued the good development seen in the first six months

The Core Bank, which encompasses the strategically significant customer-centric business, attained a significantly improved year-on-year operating profit of EUR 593 million in the third quarter (third quarter of 2013: EUR 375 million). The revenues before loan loss provisions increased by 4.4% to EUR 2.3 billion thanks to the strategic progress in the Core Bank segments (third quarter of 2013: EUR 2.2 billion). In this respect, the sum of net interest and net trading income (plus 8.8% to EUR 1.5 billion) and the net commission income (plus 1.3% to EUR 788 million) developed positively. The lower loan loss provisions, which decreased by EUR 90 million year-on-year (third quarter of 2013: EUR 249 million), aided the operational development. The operating expenses in the Core Bank increased only slightly year-on-year, by 2.5% to EUR 1.643 billion (third quarter of 2013: EUR 1.603 billion). The loan volume was further increased in this period by approximately 9%. In a quarter-on-quarter comparison the Private Customers and Mittelstandsbank segments each increased their loan volume by approximately 2%.

Core Bank segments continue on growth path

The Private Customers segment continues on its growth path. In the third quarter of 2014, it again generated a good operating result of EUR 121 million. Despite the typically weaker holiday period, the operating profit was at the level seen in the two previous quarters and considerably higher in a year-on-year comparison (third quarter of 2013: EUR 41 million). The revenues before loan loss provisions in the third quarter totalled EUR 865 million and thus increased over the previous year by 5% (third quarter of 2013: EUR 825 million). This growth is due above all to the strong development in the branch bank business. In the first nine months 2014, new business in residential mortgage loans considerably grew by 28% compared to the previous year. In the same period, volumes of portfolio management products and premium custody accounts improved by 53%. The proportion of the revenues from existing customers was further increased. In the first nine months of 2014 a net total of nearly 215,000 new customers were acquired, thereof approximately 77,000 in the third quarter. The operating profit also benefited from the decline in loan loss provisions. These were EUR 16 million and thus approximately 50% lower than in the previous year (third quarter of 2013: EUR 31 million). Year-on-year the operating expenses declined considerably, by EUR 25 million to EUR 728 million, as a consequence of the job cuts that have already been communicated.

Mittelstandsbank also boosted its operating profit in the third quarter. At EUR 363 million the result surpassed the figure for the previous year by 4% (third quarter of 2013: EUR 349 million). The strong operating profit is due above all to the very low loan loss provisions. In the third quarter these were EUR 36 million and thus merely one third of the figure of EUR 106 million seen in the previous year. The revenues before loan loss provisions, in contrast, declined to EUR 742 million. In the third quarter of 2013 they had, also as a consequence of positive one-off effects from the premature repayment of a corporate loan, been EUR 790 million. At Mittelstandsbank, likewise the growth in the loan volume continued in the third quarter, increasing by approximately 10% over the previous year. In this respect it was possible to post growth in all business areas.

In the Central & Eastern Europe segment mBank continued its growth story in the third quarter of 2014. In total, the operating profit in the segment was increased over the previous year by 43% to EUR 93 million (third quarter of 2013: EUR 65 million). In this respect, it profited from the favourable development in revenues as a consequence of the continual credit growth. In the third quarter of 2014, the revenues before loan loss provisions were EUR 240 million, and thus 13% higher than in the previous year (third quarter of 2013: EUR 212 million). In the third quarter of 2014, a net sum of EUR 37 million was assigned to the loan loss provisions – a figure comparable to previous quarters (third quarter of 2013: EUR 41 million, second quarter of 2014: EUR 38 million).

Corporates & Markets achieved a strong result within a usually seasonally weak third quarter. At EUR 158 million the segment’s operating profit was considerably higher than in the same quarter of the previous year (third quarter of 2013: EUR 85 million). Revenues before loan loss provisions improved year-on-year by 5.7% amounting to EUR 486 million (third quarter of 2013: EUR 460 million). Seasonality was offset in particular by increased volatility in interest rates and currency markets which fostered client demand. Revenues in Corporate Finance benefited from the segment’s solid positioning in equities, bonds, syndicated loans, and structured solutions. Equity Markets and Commodities (EMC) sales and trading were also able to increase revenue levels year-on-year. Corporates & Markets also benefited from a benign development in loan loss provisions. In the third quarter of 2014, there were no loan loss provisions whilst in the third quarter of 2013 these amounted to EUR 43 million. Despite increased regulatory requirements operating expenses decreased slightly to EUR 328 million (third quarter of 2013: EUR 332 million) due to the investment bank’s ongoing cost discipline.

NCA: value-preserving run-down strategy consistently continued

In the third quarter the NCA segment reported an operating loss of EUR minus 250 million. This is a slight improvement in a year-on-year comparison (operating loss in the third quarter of 2013: EUR minus 272 million) and primarily due to the improved revenues before loan loss provisions (EUR 80 million compared to EUR 54 million in the third quarter of 2013). As expected, the loan loss provisions in the third quarter of 2014 were – at EUR 251 million – at around the same level seen in the same quarter of the previous year (third quarter of 2013: EUR 243 million).

The Exposure at Default (EaD) was reduced while preserving value once again in the third quarter, namely by EUR 4.4 billion or 4% to EUR 88 billion as at the end of September 2014. This is 29% less than in the previous year. The reduction in the third quarter was mainly driven by Commercial Real Estate (CRE) and Public Finance. As at the end of September, the CRE portfolio was reduced by 8% to EUR 23 billion (second quarter of 2014: EUR 24 billion) and the Public Finance portfolio by 5% to EUR 53 billion (second quarter of 2014: EUR 55 billion). In Ship Finance, the Bank agreed on the sale of nine container ships in August 2014. The EaD as at the end of September 2014 was approximately EUR 13 billion.

Outlook

“Commerzbank will continue along its growth path in the Core Bank. In this respect, the particular focus will continue to be on the loan volumes in the Private Customers and Mittelstandsbank segments. We will continue with our successful value-preserving run-down strategy in the NCA segment and reduce the portfolios in the CRE and Ship Finance segments by 2016 to approximately EUR 20 billion,” said Stephan Engels, Chief Financial Officer of Commerzbank. In addition, the Bank specifies its costs target for 2014: The operating expenses for the full year 2014 will not exceed the amount of EUR 6.9 billion. The additional investments for the implementation of our strategic agenda, and in particular for increasing regulatory costs, will be financed through ongoing cost measures. With regard to the loan loss provisions, the Bank has confirmed its amended expectation from the previous quarter that these will be noticeably lower than the total figure for 2013 (2013: EUR 1.747 billion). Commerzbank is maintaining its target of increasing the Common Equity Tier 1 ratio with full application of Basel 3 to more than 10% by 2016.

Excerpt from the consolidated profit and loss statement

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Press contact

Alexander Cordes +49 69 136-42764

Nils Happich +49 69 136-44986

Karsten Swoboda +49 69 136-22339

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2013, it generated gross revenues of more than EUR 9 billion with an average of approximately 54,000 employees.

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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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its NCA portfolio, 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.

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Commerzbank has passed both the Asset Quality Review (AQR) of the European Central Bank (ECB) as well as the stress test of the European Banking Authority (EBA). According to the results in the AQR published by the ECB, the Common Equity Tier 1 ratio (CET 1) taking into account the transitional rules of Basel 3 as of 1 January 2014 is 10.8%, and thus considerably higher than the relevant hurdle of 8.0%. “The good result of the Asset Quality Review is confirmation of the conservative valuation policy and the adequate risk provisioning of the Bank, and does not lead to any change in our expected risk provisions for 2014,” said Stefan Schmittmann, Chief Risk Officer of Commerzbank.

Taking into account the AQR results, in the baseline scenario of the stress test Commerzbank has attained a Common Equity Tier 1 ratio (CET 1) of 11.4%, which is thus also considerably higher than the hurdle of 8.0%. In the so-called adverse scenario of the stress test this Common Equity Tier 1 ratio is at 8.0%, also significantly higher than the hurdle of 5.5%. Even with the full application of Basel 3 and taking into account the AQR results, the Common Equity Tier 1 ratio in the adverse scenario of the stress test is a comfortable 6.9%.

The cut-off date for the assessment by the ECB was 31 December 2013. Since then Commerzbank has further increased its profits and consistently moved ahead with the reduction of risks. The Common Equity Tier 1 ratio pursuant to the transitional rules of Basel 3 increased to 11.7% at the end of June 2014, following on from 11.4% as of the cut-off date of 31 December 2013 for the ECB assessment. With full application of Basel 3 the Common Equity Tier 1 ratio improved as of the end of June to 9.4% (cut-off date of ECB assessment: 9.0%).

“The good result of the comprehensive assessment by the ECB is testimony to the successful reorganisation of Commerzbank in the past years and to the strength of our client-centric business model. In this respect the stress test has clearly confirmed the stability and stress resilience of the bank. The strategic orientation is correct; the implementation of the measures from our agenda through to 2016 is proceeding successfully and to schedule,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank.

Please find further information on the publication of the ECB from October 26, 2014 at www.commerzbank.de/en/hauptnavigation/aktionaere/aktuelles_2/stresstest.html.

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Pressekontakt

Simon Steiner +49 69 136-46646

Alexander Cordes +49 69 136-42764

***

About Commerzbank

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2013, it generated gross revenues of more than EUR 9 billion with an average of approximately 54,000 employees.

***

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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its NCA portfolio, 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.

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With the foundation of CommerzVentures GmbH, Commerzbank has established a corporate venture capital entity with focus on financial services. In future the wholly-owned subsidiary of Commerzbank will be investing in young companies which specialise in innovative products, services, and technologies in the field of financial services (FinTech). The regional investment focus of CommerzVentures is on Europe, whereby trends on the global level are considered. The fund, which is domiciled in Frankfurt/Main, commenced its business operations on 1 October 2014.

Commerzbank is improving its access to innovations and trends in the financial sector with the foundation of CommerzVentures. In future, CommerzVentures will invest in young companies which are mainly in the market maturity phase. The future portfolio companies are to be accompanied with follow-on financing also in the further growth phase.

Thus the business model of CommerzVentures differs from the business model of Commerzbank’s subsidiary main incubator GmbH, which was founded in March 2014. The latter conducts strategic investments in start-ups in the seed stage, which is the phase between the foundation and the market launch of products, with a strategic link to Commerbank’s business with corporate customers.

The managing directors of CommerzVentures are the venture capital managers Patrick Meisberger and Stefan Tirtey. As the managing director of T-Venture Holding GmbH, Meisberger (43) was previously responsible for the entire T-Venture portfolio. Further career milestones were Allianz Venture Partners GmbH, Deutsche Bank, and PricewaterhouseCoopers. Tirtey (45) comes from the international venture capital entity Doughty Hanson Technology Ventures, where he last held the post of principal responsible for investments in internet and mobile start-ups.

*** Press contact: Alexander Cordes +49 69 136-42764 Nils Happich +49 69 136-44986

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2013, it generated gross revenues of more than EUR 9 billion with an average of approximately 54,000 employees.

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Press contact Karsten Swoboda +49 69 136-22339

*** About Commerzbank Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2013, it generated gross revenues of more than EUR 9 billion with an average of approximately 54,000 employees.

*** 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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its NCA portfolio, 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.

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Commerzbank increased its net profit in the first half of 2014 compared to the previous year and improved the capital ratios significantly. The operating profit in the Group climbed to EUR 581 million during this period (first half of 2013: EUR 538 million). In the second quarter of 2014, the operating profit improved to EUR 257 million (second quarter of 2013: EUR 74 million). In the Core Bank, which encompasses the strategically important customer-centric business, revenues before loan loss provisions were improved in the second quarter compared to the prior year. The successful portfolio reduction in the Non-Core Assets (NCA) segment was noticeable at Group level in the first half of 2014 in particular: Here revenues fell due to portfolio sales and in unison with the reduced portfolio holdings, but at the same time the loan loss provisions also declined significantly. In total, Commerzbank boosted its net profit over the previous year to EUR 300 million (first half of 2013: EUR minus 58 million).

”In the second quarter, we increased revenues in the Core Bank over the previous year, in the operating segments we expanded business volume and raised the number of new customers. All in all, we improved the operating profit in the Group, reduced risks further, and significantly increased our capital ratios in the first half of the year. We generated a good result overall,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank.

Stable revenue trend influenced by success in reducing NCA

Revenues before loan loss provisions at the Core Bank were stable in the first half of the year at EUR 4.49 billion (first half of 2013: EUR 4.54 billion). In the second quarter of 2014 revenues before loan loss provisions increased to EUR 2.28 billion compared to the previous year (second quarter of 2013: EUR 2.25 billion). In the first half of 2014, revenues improved in the Private Customers, Mittelstandsbank and Central & Eastern Europe segments as a result of the successful growth strategies. Lending volume for the Core Bank in the first six months rose by 7% versus the same period of the previous year. In contrast, revenues before loan loss provisions for the Group fell in the first half of 2014 to EUR 4.50 billion (first half of 2013: EUR 4.77 billion); this was mostly consistent with the reduction in portfolio holdings in the NCA segment. The Group’s loan loss provisions declined significantly in the first six months compared to the same period of the previous year to EUR 495 million as a result of the drop in loan loss provisions for NCA (first half of 2013: EUR 804 million). Operating expenses at EUR 3.4 billion were stable compared to the first half of 2013. This performance is evidence of the ongoing strict cost management, as regulatory costs for carrying out the Asset Quality Review by the European Central Bank, for example, or for the implementation of the FATCA tax agreement, have climbed substantially versus the previous year.

Pre-tax profit in the first half of the year was EUR 581 million, thereby significantly exceeding the previous year’s figure (first half of 2013: EUR 45 million). In the prior-year period, we incurred restructuring expenses of EUR 493 million. Even adjusted for this one-off effect, the Bank boosted its pre-tax profit by 8% over the previous year. Pre-tax profit rose in the second quarter to EUR 257 million (second quarter of 2013: EUR 74 million). Net profit in this period improved to EUR 100 million (second quarter of 2013: EUR 40 million). This figure includes tax effects from other periods.

Key capital ratios improved further, Common Equity Tier 1 ratio with full application of Basel 3 increased to 9.4%

Risk-weighted assets (RWA) rose over the end of 2013 to EUR 217 billion as at the end of June 2014 as a consequence of the conversion effects with the coming into effect of Basel 3 in January 2014 (end of December 2013: EUR 191 billion). Compared to the end of the first quarter of 2014, however, RWA declined slightly by EUR 1.2 billion. Total assets for the Group as at the end of June 2014 rose to EUR 583 billion (end of December 2013: EUR 550 billion). Taking into account the transitional regulations of Basel 3, the Common Equity Tier 1 ratio rose to 11.7% as at the end of June 2014, which is still a comfortable level (end of March 2014: 11.3%). With full application of Basel 3, this ratio as at the end of June improved substantially to 9.4% (end of March 2014: 9.0%). The leverage ratio pursuant to the current known calculation logic of the EU’s Capital Requirements Directive (CRD 4) and taking into consideration the transitional regulations of Basel 3 was stable at 4.1% as at the end of June 2014 (end of March 2014: 4.1%). The leverage ratio with the full application of Basel 3 was unchanged at 3.3% (end of March 2014: 3.3%).

Core Bank: solid development in the Private Customers, Mittelstandsbank and Central & Eastern Europe segments

The Private Customers segment posted a good operating result in the first six months of 2014. At EUR 227 million, it was 85% above the previous year’s figure (first half of 2013: EUR 123 million). In the second quarter of 2014 alone, an operating profit of EUR 115 million was generated. Revenues before loan loss provisions climbed to EUR 1,719 million (first half of 2013: EUR 1,697 million). The higher net interest income was enough to more than offset the decline in net commission income. This increase was a result of the improved revenues, both from deposits and loans. The segment reduced its operating expenses again by 5% to EUR 1,440 million in the first half of 2014 by lowering personnel expenses (first half of 2013: EUR 1,512 million). Loan loss provisions fell to EUR 52 million in the first six months of 2014 (first half of 2013: EUR 62 million). Overall, this shows the progress made in implementing the new Private Customers strategy within the strategic agenda. The segment successfully continued on a growth path in the first half of 2014. The number of net new customers, for example, rose by 95,000 in the second quarter after rising 43,000 in the first quarter. New business in residential mortgage financing grew by 25% in the first six months of 2014 to EUR 5.0 billion, while the volume of managed accounts and the newly introduced premium accounts improved by 50% over the same period of last year to more than EUR 25 billion.

Mittelstandsbank boosted its operating profit by 12% compared to the first six months of 2013 to EUR 604 million (first half of 2013: EUR 540 million).Of this, EUR 267 million was generated in the second quarter of 2014. The increase was supported in the first half of 2014 by improved revenues and reduced costs, as well as by lower loan loss provisions. Revenues before loan loss provisions climbed by 2% to EUR 1,455 million (first half of 2013: EUR 1,422 million). Stable net interest income and slightly lower net commission income stood in contrast to a higher net trading income and increased net investment income. Loan loss provisions fell to EUR 199 million in the first six months of 2014 (first half of 2013: EUR 225 million). Operating expenses fell modestly by 1% to EUR 652 million versus the first half of 2013 (EUR 657 million). Mittelstandsbank is also making progress on its growth path. Mittelstandsbank increased the loan volume in the second quarter of 2014 by 9% over the previous year.

The Central & Eastern Europe segment achieved a very good operating profit of EUR 182 million in the first half of 2014. This is 41% more than in the year prior (first half of 2013: EUR 129 million). Of the first six month’ operating profit, the second quarter of 2014 was responsible for EUR 84 million. The main reason for the rise in the first six months was the 21% higher revenues before loan loss provisions at EUR 458 million (first half of 2013: EUR 380 million). This reflects the successful implementation of the “One Bank” strategy of mBank. Loan loss provisions rose to EUR 59 million (first half of 2013: EUR 42 million). Operating expenses climbed by 4% in the first six months of 2014 to EUR 217 million, largely as a result of the higher investment in the “One Bank” strategy and the organic growth associated with it (first half of 2013: EUR 209 million). In the first half of 2014 mBank has further improved its strong position in the Polish market and has surpassed the mark of 4.5 million customers.

Corporates & Markets benefited from its diversified business model in the first six months. The first-half operating profit adjusted for the OCS effect and corrections for counterparty risks in the derivatives business declined by 21% compared to the strong first half of 2013 to a figure of EUR 398 million (first half of 2013: EUR 505 million). The second quarter of 2014 accounted for EUR 194 million of this figure. The drop in the first half of the year was primarily due to the business with fixed-income securities, which performed in unison with the weak market environment. However, this was in part compensated by the favourable development in equities sales & trading. In total, revenues before loan loss provisions in Corporates & Markets fell by 9% to EUR 1,048 million (first half of 2013: EUR 1,153 million). Net reversals in loan loss provisions were again booked in the first half of 2014, but at EUR 14 million they were lower than during the same period of the previous year (first half of 2013: EUR 45 million). Operating expenses fell by 2% to EUR 660 million versus the first half of 2013 (EUR 672 million).

NCA: further portfolio reduction reduces risks faster than expected

In the first half of 2014 the operating loss in the NCA segment was reduced by 25% versus the same period of the year prior to EUR minus 355 million (first half of 2013: EUR minus 473 million). The second quarter of 2014 was responsible for EUR minus 183 million of this amount. The improved result over the previous year was primarily attributable to the significantly lower loan loss provisions also as a result of the Commercial Real Estate (CRE) portfolio sales, while revenues before loan loss provisions were lower due to the CRE portfolio sales and the ongoing reduction of the portfolio. At EUR 8 million in the first six months of 2014, this was well below the prior-year period (first half of 2013: EUR 227 million). Loan loss provisions decreased by 62% compared to the previous year to EUR 199 million (first half of 2013: EUR 522 million). Operating expenses were reduced by 8% to EUR 164 million versus the first half of 2013.

The Bank also maintained the pace of portfolio reduction in the first half of 2014: The exposure at default (EaD) was reduced across all areas versus the fourth quarter of 2013. In particular, Commerzbank sold its CRE portfolios in Spain and Japan as well as the non-performing CRE loan portfolio in Portugal, including the relevant interest rate hedging derivatives. The transactions included commercial real estate loans totalling EUR 5.1 billion. The Bank assessed EUR 1.4 billion of this amount as non-performing loans (Spain: EUR 1.1 billion, Portugal: EUR 0.3 billion). These sales had a negative impact on the result for the Bank of EUR 71 million in the second quarter of 2014. These transactions led to a positive net capital effect of more than EUR 200 million. With these transactions, the risk profile of the CRE loan portfolio has improved significantly as well. The portfolio of loans with a higher risk cluster rating by the Bank in the area of CRE has been almost entirely reduced, thanks to the sales.

The EaD of the NCA segment at the end of June 2014 was EUR 92 billion; this is 21% below the figure from the end of 2013 and 32% lower than at the first half of 2013 (fourth quarter 2013: EUR 116 billion, first half of 2013: EUR 136 billion). The original NCA reduction target of EUR 93 billion for 2016 was therefore already reached this year in all NCA areas.

The EaD in the CRE segment as at the end of June 2014 was EUR 24 billion. This is 31% less than at the end of the year and 49% less than in the same quarter of the previous year (second quarter of 2013: EUR 48 billion). In the area of ship finance, the Bank reduced its portfolio in the first half of 2014 by EUR 1.5 billion compared to the end of 2013. At the end of June 2014 it was EUR 13 billion. This is 24% less than in the year prior (second quarter of 2013: EUR 17 billion). The portfolio of public finance assets in the NCA segment declined to EUR 55 billion as at the end of June 2014 (fourth quarter of 2013: EUR 66 billion, second quarter of 2013: EUR 71 billion).

Outlook

“We will continue along our growth path in the Core Bank as announced, and we will do so with a particular focus on the lending volume in the Private Customers and Mittelstandsbank segments. At the same time, we will continue with our successful value-preserving run-down strategy in the Non-Core Assets segment. Given the faster than planned progress of reduction, we have raised our current reduction target of EUR 75 billion for 2016 once again. By value preserving accelerated run-down the portfolios in the areas of CRE and ship finance together should be reduced to approximately EUR 20 billion. The public finance portfolios will decrease to EUR 47 billion according to natural maturities,” said Stephan Engels, Chief Financial Officer of Commerzbank. The Bank is also maintaining its cost target: Operating expenses for the full year should not exceed EUR 7.0 billion. The additional investments for the implementation of the strategic agenda, and in particular increasing regulatory costs, will be financed through ongoing cost measures. Expectations in terms of loan loss provisions for 2014 are being adjusted and in the current year should now be well below the total figure for 2013. Commerzbank is maintaining its target of increasing the Common Equity Tier 1 ratio with full application of Basel 3 to over 10% by 2016.

Excerpt from the consolidated profit and loss statement

***

At www.media-hoster.com you will find broadcast-ready video and audio material with statements by CFO Stephan Engels from approximately 7.00 a.m. onwards.

The videos can be viewed directly using mobile end devices: http://www.media-hoster.com/commerzbank/q2en

*** Press contact Simon Steiner +49 69 136-46646 Karsten Swoboda +49 69 136-22339 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks and is on its way to become a modern multichannel bank. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate customers. In 2013, it generated revenues of more than EUR 9 billion with approximately 54,000 employees on average.

*** 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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its NCA portfolio, 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.

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ComStage, the ETF brand of Germany’s Commerzbank, has launched two new funds which invest in American or Japanese equities, providing investors with daily protection against currency exchange risks.

The funds invest in the MSCI Japan and S&P500 in a way that seeks to protect investors from the impact of fluctuations between the base currency of the fund – euro – and the currency denomination of the underlying indices – yen or U.S. dollar. The ETFs are hedged against currency movements on a daily basis.

"When making equity investments in foreign markets, many investors want to achieve risk diversification, but do not want to be exposed to volatile FX rate changes," said Thomas Meyer zu Drewer, who heads the ETF ComStage business at Commerzbank.

One way to protect against exchange rate deterioration is via ETFs with currency hedging. This is now being offered through the ComStage MSCI Japan 100% Hedged EUR Daily UCITS ETF (WKN: ETF025, ISIN: LU1033694107) and the ComStage S&P 500 Euro Hedged Daily Net TR UCITS ETF (WKN: ETF014, ISIN: LU1033694362). Both ETFs started to be listed on German stock exchanges on Friday.

"These new ETFs will offer investors protection from currency movements against the euro for their investments in Japan and the USA," Meyer zu Drewer explains. For this purpose, the performance of the two underlying indices will be directly converted into euros on a daily basis. "As the euro is simultaneously fund and trading currency, investors no longer have to worry about the price movements of the U.S. dollar or the yen against the euro," said Meyer zu Drewer.

All 98 ComStage ETFs can be bought and sold on the German stock exchanges Xetra, Frankfurt and Stuttgart, as well as over the counter at online banks. When trading the two ComStage UCITS ETF on the stock exchange or in the OTC market no extra sales charge will be billed. However, transactions are subject to the usual costs of the relevant custodian. The flat fees of the new daily currency-hedged ETFs amount to 0.45 percent per year for Japan and 0.30 percent per year for the S&P500. Net dividends are reinvested in the funds.

At a glance:

ComStage MSCI Japan 100% Daily Hedged Euro UCITS ETF

ComStage S&P 500 Euro Daily Hedged Net TR UCITS ETF

Contact for the media: Tim Seifert +49 69 136 81771 tim.seifert@commerzbank.com Thomas Bonk +49 69 136 22373 t.bonk@commerzbank.com

About Commerzbank Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks and is on its way to become a modern multichannel bank. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate customers. In 2013, it generated revenues of more than EUR 9 billion with approximately 54,000 employees on average.

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Commerzbank has signed agreements on the sale of its CRE portfolios in Spain and Japan including the relevant interest-rate hedging derivatives, as well as the non-performing CRE loan portfolio in Portugal. The transactions include commercial real-estate loans totalling EUR 5.1 billion. Thereof, the Bank classifies EUR 1.4 billion as non-performing loans (Spain: EUR 1.1 billion, Portugal: EUR 0.3 billion). The sold portfolios account for approximately 16 % of the remaining commercial real-estate loans of EUR 32 billion still held by Commerzbank as of the end of March 2014. The platform in Spain as well as in Japan, and thus also the respective employees, are being transferred to an affiliate of Lone Star (Spain) and to PAG (Japan). It was agreed to maintain confidentiality on further details of the agreements.

The portfolio of CRE loans in Spain and the non-performing CRE loans in Portugal with a total volume of EUR 4.4 billion are being sold to a consortium comprising JP Morgan and Lone Star. The CRE perfoming book in Portugal remains with Commerzbank.

In Japan the Bank has sold its subsidiary Commerz Japan Real Estate Finance Corporation to PAG’s Secured Capital REP V and Pacific Alliance Special Situations funds. Thereby, the primarily subordinated loans held by this subsidiary which are totalling EUR 0.7 billion are being transferred to the buyer accordingly. They are classified by the Bank as higher risk cluster loans. The portfolio will be managed by PAG’s Tokyo-based Secured Capital Investment Management.

The Bank expects that there will be a negative impact of approximately EUR 100 million on earnings in the Non-Core Assets segment in the second quarter of 2014 as a result of the transactions. However, based on the considerable reduction of EUR 3.2 billion in risk-weighted assets (RWA) the transactions will lead to a total positive net capital effect of approximately EUR 200 million. Overall the sales have a positive effect on the core capital position of Commerzbank. Also the reduction targets will be positively influenced by these transactions. The Bank will give an update on the reduction targets in its financial statements for the second quarter.

The risk profile of the CRE loan book has improved significantly with the transactions. The portfolio of loans in the CRE segment which the Bank classifies as “higher risk cluster” is being almost run down in full following the sales. In addition, the volume of CRE non-performing loans is being reduced by nearly a third as a result of the transactions (portfolio as of the end of March 2014: EUR 5.1 billion).

“These transactions are further evidence that we remain committed to our value-preserving run-down strategy. In Spain we were able to take full advantage of the excellent market opportunity, thereby reducing significantly the earnings impact through an auction process,” said Sascha Klaus, Divisional Board Member Non-Core Assets Commercial Real Estate. “With the sale in Japan we have disposed of our only CRE portfolio composed of subordinated loans. At the same time we have further reduced complexity, as this was our last remaining CRE operation outside Europe”.

***

Martin Halusa +49 69 136-85331

Nils Happich +49 69 136-44986

***

About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks and is on its way to become a modern multichannel bank. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate customers. In 2013, it generated revenues of more than EUR 9 billion with approximately 54,000 employees on average.

***

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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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.

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Commerzbank posted double-digit growth in 2013 in its Corporate Banking business in Asia. In the framework of favourable market conditions, revenues increased by 17 percent. The number of clients also grew year-on-year by 13 percent to approximately 1,800 clients. “We were able to reach our main growth targets last year. Following our success we will continue to work on the further development of our business model in the world’s strongest-growing region,” said Edith Weymayr, regional board member Asia for the Corporate Banking business, when speaking to journalists in Beijing on Tuesday. This success is also reflected in the number of Commerzbank employees in Asia, which increased by 4 percent year-on-year. For 2014 the Bank is once again aiming to reach double-digit growth in revenues.

China is one of the most important markets for the corporate banking business ofCommerzbank. The Bank has been represented in Asia for more than 50 years, with the first representative office in China opening 30 years ago. Corporate Banking is present with six branches in Asia: Shanghai, Beijing, Hong Kong, Tianjin, Singapore, and Tokyo. In addition to the intensification of its business with corporate clients in Germany, Commerzbank is also geared towards international expansion through cooperations with other banks. In 2013, a cooperation with Thailand’s Kasikornbank was signed by Commerzbank. In March of this year further cooperation agreements were achieved with two Indian banks. In addition, since the beginning of the year Commerzbank has opened five new branches in Switzerland and plans to open an office in São Paulo next year. In total Commerzbank is represented in more than 70 locations in over 50 countries and has a network of approximately 5,000 correspondent banks worldwide.

As well as its Corporate Banking business, Commerzbank is present in Asia with its investment banking arm Corporates & Markets (CM), servicing both corporate clients and financial institutions. For corporate clients CM provides advisory services, access to funding via the capital markets, asset and liability management services across asset classes as well as supporting clients with their international expansion plans. Additionally CM provides mergers & acquisitions (M&A) insights and expertise to clients in Asia.

Commerzbank was active as Joint Bookrunner on Kreditanstalt für Wiederaufbau’s (KfW) CNY 1 billion 2-year bond listed on the regulated market of the Frankfurt Stock Exchange. “The successful placement of the first Frankfurt-listed RMB-bond is an important step of Frankfurt as a financial centre. We expect that the evolution of the renminbi market in Frankfurt will strengthen business and economic ties between Germany and China,” said Nick Johnston, head of Commerzbank’s investment banking business in Asia. “We envisage further issuance in renminbi from German corporates as well as international financials using the new hub,” added Johnston.

CM actively participates in China’s financial markets, both onshore and offshore, and has achieved a number of notable successes in 2014:

Commerzbank Asia focuses on accompanying corporate clients with strong economic ties between China and Europe. Given its product, industry and local market know-how Corporate Banking, together with Corporates & Markets, also supports Chinese companies who have business activities in Europe.

Contact Martin Halusa: +49 69 136-85331 Claire Tappenden: +44 20 74755161

* 2013 data based on Rated Bonds. Source Bloomberg.

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.

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The shareholders voted as follows on the fundamental items on the agenda:

Resolution on the use of the profit shown on the balance sheet (item 2)

The Annual General Meeting has voted, as proposed by the Board of Managing Directors and Supervisory Board, with a majority of 99.9% to allocate the profit on the balance sheet shown in the annual financial statements for the financial year 2013 to the amount of approximately EUR 83.1 million completely to the profit reserves.

Discharge (items 3 and 4)

The members of the Board of Managing Directors and Supervisory Board were discharged with an majority of 99.5% and 99.0%, respectively.

New election of two members to the Supervisory Board and of one substitute member (item 7)

The Annual General Meeting has, as proposed by theSupervisory Board, elected Dr. Stefan Lippe and Nicholas Teller to the Supervisory Board of Commerzbank AG with a majority of 99.8% and 99.7% of the votes, respectively. Solms U. Wittig was also elected, with 99.8% of the votes by the Annual General Meeting, as the substitute member for the two new members of the Supervisory Board.

The Supervisory Board member Prof. Dr. Dr. Hans-Peter Keitel has left the Supervisory Board with the conclusion of the 2014 Annual General Meeting.

Resolution on the approval of amending agreements to nine Domination and Profit and Loss Transfer Agreements as well as Profit and Loss Transfer Agreements (item 8) and of an amending agreement for the purpose of restating one Profit and Loss Transfer Agreement (item 9)

The Annual General Meeting has, with a majority of 99.9%, approved the clarifying amendment of corporate group agreements with a total of ten subsidiaries. This had become necessary with a change in the German Corporation Tax Act (KStG). The corporate group agreements contain the required agreement on loss transfer pursuant to § 302 German Stock Corporation Act (AktG) for a fiscal unit. The reference in the agreements to the provisions of § 302 AktG will now be dynamic (“in its respective valid version”) with the approval of the Annual General Meeting.

Under item 9 the necessary adjustment as described above was utilised to restate as a whole a very old Profit and Loss Transfer Agreement with Atlas Vermögensverwaltungsgesellschaft mbH. The clarifying amendment and the restatement were approved by the Annual General Meeting with a majority of 99.9%.

The precise voting results on the individual items on the agenda are to be found at www.commerzbank.com/agm.

*** Press contact Nils Happich +49 69 136-44986 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks and is on its way to become a modern multichannel bank. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate customers. In 2013, it generated revenues of more than 9 billion euros with approximately 54,000 employees on average.

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At today’s Ordinary Annual General Meeting the shareholders of Commerzbank are deciding on the following fundamental items on the agenda: The Board of Managing Directors and the Supervisory Board have pro-posed to allocate the profit on the balance sheet shown in the annual financial statements for the financial year 2013 to the profit reserves. Furthermore, the election of two members to the Supervisory Board is sched-uled. In this regard, Dr. Stefan Lippe and Nicholas Teller have been proposed for election. In addition, the shareholders are voting on an amendment of ten corporate group agreements with subsidiaries. A change in the German Corporation Income Tax Act makes a clarifying amendment necessary. The shareholders’ meeting is taking place at Messehalle 11 (Portalhaus) in Frankfurt/Main.

Klaus-Peter Müller, Chairman of the Supervisory Board of Commerzbank, said prior to the Annual General Meeting:

“Developments in 2013 show: Commerzbank is on the right track. Thanks to the strategic measures, which have already been implemented, the Bank is in a very good position to better use its strengths in the future”.

Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank:

“In the past twelve months Commerzbank has made important achievements. It has strengthened its capital considerably and has reduced risks to a massive extent. As of 31 December 2013 we have increased the Common Equity Tier 1 ratio to 9 per cent – namely pursuant to the fully phased-in requirements of the future Basel 3 world. In addition, we have made very good progress with the run-down of the non-strategic assets in the Non-Core Assets segment. In total, we have reduced this portfolio by 35 billion euros in 2013 while preserving value. And our Private Customers segment is making very good progress. Instead of the slight profit previously announced, we have now attained a clearly positive result. Our mBank subsidiary is also seeing growth. Mittelstandsbank remains a success story. Here we continue to have a strong positioning. We have seen a clear increase in loans. Our loan growth was considerably higher than the market average. And we were able to increase the deposit volume to a greater extent than planned. We are also very pleased with the earnings contribution made by Corporates & Markets. Our modern, customer-centric investment bank serves many competitors as a role model for the restructuring of their capital market business”.

In the financial year 2013 Commerzbank attained a solid operating profit of 725 million euros (2012: 1,170 million euros) despite a difficult market environment. The Core Bank generated an operating profit of 1.8 billion euros. The net profit improved to 78 million euros (2012: minus 47 million euros). In the framework of a capital increase Commerzbank received approximately 2.5 billion euros, and used this to redeem in full and ahead of schedule the silent participations of the Financial Market Stabilisation Fund (SoFFin) and Allianz. At the same time SoFFin reduced its stake in the Bank from 25% to approximately 17% in the framework of the transaction.

“We are well positioned and prepared for the future. In 2014 we will see further growth in all segments of the Core Bank. We will perform better in the current year than in 2013. We have overachieved our short-term objectives for the run-down of risks and the consolidation of the capital. Yet this success does not mean that we will rest on our laurels. For this reason we increased two new targets in February 2014. Firstly, we intend to run down the NCA portfolio more quickly than originally planned. The new target for the end of 2016 is approximately 75 billion euros. Secondly, we will increase our core capital to an even greater degree. Our Common Equity Tier 1 ratio is to increase to more than 10% by 2016. Namely with the full application of Basel 3,” added Blessing.

“Our objective is clear: We intend to become a bank that combines modern technologies with traditional values. In business with private customers, for example, we are uniting these in our multichannel bank, namely a modern branch with the extensive offering of a direct bank. And our Mittelstandsbank is also built on a long tradition. We have been the partner for companies in Germany for 140 years already. Here we are now the undisputed market leader – and we want our customers to remain satisfied. We accompany our customers abroad, for example, and develop new core markets. In addition, our Corporates & Markets segment is working closely at all levels with the Private Customers and Mittelstandsbank segments. And this has proved to be a success. Thanks to our international network, our know-how on the capital market and our customised solutions, we are creating clear benefits for our customers,” added Blessing.

Under www.commerzbank.com/agm you can find the agenda and other documents on the Annual General Meeting, as well as a link for the live broadcast of the speeches by the Chairman of the Supervisory Board and the Chairman of the Board of Managing Directors.

*** Press contact Nils Happich +49 69 136-44986 Kathrin Wetzel +49 69 136-44011

*** About Commerzbank Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks and is on its way to become a modern multichannel bank. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate customers. In 2013, it generated revenues of more than 9 billion euros with approximately 54,000 employees on average.

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In the first quarter of 2014 Commerzbank increased the net profit over the previous year and made further progress with the reduction of non-strategic portfolios. The operating profit in the Group in the first three months of 2014 was EUR 324 million (first quarter of 2013: EUR 464 million). Overall, the portfolio reduction in the Non-Core Assets (NCA) segment led to declining revenues. This outweighed the positive development in loan loss provisions and costs. In the Core Bank, which encompasses the strategically important customer-centric business, Commerzbank attained an operating profit of EUR 496 million (first quarter of 2013: EUR 550 million). All respective business segments increased their operating result in a quarter-on-quarter comparison (fourth quarter of 2013: EUR 419 million). Compared to the previous year, the revenues remained on a comparable level in the Core Bank despite a clear decrease in deposit margins and in spite of the difficult environment for capital market-related business. All in all, Commerzbank increased its net profit over the previous year to EUR 200 million (first quarter of 2013: EUR minus 98 million).

“In the first quarter of 2014 we have, as announced, seen further growth at the Core Bank in terms of customers, the loan volume, and assets under management. In the strategic customer-centric business we have attained a robust result. This shows that we are on the right course,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank.

Stable revenues before loan loss provisions

The revenues before loan loss provisions saw a stable development in the first quarter of 2014. In the Group these were EUR 2.26 billion (first quarter of 2013: EUR 2.46 billion, fourth quarter of 2013: EUR 2.23 billion). In the Core Bank revenues before loan loss provisions of EUR 2.22 billion were generated in the first quarter, following EUR 2.28 billion in the first quarter 2013 and EUR 2.15 billion in the fourth quarter of 2013. In comparison to the previous year, revenues were tangibly increased in the Private Customers and Central & Eastern Europe segments as a consequence of the growth strategies. Compared to the fourth quarter of 2013, the Bank increased revenues in all business segments. As expected the loan loss provisions in the Group in the first quarter of 2014 were at a low level which was comparable with the previous year. They stood at EUR 238 million (first quarter of 2013: EUR 267 million). The operating expenses, at nearly EUR 1.7 billion, remained stable at the level seen in previous quarters. This development is testimony to ongoing strict cost management as regulatory costs, for example for the conduct of the Asset Quality Review of the European Central Bank, have increased considerably over the previous year.

Key capital ratios remain at a comfortable level

As of the end of March 2014 risk-weighted assets (RWA) increased significantly over the end of 2013 to EUR 218 billion as a consequence of the conversion effects with the coming into effect of the Basel 3 regulations as of 1 January 2014 (end of December 2013: EUR 191 billion). The Basel 3 effect has thus materialised to the extent expected by the Bank. The balance sheet total in the Group increased as of the end of March 2014 to EUR 574 billion (end of December 2013: EUR 550 billion). Taking into account the transitional regulations of Basel 3, the Common Equity Tier 1 ratio as of the end of March 2014 was 11.3 %. This is as a result of the gradual introduction of the regulations as of January 2014. The ratio thus remained at a comfortable level. With the full application of Basel 3, the ratio as of the end of March would have been stable at 9.0 %. As of the end of March 2014, the leverage ratio pursuant to thecurrent known calculation logic of the EU’s Capital Requirements Directive (CRD 4) and taking into account the transitional regulations of Basel 3 was 4.1 % (end of December 2013: 4.3 %). The leverage ratio with full application of Basel 3 remained stable at 3.3 % (end of December 2013: 3.3 %).

Core Bank: encouraging development in the Private Customers and Central & Eastern Europe segments, revenues in capital market-related areas under pressure

In the Private Customers segment operating profit saw a pleasing development in the first quarter of 2014. At EUR 112 million it was 62 % higher in a year-on-year comparison (first quarter of 2013: EUR 69 million). The decisive factors here were the increase in revenues before loan loss provisions and successful cost management. Thus revenues increased to EUR 874 million (first quarter of 2013: EUR 858 million). In this respect the share of recurring revenues in the securities business, and thus revenue quality, improved. The Bank reduced operating expenses again, from EUR 754 million in the first quarter 2013 to EUR 726 million in the first quarter of 2014. In the first quarter of 2013 loan loss provisions were EUR 36 million and therefore at a similar level to that seen in the previous year (first quarter of 2013: EUR 35 million). All this shows that the Private Customers strategy and the business reorganisation which continued in the past year are bearing fruit. Furthermore, the segment has continued its growth path in the first quarter of 2014. The number of net new customers increased in this period by nearly 43,000. New business in residential mortgage financing rose by 30 % to EUR 2.3 billion in the first quarter of 2014, the assets in premium and managed accounts increased in a year-on-year comparison by nearly 50 %, to approximately EUR 24 billion.

Mittelstandsbank increased its operating profit by 4 % to EUR 337 million compared to the same quarter of the previous year (first quarter of 2013: EUR 325 million). The revenues before loan loss provisions decreased slightly to EUR 715 million as a consequence of the low level of interest rates and lower customer activity in the current market environment. The loan loss provisions in the first quarter of 2014 were, at EUR 57 million, significantly lower than the level seen in the previous year, however (first quarter of 2013: EUR 78 million). Thanks to strict cost management, operating expenses remained stable over the first quarter of 2013 at EUR 321 million. Mittelstandsbank is also making progress on its growth path. The Bank increased the loan volume in the first quarter of 2014 over the previous year by EUR 4.5 billion. Of this sum approximately EUR 2.6 billion was accounted for by loans to Germany’s Mittelstand.

The Central & Eastern Europe segment attained a very good operating profit of EUR 98 million. This is approximately 30 % more than in the previous year (first quarter of 2013: EUR 75 million). The key factor here was the significantly higher revenues before loan loss provisions (up 21 % to EUR 224 million). This development already reflects the successful implementation of the “One Bank” strategy of mBank. Loan loss provisions increased to EUR 21 million (first quarter of 2013: EUR 6 million). In spite of the investments in the “One Bank” strategy and the organic growth of mBank, it was possible to maintain operating expenses at a stable level of EUR 105 million (first quarter of 2013: EUR 104 million). Customers also continue to find mBank attractive: in the first quarter of 2014 the Bank acquired nearly 60,000 net new customers.

In the Corporates & Markets segment operating profit declined year-on-year to EUR 215 million (first quarter of 2013: EUR 272 million). The key factor for this development was the fall in fixed income and currencies sales and trading, which suffered from the challenging market environment. This could only be partially compensated for by the favourable development in equities sales & trading. Revenues before loan loss provisions in Corporates & Markets declined by 7 %, to EUR 542 million (first quarter of 2013: EUR 584 million). Net reversals in loan loss provisions were again booked in the first quarter of 2014 at EUR 9 million However, they were lower than in the same quarter of the previous year (EUR 26 million). The operating expenses remained flat at EUR 336 million (first quarter of 2013: EUR 338 million) with a number of cost initiatives compensating for the cost burden stemming from increased regulation.

NCA: portfolio reduction in Public Finance supported by transfer of high-quality securities and bonds to the liquidity portfolio in the Core Bank

The NCA segment posted an operating loss of EUR minus 172 million in the first quarter of 2014 (first quarter of 2013: EUR minus 86 million, fourth quarter of 2013: EUR minus 329 million). The main reason for the year-on-year downturn was lower revenues before loan loss provisions as a result of the ongoing portfolio run-down. In the first quarter these were considerably lower than in the previous year and amounted to EUR 44 million (first quarter of 2013: EUR 172 million). The loan loss provisions declined over the previous year to EUR 134 million (first quarter of 2013: EUR 175 million). The operating expenses were reduced slightly compared to the first quarter of 2013 to EUR 82 million.

The Bank also maintained the pace of portfolio reduction in the first quarter of 2014: The Exposure at Default (EaD) was reduced across all areas in a year-on-year comparison. The capital-accretive run-down amounted to EUR 5 billion. Furthermore, the portfolio reduction in Public Finance was supported by the transfer of high-quality securities and bonds from the NCA portfolio to the liquidity portfolio in the Core Bank. These securities and bonds will predominantly mature before the end of 2016. Therefore, this transaction does not change the Bank’s assumptions regarding the NCA reduction target for the year 2016 of approximately EUR 75 billion. The transferred securities and bonds correspond to the high regulatory requirements placed on the liquidity portfolio. Without a transfer, the Bank would have had to acquire equivalent instruments for the liquidity portfolio externally. The transferred portfolio has a volume of approximately EUR 9 billion. Thus, as of the end of March 2014 the EaD of the NCA segment was EUR 102 billion – and therefore 12 % lower than the previous quarter and 29 % lower compared to the same quarter of the previous year (fourth quarter of 2013: EUR 116 billion, first quarter of 2013: EUR 143 billion).

As of the end of March 2014 the EaD in CRE was EUR 32 billion. This is 37 % lower than in the same quarter of the previous year (first quarter of 2013: EUR 51 billion). The Ship Finance portfolio was reduced by EUR 900 million in the first quarter of 2014 compared to the previous quarter to EUR 13.5 billion. This is 26 % less than in the previous year (first quarter of 2013: EUR 18 billion). The EaD in Public Finance declined as of the end of March 2014 to EUR 56 billion (end of December 2013: EUR 66 billion).

The Bank recently sold the bulk of its commercial real-estate loans in the USA with a total volume of EUR 830 million to various American financial investors. Following these transactions, the New York branch of Hypothekenbank Frankfurt was closed as of the end of March 2014. It was agreed that confidentiality be maintained on further details of the transactions. Approximately EUR 700 million of the sold portfolios are already included in the portfolio run-down for the first quarter. In the first quarter of 2014 these transactions led to a minor charge on revenues. As a consequence of the reduction of risk-weighted assets by EUR 390 million as a result of the portfolio sales, there is a positive net capital release effect of approximately EUR 20 million for Commerzbank.

Outlook

“We will continue along our growth path in the Core Bank as announced – despite weak demand for loans, customer reticence, and the low interest-rate environment. At the same time we will continue with our successful, value-preserving run-down strategy in the Non-Core Assets segment,” said Stephan Engels, Chief Financial Officer of Commerzbank. The Bank is also maintaining its cost target: in the year as a whole operating expenses are not to exceed EUR 7.0 billion. The additional investments for the implementation of the strategic agenda and increasing regulatory costs will be financed through cost measures. The loan loss provisions in 2014 are to be lower than the total figure for 2013. Commerzbank sticks to its target and plans to increase the Common Equity Tier 1 ratio with the full application of Basel 3 to more than 10 % by 2016.

Excerpt from the consolidated profit and loss statement

***

At www.media-hoster.com you will find broadcast-ready video and audio material with statements by CFO Stephan Engels from approximately 7.00 a.m. onwards.

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*** Press contact Simon Steiner +49 69 136-46646 Nils Happich +49 69 136-44986 Karsten Swoboda +49 69 136-22339

*** 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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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.

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The following additional items on the agenda should be emphasised:

Resolution on the use of the profit shown on the balance sheet (item 2)

The Board of Managing Directors and the Supervisory Board propose to allocate the profit on the balance sheet shown in the annual financial statements for the fiscal year 2013 in the amount of approximately EUR 83.1 million completely to the profit reserves.

New election of two members and of one substitute member in the Supervisory Board (item 7)

As already announced on 19 March 2014 new members of the Supervisory Board are to be proposed for election to the Annual General Meeting. The personnel changes on the Supervisory Board will be necessary as Prof. Dr. Dr. Hans-Peter Keitel has resigned from his Supervisory Board mandate as of the end of the 2014 Annual General Meeting. In addition, Dr. Marcus Schenck had already resigned from his position as a member of the Supervisory Board with effect as of 10 September 2013. For this reason, the Supervisory Board of Commerzbank has decided to propose to the 2014 Annual General Meeting that Dr. Stefan Lippe be elected to the Supervisory Board as the successor to Dr. Marcus Schenck and Nicholas Teller as the successor to Prof. Dr. Dr. Hans-Peter Keitel. Dr. Stefan Lippe is a former President of the Management of Swiss Re AG and a member of the Administrative Board of AXA S.A. Nicholas R. Teller is the Chief Executive Officer of E.R. Capital Holding GmbH & Cie. KG.

With the election of Dr. Stefan Lippe, Solms U. Wittig, who had joined the Supervisory Board as the substitute member for Dr. Marcus Schenck, will automatically become the substitute member for the incumbent members of the Supervisory Board once more. He is also to be elected by the Annual General Meeting as a substitute member for the two new candidates.

Resolution on approval of amending agreements to nine Domination and Profit and Loss Transfer Agreements as well as Profit and Loss Transfer Agreements (item 8) and of an amending agreement for the purpose of restating of one Profit and Loss Transfer Agreement (item 9)

A change in the German Corporate Income Tax Act (KStG) makes a clarifying amendment to corporate group agreements with a total of ten subsidiaries necessary. The corporate group agreements contain the required agreement on the assumption of losses by Commerzbank pursuant to § 302 German Stock Corporations Act (AktG) for tax purposes. The reference in the agreements to the provisions of Art. 302 AktG now has to be dynamic (“in the respectively valid version”). Under item 8 and item 9, therefore, the consent of the Annual General Meeting is to be granted on the corresponding amendment agreements between Commerzbank and the subsidiaries. Under item 9 the necessary adjustment is being utilised to restate as a whole a very old Profit and Loss Transfer Agreement.

Shareholders, who have registered by the end of 1 May 2014 at the latest, are entitled to participate in the Annual General Meeting and exercise their right to vote. Excerpts of Commerzbank’s Annual General Meeting can be followed live on the internet beginning at 10.00 a.m. on 8 May 2014. Access will be provided at www.commerzbank.com/agm.

The complete text of the invitation to the 2014 Annual General Meeting, including the agenda and the explanatory notes to the individual items, can also be found at www.commerzbank.com/agm.

***

Press contact Nils Happich +49 69 136-44986 Kathrin Wetzel +49 69 136-44011

***

About Commerzbank

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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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.

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In 2013, Commerzbank posted a total operating profit of EUR 725 million. In the Core Bank an operating profit of EUR 1.8 billion was attained in an ongoing challenging market environment. Commerzbank’s net profit stood at EUR 78 million in 2013; this sum includes restructuring expenses of around EUR 500 million in connection with the job reductions within the Group.

“For us, 2013 was dominated by the implementation of our strategic agenda. The measures we have brought in will over the coming years align our business model with the altered operating environment in the financial sector. We have made progress – faster than planned in some areas – on all three of our strategic focuses: “investing in the earnings power of the core business”, “rigorous cost management” and “optimising the capital base”, and we have hit some key milestones”, said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank in the 2013 Annual Report submitted today.

Commerzbank made good progress in implementing its strategic agenda in 2013. In Private Customer business, the Bank last year drove forward its strategic repositioning and modernisation with the aim of becoming the leading multi-channel bank. Commerzbank fundamentally overhauled its range of products and services and focused consistently on the values of “fairness and competence”. The ongoing independent customer satisfaction surveys, alongside the growth in customer numbers, account numbers and asset volumes, signal that the Bank is on the right track. The positioning of the Mittelstandsbank remains strong. The Bank defied the market trend to increase lending volumes with small and medium-sized German customers in 2013. It further improved the already high market shares in export payments and the processing of documentary credits. These successes helped to make up in part at least for the heavy pressure on earnings caused by interest rates. Also in the core market of Poland Commerzbank further reinforced the market position during 2013. The new mBank, which came into being during the year under review as a result of the merger of the previously independent BRE Bank Group brands, gives Commerzbank the most modern bank in the direct banking field. Corporates & Markets posted its best results since 2010. Business performance benefited both from the positive market environment and from implementation of the measures under the strategic agenda, with further improvements to both trading platforms and advisory capabilities.

The capital measure approved in April 2013 was used to repay the SoFFin and Allianz silent participations in full. The Bank has thus repaid early all the constituent parts of the government aid that it is able to redeem by itself. Successes also came from a further reduction of the non-strategic commercial real estate portfolio and the shipping portfolio. Here Commerzbank made faster progress than planned and also generated a positive capital effect.

“In 2013 we further improved our capital base. We reached the Basel 3 core Tier 1 ratio on a “fully phased-in” basis of 9% already as at end-2013 – one year ahead of schedule. We are aiming for a Basel 3 ratio of more than 10% by the end of 2016. The leverage ratio under the Basel 3 Capital Requirements Directive (CRD IV, phased-in), which is increasingly coming under the scrutiny of banking supervisors and analysts, measures the ratio of regulatory capital to total assets. It stood at 4.3% on the reporting date, comfortably above the minimum of 3% that will apply from 2018”, said Martin Blessing.

The individual financial statements of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) show a net profit of EUR 166 million for 2013. In the context of a persistently difficult market environment and mounting regulatory requirements, capital strengthening is Commerzbank’s highest priority. Therefore no dividend will be paid out for 2013. Detailed information about the monetary remuneration of the board members can be found in the remuneration report (pages 29 to 39). The number of employees of the Commerzbank Group as of the end of December 2013 was 52,944 (page 86).

Outlook

Given that the operating environment remains difficult for financial institutions, 2014 is likely to be another challenging year. Nevertheless, Commerzbank expects a year-on-year improvement in the operating profit.

The full version of the 2013 Annual Report is to be found on the internet.

*** Press contact Nils Happich +49 69 136-44986 Karsten Swoboda +49 69 136-22339

***

About Commerzbank

The 2013 Annual Report is to be found in the internet under: www.commerzbank.com/annualreport2013

***

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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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.

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In the 2013 business year, Commerzbank has increased net profit, further reduced risks, and increased the relevant equity ratios more quickly than planned. Despite a difficult market environment, a solid operating profit of EUR 725 million (2012: EUR 1,170 million) was attained. The revenues before loan loss provisions were lower, above all, as a consequence of the weaker interest rate environment, declining to EUR 9.3 billion (2012: EUR 9.9 billion). The loan loss provisions increased as expected to EUR 1,747 million (2012: EUR 1,660 million). Despite additional investments, the operating expenses were lowered to EUR 6.8 billion (2012: EUR 7.0 billion) thanks to active cost management. The net profit improved to EUR 78 million (2012: minus EUR 47 million); this sum includes restructuring expenses of EUR 493 million.

In the Core Bank an operating profit of EUR 1.8 billion was attained in a challenging environment in 2013 (2012: EUR 2.5 billion). The downturn was due not only to the weaker market environment, but above all to the increase in loan loss provisions at Mittelstandsbank. The operating return on equity in the Core Bank was 9.5%.

“In the year of transition 2013, we have attained a solid operating profit in both the Group and the Core Bank, also seeing important successes in the implementation of our strategic agenda. As announced, we have invested in our growth and, at the same time, further lowered our costs. We have been able to implement as scheduled what we had planned for 2013. We have even overachieved with two targets: In the reduction of the NCA portfolio we have made progress considerably more quickly, and we have increased the core capital ratio pursuant to Basel 3 to 9% one year earlier than planned,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank AG. “In addition, we have repaid in full the silent participations of the German government and Allianz, and further strengthened the capital base of the Bank. The growth measures initiated are taking effect, the amendment of the Private Customers segment is moving ahead more quickly than planned. In the Core Bank we saw growth with loans and customers in 2013 and, on the whole, have increased the revenues in the operating segments”.

In the Private Customers segment the new strategy has already delivered initial results in terms of customers, accounts and assets. Despite the low interest rate environment the operating profit was stable at the same level seen in the previous year. At Mittelstandsbank the operating profit was lower due to higher loan loss provisions. The credit volume provided to clients from the German Mittelstand was again increased. The Central & Eastern Europe segment saw continued high customer growth, and it was possible to increase the operating profit in a year-on-year comparison. In 2013, Corporates & Markets posted its best operating profit since 2010.

The net profit in the fourth quarter of 2013 was EUR 64 million (Q4 2012: minus EUR 726 million). Significantly lower loan loss provisions of EUR 451 million (Q4 2012: EUR 614 million) also contributed to this increase. In addition, the net profit in the same quarter of the previous year had seen significant charges from one-off effects.

Scheduled implementation of the strategic agenda

Commerzbank made further progress with the implementation of its strategic agenda in 2013. In the Core Bank numerous growth initiatives were started and measures implemented. The Private Customers segment, for example, opened its first pilot branch and successfully launched new custody account models. Mittelstandsbank has initiated the opening of five new offices in Switzerland as part of the expansion of its international network. In the CEE segment BRE Bank was rebranded as mBank and an innovative mobile banking platform was launched. Corporates & Markets started “TradeCycle”, an integrated platform for OTC derivatives. As a consequence of these initial growth initiatives, especially the number of customers and the business volume were increased within the Group in 2013. In the Core Bank the good portfolio quality was maintained: the ratio of non-performing loans was lower than 2%. The non-performing loans in the NCA reduction segment were lowered significantly, namely by EUR 2.6 billion.

Costs further reduced, loan loss provisions increase as expected

In the 2013 business year, the operating expenses were once again lowered, by approximately EUR 230 million to EUR 6,797 million (2012: EUR 7,029 million). The additional growth investments were compensated for by active cost management.

The loan loss provisions increased as expected in 2013, amounting to EUR 1,747 million (2012: EUR 1,660 million). The main reasons for this were the higher loan loss provisions in Mittelstandsbank after considerable reversals of loan loss provisions at Mittelstandsbank in 2012.

Risks further reduced, Common Equity Tier 1 ratio increased to 9% one year earlier than planned

In 2013, Commerzbank again improved its stability through the continued reduction of risks and the strengthening of the capital resources. The risk-weighted assets were further reduced by 8.4% to EUR 191 billion (2012: EUR 208 billion). The total assets declined year-on-year by 13.6% to EUR 550 billion (2012: EUR 636 billion), and thus for the first time since 2006 were again lower than EUR 600 billion. Together with the successful capital increase of EUR 2.5 billion, this led to a consolidation of the core equity ratios. The Common Equity Tier 1 ratio taking into account the transitional regulations of Basel 3 was 11.6% as of the end of December (previous year: 10.2%). With the full application of Basel 3 the Common Equity Tier 1 ratio as of the end of December would have been 9.0%, following on from 7.6% at the end of 2012. The Bank was also able to improve the leverage ratio. As of the end of 2013 this was, in accordance with the currently known calculation logic of the EU’s Capital Requirements Directive (CRD 4) and taking into account the transitional regulations of Basel 3, 4.3% (end of December 2012: 4.1%). The leverage ratio with the full application of Basel 3 amounted to 3.3% (end of December 2012: 2.9%).

“In 2013, we have further reduced the operating expenses and the risks. In particular in our reduction segment we were able to lower the risk-weighted assets to a greater degree than planned. As a consequence of this we have also attained our target for the Common Equity Tier 1 ratio one year earlier than planned. Thanks to the ongoing risk reduction and the continued consolidation of our capital base we were, on the whole, able to further increase the stability of the Bank in 2013,” said Stephan Engels, Chief Financial Officer of Commerzbank.

Comfortable refinancing position, new forms of funding

Given the ongoing reduction of portfolios and the good deposit base, Commerzbank continues to enjoy a very comfortable funding position. In the framework of covering the needs in the Commerzbank branch network and for further diversification of the funding base the Bank has, however, the flexibility to utilise the capital market for funding on an opportunist basis. The funds from the three-year tenders of the European Central Bank (LTRO I and II) had already been repaid in full by Commerzbank in the first quarter of 2013.

As part of its collateralised funding, Commerzbank issued public Pfandbriefe and mortgage Pfandbriefe for the first time ever in 2013. Moreover, in 2013, the Bank issued the first SME Structured Covered Bond. This new instrument is a contractual construction that is similar to a Pfandbrief and which is collateralised by a high-quality portfolio of selected Mittelstand loans. Thanks to these additional capital market instruments the Bank has expanded its long-term funding options.

Silent participations of SoFFin and Allianz repaid in full

Within the framework of a capital increase in 2013 Commerzbank raised approximately EUR 2.5 billion, using this to repay in full and ahead of schedule the silent participations of the Financial Market Stabilisation Fund (SoFFin) and of Allianz. Thus Commerzbank has repaid all the elements of state aid which it may redeem itself. At the same time SoFFin reduced its stake in the Bank within the framework of the transaction from 25% to approximately 17%. The successful conclusion of the capital increase thus marks the start of the government’s exit from Commerzbank. Through this measure Commerzbank also further strengthened its capital structure.

The preliminary individual financial statements of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) show a net profit of EUR 166 million for 2013. This includes distributions on the following capital instruments: profit participation certificates of Commerzbank AG and Class B Preferred Securities of Commerzbank Capital Funding LLCs I, II and III. It’s not planned to propose a dividend payment out of the HGB result for 2013.

Development of the segments

In 2013, the Private Customers segment attained an operating profit of EUR 225 million, and thus approximately the same sum seen in the previous year (2012: EUR 227 million). The revenues before loan loss provisions remained stable. It was possible to compensate for the lower level of interest rates in the market through, among other things, higher revenues from the securities business. This shows that the amendment of the business model is beginning to take effect. The loan loss provisions increased in a year-on-year comparison to EUR 108 million (2012: EUR 95 million). In spite of increased investment, the operating expenses remained – at EUR 3.0 billion – at the level seen in the previous year (2012: EUR 3.0 billion). Higher material expenses were compensated for by the lower capacity-related personnel expenses, among other things. In the fourth quarter the segment attained an operating profit of EUR 60 million (2012: EUR 25 million).

In 2013, Mittelstandsbank posted a downturn in its operating profit to EUR 1,107 million (2012: EUR 1,642 million). Despite the ongoing low interest rate environment, it was possible to maintain the revenues before loan loss provisions at a virtually stable level, however. The loan loss provisions stood at EUR 470 million. A normalisation took place in 2013, after the loan loss provisions in 2012 had amounted to only EUR 30 million as a result of high reversals. The operating expenses in 2013 amounted to EUR 1.3 billion and were thus at the same level seen in the previous year (2012: EUR 1.3 billion). In the fourth quarter of 2013 the operating profit was EUR 220 million (2012: EUR 377 million).

The Central & Eastern Europe segment increased its operating profit in a year-on-year comparison to EUR 254 million (2012: EUR 240 million). The revenues before loan loss provisions decreased slightly to EUR 802 million (2012: EUR 818 million). The loan loss provisions increased to EUR 119 million (2012: EUR 105 million). Thanks in particular to the sale of Bank Forum in 2012 it was possible to reduce the operating expenses by 9%, to EUR 429 million (2012: EUR 473 million). In the fourth quarter the operating profit in the segment amounted to EUR 64 million (2012: EUR 42 million).

In 2013, Corporates & Markets attained an operating profit of EUR 778 million (2012: EUR 202 million) – its best result since 2010. Even without taking into consideration the positive effect as a consequence of the lower market valuation of Commerzbank’s own liabilities (“Own Credit Spread” – OCS), the operating profit would have improved considerably in a year-on-year comparison. The revenues before loan loss provisions increased significantly to EUR 2,080 million (2012: EUR 1,601 million). With the loan loss provisions, there were net reversals of EUR 57 million, after 2012 had seen loan loss provisions of EUR 52 million. The operating expenses increased slightly to EUR 1,359 million (2012: EUR 1,347 million). In this respect it is to be borne in mind that the bulk of the former portfolio of the Portfolio Restructuring Unit (PRU) in 2012 was not transferred to the segment until the middle of the year, but was included in the operating expenses throughout the whole of 2013. In the fourth quarter of 2013 the segment attained an operating profit of EUR 166 million, adjusted for the OCS effect and adjustments concerning counterparty risks in the derivatives business EUR 98 million (2012: minus EUR 70 million, adjusted for the OCS effect and adjustments concerning counterparty risks in the derivatives business EUR 70 million).

In 2013, the Non-Core Assets (NCA) segment again achieved a significantly improved operating profit of minus EUR 1,073 million (2012: minus EUR 1,533 million). The revenues before loan loss provisions increased to EUR 360 million (2012: EUR 220 million). The loan loss provisions declined in line with the reduction strategy, and in 2013 amounted to EUR 1,082 million (2012: EUR 1,374 million). The operating expenses also declined to EUR 351 million (2012: EUR 379 million). In the fourth quarter of 2013 the operating profit of NCA was minus EUR 329 million (2012: minus EUR 448 million).

The portfolio reduction in the NCA segment has proceeded more quickly than planned as attractive market conditions have been utilised. In 2013, it was possible to reduce the Exposure at Default (EaD) by EUR 35 billion, to EUR 116 billion, while preserving value; thus the annual target of a reduction to EUR 125 billion was significantly overachieved. The Commercial Real Estate (CRE) division accounted for approximately EUR 36 billion of the EaD as of the end of 2013; this corresponds to a downturn of EUR 19 billion, or approximately 35%, over 2012. A major contribution to this was made by the sale of the CRE portfolio in Great Britain. In 2013, the shipping portfolio was reduced by EUR 4.5 billion or approximately 24%, to EUR 14 billion. Thus the reduction target of EUR 14 billion for 2016 for the shipping portfolio has already been attained by the end of 2013. In Public Finance the portfolio declined over 2012 by 14% to approximately EUR 66 billion. The successful portfolio reduction led to a net capital release of EUR 205 million in the NCA segment in 2013.

The Exposure at Default (EaD) in those areas of CRE and Ship Finance which the Bank assesses as being associated with a greater risk (“higher risk cluster”) was reduced by 48% in 2013. Thus as of the end of 2013, the “higher risk cluster” in the entire NCA segment still encompassed a portfolio of EUR 7.4 billion (end of December 2012: EUR 14.3 billion).

Outlook: further growth in the Core Bank – new targets with NCA reduction and capital ratio

Commerzbank will further increase the business volume in the Core Bank in 2014. The revenues will still probably be impacted as a consequence of the low interest-rate environment and the low level of investment activity on the part of companies, however. In 2014, the loan loss provisions should be lower than the overall figure for 2013. In this respect the ongoing normalisation in the Core Bank is likely to be more than compensated for by lower loan loss provisions in the Commercial Real Estate division. The operating expenses in the year as a whole should not exceed EUR 7.0 billion. The additional investments for the implementation of the strategic agenda will be financed through ongoing cost reductions.

“We intend to post additional growth in all operating segments of the Core Bank in 2014 – namely in terms of customers, market shares and assets. Thus we are establishing the foundation for a sustainable increase in revenues and profitability in the coming years. At the same time we are continuing with our successful, value-preserving reduction strategy in the NCA segment,” said Martin Blessing. “After having already achieved major objectives of our strategic agenda ahead of schedule, we are now amending two objectives: we intend to reduce the NCA portfolio more quickly than originally planned if the favourable market environment continues beyond 2013. The new reduction target for the end of 2016 is now approximately EUR 75 billion, after our target had been under EUR 90 billion so far. In addition, we will further increase our core capital ratio: So far we have been aiming for a Common Equity Tier 1 ratio pursuant to the Basel 3 transitional regulations of more than 9%. We now intend to increase our Common Equity Tier 1 ratio to more than 10% by 2016 – namely with the full application of Basel 3”.

Excerpt from the consolidated profit and loss statement

* Unaudited figures

***

At www.media-hoster.com you will find broadcast-ready video and audio material with statements by Martin Blessing and Stephan Engels from approximately 7.00 a.m. onwards.

The videos can be viewed directly using mobile end devices.

Statements Martin Blessing: http://www.media-hoster.com/commerzbank/bpk2013mben

Statements Stephan Engels: http://www.media-hoster.com/commerzbank/bpk2013seen

***

Press contact Simon Steiner +49 69 136-46646 Nils Happich +49 69 136-44986 Karsten Swoboda +49 69 136-22339

***

About Commerzbank

***

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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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.

Download of the press release (PDF, 288 kB)

Commerzbank Economic Research expects a solid economic growth of 1.7 percent for 2014 in Germany following just 0.4 percent in the current year. According to Commerzbank economists, the euro zone has turned a corner in the sovereign debt crisis, and will grow in 2014 for the first time in three years. However, with a growth rate of 0.9 percent, the euro zone will remain far behind Germany, with France and Italy likely to disappoint.

Today at the launch of economic forecasts in Frankfurt, Commerzbank Chief Economist, Joerg Kraemer commented: "The upswing in Germany is widely supported with growth in investments, exports and private consumption." However, growth will be fuelled more and more by the zero interest rate policy of the European Central Bank (ECB). "Even if consumer prices rise only moderately, it must not be ignored that the loose monetary policy gives stock markets and housing prices in Germany an artificial boost," said Kraemer.

The main risks for the economy arise from the gradual exit of the U.S. Federal Reserve from its ultra-loose monetary policy. In Germany, the roll back of the successful reforms of ‘Agenda 2010’ may negatively affect economic growth but only several years in the future, according to Kraemer. For 2015, he expects a GDP growth rate of two percent for Germany while the euro area may achieve just half as much growth.

In contrast, the U.S. is expected to return to its former strength, with growth rates of 2.8 percent (2014) and 3.0 percent (2015). "America has helped itself out of the crisis. Now, the economy is free to pick up speed," said Kraemer. This also allows the Fed, as the first major central bank, to exit from the ultra-loose monetary policy and to reduce the purchases of government bonds in the spring. This will help the dollar against both, the euro and the yen.

The world economy will benefit from a greater contribution to growth from the United States. China is expected to grow by 7.5 per cent in 2014, almost inline with current levels, and to enter a path of sustainable economic development. Nevertheless, other emerging markets may have problems adapting to rising interest rates. "Emerging-market currencies are likely to see the turbulent years returning," Kraemer said.

According to Commerzbank, investors should cautiously consider further investment in the equity markets. "It is not too late to jump on the train," said equity strategist Andreas Huerkamp. He continued: "It is likely we will see an increase of price fluctuations in 2014 as a result of a gradual exit of the Fed from its ultra-loose monetary policy." This in turn offers investors the opportunity to take advantage of more favourable entry prices to buy stock after setbacks. Fundamentally, DAX stocks remain attractive with an average dividend yield of 2.8 percent, and as 18 of the 30 DAX companies may uplift their dividends. Huerkamp expects the Dax in total to rise to 10,200 points by the end of 2014; in the meantime sporadic corrections to a level at 8,800 points are possible.

Forecasts by Commerzbank Economic Research Real GDP growth in % compared to the previous year

About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

Commerzbank continues its track record as provider of innovative products for the securitisation market. As a first in Germany, a 500m US$ portfolio of short term trade-related financings with banks – mainly in emerging markets – was securitised and the mezzanine tranche was successfully placed with institutional investors. CoTrax Finance II-1 is a synthetic transaction and thus does not involve the true sale of assets. Investors do not obtain knowledge about individual creditors in the underlying portfolio. The 22m US$ mezzanine tranche was placed via a private auction, which prompted considerable interest among investors.

„CoTrax Finance II-1 reflects the strong position and good reputation of Commerzbank in the field of international trade finance. We received a great deal of positive feedback: Investors were keen to gain access to a new asset class and to benefit from Commerzbank’s decades of experience in trade finance. The stable performance of our existing securitisations gave investors additional comfort and had a positive influence on their spread requirements,“ says Christof Gabriel Maetze, Member of the Divisional Board of Corporate Banking at Commerzbank.

CoTrax Finance II-1 is – similar to Commerzbank’s CoSMO securitisations – not rated by an external rating agency, but was instead structured with the Supervisory Formula Approach according to regulatory requirements under the Basel III framework.

*** About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

As a result of its growth initiatives Commerzbank Group has attained almost stable revenues in the seasonally weak third quarter of 2013, and at the same time considerably reduced risks and improved the capital ratios. The operating profit was EUR 103 million (third quarter of 2012: EUR 208 million). The reasons for the decline compared to the previous year are primarily the expected increase in loan loss provisions and a weaker trading result. In contrast, the operating profit increased by 32% compared to the second quarter of 2013, primarily due to improved results in Mittelstandsbank and the Non-Core Assets (NCA) segment. The net profit in the third quarter of 2013 was EUR 77 million, and thus higher than in the previous year (third quarter of 2012: EUR 67 million).

In the first nine months of 2013 the Bank posted an operating profit of EUR 650 million (first nine months of 2012: EUR 1,226 million). The main reasons for the decrease were the weaker interest rate environment compared to the previous year and the expected increase in loan loss provisions. In the first nine months of 2013 the net profit was EUR 26 million (first nine months of 2012: EUR 692 million). The year-on-year decline in profit is due above all to special items in the framework of the implementation of the strategic agenda, such as the restructuring expenses and the implementation of the sale of the Commercial Real Estate (CRE) portfolio in Great Britain. These two effects alone represented a one-off charge of EUR 656 million.

“One year after the presentation of our strategic agenda we have already achieved very much: We have further increased the capital ratios of the Bank, reduced the costs, lowered risks, and reduced the non-strategic portfolios considerably. Thus we have further enhanced the stability of the Bank,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank. “Our growth initiatives are beginning to take effect: For this reason, in a typically seasonally weaker third quarter we were able to maintain our revenues above all in the Private Customers segment and at Mittelstandsbank at a stable level. This is a very good basis for successfully fulfilling the further objectives on the strategic agenda”.

Revenues before loan loss provisions almost stable despite seasonal effects in the third quarter

In the third quarter of 2013 the Group generated revenues before loan loss provisions at almost the same level as in the previous quarter, despite the seasonally weaker capital market-related revenues and the effects from the sale of the CRE portfolio in Great Britain. At the Core Bank the revenues before loan loss provisions also remained almost stable at EUR 2.2 billion. There, the interest and commission income were EUR 1.4 billion and EUR 780 million, respectively, in the third quarter of 2013 and thus at the levels of the previous quarter. Year-on-year the revenues before loan loss provisions at the Core Bank declined slightly. With regard to the loan loss provisions a lower sum of EUR 492 million was booked in the Group in the third quarter of 2013 compared to the previous quarter (second quarter of 2013: EUR 537 million). Although the loan loss provisions in the Core Bank increased as expected in the third quarter of 2013 as a result of individual cases in the corporates portfolios, this development was more than compensated for by the improvement in the NCA segment. In NCA, high loan loss provisions for the CRE portfolio in Great Britain had been booked in the second quarter. In a year-on-year comparison, however, the Group loan loss provisions have increased as expected (third quarter of 2012: EUR 430 million) as a result of the rise in the Core Bank. As of the end of September, the operating expenses in the Group were less than EUR 1.7 billion for the second consecutive quarter. Year-on-year the costs were lowered by 3% in the third quarter of 2013. This reflects the success of the efficiency measures implemented as part of the strategic agenda and of the balanced investment approach of the Bank.

Stability of the Bank further improved: reduction of risk-weighted assets and increase of capital ratios

The Bank has considerably reduced risks, improved its core capital ratio and thus further improved its stability. Thus the risk-weighted assets (RWA) were lowered by 4% to EUR 197 billion compared to the previous quarter (end of June 2013: EUR 206 billion). The Common Equity Tier 1 ratio was improved in the third quarter of 2013 to 8.6% with full application of Basel 3 (end of June 2013: 8.4%). The Common Equity Tier 1 ratio taking into consideration the phase-in regulations of Basel 3, which is decisive for the comprehensive assessment of the balance sheets of the European banks to be conducted by the European Central Bank, was improved compared to the previous quarter to 11.0% (end of June 2013: 10.3%). The Bank also attained an improvement with the leverage ratio. As of the end of September 2013, pursuant to the current calculation logic of the EU’s Capital Requirements Directive (CRD 4) and taking into account the phase-in-regulations of Basel 3, it was 4.1% (end of June 2013: 4.0%). The leverage ratio under the full application of Basel 3 still amounted to 3.2% (end of June 2013: 3.2%). The Bank lowered the total assets as of the end of September 2013 to less than EUR 600 billion for the first time since 2006. In the third quarter they were reduced by 7% to EUR 593 billion compared to the previous quarter (end of June 2013: EUR 637 billion). In a year-on-year comparison the reduction in the total assets was 12% (end of September 2012: EUR 676 billion).

Core Bank: Private Customers segment on course, Corporates & Markets affected by market conditions

The Private Customers segment remains on course with an operating profit of EUR 42 million in the third quarter. It has increased the profit by a pleasing 20% compared to the previous year (third quarter of 2012: EUR 35 million). In a year-on-year comparison, the revenues before loan loss provisions were only slightly lower at EUR 825 million (end of September 2012: EUR 832 million). With the loan loss provisions a sum of EUR 31 million was booked in the third quarter. This is a year-on-year reduction of 31%. As a result of the continued cost discipline and despite the investments in products, service, and the brand, the operating expenses remained constant at EUR 752 million year-on-year. Compared to the previous quarter, both the operating profit and the revenues before loan loss provisions declined, but it can be seen that already implemented strategic measures are taking effect. Thus the positive trend was continued with the acquisition of new customers. In the third quarter Commerzbank acquired a net total of 82,000 new customers (second quarter of 2013: up 79,000) helped by its brand positioning and new products. Since the beginning of the year the net number of new customers has thus increased by approximately 180,000. This also reflects the improvement in customer satisfaction. Moreover, in the third quarter of 2013 the Bank posted the strongest growth in the area of payment transaction accounts since the beginning of 2011.

In the third quarter Mittelstandsbank generated an operating profit of EUR 349 million, developing very positively compared to the previous quarter with a plus of more than 60%. In this period the segment has maintained the revenues from direct customers at a stable level and has also been able to post positive one-off effects from the pre-payment of a corporate loan. As a consequence, the revenues before loan loss provisions rose considerably by 13% to EUR 789 million. The loan loss provisions were, at EUR 106 million, below the level of the previous quarter, which had been charged by individual cases (second quarter of 2013: EUR 147 million). The credit volume stabilised at the improved level of the second quarter. As a result of the clear increase in loan loss provisions and the ongoing low level of interest rates, Mittelstandsbank was not able to entirely reproduce the successes seen in the same quarter of the previous year (operating profit in the third quarter of 2012: EUR 395 million). In the third quarter of 2012 net reversals of EUR 9 million had been booked in the loan loss provisions; this compares with net additions of EUR 106 million in the third quarter of 2013. The operating expenses were maintained at a stable level in both comparative periods, totalling EUR 334 million in the third quarter.

The Central & Eastern Europe segment continued to develop positively in the third quarter. Thus the operating profit increased quarter-on-quarter by 21% to EUR 63 million (second quarter of 2013 and third quarter of 2012: both EUR 52 million). The revenues before loan loss provisions increased in the third quarter compared to the previous quarter by 8% to EUR 209 million. Above all this reflects the strong growth in the acquisition of new customers and the management of the interest margin. The launch of the new mBank online platform has already been implemented. The revenues before loan loss provisions also increased in a year-on-year comparison (third quarter of 2012: EUR 201 million). The loan loss provisions increased slightly in the third quarter to EUR 41 million (second quarter of 2013: EUR 36 million, third quarter of 2012: EUR 28 million). In a quarter-on-quarter comparison the operating expenses remained stable before the launch of the new brand mBank in the fourth quarter of 2013.

In the third quarter, Corporates & Markets was impacted by the unfavourable market conditions which affected in particular debt and currencies sales & trading. The operating profit declined to EUR 85 million (third quarter of 2012: EUR 191 million). This includes a negative effect of minus EUR 25 million from the market valuation of the Bank’s own liabilities (“Own Credit Spread”) and from adjustments concerning counterparty risks in the derivatives business. The operating profit was thus considerably lower than the strong EUR 253 million seen in the second quarter. The revenues before loan loss provisions decreased in the seasonally weaker third quarter to EUR 459 million, also as a consequence of the uncertainty in connection with the US debt crisis (second quarter of 2013: EUR 568 million). Corporate Finance saw stable revenues but considerably increased its revenues both quarter-on-quarter and year-on-year due to positive one-off effects from the pre-payment of a corporate loan. The loan loss provisions were at EUR 43 million and considerably higher both quarter-on-quarter and a year on year, which both had profited from reversals of loan loss provisions. The operating expenses remained stable, compared to the previous quarter, at EUR 331 million and were only slightly higher in a year-on-year comparison.

NCA: Exposure at Default classified as “higher risk” reduced by 44% since the beginning of the year

The NCA segment continued its successful portfolio reduction in the third quarter of 2013. In total, the Exposure at Default (EaD) was reduced by EUR 12 billion, which corresponds to 9%, to EUR 124 billion. Since the beginning of the year the portfolio has been reduced by 18 %. Thus it is already lower than the reduction target of EUR 125 billion for 2013 as a whole. The CRE business area accounted for approximately EUR 9 billion; this corresponds to a clear decrease of 19% compared to the second quarter of 2013. The CRE portfolio could thus be reduced by a much greater amount than the EUR 5 billion from the sale of the CRE portfolio in Great Britain. The sale was concluded in the third quarter and is now entirely reflected on the balance sheet and on the profit and loss account. The ship portfolio declined in the third quarter of 2013 by approximately EUR 1 billion, or 6%, to approximately EUR 16 billion. Thus the EaD in ship finance is already close to the target value of EUR 14 billion which had actually only been formulated for the end of 2016. In Public Finance the portfolio declined by 4% to approximately EUR 68 billion compared to the previous quarter.

When it comes to risk reduction the Bank is also consistently continuing the path it has already to take several years ago. As a consequence of the sale of the CRE portfolio in Great Britain, the EaD in CRE and ship finance, which the Bank classifies as having a higher risk (“higher risk cluster”), has been reduced by 44% since the beginning of this year. Thus as of the end of September 2013 the “higher risk cluster” encompasses a portfolio of EUR 8 billion (end of December 2012: EUR 14.3 billion).

As a consequence of the risk reduction the segment’s operating profit for the third quarter was minus EUR 272 million. The result improved considerably quarter-on-quarter, however, by 30% (second quarter of 2013: minus EUR 387 million). In a year-on-year comparison the result increased by as much as 43% (third quarter of 2012: minus EUR 477 million). In both cases a considerable contribution to this was made by the lower loan loss provisions, with a sum of EUR 243 million booked in the third quarter. The successful portfolio reduction in the NCA segment led to a net capital release of EUR 208 million in the third quarter of 2013. In the first nine months of 2013 a total of EUR 278 million of capital was thus released.

Outlook

The outlook remains unchanged: As a consequence of the portfolio reduction and the ongoing weak interest rate environment, the revenues before loan loss provisions are likely to remain under pressure for the Group. The strict cost management is being continued. For 2013 as a whole the costs are not to exceed EUR 7 billion. Commerzbank continues to stand by its expectations for the loan loss provisions. As a result of the accelerated portfolio reduction in the NCA segment and the higher loan loss provisions in the Core Bank, for 2013 it continues to assume that these will be at a higher level than in the previous year (2012: approximately EUR 1.7 billion).

“We began at an early stage with the strengthening of the capital ratios of Commerzbank and the reduction of portfolio risks. We have also consistently continued this strategy in the third quarter. We continue to attach high priority to achieving a Common Equity Tier 1 ratio of 9% under the full application of Basel 3 by the end of 2014, and beyond that to always keep the capital resources well above the regulatory minimum requirements. We continue to be determined to implement the measures to increase revenues in the framework of the strategic agenda. In this respect we will maintain a stable cost base despite the investments in our growth and will consistently continue the portfolio reduction in NCA,” said Stephan Engels, Chief Financial Officer of Commerzbank.

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Excerpt from the consolidated profit and loss statement

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You will find broadcast-ready video material with statements by Stephan Engels from approximately 7 am onwards at www.media-hoster.com.

The videos can be viewed directly using mobile end devices.

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Simon Steiner +49 69 136-46646

Nils Happich +49 69 136-44986

Karsten Swoboda +49 69 136-22339

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks and is on its way to become a modern multichannel bank. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate customers. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

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Disclaimer

This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern 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 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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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.

Press contact

Nils Happich +49 69 136-44986

*** About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate customers. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

Today, Commerzbank AG issued a Mortgage Pfandbrief on the capital market for the first time. The benchmark bond has a volume of EUR 500 million, a maturity of 7 years, and a coupon of 1.625% p.a. Institutional investors showed high interest, the issue generated an order book of over EUR 1.3 billion. More than half of the issue was placed in Germany.

Commerzbank received the permission to conduct Mortgage Pfandbrief business from the Federal Financial Supervisory Authority (Bafin) at the beginning of October 2013. The placed Mortgage Pfandbrief’s cover pool consists of Commerzbank’s residential mortgage loans and increases the refinancing options for the Commerzbank. The Mortgage Pfandbrief is meant to refinance the long-term core business in the Private Customers Segment.

“The transaction supports Commerzbank’s competitiveness and underlines our ambitions to grow in the loan business with private customers,” said Michael Mandel, Divisional Board Member Private Customers. In the first six months of 2013, the Bank’s new business volume in residential mortgages stood at EUR 4 billion and well above the previous year’s level (first six months of 2012: EUR 3 billion). In the second quarter of 2013 alone, the new business volume in residential mortgages increased by 40% over the previous year to EUR 2.3 billion.

The ratings agencies Moody's and Fitch have already announced that the Mortgage Pfandbrief of Commerzbank is to be given a high rating. From Moody’s the Bank expects an “Aa1” rating, from Fitch an “AAA” rating. The joint lead managers for the transaction were Commerzbank, Deutsche Bank, Natixis, and Unicredit.

Nils Happich +49 69 136-44986

Karsten Swoboda +49 69 136-22339

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate customers. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

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Disclaimer

This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern 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 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 Poland, elsewhere in Europe 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, in particular as a result of the ongoing European debt crisis, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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.

Last year Commerzbank posted considerable growth in its corporate client business in the Netherlands. The number of German companies whose subsidiaries in the Netherlands are clients of Commerzbank increased by some 15 per cent to 680. “We have achieved our own targets with this growth. Through to 2017 we want to attain a figure of 750 here,” said Country Manager Dirk Dreiskämper at a press conference in Amsterdam on Tuesday. Commerzbank was also able to increase the number of multinational Dutch clients with subsidiaries in Germany to 50, a rise of 10 per cent. Germany is the most important trading partner for the Netherlands. In return, the Netherlands is Germany’s most important partner after France.

The country has traditionally also been of great significance for Commerzbank: Germany’s second-largest bank opened its doors in the Netherlands 40 years ago. To mark the occasion the Bank had invited numerous clients, business partners, and employees, as well as representatives from the world of politics and society, to an anniversary reception in the Hermitage Amsterdam Museum on Tuesday. “We are proud that we have already been represented in this wonderful country for four decades already,” said Mr Dreiskämper. That German products also enjoy a high reputation in the Netherlands is revealed by a recent survey conducted by Commerzbank. In the survey German companies represented through their own sites in the Netherlands state that they have observed that German brands enjoy a high reputation there. Nearly as important, according to the survey, is the fact that a German company controls the production process. Whether a product is actually manufactured in Germany or in another country is of less importance for customers, state the surveyed companies. “The quality seal ‘Made in Germany’ continues to be an asset, but it is now supplemented by the appreciation for ‘Managed in Germany’,” explained Mr Dreiskämper. Also pleasing, he added, was the fact that no specific difficulties in the international cooperation between Germany and the Netherlands were articulated in the study.

Commerzbank has for many years been the market leader in Germany for business with small- and medium-sized companies; following the integration of the former Dresdner Bank in 2011 it is represented in more than 50 countries with some 60 sites. Worldwide it has more than 5,000 correspondent relationships, and is thus an international leader. The merger here in the Netherlands was also a major step towards the internationalisation of the corporate client business. Commerzbank is now able to offer a range of products and services in corporate and investment banking. The objective of Commerzbank in the Netherlands is to achieve core bank status with Dutch corporate clients. The Bank is becoming the number one among the international banks for major Dutch companies with ties to Germany and for those doing cross-border business.

Commerzbank has been present in the Dutch market in corporate client business to date. Its business model is based on the traditional business relationship to clients through loans, liquidity control, and payment transactions. Furthermore, Commerzbank offers companies direct access to the capital market and accompanies them in their international activities. “Our Corporate Sales Team acts as a dedicated solutions provider in the risk management of our clients such as Dutch multinationals and subsidiaries of German groups,” said Mireille Meens, Head of Corporate Sales Western Europe in Commerzbank Corporates & Markets. “We service transactional hedging requirements in the FX, interest rate, and commodities management on a day-to-day basis”.

The overall context of international business gets more complex every day, with more regulatory changes imposed to the corporates, too. The corporate sales team focusses on assisting Commerzbank’s clients with a holistic approach of risks analysis and by delivering tailor-made solutions. The Corporate Solutions group offers independent and product neutral consultation, starting with the identification and measurement of the global risks and designing the most appropriate solutions considering the risks-rewards and the corporate’s hedging strategy. For example, Commerzbank has been working on cross-border acquisition financings, with specific focus on the optimal currency and duration risk profile, such as Asset Liability Management (ALM) that was carried out in cooperation with various Investment Banking experts from Corporate Finance, Loan and Rating Advisory. In other cases, the Bank has been working with corporate treasurers to present interest rate policy coping with business cyclicality and leverage. On another extreme, Commerzbank helped companies to manage exposures they have on equity – either related to employees’ stock option plans or dilution derived from acquisition.

Through the cooperation between the two segments Mittelstandsbank and Corporates & Markets (CM), the investment banking arm of Commerzbank, clients have a one-stop shop for all financial services and products. Corporates & Markets can assist clients, both Corporates and Institutionals, with access to the capital markets, financing solutions, hedging and investment products, as well as advisory services. CM also supports its clients with capital measures (equity, debt, and hybrid instruments), handling the placement of the related securities and secondary market trading, mergers and acquisitions, as well as hedging instruments and investment strategies across all asset classes.

Martin Halusa: +49 170 8528638

Tim Seifert: +49 69 136-81771

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

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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.

Commerzbank and Clearstream today announced a strategic partnership offering their clients increased efficiency, reduced risk and seamless processing to cleared and uncleared OTC derivative transactions. The new TradeCycle service will be launched in Q4 2013 and is the first integrated service of its kind. The joint offering will provide clients access to an integrated management solution for the OTC derivative trade lifecycle: from trading to clearing, settlement and custody, including key services such as advisory, valuation, and collateral management. Market participants will benefit from an end-to-end solution for the handling of OTC derivatives which will allow them to minimise operational inefficiencies, funding costs, enhance yield and improve their risk management as well as being prepared for future regulatory requirements such as EMIR or MiFID/ MiFIR.

Derivatives trading and market infrastructures have been brought to the forefront of regulatory attention and regulators have set in motion mandatory requirements which financial institutions and corporates will have to meet. As the market becomes more fragmented, it is not uncommon for clients to engage with a large number of banks and vendors to complete one single transaction, leading to increased costs and inefficiencies. TradeCycle will simplify this process for clients by managing all their OTC derivatives trades across the entire value chain from one single point of access.

Nikolaus Giesbert, Divisional Board Member for Fixed Income & Currencies at Commerzbank Corporates & Markets commented: “Regulatory requirements increase the complexity in the day to day business of financial institutions and corporates and there is growing demand for streamlined services. Clients with too many vendors engaged in OTC derivative transactions risk significantly higher funding expenses. Our holistic TradeCycle solution and effective collateral management strategies reduce operational inefficiencies and costs”.

Stefan Lepp, Member of the Executive Board and Head of Global Securities Financing at Clearstream, said: “For the first time, a bank and an independent infrastructure provider are partnering to offer an end-to-end derivatives solution for the industry. The offering is tailor-made, aimed at tackling market inefficiencies, saving funding costs and reducing overhead costs. Such partnership models allow us to meet the needs of the market participants in a very short time-to-market. TradeCycle will provide significant relief to our mutual clients in light of the upcoming regulatory challenge”.

Press contacts

Commerzbank

Tim Seifert +49 69 136 81771

Clearstream

Nicolas Nonnenmacher +352 243 36115

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

About Clearstream

Clearstream is a leading service provider in liquidity and collateral management services with more than 20 years of experience in this field. As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from 53 domestic markets worldwide. Clearstream’s customers comprise approximately 2,500 financial institutions in more than 110 countries. Its services include the issuance, settlement and custody of securities, as well as investment fund services and global securities financing. With roughly €11.5 trillion in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.

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Important notice

This document is jointly published by Commerzbank AG and Clearstream Banking S.A. and is prepared for general information purposes only. The information contained herein is not intended to provide professional legal advice and should not be relied upon in that regard. Readers should seek appropriate professional advice where necessary before taking any action based on the information contained in this document. Commerzbank AG and Clearstream Banking S.A. make no guarantees, representations or warranties and accept no responsibility or liability as to the accuracy or completeness of the information, and under no circumstances will they be liable for any loss or damage caused by reliance on any opinion, advice or statement made in this document. Information in this document is subject to change without notice.

Under http://www.tvservicebox.de you will find broadcast-ready video material with statements by Stephan Engels from approximately 7am onwards.

The videos can be viewed directly using mobile end devices.

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Simon Steiner +49 69 136 46646

Nils Happich +49 69 136 44986

Karsten Swoboda +49 69 136 22339

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate customers. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

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Disclaimer

This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern 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 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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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 today signed an agreement on the sale of its commercial real estate financing portfolio (Commercial Real Estate, CRE) in Great Britain to a consortium comprising Wells Fargo and Lone Star Funds. The transaction encompasses commercial real estate loans totalling EUR 5.0 billion including the relevant interest-rate and currency hedging derivatives, as well as the entire operational business of Hypothekenbank Frankfurt in Great Britain. This is one of the largest transactions in commercial real estate loans in Europe of the past years. The employees are being transferred in the framework of their existing employment contracts to the purchasers. It was agreed that confidentiality be maintained on further details of the contract.

Due to this transaction with complete risk transfer to the buyers, Commerzbank will attain its original reduction target of EUR 93 billion in the Non Core Assets (NCA) segment more quickly than planned. The Bank now assumes that the exposure at default (EaD, incl. non-performing loans) will be significantly less than EUR 90 billion at the end of 2016. The volume of non-performing real estate loans is decreasing by EUR 1.2 billion. Following the sale, Commerzbank internally classifies less than 12% of the EaD in the CRE sector (excl. non-performing loans) as “higher risk” (“higher risk cluster”). That compares with a share of 21% as of the end of March 2013 and even 24% as of the end of the third quarter of 2012.

The Bank expects that the overall result in 2013 will see charges of EUR 179 million as a consequence of the transaction (Q2 approximately EUR 134 million; Q3 approximately EUR 45 million). The discount on the book value of the loan portfolio of around 3.5% is low measured against similar transactions.

Due to the transaction the risk-weighted assets (RWA) are being reduced by EUR 1.5 billion. Thus the above mentioned overall charges in 2013 contrast with a positive equity capital effect totalling EUR 133 million in Q3. In total, the transaction has no notable impact on the Core Tier 1 equity level of Commerzbank.

“With this transaction, we are accepting a charge on earnings in 2013, to take out risk costs in the coming years. The positive capital effect from the RWA reduction compensates largely the charge to the equity capital ratio. This portfolio sale is attractive from a risk perspective since we transfer future risk from our UK operating platform to the buyers,” said Chief Financial Officer Stephan Engels.

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Simon Steiner +49 69 136 46646 Nils Happich +49 69 136 44986

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

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Disclaimer

This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern 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 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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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 achieved considerable growth in its corporate client business in China in 2012, and expects to make further gains in 2013. This growth trend has been confirmed by a recent survey among German companies, as the vast majority of corporates comment that they have to invest outside the euro zone.

As in previous years, Commerzbank was able to increase the number of new clients in Asia by 25 per cent. The Mittelstandsbank could increase its revenues generated with corporate clients by 25 per cent in 2012 and earnings in Corporate Banking in this country increased by over 25 per cent. “Growth in Commerzbank’s corporate client business in China is higher than in the whole of Asia”, said Edith Weymayr, who was named Regional Board Member for Commerzbank’s corporate client business in Asia early 2013, at a press conference in Beijing on Monday. In the past months, Commerzbank has further expanded its presence in the region, with a cooperation being signed with Kasikornbank in Thailand and a representative office opened in Bangladesh. New employees have been hired in all Commerzbank branches in Asia.

As part of Commerzbank’s study “Perspectives from German Corporates”, which was published for the 13th time, an additional survey was conducted for the first time in major overseas locations such as China. The study suggests that 88 per cent of companies are convinced that the German economy has to prepare itself for growth limits and that the expansion of foreign trade outside the euro zone is essential. China is already in fourth place in terms of the most important sales markets for German SMEs. “Made in Germany” continues to be well regarded in China, but this is no longer playing the decisive role: Clients from China also emphasise a great significance to a German company controlling the production process and guaranteeing the quality (“Managed in Germany”). According to the survey’s respondees the specific challenges of the Chinese market are, for example, the high service and advisory requirements of Chinese clients, as well as the long term management of competitive prices.

Asia – and above all China – is the most significant market after Western Europe for the corporate client business of Commerzbank. In China, where Commerzbank has been present for 30 years, the Bank advises German SME clients doing business in China and also advises Chinese companies looking to do business in Germany. “Since the beginning of the year we have made further investments in Asia, and especially here in China, with the recruitment of new employees in all six branches,” says Edith Weymayr. In China, Commerzbank has locations in Beijing, Shanghai, Hong Kong and Tianjin. The Bank is also represented through branches in Tokyo and Singapore.

"Corporates & Markets, Commerzbank's investment banking business, has built a successful gateway between Asia and the European markets for its clients. In the first quarter of 2013, it started offering market making for ETFs in Hong Kong building on its strong European expertise in this area. We are also seeing increased client demand in the RMB bond market. Many of our German corporate clients are active in China and plan to use the local market for refinancing. With our RMB bond offering, we are well positioned to provide our corporate clients with access to the local market." said Nick Johnston, Head of Corporates & Markets in Asia.

In recent years Commerzbank has been able to intensify its traditional business relationships with clients in China through loans, liquidity management, and payment transactions, as well as the processing of foreign trade. Moreover, the close cooperation of the corporate client business with Corporates & Markets (C&M), the investment banking arm of Commerzbank, ensures companies’ direct access to the capital markets and supports clients in their international activities. In China, Commerzbank has a strong position and offers clients a wide range of hedging and investment products across asset classes. Clients also have access to Corporates & Markets’ expert product knowledge in areas such as the placement of RMB bonds and advisory services on cross-border mergers and acquisitions (M&A).

Commerzbank has been the market leader in Germany in business with small- and medium-sized enterprises (SME’s) for many years. Globally, the Bank is represented in 52 countries with some 60 sites for its clients. It is the market leader for Germany’s Mittelstand and major international companies looking to do business in Germany. Commerzbank has more than 5,000 corresponding banking relationships around the globe and is internationally in a leading position in this area

Ends

Martin Halusa: +49 170 8528638

Bettina Storck: +86 23855 9608

Claire Tappenden: +44 7824490353

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, nearly 15 million private customers trust in Commerzbank, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

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Disclaimer

THIS PRESS RELEASE AND THE INFORMATION CONTAINED HEREIN ARE NOT BEING ISSUED AND MAY NOT BE DISTRIBUTED IN THE UNITED STATES OF AMERICA, CANADA, JAPAN OR AUSTRALIA.

In the first quarter of 2013 Commerzbank attained an operating profit of EUR 469 million (Q4 2012: minus EUR 40 million). The reasons for the increase over the previous quarter were higher revenues, lower loan loss provisions, as well as lower costs. In a year-on-year comparison, however, the operating profit decreased mainly due to the deterioration in the interest rate environment (Q1 2012: EUR 576 million). In the Core Bank, which encompasses the strategically significant customer-centric business of Commerzbank, the operating profit improved over the previous quarter to EUR 556 million (Q4 2012: EUR 408 million; Q1 2012: EUR 866 million).

“We were able to increase our operating profit in the first quarter despite a very challenging environment with extremely low interest rates, and have made further considerable progress in the consistent reduction of our non-strategic activities. Furthermore, we have begun to implement the planned investments in the future of the Bank. The clear focus this year lies on the implementation of the strategic agenda. The positive effects from this should increasingly become visible from the coming year onwards. Initial initiatives are already bearing fruit – in particular in the Private Customers business,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank.

Revenues increased with a simultaneous reduction in costs and lower loan loss provisions

The Group’s revenues before loan loss provisions in the first quarter of 2013 were EUR 2,460 million (Q4 2012: EUR 2,349 million). This increase results from improved commission income and a rise in the trading result as a consequence of greater client activity. On the other hand the ongoing weak interest rate environment was one of the factors leading to lower interest income. The loan loss provisions in the Group declined by 56.5% to EUR 267 million in the first quarter of 2013 (Q4 2012: EUR 614 million). Thanks to recently initiated efficiency measures it was possible to reduce the operating expenses over the previous quarter by EUR 51 million to EUR 1,724 million (Q4 2012: EUR 1,775 million).

The pre-tax profit include the announced restructuring expenses of EUR 493 million and in the first quarter of 2013 amounted to minus EUR 24 million (Q4 2012: minus EUR 225 million). In total Commerzbank posted a net profit of minus EUR 94 million (Q4 2012: minus EUR 726 million).

Risk-weighted assets virtually unchanged, Core Tier 1 ratio at 11.5%

The risk-weighted assets (RWA) increased over the previous quarter by nearly 1% to EUR 210 billion (Q4 2012: EUR 208 billion). In a year-on-year comparison, in contrast, the RWA declined by 5.9%. The total assets in the Group increased versus the fourth quarter of 2012 to EUR 647 billion (Q4 2012: EUR 636 billion). Compared to the same period of the previous year this represents a decrease of 6.3%, however. The Core Tier 1 ratio declined since end of December 2012 by 0.5 percentage points to 11.5% yet remains at a comfortable level. The main reason for this was the first-time application of new accounting regulations for pension commitments. Under full application of Basel 3 the Common Equity Tier 1 ratio as of the end of March would be 7.5%.

“The Common Equity Tier 1 ratio under full application of Basel 3 should be increased significantly by around 1 percentage point as a result of the planned capital increase. Thus we will attain our target of 9% for this Common Equity Tier 1 ratio probably as early as the end of 2014,” said Stephan Engels, Chief Financial Officer of Commerzbank.

Funding position remains comfortable

Commerzbank remains in a comfortable funding situation. In the first quarter of 2013 – in addition to the new “Small and Mid-sized Enterprises (SME) Structured Covered Bond” with a volume of EUR 500 million, senior unsecured bonds with a volume of EUR 700 million were successfully placed on the market. Within the context of meeting the requirements of Commerzbank’s branch network and for the further diversification of the funding base, the Bank has the flexibility to procure funding from the capital markets as opportunities arise. The funds from the three-year tenders of the European Central Bank (LTRO I and II) were already repaid in full by Commerzbank in the first quarter.

Profitability increases in the Core Bank, all operational Core Bank segments positive

The operating profit of the Core Bank increased in the first quarter of 2013 versus the previous quarter by 36.3% to EUR 556 million (Q4 2012: EUR 408 million), with improvements in the results of the Private Customers segment and in Corporates & Markets making major contributions to this increase. Moreover, the reduction of the default portfolio saw further progress in the first quarter; the solid portfolio quality of the Core Bank has thus seen a further improvement. The ratio of non-performing loans (NPL ratio) decreased to 1.9%, following on from 2.1% in the previous quarter and 2.8% in the same quarter of the previous year.

The Private Customers segment was able to more than double its operating profit in the first quarter of 2013 over the previous quarter, to EUR 70 million (Q4 2012: EUR 25 million). The key factors for this were higher revenues, and in particular in the securities business, thanks to greater client activity in the currently positive capital market environment. The loan loss provisions rose as expected. The operating expenses were maintained at a stable level over the fourth quarter of 2012 thanks to active cost management. The impact of the ongoing reorientation of the Private Customers business also became tangible in the first quarter of 2013: Thus the new business in construction financing was increased to more than EUR 1.8 billion, the volume in asset management rose by 10%.

Mittelstandsbank attained an operating profit of EUR 325 million (Q4 2012: EUR 374 million). The revenues before loan loss provisions declined especially due to positive valuation effects from restructured loans in the fourth quarter of 2012 which did not reoccur in the first quarter of 2013, the weak interest-rate environment, and a moderate demand for loans. As expected the loan loss provisions increased in the first quarter of 2013 to EUR 78 million. The operating expenses decreased over the fourth quarter of 2012 by 6.6%, to EUR 325 million. The operational return on equity at Mittelstandsbank in the first quarter was more than 22%, the cost-income ratio in the operational business was less than 45%.

The Central & Eastern Europe segment increased its operating profit over the fourth quarter of 2012 to EUR 75 million (Q4 2012: EUR 42 million). The decisive factors here were lower loan loss provisions of EUR 6 million due to successful restructuring and lower operating expenses of EUR 104 million. The lower interest income as a result of the interest rate cuts by the Polish Central Bank was compensated for by an increase in the trading result.

Corporates & Markets was able to significantly increase its operating profit to EUR 271 million (Q4 2012: minus EUR 69 million). Seasonal effects and the increase in client activity, and in particular in trading in interest-rate derivatives and equity derivatives, led to higher revenues in the first quarter of 2013. The operating profit also includes a small positive effect from the market valuation of Commerzbank’s own liabilities (“Own Credit Spread” – OCS) in the amount of EUR 25 million, after a negative OCS effect of minus EUR 118 million in the fourth quarter of 2012. In the first quarter of 2013 the loan loss provisions also saw net reversals of EUR 26 million. The operating expenses declined over the previous quarter by 6.9% to EUR 338 million.

Further progress with portfolio reduction in the Non-Core Assets segment

The Non-Core Assets (NCA) segment was able to clearly reduce its loss over the previous quarter to minus EUR 87 million (Q4 2012: minus EUR 448 million). The main reason for this was a decrease in the loan loss provisions by 65.8% to EUR 175 million. Despite the ongoing portfolio reduction it was possible to keep the revenues stable. In line with the portfolio reduction the operating expenses were lowered by 19.4% to EUR 83 million. With regard to the portfolio reduction it was possible to achieve excellent progress for the second quarter in a row: Especially the Commercial Real Estate and Public Finance portfolios were reduced further in the first quarter of 2013. In total the NCA portfolio has been lowered by EUR 7.3 billion since the end of 2012 to approximately EUR 143 billion, after approximately EUR 9 billion had already been reduced in the fourth quarter of 2012. Since the first quarter of 2012 it has been possible to reduce the portfolio in the field of Ship Finance by 10%, in the field of Commercial Real Estate by 20%, and in Public Finance by 10%. At the same time the portfolio quality was maintained.

Outlook

“Against the background of an economic and capital market environment that remains challenging we continue to assume that the operating profit in 2013 as a whole will be shaped by ongoing pressure on revenues, slightly increasing loan loss provisions and an investment-related increase in costs. We will continue the value-preserving reduction in the NCA segment provided the market environment remains positive. We continue to aspire to maintain a Common Equity Tier 1 ratio – taking into account the transitional regulations of Basel 3 – of significantly more than 9% throughout the whole of 2013,” said Stephan Engels.

Excerpt from the consolidated profit and loss statement*

* Note: As of January 1, 2013 Commerzbank is applying the new accounting regulations from the International Accounting Standards (IAS). Consequently, among other things all interest income from trading is posted as part of the net interest income. To date this income has been posted as part of the trading result. In the course of the new definition the Bank has also decided to reclassify income components of the debt capital markets business with commission characteristics. In the future these will no longer be stated in the trading result but in the net commission income. As of January 1, 2013 the new accounting regulations of IAS 19 were applied for the first time to the valuation of pension commitments. To ensure comparability with the previous year the figures for 2012 have been adjusted. The figures originally reported for the 2012 business year remain unchanged.

Under www.tvservicebox.de you will find broadcast-ready video material with statements by Stephan Engels from approximately 7am onwards. The videos can be viewed directly using mobile end devices.

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Simon Steiner +49 69 136 46646

Nils Happich +49 69 136 44986

Karsten Swoboda +49 69 136 22339

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

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Disclaimer

The information contained herein serves information purposes and does not constitute a prospectus or any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities for the purposes of EU Directive 2003/71/EC. Securities will solely be offered on the basis of a prospectus or other offering circular to be issued by the company in connection with such offering. Subject to approval by the German Federal Financial Services Supervisory Authority, a prospectus will be available free of charge from COMMERZBANK Aktiengesellschaft (Kaiserstraße 16 (Kaiserplatz), 60311 Frankfurt am Main) and on the website of COMMERZBANK Aktiengesellschaft under www.commerzbank.com. The securities will be offered exclusively on the basis of the prospectus required to be approved by the Federal Financial Services Supervisory Authority.

This press release does not constitute an offer to sell securities, or a solicitation of an offer to buy securities, in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities of COMMERZBANK Aktiengesellschaft described herein have not been and will not be registered under the Securities Act, or the laws of any State, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable State laws. COMMERZBANK Aktiengesellschaft does not intend to register any portion of the offering in the United States or conduct a public offering of securities in the United States.

This press release is not being distributed by, nor has it been approved for the purposes of section 21 of FSMA by, a person authorised under FSMA. This document is being communicated only at (I) persons who are outside the United Kingdom (II) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (III) high net worth companies and other persons within the categories described in Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”).

Any person who is not a Relevant Person should not act or rely on this document or any of its contents. The Securities are available only to, and any invitation, offer or agreement to purchase will be engaged in only with Relevant Persons. Persons in possession of this document are required to inform themselves of any relevant restrictions. No part of this document should be published, reproduced, distributed or otherwise made available in whole or in part to any other person without the prior written consent of COMMERZBANK Aktiengesellschaft.

The results of the latest study by the Commerzbank initiative UnternehmerPerspektiven reveal an ambivalent picture of the international position of the Mittelstand. Only 9 per cent of the surveyed companies are currently planning to expand their business activities beyond Germany’s borders – in a study from 2007 this figure was as high as 23 per cent. The proportion of companies already operating internationally remained virtually the same, however. 61 per cent of the companies currently see that products and services from their sector are increasingly being traded internationally (26 percentage points more than in 2007). This internationalisation pressure is countered by the fact that only about one quarter of the potential companies currently sees favourable framework conditions for a move abroad – here the crisis in the eurozone is an obstacle. For the study with the title ‘New markets, new opportunities – internationalisation as a driver of growth’ not only were 4,000 proprietors and managing directors from Germany’s Mittelstand surveyed, but also persons in positions of responsibility at the foreign sites of German companies, as well as some 150 economists at German universities.

“On the one hand, there are the companies which ventured into new markets a long time ago already and are now utilising growth opportunities. On the other hand, Mittelstand companies which are not yet active in foreign markets are currently finding it difficult to take the first step,” is how Markus Beumer, a member of the Board of Managing Directors of Commerzbank AG, summarised the results in Frankfurt. “Yet the study also shows that despite all the scepticism, Germany’s Mittelstand is well positioned in international business,” adds Beumer. The typical path – growth into neighbouring EU countries first of all, then pushing ahead with internationalisation in more distant markets – is not very attractive at present for many Mittelstand companies because of the meagre economic outlook in the eurozone. “Yet there is no way round moving into foreign markets. More than never before it is important to plan well, establish networks, and get advice from other companies, from business federations and chambers of industry, and naturally also from us banks,” added Beumer.

Initial move abroad now more difficult due to volatile framework conditions

One reason for the reticence of companies with the potential for successful internationalisation is formed by the flagging framework conditions seen in the global economy. Four out of five Mittelstand companies in Germany expect to see a weak economy in the eurozone in the coming three to five years. Nearly 90 per cent of the entrepreneurs are generally preparing themselves for limited growth. At the same time 85 per cent are demanding intensification of foreign trade outside of the EU. The surveyed economists share the concerns of the entrepreneurs, yet, on the whole, are more optimistic in their assessment of economic developments in the coming years, in particular with a view to regulatory risks. Thus only 8 per cent of the economists assume there will be a restriction on export surpluses by the EU, while 30 per cent of the surveyed Mittelstand companies expect to see corresponding measures. Moreover, 60 per cent of the entrepreneurs are worried by the prospect of sharp inflation in the eurozone.

Mittelstand companies intensifying presence abroad

“The good news is that the international competitiveness of German companies continues to increase. Two thirds of the internationally active German Mittelstand companies are also availing of growth opportunities outside the established markets in Europe, North America and Japan. In addition, the companies have intensified their local positioning in foreign markets,” says Beumer. In contrast to the study from 2007 the proportion of internationally active companies which have established long-term cooperations, joint ventures or have their own sites abroad has risen considerably: One in three internationally active Mittelstand companies is now contractually bound to foreign partners (increase from 19 to 33 per cent), while one in four (increase from 21 to 25 per cent) maintains its own foreign site.

The success confirms this strategy: 83 per cent of the internationally active companies report that products and services of German companies are described as “leading” by customers abroad. 75 per cent feel they are appreciated because of their cutting edge in terms of technology and innovation. “Our export successes are not sure-fire ones. So that our companies are also just as successful on the international markets in the future, we have to maintain and expand the competitiveness of Germany as a base for industry,” commented Ulrich Grillo, President of the BDI and the patron of the study, at the presentation of the results. “Only if there are competitive conditions here at home, can our companies grow and expand, so that they are also able to assert themselves in international competition in the future”.

Concerns growing over currency risks and product piracy

Internationally active companies are increasingly noticing difficulties in foreign business over which they themselves have very little control. A lack of legal security, legal obstacles and trade barriers are the difficulties most often cited, each with 58 per cent. For half of the Mittelstand companies currency risks are an obstacle; five years ago this was only a concern for 38 per cent of the respondents. 40 per cent of all companies with foreign sales state that the protection of intellectual property presents a major challenge. This is 13 percentage points more than in 2007. Companies with sales in BRIC states and threshold countries are already particularly sensitised to this problem.

The initiative UnternehmerPerspektiven and its studies

UnternehmerPerspektiven is an initiative of Commerzbank. Its goal is that of establishing a forum for topics which affect Mittelstand companies in Germany and of providing a platform for them to air their views. The basis for this is formed by representative surveys of 4,000 Mittelstand companies in Germany. For the current 13th study economists at German universities were also surveyed, as were persons in positions of responsibility at the foreign sites of German companies. The results of the study are discussed – also on public podia – with representatives of business and business federations, with politicians and academics so as to generate mutual trust and develop viable solutions for the challenges faced by the Mittelstand.

The full version of the latest study as well as further information on the initiative is to be found under www.unternehmerperspektiven.de.

Martin Halusa: 0170 852 8638

Bernd Reh: 0170 914 3734

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

In a difficult market environment Commerzbank achieved an operating profit of EUR 1,216 million in the financial year 2012. This is well above the previous year’s figure of EUR 507 million.The Core Bank achieved an operating profit of EUR 2.6 billion in the reporting period. Due to extraordinary charges, especially from the sale of Bank Forum and the depreciation on deferred tax accruals, net profit amounted to EUR 6 million.

“2012 was another eventful financial year with many challenges. Much was achieved: as planned, non-strategic portfolios were wound down and risks reduced, cost management was rigorously implemented, and the Bank made further progress in strengthening its capital structure. In a persistently difficult market environment, we laid the strategic foundations for future growth and profitability. Implementing these measures rigorously will be a key goal for Commerzbank in the coming years”, said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank in the 2012 Annual Report submitted today.

In the first half of 2012, Commerzbank presented a comprehensive package of measures designed to meet the European Banking Authority’s (EBA) capital requirements from its own resources. Thereby and with the help of further measures, Commerzbank strengthened its capital structure, such as in June 2012 through the payment of variable remuneration in shares. In view of the uncertainty in the financial markets, Commerzbank picked up the pace in the middle of the reported period of focusing on its core business and therefore in June 2012 we decided to withdraw completely from financing commercial real estate and shipping. Both divisions were transferred in their entirety to the new “Non-Core Assets” (NCA) run-off segment. In the course of its ongoing review of Group strategy, Commerzbank has also sold its stake in Bank Forum.

At its Investors’ Day held in November 2012, Commerzbank introduced its strategic agenda for the period to 2016. In the next few years Commerzbank intends to adapt its business model to the changing framework conditions in the financial industry and pursue focused growth. In the period to 2016, the Bank intends to invest over EUR 2.0 billion into the earnings power of the core business, implement additional efficiency measures to keep costs stable and continue to improve its capital base. In accordance with its clear strategic orientation on the needs of its customers, Commerzbank has also redesigned its international brand image.The previous brand promise, “Achieving more together”, has been replaced by “The bank at your side”.

“This underlines Commerzbank’s approach as a fair and competent bank which rigorously focuses on the needs of its customers. Our objective is clear. We want to create a new way of banking that unites modern technologies, innovative products and traditional values. We believe that this gives Commerzbank a competitive edge and enables us to secure and expand our position as the leading bank for private and corporate customers in Germany and Poland over the long term, even in what remains a challenging environment”, said Blessing.

For 2012, the individual financial statements of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) allowed the payment of distributions on certain capital instruments. As already announced, no dividend is being paid for 2012 however. Detailed information about the total monetary remuneration of the board members can be found in the remuneration report (pages 35 to 47). The number of employees of the Commerzbank Group as of the end of December 2012 was 53,601 (page 113).

Outlook

2013 will again not be easy for Commerzbank in terms of the achievable earnings. Given the ongoing challenging conditions in the economy and the capital markets, the earnings situation will remain tough in the banking industry as a whole. But based on the strategic positioning of Commerzbank and the growth initiatives it has introduced, the Bank is convinced that it is well equipped to deal with these future challenges.

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Simon Steiner +49 69 136 46646

Nils Happich +49 69 136 44986

Karsten Swoboda +49 69 136 22339

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittel-standsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

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Disclaimer

This release contains forward-looking statements.Forward-looking statements are statements that are not historical facts. In this release, these statements concern 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 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 Poland, elsewhere in Europe 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, potential defaults of borrowers or trading counterparties, the implementation of Commerzbank’s strategic initiatives, the reliability of Commerzbank’s risk management policies, procedures and methods, and other risks. Forward-looking statements therefore speak only as of the date they are made.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.

In January 2013 Commerzbank AG began talks with the employees’ representatives so as to negotiate the implementation of the strategic agenda through to 2016. The key factor for the success of the implementation of the strategic agenda is ensuring the operational stability and the ability for growth in the core business areas of the Bank. To this end, the Board of Managing Directors has adopted a policy statement on the further implementation of the strategic agenda for Commerzbank AG in Germany.

Fundamental elements of the policy statement:

The involvement of the Works Council, consistent compliance with all employee protection legislation, and the observation of social interests in the implementation of this strategic change process are all prerequisites for the bank for ensuring that these changes are accepted and successfully implemented by the bulk of the workforce. “We intend to send out a clear signal that the talks are fair and constructive. For this reason the Board of Managing Directors has adopted this policy statement,” says Ulrich Sieber, the member of the Board of Managing Directors of Commerzbank responsible for Human Resources, among other things.

On 8 November 2012 the Board of Managing Directors of Commerzbank presented the strategic agenda for the coming years. Among other things the Bank intends to invest more than EUR 2 billion in its business model through to 2016, while at the same time keeping its costs stable. To this end, the Bank has to increase its revenues on the one hand and to lower its costs further on the other hand. For this reason, adjustments to the material expenses and to the personnel expenses are essential.

*** About Commerzbank Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

On 21 February 2013 Commerzbank successfully issued and placed in the capital market a Small and Mid-sized Enterprises (SME) Structured Covered Bond with a volume of EUR 500 m. This new instrument is secured by a high-quality portfolio of selected SME loans. The contractual structure has similar features as a Pfandbrief. Institutional investors can obtain an attractive product to diversify their investments within the current low interest rate environment. At the same time, this product is enabling Commerzbank to extend its long-term refinancing options.

The issue has a maturity of five years and a coupon of 1.5 % p.a. It has generated investor interest of more than EUR 1 bn from over 60 institutional investors. More than half of the demand came from investors outside Germany. The Joint Lead Managers of the transaction were Commerzbank, Barclays, Crédit Agricole, and Unicredit.

"With the SME Structured Covered Bond the Mittelstandsbank of Commerzbank has developed an innovative, transparent product which provides institutional investors with an opportunity to benefit from the robust state of the German economy," said Holger Werner, Divisional Director of Strategy and Projects in the Mittelstandsbank segment. "The high demand for the Structured Covered Bond demonstrates, on the one hand, the attractions of the German Mittelstand for investors. On the other hand, the high quality of the Commerzbank loan portfolio is evident, in which Mittelstand loans that were selected based on strict criteria are used as collateral".

The issue within the Commerzbank "SME Structured Covered Bond Programme" is the first transaction of this type. "We are pleased to have successfully brought such an innovative instrument to the market", said Roman Schmidt, Divisional Director of Corporate Finance in the Corporates & Markets segment. "Within the current low interest rate environment, the product represents a genuine alternative for investors seeking attractive returns and a safe investment. This is particularly evident from the high demand from classic Pfandbrief investors for the issue. We are opening up a market for these instruments with this transaction".

The SME Structured Covered Bond represents a bank Schuldverschreibung from Commerzbank with the additional security of guaranteed interest and redemption repayments. This guarantee is backed by cover assets consisting of high-quality Mittelstand loans. From the customer's perspective, the relationship between the customer and the bank will remain unaltered, since Commerzbank will continue to undertake the servicing and processing of the loans.

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittel-standsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

In the 2012 business year Commerzbank substantially increased its operating profit and further reduced risks. The operating profit improved to EUR 1,216 million (2011: EUR 507 million). The revenues before loan loss provisions were virtually unchanged at EUR 9.9 billion; in contrast, due to a sustained increase in efficiency, it was possible to lower operating expenses to EUR 7.0 billion (2011: EUR 8.0 billion). The loan loss provisions rose as expected, above all due to continuing high provisions in the field of ship finance, to just less than EUR 1.7 billion (2011: EUR 1.4 billion). The net profit of EUR 6 million (2011: 638 million) includes extraordinary charges, above all from the sale of Bank Forum (EUR 268 million) and depreciation on deferred tax accruals (EUR 673 million). The adjusted net profit was EUR 990 million therefore. The charges from the sale of Bank Forum and the depreciation on deferred tax accruals are essentially a consequence of the strategic realignment of the bank in line with the changing environment announced in November 2012; this is also associated with an adjustment of the medium-term planning of all Group units.

In the Core Bank, which encompasses the strategically significant customer-centric business of Commerzbank, a solid operating profitof EUR 2.6 billion was attained in a challenging market environment (2011: EUR 4.7 billion). Adjusted for special effects – essentially positive effects, among others from the repurchase of hybrid equity capital instruments amounting to some EUR 1.1 billion and from the lower market valuation of Commerzbank’s own liabilities (“Own Credit Spread” – OCS) in the amount of EUR 288 million - the operating profit in the previous year was EUR 3,140 million. If the OCS effect in particular is also taken into account for 2012 (EUR minus 315 million), the Core Bank attained a satisfactory operating profit of EUR 2,845 million in the past year. A major contribution to this was made by the significant cost reductions of EUR 871 million. The net interest income declined above all due to the lower interest rate levels.

“In 2012 Commerzbank Group made good progress in operational terms. We have succeeded in strengthening the capital base and reducing our costs by a significant amount. In addition, the reduction of the non-strategic portfolios is progressing as planned. In total we were thus able to considerably increase the operating profit,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank AG. “Given the difficult environment, the Core Bank has also attained a solid operating profit”.

The Private Customers segment saw charges in 2012 from the ongoing difficult market environment, yet at the same time it was possible to further lower the costs. Mittelstandsbank again slightly increased the very good operating profit seen in the previous year to a record profit. The Central & Eastern Europe segment posted a solid operating profit. Corporates & Markets improved its performance, yet the higher market valuation of Commerzbank’s own liabilities (“Own Credit Spread” – OCS) had a negative impact.

In the typically weaker fourth quarter of 2012 extraordinary charges of EUR 185 million from the sale of Bank Forum and depreciation on deferred tax accruals of 560 million led to a loss in the Group in the amount of EUR minus 716 million (2011: EUR 316 million). The loan loss provisions rose as expected, above all due to the ongoing high provisions in ship finance, to EUR 614 million (previous year: EUR 381 million).

Scheduled implementation of the strategic agenda

The implementation of the strategic measures “Focused growth”, “Adjust cost base” and “Optimise capital allocation” announced on 8 November 2012 is progressing as planned. Thus, among other things, extensive internal structures for the control of cost programmes have been put in place and the implementation of the corresponding measures has been launched in all units. The talks with the appropriate councils at Commerzbank AG on the reduction of the personnel expenses commenced at the beginning of February. The Bank currently assumes that within the Group there will be job cuts on a scale of 4,000 to 6,000 full-time equivalents through to 2016. In this respect restructuring expenses in the range of about EUR 500 million are expected in the first quarter of 2013. The council negotiations for the NCA segment already were concluded in January.

For the planned investments totalling more than EUR 2 billion so as to increase earnings, projects have been started in all segments of the Core Bank. The reduction of risks has been consistently continued in the fourth quarter. In particular it was possible to lower the NCA portfolio in this period by EUR 9 billion to EUR 151 billion. “In 2012 we fulfilled the prerequisites for the realignment of the Bank. Initial measures are taking effect, but one thing is clear: There is a long way to go,” said Martin Blessing.

Successful cost management continued

The operating expenses were reduced in the 2012 business year over the previous year by nearly EUR 1 billion to some EUR 7.0 billion (2011: EUR 8.0 billion). Thus it was possible to clearly undercut the original cost target. Alongside realised cost synergies from the take-over of Dresdner Bank, ongoing efficiency improvements made themselves noticeable here.

EBA capital requirements overachieved, Core Tier 1 ratio increased significantly

In 2012 Commerzbank exceeded the original capital target of EUR 5.3 billion set by the European Banking Authority (EBA). The bank has consistently continued with its strategy for the reduction of risks and non-strategic portfolios in 2012. The total assets declined over 2011 by 3.9 %, to EUR 636 billion (2011: EUR 662 billion). The risk-weighted assets were further reduced by 12.0 %, to EUR 208 billion (2011: EUR 237 billion). This contributed to a strengthening of the core capital ratios. The Core Tier 1 ratio as of the end of December 2012 was 12.0 %, compared to 9.9 % in the previous year. With full phase-in of Basel III the Common Equity Tier 1 ratio as of the end of December would be 7.6 %. “We have further reduced our risks in 2012. We have again lowered the costs significantly – thus we are actually once more ahead of our original ambitious planning,” said Stephan Engels, Chief Financial Officer of Commerzbank.

Comfortable funding position, LTRO II will be repaid

Commerzbank continues to enjoy a very comfortable funding position as a result of the ongoing reduction of portfolios and the excellent deposits base. However, in its coverage of the needs in the Commerzbank branch network and for the further diversification of the funding base, the Bank continues to retain the flexibility to utilise the capital market for funding as the opportunity arises.

As a result of the stabilising measures of the European Central Bank, as well as the planned reduction of the portfolios in NCA, in January Commerzbank repaid in full the funds of EUR 10 billion taken up by Hypothekenbank Frankfurt (formerly Eurohypo AG) from the first three-year tender of the European Central Bank (LTRO 1), and thus two years before their maturity. The Bank intends to repay the funds availed of from the so-called LTRO II as of the first-possible due date at the end of February 2013.

Silent participation of SoFFin will be serviced

The preliminary individual financial statements of Commerzbank AG pursuant to the provisions of the German Commercial Code (HGB) show a net profit of EUR 102 million for 2012. This includes distributions on the following capital instruments: silent participations of SoFFin and Allianz, profit participation certificates of Commerzbank AG and Class B Preferred Securities of Commerzbank Capital Funding LLCs I, II and III. As already announced, no dividend is being paid for 2012.

Variable remuneration for 2012 significantly reduced

As a consequence of the unsatisfactory net profit, variable remuneration as a whole for 2012 will be 17.2 % lower than in the previous year, after the volume in 2011 had already been 12.1 % lower than in 2010. In the investment bank the volume of the variable remuneration has decreased by approximately 20 % over the previous year. In total the personnel expenses for the past year were EUR 3.96 billion (2011: EUR 4.18 billion). Some 8.0 % thereof is accounted for by variable salary elements (2011: 9.2 %).

The reduction in variable remuneration elements encompasses all the eligible employees of the bank and also the Board of Managing Directors, yet to differing degrees. The bank is thus following a clear principle: The greater the responsibility, the lower the variable remuneration by comparison. While employees in the non-pay scale model are receiving a total of some 60 % of the target bonus volume, in the management model this figure is approximately 50 %. In the case of the remuneration for the Board of Managing Directors, the share of the target bonus is around 40 %, of which merely ca. 10 % will be paid out in 2013.

Chairman of the Board of Managing Directors Martin Blessing had already informed Supervisory Board Chairman Klaus-Peter Müller in writing in December 2012 that he is foregoing all his claims from variable remuneration for 2012. “This is a very honourable decision, which according to Martin Blessing is grounded on his particular responsibility for the Bank,” said Klaus-Peter Müller.

Development of the segments

In 2012 the Private Customers segment registered a downturn in interest and commission income as a consequence of the lower interest rate levels and a decline in customer activity, above all in the securities business. The operating profit therefore decreased over the previous year to EUR 245 million (2011: EUR 476 million). The loan loss provisions of EUR 95 million remain at a low level (2011: EUR 61 million). It was possible to lower the operating expenses through active cost management in a year-on-year comparison by 15 %. In the fourth quarter the segment attained an operating profit of EUR 30 million (2011: EUR 140 million).

Mittelstandsbank posted an operating profit of EUR 1,649 million, once again slightly higher than the very good result seen in the previous year (2011: EUR 1,588 million). The loan loss provisions profited from reversals, as well as from the strong state of the German economy, and were thus at the very low level of EUR 30 million (2011: EUR 190 million). The operating expenses were reduced by 12 %, to EUR 1.3 billion. In the fourth quarter of 2012 the operating profit of the segment was EUR 376 million (2011: EUR 290 million). In particular the clear decrease in loan loss provisions over the previous year, to EUR 42 million (2011: EUR 149 million), contributed to this increase.

Central & Eastern Europe attained a solid operating profit of EUR 240 million in 2012 (2011: EUR 427 million). In comparison to the previous year the profit declined above all due to the elimination of a positive one-off effect from the sale of the participation in Promsvyazbank (PSB), which was booked in the fourth quarter of 2011 at EUR 154 million. It was possible to compensate in part for the lower net interest income through ongoing cost management. BRE Bank increased the number of its customers by about 200,000 to more than 4 million for the first time ever. In the fourth quarter the segment attained an operating profit of EUR 42 million (2011: EUR 194 million), which, taking into consideration the positive one-off effect from the sale of PSB in the fourth quarter 2011, was stable at around the same level seen in the previous year.

In 2012 Corporates & Markets posted a positive operating profit of EUR 197 million (2011: EUR 583 million). The cause for the decline over the previous year was a negative effect as a consequence of the higher market valuation of Commerzbank’s own liabilities (“Own Credit Spread” – OCS) to the amount of EUR minus 315 million, which had been positive in the previous year at EUR 288 million. In the typically weak fourth quarter the operating profit in the segment was EUR minus 69 million (2011: EUR 27 million). Adjusted for the negative OCS effect of EUR minus 118 million in the fourth quarter (2011: EUR 75 million) the result would have been positive.

In 2012 the Non-Core Assets segment (NCA) posted a clearly improved operating profit of EUR minus 1.5 billion (2011: EUR minus 4.0 billion). In the previous year there had been charges in particular from considerable impairments on Greek sovereign bonds. The loan loss provisions rose above all due to higher additions in the area of ship finance to EUR 1,374 million (2011: EUR 903 million). The portfolio reduction was successfully continued in 2012. The portfolio was reduced in 2012 by EUR 30 billion, to EUR 151 billion. The reduction of the NCA portfolio by 17 % took place above all in the in the Commercial Real Estate and Public Finance areas. In the fourth quarter the operating profit of the segment amounted to EUR minus 447 million (2011: EUR minus 1,391 million).

Excerpt from the consolidated profit and loss statement

* Unaudited figures

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Under www.tvservicebox.de and www.getaudio.de you will find broadcast-ready video and audio material with statements by Martin Blessing and Stephan Engels from approximately 7.00 onwards.

The videos can be viewed directly using mobile end devices.

Statements Martin Blessing: http://cbvideo.commerzbank.de/2013/Bilanz/Blessing_en/index.php

Statements Stephan Engels: http://cbvideo.commerzbank.de/2013/Bilanz/Engels_en/index.php

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Simon Steiner +49 69 136 46646

Nils Happich +49 69 136 44986

Karsten Swoboda +49 69 136 22339

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittel-standsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.

***

Disclaimer

This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern 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 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 Poland, elsewhere in Europe 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, in particular as a result of the ongoing European debt crisis, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, 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 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.

With a total of euro 100,000 donated in 2012 and 2013, Commerzbank AG supports the child care organisation SOS Children's Villages in Africa. The funds will be used to benefit projects in the fields of education and sustainability in Ghana and Liberia, among others, for the purchase of modern IT equipment for schools and the installation of photovoltaic systems for the children's villages. Our cooperation with SOS Children's Villages is part of the "Africa – Big Five" initiative introduced by the Financial Institutions division of the Mittelstandsbank to further expand its business with corporate customers on the African Continent. "Our corporate customers shall see that it is not only our aim to grow on the African Continent but that we also wish to demonstrate social commitment. Responsibility for society is part of our corporate culture. With our commitment for SOS Children's Villages in the fields of education and sustainability we wish to provide young people in Africa with better opportunities to lead a self-determined life", says Florian Witt, Senior Relationship Manager for Africa at the Mittelstandsbank.

Wtih 6 Representative Offices between Cairo and Johannesburg, and 500 bank customers and 250 institutional customers, Commerzbank is no. 1 German-speaking bank for corporate customer transactions in Africa. It has now been active in this region for 60 years, maintaining business relations with 50 of the 53 countries on the African continent. It cooperates above all with governments, local banks and central banks. Commerzbank handles 11 % of all euro payments from Africa to other countries and 35 % of all foreign trade financings with Germany.

SOS Children's Villages is active in 46 African countries where the SOS Children's Villages projects help children and young people in difficult family situations as well as orphans to find a new home in one of the SOS families. In addition, SOS Children's Villages also runs kindergartens, youth centres, schools, vocational training centres, medical and social centres.

Martin Halusa: Tel. +49 170 8528638

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About Commerzbank

Germany is the leading bank for private and corporate customers in Germany. With the segments Private Customers, Mittelstandsbank, Corporates & Markets as well as Central & Eastern Europe, 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 network of branches among German private banks. It has around 60 sites in 52 countries and serves almost 15 million private customers as well as 1 million business and corporate customers worldwide. In 2011, it posted gross revenues of almost euro 10 billion with 58,160 employees.

This year’s German Investment Seminar marks the 15th time Commerzbank has hosted the largest German investors’ conference in New York. Held over three days, more than 60 German companies will have the opportunity to convey their strengths to investors. Among the participants are virtually all the DAX 30 companies, as well as other top names from the German business world. In more than 1,500 individual meetings, leading company representatives will meet with more than 550 US investors.

A central topic at the Global Investment Seminar is the macroeconomic outlook and its impact on German companies. “In turbulent times the German economy has showed that it is comparatively robust; nevertheless 2013 will not be without challenges. However, the key macroeconomic indicators in the eurozone, in the United States of America and in Asia have been developing more positively since the autumn of last year,” said Michael Reuther, the member of the Board of Managing Directors of Commerzbank AG responsible for Corporates & Markets and Treasury in his opening speech in New York on Monday evening. Reuther also pointed to historically low financing conditions, which allow for a high degree of operational flexibility and efficiency, as well as internationally attractive growth opportunities. “The global economy should recover gradually. The well positioned German economy should benefit from this,” added Reuther.

The German Investment Seminar (GIS) is the largest investors’ conference for German companies in the US. In the most recent Thomson Reuters Extel survey the GIS was voted the “Top Broker Conference” by more than 14,000 investment experts and 2,000 institutional investors.

Press contacts:

Margarita Thiel +49 69 136 85483

Tim Seifert +49 69 136 81771

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About Commerzbank

Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittel-standsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate clients as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate clients. In 2011, it generated revenues of just under EUR 10 billion with some 58,000 employees.

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US: This document has been approved for distribution in the US under applicable US law by Commerz Markets LLC (“Commerz Markets”), a wholly owned subsidiary of Commerzbank AG and a US registered broker-dealer. Any securities transaction by US persons must be effected with Commerz Markets. Under applicable US law; information regarding clients of Commerz Markets may be distributed to other companies within the Commerzbank group. This is intended for distribution in the United States solely to “institutional investors” and “major U.S. institutional investors,” as defined in Rule 15a-6 under the Securities Exchange Act of 1934. Commerz Markets is a member of FINRA and SIPC.

Under www.tvservicebox.de and www.getaudio.de you will find broadcast-ready video and audio material with statements by Stephan Engels from approximately 7.00 onwards on November 8, 2012.

The videos can be viewed directly using mobile end devices. Statements Stephan Engels: http://cbvideo.commerzbank.de/2012/Q3Engels_en/

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About Commerzbank

Commerzbank is a leading bank for private and corporate customers in Germany. With the segments Private Customers, Mittelstandsbank, Corporates & Markets as well as Central & Eastern Europe 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 52 countries and serves almost 15 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of almost EUR 10 billion with 58,160 employees.

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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.

Commerzbank AG will continue to be a reliable business partner to Turkish banks and companies in the future. "We are convinced that Turkey will continue on its successful course thanks to stabile political and economic framework conditions," said the Chairman of the Board of Managing Directors, Martin Blessing, at a reception to mark the 25th anniversary of the Commerzbank representative office in Istanbul on September 7. "You can count on us," underlined Blessing.

Commerzbank opened its foreign representation in Istanbul in 1987. In this very first year it played the lead role with the first foreign bond to be issued by the Turkish central bank since the foundation of the republic in 1922. Commerzbank today has close business relationships with all the major Turkish commercial banks. Moreover, it is committed to long-term export financing, above all in the field of renewable energies. The product range spans trade financing, structured financing and foreign exchange trading. "We are building on a reliable partnership - in good times as well as in bad," said Blessing.

In the past decade the Turkish economy has seen impressively dynamic growth. This environment holds attractive opportunities for investments, not only for Turkish companies, but also for German firms. Germany is the leading partner in trade with Turkey and investments there. In return Turkey is playing an ever more significant role as a trading partner for Germany. The bilateral trading volume in 2011 was 28.5 billion euros, a year-on-year increase of 27.3%.

About Commerzbank

"In an uncertain market environment investors have shown their trust in the competence of Commerzbank and in the continuity of its securitisation programs," says Birgit Storz, head of the Strategy unit in the Corporates segment of Commerzbank.

As with the CoSMO securitisation series the granular portfolio for the most recent transaction was not assessed by an external ratings agency, but structured and later issued with the aid of the Basel III compliant, regulatory formula approach.

Martin Halusa +49 69 136-85331 Bernd Reh +49 69 136-46971

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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 52 countries and serves almost 15 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of almost EUR 10 billion with 58,160 employees.

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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 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 has clearly overachieved the capital target of EUR 5.3 billion of the European Banking Authority (EBA) as of June 30, 2012 by EUR 2.8 billion. In the first six months of 2012, Commerzbank generated an operating profit of EUR 1.0 billion (H1 2011: EUR 1.2 billion); in the second quarter of 2012 the operating profit was EUR 451 million (Q1 2012: EUR 584 million). This was due in particular to the further decreased market interest rate level and the declining customer activity. While the Mittelstandsbank and Central & Eastern Europe segments attained a solid result, the Private Customers and Corporates & Markets segments suffered under the challenging market environment. In total, the Core Bank posted an operating profit of EUR 1.4 billion in the first six months of 2012 (H1 2011: EUR 2.1 billion). Thereof, EUR 560 million was accounted for by the second quarter of 2012. Group net profit in the second quarter of 2012 was EUR 275 million (Q1 2012: EUR 369 million).

"In the past six months we have successfully focussed on further strengthening the Bank's capital base and reducing risks. We have succeeded in doing this. We have therefore clearly overachieved the EBA capital target despite the ongoing challenging market environment. As a result, the Bank is well prepared for the difficult market conditions. Sustainable capital management and the further reduction of risks will clearly continue to be a priority in the future," said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank.

EBA capital target overachieved by EUR 2.8 bn, Commerzbank well prepared for Basel 3

Commerzbank has significantly overachieved its own planning in the fulfilment of the EBA capital target. Instead of the originally planned buffer of at least EUR 1 billion, the Bank has attained an equity capital excess of EUR 2.8 billion as of the end of June 2012. The major measures behind this achievement were the risk-weighted assets reduction, retained earnings, and measures to improve the capital structure. Not least, in the second quarter of 2012 the capital base was also strengthened by the payment in shares of variable remuneration for the fiscal year 2011 for non-pay-scale employees.

The Bank has also made good progress in the reduction of risks. As of the end of June 2012, risk-weighted assets were further reduced by EUR 13 billion to EUR 210 billion quarter-on-quarter. The Core Tier 1 ratio was significantly increased in the second quarter, from 11.3 % as of the end of March 2012 to 12.2 % as of the end of June 2012. Commerzbank continues to be well positioned for regulatory capital requirements according to Basel 3. As of January 1, 2013 and taking into account all the requirements to be met by this deadline, the Bank continues to expect a Core Tier 1 ratio of at least 10 %. The balance sheet total amounted to EUR 673 billion as of the end of June 2012 (end of March 2012: EUR 691 billion).

Lower revenues partially compensated by cost reductions

The main reason for a decline in revenues versus the first six months of 2011 was significantly weaker earnings as a consequence of the difficult market environment. Revenues before loan loss provisions in the Group declined by 14 % to EUR 5.2 billion in the first six months of 2012 year-on-year (H1 2011: EUR 6 billion), while the operating expenses were reduced by 16 % to EUR 3.5 billion (H1 2011: EUR 4.2 billion). However, in comparison to the first quarter of 2012 both ratios remained stable in the second quarter of 2012. The revenues before loan loss provisions in the second quarter 2012 were at EUR 2.6 billion, operating expenses were approximately at EUR 1.7 billion. The downturn in revenues is primarily due to the challenging market conditions, the lower customer activity, and a further decreased market interest rate level. Interest income declined in the first six months of 2012 to EUR 2.8 billion (H1 2011: EUR 3.5 billion). Commission income was, at EUR 1.6 billion, also at a lower level than in the same period of the previous year (H1 2011: EUR 1.9 billion).

Loan loss provisions normalise at a low level

The loan loss provisions in the second quarter of 2012 amounted to EUR 404 million and thus, as expected, remained at a low level, yet normalised in comparison with the first quarter of 2012. In the first six months of 2012 they were at EUR 616 million and approximately at the level of the previous year (H1 2011: EUR 596 million). The resilience of the German economy contributed to the loan loss provisions in the Core Bank remaining stable in the first six months of 2012 at a very low level of EUR 134 million compared to the same period of the previous year (H1 2011: EUR 126 million).

Core Bank segments impacted by the further deteriorated market environment

In the second quarter of 2012, the Core Bank segments were also impacted by deteriorating market conditions. In the Private Customers segment the operating profit in the first six months of 2012 was EUR 126 million and fell considerably short versus the same period of the previous year (H1 2011: EUR 195 million). The decline in profits is due in particular to the lower interest and commission income in the wake of the lowered deposit margins and ongoing low customer activity in the securities business. Lower revenues could not be compensated by cost management. In the first six months of 2012, Commerzbank successfully increased deposits by approximately EUR 8 billion. In this period, the new business in mortgage financing rose by 27 % to EUR 3 billion compared to the corresponding period in the previous year. Compared to the first six months of 2012, operating expenses were significantly reduced at EUR 1.4 billion (H1 2012: EUR 1.7 billion). "All in all the operating profit in the Private Customers segment is not satisfying," said Chief Financial Officer Stephan Engels. "Due to synergies realised from the take-over of Dresdner Bank and active cost management, costs have been developing as planned. But given that revenues remained below expectations due to the market environment, we will advance the strategic development of the segment."

The Mittelstandsbank continues to profit from its strong market position and the robust state of the German economy. In the first six months of 2012 the segment posted a good operating profit of EUR 878 million (H1 2011: EUR 948 million). It again made the largest contribution to the Group's operating profit. However, the interest and commission income in the Mittelstandsbank followed the general trend. Despite the further decreased market interest rate level, the revenues before loan loss provisions were nonetheless at a solid level.

The operating profit in Central & Eastern Europe in the first six months of 2012 was at EUR 146 million (H1 2011: EUR 143 million). BRE Bank again made a strong contribution, which would have been larger excluding foreign currency effects. In the second quarter of 2012 it was able to expand its business further on a stable cost base. In the other regions of Eastern Europe, Commerzbank has refocused its business in the first six months of 2012. Since the first quarter of 2012, the corporate customer business in Russia, the Czech Republic, Slovakia, and Hungary has been served by the Mittelstandsbank. The Bank's activities in Russia were also further aligned with the corporate customer-related core business with the conclusion of the sale of the minority stake in Promsvyazbank. As announced at the end of July 2012, Commerzbank is selling its majority stake in Ukrainian Bank Forum. In the second quarter of 2012, the signing of the sale and purchase agreement leads to an extraordinary charge in Commerzbank's profit and loss statement amounting to approximately EUR 86 million.

Despite difficult market conditions, the operating profit in Corporates & Markets slightly increased in the second quarter of 2012 compared to the first quarter of 2012. However, the segment reported a distinctly lower operating profit of EUR 75 million in the first six months of 2012 (H1 2011: EUR 521 million) compared to the preceding year. This was due to the lower customer activity affecting the whole industry following the uncertain market environment as well as to significantly reduced risk-weighted assets. Without the effects from the valuation of the own credit spreads, the segment generated an operating profit of EUR 217 million in the first six months of 2012 (H1 2011: EUR 492 million).

Operating profit improved at ABF and PRU, organisational changes came into effect

The operating profit in the Asset Based Finance (ABF) segment in the first six months of 2012 was at EUR minus 553 million (H1 2011: EUR minus 1.1 billion). Lower losses in the sovereign bond portfolio helped the result from financial investments. In addition, in the first six months of 2012 the loan loss provisions remained stable at EUR 479 million year-on-year (H1 2011: EUR 474 million). But in the second quarter of 2012 loan loss provisions increased versus the previous quarter particularly in Ship Finance. Above all due to the discontinuation of new business at Eurohypo as decided in November 2011, commission income declined in the first six months of 2012, however.

In the second quarter of 2012 the exposure at default (EaD) in Public Finance was reduced to EUR 80 billion (End of March 2012: EUR 82 billion). The EaD to the GIIPS countries was reduced by 8 % to EUR 11.2 billion as of the end of the second quarter of 2012 (Q1 2012: EUR 12.1 billion). The sovereign exposure to Italy was lowered by EUR 0.6 billion to EUR 7.8 billion (minus 7 %), and the corresponding Spanish exposure by EUR 0.3 billion to EUR 2.6 billion (minus 10 %).

As already announced at the end of June 2012, the new segment Non Core Assets (NCA) is replacing the ABF segment as of July 1, 2012. All public finance, commercial real estate finance and ship finance portfolios will be consolidated in the NCA segment and wound down. As already announced, the Commerz Real business area and the retail portfolio of Eurohypo will be integrated into the Private Customers segment.

In the first six months of 2012 the Portfolio Restructuring Unit (PRU) achieved a good result. The operating profit was EUR 184 million and 45 % higher than in the same period of the previous year (H1 2011: EUR 127 million).The reduction in the portfolio is now so advanced that the remaining portfolio was largely transferred to the Corporates & Markets segment as of July 1, 2012. This does not apply to the public infrastructure investments portfolio of EUR 1.5 billion, which is now being managed in the Public Finance business area within the NCA segment.

New allocation of responsibilities within the Board of Managing Directors comes into effect as of August 9, 2012

Following the decision to significantly expand the Non Core Assets (NCA) segment and not to launch the Real Estate and Ship Finance (RES) segment, the responsibilities within the Board of Managing Directors of Commerzbank are being reassigned. In addition to Group Human Resources Ulrich Sieber is, together with Jochen Klösges, assuming overall responsibility for the expanded NCA segment. In order to focus on the value-preserving reduction of the portfolios in the new NCA segment, Sieber is relinquishing his responsibility for Central and Eastern Europe (CEE). In the future CEE will be part of the responsibilities of the CEO. In return, Martin Blessing is handing over responsibility for Treasury to Michael Reuther, who is already responsible for the Corporates & Markets segment. Reuther is a proven treasury expert, and previously headed Treasury from 2006 to 2008. As of August 9, 2012 the new allocation of responsibilities within the Board of Managing Directors comes into effect as already announced.

Outlook: No short-term stabilisation of the market environment expected

"We still do not expect the macroeconomic and market environment to stabilise in the second half of 2012. Therefore we expect operating profits to continue to be under pressure," said Engels. "We have costs firmly under control. Even though we expect a slight increase in the second half of the year, we will significantly overachieve our cost target of EUR 7.6 billion. Our target for the loan loss provisions of EUR 1.7 billion is achievable. Considering current market conditions, this target is however becoming increasingly ambitious. Against this background, we expect the net profit in the second half of the year to be below the net profit of the first six months."

Commerzbank is currently reviewing all business areas within its annual strategic planning process. The results will be presented on November 8, 2012. "Our management focus is on the strategic repositioning of the Private Customers segment as well as on the strategy for the run-down portfolios within the Non Core Assets segment," said Engels. "In view of the difficult revenues situation, we are subjecting the costs to a consistent review. The strategic goal remains to consistently focus Commerzbank on a customer-centric and sustainably profitable core business while continuing to reduce risks and capital lockup."

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About Commerzbank

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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.

In the second quarter of 2012, the signing of the sale and purchase agreement leads to an extraordinary charge in Commerzbank's profit and loss statement amounting to approximately EUR 86 million which also has to be considered in the equity capital. With the closing of the transaction, the cumulative currency effects amounting to approximately minus EUR 200 million as of today will be reported in the profit and loss statement. The latter does not additionally affect the equity capital of the Bank, since it has already been accounted for as charge against the equity in the currency translation reserve in the past. In total, Commerzbank's profit before tax will be impacted by approximately EUR 286 million by the time of the closing of the transaction.

The charge is not reported in the operating profit but in the profit before tax. Overall, the Bank expects an operating profit of approximately EUR 1 billion for the first six months of 2012, whereof approximately EUR 450 million apply to the second quarter 2012. For the first six months of 2012, the Bank expects a profit before tax of approximately EUR 900 million, thereof approximately EUR 350 million in the second quarter of 2012.

Because of the related reduction of the risk weighted assets, the transaction does not have a significant impact on the Core Tier 1 ratio of Commerzbank. The Core Tier 1 ratio as of the end of March 2012 was 11.3 %. As of the end of June 2012, Commerzbank expects a further strengthened Core Tier 1 ratio of approximately 12 %. Taking into account the tighter capital regulations under Basel 3 which shall be applicable from next year onwards, Commerzbank continues to expect a Core Tier 1 ratio of at least 10 % as of January 1, 2013.

As planned, Commerzbank will publish the detailed financial figures for the first six months of 2012 on August 9, 2012.

Commerzbank acquired the majority stake in Bank Forum in the spring of 2008. The dynamic development of the Ukraine has not come into effect as expected in past years. Commerzbank does not expect a sustainable improvement in the near future. In the course of the ongoing review of its Group strategy, Commerzbank therefore decided to sell its stake in Bank Forum.

In the future, Commerzbank will continue to be represented in the Ukraine with a representative office in Kiev. In corporate customer business the Bank will continue to be a reliable partner to Ukrainian customers with business relations in Germany, as well as to German companies doing business in the Ukraine.

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About Commerzbank

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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.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.

Today, the execution of the capital increase announced on June 27, 2012 for the purpose of the payment of variable remuneration to a large extent in shares was registered with the commercial register. Thus, the nominal capital of Commerzbank was increased by 176,553,636 shares against contribution in kind.

Subsequently, the German Financial Market Stabilisation Fund (SoFFin) has converted a portion of its silent participation into shares in order to maintain its equity interest ratio in Commerzbank (25% plus one share). This will result in a portion of the silent participation with a nominal value of approximately EUR 80.1 million being converted into 58,851,212 shares, using the conditional capital authorised in the 2011 Annual General Shareholders' Meeting. SoFFin's remaining silent participation in Commerzbank therefore is reduced to approximately EUR 1.63 billion.

With the execution of both capital measures, the total number of Commerzbank shares has increased to 5,829,513,857 shares. The new shares will be included in stock exchange trading for the first time on July 2, 2012.

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About Commerzbank

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Disclaimer

This press release does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act") or another exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. Commerzbank Aktiengesellschaft does not intend to register any portion of the offering in the United States or conduct a public offering of securities in the United States The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan.

This press release and any other documents or materials relating to the transaction is not being made and such documents and/or materials have not been approved by an authorized person for the purposes of section 21 of the Financial Services and Markets Act 2000. Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of such documents and/or materials as a financial promotion is only being made to those persons in the United Kingdom falling within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotion Order")) or persons who are within Article 43 of the Financial Promotion Order or any other persons to whom it may otherwise lawfully be made under the Financial Promotion Order.

This press release contains forward-looking statements based on current expectations and assumptions by the management of Commerzbank Aktiengesellschaft. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may result in the profit situation, profitability, performance or the profit of Commerzbank Aktiengesellschaft deviating substantially from the profit situation, profitability, performance or the profit expressly or implicitly assumed or described in these forward-looking statements. In view of these risks, uncertainties and other factors, the recipient of this press release should not inappropriately rely on these forward-looking statements. Commerzbank Aktiengesellschaft assumes no obligation to update such forward-looking statements or to make them conform to future events and developments.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.

The Board of Managing Directors of Commerzbank with the approval of the Supervisory Board as planned today set the definitive number of new shares to be issued to increase the share capital against contribution in kind at 176,553,636 shares. This comes from the capital increase in kind announced yesterday to fulfil non-pay-scale employees' individual variable remuneration entitlements for 2011 in the form of Commerzbank AG shares.

Just under 90% of those non-pay-scale employees entitled to take part opted to have their variable remuneration paid out in shares. This means that claims with a total nominal value of EUR 213.8 million will be contributed in kind by employees of the Commerzbank Group from variable remuneration for the 2011 financial year. 128,335,357 of the newly issued shares will be placed as part of a coordinated sales transaction by Commerzbank AG and Deutsche Bank AG as joint bookrunners. As announced, the new shares are expected to be included in stock exchange trading for the first time on July 2, 2012.

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About Commerzbank

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Disclaimer

This press release and any other documents or materials relating to the transaction is not being made and such documents and/or materials have not been approved by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000. Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of such documents and/or materials as a financial promotion is only being made to those persons in the United Kingdom falling within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotion Order")) or persons who are within Article 43 of the Financial Promotion Order or any other persons to whom it may otherwise lawfully be made under the Financial Promotion Order.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.

Commerzbank will satisfy EUR 213.8 million of the individual variable remuneration entitlements of its non-pay-scale employees for 2011 in shares of Commerzbank AG. The Board of Managing Directors of Commerzbank has with the approval of the Supervisory Board, therefore, today adopted a resolution on the execution of the capital increase against contribution in kind. According to this the subscribed capital of Commerzbank is to be increased by means of a contribution in kind by approximately 176.5 million shares, i.e. by approximately 3.2%, using authorised capital with the exclusion of the shareholders' pre-emptive rights. The final number of the shares to be issued will most likely be determined by the Board of Managing Directors of Commerzbank with the approval of the Supervisory Board on June 28, 2012.

In total almost 90% of the eligible non-pay-scale employees have decided to have their variable remuneration paid out in Commerzbank shares. This will strengthen the Core Tier 1 capital by a total of EUR 213.8 million. The measure had already been announced in January 2012 at the presentation of Commerzbank's plan to achieve the capital target of the European Banking Authority (EBA). After the original EBA capital target of EUR 5.3 billion had already been surpassed by approximately EUR 1.1 billion as of March 31, 2012 with a set of measures, this measure further strengthens the capital base of the Bank in the light of the stricter requirements of Basel 3.

In this context, Commerzbank AG and Deutsche Bank AG as Joint Bookrunner will sell approximately 128.3 million of the newly-issued shares to institutional investors in the framework of a coordinated sales transaction. The proceeds are received by those employees of Commerzbank Group who have made their shares available for the placement. Commerzbank and Deutsche Bank will start to approach relevant investors already today, June 27, 2012. The registration of the execution of the capital increase in the Commercial Register is expected for June 29, 2012. The new shares are expected to be included in stock exchange trading for the first time on July 2, 2012.

The German Financial Market Stabilisation Fund (SoFFin) intends to continue to maintain its equity interest ratio in Commerzbank (25% plus one share) upon completion of the transaction. For this purpose, a portion of the silent participation is to be converted into shares, using the conditional capital authorised in the 2011 Annual General Meeting of shareholders.

In November 2009 Commerzbank had launched a new remuneration system for the first and second management levels, as well as for the non-pay-scale employees, to come into effect from 2010 onwards. This model is based on the guidelines of the G-20 summit in Pittsburgh in 2009 and is oriented to personal performance and to the long-term success of the Bank. Thus, the new remuneration system incorporates long-term, variable components combining three main aspects: an appropriate level of risk-taking, sustainability and transparency. It also pays greater consideration to performance and differentiation targets. The remuneration model leads to increased payments in good, and reduced payments in bad times.

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About Commerzbank

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Disclaimer

In view of the continuing uncertain situation on the financial markets, the heightening of the sovereign debt crisis and the increasing regulatory burdens, Commerzbank intends to accelerate the path it has already taken, with its focus on customer-centric and profitable core business, the minimisation of risks and a reduction in complexity. The Board of Managing Directors has today, therefore, decided to wind up the business areas Commercial Real Estate and Ship Finance in the course of time. In addition, CommerzReal is to be integrated into the Core Bank segment Private Customers. Therefore, the new Core Bank segment Real Estate and Ship Finance (RES) will not be launched as had originally been planned.

"Against the background of the ongoing financial and sovereign debt crisis, an end to which is not foreseeable, and of the uncertain regulatory environment, we are subjecting all the business areas to a rigorous review in the framework of our strategic planning process. The strategic objective is that of consistently focusing Commerzbank on customer-centric and sustainably profitable core business and further minimising risks and capital lockup. In the course of this process we have as an initial move, therefore, decided to reduce the business areas originally planned for the new Real Estate and Ship Finance segment in the course of time or transfer them to the Core Bank," said the Chairman of the Board of Managing Directors, Martin Blessing.

Commercial Real Estate and Ship Finance are to be transferred in full to the new segment Non Core Assets (NCA). The essential reasons for this are the high capital and the rising liquidity requirements under Basel 3, and especially for long-term financing, as well as the strong cyclical fluctuations which are to be expected in the results in the future. In private and corporate customer business, Commerzbank will naturally continue to offer real estate financing.

As already announced at the end of March, the Public Finance business of Eurohypo is also to be organisationally transferred for winding up to the NCA segment. As planned, the Commercial Real Estate and Public Finance portfolios remain in the legal entity Eurohypo AG. Eurohypo will be renamed "Hypothekenbank Frankfurt AG" probably as of August 31, 2012. Thus, Commerzbank is meeting a requirement of the European Commission in relation to the winding-up conditions for Eurohypo. The new name, which will also apply to subsidiaries of Eurohypo, refers to a predecessor institute of Eurohypo.

The CommerzReal business area will be integrated within the Core Bank into the Private Customers segment so as to orient the business more closely to the needs of customers in the future.

These changes will become effective as of August 9, 2012. Following the decision to significantly expand the NCA segment, the responsibilities on the Board of Managing Directors of Commerzbank will also be restructured as of this date.

Commerzbank is currently subjecting all its business areas to a review in the framework of the annual strategic planning process. The changes announced today are the first consequence of this. All the results of this process will be presented in the autumn.

The published targets and statements for the current business year remain valid. An update will be provided with the publication of the half-year results on August 9, 2012.

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About Commerzbank

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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.

After the crises of the past, the economies of many African countries are clearly heading for growth. Political and economic stability has increased above all in the countries of the Sub-Saharan region. “Medium-term growth potential in Sub-Saharan Africa ought to be about six per cent per annum in the years ahead”, a new study by Commerzbank, the second largest bank for private and corporate cus-tomers in Germany, reveals. According to the study, countries which manage to attract foreign inves-tors could actually see even higher growth, since investments like these frequently initiate or boost growth momentum. With an economic growth forecast of 5.4 per cent for 2012, the region is now already ranking directly behind front-runner Asia.

The commodity boom and the turnaround to stability-oriented economic policy have increased the crisis-resistance of many countries in this region. Some of the states have thus already recorded notable surpluses in current account and government budget. The prerequisites for further economic growth, according to the study, are a stable political framework and a large population which allow higher economies of scale with fixed investment costs, plus good availability of commodities. Coun-tries which meet these criteria include in particular Nigeria, Ghana, Angola and Mozambique. “The greatest challenge for Sub-Saharan Africa is the demographic development. The labour force poten-tial, which is growing strongly because of the high population growth, can only be absorbed by the creation of additional jobs”, says Florian Witt, head of the Africa department in Commerzbank’s corporate banking. He remarks that this can only succeed if the depth of value added is decisively increased – and that, specifically, prevailing conditions call for such an increase mainly in the commodity-processing industry and in the processing of agricultural products.

The signs point to a sustained positive development: “In the larger cities a middle class is forming with a demand for increasingly higher-quality products. The services sector and in particular finance will also benefit from this”, adds Rainer Schaefer, head of Commerzbank’s Country Risk Analysis and one of the authors of the study. He expects both the development of the infrastructure and housing construction to give the building industry special momentum, and sees opportunities above all in renewable energies, as well as in information and communication technology.

However, in addition to the pleasing developments the study also reveals a whole series of negative aspects. For instance, in some Sub-Saharan states – such as Sudan and Somalia – civil war and eco-nomic chaos still prevail. Moreover, bureaucratic obstacles and corruption often curb economic devel-opment. Overall, 26 African countries have benefited from the debt relief initiative of the World Bank and the International Monetary Fund since 2004. In return for the debt relief, these countries had un-dertaken to follow an economic policy based on fixed criteria. This was also backed by the turnaround in development aid, away from loans and towards non repayable grants, after the assistance loans in the eighties and nineties had led to the over-indebtedness of many African countries

With 6 representative offices between Cairo and Johannesburg, and 500 bank customers and 250 institutional customers, Commerzbank is the no. 1 German-speaking bank for corporate customer transactions in Africa. It has now been active there for 60 years, maintaining business relations with banks and state institutions in 50 of the 53 countries on the African continent. It cooperates above all with governments, local banks and central banks.

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Martin Halusa: Tel. +49 69 136-85331

Kirsten Böddeker: Tel. +49 69 136-85466

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About Commerzbank

The Russian business activities of Commerzbank remain unaffected by the transaction. The Bank will continue to be a reliable partner in the corporate banking sector to Russian companies having a business relationship to Germany as well as to German companies doing business in Russia. Commerzbank will continue to be represented in Russia through its subsidiary Commerzbank (Eurasija) SAO and Commerzbank's representative offices in Moscow and Nowosibirsk.

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About Commerzbank

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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.

Commerzbank's corporate business in China has exceeded its target for 2011. Revenue grew by more than 30 per cent, significantly exceeding expectations. In terms of the number of new customers the Bank also saw growth of 20 per cent over the previous year. "In 2011 we were successful in posting further growth and sustainably expanding our position in a region which is experiencing one of the world's largest economic growth rates," said Michael Kotzbauer, Regional Board Member for Asia at Mittelstandsbank, at a press conference in Beijing on Wednesday. The Bank is aiming for income growth in 2012 by as much as 30 per cent in China.

Asia is the most significant market after Western Europe for Commerzbank's corporate customer business, which has had a presence in the region for 50 years. According to the Bank's economists, China also remains set for growth in 2012 with a forecasted increase in GDP of 7.5 per cent. In China, where Commerzbank has been represented for 30 years, the Bank advises German SME customers conducting business in China. Commerzbank also advises Chinese companies looking to conduct business in Germany. "Personal advice for our customers at a local level from within China differentiates us from our competitors," says Kotzbauer. Commerzbank has branches in Beijing, Shanghai, Hong Kong and Tianjin and is also represented with branches in Tokyo and Singapore.

Over the past few years Commerzbank has been able to build upon the traditional business relationships it holds with its customers in China through loans, liquidity controls and payment transactions, as well as processing foreign trade. Furthermore, the close dovetailing of our corporate customer business with Corporates & Markets (C&M), the investment banking arm of Commerzbank, allows companies direct access to the capital markets and supports customers in their international activities. Commerzbank has a strong position in China in the areas of interest rate and foreign currency trading, which essentially covers advising and providing a full service solution for institutional clients on all risk hedging matters. Commerzbank is also one of the leading providers in China in commodities trading and certificate issuance. In its Corporate Finance business RMB bond issuance, as well as advising companies on cross-border mergers and acquisitions (M&A), ranks amongst the core competencies of Corporates & Markets.

"Global volatility means that as one of the only banks with a commodities hedging facility for Chinese clients and deep expertise in risk management solutions the value we can bring to China is becoming very attractive to Chinese corporates and institutions. We see an increasing appetite for use of some of the more sophisticated techniques available to manage their exposure and risk and this is extremely timely", explained Nick Johnston, Head of Corporates & Markets in Asia.

For a year now Commerzbank has made it possible for its corporate customers in Germany to conduct cross-border commercial transactions with the Chinese mainland in renminbi. Since then the number of renminbi accounts has seen three-digit growth and cross-border transactions in the Chinese currency have increased considerably. In addition to China and Germany, Commerzbank has also started to offer renminbi products and services in Hong Kong, Japan, Singapore and Belgium. Other countries are set to follow, for example Switzerland and Russia in the near future. Following the introduction of cross-border trading in renminbi, the Chinese government is now gradually opening up cross-border capital transactions with mainland China. Here too Commerzbank is supporting its customers.

Commerzbank has for many years now been the market leader in Germany in business banking for small- and medium-sized enterprises. Worldwide the Bank is represented in 52 countries with some 60 sites for its customers. It is thus the market leader for Germany's Mittelstand and major international companies looking to conduct business in Germany. Commerzbank is an international leader with more than 7,000 correspondent banking relationships. Through close cooperation between the two segments of Mittelstandsbank and Corporates & Markets, the investment banking arm of Commerzbank, corporate customers receive services and products from one source.

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About Commerzbank

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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 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.

Today's Annual General Meeting of Commerzbank agreed to all the items on the agenda and refused the request for an addition to the agenda. The details of the voting by the shareholders on the major agenda items are as follows:

Discharge (items 2 and 3) The members of the Board of Managing Directors and of the Supervisory Board were discharged (with a majority on average of 98.1 % and 98.1 %, respectively).

Election of new members of the Supervisory Board (item 6) The Annual General Meeting has, as proposed by the Supervisory Board, elected Dr. Gertrude Tumpel-Gugerell as a member of the Supervisory Board of Commerzbank AG with 99.6 % of the votes until the end of the Annual General Shareholders' Meeting 2013.

Standard resolutions to adjust the authorised and conditional capital (items 7 and 9) The regular adjustment of the authorised capital in relation to the current share capital (item 7) was approved with 97.0 % of the votes. In addition to the existing authorised capital 2011 (approximately EUR 1.6 billion), there is now a further authorised capital of as much as EUR 1.2 billion (Authorised Capital 2012/II).

In addition, the conditional capital was amended through the regular adjustment process to the current share capital (item 9). Subject to the approval of the Supervisory Board, the Board of Managing Directors was authorised with 95.3 % of the votes to issue, once or on multiple occasions, convertible bonds, bonds with warrants attached and/or profit sharing rights with a total nominal amount of up to EUR 8.4 billion. These securities may grant conversion rights or options entitling the holders to subscribe to up to 2.75 billion shares.

Options for further improvement of the capital structure (item 8) The Annual General Meeting has with a majority of 94.7 % decided to allow for options for further improvement of the capital structure. The Board of Managing Directors thus has the possibility, with the approval of the Supervisory Board and in agreement with the silent partners, to redeem the existing silent participation of Allianz SE of EUR 0.75 billion and the silent participation of SoFFin amounting to approximately EUR 1.7 billion in the context of capital measures through the partial or full contribution of the silent participations. The Board of Managing Directors of Commerzbank was thus authorised in particular to increase Commerzbank's share capital by up to around EUR 2.4 billion in exchange for the partial or full contribution of the silent participation of Allianz SE and/or of SoFFin.

Protection against dilution for the Financial Market Stabilisation Fund (SoFFin) (item 10) SoFFin is also to receive new Commerzbank shares in exchange for the full or partial contribution of its silent participation, in order to maintain its stake in the company's share capital of 25 % plus one share in the event of further capital increases. This protection against dilution on the basis of the Financial Market Stabilisation Acceleration Act was adjusted with a majority of 95.1 % to the new authorisation for capital measures resolved at the Annual General Meeting. Thus the Conditional Capital 2011/III of approximately EUR 0.8 billion was increased by a further sum of approximately EUR 0.9 billion. A conditional capital increase of this kind is only carried out to the extent that SoFFin exercises its exchange right in order to maintain its stake in Commerzbank's share capital.

Other resolutions The request for addition to the agenda to withdraw confidence from the Chairman of the Board of Managing Directors put forward by the shareholder Riebeck-Brauerei von 1862 AG was refused by the Assembly with a majority of 96.6 % (item 11).

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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 52 countries and serves almost 15 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of almost EUR 10 billion with 58,160 employees.

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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.

Commerzbank AG has concluded the integration of Deutsche Schiffsbank AG with the entry of the merger into the Commercial Register. Thus the merger became effective on May 22, 2012 and Commerzbank now is the universal successor to Deutsche Schiffsbank AG.

The ship finance business of Commerzbank will be continued in the "Asset Based Finance" segment, which is headed by Commerzbank board member Jochen Klösges. The "Ship Finance" business area will be renamed "Deutsche Schiffsbank" with the registration of the merger. The responsible divisional board member remains Dr. Stefan Otto, to date also the Chairman of the Board of Managing Directors of Deutsche Schiffsbank AG. The brand identity of Deutsche Schiffsbank AG will be replaced with the brand identity of Commerzbank. As of July 1, 2012 the business area "Deutsche Schiffsbank" will, as previously announced, be part of the new Core Bank segment "Real Estate and Ship Finance".

Furthermore, Commerzbank has been authorised by the Federal Financial Supervisory Authority to issue Public Sector Pfandbriefe and Ship Pfandbriefe as of the point in time the merger became effective. This authorisation lays the foundation for Commerzbank to continue the issuing activity of Deutsche Schiffsbank AG. In the future Commerzbank can issue Ship Pfandbriefe and Public Sector Pfandbriefe so as to further utilise the possibilities offered by secured funding.

In March 2011 Commerzbank had announced its intention to acquire the minority shareholdings in Deutsche Schiffsbank AG and to merge the company with Commerzbank AG afterwards.

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Simon Steiner +49 69 136 46646 Nils Happich +49 69 136 44986

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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 52 countries and serves more than 15 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of almost EUR 10 billion with 58,160 employees.

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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.

The focus of today's Annual General Meeting of Commerzbank AG is on the resolutions on the election of Dr. Gertrude Tumpel-Gugerell as a new member of the Supervisory Board and on the regular adjustment of the capital resolutions. The 2012 Annual General Meeting will also decide on options for further improvement of the capital structure. The Annual General Meeting of Commerzbank is taking place in the Jahrhunderthalle in Frankfurt am Main.

Klaus-Peter Müller, Chairman of the Supervisory Board of Commerzbank, said in the run-up to the Annual General Meeting: "In the 2011 financial year Commerzbank improved the result of its Core Bank and reduced risks considerably despite a difficult market environment. It has also made a solid start into 2012 in spite of the challenging market conditions. The overall sector trend of lower revenues has also become noticeable at Commerzbank, however. Yet it was able to largely compensate for this through consistent management of the costs and risks."

The Chairman of the Board of Managing Directors of Commerzbank, Martin Blessing, said: "Despite all the adversities, we have achieved important strategic goals in 2011: Firstly, we have successfully concluded the project to integrate Dresdner Bank. Secondly, we have proven that our business model functions even under difficult framework conditions. Thirdly, we have largely reduced the silent participations of the Financial Market Stabilisation Fund (SoFFin). And not least of all we have been able to considerably improve our capital structure through a number of measures."

In the 2011 financial year Commerzbank increased the operating profit of the Core Bank, which encompasses the strategically significant customer-centric business, to EUR 4.5 billion (2010: EUR 2.0 billion). The revenues before loan loss provisions rose at the Core Bank by 14 % to EUR 12.4 billion (2010: EUR 10.9 billion). In contrast to this pleasing development, the non-core areas were clearly impacted by the effects of the sovereign debt crisis. In particular, valuation adjustments on Greek sovereign bonds, as well as the continued de-risking in the Public Finance segment, have led to considerable charges on the result. Nevertheless, in the 2011 financial year the Bank posted a Group net profit of EUR 638 million.

In the 2011 business year the Bank adjusted the value of the portfolios of Greek sovereign bonds by some EUR 2.2 billion. The strategy of risk reduction will be consistently continued. The Bank divested its portfolio of Greek sovereign bonds and further reduced its portfolios in commercial real estate financing and public finance.

"We are continuing to make good progress with de-risking and the portfolio reduction in non-core areas. Alone in the first quarter of 2012 we have lowered the risk-weighted assets by a further EUR 14 billion to EUR 223 billion. At the same time our Core Tier 1 ratio as of the end of March 2012 has increased to a comfortable 11.3 %. Thus we are well prepared for the new regulatory capital requirements pursuant to Basel 3 ¿ which are valid as of 2013 onwards," said Blessing.

Also in the current 2012 financial year Commerzbank has already been able to reach key strategic goals: At the end of March the decision by the European Commission brought clarity for the future orientation of Eurohypo. Accordingly, Eurohypo no longer has to be sold, as originally demanded, by 2014. Instead the Bank will wind down the public finance business and the bulk of the commercial real estate financing. Only a small, less risky area of the Commercial Real Estate business will be continued in Commerzbank.

In addition, Commerzbank has already fulfilled the requirements of the European Banking Authority (EBA). The background to this was the target set by the Council of the European Union last year. Pursuant to this, 71 European banks operating internationally have, as of June 30, 2012, to comply with a Core Tier 1 ratio of 9 % after accounting for the effects of a simulated partial default of European sovereign bonds. That is significantly higher than the current regulatory requirement. The EBA originally determined a capital target of approximately EUR 5.3 billion for Commerzbank.

"We have not only reached the EBA capital target ahead of schedule, but actually surpassed this. That we have done so as of the end of March 2012 on our own and one quarter earlier than required shows the strength in implementation and the high willingness to perform of Commerzbank," said Blessing.

Under www.commerzbank.com/agm you can find the agenda, further documents on the Annual General Meeting, as well as a link for the live broadcast of the speeches by the Chairman of the Supervisory and the Chairman of the Board of Managing Directors.

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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 52 countries and serves more than 15 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of almost EUR 10 billion with 58,160 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.

The euro crisis has hit the Mittelstand (SMEs) real economy with worries about the development of sales markets and planning reliability. 72 per cent of the surveyed companies and as many as 75 per cent of the exporting companies state that the euro crisis not only lowers medium- and long-term planning reliability, but also has a negative impact on their own business activities. 63 per cent fear that the economy is weakening. These are the key results of the twelfth study by "Unternehmer-Perspektiven" ("Entrepreneur Outlook"), a SME initiative of Commerzbank, with the title "Good Debt - Bad Debt: Entrepreneurship in Difficult Times". In January 2012 TNS-Infratest surveyed the managing directors and owners of 4,000 medium-sized companies on the impact of the euro crisis and their attitude to debt. "German medium-sized companies are observing the consequences of the euro crisis with concern yet without any alarmism. The companies know that they have also profited tremendously from the euro in recent years," says Markus Beumer, a member of the Board of Managing Directors of Commerzbank AG and responsible for Mittelstand business. "That the euro crisis has had an impact in terms of economic psychology may be seen from the following example: In response to the question as to which consequences are feared when it comes to financing, nearly one third of the medium-sized entrepreneurs states worries about interest rates and the repayment of loans. And this although interest rates are currently lower than ever before," adds Beumer.

Reasons for excessive indebtedness are management errors and access to loans being too easy As reasons for the financial emergency faced by the public sector and industry the surveyed companies stated management errors, excessive risk and a lack of financial know-how. On one particular point the companies are especially critical: 78 per cent of the respondents believe that one of the main causes of excessive indebtedness on the part of local authorities, federal states and sovereign nations is the fact that credit is too easy to obtain. Only 47 per cent of the respondents see this danger for the Mittelstand economy in contrast.

Lack of planning reliability becomes obstacle to investment Debt and outside financing are regarded critically by the majority of entrepreneurs. 78 per cent agree with the statement "Debts increases risk for the company", whereas only 65 per cent share the view that investments are only possible through debt. A mere 24 per cent of the companies describe debt as the "driving force behind success". Even with investment financiers the proportion of those who initially consider the opportunities associated with borrowed capital is only marginally higher (31 per cent). Against this background the majority of respondents (54 per cent) replied to the question of constraints on investment with uncertain economic framework conditions. A lack of personnel and difficulties securing loans are stated much less frequently (38 and 17 per cent, respectively). Markus Beumer on this: "A credit institute such as ours has, together with its customers, to ask the question of how one can define a responsible attitude to debt so that the necessary investment in growth is not neglected as a result of risk aversion being too great." In line with the motto "Cash is King" 76 per cent of the companies use profits and reserves for financing, 75 per cent the cash flow. Medium- and long-term loans with a term of at least two years are utilised by 59 per cent of the respondents, 60 per cent use short-term loans to meet their funding needs. Alternative forms of financing such as factoring and risk capital are used by a comparatively small number of companies (less than 10 per cent).

Basel III only helps banks and the Mittelstand to a limited extent In the view of the Mittelstand, banks are in a much more stable position than in the 2008/2009 financial crisis. Here in Germany there is much less worry about rising financing costs, greater difficulty accessing loans, the consequences of the implementation of Basel III, and the instability of banking partners compared to the developments on the markets and in the world of politics. "The differentiated view of the Mittelstand shows it is apparent that the reason for the current crisis is not so much regarded as errors in the financial industry but rather the high level of sovereign debt in Europe," says Markus Beumer.

The initiative "Entrepreneur Outlook" and the studies "Entrepreneur Outlook" is an initiative of Commerzbank. Its objective is that of establishing a forum and platform for issues affecting medium-sized companies in Germany. The basis is formed by representative surveys of 4,000 medium-sized companies in Germany. The study results are discussed with representatives of industry, federations, politics, and academia - also on public podia - so as to create mutual understanding and develop sustainable approaches to the challenges facing the Mittelstand.

The complete study, as well as further information on the initiative, is to be found under www.unternehmerperspektiven.de. Please note the new website of the management of Mittelstandsbank at http://www.msb-management.commerzbank.de.

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In the first quarter of 2012 Commerzbank posted an operating profit of EUR 584 million (Q1 2011: EUR 1,144 million) and has thus made a solid start to the year. Adjusted for the positive one-off effect of EUR 358 million from the measure to improve the capital structure in the first quarter of 2011 and a negative effect of EUR 158 million from the increased market valuation of liabilities ("Own Credit Spread" - OCS) in the first quarter of 2012, the operating profit in the Group is at a stable level in a year-on-year comparison. At the Core Bank, which encompasses the strategically significant customer-centric business of Commerzbank, the operating profit was EUR 845 million (Q1 2011: EUR 1,219 million). The original capital target of the European Banking Authority (EBA) of EUR 5.3 billion has already been surpassed by approximately EUR 1.1 billion as of March 31, 2012. Approximately EUR 0.7 billion thereof originate from the measure to improve the capital structure executed in March 2012.

"Despite challenging markets we have made a solid start to 2012. We have again made good progress with our strategic goal of consistently de-leveraging the balance sheet and further strengthening the capital base," said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank. "In the first quarter our priority was achieving the EBA capital target. We have not only reached this goal earlier than required, but even surpassed it."

Downturn in revenues compensated for to a large extent by reduced costs and lower loan loss provisions

The revenues before loan loss provisions in the Group in the first quarter of 2012 were EUR 2,585 million (Q1 2011: EUR 3,616 million). The bulk of this reduction is attributable to a positive one-off effect from the measure to improve the capital structure in the same quarter of the previous year, a balance sheet effect as a consequence of the increased market valuation of the Bank's own liabilities and the de-risking in non-core areas. In addition there were negative effects from the low interest rate environment and the muted client activity. It was possible, however, to compensate the bulk of the downturn in revenues through a significant reduction in costs and lower loan loss provisions. The loan loss provisions in the Group were lowered in the first quarter of 2012 due to the robust German economy and successful risk reduction in commercial real estate financing by more than 30%, to EUR 212 million (Q1 2011: EUR 318 million). However, this was contrasted by higher loan loss provisions in Ship Finance due to the difficult market environment. In comparison with the same quarter of the previous year the operating expenses were reduced by nearly EUR 400 million to approximately EUR 1.8 billion (Q1 2011: approximately EUR 2.2 billion). Cost synergies realised from the take-over of Dresdner Bank and additional cost measures have had a positive impact here.

"If the operating profit in the Group is adjusted for one-off effects, it is at a stable level compared with the strong opening quarter of 2011. The revenues saw charges above all from the consistent de-leveraging, the weak interest environment, and the ongoing reservation of customers, above all in securities business. We were able to compensate for this to a large extent, however, through reduced loan loss provisions and lower costs," said Stephan Engels, CFO of Commerzbank.

All segments of the Core Bank concluded the first quarter of 2012 positively. The Portfolio Restructuring Unit was also profitable and was able to reduce net assets to a single-digit billion number. In the Asset Based Finance segment there were charges on the result from the ongoing de-risking in Public Finance, the wind-down of the Greek sovereign bond exposure, and valuation effects concerning derivatives. In total Commerzbank posted a net profit of EUR 369 million (Q1 2011: EUR 985 million).

EBA capital target already surpassed by some EUR 1.1 billion as of March 31, 2012

As of March 31, 2012 Commerzbank has already achieved the original capital target of EUR 5.3 billion laid down by the European Banking Authority (EBA). As of the end of March 2012 it was possible to surpass the capital requirement, which had already been lowered to some EUR 1.8 billion as of the end of 2011, by some EUR 1.1 billion thanks to several measures. Included in these are retained earnings from the first quarter of 2012 which were used to strengthen the Core Tier 1 capital by some EUR 0.4 billion. In addition, the reduction in risk-weighted assets contributed some EUR 1.2 billion to achieving the EBA target in the first quarter of 2012, and the reduction in regulatory capital deductions and other measures contributed some EUR 0.6 billion. Furthermore, the measure to improve the capital structure that was successfully concluded in March 2012 has strengthened the Core Tier 1 capital by approximately EUR 0.7 billion.Therefore, despite a lower result for the first half of 2012 than originally planned, Commerzbank plans to significantly surpass the EBA capital target as of June 30, 2012.

Risk-weighted assets reduced by 10%, Core Tier 1 ratio rises to 11.3%

Commerzbank continues to consistently implement its strategy of de-risking and de-leveraging non-strategic portfolios. The risk-weighted assets (RWA) were reduced by 10% to EUR 223 billion in a year-on-year comparison (Q1 2011: EUR 248 billion). Compared with the fourth quarter of 2011 the RWA were reduced by EUR 14 billion. The total assets decreased only slightly in comparison with Q1 2011 to EUR 691 billion (Q1 2011: EUR 697 billion). This is due to a further reduction of non-core assets compensated by an increase in liquid assets due to a conservative liquidity management strategy. It was possible to increase the Core Tier 1 ratio compared with the fourth quarter of 2011 by 1.4 percentage points to 11.3%, and thus to a comfortable level. In addition to the strengthening of the Core Tier 1 capital through the repurchase of hybrid equity instruments in March 2012 to the amount of more than EUR 760 million, in the first quarter of 2012 the successful reduction of regulatory capital deductions also had a positive impact on the capital base. "Commerzbank is increasing its Core Tier 1 ratio and is thus preparing itself at an early stage for the new regulatory requirements of Basel 3. Including the stricter capital rules of Basel 3 which are valid as of the coming year, for January 2013 we currently expect a Core Tier 1 ratio of at least 10%," said Stephan Engels.

Funding plan covered for 2012, clear growth in deposits

Commerzbank continues to enjoy a comfortable funding position. In particular as a result of the clear growth in deposits within Commerzbank's branch network and the de-leveraging in non-core areas the Bank has further strengthened its funding profile in the first quarter of 2012. Thus, the Bank has still, from today's stance, already met its need for capital market funding for the current year.

All segments of the Core Bank profitable

The solid operating profit of EUR 845 million at the Core Bank in the first quarter of 2012 shows the stability of Commerzbank's customer-centric business model, which is firmly anchored in the real economy. All the segments of the Core Bank were profitable in the first quarter of 2012.

Even in an ongoing difficult economic environment, the Private Customers segment posted an operating profit of EUR 112 million in the first quarter of 2012, which is on last year's level (Q1 2011: EUR 116 million). Revenues in the private customers business continued to be impacted by the major reservation on the part of customers in the securities segment and low interest rates. It was possible, however, to compensate for this to a large extent through a clear reduction in costs thanks to the integration synergies and additional cost measures, as well as lower loan loss provisions. Thus the operating expenses were lowered by 18% compared to the first quarter of 2011. The focus of the Private Customers segment in the first quarter of 2012 was above all on customer deposits, which increased by approximately EUR 7 billion.

With an operating profit of EUR 487 million Mittelstandsbank again posted a strong result (previous year: EUR 433 million). The segment profited from its business model, which is firmly anchored in Germany's Mittelstand (SME), and thus from the positive earnings position of German companies in the months January to March 2012. In a year-on-year comparison the credit volume in Germany was increased by approximately EUR 1.7 billion. The revenues before loan loss provisions were 6% lower than in the strong first quarter of 2011; compared to the previous quarter it was possible to increase them by 1%. The segment also benefited from the release of loan loss provisions.

Central & Eastern Europe was able to continue the positive earnings trend seen in previous quarters. The operating profit was increased over the first quarter of 2011 by 45% to EUR 87 million (Q1 2011: 60 million). This was mainly due to lower loan loss provisions and again a strong result of Poland's BRE Bank. The revenues before loan loss provisions included a positive foreign exchange rate-driven valuation effect of EUR 15 million from the holding in Russia's Promsvyazbank. The operating expenses were reduced by 12% in a year-on-year comparison thanks to an ongoing cost discipline while the Bank is growing in the region.

The operating profit of Corporates & Markets amounting to EUR 30 million saw charges of nearly EUR 160 million from a balance-sheet effect following an increased market valuation of its own liabilities ("Own Credit Spread"). Without this charge on earnings the operating profit of the segment would have been EUR 188 million (Q1 2011: EUR 240 million; including positive effect of EUR 7 million from "Own Credit Spread"). Customer activity has increased again compared to the weak second half of 2011. It was possible to reduce the operating expenses by 23% in a year-on-year comparison thanks to efficient cost management and the realisation of synergies. The tied-up equity capital of the segment was reduced significantly to EUR 3.2 billion thanks to the RWA reduction of EUR 8 billion (Q1 2011: EUR 4.2 billion).

ABF sees charges from de-risking and wind-down of Greek sovereign bond portfolio, PRU profits from market environment

The Asset Based Finance (ABF) segment saw charges from the ongoing de-risking in Public Finance, the wind-down of the Greek sovereign bond portfolio, and negative valuation effects concerning derivatives. In the Public Finance portfolio the total volume decreased by EUR 22 billion to EUR 82 billion (Exposure at Default) compared to the previous year. The total sovereign bond exposure in the GIIPS states was reduced significantly over the first quarter of 2011, by EUR 4.7 billion to EUR 12.1 billion (Exposure at Default). The volume of the Commercial Real Estate portfolio was lowered by EUR 12 billion to EUR 54 billion (Exposure at Default). In a year-on-year comparison the loan loss provisions were lowered by 26% following successful restructuring in commercial real estate financing. The operating profit in the ABF segment in the first quarter of 2012 was minus EUR 425 million (Q1 2011: minus EUR 138 million).

The Portfolio Restructuring Unit (PRU) posted a strong operating profit of EUR 164 million (Q1 2011: EUR 63 million). The Bank took advantage of the market environment and successfully sold structured securities. In the first quarter of 2012 the assets of the PRU were reduced by EUR 3.2 billion to EUR 8.7 billion, and thus for the first time since the foundation of the segment have reached a single-digit billion number. The PRU assets were reduced by 30% in a year-on-year comparison.

Outlook: Core Bank is well positioned in a difficult market environment

"By achieving the EBA capital target we have reached an important milestone earlier than demanded. Furthermore, with the decision on the restructuring of Eurohypo in March 2012 we established clarity for the future orientation of the Asset Based Finance segment," said CFO Stephan Engels. "For the year as a whole we are aiming for loan loss provisions of a maximum of EUR 1.7 billion. We also have the costs firmly under control. We are on the way to overachieve our cost guidance of EUR 7.6 billion for the year as a whole. The high degree of uncertainty associated with the European sovereign debt crisis will continue to pose a challenge to the Bank's revenue situation, however. But the Core Bank still is well positioned even in a difficult market environment thanks to its customer-centric business model. Given a stable economic environment, we are continuing to aim for a solid operating profit for the full year 2012 in the Core Bank. Moreover, Commerzbank is now already well prepared for the new regulatory capital ratio requirements of Basel 3," said Engels.

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Under www.tvservicebox.de and www.getaudio.de you will find broadcast-ready video and audio material with statements by Stephan Engels from 7.30 onwards on May 9, 2012.

The videos can be viewed directly using mobile end devices. Statements Stephan Engels: http://cbvideo.commerzbank.de/2012/Engels_en/index.php

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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 52 countries and serves more than 14 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of EUR 9.9 billion with 58,160 employees.

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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.

Commerzbank is to remain a "Premium Partner" of the German Football Association (DFB) for a further four years. The Bank and the DFB have extended their agreement through to June 30, 2016. Thus both parties are continuing the partnership that commenced in 2008 and are intensifying the cooperation. "The DFB and Commerzbank are continuing the successful cooperation, and in the coming four years will again place the emphasis on partnership and performance. An excellent combination, for these values are lived out both in the Bank and at the DFB," said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank. "We will continue our intensive cooperation with the DFB in the field of professional and popular sport. Football is important for our society, for it encourages values such as integration, fairness and respect."

"Continuity and sustainability play a decisive role in a successful partnership. We are pleased, therefore, that we will also be cooperating with Commerzbank in the future," explains DFB President Wolfgang Niersbach. The cooperation ranges from encouraging young talent through to the men's and women's national teams. Thus Commerzbank is promoting popular and professional sport in a multifarious manner. "Commerzbank has long been a partner committed to football," says Niersbach.

Martin Zielke, Board member of Commerzbank responsible for private customer business: "The campaign with the national football team supports our growth path in the private customer business. The team is a true ambassador and will make our services even better known in the run-up to the European Championships."

In the run-up to and during the European Football Championship the premium partnership between Commerzbank and the DFB will be experienced by a major audience. In the framework of a joint campaign with the German national football team, Commerzbank is advertising its free current account in the classical and digital media. This account has been available since April 2012 with a credit card that is fee-free for the first year, and which upon request is also available with a motif of the national team.* At the focus of the campaign will be a TV spot with players from the German national team.

For the forthcoming European Football Championship Commerzbank wishes the German team every success. "All of us at Commerzbank are already looking forward to an exciting tournament. We are keeping our fingers crossed that the German team can carry off the title," said Martin Blessing.

Commerzbank has been closely associated with football for many years, both at professional level as well as at popular level: Thus since 2005 the bank has given its name to the "Commerzbank-Arena" football stadium in Frankfurt and also been a partner to the successful women's soccer team at 1. FFC Frankfurt. Commerzbank has also been active in the field of talent encouragement and the promotion of young players for more than 25 years: For example with the annual Drumbo-Cup - the biggest indoor tournament for primary schools in Germany - and the "Girls Wanted" initiative to promote girl's football at grass roots level. The football commitment is rounded off by the premium partnership with the DFB. In the framework of this cooperation the bank is supporting the men's and women's national teams. Furthermore, Commerzbank was a national sponsor of the 2011 FIFA Women's World Championships in Germany.

Press contact Commerzbank: Simon Steiner +49 69 136 46646 Maximilian Bicker +49 69 136 28696 Kathrin Wetzel +49 69 136 44011

Press contact DFB: Ralf Köttker +49 69 6788 234

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About the DFB

With more than 6.8 million members, organised in nearly 26,000 clubs, the DFB is one of the world's largest sport federations. With the men's team a three-time winner of both the World and European Championships, and the women's team having won the World Championship twice and the European Championship six times, at international level the DFB is one of the most successful football federations.

About Commerzbank

* The prerequisite for free account management is a monthly payment of at least EUR 1,200. If the payment in any given month is lower than this, an account management fee of EUR 9.90 is charged for the month. The annual fee for the MasterCard credit card is waived in the first year, and thereafter amounts to EUR 29.90 per annum. The annual fee for the motif is EUR 5.

Commerzbank AG has opened a representative office in Bangladesh's capital, Dhaka, thus expanding its network on the up-and-coming Indian subcontinent. Commerzbank's strategic target is to increase its presence precisely in global growth markets. The new representative office will be a contact for local banks and for German and international companies in Bangladesh.

Commerzbank holds a traditionally strong market position in import and export business between Germany and Bangladesh. "We are convinced that we will be able to significantly increase our market shares in import and export business with Bangladesh through our local presence," stresses Christof Gabriel Maetze, Member of the Executive Management Board, Head of Financial Institutions at Commerzbank AG.

The basis for the further development is the constant growth of the economy in Bangladesh. For 15 years now the growth rates have been between 5 and 6 per cent per annum and proved robust even in the financial crisis.

Commerzbank has 13 more branches and representative offices in Asia, including Bangkok, Beijing, Hong Kong, Shanghai, Singapore, and Tokyo. The Bank is represented at around 60 locations in 52 countries worldwide. Commerzbank's Financial Institutions division maintains relations with more than 7,000 credit institutions worldwide.

With a customer base of more than 100,000 small and medium-sized enterprises (revenue of more than EUR 2.5 million) and banking relationships with just about all major German companies, Commerzbank regards itself as a strategic partner for corporate customers regionally, nationally in Germany, and internationally on the global markets of Germany's strongly export-oriented economy.

The intensive cooperation of the Mittelstandsbank with the Corporates & Markets division, Commerzbank's investment banking section, means that corporate customers receive services and products from one source. In addition to its activity in corporate finance business, with IPOs, mergers and acquisitions, through bonds to structured financing transactions and restructuring measures in Asia, Corporates & Markets is also strongly represented in the areas of equity, fixed income, and currencies.

*** 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 52 countries and serves almost 15 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of almost EUR 10 billion with 58,160 employees.

Commerzbank invites its shareholders to its Annual General Meeting in the Jahrhunderthalle in Frankfurt am Main on Wednesday, May 23, 2012. The agenda includes the usual formalities such as presentation of the consolidated and individual financial statements for 2011 (item 1), approval of the actions of the corporate bodies (items 2, 3) and the election of the auditor of the annual accounts (items 4, 5).

The following additional items on the agenda should be emphasised:

Election of new members of the Supervisory Board (item 6)

Dott. Sergio Balbinot has resigned early from his position as a member of the Supervisory Board of Commerzbank AG, with effect from the end of the 2012 Annual General Meeting. The Supervisory Board therefore proposes to the Annual General Meeting that Dr. Gertrude Tumpel-Gugerell is to be elected to Commerzbank's Supervisory Board for the remainder of Dott. Sergio Balbinot's term of office until the Annual General Meeting that will decide about approving actions in the financial year 2012. Dr. Gertrude Tumpel-Gugerell is a former director of the European Central Bank and is now retired.

Standard resolutions to adjust the authorised and conditional capital (item 7 and 9)

The authorised capital of listed companies is restristed to up to 50 % of the share capital pursuant to the German Stock Companies Act. If the portion of the existing authorised capital in relation to the current share capital has reduced, the company may adjust the authorised capital correspondingly by a resolution of the Annual General Meeting. Commerzbank has partially used the existing authorised capital (Authorised Capital 2011) for the capital increase against contribution in kind of around EUR 0.4 billion carried out at the beginning of March 2012. The share capital has also been increased by more than EUR 2.1 billion to around EUR 5.6 billion since the previous Annual General Meeting. The authorised capital is therefore to be amended through the regular adjustment process as part of the usual anticipatory resolutions. In addition to the remaining Authorised Capital 2011 (around EUR 1.6 billion) a further authorised capital of up to around EUR 1.2 billion (Authorised Capital 2012/I) is therefore supposed to be established.

The standard resolutions also comprise the authorisation to issue convertible bonds, bonds with warrants and/or profit sharing rights as part of the regular adjustment process to the current share capital (item 9). Subject to the approval of the Supervisory Board, the Board of Managing Directors therefore shall be authorised to issue, once or on multiple occasions, convertible bonds, bonds with warrants attached and/or profit sharing rights with a total nominal amount of up to EUR 8.4 billion. These securities may grant conversion rights or options entitling the holders to subscribe to up to 2.75 billion Commerzbank shares from new conditional capital (Conditional Capital 2012/I) in the amount of up to EUR 2.75 billion. This new authorisation replaces the authorisation granted by last year's Annual General Meeting (Conditional Capital 2011/II).

Protection against dilution for the Financial Market Stabilisation Fund (SoFFin) (item 10)

SoFFin is also to receive new Commerzbank shares in exchange for the full or partial contribution of its silent participation, in order to maintain its stake in the company's share capital of 25 % plus one share in the event of further capital increases. This protection against dilution on the basis of the Financial Market Stabilisation Acceleration Act is to be adjusted to the new authorisation for capital measures to be resolved at the Annual General Meeting. On March 7, 2012, SoFFin made partial use of the conditional capital resolved at the 2011 Annual General Meeting (up to around EUR 0.9 billion; Conditional Capital 2011/III) under its exchange right in order to maintain its stake of 25 % plus one share after the capital increase against contribution in kind. This reduced the Conditional Capital 2011/III to around EUR 0.8 billion. To supplement this conditional capital, Commerzbank's share capital may now be increased by up to around a further EUR 0.9 billion through the issue of new Commerzbank shares. A conditional capital increase of this kind is only carried out to the extent that SoFFin exercises its exchange right in order to maintain its stake in Commerzbank's share capital.

Options to further improve the capital structure (item 8)

With the new edition of the Financial Market Stabilisation Acceleration Act of February 24, 2012, the legislative body has provided the opportunity to further improve the capital structure. This legislation thus provides the opportunity to convert silent participations, which had been granted in the context of the financial crisis 2008 and 2009, into Core Tier 1 capital. As the silent participation of Allianz is not recognised as Core Tier 1 capital, the possibility of replacing it with share capital could therefore be an option for further optimising the capital structure. Pursuant to the equity capital requirements under Basel 3, the silent participation provided by the State in the context of the financial crisis 2008 will be recognised as Core Tier 1 capital only until the end of 2017. With item 8, the Board of Managing Directors of Commerzbank shall therefore receive the opportunity, with the approval of the Supervisory Board and in agreement with the silent partners, to redeem the existing silent participation of Allianz SE of EUR 0.75 billion and the silent participation of SoFFin amounting to around EUR 1.7 billion in the context of capital measures through the partial or full contribution of the silent participations. To this end, an authorisation shall be resolved pursuant to the Financial Market Stabilisation Acceleration Act in the edition of February 24, 2012 during the period through May 2017. In particular, this is to authorise the Board of Managing Directors of Commerzbank to increase Commerzbank's share capital by up to around EUR 2.4 billion in exchange for the partial or full contribution of the silent participation of Allianz SE and/or SoFFin. This authorisation also allows for a capital increase in exchange for cash to repay the silent participations of SoFFin and Allianz.

Shareholders who have registered at the latest by the end of May 16, 2012, are entitled to participate in the Annual General Meeting and exercise their right to vote. Excerpts of the Annual General Meeting of Commerzbank can be followed live on the internet from 10.00 a.m. on May 23, 2012. Access will be provided at www.commerzbank.de/hv.

The complete text of the invitation to the 2012 Annual General Meeting, including the agenda and the explanatory notes to the individual items, can also be found here.

***

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.

The European Commission today informed the Federal Republic of Germany that it has changed the condition imposed on Commerzbank in 2009 to divest its subsidiary Eurohypo into a condition to run down the company. Accordingly, Commerzbank has to reduce in full both the state financing business (Public Finance) as well as the bulk of the commercial real estate financing (non-core areas Commercial Real Estate) of Eurohypo. Merely a clearly scaled-down part of the commercial real estate financing in Germany, United Kingdom, France, and Poland may be continued.

"The amended conditions of the EU Commission are challenging, but acceptable. We will consistently continue with the chosen course of a reduction in the Eurohypo portfolios. The objective is that of continuing a small, lower-risk area of the commercial real estate business in Commerzbank," said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank.

In accordance with the conditions imposed by the European Commission, the non-core activities of Eurohypo (Public Finance and non-core areas in Commercial Real Estate) have to be clearly separated in organisational terms from the core activities (core areas in Commercial Real Estate). The non-core activities will be managed in a new group-internal reduction unit in the future. The clearly scaled-down commercial real estate business in Germany, United Kingdom, France, and Poland will be part of the newly-formed Core Bank segment "Real Estate and Ship Finance" (RES) of Commerzbank. In accordance with the conditions imposed by the European Commission, the Eurohypo brand has to be given up. While adapting to the changing business framework conditions, Eurohypo will be continued for the time being. The new company name will be announced at a later point in time.

The decision by the EU Commission also foresees other conditions: Excepting the non-core activities, Commerzbank has to reduce its balance sheet to 600 billion euro as of the end of 2012 and it may not exceed this level until the end of 2014. In addition, the acquisition ban has been extended to the end of March 2014.

Portfolios of the reduction areas shall be consistently decreased Among the business areas of Eurohypo to be reduced are the Public Finance business and the Commercial Real Estate portfolios outside the markets in Germany, United Kingdom, France, and Poland. Thus, the Bank is withdrawing in the Commercial Real Estate business from 29 of the original target markets at Eurohypo. The two areas are to be managed in a new reduction unit with the name "Non Core Assets" (NCA). Here, Commerzbank will continue its strategy from past years in the future: In the period from 2008 to 2011 the Public Finance portfolio had already been reduced by some 40 %. The portfolio volume in Commercial Real Estate was lowered by more than 20 % in the same period. The objective of Commerzbank is to further consistently reduce the portfolios of these non-core activities. The new reduction unit is not part of the Core Bank of Commerzbank. On the Board of Managing Directors of Commerzbank it will be the responsibility of Ulrich Sieber.

Reduced core activities in Commercial Real Estate will be continued in Commerzbank In operational terms, the reduced Commercial Real Estate business is to be gradually transferred to Commerzbank AG in the coming years. It will be continued in the future as part of the new Commerzbank segment "Real Estate and Ship Finance" (RES). In accordance with the conditions imposed by the EU Commission, the core-activities in the area of Commercial Real Estate may not exceed a volume of 25 billion euro including the annual maximum new business volume of 5 billion euro through to the end of 2015. The core activities in the area of Commercial Real Estate will continue to be optimised in terms of its risks and profitability. "There will always be a need for commercial real estate financing. We are, therefore, pleased to be able to continue to offer this product. We will, however, run this business in the future so that it is much more focused and the risks are lower," said Thomas Köntgen, Chairman of the Board of Managing Directors of Eurohypo, and responsible in the future at Commerzbank for the core area Commercial Real Estate.

Newly-formed segment "Real Estate and Ship Finance" (RES) will be an integral part of the Core Bank The newly-formed Commerzbank segment "Real Estate and Ship Finance" (RES) will replace the existing segment Asset Based Finance (ABF) as of July 1, 2012, and will be part of the Core Bank in the future. It comprises the three areas Ship Finance, Asset Management & Leasing, and the Commercial Real Estate core activities. "All three business areas are strategically important elements of Commerzbank. In the past years we have optimised every single one of these areas. We have restructured the portfolios and consistently reduced the risks," said Jochen Klösges, the member of the Board of Managing Directors of Commerzbank responsible for the "Real Estate and Ship Finance" (RES) segment in the future. "We will continue along this course. We intend to make a sustainable and positive contribution to the business success of Commerzbank."

Outlook: Details on implementation will be elaborated in the coming months A major milestone in the implementation of the amended conditions of the EU Commission is the transparent organisational separation of the core activities Commercial Real Estate and the non-core activities (Public Finance and non-core areas Commercial Real Estate). The corresponding details on this will be elaborated in the coming months.

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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 52 countries and serves more than 14 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of EUR 9.9 billion with 58,160 employees.

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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.

Despite a difficult market environment in the 2011 business year, Commerzbank posted a Group operating profit pursuant to IFRS of EUR 638 million. At the Core Bank, which encompasses the strategically significant customer-centric business of Commerzbank, it was possible to increase the operating profit substantially to EUR 4.5 billion, compared to EUR 2 billion in 2010.

"2011 was both an eventful and challenging financial year - as well as a somewhat uneven one - for Commerzbank. Performance was very strong in the first half of the year, both in terms of profitability and with respect to the achievement of strategic milestones. However, like all other banks, we navigated into far more turbulent waters in the second half of the year," said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank in the 2011 Annual Report submitted today.

In the first half of 2011 the integration of the former Dresdner Bank was successfully concluded to a large extent. The last major milestone to be achieved was the migration of client and product data over the Easter weekend 2011. Furthermore, the improvement of the capital structure was crucially important in 2011. Between April and June 2011 Commerzbank performed a two-stage EUR 11 billion capital increase. Thus, the Bank redeemed EUR 14.3 billion of the silent participations of the Financial Market Stabilisation Fund (SoFFin), and therefore a significant proportion of the participations. Moreover, in the first and fourth quarters of 2011 Commerzbank successfully repurchased hybrid equity instruments.

In the second half of 2011 the European sovereign debt crisis heightened considerably, leading to charges on results. In particular, the associated write-downs on Greek sovereign bonds totalling EUR 2.2 billion had a negative effect on earnings. In November 2011 the European Banking Authority (EBA) determined, on the basis of a simulation of a partial default of European sovereign bonds, the capital requirement for European banks as of the cut-off date June 30, 2012. The EBA capital requirement of EUR 5.3 billion determined for Commerzbank at that time could already be reduced by a significant amount by the end of 2011. Taking into account the repurchase of hybrid and subordinated capital instruments completed at the beginning of March 2012, the capital requirement in accordance with the EBA demands has been reduced by more than 80 %, to some EUR 1 billion. On the basis of the current business planning and presupposing no further deterioration in the macroeconomic framework conditions, by June 30, 2012 with the measures already initiated the Bank expects to attain further positive effects of as much as EUR 2.9 billion to cover the EBA capital requirement.

Martin Blessing: "We are making excellent progress with the implementation of our package of measures to strengthen the Core Tier 1 capital ratio. Following the conclusion of the measures we expect a Core Tier I ratio of more than 11 %. This would not only comply with the current regulatory minimum capital ratios, but also those to come into effect under Basel III"

As a result of the net loss for the year in the results of Commerzbank AG pursuant to the German Commercial Code (HGB), for 2011 the Bank cannot service the silent participation of SoFFin and other capital instruments, nor can it pay a dividend. The total monetary remuneration for the members of the Managing Board of Commerzbank is - as before in the years 2008 to 2010 - EUR 500,000 per board member. The total monetary remuneration of the board members amounts to EUR 4.8 million (pages 43 to 55). The number of employees in the Commerzbank group as of the end of December 2011 was 58,160 (page 137).

Outlook

As a consequence of the European sovereign debt crisis there will again be a high degree of uncertainty on the market in the current year. In this respect the Bank believes the following particular aspects will impact on the business activities of Commerzbank in the current year and probably also in 2013: Cautious economic growth, low interest rates and somewhat tense financial and capital markets. "It remains difficult to predict how the European sovereign debt crisis will affect the current financial year. We are confident, however, that we will post a solid result in the Core Bank by virtue of our strong market position. Thanks to the successfully concluded integration of Dresdner Bank to a large extent, the position of Commerzbank has been clearly strengthened. Fundamentally, we intend to adhere to the business model, which promises the potential for sustainable earnings," said Martin Blessing. Conditional upon stable markets, the Bank expects the results for 2013 to be an improvement on those of 2012.

Here you will find the Annual Report 2011.

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About Commerzbank

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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.

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA OR TO U.S. PERSONS

In connection with the measure to improve its capital structure announced on February 23, 2012, the execution of the capital increase by means of a contribution in kind of 360,509,967 shares was registered in the commercial register today. As previously announced, the new shares were issued against the contribution in kind of hybrid capital instruments, subordinated debt securities and other capital instruments issued by Commerzbank and other companies to Commerzbank.

Subsequently, the German Financial Market Stabilisation Fund (SoFFin) has converted a portion of its silent participations into shares in order to maintain its equity interest ratio in Commerzbank (25% plus one share). This will result in a portion of the silent participation with a nominal value of approximately EUR 230.8 million being converted into 120,169,989 shares, using the conditional capital authorised in the 2011 Annual General Meeting of shareholders. SoFFin¿s remaining silent participation in Commerzbank therefore is reduced to approximately EUR 1.71 billion.

With the execution of both capital measures, the total number of Commerzbank shares has increased to 5,594,109,009 shares. The new shares will be included in stock exchange trading for the first time on March 8, 2012.

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About Commerzbank

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IMPORTANT NOTICE

This document does not constitute an offer of securities in any jurisdiction where such offer would be unlawful. In the European Economic Area, the exchange offers referred to herein were made exclusively to "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive. Qualified investors include (a) legal entities that are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities; or (b) legal entities which have two or more of (i) an average of at least 250 employees during the last financial year; (ii) a total balance sheet of more than EUR 43,000,000; and (iii) an annual net turnover of more than EUR 50,000,000 as shown in their last annual or consolidated accounts.The exchange offers described herein were not made, and will not be made, directly or indirectly in or into, or by use of the mail of, or by any means or instrumentality of interstate or foreign commerce of or of any facilities of a national securities exchange of, the United States.

Accordingly, copies of this release and any other documents or materials relating to such exchange offers are not being, and must not be, directly or indirectly mailed or otherwise transmitted, distributed or forwarded in or into the United States. These materials do not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Commerzbank does not intend to conduct a public offering of shares in the United States.

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 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.

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