September 29, 2016 / 8:47 AM / a year ago

BRIEF-Commerzbank: strategy and financial objectives 2020

Sept 29 (Reuters) - Commerzbank AG :

* Board of managing directors presents strategy and financial objectives 2020 to the supervisory board

* As part of “Commerzbank 4.0” strategy, it will concentrate on its core businesses, digitalise 80 percent of relevant processes, and thereby achieve significant efficiency gains.

* Business will be focused in two customer segments, “Private and Small Business Customers” and “Corporate Clients”

* Goodwill and intangible assets of both corporates & markets and mittelstandsbank will be subjected to an impairment test. This means that most probably around 700 million euros ($785.19 million) would be written off in Q3 of 2016

* Net result would be negative in Q3. Write-Offs do not affect Common Equity Tier 1 (CET 1) ratio

* Despite goodwill write-offs, commerzbank is expecting a small net profit for 2016 as a whole.

* CET 1 ratio after full application of Basel 3 will be higher in Q3 of 2016 than in previous quarter

* Commerzbank is aiming for a net return on tangible equity (RoTE) of at least 6 percent by end of 2020

* By end of 2020 Commerzbank will have sustainably increased its profitability

* Commerzbank is expecting revenues for 2020 to total between 9.8 billion and 10.3 billion euros

* For 2020 bank expects a ratio of above 13 percent

* Says staff reductions amounting to around 9,600 full-time positions

* At same time, around 2,300 new jobs will be created in areas of business growth

* To cover its restructuring will cease dividend payments for time being and will retain its full earnings Source text for Eikon: Further company coverage: ($1 = 0.8915 euros) (Gdynia Newsroom)

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