Sept 29 Commerzbank AG :
* Board of managing directors presents strategy and financial objectives 2020 to the
* 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)
* Despite goodwill write-offs, commerzbank is expecting a small net profit for 2016 as a
* CET 1 ratio after full application of Basel 3 will be higher in Q3 of 2016 than in
* 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
* 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
Source text for Eikon:
Further company coverage:
($1 = 0.8915 euros)