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    CBK   DE000CBK1001

COMMERZBANK AG

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Commerzbank retains securities settlement in-house - outsourcing project stopped

07/22/2021 | 09:58am EDT
Commerzbank Aktiengesellschaft (CZB) 
Commerzbank retains securities settlement in-house - outsourcing project stopped 
22-Jul-2021 / 15:57 CET/CEST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
- Exceptional write-off in the amount of around EUR200 million necessary in Q2 
- Growth of securities transactions makes in-house settlement profitable 
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 
EUR200 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 EUR6.5 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 
***** 
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 EUR8.2 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. 
=---------------------------------------------------------------------------------------------------------------------- 
ISIN:          DE000CBK1001 
Category Code: MSCU 
TIDM:          CZB 
LEI Code:      851WYGNLUQLFZBSYGB56 
Sequence No.:  118240 
EQS News ID:   1221038 
 
End of Announcement  EQS News Service 
=------------------------------------------------------------------------------------
 
Image link: 
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1221038&application_name=news 
 

(END) Dow Jones Newswires

July 22, 2021 09:57 ET (13:57 GMT)

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