Commerzbank: negotiations with the employees' representatives well advanced - booking of complete restructuring charges for the implementation of the Commerzbank 4.0 strategy in the second quarter of 2017 expected - leads to negati
Commerzbank: negotiations with the employees' representatives well advanced - booking of complete restructuring charges for the implementation of the Commerzbank 4.0 strategy in the second quarter of 2017 (EUR ~810m) expected - leads to negative Group net result in the second quarter Commerzbank is well advanced in its negotiations with the employee representatives on the implementation of the Commerzbank 4.0 strategy. However, required decisions by the Group and Central workers' councils are still pending.
Based on the current status of negotiations Commerzbank is confident that an overall balance of interests agreement between employees and employers and a severance scheme agreement can be reached shortly. Therefore Commerzbank expects to book restructuring charges of approximately EUR 810 million in the second quarter, which compares to originally planned EUR 550million for 2017 and 2018 respectively. This provision would cover the full restructuring charges required to realize the personnel reductions for the implementation of the Commerzbank 4.0 strategy. Further charges are not expected.
Including the above mentioned restructuring charges, Commerzbank expects a negative net result in the second quarter. Given weaker markets the Bank anticipates a lower operating result in the second quarter compared to the first quarter 2017. 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.
Figures shown in this release are preliminary. Commerzbank will publish its final figures for the second quarter 2017 on 2 August 2017.
Contact: Christoph Wortig Head of Investor Relations Commerzbank AG Investor Relations Tel.: +49 69 136 - 21331 e-mail:email@example.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.
23-Jun-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English
Company: Commerzbank Aktiengesellschaft Kaiserstraße 16 60311 Frankfurt am Main
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585679 23-Jun-2017 CET/CEST