DGAP-News: Commerzbank Aktiengesellschaft / Key word(s): Quarter Results 
Commerzbank with strong results in the first quarter - transformation successfully started 
2021-05-12 / 07:00 
The issuer is solely responsible for the content of this announcement. 
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- Revenues in Q1 increased by 35% to EUR2.49bn (Q1 2020: EUR1.85bn) 
- Low risk result of minus EUR149m (Q1 2020: minus EUR326m) 
- Strong operating result of EUR538m (Q1 2020: minus EUR278m) 
- Net result of EUR133m (Q1 2020: minus EUR291m) despite restructuring charges of EUR465m 
- Common Equity Tier 1 ratio improved to 13.4% 
- Full year outlook raised after good start into the year 
- Agreement reached with employee representatives for personnel reduction 
- Ambitious sustainability goals defined 
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 EUR538 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 EUR100 billion to EUR300 
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 CO[2] emissions as far as possible and to achieve 
net-zero CO[2] 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 EUR2,492 million (Q1 2020: EUR1,851 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 EUR126 million in the first quarter. The 
underlying revenues excluding exceptional items rose to EUR2,308 million (Q1 2020: EUR2,024 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 EUR149 million was below the year-on-year value (Q1 2020: minus EUR326 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 EUR495 million at the end of 
March. 
Operating costs fell to EUR1,469 million (Q1 2020: EUR1,503 million). Administrative expenses benefited from lower spending 
for advertising, depreciation, and travel. The burden of compulsory contributions continued to rise by almost 12% to 
EUR336 million (Q1 2020: EUR301 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 EUR1,806 million (Q1 2020: EUR1,804 million) and 
thus remained stable overall. 
Total operating profit amounted to a strong EUR538 million (Q1 2020: minus EUR278 million). This more than compensated for 
the restructuring charges of EUR465 million booked in the first quarter. The consolidated profit attributable to 
Commerzbank shareholders amounted to EUR133 million (Q1 2020: minus EUR291 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 EUR307 billion by the end of March - a plus of EUR17 billion by comparison with 
year-end 2020 and EUR67 billion year-on-year. This was primarily due to strong securities business with an increase in 
volume of EUR15 billion since the beginning of the year. Out of this, EUR5 billion was net new money. Since the turn of the 
year, the loan volume went up by EUR2.4 billion to around EUR115 billion. Once again, the driver for this growth was 
successful mortgage business, which increased year-on-year by 7% to a volume of nearly EUR88 billion. 
Total underlying revenues for the Private and Small-Business segment amounted to EUR1,338 million (Q1 2020: EUR1,329 
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 EUR250 million (Q1 2020: EUR146 million). 
The Corporate Clients segment maintained almost stable underlying revenues at EUR824 million (Q1 2020: EUR833 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 EUR842 million (Q1 2020: EUR755 million). 
A low risk result of minus EUR52 million (Q1 2020: minus EUR165 million) and a further reduction in costs led to a positive 
operating result for the segment of EUR98 million (Q1 2020: minus EUR112 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 EUR6.5 billion. While uncertainty of the further 
development of the pandemic remains, a risk result in the range from minus EUR0.8 billion to minus EUR1.2 billion is 
anticipated. Based on current observations, a risk result up to minus EUR1 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. 
Financial figures at a glance 
in EURm                                            Q1 2021 Q1 2020 Q1 2021 vs   Q4 2020 Q1 2021 vs   FY

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May 12, 2021 01:01 ET (05:01 GMT)