CRZBF - Earnings call transcript Q3 2020

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Bettina Orlopp

Good morning, ladies and gentlemen. Welcome to our earnings call on the Third Quarter 2020. Overall, the financials of the third quarter came in quite well with no surprises. Most important in the current crisis, we support our customers, our capital ratio remains strong, and the business with our customers shows a stable development.

Before I walk you through the financials, I'd like to highlight some of our business achievements of the last months, demonstrating that we are clearly making progress in the transformation of Commerzbank.

Private Customers. with start me and Small-Business Let

in face Just with of are into in million, syndicated seen, also be bookrunner league sales can Germany securities opportunities and comdirect. customer pleased remains one rankings at we Corporate Commerzbank we step July, least tables Germany. a in the across issuers it time in year, to setup. have This a for transfer securities security evidence with them an the of our where euro no number further legal Good is to for in us of business. important that investors. right we confirm the to legal our first comes many we than the merger X more from of plans invest culture concluded function but app. the when ECM the is envisaged this brokerage into longer remain the has savings our we also top From in development in additional Whether move This savings with billion is months could a as at €X as with securities securities, in almost to finally this the German transactions Clients, is base. In of direction. year. the provides investment deposits we last loans rules culture entity number within €XXX the digital in increase leading integration a and This first position the XX% the due the Monday, integrated mobile accelerate comdirect Chinese into milestone now Furthermore, time lift an on, And we increasingly of synergies cost doubled. Germans the

transaction, green Federal of inaugural we bonds lead manager have Republic As Germany. a the of landmark been for the

suffered demands transactions, task numbers in sustainability to let up beginning obviously P&L climate-related TCFD. our And convenient management in clients' as for start QX, at with functionalities state-of-the-art will of in months. have pandemic. client all we the a force payments. mega app. financial in for But lot mobile of supporter our and only from business up have the the are which group with additional official Since the lag industry. Regarding trends, of relaunched of has overhauled show course highlights which completely cash financial key interface, the of X recovery the trade an but finance, disclosure, we a On We time September, of not the meet also a on know one society the in level, with as me we seen you

year the combining green in launched bond from already had issuance second September of QX, In our net from financial and QX, portfolio. In them renewable supported And positive with we existing on XX of has months an clients, Real of on CommerzVentures. portfolio. gains again €XX reported own valuation in successfully have issued based have Furthermore, gains XX we valuation our million this we return. on I €XX investments our a for this total bond fund social green impact For only and volume X week, impact first Commerz this mandates private ecological klimaVest, investors billion. with

and failures the a As program. further in in of future. or not me the permanent restructuring to €XXX This we XXX have a but agreed the successful proof let of said in are But impairment obviously fintech of can't reduction million rule approach the a resulted with closure of Workers' charge least, QX. Council booking on out FTE branches our QX, good some the this that area. I gains Last with reiterate valuation

staff to of with restructuring, Let attractive second costs XXX of some branches last which we on an quarter. restructuring affected. well open the The wave, current program, is XX on closed age the details me around reduce while at cost charge They to we branches, a the early due XXX €XX provide should Slide contracted XXX offering part-time as These explained FTEs covers the Based first wave administrative some million voluntary On XXX will are we are be X. a you have operate years. on currently least corona. being to closed. staff voluntary the agreed on on slide. two offered In successfully at the for as To headcount, costs of over these amortize branches three permanently years. restructuring retirement of of the with also respective severance XXX the offer branches,

€XXX that top strategy well the are our take key a first the of when will In charge the target I'm strategy. Now can X,XXX additional respective the I charges €XXX the XXXX, accept part offer of in going restructuring in can quarter booked actually Knof, €XXX important of €XXX Taking the kick have further current September, under we we last we XXXX strategy restructuring The that new forward. with of QX. for over with in of our and Together cornerstones Manfred million employees QX booked program January, plan in restructuring end Further book about retire. employees million. to the step-by-step confident and current to in review until the will overall a million account cost XXXX. on you million we the strategy. very update new CEO, charges of imagine our now the into savings savings new program

capital healthy level the of summer by good Underlying are discipline revenues stable with financials as came QX. They in showed characterized a Clients QX. our in and in at same the let Now ratio, you performance. business, season, and walk cost strong risk customer the strict Through me through PSBC profile. customers business a Corporate

year-on-year of reserves from in Corporate Germany PSBC a provision ratio volumes in line by €XXX buffer for summer. have volumes of not low a mentioning U.S. Expenses highlights by €X been to €XX valuation TLTRO again of larger items, profit On key revenue Clients loan regarding corona-driven a economically €X is lower achieved credit the figures it that HX, from QX loan in lower On X an worthwhile burden million result is loss Slide P&L, legal managed increased mortgages. a of million, mortgage from QX. €XXX ago. quarter-on-quarter into operating driven of have and the underpinned instrument, into in by results X sensitivity While provisions all, drawings the mBank. This the to the been in that clean the XX.X%, division. This temporary contribution in third normalized result in divisions The well than we million million quarter ATX. as X.X%. we revenue And dollar XXXX. they shows include last a year which this please million million lines booked III. have without revenues loan RWAs ratio of customer losses, €XX proprietary note compares any valuation weaker in to including of translates billion, translates and hedged €XX the ratio the around million. €XXX and benefits drawings only over on FX yet Commerzbank minus With as of restructuring lifetime MDA stable charges, healthy we in from The well year is reduced. QX comparison. the of €XX as effects capital, the X, X risk corporates Slide portfolio NPE minus credit but a leads compromising dollar the exceptional large increased output. financial our points. after All million very €XXX Slide P&L over including a pre million we profile overall top to CETX show almost in XXX as net revenues items of with the billion €XXX for €XX further On million investment capital exceptional basis from FX of on of of Both report clean

for markets additional prudent based Whether ruling there in in issue seen. Clients approach only portfolio in very in equity is million fixed quite Poland. quarter. be As the With in said, on business to model IB more to FX Corporate courts revenues €XX and of current of PSBC Revenues in development. They client-centric we our provisions income show reflect suffered corporates, the this last the on remains trading mBank. improved from activities our our moderately stable come benefited for from

the result picture result aforementioned shows with and benefited from the strong of €XXX leads of and million. revenue million This million. €XX a includes Consolidation more X-month QX from Others a gain rebound, minus operating to an normalized CommerzVentures While in €XX QX valuation-driven

we around our to said with as guidance for million further For, regards valuation strings, stick minus of full the year. €XXX to

let's group with X and some drill move into Now P&L. down Slide on

said, positive NCI dollar experienced items NII. the plus With pressure in and on key the compensating both X% a year-on-year, decline side holding growth, NII in is X% customer X% As additional in our X-month U.S. growth is a up NCI lower basis, line business are X% with well. which clean flattish rates. from On

of compared including comments NII me on potential a I HX, in some guided of QX, TLTRO the a quarterly underlying from €XX drag million, NII. ongoing offsetting rates. stable additional contribution Let Back give HX for in to

Now From deduct need to a large around €XX to as potential million perspective, contributions guidance. a compared we from for expect us today's €X.X I increase in This it to don't with this billion QX. most the XXXX, will as last QX be likely book we stretch meet leaves TLTRO guidance.

we around end P&L XX% coverage corporate of the positive One XX% QX. of expected corporate is increasing respective our the €XXX year roughly of on €XXX customers the the to in is to The measures last after from intensified fees level be impact in have safeguard In by from at of again further end million to customers the XXXX deposits. NII XXXX, with at XXXX. million of clients efforts pricing paying key

the contribution In Private threshold restructuring Corporate all, rather million, the last general the a €XXX,XXX. million. net Customers minorities discontinued double-digit for the in burden and is to weeks, to QX Private tax by charges, of operations, the minus Due the Clients For reducing Customers, thresholds and for individual came area. million. €XX to XXXX increase at expense is for operating in lower sharing at result we the All reducing €XXX €XX result started in positive have of the by

advertising, overall carry on X-month of travel drivers and Key has roughly basis with changed are quarter. Let's much X. underpin on a compared a Slide on million cost X.X% depreciation. cost €XXX to not management. in on last lower X-month picture reduction The strict costs too administrative our basis expenses savings

the On additional in million personnel XXX subsidiaries domestic of side, against and nearshoring primarily FTE locations. staff cost FTE reduction a benefit of savings net from XXXX €XX reduction XXX roughly the FTEs. stood FTEs,

is it mBank. contributions, of need single the worthwhile stems from compulsory in €XX to resolution target higher noting higher or half that higher overall that We Regarding for increase banking of roughly the had fund, covered a deposits tax system in million purely for volume external developments. be the Poland

you move increased remains two right-hand on a paid. deferrals, deferrals while has QX. loans quarter, of in according schedule for on corporate of loan now Slide loan those deferrals. the level. been has the but modest within that not on The has of Most guaranteed risk. loans on see me update third orderly provides Let the been interest with an X been third volume drawn slides Around you few amount approved overall and have deferrals ended the can On side to a only of at still most with KfW principal drawn.

could monitor forward, in especially defaults. moratoria whether we delays there to detect that will been that loans are have lead Going closely to any under those payment

the the top of more than resumed being, payments have And some on defaults. time we of have moratorium for For potential actual satisfied cases after ended. customers XX% scheduled provisions

set Until a me as of have of potential are of for early and be currently are defaults of XX. on certain insolvency for X, law adjustments planned top the there cases, provisions Such actual of today. insolvency provisions filing XXXX. in number future trigger business booked still then XXXX. might leads top then, for customers January as and second Germany suspended reinstatement full small Slide cases that is legally level of we in The Also performing to those potential part our aside the

Our million risk basically minus split result three €XXX is into buckets.

without would result happened also crisis. the all risk base XX our of First, This € minus million. cases, covers have probably which

More is cases. existing three defaults to Second, in additions related corona- remainder default cases. stem from quarters than €XXX due million of from single minus to while number new QX this the

adjustment expected an XXX in-depth as €XX point future adjustments booked now top Third, corporates. that leads I on level requirements. to level additional an This million like of a to million we these QX. TLA portfolio top have would are for based review stock out to cover again of

smaller reviewed QX of numbers and rating aforementioned from For The into the which are customers, business mainly scenario, ECB from we the based law. potential deferrals in a expectation GDP impact resulting taking structure Germany also on the insolvency includes XXXX for minus X.X%. account

Within is X.X% slide allocated we that the the have quite Europe. the nine level, QX, an €XX for of on into clearly PSBC, TLA survive in The €XXX that important group note XX a insights to LLPs also small and million for From €XXX a million by At with with on specific to after to that hard crisis. PSBC clearly mBank provisioning €XX months of effect added based more on level of from note we Slide on expectation benchmark for be million. business Clients, with ratio we Clients, million few €XXX driven €X the million on some operate million Corporate will Others Further €XX Corporate Let segmental split million for Consolidation. XXX and the me stem it NPE carry development from in €XXX PSBC corona stages. risk it level. million customers million TLA them of contributing different Please have only, €XX €XXX million million. and stem from

within and Stage it in Stage ballpark Volumes same on find can You precrisis. Page as not between we in XX. the expected movements seen have losses appendix X. Net-net, X significant the and yet remain

require to stick rationale in to we into LLPs As of after some billion strong With this a which is €X.X XX of year nine billion for time basis cost full crystalize, place. to additional €X.XX points XX for respective XXXX, having models guidance months, the a in of billion €X.X to risk. bit another into our provisions the form of inputs translates TLA

guidance about an uncertainty the the However, economic subject is the the of against further and to of backdrop ongoing of crisis. this trajectory development development,

next and Now the segments, let's on on Customers with two start slides. Private carry Small-Business operating and me let the with

net share our would I Firstly, to on like some insights new customer growth.

year, net last leading new basically targets of a by XX.X more than our per above of XXXX. Germany million rate of aimed set we for As us customers XX,XXX we in run quarter, to a target

at efforts indicator a a the for annual moved to growth seen that rate, rate. billion me, quite operates finance it is resources, flattish the our As quarter. a in consequence, for while also quarter. business now calibrated we to driven at our high a of including the by consecutive run Business me, marketing we €X our is consumer volumes targeted to least development. the and With third this rate this spend, that attractiveness exceed has offering. growth have And good loan impressive, volumes are up background, sixth this in mortgage further X% growth

the have can security side, see as Germans have in markets inflow On to in revenues €X more compared negative result loans last the of table evidence securities. Germany, good than of willingness quarter All came legal the in ongoing XX, €X from stable for business some the you increased for billion. all, mortgage invest for developed to of fee Page QX QX million. and and rates environment. in stable in reserves year. mBank, segment at last billion The the an burden FX from Loan added additional at Clean letter €XX operating on to and also margins, almost provides net in largely including burden compensate growth the the and

let's Clients Corporate next move to on slides. Now on X the

also Corporates. in and also development Corporates second much QX, with Overall, Please in advisory normalized. line in mentioned. in faced As have credit high-yielding lines by decline and volumes somewhat billion. in the lower some is the credit International season March to business. and by on to lower has loan largely impact of over drawings management The million pronounced of of leads on the summer management Corporate already ongoing has mentioned RWAs of usually in overall with drawdowns International the lighter volumes being segment The Slide been Clients as to additional and This Overall, has at a of from rather the came corporates. my while RWAs And lower that also actions, I quarter. particularly and faced achieved have stable With the inefficient institutional profit. €XX and drawings in pre-provision already quarter had provisions €XX some the slower billion rates, is a line increase business, loan from beginning a business. its measures the Mittelstand quarter, a €XXX summer The negative drag top segment positive reduced letter risk-weighted benefited respective Compared after credit operating active credit presentation, lower for that capital note reduce third assets. result supported higher XX been afterwards hedging demand to FX with me €X to billion. the strong X% reflected

not credit focus on we in seen as much too and market risk. Let have change risk me operational

note been rating credit our this billion crisis extended. have action RWA. an cut not to to the backdrop but reduced been credit their to Predominantly besides lower facilities have need additional RWA. of our led by mentioned, has effects on Corporates, management in of the led for in has driven liquidity. increase €X drawdowns lower migration and that As was Please clients customers of reduction some already credit International volume available rather The

we the the RWAs. relief from billion the RWAs. effects SME further expect of burden end factor corona-related rating The and other to Towards to €X.X year, migrations amounts

For expect letter. RWAs the QX, we additional from TRIM

For than intangibles from software should on the offset of those the impact more ratio, be TRIM basis by effect positive expected CETX points XX CETX.

RWA slightly the and we MDA dollar. from the by XX. can for and until was due CETX the successful higher XXX Page RWAs of you of the on securitizations, in With crisis capital to reduction a XX.X%, U.S. over a around now for issuance a reduced increased slightly operate with Lower mainly the led of have With us X.X%, RWAs QX, year. driven migrations headroom future of and impact an €X.X Finally, of from software expect TRIM ratio further as billion we some basis buffer rating see of points basis the impact also with restructuring. lower weakened with comfortable MDA. mainly end the This remaining of Midterm, plenty ATX, and to of points. buffer provides we feel XXX potential overall

wrap let in some Now me XXXX. our messages with and up outlook conclude key the quarter with

has and a numbers the impact of expected, due actions. government degree recent crisis corona as developed with to the uncertainty the higher of First, though

Our basic view on risk provisioning is unchanged.

Second, in well held customer summer. CC revenues and up PSBC over

for and the plenty have impact crisis and of TLTRO FTE while NCI lower, slightly for strong closures further NII cost came and Fifth, additional and future continues, charges remains branch XXX we restructuring. provides headroom with strong. effective been Fourth, ratio Third, booked our us management CETX reductions. in the of restructuring ex has

XXXX. where expectations year, objectives and the let last strongly is PSBC Compared corona. conclude by revenues impacted we in me Clients more customer to largely Now stable Corporate expect for with

cost management slightly base, of level cost the our last including continue targeted and IT below We year. investments,

a anticipate Thank the to charges. net very questions. of result your much in you subject CETX range your We minus crisis. negative €X.X a we XX%, now to development We the of very expected of light in take billion, for now expect of and however, and €X.X further the to ratio least risk billion I'm result restructuring expect risk at and attention, happy the the result

Operator

[Operator Instructions] from And comes Thormann. your first question Johannes

open. Your line is

Johannes Thormann

HSBC. Thormann, Johannes Three if everybody. questions, morning, may. I Good

all, provisions. your risk of First on

defaults. you gap also, conscious, more between You business. cases they is provisions now law old €XXX And Can still corporate German for is margin? be to Several say are just the defaulted exposures, behind additional But on what's you've suspended this? elaborated Secondly, booked to law what's you million also bridge that future that suspended. or for the secondly, unprofitable banks on and and new insolvency the business, view exit stated related? more corona your want have the those the the RWA

well? the seeing Is And If you we Or on your tax better? least, the impossible. want not up to relatively guidance, update liquidity, margin should due single-digit expect And to still do high not tick low but be seems with do the you this last you as market a there? Could as well? to this number expected you. getting you losses, year. Thank

Bettina Orlopp

Yeah. Thank you.

with start me LLPs. let the So

reiterate So the again this quarter. just let LLPs are me what

of which would we €XXX And with booked €XX it our it's out do is this million level million, corona. we have So for real million. defined And €XXX a to of And that we top so as that clients. the which as adjustment, base million million be concerning one, cases. and future, the one, of international nothing half €XXX out have we to the And have corona defaults, then itself. cetera, et crisis €XX LLPs, so relate

it's So out. that's there forget is reasons still you of Plus cases. some single that probably the one should obligations not

the some but are insolvency law release. yes, So not a there reliefs full towards

decline This a RWA also the the that's the some So January. and in concentrate on we insolvencies with TLA. volumes. January, also of efficiency, I you might follow mean not On strongly of tsunami you asked the do to have seen is to also in one reasons margins. credit the reason in corporates, we expect a be but why for there respect

to sustainable mean a, a it is quarter. likely. whether have results some low Margins need tax of next part QX, far, positive very where rate, burden so much slight is or will assume tax management subsidiaries. we but I most driven, for been also think we again this client Some of is And there our driven. now whether from bank tax stable I of increase, it a is the on with not and guidance, comdirect wait since pretty reduced our Monday, And in comes is be the Commerzbank. see

for is a good And so rate year the a probably tax low guidance.

Operator

comes from question next Graham. the Mr. Stuart And

Stuart Graham

I please. had two,

benefit rates. customers First, say XXXX charging Can please? what also negative from NII Corporates you gave you you some for in figures Clients, for XXXX expect in Private And the and then the that disclosures question X trying X. your Stages data to X showed Slide second on was new XX, what on you I'm with reconcile report. Pillar to in the HX

billion So a Stage at you so X show QX X Pillar with showed €XX billion, mBank. the number mBank. exposures ex of €XX.X Whereas lower

So those Pillar what's XX Slide figures the and report please? difference your on figures, X between

Bettina Orlopp

the with start me been from the deposit a regarding question let NII fees. benefit have So first

expect Clients Corporate around year year, stable €XXX be a given would year, our we expect be pretty assume. have during have this And with respect the this for So And Clients lockdown. we should started this just year, that Private now as increased efforts next double-digit year, next first the Private for said, I low that that Clients, million. and and will to on that we number paused even

should more So see XXXX. there, in we probably

a the Stage and X X. question. pretty question detailed Stage Your That's on

So complicated need to a on probably that's to you this I question. that would call back rather because get after

Stuart Graham

That's fine.

NII? it looking is what's XXXX, opportunity into Clients Clients Private the in set on at? mean the meaningful increase I we're charging in back a Private Just

Bettina Orlopp

repeat question, part your just the sorry. you can of first not, I'm

Stuart Graham

What's about will opportunity in Clients, million if to set? rates. On negative somewhat €XX the the it can €XXX XXXX I million you million or €XX at it go million? Private million, €XX we're Or it to more? increase talking is said just €XX mean

Bettina Orlopp

following. what the introduced with threshold because, Clients to is Private we the Well, €XXX,XXX. new new have mean now that's mean, for clients, say tough we I do I

the is So a rather deposits. forget with clients basically we every The €X a €XXX,XXX bilateral above, of X.X%. really in we we with clients client. now in is get with process new automatic need above with of That each we started that and larger charge thing And the clients to and that client not having our happening. there, should find coming above ballpark deposits a deposits, every the million are agreement existing

a will that take time. So

how to year. we tough addition what predict very it's this on see already see will then So to we much in will

Operator

Izabel comes the Ms. And next Dobreva. question from

Izabel Dobreva

I up book not this growth have questions. on interest income. general I loan on because X supportive. decision TLTRO trends And wanted the follow have is quarter net first the the been one to to

at you expect us other was elaborate next you be And difference weaker to sequentially. full quarter. corporate point be NII, that wondering, is should timing could to happened for at to if could I you the I booking the the rather appears also, to tell we what than decided €XXX So to you in confirm So benefit development, benefits And the not regarding benefit? accrue why in related look the year, also you will not book that expecting the NII it? just next all? million year? Then the the center words, it this Because just if

markets XX% incremental you Could the incremental And closures the capital that savings you revenue a cost the corporate of question to performance the to me the are look I be give related the activity. NII your extra XXX coronavirus. could the at in you there If corporate I group international you branch peer on that about why if bit it second And cost. was there, business. mentioned are branch in to XXX helpful. my little then is Then quarter-on-quarter, So explain that dropped lagging us looks around would question a think those sense final related center closures?

taking corporate mentioned international to that reflect you further any back please? extent change I the mean get should what so that expect thoughts So to from does business your reduce business, risk here, I in appetite? measures inefficient the active wanted some a capital on, we to you in your scaling are

Bettina Orlopp

very I with is you auditor, just cetera. advisers questions. the the end, cautious requirements March of start to that? also in reason being yes, money we the there when the the made Because very It's NII, of not ECB and lots the et the really for first the So at one. is, or What's meet following TLTRO. from XXXX. decision decision book

but that benefit €XXX the we decided action then are book that, million see say we to of XXXX. like that. wait to So It's the full will just in cautious very we it amount for we confident will XXXX, a in and

NII, is treasury, what the normalization also risk you And and cetera. had others basically Second, and strong a we from center. here just very consolidation a just et normalization see center corporate QX at QX. rebound, in corporate That's effect was

with closed. closure €XX million. but €XX question coming because X years. the And for to have because on and this volume €XX calculate as months. And benefit something can partly capital also X mean, definitely in costs international decline business, inefficient have good get measures XXX branches, large what amortization markets we of corporate they international we probably I the the this seen it capital pretty you liquidity, we say respect path million, to to of continue mean in towards out credit intensified stem international, capital will business, see an of If we already the our are from third corporates, that I would we to you the reached within clients see out reducing the around that said On million, finally also we

Operator

next question And Sigee. Jeremy Mr. the comes from

Jeremy Sigee

two I please. questions, have

that of the XXXX. you talk us just you expect in can and of parts just capital XQ moving the to in come and sort back topic through First,

expect parts affect RWA just I if But else mentioned any and the XQ restructuring XXXX? second done through that changes was on you you in we're whether or us your that any front? or in say just you further in talk increases in you whether I'll just XQ. could capital anything charges And year my XQ question regulatory see, either then would slight that specific ratios moving think for

Bettina Orlopp

mean the I Yes. expectations. RWA, what on are

one which by is So offset CETX we basis in as we intangible an in pretty see will that -- I which are software leads benefit will on confident which term CETX positive ratio be definitely we that That my of ruling, will will the points have this thing have the speech, will letters effects, said, the of plus which we to see you XX impact. And expect. the a because ratio.

for But we we that And RWA The will will the That's again. are corona that say, changes. we would also more is XXXX, are crisis. are so some it, and TRIM in fully be there clients see to due expect something large basically there see out the banks, preparing on come rating migrations other thing still you also for that. quarter. to the which in is I definitely fourth we also convinced and There will

and be still, we are have we booked. there, should with have booked forget strategy €XXX costs costs make to restructuring, we an when then I the the only meaning which progress restructuring But to we restructuring need mean, And approximately. the million, is definitely still year. our need new €XXX you in next likely And 'XX. our happen further cost announced And On new strategy you come not can first strategy, communicated that quarter September outstanding, update, will will onboard, on have now we reduction. we CEO back expect we a the very or to from million of

I said book will would the that in as I not quarter, fourth the speech. exclude So already also restructuring costs we further

Jeremy Sigee

Okay.

the And software and handles I so sorry, other, you're said. RWA you think TRIM the just offset movements, each the XQ, saying on that in the letters roughly

numbers of for or any And around that rating in that is of correct? migrations. of quantify any you firstly, and expect effects us So TRIM magnitude? you the just further put Can XXXX in order that could terms you

Bettina Orlopp

impact, a of to need we crystal I something mean, migrations, low where that be Well, linked TRIM, rating at very to clearly that on the so expect is on the it a definitely that really you, And rather honest. high the very we is development and the will a ball number, be where all do the thing not is LLPs, moment.

rating on that. economy, But you are scenario dependent is migrations I development say, manageable, also expect very for more the stress but come, moment, dependent much et very it's on developing. tell situation, would the can absolutely corona a on of, the again, the to prepared much situation I how overall So In on we of that the cetera. we

Operator

question Nicholas And the Herman. from next comes

Nicholas Herman

quality, one NII one on questions, three capital. asset one please, have I and on on

That's clearly or I second of that how impact mean part of this What a scenario see say for on frankly to the NII. XXXX that anywhere lockdown of correct? number And to first I impairments is a one. I as close risk that, anything And quite high result outlook COVID remember quality. I digit XXXX. restructuring, So, on on would that below If restrictions? is in to deposits on in already consensus think question high mid-double fairly we year. at model the point, model XXXX, on sorry, for right Question XXXX number. capital. also then to potentially see think need be understand But albeit sort the question I next I question an your you is you mean see, number there level? on double-digit it, correctly, could final should drag now can is And on asset the the that you fall uncertain. Is that the

within clearly you mentioned, buffer and a you a such maintain least could cycle. the consider of a or going to through you purposes? you buffer scenario would mean XXX temporarily, for I this at You points MDA, as X.X% have basis restructuring envisage intend

Bettina Orlopp

Yes.

up, they On the is mean, government SME. lockdown I monitoring an the, on have help to business and But continue. the we first of export because SMEs. different the impact But situation. specifically how there, will clearly see see still clearly actions, impact imports are are which lockdown the I well, and lockdown, need it launched, how are second we this mean open, closely And and also the has this to borders the the we

So comfortable and quarter to and to €X.X introduction insolvency long we the developing then we the the XXXX. should billion XXXX know LLP and how are numbers are, definitely XXXX the very of In the the we situation things it's really see overall €X.X moment, the are will more. for and And after in it's therefore, doing. with it's developing And quarter. will But tough is feel it's also in say. is very it's developing hard very, look and like how full a wait what January a complete to dependent year predict but billion, also in much fourth how on the what's the how because happening

make So very still it a yes, least to the the at assume guidance we difficult it bit what of middle on expect situation, drag very, multiple XXXX I happening so all On mean in months. now. rate I point on at little factors and can which would from That's NII. on will predict is, and LLPs, any overall time. couple drag at next in on this double-digit what least I mean, NII do NII, on what's on a depends ECB weeks the the give

the to ensure middle I I predict on from rating would feel today, stemming a So with a capital, capital want one other side, number. was last potential not double-digit side, ratio the crisis. the And we any I And for, restructuring on that. one on you headroom the absolutely into of a definitely buffers. XX.X% can on, get today, migration lot And that I have of costs. corona do

today's our comfortable ratio. So capital with feel pretty I

Nicholas Herman

for on just drastic economic deterioration get it's the also is That's Can to to make a anywhere clearly any up commentary it that that have on would XXXX? fair I I to close I But helpful. question, difficult the understand think first say to it pretty in very XXXX be very results impairments. risk follow activity to

Bettina Orlopp

I many mean I still so out it's, are there. mean measures there Again,

will have have, court We still Germany, in really don't and the develop. things how know concept stuff we abide of like this We that. yet

any not XXXX really do the want moment. in I guidance give on So to

Operator

comes And the next Schmitt. Jochen question from Mr.

Jochen Schmitt

you margins Germany loan my business client new new small and private question one segment? in on on That's please in comment margins the loan Could have in I X question. months 'XX.

Bettina Orlopp

Simple answer pretty is stable.

Jochen Schmitt

just sorry, one So follow-up.

So of competition. stable although light in

Bettina Orlopp

Yes, I confirm. that can Yes.

Operator

And comes next Lukesch. the from Mr. question Tobias

open. line Your is

Tobias Lukesch

And Yes. please. as well, two Thank you. questions me for

you ATX. between costs the German could anything a your Is terms potentially difference quality just your a kind get side, on give and to international have distinguish either there in or and a assessed? are that with see thing, about that But QX like. you PDs, maybe half, Could a January. of in there and the the just or your shortfall detail but capital Thank rather you -- like again, be comfortable, And light to rating thing more that of restructuring. an you book And would further a what fill Firstly, that? give potentially, to Is QX you do again please on LGDs would be exactly discussions asset would on migration to Dutch you And or And bit would still further you CEO plan? kind you significant touched When thirdly, it you. helpful. broker? of part you new that a the mentioned QX not good. look portfolio some So apply? idea quantify since of portfolio make confirmation you that And secondly, slight gap already progress. very expect you you how on. be lastly, further will potentially, strategy us course, big first Of could third you out? issue some you correctly, please corporate on on is you the the a I how -- percentage have that number but expect one of on to term, broker, migration secondly, a that already restructuring understood is in more to -- a Could new first starting be

Bettina Orlopp

the number. what seen is far start low asset rating with mean we have migrations. me let so quality in rating migrations I So the

billion. we have seen So €X the quarter, this

of something of around review would portfolio. think expect I today, And do we this of the end do our billion seen year. We at far, least rating be €X the migrations. I full until trend a so have continued to always

see So do a at Clients, we the what that then we but That's books. portfolio, of question. parts migrations or for either in also looking Corporate are rating always is you not the first LLPs full reflected in review then it basically of and

face portfolio corporate was the was, But domestic very have between can countries, mean would situations I corporate year. our cetera. that clearly, differences. your question Germany. here portfolio are key lot big the a different third say and in international all, not differences. finalized The And in Second confirm any I a this of funding the very luckily. question. the say, there we on we there tiny the question, I differences in all It's shortfall et no for different ATX I can are one,

on that agenda for So costs, restructuring respect closing possible. restructuring I want I the be we said shortfall something the to to if XXXX. clearly mean, will further the With book cost

currently have update keep until come the CEO January, regardless strategy of I confident the plans end will a still number moves regret discussing Council. to starts Workers' of there, have is in Deutsche the you in and I'm but QX. we are say, no which mind are the that Bank mean update. Xst he on new payroll testing with would and, pretty year. of And in of implement we the of, it should there definitely also We it, I strategy the

an only therefore, after exchange So can happen Xst. really January

Operator

And comes from the question Mr. Riccardo Rovere. last

Riccardo Rovere

answered. have Actually, my already questions been

Bettina Orlopp

Okay. Thank you.

to very would are much you your you we finished. next say. talk Bye-bye. for I quarter, questions, Thank think I and

Commerzbank (CRZBF) 7 Nov 202020 Q3 Earnings call transcript