Commerzbank has again demonstrated its resilience in this year’s stress test conducted by the European Banking Authority (EBA). In the adverse stress test scenario, the common equity tier 1 ratio (CET 1 ratio) came out at 8.2% at the end of the 2023 stress test horizon. In view of further tightened assumptions, for example a large and prolonged economic slump in Germany and a continuing additionally stressed low interest rate environment, the CET 1 ratio decreased by 502 basis points over the stress period. Also, an economic downturn of –3.9% cumulatively over the three-year time horizon to 2023 (2018: –3.3%) was simulated for Germany in addition to the real pandemic stress (Gross Domestic Product decrease of 4.8%) of the previous year.
 
The starting point for the stress test was the CET 1 ratio of 13.2% at the turn of 2020/21, which reflected not only the significant burdens resulting from the coronavirus crisis but also high expenses for the transformation of the Bank. In the baseline scenario of this year’s EBA review, Commerzbank’s CET 1 ratio is 13.3% in 2023. As of the end of March 2021, Commerzbank’s actual CET 1 ratio was 13.4%, well above the minimum regulatory requirement.
 
“The stress test result once again confirms Commerzbank’s healthy risk profile. We’ve demonstrated our resilience in a very tough stress scenario despite a difficult starting point in the pandemic environment,” said Marcus Chromik, Chief Risk Officer. “Commerzbank has comfortable liquidity and capital buffers. This gives us sufficient headroom for our transformation. Our customers can rely on us, and we’ve proved that during the coronavirus pandemic, which has been a very real stress test for almost a year and a half.”
 
The stress test assumed a static balance sheet and therefore did not take account of any current or future business strategies or management initiatives. It’s also not a forecast of Commerzbank’s profits. The results of the stress test feed into the Supervisory Review and Evaluation Process (SREP).
 
Further information on EBA’s publication of 30 July 2021 can be found at https://www.commerzbank.de/en/hauptnavigation/aktionaere/ir/stresstest.html.