Commerzbank Aktiengesellschaft
Commerzbank retains securities settlement in-house – outsourcing project stopped
DGAP-News: Commerzbank Aktiengesellschaft
/ Key word(s): Miscellaneous
– Exceptional write-off in the amount of around €200 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 €200 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. 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 ***** About Commerzbank Disclaimer and Forward-Looking Statement
22.07.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Commerzbank Aktiengesellschaft |
Kaiserstraße 16 | |
60311 Frankfurt am Main | |
Germany | |
Phone: | +49 (069) 136 20 |
Fax: | – |
E-mail: | pressestelle@commerzbank.com |
Internet: | www.commerzbank.de |
ISIN: | DE000CBK1001 |
WKN: | CBK100 |
Indices: | MDAX, CDAX, HDAX, PRIMEALL |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1221026 |
End of News | DGAP News Service |
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