Commerzbank 'Confident' Will See Recovery in Valuation Results: CFO

The video discusses the impact of widened credit spreads on customer derivatives and the negative fair value results observed. It covers the expected loan loss provisions due to the pandemic, highlighting a U-shaped recovery and potential bankruptcies. The shift towards digital banking and cost reduction plans, including branch network cuts, are addressed. Strategic plans for staff management and financial stability, including capital ratio targets, are also discussed.

What contributed to the negative fair value results in the quarter?

• Higher interest rates

• Reduced government support

• Widened credit spreads and cross currency swaps

• Increased customer deposits

What is the expected range for loan loss provisions due to the pandemic?

• €500 million to €800 million

• €1 to €1.4 billion

• €2 to €2.5 billion

• €650 million to €900 million

How has customer behavior changed according to the transcript?

• Increased visits to physical branches

• More reliance on cash transactions

• A shift towards digital banking

• Preference for international banking services

What strategic action is being considered due to the change in customer behavior?

• Hiring more staff

• Accelerating branch closures

• Expanding the branch network

• Increasing cash reserves

What percentage of staff was working remotely during the pandemic?

• 50%

• 60%

• 70%

• 80%

What is the target CET1 ratio by year-end?

• 12.5%

• 14.5%

• 11.5%

• 13.5%

What relief did the bank receive from the ECB?

• Additional funding

• Extended loan terms

• Reduced capital requirements

• Increased interest rates