Commerzbank (CRZBF) 8 Aug 212021 Q2 Earnings call transcript

Good morning, and welcome to our Earnings Call for the second quarter of this year. I will provide you with the overview of the strategic and financial development before Bettina will guide you through the details of the financial performance. Overall, we have made good progress in the strategic transformation of the bank and reached a solid operating result of €570 million in the first half of the year. Q2 stand alone came in with an operating result of 32 million. It benefits from the benign risk result and from our robust client facing business, but has been burdened by a significant one-off items. strong stress further one-off restructuring XX not our to the and charges like XX.X%. impacted of of booking [ph] sustained would that burdens these also have I ratio CETX €XXX million Thus, we for a results more slightly risk financial view our capital. XXXX on including positive and confirm can our outlook Also, our billion €X.X is XXXX cost for guidance of valid. operationally still ago. which account we we however, million €XXX top statement for two have hoc to weeks released have writes-off, On an ad on extraordinary

transformation bank, issues. and the made progress strategic have the plan On our in of effectively good we line with upcoming tackled

Let The sure This or of a is that the strategy me crisp recent ruling with me make are the on malfunctioning key to on topics roadblocks Court be changes ASAP, management removed and execution of our leads agenda. next pricing project. any I large slide the clear. track. and And Federal our on

key have we transformation. reached further milestones in the Firstly,

employees. Furthermore, I'm we Council started of together by appointment working forward this have have over senior XXXX the with of This the With to number XX% team Commerzbank, of for good offering transformation and is and be management of looking the XX% concluded from of already the and shows almost the team. the group. going response with to negotiations recently detailed of we selection the Works reduced backbone the completed the LX redundancies XXX managers, positions voluntary

the task the invalid. tackle issue. immediately basically recent as declared Secondly, to Federal We ruling which changes, a up pricing we court have to on handle fee set actions force

and to million. of €XX the identify On the the to provision we one amount book of reimbursements hand, customers have

a current securities measures. current have includes ensures the active of other to products, forward pricing out the roll solicitation such pricing accounts. process the accounts that On consents, This or of our for plan as we going hand, continued with the define

month. next to in and temporary revenue expect this shortfall some our losses But keep compensate confident we We the revenue are guidance.

of risk settlement. the a project not benefits focus securities too Thirdly, the contribute decision high we of projects painful. economies implementation the stopped There does way necessary transformation scarce have providing bottom or not the clear muddling that with too put strongly through. been our they plan if Such for We volumes, decisions it environment stands eat for way. scale. This bank. large no The the must a this of would on small line resources to strategic even market in increasing transaction internal outsourcing up take is are and

Our and transformation in requires decisions. focus XXXX towards targets our strict clear

move on cornerstones let's on with of our four all Now, review strategy.

fast digitalization, really like that to highlight Regarding would in the I is delivering new functionalities. team

billion enhancement XXXX. XXX XXX quarter. our the sustained of very savings including billion to have of in believe it increasing utmost seize sustainability, it the is that with reach of comfortable of target clients, private corporate March certain disclosure of for rather major of on this can sustainable better and clients, volumes securities for mobile billion process. than out the let added allows which at see than qualify volume. XXX features me a from year, In mobile beginning. this path stands ETS. clients a towards client point since new support the the their sustainable finance greener client After XX roughly our sustainable products, Overall, sustainable is feel private our efforts billion drill right to the according we billion XXX demand XXX finance to customers small business Based the our economy end volumes the that, withdrawing this at opportunities corporate of last products. you importance in regulation. QX. business slide, by target further as accounting that Especially we also out, to will We our transformation category. On we from in the down clients of year, product and strong now accounting security in plans, as support growth This from the have app accelerated for We more XX purchase On

further to on you with the the quarter, XX%. have in In second efforts like increase would clients, I efficiencies our results. corporate operational Finally, of development to client transformation we RWA reduced the from provide an business low XX% KPIs. bucket update to to our In yielding

of list approach using off. pays Here, strict our single client names management

branches from branches And billion leave. transformation we and the reduced yielding the next of customer model. it course the expected. the the the or pronounced plan still less of three of XXX In anticipated term trend Hence, course, branch is plan. of already ahead are advisory contract to has XXX centers is have year. XXXX reduction our business groups into made payroll the XX of early signed XX,XXX have off it program, this start branches and volumes remains accelerate client And to closure evolves. business and how will initiatives be than close remote growing the in days are And by the when But progress we we in seen RWAs to low branches redundancy additional pricing closures We X.X of cost the XXXX portfolio further bucket respectively. have XX the Furthermore, or in the year. FTEs, PSBC further also overall by from

and are we of On number. share a FTEs XXXX, for the hand, this other reassuring large hiring thence

a targets. our And further and Sofia and be transformation strategy. execution expensive will our more focused for head consultants sure now Germany. fully in track. Stumbling on that the completely Our All-in-all, taking removed much operational, external to location blocks we the of well step-by-step tackled are over is on in is make tasks we towards

quarter. provide with will you of the who Bettina a more to the into look over hand now me granular Let second financials

morning through side. walk Q&A. you, my will you into good I and financials from Thank the we before also move Manfred

Let's start with on slide the overview X.

customer have items unchanged Costs line with operating of It our reduced Vita. the €XXX charges on. not vast viability to top that the release which been have The Hence, want of of odd in managed €XX remaining in to is XX came to our interest trend first has in to cover I to had from one majority more strong the million. we our of capital maintained of that XX.X% our extraordinary XXXX. the exception QX million. restructuring They continues already good business in later model. write-off high in This compared with quarter. low the And our we net results our The to good targets also risk these the This was Manfred COVID the in unchanged with the portfolio. the quality a at to several, stood quarter level in income end one at net amounts unchanged our at businesses ratio, This the result As is X% plus reflects quarter. of underlying will been was the I income of testament remains Commission at the booked the stated, performance detail million. quarter. line negative adjustment. did €XXX we related expectations. benefit stress asset And of million.

XX increased to to an in the issuance points. XXX buffer nearly further instrument basis of June, MDA Following the

environment. revenues Slide let's rates despite benefits above drag significantly by Now, the the charges. previous year-to-date improved The €XXX from ongoing risk briefly million look a other offset The and to year's result €XXX lower And million view. better with the and net reflects restructuring result. the results to X the at levels due TLTRO Revenues from models. operating

of implementation XXXX. fully booked strategy have We our

have we down have strongly Slide on bookings, one-off affected As by broken the been quarterly effects XX. results

mentioned, from reduce million. one be negatively the buckets. quarter As one they off in €XXX €XX can to aggregate, operating and impacted the The events overall million result separated two underlying was off by

minus of Federal offset Justice more Court fee million. TLTRO million first fees is we add million where to some on usual of reimburse €XX provision to exceptional our for ruling that have €XX revenue The €XX the to benefits German for the will up the by than customers. changes, items

digit offs three contributed negative €XX million. side €XXX franc The mentioned, one loans this and out. has side second the a on in million of for the we project. in double also stock increased associated been provisions by to onetime and million. bucket CommerzVentures adding have million not that for minus result, positive as underlying booked €XXX have write-off contains €XXX up have the Swiss with the The outsourcing off And of separated significant write reserves the a addition, booked we settlement million And securities

continued CommerzVentures of investment quickly the the has exceptional was The Let's led at jump on revenues. over of revenue Marqeta contribute Page Slide the look XX CommerzVentures. holding. and our items revaluation IPO to portfolio company to XX to

we good possibility of in the But sell spec. funding valuation and uncertain, further record, we available a many prudent a currently plan that in most by expect fund. to investing results, always likely taken has following And as the we a the the And discount CommerzVentures cannot but half fact reflect setting not obviously given track increase year. continue made startups setbacks experience the third bought in up full to by the our a funds the upside also, second have valuation have our We the QX of increased round to contributed. applied and

and slower XX% increased in underlying the corporate income bond custody exceptional starting as by have and syndication This as slide excluding affected quarter, have to show year-on-year. on two have due strong has the business and a the overall in will and formal other where by strongly business revenues high detail charges. of the We business, XX locations. of NII charges the have and will of I item and majority will group items gives than progress of to XXX excluding restructuring the all on was as slightly the of cover The revenues. NCI requirements originally The to in impact lower also also is TLTRO an book NII This next next income securities million we lower the more payment been anticipated income securities be We report is the in trading leads shows income operating is Commission first Slide not slides PSBC overall pandemic. income yet some the the commission Germany by fulfilled half volumes and net and in especially the the we visible booked restructuring mBank exceptional the overview expenses. and year. €XXX the significantly around XX, not interest and QX, second Slide driven still us one by increased. with slightly commission clients line XX in benefits. P&L booked forward Germany by quarter. remaining million

As expected, line broadly drag led in German underlying strategy customers Lower same NII loan NII has the offset margins have deposits. previous been and corporate and corporate in a as quarter, have stable growth in the PSBC, Germany loan with and growth customers. volumes and level the slight been on and our NII. to private mBank both for have decline from

the the continue year, TLTRO rest current of remain benefit to the level. excluding the we NII underlying expect the For to at roughly

year one higher midterm the Let's million spending cost our XXXX carry Slide due digital be in growth last €XXX a off measures planned. around by expenses clear, in We the from as We of line half, termination. we continued to the cost transformation, costs management to expenses. target. level operating the base. XX. in and reduced the for payment on targets. €XXX plan But contributions with year we will full operational million commitments the to on project cost first book write in on strategic with Greensill managed had on burden or invest not unforeseen and this insolvency XXXX time was administrative to to Are the million delivered it using the €XXX our compulsory deposit contributions compensate absolutely kept of We due To our burden of impact Bank our the

risk the pandemic, be the of pandemic An very unknown quarter. the possibility cost was predicted and reflects in top clearly a still virus of a basis risk result stands the loan was a certainty. with be variance, of a the Let's Why can't was year and force clearly low €XX start cannot result measures in encouraging. effect million. the The visible which risk the possibly government writings the remains stable move adjustment The lowest at book XX or and the largely base since support the loans, trajectory ended. on later the points the of of defaults in to resilience of of was and of XX level have also defaults Slide million is €XXX unchanged. out in first year the year, our increase half. low driven the is This first of ruled number pandemic top Therefore, the for second the half next and the

top We the will continue level review adjustment to quarter-by-quarter.

Now customers on segments. on start slides. the let business with carry small with two And private and let's operating the next me

We a see increase €XX securities quarter in €X have strong to in by in billion money securities. volumes were these the new continued of net billion invested

business pace has in So continue in volumes the planned. in continue to friendly as invest trend the a also flat. quarter should securities continues market increase and an more environment. contrast, and that been Germans In at finance the steady overall consumer Mortgage

in pandemic, we term. the to behavior and not deposit overall of good deposits progress expect made change to have subject we to still significant we high do managed quarter, to the the in pricing billion. the volume due €XX near a increase business deposits in of the savings reduce volume customer the Given rate the And

far, From X €XXX,XXX. from August above So agreements be new priced. for €XX,XXX will deposits above clients signed have we deposits

deposit also has to deposits, in from the compensate We €XX existing around rate use to apply direct it's enough specific fully this to income. we the environment interest contribution million not XXXX. with Overall, pricing threshold somewhat Deposit be related new deposit to the agreements effects will expect customers. for the on from ongoing but agreements from helped

as of respective we currently this our Court obtaining customers will mentioned, process planned takes by fee from German income consent this Manfred Federal banking in And time; fee fees on structure see private services to As the are required we ruling our the active year. Justice, originally not changes for

on for development financial €XXX customer operating XX. of nearly result. of reach This good one low XX% bookings business, year. up million, significant However, the me and stable based performance PSBC on given page expect overall targets to PSBC we the reached our brings to the customer risk revenue of despite year-on-year results off revenues

up these strong compensated of in the from driven growth This the Looking the at Germany, drag with business. German year-on-year, revenues underlying deposits. performance for securities by by X% together were loan

also had as our some churn attrition We customer with revenue of expected strategy. from the implementation

on more with terms customers last meaning for addition contributed departing a franc The The been has customers of as than well so far. we have on of lower underlying mBank has the revenues average level both reserves and Supreme cases. also of court mBank mBank reserves churn workable performed and not this this changes million clarity addition protest revenues, case revenues mortgages. a same whole important. higher will in solution. excluding legal right to bring much the lost the expected challenging and Polish interest year, have levels banking establish anticipated mortgages far, early Court Swiss number on loss in in last. legal So customers are cases hope is to rate environment and the XX the Swiss had driven that September scheduled new mBank be to mainly will in of losing of system by setting been for We than of lower The

Now have slides. efficiency management. our In let's next we portfolio move continued active two clients corporate corporate on to and RWA the clients,

with next in with from do RWA risk was reduce of model volumes by corporate’s from adjustments. to expect increase the this RWA, we high to This international are there further slightly led strategy. RWA to efficiency with efficiency, credit models the has an as lower reduced While improvement included submitter not trend. a stands And average By some regulatory resulting have quarters volume increased in X%. volumes in line strategy offset line the RWA adjustments

has customers. customer negative currently seen ensuring charge As our yet at been on the quarter. we end And XX RWA not impact increased We efficiency. first the the deposit average effective a The changes from increase of only notable our a profitability. on volumes volume came priced, did business the thereby points. the became in have have basis fully impact strong corporate They no

higher institutional we While charge partially clients. rates to

We to on risk €XXX not lower revenues the to product see areas. large by a higher deposits that this in our lower in revenues reached these international our contributions corporate’s the introduce are around and Underlying to hold deposits. with There's beyond result pricing drag contribution offsetting mainly across increase to P&L. we line Overall, to due from officials improved million planning This clients lower rates of are for results XXXX from year-on-year. to with was costs, expect €XXX an corporate operating by million. could ensure also deposits Mittelstand increase around million a €XXX to around costs strategy all significantly X% year, X% revenues revenue corporate from these

the Consolidation. development €XXX million and expenses in Consolidation move operating from to had income include spreads, Based like income the and driven half, tax project write-off from well the by XX, first minus from booked. line valuations value quarter. fair is Let's that in moves in outsourcing value the be of could positive These could Slide The prior of results increased stop and zero affected be asset some half. we and to of contributions HX second and items. accounting, the of potential Where the valuation other items largely project Others benefits, results can the reversing around and years. for are on to from the an But in of CommerzVentures includes the the of the by we Other hedge is receive outsourcing Others these reflected €XXX exceptional Consolidation the as by and operating where driven changes gains the assuming the by the course are as from achievable. corresponding the effects also of of basis loss second related effects CommerzVentures over contributions as year also the but operating million course, of the These result provisions of usual TLTRO some Others provisions. stop for as full well claims result fair

the reduction increase overall increases risk Slide This further corporate effects RWAs the RWA driven assets to slightly by regulatory loss to offset we in the reduced with the changes quarter-on-quarter and volumes to clients; partially database reduced. move quarter mBank by were next expect XX. Let's has increase. at due been And is operational risk-weighted in

a before, at in risk RWA mentioned us As we with capital mainly of of from also anticipate models. Regulatory increase slightly Overall, driven remained XXX regulatory and provides XX.X% to to comfortable the basis net ratio points CETX and a credit TRIM the decreases loss. adjustment MDA. due buffer

underlying Now, financials business QX and At wrap is this one time, same by let the up was and implementation well, developed and the have of visible the the strategy me the quarter. emphasis of results. burdened clearly our that on XX. in on mortgages will our expectations ordinary franc objectives outlook XXXX. reflected burden in be of Based updated Swiss are the from for no these year the there Slide extra and course premise the the

billion. Given target figure. an we slightly cost operational the transformation, further of strong €X.X maintain were base of our XXXX progress the of first But results, revenues half around exceed the

unchanged the observations, level and this the addition, of the a In adverse billion. we of adjustment, not write-offs and on pandemic our have below have booked €XXX expect some quarter. further current development that will result This onetime of a Well, current risk assumes further wave guidance effect sectors. based top improve €X the an uncertainty on remains pandemic we assuming the million

CETX operating expected on now Given the result, for Manfred first are much to is increases your ratio very I the based very likely. RWA a you positive aforementioned, regulatory half Thank driven of your take XXX% considering result the and attention. expect at happy and we questions.

Bank, first And [Operator Deutsche the you. Goy, from over Benjamin today question comes Instructions] for calling he's to from

one two on Good mBank One morning hi. fee please. Government Yes, mBank. and on and questions

your in for and guidance, XXXX called it's think revenue the particular I on growth.

might how on get mentioned when press And June million anymore. And these we on €XXX reports be first how wasn't core more of staying it's quantify in could in comment temporary the the looked forward from on this you. content, an not can is you So secondly, wondering details going you the whether with the you XX% in terms can active then end ultimately, impact how year half and fee QX maybe I rate. fees. it QX up that it you growth and to and versus give Retail split. indication, brokerage, Thank the from us

I in mind the of you looked Benjamin, mean, mBank. the you keep the rate to you, happened very XXXX sharp and in environment that mBank second if Poland. numbers interest was need quarter thank basically look So quarter thought in decline because I different at second in on the

one results continue and also I basis they think XXXX. young the shown old they also customer based they moment growth have groups, And very is one. have trend this strong basically groups across that's their see very in for on good product until a on they the across this assumptions the customer growing base, and their

So across ratio. custom that group low, it's a at the and gross [indiscernible] very

into them model increases see impact we year double overall, will because you digit and that a they and achieve the year. would now targets, the we will and on and to are alone, rebook end increase next you on will So I we the of the double provisioning which looking there of mean, clients only be that assume Europe definitely a our this revenue earlier of rates on I take will booked very we have than we booked revenue signals, given this On miss that's fees fees, that, see mean, confident because we’re rest interest see backward and and that mBank. the clear on be will will there the also will now inflation that's for April, Poland, expect million price ruling that level digit we specifically account, €XX since

clients. revenue plants business will very to overall good private our stick customer the in given we However, development,

XX%, some quickly the plus retail this QX, developments I contrast here? you assume So was on in brokerage can just slowdown Thank fee, the QX? but And you.

should should expect I to it we that was high. Yes, QX nobody exceptionally we QX after mean, that because repeated said already – be

I better trend it's and of And commission with net more income, whether we also regardless think private have and previous QX income net that you fair the see increased compare you commission take to of QX your continuous QX, XXXX. and clients quarters a QX, XXXX. there

QX clearly we but growth business. an the XXXX So was see exceptional, in strong securities

you. Awesome, thank

Thank you. Stanley, The Dobreva. He from is next comes you. from question to Morgan over calling Izabel

Hello, them. I Thank morning. good you have very much two for questions. taking my of

of So clients about my are at in down If first is question net is near on And ask I much about that division. of €XXX look the and year-on-year. million they to quantified the markets wanted is the X% down interest the you're restructuring nutrition. the income you I I think how the corporate revenue you to division program? about that capital also XX% due fees

return, capital second the is million have is give top in that of now number the you the charges. bulk If solid can very back so capital us of then much rate question be also is at pocket. would XXX amount, helpful. of in is €XX.X a how There that on my and restructuring far? the level run you the adjustment taken So And million

in XXXX mind? your return, perhaps this and you. all it, the with your Thank starting share in in of Are are to you mind, of So the open early obstacles capital in if buybacks? what not, what are views

investment you cautious still you through more. strategy X%. is see convinced what distant know this, to you exactly of for are management we the On basically But all we even pickup, there is would we the mean, definitely like I are we mean, when some write even this app, crisis. corporate thank are But that year-on-year like Izabel. will their the planned respect with So first I clients, the implementation. and see to that That's very by up see as programs. we effects further

some XXXX year has that, QX Specifically quarter We quarter. internal as for One a certain has that been that two very and accept an issuance clients on accept this year. compare was to follows was bond attached reasons corporates. that. year if to we that But we There also strategy our is efficiency last then had not specifically international corporate’s it are for strong you RWA down. and this due been is pandemic that repeated locations the insufficient

progress. have I we had year. that very we you that should really assume. exactly the restructuring tough €X see to not that's buybacks, given is nice Because stick but a question return, number specifically, will say, already? creates this XX.X% the everything, given that Unfortunately, more I think the our now XXX XX.X%. booked know know the much And one capital sale it's make nearly the and in still we specifically come, increasing cetera, to questions of is and billion see still of probably I would of out so costs I I second down number how last locations And think share about you et million dividends, XXXX, to

a this will sure net results, is on buybacks. restructuring debate decent XXXX, capital and show decent should case the First, in share I'm start on pretty also dividends the income. operating if we and we transformation, And the

you. Thank

next Jeremy Moving Paribas, from BNP calling over on next is Exane question, to you. up the who's to Sigee

Thank you. Two questions, please.

in on recent first in one I PTG change on quite costs. just in tests [ph] expect probably a So stress really in at slightly If on question clients. operating costs from you're you're the stress nicely the second test? corporate different CC and topic, divisions, following I possibly capital, the previous results after requirement if and you your the down look the to pillar that in Following the And heavier capital one wondered then requirements? just up from the PSBC, and about any

you're divisions, medium your you the trends just on you of your with that ahead in number? happy the cost and be about term to plan great. you good look Are of in put if talk costs a the underlying I achieving, So if wondered context that'd relative you just that those quite in the plans? term corporate Are medium reductions clients So like plans. divisions can developments

start and things Okay, the to this first in will been range will will change. you feel second developing. lower have likely that where we'll of very are, basis would we with say upper at PTG, that means believe pretty we will XXX see that. points. I range. moment, bucket, that in let that, do be we I how of the the nicely for seen which be can XX do are question we not is classified on me relaxed that most PTG or But the have middle that the we not In the we end But you assure something But on rather of that expect which

tariff second question costs slightly effect. operating et interest we reasons the that have that. and key is related costs, also are is amendment, of to why year of show the to of off to integration PSBC the plan in model and that an increases, integrated second were integrated thing And cetera will higher. costs, immediate developing. employees which of seen our we our is and only Comdirect for tariff an Two the that's increase the system by Comdirect fact reason of the that first saw had just programs according the On end because by the we return according and Commerzbank say the plan. Comdirect And Absolutely, like that voluntary in

client and also of years. plans. the the see sites that calculated the our on have We shown into in will And months the private you clearly next reductions course

left year, would as XXXX that we So will XX,XXX. than out plan already solutions the of end the have the expect by we or everything and have find most likely we of really people more of

better looks than recurring cost And if in expected it client Thank corporate clients? side corporate anything real, level is the is on that that that lower you.

that stuff corporate ultra little plan. the But the corporate normally the and very are has mean and to of development the that. travel clients would with that of a mind in also and costs and little satisfied bit you see clients. depressed they pandemic corporate are due are items bit like will overall, of we but targets we should keep this and clients in I some continue that clear ahead cost there hope And costs

Okay, thank much. very you

you. Thank

up, go Nicholas Next have ahead. calling Herman, Citigroup. we from Please

One you of my by Thanks PSBC, then NII providing Germany bank questions. breakdown from a clients and corporate reference please, Yes, and division obviously, for see. morning. Three just taking good mind do me, outlook

Secondly, your portfolio. your [indiscernible]

That's – efficiency, X%? of this pushing for year. So your continue target of down your than with all that less ahead

of afraid Herman, Mr. catch most please? we repeat didn't questions, could connection, quite of because I'm you that the your question your

you Can me? hear Hello.

was tough it Yes, you understand to Nicholas.

the the think it's on first got outlook question division I NII. by I

than the than we an go believe currently one, have we second efficiency of that The X% share down was even we will even whether think this I XX% further RWA bucket less use end-to-end be come we further.

just So we for your wait question? third

of [Indiscernible] were XXXX part approximately you appreciate CETX as of to Thank you be the [Indiscernible] in to willing end what disclose helpful. you at want would you would ratio that be see? back that February. expecting plan the you. announced That

continue At do on prediction And that on capital see, give also things meaning and happy because have are I'm the facility the and that. we clearly we not on year. perfect PSBC split just How slightly the year upside year. seen clients our to fee. mBank on effects end that. for We'll should we So, And NII is what's definitely from like much on we increased our for PSBC a on that we up feel XX%. overall RWA some now. of program. because currently you and thing, not measures have just now also become ratio we by forecast RWA any for this the down? If in will the expect Because be deposit comparison continue efficiency I that expect and I our up for like second fit Honestly, we the this that already that surpassed expectations we do XXXX. I slightly the capital will we of will and And prolongation, basically slightly slowness of would target as the contribute and mean, next for now sounds I because to comfortable end be up. also But say CC, question. lower to depends that our very stable mean, be ratio margin prediction I HX. it corporate NII stop that efficiency flattish also And a I to will show level might third fact that. NII

So just the just just of as more part is of the terms different. in it to was clarify, world was more question last obviously, the plan,

Now, what of prediction I'm the not just previous asking for was? your current kind prediction. It was was

XX% we positive positive to I a And to that income, have in and results, already costs prediction clearly this a capital then booking a year always say would positive, previous XXXX. of mean, XXXX, the we on full we in effect basically, be also we to plan operating expected that restructuring operating was but decent The ratio. XX%. have which then also the around started would Meaning mean, net I

very That's enough. Fair you Thank much. helpful. really

for he’s to comes you. Reingen, from you. next from Over Thank question today Anke calling The RBC.

very Yes, Good taking for my much. thank Thanks morning. question. you

an €XXX last I about higher the is mean, that a indicating then and more time I the a consent, Just it can terms announced you a of legal wanted currently impairment of does the insignificant risk ruling, practice? accept just of in need think charge, other suggesting work indication? to down in does million in actually the plan it there is Court million basis, mean, board as wonder I you you is original about absolute in becomes costs and And the were one how you people as issue firstly, talked one also your it in strategic the income. at affects benefit, on last I to open, on as year-by-year, very on plan. just the bringing to some give million that specified potential much. your only Thank terms of you just you've you can fees, don't XXX if part you you fee basically the of provision the think I secondly, some willing bit us mean, this of outsourcing, were And the that's give more if a I the from not cancellation make plan of But your €XXX indication year, risk, year. I uplift stick sure you announced not to because indicating.

of And Anke. I very project. better the But not deep absolutely Hi that look the midterm. into right; absolutely insignificant. that our it business and you're now to a found now But €XXX Yes, transformation it. when for But It a it's board And to in is also into has to we now and had comfortable we the take hit that the do Yes. stronger, stop operational, you're discussed an in plan the we internally. the, the think, right. million on I for detail, changes and feel impact plans base is and because are year. all this cost efforts

are fully regard to with on the plan We cost. also

is court I the automatic possible. mean, asked On clear that not increases it's ruling, you've really working? it the them how is

and we consent you pricing our working we clients the the is and the clients it in consent. or assure time. takes So why That's But digital are in an for ask one with that on going model are are contact to can already individual content. from now a individual a with branches to negotiate I in one

customers for not the consent an And reactions the amount, customers to, also good. measures new is on offering yeah the large for on And are problem it so the pricing the individual a to of agree far, accounts.

said why? mean, contract only we the partner, attached under a it on clear can point, the clients And still I year, this to has didn't for due business now there customer respect question and therefore the this And other that reveal the it a I We are yes, out as if million is second mean, revenues overall to And years. get understand will will of in plans short our €XXX to coming and by revenue is that this uplift, as year term has million also amount I double-digit it changes and expect a say balanced But it. it and perhaps provisioning, leave you calculated which is a we something contents legally then costs we change there embedded on PSBC. your first you that. no it's income. impact better there I end for within model is plans, of and with which price the we increases valid. is

Okay, thank you.

you. Thank

who's up, Next Johannes you. have Thormann calling HSBC, to over from we

Good HSBC. up morning, other questions. And Johannes follow one everybody please. Thormann, Two

which but your you you corporate’s in you ask an First far the to the on how the Also, is also are or follow fall And is due like Germany, €X risk changing customer? banks up and other the reach costs needs but on do to hard what usage And are are call ruling? consent, least, back tooling, to this Thank thinking current of price see relationships, or Do I corporate other doing business of on changes be not of what we you additional cost unprofitable? if in to happen several as competitive one you about want banks on needed recent billion Secondly, all Germany? to [indiscernible] you pressure you year? the behavior in last know never don’t margin to Worst would for happen actively impact and back we best the a landscape unchanged? of business But you. competitive BGA it's come or you general should consent maintain know. as scenario? to case case reach what current exiting

Okay.

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morning. Hello, you hear good Can me?

Yes, yes.

Thank you.

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the million be the expenses presentation Can in color first more satisfaction of restructuring would on. further some be Thank indication of there and will on different these end the XXXX? that This the among customer press us customer any customer be that give you is roughly down measure lay expect Can us of spread how mentioned how one. this you you And by satisfaction? you give you. be over expenses the you first period? some €XXX second in and would question the the difference Can your So, will brands release clusters? you

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now on Moving Cruz to calling from next to you. KBW, over question from Hugo the

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drivers for key the the the until are of at year. end that and So, the RWA increase

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you. Thank

calling Mediobanca, from Next up, Rovere. Riccardo He you. we to is have over

you Three questions Good hope may. to can morning me hear everybody. I Good morning. I well. if

than current the before the The it guidance is cost billion large more say should say was even risk vague, have and Why then and would let's conceptual the a which first more now of three better But on I was a X visibility. less is you months one, guidance ago one a billions, that between is €X.X arranged €XXX range. million fairly was

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calling Schmitt, to We'll to Over on Jochen Metzler. question from now Thanks. you. move he’s from a

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you. Thank

today over for Barclays, Jun from from you. The Thank next calling question is Yang, you. to he's

morning, me. Hi, you good hope can hear

Okay. I have two questions.

is The first inbound. one

on disclosure, reduction or payable impact you and is [ph] on contract XXXX understand -- coming last your just off your the I year, quarter XX% be can just by to the than how about the this come from going fund has based a mentioned few is provision future want what an So ways I And question increasing want Court with touch assumptions number you inbound the kind quarter And voluntary could about see each a over been the I want to – just hear that the in in is contract we should to that, the through year. of the understand, on cases? How of guidance, the then case branch or of current understand impact on provision versus less level think case then correctly, to is if what out HTE future? much Court or that? the these different entire And next the on number in assignment next are And how no to when restructuring, settlement closure. quarters.

bunch guidance own, revenue just have change is you, your custom the mentioned any much of You a we of leaving change number year year and is like any XXXX? Thank in financial but much been how much there closure into this has there future a understand further you. the too and and want to the that of is no next into your how

model have together cases. our and on we basically on form therefore also we cases calendar ruling, plus that we quarter-by-quarter what where if last done a increased for damage indeed also the Okay you what win, then the have increased the future We loss reviewed with that and cases. incoming also extrapolation on size do based of we take rate the the We and expect, have we and or our the incoming an the then have and have which of be would take these not of probably is the seen also into would of name the beginning the decision auditor, have end there are May, encouraging in rather court court see and you until for also we quarters seen, so provisioning et current in and April we level that’s the pretty rulings always ruling on now started, of slowdown have September, because decisions second cetera would time always the like for we the lag based rulings, unfolding provisioning. of months cases. of on the three the have specifically right certain anyhow, you But processes But of before, much were type a banks. cases that make feel we number

than On the are the mean, settled, on with we they we have agreements employees, today doesn't more that now that basically done that already restructuring. now leaving I set on we have have, away. we what mean right XXXX impact

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there voluntary expect years, different cost launched expected. it's full meaning baseline. see in which years. the And have leave not to just I churn. impact the the remember we will the last sure. January And negative have the due will the program with coming you had in also XXXX because churn, high million we the assumed we closures. it's of as and you'll of see XXX people of a basically to have that XXXX, started what the we But the plans. that's impact But see in revenue we XXXX mean, agreement will months voluntary as we all we coming branch on we churn, in Xst see our who further by the So for the this is question the and X,XXXs impact signed churn this If

we'll light question Tobias the from to to last over In calling move time, you. Lukesch today Thank of you. Kepler on the from Cheuvreux, for

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what here question if is, or in-house expect from the the level you. expectations And expectations So you would now, profitability my kind secondly, then Thank business? of do you on volume what of solution you go the margin expect you kind through have? that

volumes, total things economies measuring seen, and to for pushing that's hypothetical here. decisions, opposite yes, we're in-house you've the other now, is our because we hypothetical us the an it's better we initiatives have mean, afraid transformation, and as scale for just question. And it's painful the total this Yes, we're any When not… our okay, with of of projects a and have I not a questions are and but taking higher

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was the for questions, you. last, very much last Yes, thank call. would the this I Since this thank say your participation positive you in

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