Commerzbank Conference call

Transcription

1 Commerzbank Conference call Klaus-Peter Müller Chairman of the Board of Managing Directors Frankfurt am Main February 5, 2003

2 2 Commerzbank: Where we stand today No disguising a hugely disappointing outcome to but growing confidence that 2003 can really be a turnaround year

3 3 Commerzbank s net interest income per quarter, in m ,581 3,126 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Reduction in H due to: a minus of roughly 200m from the Rheinhyp transaction sharp decline in risk-weighted assets lower income from reinvested liabilities weak dollar in Q4 reduction of loan portfolio and further concentration on sound-quality borrowers full distribution on profit-sharing certificates and subordinated capital reflected in interest expenses

4 Provisioning: Exactly in line with our forecast 4 Provisioning 2001 Provisioning 2002 in m in m -25% Quarterly average 2002 (331) Quarterly average 2001 (232) Q1 Q2 Q3 Q4 Provisioning in 2001: 927m Total lending 240bn Provisioning ratio (1) : 0.39% Industry average (2) : 0.52% Q1 Q2 Q3 Q4 Provisioning in 2002: 1,321m Total lending: 175bn Provisioning ratio (1) : 0.76% Industry average (2) : > 1.1% 1 Provisioning ratio. Provisioning/total lending 2 Average for major German banks

5 5 Net commission income suffered from weak market conditions in m Lower commissions on securities but improvements in: foreign commercial business payment transactions 2,267 2,109 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q guarantees, and record sales of real-estate funds

6 6 Net result on hedge accounting and trading profit badly hit by weak securities market in m Result on hedge accounting 2 j 63 j Trading profit j 1,197 j Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

7 Development of extraordinary items 7 Net result on investments and securities portfolio - 87m in 2002 (mainly influenced by) in Q3 write-down on T-Online - 506m write-downs on investment funds - 120m write-downs on private equity investments - 40m in Q4 sale of 3.9% stake in Crédit Lyonnais + 386m write-downs on investments in AM-subsidiaries - 85m Other operating result 676m in 2002 (mainly influenced by) in Q3 deconsolidation of Rheinhyp + 721m in Q4 sale of Montgomery Asset Management - 170m Restructuring expenses 209m in 2002 in Q3 in Q4-32m - 177m

8 Cost-cutting offensive ahead of plan 8 39,463 40,067 40,391 39,481 38,665 38,017 37,176 36,541 1,430 1,479 1,459 1,487 1,398 1,308 Staff (end-quarter figures) Operating expenses in m 5,855m 1,229 5,153m 1,218 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

9 Income statement 9 in m Change Pre-tax profit Taxes After-tax profit Profit/loss attributable to minority interests Net profit

10 10 Tight cost management continues to have highest priority for Group in bn Group's operating expenses Target: 1999 cost level Actual 1999 Actual 2000 Actual 2001 Actual 2002 Target 2003 Target 2004

11 Commerzbank s greatly improved capital ratios 11 Capital-market situation Steady reduction of Group s risk-weighted assets now underway; active overhaul of loan portfolio since November Medium-term targets for capital ratios have been defined Tier I ratio (BIS) > 7.0% Overall capital ratio (BIS) >12.0% Equity freed up by use of internal model for specific interest-rate risks: risk-weighted assets reduced by over 6bn Tier I ratio (BIS) (incl. market risk) 6.0% 6.0% 5.9% 6.7% 7.3% 7.6% 7.6% 7.6% 7.7% 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 Overall capital ratio (BIS) 10.3% 10.3% 10.5% Changes in equity ratios Target: > 7.0% 11.5% 12.7% 12.7% 12.6% 12.4% 12.4% 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03

12 Commerzbank: Spreads back to normal Anti-Commerzbank campaign Spread development (1) Market rumours in September/October and the S&P downgrade caused Commerzbank's bond spreads to widen considerably for a time At the time, Group Treasury calmed the market by setting prices and taking the Bank s securities out of the market Despite market rumours and the downgrade, spreads on Commerzbank's senior bonds have been reduced markedly (1) Secondary-market spreads for Commerzbank senior debt; price difference between CMZB 5.5%, 10/11 and euro swap

13 Pressure taken off revaluation reserve in Q4 in m 13 Revaluation reserve The revaluation reserve is part of the IAS group capital. A negative revaluation reserve reduces the IAS group capital, but has no impact on the regulatory capital ratios

14 Successes scored with Bank s restructuring over past 12 months 14 Retail Corporate IB AM Services/ GM Play to win restructuring programme (retail banking) and com 1 (comdirect) Creation of Private Banking department Financial engineering centres set up, focusing on Mittelstand segment (integration of corporate and investment banking) Reshaping and efficiency boost in credit organization (to comply with MaK) Restructuring of Investment Banking Core target-group focus for products Consolidation of activities: formation of COMINVEST Sale of Montgomery Financial Controlling staff department established Outsourcing negotiations in IT area Cooperation talks in back-office area

15 Commerzbank: On its way back to a successful course 15 Our strengths are: our excellent position in our core market Germany the high quality of our loan portfolio our focus on core competencies combined with the willingness to dispose of non-strategic activities and all this on much-improved capital ratios.

16 For more information, please contact: Commerzbank Investor Relations Tel. +49 (69) ir@commerzbank.com