/ commerzbank figures, facts, targets /

Transcription

1 / commerzbank figures, facts, targets / INVESTOR RELATIONS 3rd QUARTER 2006 / 2005 EPS-level almost reached after 9 months / in

2 Commerzbank AG Group Communications D Frankfurt am Main Investor Relations Jürgen Ackermann Sandra Büschken Ute Heiserer-Jäckel Simone Nuxoll Stefan Philippi Office: Andrea Flügel Telephone Telefax Regulated by FSA for the Conduct of Investment Business in the UK This publication appears four times a year to accompany the quarterly results and the annual financial statements. This presentation can also be found on Commerzbank s web site, in German and English. German: Investor Relations Analysten Handouts English: Investor Relations Analyst Handouts Completed on November 2, 2006

3 / commerzbank figures, facts, targets / Key data of 1st nine months 2006 Profit per quarter 2 Commerzbank s specific strengths Commerzbank s core market: Germany 3 Commerzbank s future growth New Group Structure 4 Commerzbank s path to stability and growth Commerzbank and Eurohypo the pre-eminent commercial bank 5 Main benefits of Eurohypo transaction Integration process of Eurohypo progressing well 6 Commerzbank Group s income statement Net interest income 7 Loan-loss provisions, by segment Provision for possible loan losses 8 Breakdown of net commission income Trading profit 9 Operating expenses Commerzbank s cost management 10 Profitability ratios Key figures per Commerzbank share 11 Development of business volume Claims on customers 12 Retail Banking (Germany): Rating of agreed credit lines Corporate Banking (Germany): Rating of agreed credit lines 13 Content Breakdown of assets Breakdown of liabilities 14 Revaluation reserve Risk-weighted assets vs. Tier I capital ratio and own funds ratio 15 Group equity definitions Focused strategy 16 Breakdown of results, by segment 17 Segments showing positive development Equity allocation 18 Private & Business Customers 19 Asset Management 20 Mittelstand 21 Corporates & Markets 22 Commercial Real Estate 23 Public Finance & Treasury 24 Commerzbank s main areas of focus Key take-aways 25 Capital Management The leading commercial bank 26 Equity and market capitalization Commerzbank s shareholders 27 Performance of the Commerzbank share Trading volume of the Commerzbank share 28 Assets under Mangement Branch structure of Commerzbank AG 29 Basic Commerzbank data Financial calendar All figures if not stated otherwise according to IAS/IFRS

4 Key data of first nine months ) 2005 Jan-Sep 2006 Comments Operating profit ( m) 559 1,011 1,717 1,996 Substantially increased Cost/income ratio (%) Sharpened business profile Operating RoE (%) 2) Reaching new dimensions Net RoE (%) 2) Substantial boost Tier I ratio (%) 3) In line with target EPS ( ) Almost FY 2005 level Dividend (per share in ) Dynamic dividend growth Core financial figures reflect continuous improvement 1) restated; 2) annualized; 3) including market-risk position Profit per quarter Commerzbank Group, in m 959 Operating profit Net profit Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1) restated 1)

5 Commerzbank s specific strengths basis to build upon 1. Clear strategic position German Mittelstand Private & Business Customers No. 1 commercial real estate bank 2. Management Committed to Commerzbank s longterm success 3. Financials strength High loan quality Solid Tier I capital High revaluation reserves Commerzbank s core market: Germany Commerzbank s core regions Commerzbank s set-up* Employees 23% 77% Claims on customers 27% 73% Net revenues 30% 70% Germany outside Germany * Commerzbank Group per 12/2005 3

6 Commerzbank s future growth: three principal paths In-market merger Organic growth: Cross-border merger Through optimization of existing business model (defined programs) Stand-alone optimization Organic growth Acquisitions RoE-efficiency (cost, capital, earnings) Acquisitions: core regions core products core customers Prudent criteria: EPS accretion RoE improvement Strong capital ratios Low execution risk Rating stability Goals need to be met in 2 years New Group Structure* Commerzbank CRO: Hartmann CEO: Müller CFO: Strutz Private & Business Customers Retail Banking Private Banking comdirect bank Retail Banking Eurohypo Retail Credit PCAM Asset Management German Asset Management International Asset Management Real Estate Asset Management Mittelstand Mittelstand Germany Central/Eastern Europe BRE Bank Asia Financial Institutions CIB Corporates & Markets Markets Multinational Corporates Europe West USA Africa CRE, Public Finance and Treasury Commercial Real Estate Commercial Real Estate Eurohypo Commercial Real Estate USA CLI CORECD Public Finance & Treasury Public Finance & Treasury Eurohypo Essenhyp EEPK Treasury Kassow Blessing Teller Knobloch Patig *) as of Sep. 30,

7 Commerzbank s path to stability and growth Progressing: Stability and focused growth Restored: Corporate financial strength ( ) Management changes implemented Costs cut rigidly Liquidity prudently managed Capital base strengthened Regained: Improved core business ( ) Significantly de-risked loan portfolio and VaR Non-core participations sold Restored profitability in Retail Major turnaround in Corporate Bank De-risked Investment Banking, significant turnaround Strong stand-alone position Active role in the consolidating German banking market Profitability enhancement in all divisions Focusing on regions and products with competitive strengths Focused investments for internal and external growth Increasing capital efficiency Continuing tight cost management Commerzbank and Eurohypo: the pre-eminent commercial bank in Germany Germany No. 1 Commercial real estate bank - market share increase from 17 to 22% No. 1 Public sector financing in combination with Essenhyp No. 2 Residential real estate financing - market share doubled to 6% No. 2 German bank by total assets No. 2 Mittelstandsbank No. 3 Retail bank with 5m customers International No. 1 CMBS originator No. 1 Jumbo Pfandbriefe Europe (together with Essenhyp 26% market share) Top 5 Real estate banking in USA Leading position in securitization and syndication in Europe No. 10 CEE bank with BRE and strong presence in Moscow, Prague and Budapest 5

8 Main benefits of Eurohypo transaction Strong business fit Reinforce Commerzbank s position as the leading German commercial bank Broaden exposure in the recovering German real estate market (No. 1 with market share of 22%) Increasing and more stable earnings Additional shareholder Substantial value value creation EPS and ROE accretion Growing dividends in following years Benefit from German recovery story Value-enhancing with identified synergies High tax benefits Integration process of Eurohypo progressing well All integration projects fully in line with plan Required measures at executive level initiated Joint business processes established Key functions centrally managed Total synergy potential reconfirmed First revenue synergies realized Strong identification of staff with new Group creating new business momentum Focus in H2: Implementing of defined measures Origination strategy Increase of real estate capital market product range 6

9 Commerzbank Group s income statement Change in m in m in m in % Net interest income 2,935 2, Provisions for possible loan losses Net interest income after provisioning 2,141 1, Net commission income 2,080 1, Trading profit Net result on investments and securities portfolio Other result Total income 5,805 4,543 1, Operating expenses 3,809 3, Operating profit 1,996 1, Restructuring expenses Pre-tax profit 1,782 1, Taxes After-tax profit 1, Profit/loss attributable to minority interests Net profit 1, Net interest income Commerzbank Group, in m 2,776 3,013 3,172 2,339 2,606 2, % 2,177 2,141 1,813 1, % Net interest income before provisioning 1,084 Loan-loss provisions ) Net interest income after provisioning % 1) restated; 2) including one-off provisions of 293m 7 1)

10 Loan-loss provisions, by segment Commerzbank Group, in m Σ 1,084 Total 2003 and 2004 Public Finance & Treasury Commercial Real Estate Σ 836 Σ Σ Corporates & Markets Mittelstand ** Private and Business Customers * *) since Q2 including Eurohypo; **) including one-off provisions of 293m Commerzbank Group s provision for possible loan losses Value adjustments and loan losses , in % provisioning ratio write-off ratio 1) 2) 1) Net provision for risks as percentage of total lending; 2) Write-offs as a percentage of total lending 8

11 Breakdown of net commission income Commerzbank Group, in m Securities business 2, , , , Asset Management Foreign commercial business and payments transactions Guarantees Income from syndicated business Other commissions generated abroad 33.3% 26.7% 25.3% 24.9% Trading profit* Commerzbank Group, in m Σ 777 Σ Σ 685 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q *) including Net result on hedge accounting 9

12 Operating expenses Commerzbank Group, in m 4,511 4,493 4,662 3,809* 2,442 2,452 2,667 2,316 1, % 1,594 1,639 1,560 Personnel expenses Other expenses 1,139 1, % Depreciation on fixed and intangible assets % *) including Eurohypo Commerzbank s cost management 35,384 36,123 35,662 33,850 33,206 33,327 33,230 33,153 32,706 32,820 32,64732,578 33,056 32,377 32,349 Σ 4,511 Σ 4,493 Σ 4,662 1,190 1,327 1,292 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1) Q staff (end-quarter figures) operating expenses in m 1) since Q2 including Eurohypo 10

13 Profitability ratios in % Cost/income ratio in operating business Operating return on equity ) ) restated Key figures per Commerzbank share in ) ) Net income 2) Pre-tax profit Dividend 1) 2) ) excluding tax credit; 2) incl. restructuring expenses; 3) restated Number of shares issued in m Average number of shares outstanding in m

14 Development of business volume Commerzbank Group, in bn Balance-sheet total Risk-weighted assets (BIS) Claims on customers ) ) 1) restated; 2) including Eurohypo Claims on customers Commerzbank Group 138.4bn 150.3bn bn Corporate and retail customers 27.9% 24.1% 24.3% Public authorities Foreign 2.5% 3.0% 2.4% Corporate customers 31.8% 30.1% 28.6% Retail customers Public authorities Domestic 26.1% 24.9% 25.4% 11.7% 17.9% 19.3% ) 1) restated 12

15 Retail Banking (Germany): Rating of agreed credit lines* in % as of as of R0 R1 R2 R3 R4 R5 R6.0 R6.5 Credit rating * gross, before collateral and provisioning; excluding Eurohypo Corporate Banking (Germany): Rating of agreed credit lines* in % as of as of R0 R1 R2 R3 R4 R5 R6.0 R6.5 Credit rating * gross, before collateral and provisioning; excluding Eurohypo 13

16 Breakdown of assets Commerzbank Group, in m Balance-sheet total 665,334 Liquid funds 4, ,724 8, ,970 79,422 Claims on banks Claims on customers (after provisioning) 291, ,984 Assets held for dealing purposes/financial investments Other assets * including Eurohypo 216,850 17, ,596 19, Pro-forma * Breakdown of liabilities Commerzbank Group, in m Balance-sheet total 609, ,334 Liabilities to banks Liabilities to other creditors 131, , , ,171 Securitized liabilities Own funds Other liabilities 222,979 28,979 83, ,080 25, ,757 * including Eurohypo Pro-Forma *

17 Revaluation reserve in bn Major participations of Commerzbank as of : 5-10%: Linde* 1-5%: Generali Mediobanca** ThyssenKrupp* *indirectly **directly and indirectly Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q equities bonds Risk-weighted assets vs. Tier I capital ratio and own funds ratio in bn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* Q2 Q Risk-weighted assets Tier I ratio (%), incl. market risk position Own funds ratio (%), incl. market risk position *) since Q1 including Eurohypo 15

18 Group equity definitions Reconciliation of equity definitions Equity basis for RoE Equity definitions in m Sep 2006 Subscribed capital 1,707 Capital reserve 5,700 Retained earnings 4,154 Reserve from currency translation -131 Basis for RoE on net profit since 2005 unchanged Investors capital without minorities 11,430 Minority interests (IFRS)* 909 Investors capital 12,339 Change in consolidated companies; goodwill; consolidated net profit minus portion of dividend; 302 others BIS core capital without hybrid capital 12,641 New basis for operating RoE and pre-tax RoE from Q Old basis for operating RoE and pre-tax RoE until Q Contains consolidated net profit (since 2006) and deductions due to goodwill Not aligned with calculation of RoE on net profit Hybrid capital 2,584 BIS Tier I capital 15,225 * excluding: Revaluation reserve Cash flow hedges Consolidated profit Focused strategy to further increase profitability and growth Efficiency PBC Branch business Retail / Private Banking Further improvement in cost efficiency of branches (Branch of the future) Optimizing credit administration via new credit centers Foreign branches Cost efficiency and profitability enhancement in Western Europe Corporates & Markets De-risking Investment Banking Reducing complexity Mittelstand Optimizing credit processes => reaching cost leadership IT / TB Reducing expenses and optimizing processes in IT and Transaction Banking Facility Management Further reduction of idle office space Eurohypo Back office cost reduction Exploring further synergy potential Growth PBC Private Banking: Continuing organic growth strategy Business Customers: New customer advisory model Direct Banking: Further focusing on customer growth Upper Retail/Affluents: Gaining new customers via new marketing approach and stronger media presence German Asset Management Growth of AuM Strengthening distribution, product quality and innovation Corporates & Markets Focus on areas with competitive edge, i.e. derivatives and structured products Mittelstand Increase wallet share with existing customers Revenue growth by product initiative Acquiring new customers Strategic initiatives at BRE Bank External growth 2004: Takeover SchmidtBank 2005: Acquisition of Eurohypo 2006: Acquisition of Münchener Kapitalanlageges. 2006: Participation in Promsvyazbank CRE Strong focus on origination strategy Increase of real estate capital market product range 16

19 Breakdown of results, by segment Commerzbank Group, , in m Private and Business Customers Asset Management Mittelstand Corporates & Markets Commercial Real Estate Public Finance & Treasury Others/ consolidation Total Net interest income ,935 Provisions for possible loan losses Net interest income after provisioning ) ,141 Net commission income ,080 Trading profit 1) Net result on investments and securities portfolio Other result Total income 1, ,323 1, ,805 Operating expenses 1, ,809 Operating profit ,996 Restructuring expenses Pre-tax profit ,782 1) Since June 30, 2006 including Net result on hedge accounting; 2) including one-off provisions of 293m Breakdown of results, by segment Commerzbank Group, Private and Business Customers Asset Management Mittelstand Corporates & Markets Commercial Real Estate Public Finance & Treasury Others/ consolidation Total Average equity tied-up ( m) Operative return on equity (%)* Cost/income ratio in operating business (%) Return on equity of pre-tax profit (%)* 2, ,021 2,463 2,761 1, , staff (average number) 10,913 1,859 9,317 1,730 1, ,123 34,653 * annualized 17

20 Segments showing positive development Operating profit in m Private & Business Customers Asset Management Mittelstand Q1 Q2 Q3 Q4 Q1 Q2 Q Corporates & Markets 106 Σ Σ Q1 Q2 Q3 Q4 Q1 Q2 Q Q1 Q2 Q3 Q4 Q1 Q2 Q Commercial Real Estate Q1 Q2 Q3 Q4 Q1 Q2 Q Σ 120 Σ 599 Σ Q1 Q2 Q3 Q4 Q1 Q2 Q Public Finance & Treasury Σ Q1 Q2 Q3 Q4 Q1 Q2 Q Equity allocation within Commerzbank Group % 1% 19% Private and Business Customers 2,283m 22% 12,338m 5% Asset Management 569m Mittelstand 3,021m Corporates & Markets 2,463m 20% 24% Commercial Real Estate 2,761m Public Finance & Treasury 1,085m Others and consolidation 156m 18

21 Private & Business Customers Commerzbank s Strategic Position Profitability Drivers One of the leading retail banks in Germany with 5 million customers: - No. 1 in Online Brokerage - No. 1 for Business Customers - Among top 3 in Private Banking - No. 1 in retail credit (with Eurohypo) Sizable investment programme being implemented at comdirect and in private and business customers segment Enhanced branch efficiency ( Branch of the future ) Enhanced quality in financial consulting and sales effectiveness Extra allocation to provisions has adverse effect on earnings in Strategic Goals Organic growth in private and business customer segment through focused investment programmes Increased profitability by ongoing cost containment, improved quality of loan book and risk-return based equity management Financial goal: Operating RoE > 18% by 2010 Higher LPPs distorted result of Private & Business Customers Operating profit in m Q1 Q2 Q3 Q4 Q1 Q2 Q Pro-forma integration of Eurohypo Q3 `06 Q3 `05 Ø equity ( m) 2,437 1,909 Abridged P&L in m Q3 `05 Q3 `06 Jan-Sep `05 Jan-Sep `06 Net interest income Risk provisioning Commission income Trading profit Other items Operating expenses ,269 1,397 Operating profit NII and commission income maintained on high level 293m one-off LLP charges booked entirely in Q3 Credit margins stable, deposit margins widened Operating RoE* (%) CIR (%) Ø Q3 equity allocation within Group *annualized 19.7% Strategic outlook Focus on organic growth Vast investment programme at comdirect initiated Ongoing efficiency initiatives 19

22 Asset Management 1. Commerzbank s Strategic Position European multi-boutique business: - Cominvest: No. 6 in German Fund Market - Commerz Grundbesitz: No. 3 in German Real Estate Funds Market - Jupiter: No. 5 in UK Fund Market - CCR: No. 3 French Money Market Specialist 2. Profitability Drivers Enhanced product performance by focusing on core competences Net inflows through focused marketing of flagship products/innovations, especially third-party sales Efficiency programme for fund administration 3. Strategic Goals German core activities: - Cominvest: Assets under Management to be practically doubled by 2011, driven by innovation and performance - Commerz Grundbesitz: diversification of product range Jupiter: divestment planned CCR: organic growth Asset Management generated stable profits Abridged P&L Operating profit in m in m Q3 `05 Q3 `06 Jan-Sep `05 Jan-Sep `06 Net interest income Commission income Trading profit AfS result Other operating result Operating expenses Q1 Q2 Q3 Q4 Q1 Q2 Q Q3 `06 Q3 `05 Ø equity ( m) Operating RoE* (%) Operating profit AuM rose from 97bn to 108bn (y-o-y), up 13% Commission income up substantially by 28% (y-o-y) Y-o-y rise in operating expenses mainly driven by IFRS 2 charges relating to Jupiter LTI CIR (%) Ø Q3 equity allocation within Group *annualized 4.4% Strategic outlook Organic growth initiative at Cominvest 20

23 Mittelstand 1. Commerzbank s Strategic Position Top 2 Mittelstand bank in Germany Strong position in CEE with BRE Bank in Poland and our branches/subsidiaries in Russia, Czech Republic and Hungary No. 8 in Russia with Promsvyazbank 2. Profitability Drivers Acquisition of new customers and increase of wallet share with innovative products for SMEs Boosting existing business with value-added products for larger corporates Continuous cost and risk management by improving credit processes Value-based management of equity and credit portfolio 3. Strategic Goals Enhancing our position as the best bank for Germany s Mittelstand RoE target of 17% already to be reached in 2006 RoE of > 20% expected for 2008 Excellent performance in Mittelstand continued Abridged P&L Operating profit in m in m Q3 `05 Q3 `06 Jan-Sep `05 Jan-Sep `06 Net interest income Risk provisioning Commission income Trading profit Other items Operating expenses Q1 Q2 Q3 Q4 Q1 Q2 Q Ø equity ( m) Operating RoE* (%) Ø Q3 equity allocation within Group *annualized Q3 `06 Q3 `05 2,857 3, CIR (%) % Operating profit Good underlying business in Germany Higher NII contribution from subsidiaries/participations Domestic lending volume and margins stable q-o-q, domestic deposit volume and margins increased Lower LLP need due to improved credit quality Sustainably high commission income underlines cross-selling achievements Strategic outlook Extend Move to the top programme 21

24 Corporates & Markets 1. Commerzbank s Strategic Position No. 1 producer of structured retail products at the world s biggest retail exchange EUWAX Pan-European warrant house with leading positions in France, The Netherlands, Belgium and Portugal Among top three providers in LBO finance, Covered Bonds and Public Finance in Germany Strong position in FX business 2. Profitability Drivers Strong and stable client business across all products Very positive development in structured retail products Substantially increased capital efficiency 3. Strategic Goals Improving profit in Markets division by leveraging state-of-the-art multi-asset structuring expertise Focusing on regions and products with competitive strengths sustainable value proposition for our customers Strong client relationship and service model Further capital efficiency measures (introduction of active Credit Portfolio Management in 2007) Corporates & Markets continues to deliver sustainable results Operating profit in m Q1 Q2 Q3 Q4 Q1 Q2 Q Ø equity ( m) Operating RoE* (%) Ø Q3 equity allocation within Group *annualized Q3 `06 Q3 `05 2,259 2, CIR (%) % Abridged P&L in m Q3 `05 Q3 `06 Jan-Sep `05 Jan-Sep `06 Net interest income Risk provisioning Commission income Trading profit Other items Operating expenses Operating profit Solid trading profit despite seasonally weaker customer activity Equity derivatives, Interest Rate and FX business main profit pillar Trading VaR maintained at low levels ( 8.4m) Sustainabnle operating RoE improvement to 28% CIR of 63% compares favourable with peers Decline in equity tied up due to securitisation and lower risk Strategic outlook Closing existing gaps of institutional business platform Introducing active credit portfolio management in 1Q07 22

25 Commercial Real Estate 1. Commerzbank s Strategic Position After completion of Eurohypo acquisition, CB is - Leading commercial real estate bank in Europe - European market leader for real estate syndications and CMBS 2. Profitability Drivers Strengthen buy-and-manage business model Continuing international expansion Increased use of capital markets instruments Germany: Continuing profitability increase of the portfolio by repricing the back book 3. Strategic Goals No. 1 partner for commercial real estate globally CLI leading German company for leasing of real estate and equipment Commercial Real Estate delivered strong results in Q3 Operating profit in m Q1 Q2 Q3 Q4 Q1 Q2 Q Ø equity ( m) Operating RoE* (%) Ø Q3 equity allocation within Group *annualized Q3 `06 Q3 `05 3, CIR (%) % Abridged P&L in m Q3 `05 Q3 `06 Jan-Sep `05 Jan-Sep `06 Net interest income Risk provisioning Commission income Trading profit Other items Operating expenses Operating profit Pro-forma integration of Eurohypo Strong underlying business, revenues up 7% on Q New business of 23.8bn concluded at 2005 record level Securitization of landmark deals driver for commission income growth Operating profit up 24% vs. Q2 Encouraging RoE trend, outstanding CIR of 37.6% Strategic outlook Focus on origination strategy Broadening of real estate capital-market product range 23

26 Public Finance & Treasury Commerzbank s Strategic Position Profitability Drivers Eurohypo is a leading public finance institution in Germany and Luxembourg Stable profit contribution thanks to central portfolio management (EHY) Focus on active credit-risk management, with low interest-rate risk (EHY) High-quality portfolio (EHY) Margin-oriented new business with international focus (EHY) Essenhyp and EEPK on a high profitability course New management has achieved positive earnings trend (Treasury Germany) 3. Strategic Goals Further portfolio diversification through international focus (EHY) Creation of own origination unit and stronger focus on structured products (EHY) Flat yield curve affected Public Finance & Treasury Operating profit in m Q1 Q2 Q3 Q4 Q1 Q2 Q Pro-forma integration of Eurohypo Abridged P&L in m Q3 `05 Q3 `06 Jan-Sep `05 Jan-Sep `06 Net interest income Risk provisioning Commission income Trading profit Other items Operating expenses Operating profit Ø equity ( m) Operating RoE* (%) Ø Q3 equity allocation within Group Q3 `06 Q3 `05 1, CIR (%) % Lower NII from prepayment penalty Negative trading profit reflects flat yield curve Integrated Treasury *annualized 24

27 Commerzbank s main areas of focus Strategy Additional Divisions shareholder value Strengthening leading position in Germany Playing an active part in consolidating the German Banking market Balance of focused growth and profitability Keeping strong momentum in Mittelstand and C&M Growing business in PBC and AM Sharpening distribution strategy at CRE 3. Costs/Synergies Pursuing several cost efficiency programmes Utilizing cost and revenue synergies with EHY 4. Capital Capital management Maintaining target range of % Tier I ratio Basel II Key take-aways Achievements Group targets Levers Strong underlying business will lead to best-ever result in 2006 Germany s leading commercial bank Europe s leading specialist bank for real estate and public finance Sustainable profitability of 15% net RoE (by 2010) CIR < 60% (by 2010) Double-digit EPS growth (in %) Steady increase in dividend Revenue growth by -exploiting inherent potential -investments in organic and selective external growth -seizing opportunities in high-potential markets Further improving profitability by -strict cost management -active capital management 25

28 Capital management underlines our RoE commitment Diverse capital measures within the last 12 months Capital increase: Volume of 1.3bn, 3x oversubscribed Hybrid capital: Volume of 2.2bn, 3x oversubscribed Lower Tier II: Volume of 1.25bn, 3x oversubscribed Capital structure optimized Tier I ratio as well as RoE well in line despite investments Disposals Sale of non-strategic participations, e.g. KEB, Heidelberger Druck, Banca Intesa, Ferrari Focus on core competencies Active management of credit portfolio Securitization of 4.5bn via CLO (C&M) and 0.5bn loans via TSI (Mittelstand) Establishing credit portfolio management Focus on RoE (not on balance sheet volume) Commerzbank: the leading Commercial Bank in Germany - strongly positioned to continue profitable growth Financial target on track RoE: % 2006p >10% 2007p >11% 2010e 15% Long-term RoE goal RoE after tax adjusted of one-off positions As of 9M 2006 As of 1H

29 Equity and market capitalization Commerzbank Group, in bn Equity 1) Market capitalization 2) ) excluding cash flow hedges; 2) restated Commerzbank s 290,000 shareholders Abroad Private investors 1.0% Germany Private investors 22.1% Generali 8.6% Mediobanca 0.5% Institutional investors 24.4% (incl. approx. 3% Munich Re) Institutional investors 43.4% (incl. 5% Capital Group) as of September 30,

30 Performance of the Commerzbank share Month-end figures, January 2003 = * * until October 27, 2006 Commerzbank share price DJ Euro Stoxx Banks CDAX (Banks) Trading volume of the Commerzbank share in bn On , the Commerzbank share had an index weighting of 2.6% in the DAX index and 2.1% in the DJ Euro Stoxx Banks. 1.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q

31 Assets under management in bn, as of total: bn COMINVEST Group CCR Group Jupiter Group Asia Real-estate funds Domestic Abroad Asset Management Private Banking* *) incl. custody and deposit accounts as well as discretionary management Branch structure of Commerzbank AG in Germany as of Private and business customers 820 outlets Corporate customers (Mittelstand) 150 outlets main branches 20 main branches* 16 regional branches advisory centres regional distribution units 87 branches 680 local sales offices 63 In addition, 5 larger corporates centres Corporate Banking in Düsseldorf, Frankfurt/Main, Hamburg, Munich and Stuttgart *) included under regional distribution units 29

32 Basic Commerzbank data year-end figures Commerzbank Group Branches ,037 Customers 6.00 m 6.84 m 7.88 m 8.20 m Employees 36,566 32,377 32,820 33,056 of whom: in Germany 28,603 25,426 25,417 25,304 abroad 7,963 6,951 7,403 7,752 Parent Bank Branches of which: in Germany abroad Employees 28,343 25,260 24,860 24,649 of whom: in Germany 25,739 22,957 22,758 22,715 abroad 2,604 2,303 2,102 1,934 Financial calendar 2006/2007* November 3, 2006 Q Telephone Conference February 14, 2007 Annual results press conference 2007 Early May 2007 Q Telephone Conference May 16, 2007 Early August 2007 Annual General Meeting Q Telephone Conference September 20, 2007 Investors Day *) provisional dates 30

33 notes

34 notes

35 / disclaimer / RESERVATION REGARDING FORWARD-LOOKING STATEMENTS This publication contains forward-looking statements on Commerzbank s business and earnings performance, which are based upon our current plans, estimates, forecasts and expectations. The statements entail risks and uncertainties, as there are a variety of factors which influence our business and to a great extent lie beyond our sphere of influence. Above all, these include the economic situation, the state of the financial markets worldwide and possible loan losses. Actual results and developments may, therefore, diverge considerably from our current assumptions, which, for this reason, are valid only at the time of publication. We undertake no obligation to revise our forward-looking statements in the light of either new information or unexpected events.

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