Analysts conference Commerzbank Q results Frankfurt

Transcription

1 Analysts conference Commerzbank Q results Frankfurt May 3, 2005

2 Chart 1 Agenda Corinna Linner IAS/IFRS Changes Dr. Thorsten Broecker New segment reporting Dr. Eric Strutz Q figures

3 Chart 2 IAS / IFRS Changes effective 2005 Topic Application IAS 39 Distinction between Claims on banks and customers and Investments and Securities portfolio retrospective IAS 39 Fair value option retrospective IFRS 2 Staff remuneration plans retrospective IFRS 3 Goodwill impairment prospective IAS 1 Minority interests retrospective

4 Chart 3 IAS / IFRS changes to be implemented (1/4) Distinction between Claims on banks and customers and investments and securities portfolio (IAS 39) Till end 2004 Effective 2005 Impact on 2004 figures P&L Equity Originated by the Bank Not listed in an active market 23m moved from AfSresult disclosed under claims on banks and customers, gains or losses from disposals shown under interest income Q to interest income Acquired in the secondary market Listed in an active market disclosed under Investments and securities portfolio, gains or losses from disposals shown under AfSresult FY m moved from AfSresult to interest income. (as a result: income from Q2 to Q4 was 1m) Reduction of revalutation reserves by 3m Due to a revaluation from fair value to amortized cost

5 Chart 4 IAS / IFRS changes to be implemented (2/4) Fair value option (IAS 39) Till end 2004 Effective 2005 Impact on 2004 figures P&L Equity New rule, did not exist before. Additional measurement possibility (voluntary measurement at fair value of financial instruments which do not have to be measured according to this principle) EUcommission did not permit fair value option for financial liabilities Q FY 2004 Slight impact of 0.2m Slight impact of 0.2m Increase of retained earnings by 1m (P&Leffect of 2003) Measurement changes: trading profit in P&L

6 Chart 5 IAS / IFRS changes to be implemented (3/4) Staff remuneration plans (IFRS 2) Till end 2004 Effective 2005 Impact on 2004 figures P&L Equity Formation of provisions if plan is likely to be used Recognition at fair value expenses spread across Q Increased staff cost 8m the lifetime of a plan distinction in the balance sheet: Cash settled plans: provisions Equity settled plans: equity FY 2004 Increased staff cost 32m. After minority interest of 1m: Total P&Limpact 31m Decrease of retained earnings of 20m (P&Leffect 2003) Decrease of Retained earnings of 31m (P&Leffect 2004) Increase of Capital reserve of 6 m

7 Chart 6 IAS / IFRS changes to be implemented (4/4) Goodwill impairment (IFRS 3) Till end 2004 Effective 2005 Impact on 2004 figures P&L Equity Amortization of goodwill over 15 years (using straightline method) No regular amortization of goodwill after January 1, 2005 instead: impairment test at least once a year No impact No restatement, just prospective Minority interest (IAS 1) Impact on 2004 figures Till end 2004 Effective 2005 P&L Equity Shown separately from Shown within equity No impact Equity increased Equity under minority by 1,269m interests

8 Chart 7 Agenda Corinna Linner IAS/IFRS Changes Dr. Thorsten Broecker New segment reporting Dr. Eric Strutz Q figures

9 Chart 8 Commerzbank has altered its segment reporting New segment reporting UB PC / AM UB CIB Group structure 2004 Retail Asset Management Corporate Customers and Institutions Securities Group Treasury Mortgage Others & Consolidation Step 1 New Group structure 2005 Private and Business Customers UB PC / AM Asset Management Others & Consolidation Mittelstandsbank UB CIB International Corporate Corporates & Markets Group Treasury Mortgage Step 2 Allocation of Others & Consolidation Step 3 Allocation of Group Treasury Private and Business Customers UB PC / AM Asset Management Others & Consolidation Mittelstandsbank UB CIB International Corporate Corporates & Markets Group Investments & Others Mortgage

10 Chart 9 Group structure 2004 (1/2) Segments New segment reporting 2004 UB PC / AM UB CIB Retail Asset Management Corporate Customers and Institutions Securities Group Treasury Mortgage Others & Consolidation Retail Private comdirect Asset Management COMINVEST Jupiter CB Europe CCR Germany, Mittelstand, large and multinational corporates Europe USA, Asia, Africa Leasing Securities Treasury Germany Eurohypo Essenhyp EEPK Participations Consolidation Realestate fund management Financial Institutions

11 Chart 10 New segment reporting Group structure 2004 (2/2) Financials restated for changes in IAS / IFRS [ m] Retail Asset Management Corporate Customers and Institutions Securities Group Treasury Mortgage Others & Consolidation Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio Other operating result Total Income Operating expenses Operating profit Regular amortization of goodwill Restructuring expenses Pretax profit Total Average equity tied up Operative return on equity (%) 21,1% 26,1% 12,8% 12,9% 123,7% 22,9%. 9,9% Cost/income ratio in operating business (%) 72,5% 71,9% 52,7% 121,0% 24,9% 14,3%. 70,9% Return on equity of pretax profit (%) 21,1% 14,9% 12,6% 24,5% 123,7% 22,0%. 7,8% Note: Major changes in income and expenses to published 2004 results are highlighted; Segments: average equity tied up according to KWG, Total: average equity tied up according to BIZ

12 Chart 11 New group structure 2005 (1/2) Reorganisation New segment reporting Step 1 UB PC / AM UB CIB Retail Asset Management Corporate Customers and Institutions Securities Group Treasury Mortgage Others & Consolidation I Retail Private comdirect Asset Management COMINVEST Jupiter CCR CB Europe Germany, Mittelstand, multinational corporates Europe USA, Asia, Africa Leasing Realestate fund management Financial Institutions Securities Treasury Germany Eurohypo Essenhyp EEPK Participations Consolidation UB PC / AM UB CIB Private and Business Customers Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Group Treasury Mortgage II Retail Private comdirect Asset Mittelstand Management Germany Realestate Central / fund management Europe Eastern Leasing Europe West USA, Asia, Africa Financial Institutions Multinational corporates Securities London Branch Treasury Germany Eurohypo Essenhyp EEPK Participations Consolidation

13 Chart 12 New Group structure 2005 (2/2) Financial impact of reorganization 2004 New segment reporting Step 1 UB PC / AM UB CIB Retail Asset Management Corporate Customers and Institutions Securities Group Treasury Mortgage Others & Consolidation I Operating profit ( m) *) Average equity KWG ( m) 1, ,734 1, Operating RoE (%) Cost/income ratio (%) UB PC / AM UB CIB Private and Business Clients Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Group Treasury Mortgage II Operating profit ( m) Average equity KWG ( m) 1, ,523 1,337 2, Operating RoE (%) Cost/income ratio (%) , *) Includes IFRSchanges

14 Chart 13 Allocation of Others & Consolidation (1/2) Allocation of income and cost New segment reporting Step 2 UB PC / AM UB CIB Private and Business Customers Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Group Treasury Mortgage II Funding costs for and proceeds from participations managed by segments, e.g. comdirect Reimbursement of employees bank charges Reversal of provisions Personnel expense Facility management costs Previously not allocated overhead costs Funding costs for and proceeds from group holdings Facility management, e.g. idle office space Group cost, e.g. for Boards, AGM Consolidation UB PC / AM UB CIB Private and Business Customers Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Group Treasury Mortgage III

15 Chart 14 Allocation of Others & Consolidation (2/2) Financial impact New segment reporting Step 2 UB PC / AM UB CIB Private and Business Customers Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Group Treasury Mortgage II Operating profit ( m) Average equity KWG ( m) 1, ,523 1,337 2, Operating RoE (%) Cost/income ratio (%) , UB PC / AM UB CIB Private and Business Customers Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Group Treasury Mortgage III Operating profit ( m) Average equity BIZ ( m) 1, ,614 1,334 2, , Operating RoE (%) Cost/income ratio (%)

16 Chart 15 New segment reporting Allocation of Group Treasury to other segments (1/2) Reallocation of income and cost Step 3 UB PC / AM UB CIB Private and Business Customers Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Group Treasury Mortgage III Allocation of costs for ALM according to assets provided by segments Allocation of nonvolatible portion of trading results and associated costs according to assets provided by segments Allocation of remaining volatile portion of trading results UB PC / AM UB CIB Group Investments & Others Private and Business Customers Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Mortgage IV

17 Chart 16 New segment reporting Allocation of Group Treasury to other segments (2/2) Financial impact Step 3 UB PC / AM UB CIB Private and Business Customers Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Group Treasury Mortgage III Operating profit ( m) Average equity BIZ ( m) 1, ,614 1,334 2, , Operating RoE (%) Cost/income ratio (%) UB PC / AM UB CIB Group Investments & Others Private and Business Customers Asset Management Others & Consolidation Mittelstandsbank International Corporate Corporates & Markets Mortgage IV Operating profit ( m) Average equity BIZ ( m) 1, ,663 1,337 2,022 1, Operating RoE (%) Cost/income ratio (%)

18 Chart New segment reporting 17 New group structure 2005 after allocation of Group Treasury and Others & Consolidation Detailed financials 2004 Step 1 Step 2 Step [ m] Private and Business Customers Asset Management Mittelstandsbank International Corporate Corporates & Markets Mortgage Others & Consolidation Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio Other operating result Total Income Operating expenses Operating profit Regular amortization of goodwill Restructuring expenses Pretax profit Total Average equity tied up (BIZ) Operative return on equity (%) 17,1% 31,7% 4,9% 23,3% 3,7% 13,9%. 9,9% Cost/income ratio in operating business (%) 75,6% 68,9% 59,3% 43,6% 105,1% 19,1%. 70,9% Return on equity of pretax profit (%) 17,1% 21,1% 4,5% 23,3% 10,2% 13,1%. 7,8%

19 Chart 18 Agenda Corinna Linner IAS / IFRS Changes Dr. Thorsten Broecker New segment reporting Dr. Eric Strutz Q results

20 Chart 19 Good start into 2005 Q1 04 Q * Target 2005 Revenues ( bn) further up Loan loss provisions ( m) < 800 Operating expenses ( bn) Operating profit ( m) ,011 Operating RoE (%)** Net profit ( m) RoE (after tax, %)** Cost/income ratio in operating business (%) Earnings per share ( ) up up >750 > 8 < 69 substantially up * restated ** annualized

21 Chart 20 Net interest income stable in m 806 Profit contribution Eurohypo Treasury below last year s level Negative impact of US$ exchangerate ( 4m) Q1 Q2 Q3 Q4 Q Average interest margin in balancesheet business ( 108bn) stable at 2.67% (Q1 2004: 2.70%)

22 Chart 21 High quality of Commerzbank s loan portfolio Loanloss provisions in m < * * expected Loanloss cover ratio comfortable in m Loanloss provisions Country LLP and general provision Collateral Nonperforming loans In excess: 1,215m ,509 In excess: 7,459 1,066m 119.3% 116.7% Loanloss provisions in m Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05

23 Chart 22 Good yearago commission income almost repeated in m Payment transactions up 6% Syndicated business up 21% Guarantees up 12% 526 Q1 Q2 Q3 Q4 Q1 Securities transactions down 14% Asset Management fees down 4% Fewer client orders at comdirect Switch to lowermargin certificates products No oneoff in our noneuropean asset management units

24 Chart 23 Strong trading profit in Q in m Improved revenue mix after closedown of former lossmaking activities significant VaRreduction Q1 Q2 Q3 Q4 Q Mortgage banking: negative impact ( 35m) was offset by high net results in AfS ( 36m) Seasonal factors have to be anticipated Back on track Net result on fair value options Trading Net result on measurement of derivatives

25 Chart 24 Operating expenses under control in m 32,349 32,706 33,206 32,820 32,647 Other expenses and depreciation on fixed assets declining 1,112 1, , , , Proactive reduction of the actuarial loss implemented on a voluntary basis Personnel costs up (+5.3% yoy) mainly driven by nonwage costs Q1 Q2 Q3 Q4 Q Continued tight cost management in 2005 Personnel expenses Depreciation on fixed assets Other expenses Staff

26 Chart 25 Stabilization of riskweighted assets and Tier 1 ratio Riskweighted assets in bn Tier I capital ratio (in %)* Change in regulatory consolidation requirement of fund management companies (KAGs). Impact in Q1 2005: 22bp Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar * incl. market risk position, hybrid capital = 0

27 Chart 26 Revaluation reserves maintained at a high level Revaluation reserve in m Change in LongTermRating since January ,600 1,430 S&P Moodys Fitch 1,253 1,035 1,213 A stable A2 stable A positive Current rating A negative A2 stable Astable 03/04 06/04 09/04 12/04 * 03/05 * restated equities bonds

28 Chart 27 Commerzbank with a clear strategic profile Commerzbank Private & Business Customers PCAM Asset Management Mittelstandsbank CIB International Corporate Corporates & Markets #3 German Retail Bank 5m customers #1 in Online #2 in Private #5 German Asset Manager Quality leader in UK and France #2 Mittelstandsbank 16% market share in Germany s global trade 40% (S)MEs run an account with CB Top 10 player in CEE #2 German Financial Institution Group Partner for 6,000 financial institutions Successful niche strategy in USA #3 Distributor of structured products (in Germany and France) #3 in LBO Finance RoE 1 : 14.7% RoE: 27.8% RoE: 9.2% RoE: 9.9% RoE: 21.6% CIR: 78.5% CIR: 72.0% CIR: 56.1% CIR: 55.4% CIR: 68.0% 1 operating RoE Source: Q figures

29 Chart 28 Core activities in different stages of development Operating profit, in m Private & Business Customers Asset Management Mittelstandsbank International Corporate Corporates & Markets Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q Flat profit likely in Selective investments for sustainable growth Shifting into highermargin products Profitability programme in implementation Successful niche strategy Return to profit

30 Chart 29 Private & Business Customers: Flat profit likely in 2005, selective investments for sustainable growth m m Q * Q Change Comments on Q results Net interest income Loan loss provision Interest after prov. Commission income Result on hedge acc. Trading profit Net result on AfS Other operating result Total income % +18% 7% 3% +/0% 6% 0.6bn decline in total lending combined with an almost stable margin level has primarily led to a reduction of net interest income. Liabilities margin narrowed by 25bp, caused by initiative to gain new customers. Commerzbank AG s commission income remained stable. Reduction is merely linked to a 9m drop in commission income at comdirect. Cost increases due to the complete integration of SchmidtBank have been compensated by further efficiency improvements. At a level of nearly 15%, operating RoE on regulatory capital still exceeds current cost of capital. Operating expenses Operating profit Ø equity (in m) 1,866 1,882 operating RoE** 21.2% 14.7% CIR 75.4% 78.5% 1% 30% Measures in 2005 Progressive implementation of our private banking and business customer strategies Concentration on highmargin products Comdirect s growth programme (comvalue) Equity allocation within Commerzbank Group 18.6% Efficiency gains via rollout of new branch format * restated ** annualized

31 Chart 30 Asset Management: Shifting into highermargin products m m Q1 2004* Q Change Comments on Q results Net interest income Loan loss provision Interest after prov. Commission income Result on hedge acc. Trading profit Net result on AfS Other operating result Total income Operating expenses Operating profit Ø equity (in m) operating RoE** 36.8% 27.8% CIR 64.4% 72.0% Equity allocation within Commerzbank Group % +/0% +/0% 11% 1% 30% 5.3% Decline in commission income due to high oneoffs of 7m in Asian markets in Q Other operating result in Q benefited from payment of 10m from sale of Montgomery. Compared with Q4 2004, capital allocation expanded due to additional regulatory consolidation requirements. Pretax RoE** increased to 27.8%, supported by end of regular goodwill amortization. Measures in 2005 Efficiency increase in our German asset management units by shifting to highermargin products Ongoing product mix shift from lowmargin moneymarket assets to specialized equity funds * restated * restated ** annualized

32 Chart 31 Mittelstandsbank: Positive earnings trend in Germany as well as in CEE m m Q1 2004* Q Change Comments on Q results Net interest income Loan loss provision Interest after prov. Commission income Result on hedge acc. Trading profit Net result on AfS Other operating result Total income Operating expenses Operating profit Ø equity (in m) 2,646 2,945 operating RoE** 2.7% 9.2% CIR 58.0% 56.1% Equity allocation within Commerzbank Group % 22% +37% +19% >100% 67% 80% +22% +2% >100% 29.2% Firsttime consolidation of a BRE Bank subsidiaries lifted interest income Rise in commission income partly supplied by leasing revenues (previously booked under Other operating result) Lower overall provisioning need for fiscal year possible BRE Bank s trading profit back to normal level in Q Compared with Q4 2004, capital allocation expanded due to additional regulatory consolidation requirements (BRE subsidiaries) Measures in 2005 Sales force controlling and more precise sales targets lead to higher revenues and greater efficiency Continuing to build upon our strengths in German trade and derivatives business * restated ** annualized

33 Chart 32 International Corporate : Successful niche strategy m m Q1 2004* Q Change Comments on Q results Net interest income Loan loss provision Interest after prov. Commission income Result on hedge acc % 47% +/0% +3% Decline in net interest income and net result on AfS mainly caused by lower treasury contribution of foreign units After a positive provisioning balance in 2004, the partial budget for 2005 of 19m was booked in Q1 Focus on investment grade loans Trading profit % Net result on AfS % Other operating result 3 Total income % Operating expenses Operating profit % 31% Measures in 2005 Ø equity (in m) 1,363 1,251 operating RoE** 13.2% 9.9% CIR 42.6% 55.4% Concentration on valuecreating structured lending products and trade finance Weeding out lowmargin products Improving efficiency in Western Europe Equity allocation within Commerzbank Group 12.4% * restated ** annualized

34 Chart 33 Corporates & Markets: Repositioning in securities business showing effect m m Q1 2004* Q Change Comments on Q results Net interest income % Return to profit in Q Loan loss provision 7 7 +/0% Margins for largevolume loans have hit their lows. Interest after prov. Commission income % 39% After losses in FY 2004, operating RoE recovered to reach over 21% Result on hedge acc. Trading profit % Net result on AfS 5 1 Other operating result 2 Total income % Operating expenses Operating profit Ø equity (in m) 1,957 1,832 operating RoE** 30.5% 21.6% CIR 62.6% 68.0% 14% 34% Measures in 2005 Reductions in frontoffice staff are virtually completed. In strategic growth areas, we even plan fresh recruitments. Former lossmaking areas such as global prop trading and convertible bonds have been terminated. Equity allocation within Commerzbank Group 18.1% Equity allocation to lowmargin business to be reduced further. * restated ** annualized

35 Chart 34 Mortgage : Positive contribution from Eurohypo m m Q1 2004* Q Change Comments on Q results Net interest income Loan loss provision Interest after prov. Commission income Result on hedge acc. Trading profit Net result on AfS Other operating result Total income Operating expenses Operating profit Ø equity (in m) 1, operating RoE* 14.6% 27.9% CIR 15.7% 11.5% Equity allocation within Commerzbank Group % +60% +63% +/0% 72% 25% +82% 9.8% Operating profit in m Q1 Q2 Q3 Q4 Q1 Interest income 30m higher yearonyear thanks to full quarterly profit contribution from Eurohypo. Negative impact from trading profit was offset by AfS result => Hypo in Essen is not a trading book bank Further positive earnings performance at Hypothekenbank in Essen. Measures in 2005 Marked improvement in results expected, thanks to stable, posttax profit contributions in all four quarters from Eurohypo. * restated ** annualized

36 Chart 35 Others & Consolidation: Strong AfS result in Q1 m m Q1 2004* Q Change Comments on Q results Net interest income 7 46 Loan loss provision Interest after prov Commission income 1 Result on hedge acc. 3 2 Trading profit 8 15 Net result on AfS Other operating result 34 6 Total income Operating expenses Operating profit Ø equity (in m) operating RoE** CIR Operating profit in m Q1 Q2 Q3 Q4 Q1 Drop in interest income largely reflects lower treasury result. Net result on investments and securities portfolio was strongly affected by: MAN Unibanco Treasury Measures in 2005 Constantly considering disposals of nonstrategic investments Increasing overall transparency through new structure of segment reporting Equity allocation within Commerzbank Group 6.6% * restated ** annualized

37 Chart 36 Commerzbank s specific strength basis to build upon Leading market position in Germany s Mittelstand Private Client Business Management team Turnaround experience Complementary capabilities Financial strength Wellcapitalized balance sheet Strong Tier 1 ratio Loan portfolio quality

38 Chart 37 Three main challenges for 2005 Focus Value drivers 1. Enhancement of profitability in Mittelstandsbank Germany: revenues, costs and LLPs BRE Bank: turnaround and growth opportunities 2. Positioning of Corporates & Markets Improving profit in Markets division Focusing on regions and products with competitive strengths sustainable value proposition for our customers Increasing capital efficiency 3. Tight cost management Revenuerelated expense strategy

39 Chart 38 Commerzbank s core objectives 1. Becoming the best German Retail Bank 2. Developing into the best bank for Germany s Mittelstand 3. Building on Top 10 position in CEE 4. Becoming quality leader in products supplied to distribution platform

40 Chart 39 Commerzbank aims to achieve European RoE standards Return on equity (aftertax) targets 2004* 4.3% % (current cost of capital) 2006 > 10% (longterm cost of capital) Major step towards our current cost of capital * restated

41 Chart 40 Appendix IAS/IFRS Changes New segment reporting

42 Chart 41 Commerzbank Group P&L as of December 31, 2004 in m restatement impact original p&l IAS 39 IAS 39 IFRS 2 (Claims) (Fair value restated p&l line option) 1 Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio (afs) Other operating result Personnel expenses Other expenses incl. current depreciation on fixed assets and other intangible assets Operating expenses Operating profit Regular amortization of goodwill Profit from ordinary activities before restructuring expenses Restructuring expenses Pretax profit Taxes on income Aftertax profit Profit/loss attributable to minority interests Net profit total impact on p&l as of m 31

43 Chart 42 Commerzbank Group P&L as of March 31, 2004 in m restatement impact original p&l IAS 39 IAS 39 IFRS 2 (Claims) (Fair value restated p&l line option) 1 Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio (afs) Other operating result Personnel expenses Other expenses incl. current depreciation on fixed assets and other intangible assets Operating expenses Operating profit Regular amortization of goodwill Profit from ordinary activities before restructuring expenses Restructuring expenses 16 Pretax profit Taxes on income Aftertax profit Profit/loss attributable to minority interests Net profit total impact on p&l as of 1st quarter 2004 m 8

44 Chart 43 Commerzbank Group balance sheet as of December 31, 2004 in m restatement impact up to and incl m IAS 39 IAS 39 IFRS 2 (Claims) (Fair value total option) capital reserve 1 1 retained earnings revaluation reserve 4 4 IAS 39 IAS 39 IFRS 2 restatement impact m (Claims) (Fair value total option) capital reserve 5 5 retained earnings revaluation reserve 1 1 IAS 39 IAS 39 IFRS 2 (Claims) (Fair value total line total restatement impact as of m option) A capital reserve 6 6 B retained earnings C revaluation reserve 3 3 total impact as of

45 Chart 44 Appendix IAS/IFRS Changes New segment reporting

46 Chart 45 Private and Business Customers Development of 2004 quarterly results [ m] Q1 / 2004 Q2 / 2004 Q3 / 2004 Q4 / 2004 Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio Other operating result Total income Operating expenses Operating profit Regular amortization of goodwill Restructuring expenses Expenses arising from special factors Pretax profit Average equity Operative return on equity (%) 21,2% 17,2% 15,3% 14,6% Cost/income ratio (%) 75,4% 77,0% 75,6% 74,3%

47 Chart 46 Asset Management Development of 2004 quarterly results [ m] Q1 / 2004 Q2 / 2004 Q3 / 2004 Q4 / 2004 Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio Other operating result Total income Operating expenses Operating profit Regular amortization of goodwill Restructuring expenses Expenses arising from special factors Pretax profit Average equity Operative return on equity (%) 36,8% 32,6% 25,9% 31,3% Cost/income ratio (%) 64,4% 67,1% 73,9% 70,4%

48 Chart 47 Mittelstandsbank Development of 2004 quarterly results [ m] Q1 / 2004 Q2 / 2004 Q3 / 2004 Q4 / 2004 Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio Other operating result Total income Operating expenses Operating profit Regular amortization of goodwill Restructuring expenses Expenses arising from special factors Pretax profit Average equity Operative return on equity (%) 2,7% 5,9% 7,5% 3,5% Cost/income ratio (%) 58,0% 55,7% 52,6% 70,6%

49 Chart 48 International Corporate Development of 2004 quarterly results [ m] Q1 / 2004 Q2 / 2004 Q3 / 2004 Q4 / 2004 Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio Other operating result Total income Operating expenses Operating profit Regular amortization of goodwill Restructuring expenses Expenses arising from special factors Pretax profit Average equity Operative return on equity (%) 13,2% 24,0% 20,3% 36,3% Cost/income ratio (%) 42,6% 39,0% 47,5% 46,4%

50 Chart 49 Corporates & Markets Development of 2004 quarterly results [ m] Q1 / 2004 Q2 / 2004 Q3 / 2004 Q4 / 2004 Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio Other operating result Total income Operating expenses Operating profit Regular amortization of goodwill Restructuring expenses Expenses arising from special factors Pretax profit Average equity Operative return on equity (%) 30,5% 7,3% 28,4% 7,9% Cost/income ratio (%) 62,6% 113,8% 282,9% 112,2%

51 Chart 50 Mortgage Development of 2004 quarterly results [ m] Q1 / 2004 Q2 / 2004 Q3 / 2004 Q4 / 2004 Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio Other operating result Total income Operating expenses Operating profit Regular amortization of goodwill Restructuring expenses Expenses arising from special factors Pretax profit Average equity Operative return on equity (%) 14,6% 11,6% 10,1% 19,1% Cost/income ratio (%) 15,7% 20,9% 23,1% 18,6%

52 Chart 51 Others & Consolidation Development of 2004 quarterly results [ m] Q1 / 2004 Q2 / 2004 Q3 / 2004 Q4 / 2004 Net interest income Provision for possible loan losses Net interest income after provisioning Net commission income Net result on hedge accounting Trading profit Net result on investments and securities portfolio Other operating result Total income Operating expenses Operating profit Regular amortization of goodwill Restructuring expenses Expenses arising from special factors Pretax profit Average equity Operative return on equity (%) Cost/income ratio (%)

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

54 Chart 53 Chart 18 /investor relations/ This presentation has been prepared and issued by Commerzbank AG. This publication is intended for professional and institutional customers. / Any information in this presentation is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by Commerzbank Group with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgement at this date and time, and are subject to change without notice. This presentation is for information purposes, it is not intended to be and should not be construed as an offer or solicitation to acquire, or dispose of any of the securities or issues mentioned in this presentation. / Commerzbank AG and/or its subsidiaries and/or affiliates (herein described as Commerzbank Group) may use the information in this presentation prior to its publication to its customers. Commerzbank Group or its employees may also own or build positions or trade in any such securities, issues, and derivatives thereon and may also sell them whenever considered appropriate. Commerzbank Group may also provide banking or other advisory services to interested parties. / Commerzbank Group accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation. / Copies of this document are available upon request or can be downloaded from