Commerzbank Conference Call Q results

Transcription

1 Commerzbank Conference Call Q results August 8, 2002 Dr. Thomas Naumann, Head of Accounting and Taxes Ulrich Ramm, Head of Corporate Communications Jürgen Ackermann, Head of Investor Relations

2 1 Commerzbank: Key messages for 1st half 2002 Earnings 2,884m euros -17% (Decline mainly due to difficult market conditions) Operating expenses 2,706m euros -7% (Decreased more than planned, and better than analysts forecasts) Pre-tax profit 178m euros and after-tax profit 120m euros positive (In 2nd quarter, further modest positive results achieved, without extraordinaries, but incl. goodwill amortization) Risk-adverse business policy Risk-weighted assets 199.3bn euros (-11.3% y.o.y.) stabilizes equity ratio Core capital ratio (incl. market risk) 5.9% Own funds ratio (incl. market risk) 10.5%

3 2 Commerzbank: Net interest income stable Lower-risk lending policy reduced interest income The rising margin trend in domestic corporatecustomer business gives cause for optimism However, the lower interestrate level reduced income on the liability side Appreciation of the euro reduced interest income Q1 Q2 Q3 Q4 Q1 Q Net interest income before provisioning ( m) Net interest income after provisioning ( m)

4 3 Strong margin increase in domestic corporate business 1.25% 1.20% 1.15% 1.10% 1.05% 1.00% 0.95% 1.23% 1.16% 1.14% 1.07% 1.03% 1.03% 1.05% 1.01% 1.01% 0.99% 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 Gross margin (loans fixed/variable)

5 4 Commerzbank: Borrowing, by rating category Credit rating R 0.0/ 0.5 R 1 R 2 R 3 R 4 R 5 R 6 Total Investment grade Non-investment grade euro bn Private Customers: Domestic Corporates: Foreign Corporates: Domestic /00 06/02 12/00 06/02 12/00 06/02 12/00 06/02 12/00 06/02 12/00 06/02 12/00 06/02

6 5 Commerzbank: Commission income is recovering from its Q4 low Difficult stock-exchange environment is preventing return to early-2001 level in m Parent bank maintained securities commissions at 1st half 2001 level during first six months 482 Q1 Q2 Q3 Q4 Q1 Q

7 6 Commerzbank: Trading profit very volatile Trading in shares and other price risks fell sharply in Q2. Results for interest-rate risks a good third higher in Q2 Forecast for year as a whole only possible with reservations, due to high volatility of trading profit in m Q1 Q2 Q3 Q4 Q1 Q

8 7 Commerzbank: Net result on investments and securities portfolio Q2 result slightly below average for the last five quarters Commerzbank did not sell any major shareholdings in Q2 in m Q1 Q2 Q3 Q4 Q1 Q

9 8 Commerzbank: Cost-cutting programme making successful progress Progress to date indicate that the overall outcome may be even better than the target of 5.5bn Workforce of 40,400 (Sept. 2000) reduced to 38,017 (end- June 2002). Further reductions are being made in m 1,430 1,479 1,459 1,487 1,398 1,308 Q1 Q2 Q3 Q4 Q1 Q

10 9 Commerzbank: earnings performance (in m) Q Q H H Pre-tax profit Taxes After-tax profit Profit attributable to minority shareholders Net profit Earnings per share ( )

11 10 Commerzbank: Retail Banking Return on equity (in %) Cost/income ratio (in %) Income, total Operating expenses Profit from ordinary activities S Reduction in operating expenses more than compensated for lower operating earnings: cost/income ratio significantly improved S comdirect s concentration on Germany should lead to a positive development

12 11 Commerzbank: Asset Management Return on equity (in %) Cost/income ratio (in %) Income, total Operating expenses Profit from ordinary activities S Asset management division in a turnaround situation S The strategic realignment (termination of foreign activities) will lead to higher profitability

13 12 Commerzbank: Corporate Banking and Institutions Return on equity (in %) Cost/income ratio (in %) S 46% of the Group s equity is tied up in this sector Income, total Operating expenses Profit from ordinary activities S The systematic reduction of operating expenses is contributing to the positive earnings trend

14 13 Commerzbank: Securities Return on equity (in %) Cost/income ratio (in %) Income, total Operating expenses Profit from ordinary activities S Earnings targets were missed in the first half of this year S Increase of Q2 operating expenses was caused by higher cost allocation from head office

15 14 Commerzbank: Treasury Return on equity (in %) Cost/income ratio (in %) S Lower interest rate level weakened performance in Q2: nevertheless still high ROE ratio Income, total Operating expenses Profit from ordinary activities

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