/ commerzbank figures, facts, targets /

Transcription

1 / commerzbank figures, facts, targets / INVESTOR RELATIONS 1st QUARTER 2008 / Commerzbank Group worldwide well positioned in CEE / Number of offices as of March 31, 2008 Others: 45 BRE Bank SA: 265 Poland Bank Forum: 303 Ukraine Σ 1,517 offices Commerzbank: 841 thereof - Subsidiaries: Commerzbank (Eurasija) SAO, Russia Commerzbank Zrt., Hungary - Foreign branches: Czech Republic, Slovakia comdirect bank: 28 Eurohypo: 35 thereof - Representative offices: Azerbaijan, Belarus, Croatia, Kazakhstan, Romania, Russia, Serbia, Turkey, Ukraine, Uzbekistan Representative offices: Czech Republic, Hungary, Poland, Romania, Russia, Turkey

2 Commerzbank AG Group Communications D Frankfurt am Main Investor Relations Jürgen Ackermann Wennemar von Bodelschwingh Sandra Büschken Ute Heiserer-Jäckel Simone Nuxoll Stefan Philippi Karsten Swoboda 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 May 6, 2008

3 / commerzbank figures, facts, targets / Content Key data of first quarter 2008 Profit per quarter 2 Underlying business strong but affected by financial crisis Commerzbank with focus on Germany and selected regions 3 Group Structure Domestic and international rankings 4 Commerzbank Group s income statement Net interest income 5 Provision for possible loan losses by segment Provision for possible loan losses 6 Breakdown of net commission income Trading profit 7 Operating expenses Personnel expenses 8 Profitability ratios Key figures per Commerzbank share 9 Development of business volumes Claims on customers 10 Exposure at Default (EaD) Revaluation reserve 11 Breakdown of assets Breakdown of liabilities 12 Risk-weighted assets vs. Tier I capital ratio and own funds ratio Group equity definitions 13 Breakdown of results by segment Value drivers 14 Strong underlying business in our core divisions Equity allocation 15 Private & Business Customers 16 Mittelstand 17 Central & Eastern Europe 18 Corporates & Markets 19 Commercial Real Estate 20 Public Finance & Treasury 21 Growing stable client business; derisking particular business areas Best Mittelstandsbank in Germany 22 Main takeaways Financial target on track 23 Equity and market capitalization Commerzbank s shareholders 24 Performance of the Commerzbank share Trading volume of the Commerzbank share 25 cominvest: Assets under Mangement Personnel data 26 Financial calendar All figures if not stated otherwise according to IAS/IFRS

4 Key data of first quarter ) Q Q Comments Operating profit ( m) 2,649 2, Strong underlying level Cost/income ratio (%) Affected by impairments Operating RoE (%) 2) Burdened by subprime-crisis RoE of consol. surplus (%) 2) 3) On satisfactory level Core capital ratio (%) 4) In upper target range EPS ( ) Improved compared to Q Dividend (per share in ) Dynamic dividend growth Core financial figures reflect strong underlying business 1) restated; 2) annualized; 3) attributable to CBK s shareholders; 4) adjusted to Basel II Profit per quarter Commerzbank Group, in m Operating profit Consolidated surplus 652 1) 1, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q ) ) attributable to CBK s shareholders; 2) restated

5 Commerzbank: Underlying business strong but affected by financial crisis Net Profit in m Net RoE 1) in % Q Q Q Q ) annualized; attributable to CBK s shareholders CIR in % EPS in Q Q Q Q Commerzbank with focus on Germany and selected regions Focus Germany Revenues after provisioning in % 25 Claims on customers in % Operating profit in % Abroad Germany Employees in % 25 Year end 2007 CB Group 75 Focused international business Accompanying German corporates in their international business Seizing profitable growth opportunities in selected regions, i.e. CEE, via rollout of distinctive product lines and successful distribution platform - 3 -

6 Group structure as of April 2008 COO: Annuscheit Commerzbank CEO: Müller CRO: Hartmann CFO: Strutz Private and Business Customers Mittelstand Central & Eastern Europe Corporates & Markets Commercial Real Estate Public Finance & Treasury Private Banking Private and Business Customers Retail Credit comdirect bank AG German Asset Management 1) Corporate Banking Financial Institutions Asia Scandinavia BRE Bank SA Bank Forum CBK Zrt. Budapest CBK (Eurasija) SAO, Moscow Prague Branch Bratislava Branch CEE Participations Corporates & Markets Western Europe North- and Latin America Africa Commercial Real Estate Commerz Real AG Group Treasury Public Finance Kassow Beumer Blessing Teller Knobloch Reuther 1) International Asset Management included in segment Others and Consolidation Commerzbank and Eurohypo: Domestic and international rankings Germany No. 2 German bank by total assets No. 1 Commercial real estate bank No. 2 Public sector financing No. 1 Online brokerage No. 1 Open end real estate fund No. 1 Equity derivatives No. 2 Mittelstandbank No. 2 Residential real estate financing No. 3 Retail bank with more than 5.6 m customers International No. 1 Pfandbrief issuer No. 1 for covered bonds in the European market No. 1 Bookrunner of real estate loans in the European market No. 4 Bookrunner of real estate loans in the Global market No. 9 Bookrunner of real estate loans in the US market Strong market position in CEE, i.e. Poland (BRE among top 5) and Ukraine (Bank Forum among top 10) - 4 -

7 Commerzbank Group s income statement Change in m in m in m in % Net interest income 1,022 1, Provisions for possible loan losses Net interest income after provisioning Net commission income Trading profit Net investment income Other result Total income 1,757 2, Operating expenses 1,322 1, Operating profit Restructuring expenses Pre-tax profit Taxes on income After-tax profit Profit/loss attributable to minority interests Consolidated surplus Net interest income Commerzbank Group, in m 3,937 4,020 3,541 3,167 3,059 2,646 Net interest income before provisioning Provision for possible loan losses Net interest income after provisioning % 1, % % ) including one-off provisions of 293m, 2) restated 1) 2) 2) 1,

8 Provision for possible loan losses, by segment Commerzbank Group, in m Public Finance & Treasury Commercial Real Estate Corporates & Markets Central & Eastern Europe Mittelstand Private and Business Customers ) ) ) since Q2 including Eurohypo; 2) 5m booked in Others and Consolidation Commerzbank Group s provision for possible loan losses Value adjustments and loan losses , in % provisioning ratio 1) 2) write-off ratio 1) Net provision for risks as percentage of total lending; 2) Write-offs as a percentage of total lending - 6 -

9 Breakdown of net commission income Commerzbank Group, in m Securities business 847 Asset Management 732 Foreign commercial business and payments transactions Real-estate business Guarantees Income from syndicated business Trust transactions Other commissions ) generated abroad 28.6% 16.6% 1) impacted by deconsolidation of Jupiter/CCR Trading profit Commerzbank Group, in m , Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1) ) restated - 7 -

10 Operating expenses Commerzbank Group, in m 4,662 5,204 5,366 1,322 3,128 3,082 2,667 1,968 1,560 1,741 Personnel expenses -7.2% Other expenses Depreciation on fixed and intangible assets % % Personnel expenses 35,662 36,123 35,975 35,891 35,384 36,448 36,767 36,746 33,153 3,128 3, Q1 Q21) Q3 Q4 Q1 Q2 Q3 Q4 Q staff (end-quarter figures) personnel expenses in m 1) since Q2 including Eurohypo - 8 -

11 Profitability ratios in % Cost/income ratio in operating business ) Operating return on equity 1) restated; 2) annualized 1) Key figures per Commerzbank share in ) 1) ) Earnings per share Operating Result 3) Dividend 1) restated; 2) incl. restructuring expenses; 3) excluding tax credit Earnings per share Operating Result per share Number of shares issued in m Average number of shares outstanding in m - 9 -

12 Development of business volumes Commerzbank Group, in bn Balance-sheet total Risk-weighted assets Claims on customers 1) restated 1) 1) Claims on customers Commerzbank Group in bn Corporate and retail customers Foreign 24.3% 25.6% 29.3% Public authorities 2.4% 4.5% 4.3% Corporate customers 28.6% 23.9% 25.4% Retail customers Domestic 25.4% 25.1% 23.3% Public authorities 19.3% 20.9% 17.7%

13 Exposure at Default (EaD) as of , in % Private and Business Customers Mittelstand, CEE, Corporates & Markets 77.7 Commercial Real Estate, Public Finance and Treasury R0 R1 R2 R3 R4 R5 Rating (Exposure) as of June 30, 2007, in % R0 R1 R2 R3 R4 R5 PBC Mittelstand, CEE, C&M CRE, PF&T Revaluation reserve in bn Major participations of Commerzbank as of : %: Linde* 1-5%: Generali Hochtief* Mediobanca* ThyssenKrupp* *indirectly

14 Breakdown of assets Commerzbank Group, in m Balance-sheet total Liquid funds 5,157 74, ,474 7,321 60, ,116 Claims on banks (after provisioning) 283, ,424 Claims on customers (after provisioning) Assets held for dealing purposes/financial investments 229, ,764 Other assets 24,014 21, Breakdown of liabilities Commerzbank Group, in m Balance-sheet total 616, ,116 Liabilities to banks Liabilities to other creditors 125, , , ,024 Securitized liabilities Own funds Other liabilities 205,649 30,592 95, ,364 29, ,

15 Risk-weighted assets vs. Tier I capital ratio and own funds ratio in bn Basel I Basel II Risk-weighted assets Tier I ratio (%) Own funds ratio (%) Group equity definitions Reconciliation of equity definitions Equity basis for RoE Equity definitions in m Mar 2008 Subscribed capital 1,708 Capital reserve 5,709 Retained earnings 5,969 Reserve from currency translation -30 Investors capital excluding minorities 13,356 Minority interests (IFRS)* 1,268 Investors Capital 14,624 Jan-Mar ,708 5,709 6, ,403 1,074 14,477 Basis for RoE on net profit Basis for operating RoE and pre-tax RoE Change in consolidated companies; goodwill; consolidated net profit minus portion of dividend; others -1,792 BIS core capital excluding hybrid capital 12,832 Hybrid capital 3,030 BIS Tier I capital 15,862 * excluding: Revaluation reserve Cash flow hedges Consolidated profit

16 Breakdown of results by segment Commerzbank Group, , in m Private and Business Customers Mittelstand Central & Eastern Europe Corporates & Markets Commercial Real Estate Public Finance & Treasury Others/ Consolidation Total Net interest income ,022 Provisions for possible loan losses Net interest income after provisioning Net commission income Trading profit Net investment income Other result Total income ,757 Operating expenses ,322 Operating profit Restructuring expenses Pre-tax profit Value drivers Commerzbank Group, Private and Business Customers Mittelstand Central & Eastern Europe Corporates & Markets Commercial Real Estate Public Finance & Treasury Others/ Consolidation Total Average equity tied-up ( m) 1,574 2,685 1,357 2,317 3,488 1,166 1,890 14,477 Operative return 1) on equity (%) Cost/income ratio in operating business (%) Return on equity of 1) pre-tax profit (%) staff (average number) 11,838 4,344 6,128 1,905 1, ,153 35,352 1) annualized

17 Strong underlying business in our core divisions Operating profit in m Private & Business Customers Mittelstand Central & Eastern Europe Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q ) 2008 special effect Mittelstand 1) adjusted to new segments Corporates & Markets Commercial Real Estate Q1 Q2 Q3 Q4 Q Public Finance & Treasury Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1-50 Q1 Q2 Q3 Q4 Q Equity allocation within Commerzbank Group Average, % 11% Private and Business Customers 1,574m 8% 24% 14,477 m 16% 19% 9% Mittelstand 2,685m Central & Eastern Europe 1,357m Corporates & Markets 2,317m Commercial Real Estate 3,488m Public Finance & Treasury 1,166m Others and Consolidation 1,890m

18 Private & Business Customers (including German Asset Management) 1. Commerzbank s Strategic Position One of the leading retail banks in Germany with more than 5.6 million customers: - No. 1 for Business Customers - Among Top 3 in Private Banking - No. 1 in Online Banking and Online Brokerage - No. 1 in Retail Credit - No. 5 in Asset Management 2. Profitability Drivers Focused investments in branch network, comdirect and cominvest Ongoing efficiency programs for Branch of the Future, Retail Credit Administration, IT and Back Office (Service to Perform) Increased profitability of the loan book by higher quality of new business and risk-return oriented credit portfolio management 3. Strategic Goals Achieve organic growth in revenues, customers and assets under management Extend earnings momentum, contain cost increase by running efficiency programs, reduce risk costs and focused investment for growth Increased profitability is reflected in a medium term operating RoE-target (Basel II) of > 37% by 2010 Private & Business Customers on par with record level of Q Operating profit in m Q1 Q2 Q3 Q4 Q Main P&L items in m Q1`07 Q4`07 Q1`08 Net interest income Risk provisioning Commission income Trading profit Net investment income Operating expenses Operating profit Ø Q1 equity allocation within Group *annualized Q1`07 Q1`08 Ø equity ( m) 2,530 1,574 Op. RoE* (%) CIR (%) % NII up by 3% y-o-y due to strong deposit business CI decreased 8% y-o-y because of lower securities business, but above the levels of the past three quarters Flat costs as a result of strict cost management despite ongoing growth programs 100,000 net new customers in Q1 a sign of continuing growth momentum Operating RoE improved to 37% reflecting a focused lending strategy and Basel II

19 Mittelstand 1. Commerzbank s Strategic Position Best Mittelstandsbank in Germany Leading European Bank and entry point into the European payment market 2. Profitability Drivers Product innovation in credit and derivatives business Improved credit and sales processes Optimisation of worldwide responsibilities for standard products 3. Strategic Goals Leverage our leading position in Germany by new financial engineering products and services Expand new business abroad especially in export and trade finance Encourage entrepreneurial spirit among our staff via a new bonus and incentive scheme Excellent start for Mittelstand into 2008 Operating profit in m Q1 Q2 Q3 Q4 Q Main P&L items in m Q1`07 Q4`07 Q1`08 Net interest income Risk provisioning Commission income Trading profit Net investment income Operating expenses Operating profit One-off Ø Q1 equity allocation within Group *annualized Q1`07 Q1`08 Ø equity ( m) 2,198 2,685 Op. RoE* (%) CIR (%) % NII on record high given higher loan and deposit volume, margins q-o-q essentially stable Risk provisions at ongoing low level as German economy is holding up well Commission income maintained on strong level Costs discipline despite growth program ( stay on top ) Ongoing high value contribution of MSB, op. RoE at 35%

20 Central & Eastern Europe 1. Commerzbank s Strategic Position Set up of new segment Central & Eastern Europe - emphasizes the significance of this growing market for CB BRE Bank established as No. 3 of the leading banks in Poland Purchase of 60% plus 1 share of Bank Forum; thereby acquisition of nationwide branch network (first German bank entering Ukrainian market); Integration project started successfully 2. Profitability Drivers BRE Bank with continuous profitable growth Acquisition of new clients by cross border collaboration within CB group 3. Strategic Goals Extend CEE presence in new target markets; organic growth for existing CEE-units while taking into account market risks Successful integration of Bank Forum Extension of product range and expanding on existing common product lines group wide (e.g. mbank, Innobanking) CEE driven by strong and profitable expansion of BRE Operating profit in m Q1 Q2 Q3 Q4 Q One-off Ø Q1 equity allocation within Group *annualized Q1` Q1`08 Ø equity ( m) 769 1,357 Op. RoE* (%) CIR (%) % Main P&L items in m Q1`07 Q4`07 Q1`08 Net interest income Risk provisioning Commission income Trading profit Net investment income Operating expenses Operating profit Quarterly result of Bank Forum not yet included Strong growth path of BRE continued More than new customers gained in Q1 08 NII q-o-q increase mainly driven by higher loan and deposit volumes Commission income grew by 9% thanks to expansion in Retail business Growth dynamic reflected in increased cost base Acquisition of a majority stake in Bank Forum completed Operating RoE of 36% remains on high level

21 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 Strong position in FX business 2. Profitability Drivers Strong and well established retail and corporate customer franchise Stable revenue streams, very limited exposure to directional market risk, no dedicated prop activities Growing business with institutional clients 3. Strategic Goals Build on Commerzbank s strong domestic and European position across all client groups Further improve penetration of institutional customers Focus on regions and products with competitive strengths US business weighs down performance of Corporates & Markets but client driven business except for Credit Trading fully on track Operating profit in m Q1 Q2 Q3 Q4 Q Profits without impairments Main P&L items in m Q1`07 Q4`07 Q1`08 Net interest income Risk provisioning Commission income Trading profit Net investment income Operating expenses Operating profit Ø Q1 equity allocation within Group Q1`07 Q1`08 Ø equity ( m) 2,197 2,317 Op. RoE* (%) CIR (%) % Corporates & Markets well positioned in challenging markets Good trading result mainly driven by strong Interest Rates and FX Trading Credit Trading with a loss of 9m ( 38m y-o-y) Impairments of 160m on the US ABS portfolio and increased loan loss provisions Flat cost base *annualized

22 Commercial Real Estate Commerzbank s Strategic Position Profitability Drivers After completion of Eurohypo acquisition, Commerzbank is - the leading commercial real estate bank in Europe - European market leader for real estate loan syndications and CMBS With Commerz Real, the entity merged in 2007, Commerzbank is one of the globally leading real estate asset managers with more than 30bn real estate assets under management Flexibility of the buy and manage business model as strategic advantage in the actual markets by permitting on-balance business Benefiting from margin increase and less competition Germany: Continuing profitability increase of portfolio by repricing the back book and extensive portfolio management (esp. non core-portfolio) Strong home base in the currently solid German market as starting point for further international expansion in attractive emerging markets Cost improvements through streamlining the Eurohypo organisation 3. Strategic Goals No. 1 partner for commercial real estate globally Providing an integrated value chain with real estate financing and real estate asset management products Satisfactory performance of CRE given lower turnover in real estate markets Operating profit in m Q1 Q2 Q3 Q4 Q Main P&L items in m Q1`07 Q4`07 Q1`08 Net interest income Risk provisioning Commission income Trading profit Net investment income Operating expenses Operating profit Profits without impairments Ø Q1 equity allocation within Group *annualized Q1`07 Q1`08 Ø equity ( m) 4,183 3,488 Op. RoE* (%) CIR (%) % Q1 result influenced by subprime (- 84m) and higher risk provisions in non core Germany portfolio Commission income is benefiting from 2007 new business Slightly improved margins Operating expenses decreased due to lower personnel level and compensation in line with market development Tightened risk standards (i.e. lower LTVs) and lower real estate market turnover led to less new business RoE without subprime impairment was at 16%

23 Public Finance & Treasury 1. Commerzbank s Strategic Position Becoming one of the top 2 public finance players in Europe Leading Pfandbrief issuer in the Euromarket Well positioned in current liquidity situation Potential to generate additional liquidity in case of stress scenarios 2. Profitability Drivers Actively managed high-quality credit portfolio Well diversified Pfandbriefe issuance franchise P&L negatively influenced by significant restructuring charges Funding synergies on track Market value oriented Treasury management Allocation of non volatile Treasury earnings into other business segments 3. Strategic Goals Realign Public Finance business in Commerzbank Group Integrate Essenhyp into Eurohypo and optimise Public Finance business model Further portfolio diversification through international focus Explore cross selling potential within Commerzbank Group Increased focus on PPP and infrastructure projects Finalization of approval process of Group-internal liquidity model to replace current Grundsatz II regulation Performance of PFT suffered from volatile market environment Operating profit in m Q1 Q2 Q3 Q4 Q Main P&L items in m Q1`07 Q4`07 Q1`08 Net interest income Risk provisioning Commission income Trading profit Net investment income Operating expenses Operating profit One-off Ø Q1 equity allocation within Group *annualized Q1`07 Q1`08 Ø equity ( m) 1,171 1,166 Op. RoE* (%) CIR (%) % All business lines of PFT have shown dissatisfactory performance Essenhyp: High negative impact of spread widenings All CDS positions closed ( 70m one-off) Diverse non operating factors weighed down PF Eurohypo Underperformance at Treasury due to volatile market environment and need to provide adequate liquidity

24 Growing stable client business; de-risking particular business areas Op. RoE Q1 07 Q1 08 PBC 22.9% 37.4% Continuing profitable growth Mittelstand 34.4% 34.6% Stay on top CEE 40.1% 36.3% Accelerating growth momentum C&M 31.7% -8.6% De-risking US business and credit trading CRE 15.7% 6.5% Tightened investment guidelines PFT 26.3% -49.4% Significantly downsizing portfolios Best Mittelstandsbank in Germany based on customer survey Savings banks Cooperative banks HypoVereinsbank Savings banks Cooperative banks Commerzbank Commerzbank (2.67) Savings banks (2.88) Dresdner Bank (2.88) Dresdner Bank HypoVereinsbank Cooperative banks (2.93) Commerzbank Deutsche Bank Dresdner Dresdner Bank Bank Deutsche Bank HypoVereinsbank (2.96) Deutsche Bank (3.37) Source: Corporate Survey Bankenrating 2007 conducted by Arbeitsgemeinschaft selbständiger Unternehmer - (ASU) 2007 Commerzbank (2.38) Savings banks (2.60) Cooperative banks (2.68) Deutsche Bank (2.83) Dresdner Bank (3.17) HypoVereinsbank (3.22) Best Global Commercial Bank in Real Estate GERMANY COMMERCIAL BANKING Eurohypo Eurohypo Eurohypo Source: Euromoney GLOBAL COMMERCIAL BANKING Pos Name 1 Eurohypo 2 HSBC 3 SEB 4 Hypo Real Estate 5 Aareal Bank Source: Euromoney Source: Euromoney

25 Main takeaways 1. Solid Q1 performance in challenging environment 2. Strong emphasis on growing the stable client-driven business further 3. Reducing risk in business areas affected by market turmoil 4. Further strict management of risk, capital, liquidity and costs 5. Commerzbank remains on track to achieve 2010 targets Commerzbank: Financial target on track Return on Equity RoE: % % % 2010e Long-term sustainable RoE goal >15% (reaching international standards) Set targets > 8 > 10 >

26 Equity and market capitalization Commerzbank Group, in bn Equity 1) Market capitalization 1) as shown in balance-sheet; 2) restated 2) 2) Commerzbank s shareholders as of Institutional Investors 76.9%* Generali 8.6% Private Investors 14.5% *) of which 9% domestic

27 Performance of the Commerzbank share Month-end figures, January 2005 = * Commerzbank share price DJ Euro Stoxx Banks CDAX (Banks) *) until April 30, 2008 Trading volume of the Commerzbank share in bn On , the Commerzbank share had an index weighting of 1.85% in the DAX index and 2.0% in the DJ Euro Stoxx Banks. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q

28 cominvest: Assets under management in bn Personnel data Commerzbank Group Employees 33,056 35,975 36,767 36,746 - in Germany 25,304 27,250 27,646 27,519 - abroad 7,752 8,725 9,121 9,227 Headoffice 1) 12,528 12,380 12,693 12,386 Branches 12,121 11,947 12,110 12,203 Subsidiaries 8,407 11,648 11,964 12,157 1) including back offices

29 Financial calendar 2008 May 7, 2008 May 15, 2008 May 16, 2008 Q Interim Report Annual General Meeting Dividend payment August 6, ) September 24, ) Q Interim Report Investors Day November 5, ) Q Interim Report 1) provisional dates notes

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31 / 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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