commerzbank figures, facts, targets INVESTOR relations 1 st quarter 2003 commerzbank s cost-cutting success staff (end-quarter figures)

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1 commerzbank figures, facts, targets INVESTOR relations 1 st quarter 2003 commerzbank s cost-cutting success staff (end-quarter figures) Operating expenses in euro m 39,481 38,665 1,487 38,017 37,176 36,566 1,398 1,308 1,229 1,218 35,384 1,179 t5,153m below t5bn to t4.5bn Q4 Q1 Q2 Q3 Q4 Q

2 Commerzbank AG Corporate Communications Department D Frankfurt am Main Investor Relations Jürgen Ackermann Simone Nuxoll Dr. Ingolf Hegner Evelyn Noll (Secr.) 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 Präsentationen English: www. commerzbank.com Investor Relations Presentations Completed on May 6, 2003

3 commerzbank figures, facts, targets Commerzbank s strategic emphasis Branch structure of Commerzbank AG 4 Structure of Commerzbank Group 5 Breakdown of net commission income Trading profit 15 Operating expenditure Development of provisioning 16 Content Two double pillars comprising sales and production Results of the Parent Bank and of the major subsidiaries 6 Commerzbank s 361,000 shareholders Equity and market capitalization 7 Performance of the Commerzbank share Trading volume of the Commerzbank share 8 Balance-sheet total Claims on customers 9 Retail Banking: Rating of credit limits Corporate Banking: Rating of credit limits 10 Breakdown of assets Breakdown of liabilities and shareholders equity 11 Shareholdings in the non-financial sector Assets under management 12 Commerzbank Group s equity Risk-weighted assets and capital ratios 13 Provision for possible loan losses Overall provision for risks 17 Loan loss provisions by banking departments Pre-tax quarterly profit 18 Breakdown of results, by banking department 19 Development of individual banking departments Corporate banking in Germany 20 comdirect bank: customer base and strategic highlights Five-point-program for raising efficiency 21 Cost-cutting offensive plus Commerzbank s cost-cutting success 22 Equity ratios, according to BIS Profitability ratios 23 Key figures of the Commerzbank share Basic Commerzbank data 24 Income statement Net interest income 14 All figures if not stated otherwise according to IAS 3

4 Commerzbank s strategic emphasis to be the efficient provider of financial services for demanding private customers in Germany to become the number one bank for the successful German Mittelstand and the creative relationship bank for major corporates and institutions in Europe as well as multinationals from all over the world to integrate our investment and corporate banking activities more strongly to concentrate our range of products to allocate equity capital to reflect the growth potential of business areas to reduce strategically unnecessary shareholdings Branch structure of Commerzbank AG as of : 924 offices 20 as of : 796 offices as of : 727 offices Main branches * Regional branches ** Branch offices *) of which: 87 regional distribution units for corporate customer business **) of which: 75 local sales offices for corporate customer business 4

5 Structure of Commerzbank Group BOARD OF MANAGING DIRECTORS Corporate divisions Group Management Retail Banking and Asset Management Corporate and Investment Banking Services Staff departments Banking departments Service departments Accounting and Taxes Compliance and Security Financial Controlling Group Treasury Corporate Communications and Economic Research Human Resources Asset Management Credit Operations Private Customers Private Banking Retail Banking Corporate Banking Financial Institutions Global Credit Operations Multinational Corporates Real Estate Securities Global Operations Investment Banking IT Development IT Investment Banking IT Production IT Support Organization Transaction Banking Internal Auditing Legal Services Risk Control Strategy and Controlling Domestic and foreign branch network Cooperation in bancassurance area Group companies and major holdings Hypothekenbank in Essen AG Erste Europäische Pfandbrief- und Kommunalkreditbank AG EUROHYPO AG Korea Exchange Bank ComInvest Asset Management GmbH ADIG Investment Luxemburg S.A. AFINA Bufete de Socios Financieros, S.A. Caisse Centrale de Reéscompte, S.A. Commerz International Capital Management (Japan) Ltd. Commerzbank Europe (Ireland) Jupiter International Group plc comdirect bank AG COMMERZ PARTNER Beratungsgesellschaft für Vorsorge- und Finanzprodukte mbh Commerz Service GmbH BRE Bank SA Commerzbank (Budapest) Rt. Commerzbank (Eurasija) SAO Commerzbank International (Ireland) Commerzbank (Nederland) N.V. Commerzbank (East Asia) Ltd. P.T. Bank Finconesia Banque Marocaine du Commerce Extérieur Unibanco União de Bancos Brasileiros S.A. Commerz Grundbesitzgesellschaft mbh CommerzLeasing und Immobilien AG Commerz Business Consulting AG pdv.com Beratungs- GmbH SOLTRX Solutions for financial business GmbH TC Trust Center AG Commerzbank International S.A. Commerzbank (Switzerland) Ltd Commerzbank (South East Asia) Ltd. CBG Commerz Beteiligungsgesellschaft Holding mbh Commerzbank Capital Markets Corp. Commerzbank Capital Markets (Eastern Europe) a.s. Commerz Futures, LLC Commerz Securities (Japan) Co. Ltd. as of March

6 Two double pillars comprising sales and production The best choice for private clients in Germany The creative relationship bank for successful entrepreneurs/ companies in Germany for clients with a good credit standing in Europe and USA Retail Banking Asset Management Corporate Banking Investment Banking Leading distribution platform in the heart of Europe Systematic focus on adding value through distribution Results of the Parent Bank and of the major subsidiaries Balance-sheet total Pre-tax profit in h m Commerzbank AG 301, , comdirect bank* 2,596 0 CommerzLeasing und Immobilien AG Hypothekenbank in Essen AG 74,844 76, Caisse Centrale de Réescompte, S.A. 4,985 6, COMINVEST Asset Management GmbH ADIG Investment Luxembourg S.A Commerzbank Europe (Ireland) Unltd. 4,465 5, Commerzbank International S.A. 13, Commerzbank (Switzerland) Ltd Jupiter International Group PLC BRE Bank SA 5,108 6, All figures are based on IAS according to Commerzbank Group reporting *) figures not available at time of completion 6

7 Commerzbank s 361,000 shareholders Abroad Germany Private investors 4.0% 14.0% Institutional investors Generali 9.9% 5.5% WCM SCH 3.7% Mediobanca 1.6% 10.4% Munich Re Intesa 0.8% Institutional investors 15.5% 34.6% Private investors as of Equity and market capitalization Commerzbank Group, in h bn Equity Market capitalization

8 Performance of the Commerzbank share Month-end figures, January 1999 = Commerzbank share price DJ Euro Stoxx banks CDAX (banks) * *) until April 28, 2003 Trading volume of the Commerzbank share in e bn On , the Commerzbank share had an index weighting of 1.01% in the DAX index and 0.92% in the DJ Euro Stoxx Banks ( ). I II III IV I II III IV I

9 Balance-sheet total and claims on customers Commerzbank Group, in h bn Balance-sheet total Claims on customers Claims on customers Commerzbank Group Corporate and retail customers Public authorities Corporate customers Retail customers Public authorities Domestic Foreign t203.5bn t224.8bn 23.2% 3.1% 27.0% 22.7% 24.0% 26.3% 3.4% 26.1% 22.3% 21.9% t220.3bn 29.1% 3.7% 32.9% 18.0% 16.3% t 148.5bn % 2.4% 31.2% 22.8% 10.5% 9

10 Retail Banking (Germany): Rating of agreed credit lines* in % as of as of Credit rating *) before securities pledged Corporate Banking (Germany): Rating of agreed credit lines* in % as of as of Credit rating *) before securities pledged 10

11 Breakdown of assets Commerzbank Group, in h m Balance-sheet total 4,841 43, ,939 8,466 54, ,134 Liquid funds 142, ,138 Claims on banks Claims on customers (after provisioning) Assets held for dealing purposes/ financial investments 192, ,750 Other assets 14,815 14, Breakdown of liabilities and shareholders equity Commerzbank Group, in h m Balance-sheet total 397, ,134 94, ,984 Liabilities to banks Liabilities to other creditors 96,503 95,700 Securitized liabilities Liable funds Other liabilities 84,901 18, ,431 92,732 19,307 99,

12 Commerzbank s shareholdings in the non-financial sector (5% of capital and above) as of Alno AG Pfullendorf/Baden Buderus AG Wetzlar Heidelberger Druckmaschinen AG Heidelberg Linde AG Wiesbaden 29.3% 3* 10.5% 2) 165* 10.0% 1) 141* 10.0% 347* MAN AG Munich Neschen AG Bückeburg Ferrari S.p.A. Modena 6.8% 1) 125* 6.8% 1* 10.0% not listed 1) held indirectly and directly 2) held indirectly *) market price of Commerzbank s holding on in h m Assets under management in 7 bn, as of total: h 97.1bn Germany France United Kingdom Other units COMINVEST Asset Management CCR Group Jupiter Group Private Asset Management CICM Dublin CAM Asia Pacific Other units 12

13 Commerzbank Group s equity (BIS) as of Supplementary capital h7.656bn Tier III funds h0.204bn h19.365bn Core capital h11.505bn Risk-weighted assets and capital ratios (as defined by BIS) Commerzbank Group, in h m Risk-weighted assets 151, ,540 Capital charge for market risks 3,563 3,650 Items to be risk-weighted 154, ,190 Elements of equity for supervision purposes Core capital 11,505 11,691 Eligible own funds 19,365 19,662 Capital ratios for supervision purposes in % Core capital ratio* Equity capital ratio *) including market risks 13

14 Major items from Commerzbank Group s income statement Change in h m in h m in h m in % Net interest income after provisioning Net commission income Trading profit Net result on investments and securities portfolio Other operating result Operating expenses 1,179 1, Pre-tax profit Taxes on income After-tax profit Profit/loss attributable to minority interests Net profit Net interest income Commerzbank Group, in h m 3,516 3,581 2,831 2,654 3,133 1,812 Net interest income before provisioning Loan-loss provisions Net interest income after provisioning 1, % % -0.8%

15 Breakdown of net commission income Commerzbank Group, in h m 2,724 1,329 2,267 2,120 Securities business Asset Management Foreign commercial business and payments transactions Guarantees Income from syndicated business Other commissions generated abroad % 38.8% 35.6% 32.3% Trading profit Commerzbank Group, in h m 949 1, Securities Treasury Others Derivative financial instruments There have been several changes in the areas covered by the respective departments; the 2000 figures have not been adjusted. 15

16 Operating expenditure Commerzbank Group, in h m 5,477 5,855 5,155 1,179 3,007 3,066 2,679 1,970 2,216 1,909 Personnel expenses Other expenses Depreciation on fixed and intangible assets % % % Development of provisioning Commerzbank Group, in h m As of January 1 5,705 5,946 Allocations Deductions utilized written back Changes in foreign-exchange rates 6 12 As of March 31 5,788 6,117 16

17 Commerzbank Group s provision for possible loan losses Value adjustments and loan losses (excl. country risks) provisioning ratio 1) write-off ratio 2) ) Net provision for risks as a ratio of average commercial loan portfolio, with value adjustments deducted; 2) Write-offs as a percentage of average commercial loan portfolio Overall provision for risks Commerzbank Group, in h m Individual value adjustments 5,061 4,991 Country value adjustments General value adjustments Provisioning for balance-sheet items 5,448 5,376 Provisions in lending business Total 5,788 5,705 17

18 Loan loss provisions by banking departments Commerzbank Group,in h m After conservatively valued security in an amount of h1,819m had been deducted, the value-adjusted claims producing neither interest nor income amounted to h5,173m Retail banking Corporates and institutions Mortgage banks Total Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Pre-tax quarterly profit Commerzbank Group,in h m I II III IV I II III IV I

19 Breakdown of results, by banking department Commerzbank Group, , in h m Retail Asset Corporate Secu- Group Mort- Others/ Total banking manage- customers rities treasury gage consoliment and banking dation institutions Net interest income Provisions 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 Operating expenses ,179 Operating profit Balance on expenses/ income Regular amortization of goodwill Restructuring expenses Pre-tax profit Average equity tied up 1, ,417 1, ,506 11,512 Operative return on equity (%) Cost/income ratio in operating business (%) Return on equity of pre-tax profit (%) Staff (average no.) 11,399 1,769 9,547 1, ,112 34,530 19

20 Development of individual banking departments operating profit per quarter (in h m) Retail banking Securities Asset management Treasury Corporate customers and institutions Mortgage banking Corporate banking in Germany Target groups in German corporate banking Mittelstand Large corporates Multinational corporates Public sector Institutional investors h2.5 - h250m Market: 133,000 companies < h5,000m Market: 2,800 companies 162 defined clients Market: 9,600 clients Market: 4,800 clients percentage with Commerzbank percentage with Commerzbank percentage with Commerzbank percentage with Commerzbank percentage with Commerzbank 38% 75% 100% 40% 20% 20

21 comdirect bank: customer base and strategic highlights Turnaround in operative business in 2002 Distinct profit planned for 2003 Future success based on three key areas: Online investment 577, , , , , ,000 Direct banking Financial and portfolio advice 277, ,200 of which: directbrokerage customers Five-point-programme for raising efficiency Cost-cutting offensive implementation better than planned Credit check problem loans identified and solutions set in motion Pricing offensive first positive effects through wider margins, termination of special terms and conditions Structural and personnel measures some new recruitments for key positions Disposal of non-strategic interests interests in financial and industrial companies reduced or sold 21

22 Further boost to profitability from cost-cutting offensive plus The project focuses on: All head-office units Foreign units and subsidiaries Aggregate potential savings amount to h688m of wich: h381m personnel expenses of wich: h307m other expenses Savings in 2003: h460m Additional savings in 2004: h195m Additional savings in 2005: h33m 1,500 jobs to be shed in Germany in addition to the already resolved or initiated reduction of 500 jobs 1,100 jobs to be shed abroad Commerzbank s cost-cutting success staff (end-quarter figures) Operating expenses in euro m 39,481 38,665 1,487 38,017 37,176 36,566 1,398 1,308 1,229 1,218 35,384 1,179 t5,153m below t5bn to t4.5bn Q4 Q1 Q2 Q3 Q4 Q

23 Equity ratios, according to BIS in % own funds ratio core capital ratio, excl. market-risk position core capital ratio, incl. market-risk position Profitability ratios in % cost/income ratio in operating business operative return on equity pre-tax return on equity * 1.5* *) annualized 23

24 Key figures per Commerzbank share in h Pre-tax profit Net income Dividend 2) ) ) ) number of outstanding shares in m ) excluding comdirect IPO/dividend including h0.20 bonus; 2) excluding tax credit; 3) incl. restructuring expenses Basic Commerzbank data year-end figures Commerzbank Group Branches 1,064 1, Customers 5.20 m 5.70 m 6.00 m 6.00 m Employees 34,870 39,044 39,481 36,566 of whom: in Germany 30,557 31,716 31,899 28,603 abroad 4,313 7,328 7,582 7,963 Parent Bank Branches of which: in Germany abroad Employees 29,190 29,611 30,021 28,343 of whom: in Germany 27,068 27,225 27,469 25,739 abroad 2,122 2,386 2,552 2,604 24

25 Notes 25

26 / ideas ahead /