Higher operating result capital ratio increased to 11.8% Analyst conference Q results

Transcription

1 Higher operating result capital ratio increased to 11.8% Analyst conference results Stephan Engels CFO Frankfurt 04 November

2 Higher operating result capital ratio increased to 11.8% Higher operating result of 429m further growth in PC and CEE Revenues of 2.4bn supported by positive valuation effects Stable expenses of 1.7bn capital neutral goodwill impairment of 627m 9M operating RoTE of 5.3% Healthy risk profile confirmed despite shipping Higher LLPs in ( 275m) deterioration in shipping timely reflected Strong NPL ratio of 1.7% maintained at a low level Low cost of risk in 9M of 19bps reflects good portfolio quality CET1 ratio at 11.8% Effective risk management leads to RWA decrease of 4bn CET1 capital stable at 23bn Comfortable leverage ratio of 4.5% Stephan Engels CFO Frankfurt 04 November 1

3 Key financial figures at a glance Group Financial Result ( m) Operating result Group Capital (% end of period) B3 CET1 ratio fully phased-in Q2 Q2 Net result 1) Goodwill impairment Leverage ratio 2) Q2 Q2 1) Stephan Engels CFO Frankfurt 04 November Consolidated result attributable to Commerzbank shareholders 2) 2 Leverage ratio according to revised CRD4/CRR rules published on 10 October 2014

4 Operating result of Commerzbank new divisions at a glance in new structure as of 9M bn 0.1 Op.RoTE 26.0% PC CEE Private and Small Business Customers 3.6 Revenues LLP 2.7 Costs 0.8 Operating result CIR 74% RWA 38bn Assets 117bn bn 0.2 MSB Op.RoTE 9.7% Corporate Clients CIR 66% RWA 104bn Assets 229bn C&M Exit/Ringfence Revenues LLP Costs Operating result Stephan Engels CFO Frankfurt 04 November 3

5 Operating result of Commerzbank divisions in former structure Private Customers ( m) Mittelstandsbank ( m) Central & Eastern Europe ( m) Q Q Q Corporates & Markets ( m) Others & Consolidation ( m) Asset & Capital Recovery ( m) Q Q Q Stephan Engels CFO Frankfurt 04 November 4

6 Group operating result of 429m Group Operating result ( m) Group P&L in m Q2 9M 9M Revenues 2,317 2,240 2,437 7,555 7,000 LLP Costs 1,719 1,702 1,733 5,413 5,328 Operating result ,558 1,062 Impairments on goodw ill & other intang. assets Restructuring expenses Taxes on income Minority interests Net result 1) Q2 Q4 Q2 CIR (%) Ø Equity ( bn) Net RoE (%) Net RoTE (%) Operating return on CET1 (%) Highlights Revenue increase of 197m q-o-q stems mainly from positive valuation effects in ACR (+ 130m) and XVA/OCS (+ 51m in C&M and MSB) Increase in LLPs (+ 88m q-o-q) as expected (Shipping) while costs remained almost flat (+ 31m q-o-q) Capital neutral impairment on goodwill ( 627m) leads to the expected negative net result of -288m in Stephan Engels CFO Frankfurt 04 November 1) Consolidated result attributable to Commerzbank shareholders 5

7 Active cost management compensates for investments and additional external burdens Costs, Group ( m) Transition costs 9M vs. 9M ( m) 1,957 1,737 1,719 1,744 1,893 1,702 1,733 Personnel expenses Operating expenses ,413 2,932 2, ,328 2,761 2,567 Q2 Q4 Q2 9M Cost increases Cost management 9M Highlights Investments mainly for digitization, strengthening the compliance function and implementing regulatory requirements Personnel expenses decreased due to net FTE reduction (~900 FTE), sourcing initiatives and lower variable compensation Additional burdens from banking tax and deposit guarantee scheme (incl. new Polish banking tax of 54m) fully compensated Stephan Engels CFO Frankfurt 04 November 6

8 Moderate increase of group LLPs in line with expectations Provisions for loan losses, Group ( m) LLP divisional split in m Q2 9M 9M Private Customers Mittelstandsbank Central & Eastern Europe Corporates & Markets Others & Consolidation Asset & Capital Recovery Group CoR (bps) Q2 Q4 Q2 Group NPL ( bn) Group NPL ratio (in %) Highlights Overall LLPs still at a low level reflecting the good portfolio quality and the stable German economy LLPs in PC benefit from very good solvency of German households A further deterioration in the shipping markets is reflected timely in a significant LLP increase in ACR compared to Q2 Stephan Engels CFO Frankfurt 04 November 7

9 Strong NPL ratio of 1.7% maintained at a low level NPL ratio 1) in Group (%) Cost of Risk 2) in Group (bps) YE 2014 YE 9M PC MSB CEE C&M O&C ACR YE 2014 YE 9M PC MSB CEE C&M O&C ACR Highlights Increase of NPL ratio and Cost of Risk in ACR driven by shipping portfolio as expected and clearly addressed Temporary higher NPL ratio for MSB driven by an exceptional single case with high exposure and low loss expectation Increase in C&M driven by a single case with high exposure 1) Stephan Engels CFO Frankfurt 04 November NPL ratio = Default volume LaR loans / Exposure at Default 2) 8 Cost of Risk = Loan Loss Provisions (annualised) / Exposure at Default

10 Effective risk management leads to RWA decrease of 4bn RWA (B3 fully phased-in) development by RWA classification ( bn) Market Risk Operational Risk Credit Risk Q2 Q4 Q2 Highlights Decrease in credit risk RWA due to active portfolio management and reductions in the financial institutions portfolio Slight decrease in operational RWA by 0.5bn Slight increase in market risk RWA by 1.2bn Stephan Engels CFO Frankfurt 04 November Note: Numbers may not add up due to rounding 9

11 CET1 ratio of 11.8% due to lower RWA and slightly increased capital Regulatory capital (CET1 B3 fully phased-in) transition ( bn) 10.8% 11.5% 11.8% Regulatory Capital Regulatory Capital Q2 Net profit excl. impairments on goodwill Release of dividend accrual Actuarial gains/losses Currency translation reserve Revaluation reserve Others Regulatory Capital Highlights Increase of CET1 ratio by 30bps predominantly due to lower credit risk RWA Positive contribution of net profit excluding capital neutral impairment on goodwill Release of dividend accrual as of H1 Higher burden from actuarial gains and losses while revaluation reserve recovered as expected Stephan Engels CFO Frankfurt 04 November Note: Numbers may not add up due to rounding 10

12 Private Customers: Continued growth path within challenging market environment Operating result ( m) Segmental P&L in m Q2 9M 9M Revenues ,870 2,823 o/w Filialbank ,469 2,308 o/w Direct Banking o/w Commerz Real LLP Costs ,264 2,232 Operating result Q2 Q4 Q2 CIR (%) Ø Equity ( bn) Operating return on equity (%) Highlights Sustainable loan growth (+8% y-o-y) at overall stable margins strong market position in new mortgages enhanced NCI with 3% increase q-o-q due to slightly better securities performance and pricing initiatives Revenues in Commerz Real benefit from strong real estate markets (e.g. Frankfurt) 994k net new customers since 2013 close to target of 1m net new customers Stephan Engels CFO Frankfurt 04 November 11

13 Mittelstandsbank: Stable operating results throughout Operating result 2) ( m) Q2 Q4 Q2 Reported figures 1) Segmental P&L in m Q2 9M 9M Revenues ,195 2,078 o/w Mittelstand Germany ,060 1,033 o/w Large Corp. & Int o/w Financial Institutions FVA and net CVA / DVA LLP Costs ,195 1,238 Operating result ) 2) CIR (%) Ø Equity ( bn) ) Operating return on equity (%) Highlights Maintained strong market position in a seasonally weak quarter Weaker corporate finance business in weighs on NCI mainly due to fewer transactions and lower deal size Financial Institutions with stable revenues q-o-q at lower level compared to due to internally tightened risk and compliance framework 1) Stephan Engels CFO Frankfurt 04 November Incl. FVA and net CVA/DVA 2) 12 Excl. FVA and net CVA/DVA

14 Negative interest rate environment further burdens NII NII analysis PC ( m) NII analysis MSB ( m) Change in NII due to loan volumes Change in NII due to loan volumes 62 Change in NII due to deposit margins Change in NII due to deposit margins Dec 15 Sep 16 LtD ratio 82% 84% 9M/15 vs. 9M/14 9M/16 vs. 9M/15 Dec 15 Sep 16 LtD ratio 73% 88% 9M/15 vs. 9M/14 9M/16 vs. 9M/15 Highlights Gross burden from negative rates environment on deposit margins adds up to 226m in PC and MSB Substantial mitigation in PC due to growing loan volumes softened negative impact on MSB (only additional gross burden of -20m in vs ) due to reduction of deposits by 21bn since Dec. Measures such as pricing initiatives remain in place expected net burden 2020 vs of 100m Stephan Engels CFO Frankfurt 04 November 13

15 Central & Eastern Europe: mbank with continued organic growth Operating result ( m) Segmental P&L in m Q2 9M 9M Revenues LLP Costs Operating result CIR (%) Ø Equity ( bn) Operating return on equity (%) Q2 Q4 Q2 Highlights Significant growth of operating revenues of +10% q-o-q (w/o gain from VISA in Q2 ) Increase of interest income (+7% q-o-q) from further improvement of net interest margin and growth of deposit volume as well as higher commission income (+15% q-o-q) mbank s organic growth leads to strong increase of consumer loans by 15% YTD and deposits by 12% YTD 9M expenses include Polish banking tax of 54m Stephan Engels CFO Frankfurt 04 November 14

16 Corporates & Markets: Stable revenues in across business divisions year-on-year Operating result 2) ( m) Q2 Q4 Q2 Reported figures 1) Segmental P&L in m Q2 9M 9M 2) 2) Revenues ,514 1,210 o/w Advisory & Primary Markets o/w EMC o/w FIC o/w CPM OCS, FVA and net CVA / DVA LLP Costs ,129 1,041 Operating result CIR (%) Ø Equity ( bn) ) Operating return on equity (%) Highlights Corporate client business with solid contribution from debt capital markets FIC with stable revenue trend in sustained challenging low interest rate environment, EMC with flat revenues y-o-y FIC complex and exotic rates derivatives business discontinued, EMC business to be ring-fenced under new strategy and intended to be brought to the market 1) Stephan Engels CFO Frankfurt 04 November Incl. OCS, FVA and net CVA/DVA 2) 15 Excl. OCS, FVA and net CVA/DVA

17 Asset & Capital Recovery: Positive valuation effects offset increase in LLPs Operating result ( m) Segmental P&L 52 in m Q2 9M 9M Revenues LLP Costs Operating result CIR (%) 27.4 n/a Ø Equity ( bn) Q2 Q4 Q2 CRE (EaD in bn) Ship Finance (EaD in bn) Public Finance (EaD in bn) Highlights Positive valuation effects ( 130m q-o-q) due to movements in CVA/DVA as well as mark-to-market valuation of derivatives LLPs as expected at higher level in driven by deterioration on ship markets Wind down of Ship Finance and CRE portfolio compensated by effects in Public Finance Stephan Engels CFO Frankfurt 04 November 16

18 Outlook We expect to keep our cost base stable compared to fully compensating additional external burdens We expect loan loss provisions below 1.0bn despite continuously challenging shipping markets Including goodwill impairment we expect a positive net result for the full year We expect an increase of CET1 ratio to around 12% at year-end Stephan Engels CFO Frankfurt 04 November 17

19 Appendix Stephan Engels CFO Frankfurt 04 November 18

20 German economy /2017 ongoing moderate growth ahead Current development After a strong economy slowed down again in Q2 and in on average growth should have been in line with the trend observed in Main driver of the recovery is still private consumption supported by higher wages and rising employment exports have slowed down as the world economy has lost steam Labor market has improved further Refugees crisis has subsided economic effects remain uncertain DAX (avg. p.a.) Our expectation for /2017 Recovery will continue as there is no negative shock ahead monetary policy will stay expansionary and the negative effect of Brexit will be very limited Headwinds from the EM are still a burden for exports in addition, shrinking profit margins of firms are still restraining investment Therefore we do not expect accelerating growth rates for the time being resulting in growth forecasts of 1.8% for and 1.3% for 2017 Euribor (avg. p.a. in %) Mounting headwinds from EM 40% of German exports go to EM, of which 6%pts to China Imports of EM has fallen since year end 2014 after it had increased significantly and pumped up German export growth EM in particular suffer from increased levels of private sector debt in addition commodity exporting EM are hit by lower commodity prices, particularly oil prices GDP (change vs. previous year in %) 6,843 8,297 9,450 10,957 10, Germany Eurozone e e 2017e e 2017e Stephan Engels CFO Frankfurt 04 November 19

21 Key figures of Commerzbank share Figures per share ( ) Operating result EPS FY 2014 FY 9M ytd as of 31 Dec Dec 30 Sep Number of shares issued (in m) 1, , ,252.4 Market capitalisation (in bn) Net asset value per share (in ) Low/high Xetra intraday prices ytd (in ) 9.91/ / /6.70 Stephan Engels CFO Frankfurt 04 November 20

22 Commerzbank financials at a glance Group Q2 9M 9M Operating result ( m) ,558 1,062 Net result ( m) 1) CET1 ratio B3 phase-in (%) CET1 ratio B3 fully phased-in (%) Total assets ( bn) RWA B3 fully phased-in ( bn) Leverage ratio (fully phased-in revised rules) (%) Cost/income ratio (%) Net RoE (%) 1) Net RoTE (%) 1) Total capital ratio fully phased-in (%) NPL ratio (in %) CoR (bps) Stephan Engels CFO Frankfurt 04 November Note: Numbers may not add up due to rounding 1) 21 Attributable to Commerzbank shareholders

23 Leverage ratio at 4.5% fully phased-in Total assets and LR exposure ( bn) Leverage ratio fully phased-in 1) as of (%) Total assets LR exposure Q2 Q2 Stephan Engels CFO Frankfurt 04 November Note: Numbers may not add up due to rounding 1) 22 Leverage ratio according to revised CRD4/CRR rules published 10 October 2014

24 Hedging & Valuation adjustments m 15 Q Q Q PC OCS, FVA & Net CVA/DVA MSB OCS, FVA & Net CVA/DVA CEE OCS, FVA & Net CVA/DVA OCS C&M FVA & Net CVA / DVA OCS, FVA & Net CVA/DVA O&C OCS, FVA & Net CVA/DVA ACR OCS, FVA & Net CVA/DVA Group OCS, FVA & Net CVA/DVA Other ACR valuation effects Total Stephan Engels CFO Frankfurt 04 November Note: Numbers may not add up due to rounding 23

25 Commerzbank 4.0 with new segmental structure requires capital neutral goodwill impairments of 627m in Impairments on goodwill and other intangible assets Impairments on goodwill and other intangible assets PC CEE C&M: 138m Goodwill in C&M sees impairment of 138m due to planned reduction of trading activities Private & Small Business Customers Corporate Clients: 489m From MSB s goodwill of 633m, 179m are assigned to small business customers in the new segment Private & Small Business Customers while 454m belong to the new segment Corporate Clients As a consequence of the goodwill impairment in C&M, a full goodwill impairment of the 454m has also been required in the new corporate clients segment ( inheritance effect ) MSB Corporate Clients Furthermore also other intangible assets of 35m have been impaired leading to an overall impairment in Corporate Clients of 489m C&M Exit/Ringfence Stephan Engels CFO Frankfurt 04 November 24

26 Capital markets funding activities (as of 9M ) Funding strategy Commerzbank uses covered bonds and senior unsecured instruments for funding purposes Funding via private placements and public transactions Issuance programs in the Euromarkets (e.g. DIP) Since 2011 USD Medium-Term Note Program (144a/3a2) Issuance requirements well below 10bn Capital market funding structure Subordinated debt Promissory notes 15% Unsecured bonds 15% 20% about 77bn as of 30 September 1) 50% Covered bonds Funding 9M highlights Within 9M Commerzbank issued a total of 6.7bn (in 3.9bn) with an average term of around nine years 1.0bn Tier 2 benchmark with maturity of ten years and $0.4bn Tier 2 of with twelve years maturity Two senior unsecured benchmarks (incl. mbank 0.5bn) Three long-dated benchmark Mortgage Pfandbriefe Capital market funding activities 9M Notional 6.7bn 1) Stephan Engels CFO Frankfurt 04 November Based on balance sheet figures 2) 25 Private Placements

27 Rating overview Commerzbank As of 04 November Bank Ratings Counterparty Risk Assessment - A2 - Deposit Rating - A2 stable - Issuer Credit Rating BBB+ stable Baa1 stable BBB+ stable Stand-alone (financial strength) bbb+ baa3 bbb+ Short-term debt A-2 P-1 F2 Covered Bond Ratings Public Sector Pfandbriefe - Aaa AA RWN Mortgage Pfandbriefe - Aaa AAA stable Rating actions in Mortgage Pfandbriefrating: Fitch: maintained at AAA Public Sector Pfandbriefrating: Moody s: confirmed Aaa Stephan Engels CFO Frankfurt 04 November 26

28 Commerzbank Group m Q2 9M Q4 12M Q2 9M % vs % vs Q2 Total Revenues 2,794 2,444 2,317 7,555 2,240 9,795 2,323 2,240 2,437 7, o/w Total net interest and net trading income 1,986 1,496 1,469 4,951 1,275 6,226 1,344 1,274 1,508 4, o/w Net commission income , , , o/w Other income > Provision for possible loan losses Operating expenses 1,957 1,737 1,719 5,413 1,744 7,157 1,893 1,702 1,733 5, o/w European bank levy > Operating profit , , , Impairments on goodw ill and other intangible assets Restructuring expenses > Net gain or loss from sale of disposal groups Pre-tax profit , , >-100 >-100 Taxes on income Minority Interests Consolidated Result attributable to Commerzbank shareholders , >-100 >-100 Assets 608, , , , , , , , , , Liabilities 608, , , , , , , , , , Average capital employed 27,436 29,290 29,605 28,777 29,901 29,058 29,746 29,606 29,664 29, RWA credit risk fully phased in (end of period) 176, , , , , , , , , , RWA market risk fully phased in (end of period) 22,471 20,368 20,481 20,481 17,427 17,427 18,286 19,281 20,508 20, RWA operational risk fully phased in (end of period) 23,053 22,655 21,978 21,978 21,398 21,398 22,176 24,327 23,836 23, RWA fully phased in (end of period) 221, , , , , , , , , , Cost/income ratio (%) 70.0% 71.1% 74.2% 71.6% 77.9% 73.1% 81.5% 76.0% 71.1% 76.1% - - Operating return on equity (%) 9.9% 5.8% 6.1% 7.2% 5.1% 6.7% 3.8% 4.7% 5.8% 4.8% - - Operating return on tangible equity (%) 11.1% 6.5% 6.8% 8.1% 5.7% 7.5% 4.3% 5.3% 6.4% 5.3% - - Return on equity of net result (%) 5.2% 4.4% 3.3% 4.3% 2.7% 3.9% 2.4% 3.0% -4.0% 0.4% - - Net return on tangible equity (%) 5.8% 4.9% 3.7% 4.8% 3.0% 4.3% 2.6% 3.4% -4.5% 0.5% - - Stephan Engels CFO Frankfurt 04 November 27

29 Private Customers m Q2 9M Q4 12M Q2 9M % vs % vs Q2 Total Revenues , , , o/w Net interest income , , , o/w Net trading income >100 o/w Net commission income , , , o/w Other income > Provision for possible loan losses Operating expenses , , , o/w European bank levy Operating profit Impairments on goodw ill and other intangible assets Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit Assets 76,303 78,239 79,618 79,618 80,744 80,744 81,949 84,224 85,161 85, Liabilities 100, , , , , , , , , , Average capital employed 3,121 2,924 2,908 2,984 2,890 2,961 2,526 2,303 2,340 2, RWA credit risk fully phased in (end of period) 18,879 19,008 18,862 18,862 15,520 15,520 14,957 14,637 14,623 14, RWA market risk fully phased in (end of period) , RWA operational risk fully phased in (end of period) 6,899 6,604 6,643 6,643 6,755 6,755 5,276 5,815 5,494 5, RWA fully phased in (end of period) 26,505 26,410 26,248 26,248 23,151 23,151 21,244 21,423 20,769 20, Cost/income ratio (%) 81.7% 79.4% 75.8% 78.9% 86.5% 80.7% 78.8% 80.3% 78.1% 79.1% - - Operating return on equity (%) 20.1% 23.3% 31.4% 24.8% 20.2% 23.7% 30.2% 31.3% 35.7% 32.4% - - Operating return on tangible equity (%) 19.6% 22.7% 30.2% 24.1% 19.4% 22.9% 29.2% 29.5% 34.2% 30.9% - - Stephan Engels CFO Frankfurt 04 November 28

30 Mittelstandsbank m Q2 9M Q4 12M Q2 9M % vs % vs Q2 Total Revenues , , , o/w Net interest income , , , o/w Net trading income >100 >100 o/w Net commission income , o/w Other income >100 >100 Provision for possible loan losses > Operating expenses , , , o/w European bank levy Operating profit , Impairments on goodw ill and other intangible assets Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit , Assets 100,997 98, , ,078 97,202 97,202 96,332 97,183 91,975 91, Liabilities 142, , , , , , , , , , Average capital employed 8,460 8,335 8,334 8,376 8,427 8,389 8,118 7,932 7,862 7, RWA credit risk fully phased in (end of period) 72,789 70,228 70,933 70,933 69,567 69,567 66,128 66,877 64,025 64, RWA market risk fully phased in (end of period) 1,206 1,169 1,008 1,008 1,319 1,319 1,406 1,394 1,269 1, RWA operational risk fully phased in (end of period) 3,845 3,495 3,174 3,174 3,096 3,096 4,784 4,989 4,837 4, RWA fully phased in (end of period) 77,840 74,892 75,115 75,115 73,981 73,981 72,319 73,260 70,130 70, Cost/income ratio (%) 51.9% 51.1% 59.8% 54.0% 57.7% 54.9% 63.2% 56.7% 57.7% 59.2% - - Operating return on equity (%) 17.3% 15.1% 11.1% 14.5% 10.5% 13.5% 10.2% 10.3% 11.7% 10.7% - - Operating return on tangible equity (%) 16.6% 14.4% 10.6% 13.9% 10.0% 12.9% 9.6% 9.8% 11.0% 10.1% - - Stephan Engels CFO Frankfurt 04 November 29

31 Central & Eastern Europe m Q2 9M Q4 12M Q2 9M % vs % vs Q2 Total Revenues o/w Net interest income o/w Net trading income o/w Net commission income o/w Other income Provision for possible loan losses Operating expenses o/w European bank levy (including Polish banking tax) > Operating profit Impairments on goodw ill and other intangible assets Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit Assets 30,158 28,904 29,735 29,735 29,034 29,034 29,023 29,076 29,997 29, Liabilities 25,319 23,933 25,364 25,364 24,923 24,923 24,815 24,806 25,789 25, Average capital employed 1,618 1,713 1,744 1,691 1,723 1,699 1,645 1,656 1,689 1, RWA credit risk fully phased in (end of period) 14,391 14,411 14,228 14,228 13,630 13,630 13,671 13,615 13,479 13, RWA market risk fully phased in (end of period) RWA operational risk fully phased in (end of period) ,146 1,158 1,510 1, RWA fully phased in (end of period) 15,709 15,675 15,550 15,550 15,010 15,010 15,186 15,188 15,498 15, Cost/income ratio (%) 56.1% 54.9% 45.2% 52.1% 59.8% 54.2% 59.1% 49.3% 61.0% 56.0% - - Operating return on equity (%) 21.8% 16.1% 22.3% 20.0% 18.3% 19.6% 18.7% 26.3% 13.5% 19.5% - - Operating return on tangible equity (%) 21.7% 16.0% 22.2% 20.0% 18.4% 19.6% 18.8% 26.3% 13.2% 19.3% - - Stephan Engels CFO Frankfurt 04 November 30

32 Corporates & Markets m Q2 9M Q4 12M Q2 9M % vs % vs Q2 Total Revenues , , , o/w Total net interest and net trading income , , , o/w Net commission income o/w Other income > Provision for possible loan losses >-100 >-100 Operating expenses , , , o/w European bank levy Operating profit Impairments on goodw ill and other intangible assets Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit >-100 >-100 Assets 225, , , , , , , , , , Liabilities 197, , , , , , , , , , Average capital employed 4,069 4,330 4,101 4,167 3,945 4,111 3,654 3,815 3,864 3, RWA credit risk fully phased in (end of period) 21,524 21,021 21,157 21,157 19,797 19,797 20,024 19,653 18,324 18, RWA market risk fully phased in (end of period) 11,920 11,585 10,997 10,997 8,634 8,634 9,049 9,897 10,402 10, RWA operational risk fully phased in (end of period) 5,717 5,602 5,201 5,201 4,691 4,691 5,392 6,511 6,369 6, RWA fully phased in (end of period) 39,161 38,208 37,355 37,355 33,122 33,122 34,465 36,061 35,096 35, Cost/income ratio (%) 63.2% 65.4% 81.0% 68.5% 93.2% 73.3% 81.7% 75.6% 70.8% 76.1% - - Operating return on equity (%) 29.2% 16.3% 6.8% 17.4% 3.9% 14.1% 9.0% 12.5% 10.8% 10.8% - - Operating return on tangible equity (%) 23.5% 13.4% 5.6% 14.1% 3.2% 11.6% 7.4% 10.7% 9.3% 9.1% - - Stephan Engels CFO Frankfurt 04 November 31

33 Asset & Capital Recovery m Q2 9M Q4 12M Q2 9M % vs % vs Q2 Total Revenues >100 o/w Net interest income >100 >100 o/w Net trading income o/w Net commission income o/w Other income >-100 >-100 Provision for possible loan losses > Operating expenses o/w European bank levy Operating profit > Impairments on goodw ill and other intangible assets Restructuring expenses Net gain or loss from sale of disposal groups Pre-tax profit > Assets 27,425 24,581 23,776 23,776 22,604 22,604 24,128 30,429 30,875 30, Liabilities 14,970 14,210 12,941 12,941 14,951 14,951 15,186 22,677 22,465 22, Average capital employed 4,720 4,516 3,839 4,359 3,652 4,182 3,280 3,470 3,287 3, RWA credit risk fully phased in (end of period) 25,045 22,229 19,475 19,475 16,483 16,483 16,947 17,077 14,217 14, RWA market risk fully phased in (end of period) 4,095 3,142 3,677 3,677 2,965 2,965 3,007 3,150 4,471 4, RWA operational risk fully phased in (end of period) 1,950 2,066 2,091 2,091 2,167 2,167 2,468 3,021 2,856 2, RWA fully phased in (end of period) 31,090 27,438 25,243 25,243 21,615 21,615 22,422 23,249 21,544 21, Stephan Engels CFO Frankfurt 04 November 32

34 Others & Consolidation m Q2 9M Q4 12M Q2 9M % vs % vs Q2 Total Revenues >100 >100 o/w Total net interest and net trading income o/w Net commission income o/w Other income Provision for possible loan losses >-100 Operating expenses o/w European bank levy >-100 >-100 Operating profit Impairments on goodw ill and other intangible assets Restructuring expenses > Net gain or loss from sale of disposal groups Pre-tax profit >-100 >-100 Assets 148, , , , , , , , , , Liabilities 127, , , , , , , , , , Average capital employed 5,447 7,472 8,679 7,199 9,264 7,716 10,522 10,430 10,622 10, RWA credit risk fully phased in (end of period) 23,395 24,501 26,350 26,350 23,620 23,620 22,335 22,832 25,589 25, RWA market risk fully phased in (end of period) 3,965 3,190 3,564 3,564 3,049 3,049 3,445 3,454 3,205 3, RWA operational risk fully phased in (end of period) 3,882 4,107 4,039 4,039 3,893 3,893 3,110 2,833 2,769 2, RWA fully phased in (end of period) 31,242 31,799 33,953 33,953 30,562 30,562 28,889 29,119 31,563 31, Stephan Engels CFO Frankfurt 04 November 33

35 Group equity composition Capital Capital Capital Ratios Ratios Q2 End of period End of period Average bn bn bn % % Common equity tier 1 B3 capital (phase in) CET1 ratio phase-in: 13.6% Transition adjustments ) Common equity tier 1 B3 capital (fully phased-in) Op. RoCET: 7.5% CET1 ratio fully phased-in: 11.8% DTA Deductions on securitizations Deductions related to non-controlling interests IRB shortfall Other regulatory adjustments Tangible equity Op. RoTE: 6.4% Goodwill and other intangible assets Pre-tax RoE: -3.4% IFRS capital Op. RoE: 5.8% Subscribed capital Capital reserve Retained earnings ) Currency translation reserve Revaluation reserve Cash flow hedges Consolidated P&L IFRS capital without non-controlling interests RoE on net result: -4.0% Non-controlling interests (IFRS) RoTE on net result: -4.5% Note: Numbers may not add up due to rounding Stephan Engels CFO Frankfurt 04 November 1) Include mainly AT1 positions and phase-in impacts 34 2) Excluding consolidated P&L

36 Glossary - Capital Allocation / RoE, RoTE & RoCET1 Calculation Capital Allocation Amount of average capital allocated to business segments is calculated by multiplying the segments current YTD average Basel 3 RWA (fully phased-in) (PC 21.7bn, MSB 72.5bn, CEE 15.1bn, C&M 34.3bn, O&C 29.3bn, ACR 22.3bn) by a ratio of 11% and 15% for ACR respectively - reflecting current regulatory and market standard figures for have been restated Excess capital reconciling to Group CET1 Basel 3 fully phased-in is allocated to Others & Consolidation Capital allocation is disclosed in the business segment reporting of Commerzbank Group For the purposes of calculating the segmental RoTE, average regulatory capital deductions Basel 3 fully phased-in (excluding Goodwill and other intangibles) are allocated to the business segments additionally (PC 0.1bn, MSB 0.4bn, C&M 0.7bn, O&C 2.5bn, ACR 0.4bn) RoE, RoTE & RoCET1 Calculation RoE is calculated on an average level of IFRS capital on Group level and on an average level of 11% (and 15% for ACR respectively) of the RWAs Basel 3 fully phased-in on segmental level RoTE is calculated on an average level of IFRS capital after deduction of goodwill and other intangible assets on Group level and on an average level of 11% (and 15% for ACR respectively) of the RWAs Basel 3 fully phased-in after addition of capital deductions Basel 3 fully phased-in (excluding goodwill and other intangible assets) on segmental level RoTE calculation represents the current market standard RoCET1 is calculated on average B3 CET1 capital fully phased-in Stephan Engels CFO Frankfurt 04 November 35

37 For more information, please contact Commerzbank s IR team IR contact Christoph Wortig (Head of IR Communications) P: M: christoph.wortig@commerzbank.com Institutional Investors and Financial Analysts Michael H. Klein P: M: michael.klein@commerzbank.com Fabian Brügmann P: M: fabian.bruegmann@commerzbank.com Retail Investors Florian Neumann P: M: florian.neumann@commerzbank.com Simone Nuxoll P: M: simone.nuxoll@commerzbank.com Dirk Bartsch (Head of Strategic IR / Rating Agency Relations) P: M: dirk.bartsch@commerzbank.com ir@commerzbank.com Financial calendar Feb 03 May 09 May 02 Aug 09 Nov Annual Press Conference Annual General Meeting 2017 results Q results 2017 results Stephan Engels CFO Frankfurt 04 November 36

38 Disclaimer This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include, inter alia, statements about Commerzbank s beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates, projections and targets as they are currently available to the management of Commerzbank. Forward-looking statements therefore speak only as of the date they are made, and Commerzbank undertakes no obligation to update any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, among others, the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which Commerzbank derives a substantial portion of its revenues and in which it hold a substantial portion of its assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives and the reliability of its risk management policies. In addition, this presentation contains financial and other information which has been derived from publicly available information disclosed by persons other than Commerzbank ( external data ). In particular, external data has been derived from industry and customer-related data and other calculations taken or derived from industry reports published by third parties, market research reports and commercial publications. Commercial publications generally state that the information they contain has originated from sources assumed to be reliable, but that the accuracy and completeness of such information is not guaranteed and that the calculations contained therein are based on a series of assumptions. The external data has not been independently verified by Commerzbank. Therefore, Commerzbank cannot assume any responsibility for the accuracy of the external data taken or derived from public sources. Copies of this document are available upon request or can be downloaded from Stephan Engels CFO Frankfurt 04 November 37