Commerzbank Figures, Facts, Targets

Transcription

1 Commerzbank with comfortable equity ratios in % Commerzbank s Targets Total Capital Tier Core Tier Dec 2009 Mar 2010 Jun 2010 Sep 2010 Commerzbank Figures, Facts, Targets Investor Relations 3rd Quarter 2010

2 Authorised by Bundesanstalt für Finanzdienstleistungsaufsicht and by the Financial Services Authority; regulated by the Financial Services Authority for the conduct of UK business. 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 November 8, 2010

3 Commerzbank Figures, Facts, Targets Content Highlights Q Solid Q Q Core bank with continued profitability Profit per quarter 3 Commerzbank Group s income statement Net interest income 4 Provision for loan losses by segment Breakdown of net commission income 5 Net trading income Operating expenses 6 Profitability ratios Development of business volumes 7 Claims on customers Probability of default rating 8 Breakdown of assets Breakdown of liabilities 9 Revaluation reserve RWA, Tier 1 ratio, total capital ratio and core Tier 1 ratio 10 Breakdown of results by segment Value drivers 11 Private Customers 13 Mittelstandsbank 14 Central & Eastern Europe 15 Corporates & Markets 16 Asset Based Finance 17 Group equity definitions Funding plan 18 Outlook Strategic Roadmap Integration progress Impact of Basel III 20 Structure of Commerzbank Group Key figures of Commerzbank share 21 Commerzbank s shareholders Equity and market capitalization 22 Performance of the Commerzbank share Trading volume of the Commerzbank share 23 Offices of Commerzbank Group worldwide Personnel data 24 Operating profit by segment Equity allocation 12 All figures if not stated otherwise according to IAS/IFRS

4 Commerzbank with a solid operating profit of 116m in Q ) 1) 1) 1) Q Q vs Q Q vs Q M M 2009* Revenues in m 2,922 3, , ,656 8,802 thereof net interest income in m 1,628 1, , ,375 5,299 thereof commission income in m ,772 2,788 thereof net trading income in m , thereof net investment income in m Provisions for loan losses in m , ,904-2,890 Operating expenses in m 2,185 2, , ,622 6,608 Operating profit/loss in m , Net profit/loss** in m ,055 +1,168 1,173-2,680 Net interest income and commission income impacted by difficult market environment Strong client flow and favourable market conditions for structured products drove trading profit LLP benefited from write-backs in MSB, ongoing high provisioning level in ABF Cost base: synergy results partially offset by integration charges Net profit supported by tax credit in foreign locations * without first 12 days result of Dresdner Bank ** Net profit/loss attributable to Commerzbank shareholders 1) Restatement for prior year and previous quarters 2010 due to change in reporting structure Solid Q Sound net profit of 1.2 bn in first nine months of 2010 MSB and C&M with ongoing strong operating performance Improved risk profile decrease of the NPL portfolio in the Core Bank Ongoing progress in pro-active risk reduction in ABF and PRU Further improved capital position, Basel III effects on RWA manageable 2

5 Q Core Bank with continued profitability Commerzbank Core Bank Optimization Downsizing Private Customers Mittelstandsbank Central & Eastern Europe Corporates & Markets Asset Based Finance Portfolio Restructuring Unit Operating profit/loss 1) in m Operating profit/loss in m ) ) Q Q Mittelstandsbank main profit contributor of Core Bank 1) incl. Others and Consolidation 2) Others and Consolidation only Q Q Focus: risk reduction Q Q Strong contribution Profit per quarter Commerzbank Group, in m ,055 Operating profit/loss Net profit/loss 1) ,574-1, ) attributable to CBK s shareholders 3

6 Commerzbank Group s income statement ) Change in m in m in m in % Net interest income 5,375 5, Provisions for loan losses -1,904-2, Net interest income after provisions 3,471 2,409 1, Net commission income 2,772 2, Net trading income 1, ,409. Net investment income Other income Revenue before provisions 9,656 8, Revenue after provisions 7,752 5,912 1, Operating expenses 6,622 6, Operating profit/loss 1, ,826. Impairments of goodwill and brand names Restructuring expenses 33 1,409-1, Pre-tax profit/loss 1,097-2,821 3,918. Taxes on income Consolidated profit/loss 1,212-2,722 3, attributable to non-controlling interests attributable to CBK s shareholders 1,173-2,680 3,853. 1) Restatement of prior-year due to change in reporting structure Net interest income Commerzbank Group, in m 1,692 1,838 1,769 1,890 1,888 1,859 1,628 Net interest income before provisions Provision for loan losses , , , , , Net interest income after provisions

7 Provision for loan losses by segment Commerzbank Group, in m 1, Portfolio Restructuring Unit ) 2 Asset Based Finance 43 Corporates & Markets Central & Eastern Europe Mittelstandsbank Private Customers Q Q ) -4m included in Others&Consolidation Breakdown of net commission income Commerzbank Group, in m Securities transactions Asset Management Payment transactions and foreign business Real-estate lending business Guarantees Income from syndicated business Trust transactions Other net commission income ) Restatement of prior-year due to change in reporting structure 1) Q Q

8 Net trading income Commerzbank Group, in m ) Restatement of prior-year due to change in reporting structure 1) Operating expenses Commerzbank Group, in m 1, ,239 1,280 1,187 1,116 1,024 1,077 1,107 1,102 1,154 1,074 1,143 1,042 Personnel expenses Other expenses (incl. current depreciation) 9,

9 Profitability ratios in % Cost/income ratio in operating business Operating return on equity 2) 1.5 1) ) ) Adjustment investors capital: the capital base comprises the average Group capital without the average revaluation reserve and the cash flow hedge reserve 2) annualized 1) Development of business volumes Commerzbank Group, in bn 1, Balance-sheet total Risk-weighted assets Claims on customers 1) 1) after provisions; 2) pro-forma 2)

10 Claims on customers 1) Commerzbank Group in bn Corporate and retail customers Public authorities Foreign 37.3% 36.4% 2.4% 2.5% Corporate customers 27.2% 29.8% Retail customers Public authorities Domestic 22.8% 22.8% 10.3% 8.5% 1) before provisions Probability of Default-Rating of Commerzbank as of , in % R1 R2 R3 R4 R5 Private Customers Mittelstandsbank Central & Eastern Europe Corporates & Markets Asset Based Finance 8

11 Breakdown of assets Commerzbank Group, in m Balance-sheet total Liquid funds 10, , ,103 5, , ,889 Claims on banks 1) Claims on customers 1) 352, ,911 Assets held for dealing purposes/financial investments Other assets 1) after provisions 350,000 24, ,644 21, Breakdown of liabilities Commerzbank Group, in m Balance-sheet total Liabilities to banks 140, , , ,889 Liabilities to customers 264, ,576 Securitized liabilities 171, ,382 Own funds 46,505 47,054 Other liabilities 220, ,

12 Revaluation reserve in bn ,5-1,7-1,8-1,5-2,2-1,9-2, RWA, Tier 1 ratio, total capital ratio and core Tier 1 ratio ) ) pro-forma Risk-weighted assets (in bn) Tier 1 ratio (%) Total capital ratio (%) Core Tier 1 ratio (%) 1) incl. Q1 profit; 2) incl. H1 profit

13 Breakdown of results by segment Commerzbank Group, , in m Private Customers Mittelstandsbank Central & Eastern Europe Corporates & Markets Asset Based Finance Portfolio Restructuring Unit Others & Consolidation Total Net interest income 1,493 1, ,375 Provisions for loan losses , ,904 Net interest income after provisions Net commission income 1,293 1, ,471 1, ,772 Net trading income ,574 Net investment income Other income Revenue before LLP 2,973 2, , ,656 Operating expenses 2,701 1, , ,622 Operating profit/loss 72 1, ,130 Impairments of goodwill and brand names Restructuring expenses Pre-tax profit/loss 72 1, ,097 Value drivers Commerzbank Group, , in m Private Customers Mittelstandsbank Central & Eastern Europe Corporates & Markets Asset Based Finance Portfolio Restructuring Unit Others & Consolidation Total Average capital employed ( m) 3,407 5,528 1,623 3,871 6,327 1,250 8,818 30,824 Operating return 1) on equity (%) Cost/income ratio in operating business (%) Pre-tax return on 1) equity (%) Average headcount 19,883 5,135 9,777 1,883 1, ,435 57,017 1) annualized 11

14 Mittelstandsbank is main profit contributor Operating profit, in m Private Customers Mittelstandsbank Central & Eastern Europe Corporates & Markets Asset Based Finance Portfolio Restructuring Unit , Equity allocation within Commerzbank Group Average, Private Customers 3,407m Mittelstandsbank 5,528m Central & Eastern Europe 1,623m Corporates & Markets 3,871m Asset Based Finance 6,327m 4% 28% 11% 30,824m 18% 5% Portfolio Restructuring Unit 1,250m Others and Consolidation 8,818m 21% 13% 12

15 Private Customers Commerzbank s Strategic Position Profitability Drivers Strategic Goals Leading retail bank in Germany with about 11 million private customers: No. 1 Retail Bank with a comprehensive nationwide coverage (1.200 branches) with one brand No. 1 Online Broker One of the leading Wealth Managers with 41 branches Top 3 in Retail Credit Sustainable profit generation and value added for investors by means of synergy effects: Optimized branch network Stable revenue basis: focus on client base & high-end product mix as well as benefit from strong sales partnership with Allianz Group Further reduced cost base - lean headquarter organization and efficient back office processes Risk-return-orientation in loan business / credit portfolio management Create the no. 1 bank for sophisticated private customers by positioning as leader in Quality. Thereby above-average participation in long-term growth trends (e.g. demographics, development of savings ratio) Private Customers impacted by integration and lower client activities Operating profit in m Main P&L items in m Q3`09** Q2`10** Q3`10 9M`09** 9M`10** Net interest income ,629 1,493 Risk provisions Commission income ,620 1,506 Net trading income Net investment income Operating expenses ,859 2,701 Operating profit Q3`09 Q2`10 Q3`10 9M`09 9M`10 Ø equity ( m) 3,252 3,458 3,341 3,284 3,407 Op. RoE* (%) CIR (%) % 9months y-o-y effect from exit units sold in 2009/2010: total revenues - 202m, operating expenses - 152m, operating profit - 51m PC continues to be affected by weak securities business and integration activities Customer base stable at 11 million customers Ø Q3 equity allocation within Group *annualized ** Restatement in prior year and previous quarters 2010 due to change in reporting structure All operating segments on a full period base, Q1/09-12-day-effect adjusted in O&C 13

16 Mittelstandsbank Commerzbank s Strategic Position Leading German Mittelstandsbank focused on the core region Germany and cross-border business with German connectivity One of the top 3 banks in foreign trade services in the euro zone as well as in Euro payment transactions worldwide Profitability Drivers Sustainable business model with stable value added due to high market penetration, proximity to customers, internationality & solution competence As the market leader we participate strongly in the cyclical upturn of Germany, at present the outperforming European economy Exploitation of synergies in cost & income (enlarged range of products and expertise, economies of scale) within the scope of integration of Dresdner Bank Strategic Goals Consolidation of our leading position as best Mittelstandsbank due to increased value added in mid/large cap client segment specific expansion of small cap client base professional attendance of our customers in their involvement abroad further increase of global market share in FI business efficiency and excellence for our customers MSB delivered its best quarterly result ever Operating profit in m Main P&L items in m Q3`09** Q2`10** Q3`10 9M`09** 9M`10** Net interest income ,592 1,568 Risk provisions Commission income Net trading income Net investment income Operating expenses ,011 1,070 Operating profit ,147 Q3`09 Q2`10 Q3`10 9M`09 9M`10 NII decreased by 10% q-o-q mainly due to FX effects and close-out of hedge positions Ø equity ( m) 5,257 5,446 5,666 5,446 5,528 Op. RoE* (%) Write-backs in LLP CIR (%) Net trading income affected by spread tightening in CDS markets 18.1% (Credit Portfolio Management) Operating expenses up due to allocated costs Ø Q3 equity allocation within Group *annualized ** Restatement in prior year and previous quarters 2010 due to change in reporting structure All operating segments on a full period base, Q1/09-12-day-effect adjusted in O&C 14

17 Central & Eastern Europe Commerzbank s Strategic Position Profitability Drivers Leading German bank in Central & Eastern Europe with over 4 m customers Differentiated business model focusing on Commerzbank s key competencies corporate banking, retail banking and client based investment banking Concentrating operations on most attractive markets Mitigating P&L-risks Risk reduction and portfolio optimization Ongoing efficiency measures for all business units Optimization / restructuring of product portfolio and development of new business / revenue sources Focusing on profitable core business Strategic Goals Increasing profitability in corporate banking, focused growth in retail banking Reducing risk costs, strict cost management and development of new revenue streams Further development of business models, e.g. business mix, operational excellence CEE: BRE Bank operating profit off-set by Eastern Europe Operating profit/loss in m Ø equity ( m) 1,619 1,597 1,675 1,623 1,623 Op. RoE* (%) CIR (%) % Ø Q3 equity allocation within Group Q3`09 Q2`10 Q3`10 9M`09 9M`10 8 Main P&L items in m Q3`09 Q2`10 Q3`10 9M`09 9M`10 Net interest income Risk provisions Commission income Net trading income Net investment income Operating expenses Operating profit/loss Sustained positive economic development in Poland, situation in Ukraine continues to be difficult and LLPs burden segment NII and commission income levels maintained BRE Bank with strong contribution to operating profit; off-set by other subsidiaries 360,000 new customers (+10%) in Central & Eastern Europe since the beginning of the year CEE now with more than 4 million customers *annualized All operating segments on a full period base, Q1/09-12-day-effect adjusted in O&C 15

18 Corporates & Markets Commerzbank s Strategic Position Investment Bank with a strong reach into the German market maintaining a European footprint Client-centric business model servicing the Group s broad client base Conservative approach to risk no dedicated proprietary trading desks Diversified business model with three strong business lines Profitability Drivers Cross-selling to the Group s extensive client franchise Core product groups generating stable revenues Acknowledged product expertise: Certificate Issuer Award 2010 for EMC 2 nd in the overall standing of the Deutsche Risk Poll 2009 and 2010 Euroweek Syndicated Loans Awards 2009: Best arranger of German loans & most improved market profile Covered Bond Awards 2010: Best Bank for Research Proven track record in realizing cost synergies Strong commitment to optimise capital and balance sheet usage Strategic Goals Boost our German lead in IR and FX risk management solutions Enhance our European market leadership in equity derivatives German market leader in corporate finance (equity and debt) Selectively expanding the international client franchise Another strong quarter within Corporates & Markets Operating profit/loss in m Ø equity ( m) 4,208 3,892 3,877 4,522 3,871 Op. RoE* (%) CIR (%) % Ø Q3 equity allocation within Group Q3`09 Q2`10 Q3`10 9M`09 9M`10 Main P&L items in m Q3`09** Q2`10** Q3`10 9M`09** 9M`10** Net interest income Risk provisions Commission income Net trading income Net investment income Operating expenses ,510 1,245 Operating profit/loss Revenues (pre LLP) up 48m q-o-q mainly driven by strong net trading income Corporate Finance with a continuously outstanding performance, especially driven by Debt Capital Markets and Loans FIC bounced back after difficult market environment in Q2 EMC in Q3 reflects quiet seasonal client business Costs up by 43m mainly driven by higher allocations *annualized ** Restatement in prior year and previous quarters 2010 due to change in reporting structure All operating segments on a full period base, Q1/09-12-day-effect adjusted in O&C 16

19 Asset Based Finance 1) Commerzbank s Strategic Position Commerzbank is one of the key players in Asset Based Finance: one of Europe s leading commercial real estate banks one of the top real estate asset managers with approximately 44bn assets under management one of the leading ship finance banks worldwide Profitability Drivers Strategic Goals Concentration on new deals with a lower risk profile in selected core business Focus on German Pfandbrief as important source of funding Further cost improvements through streamlining of organization Consolidation of all shipping activities and integrated risk management; successful penetration of multi-product approach No. 1 partner for commercial real estate: offering real estate financing and real estate asset management maritime industry: offering ship financing and non-finance products 1) including Public Finance ABF suffered from high LLPs and de-risking in Public Finance Operating profit/loss in m Q3`09 Q2`10 Q3`10 9M`09 9M`10 Ø equity ( m) 6,570 6,218 6,325 6,948 6,327 Op. RoE* (%) CIR (%) % Main P&L items in m Q3`09** Q2`10** Q3`10 9M`09** 9M`10** Net interest income Risk provisions ,172 Commission income Net trading income Net investment income Operating expenses Operating profit/loss NII q-o-q down due to higher funding costs Risk provisions up due to write downs on CRE portfolio Commission income maintained due to restructuring fees in CRE Banking Net trading income affected by rates environment Ø Q3 equity allocation within Group *annualized ** Restatement in prior year and previous quarters 2010 due to change in reporting structure All operating segments on a full period base, Q1/09-12-day-effect adjusted in O&C 17

20 Group equity definitions Reconciliation of equity definitions Equity basis for RoE Equity definitions in m Sep 2010 Subscribed capital Capital reserve Retained earnings Silent participation SoFFin/Allianz Currency translation reserve Consolidated P&L Investors Capital without non-controlling interests Non-controlling interests (IFRS)* Investors Capital Change in consolidated companies; goodwill; consolidated net profit minus portion of dividend; others Basel II core capital without hybrid capital Hybrid capital Basel II Tier I capital * excluding: - Revaluation reserve - Cash flow hedges - Consolidated profit 3,063 1,312 7,948 17, ,173 30, ,120-3,477 27,642 3,774 31,416 Basis for RoE on net profit Basis for operating RoE and pre-tax RoE Commerzbank approaching upper end of 2010 funding plan range in bn ~ Funding plan Funding need 2010 fulfilled with total capital markets issuance of 14.1 bn 15 11/3 / 3 2/3 2 / 3 Funding supported through strong retail and private placement franchise 33 ~ 1 / % ~ 2 / 3 Done 2010 YTD* 6.5 bn 7.6 bn Successful 10 year unsecured benchmark transaction supports maturity profile Maturing Capital Market Liabilities Not to be refinanced Covered Bonds Unsecured Funding 14.1 bn Pfandbrief market continues to serve as a stable funding source Funding needs for 2011 expected to be below funding 2010 * As of 30 September

21 Commerzbank targets full year 2010 net profit of at least 1bn Commerzbank benefiting from the strong German economy Main focus areas 2011: > PC H1 Integration, H2 reaping the synergies of a lower cost base in 2012 > MSB set to grow by leveraging strong market leader position > Risk reduction further down-sizing of non-core businesses (ABF and PRU) Risk provisioning and operating expenses will be further reduced in 2011 Commerzbank with tailwind into 2011, operating profit is targeted to be above the level of 2010 Roadmap 2012 targets confirmed pre-regulatory effects Strategic Roadmap 2012 progressing according to plan De-risking & Stability Considerably strengthened financial base Optimizing ABF Downsizing PRU with a value maximization approach Total assets significantly reduced (deleveraging) Complexity significantly reduced Integration process running according to plan Group turnaround Profitable Core Bank - MSB and PC continue to contribute significantly to the overall Group - C&M and CEE with considerably improved performance (vs. 2009) LLPs back to 2008 levels 1) Restructuring program in ABF will be accelerated Integration process and targeted synergies continue to be priority Profitability > 4bn group profit target 2) CIR of below 60% Cost-synergies of 2.2bn Repayment of silent participation starting latest by ) 2008 LLPs 3.6bn + 0.2bn unwinding effect; 2) pre-regulatory effects 19

22 Integration progress on schedule Key milestone in Q3: successful software harmonization Cost synergies End of September 2010 >45% of total synergy targets of 2.4bn achieved Forecast 2010 at 1.1bn Integration charges Integration charges above plan in 2010 due to higher IT investments Total integration charges confirmed at 2.5bn Personnel reduction 80% of overall reduction contracted (>6.900 FTE) Reduction of staff faster than planned Cost synergies 2010 in bn Integration charges 2010 in bn Personnel reduction in FTE 4, ,000 Plan 2010 as of Sep 2010 Plan 2010 Ytd Original Guidance as of Sep 2010 Impact of Basel III RWA effects under control active management compensates regulatory effects Basel III impact on Commerzbank RWA impact from regulatory changes of ~ 75 bn expected, thereof ~ 8 bn capital neutral ~ 30bn of potential RWA increase from Basel III have been already mitigated in 2010 Impact will be more than offset by further management action reduction of non-core activities (ABF, PRU) pro-active management of ABS structured assets (PRU) central clearing of OTC derivatives Slight increase in RWA until 2014 is driven by growth programs in Core Bank RWA development in bn Target capital ratios Core Tier % Tier % Total capital ~ 75 ~ 85 ~ % 8* 280 ~ 30 Sep 2010 Basel 2.5 and 3 Management action Growth programs Core Bank Target Dec 2014 * RWA equivalents: Tier 1 capital deductions multiplied by

23 Structure of Commerzbank Group Board of Managing Directors Private Customers Mittelstandsbank Central & Eastern Europe Corporates & Markets Asset Based Finance Portfolio Restructuring Unit Retail Banking Wealth Management Direct Banking Credit Small and Medium Enterprises Large Corporates Corporate Banking Corporates International Financial Institutions BRE Bank Central Europe Eastern Europe Equity Markets & Commodities Fixed Income Trading Corporate Finance Fixed Income Sales Client Relationship Management CRE Germany CRE International Public Finance Real Estate Asset Management Ship Finance Eurohypo Retail Portfolio Restructuring Unit Research London America Key figures of Commerzbank share in Earnings per share, in Figures per share, in ) Operating result EPS (incl. restruc. exp.) Dividend (excluding tax credit) ) restated Number of shares issued in m , ,181.4 Average number of shares outstanding in m , ,

24 Commerzbank s shareholders as of < 5% Institutional Investors Federal Republic of Germany Private Investors Allianz Generali approx. 8% > 10% approx. 52% 25% + 1 share Equity and market capitalization Commerzbank Group, in bn Equity 1) Market capitalization ) as shown in balance-sheet 22

25 Performance of the Commerzbank share Month-end figures, January 2008 = ) 1) until October 29, 2010 Commerzbank share Euro Stoxx Banks CDAX (Banks) Trading volume of the Commerzbank share in bn On , the Commerzbank share had an index weighting of 0.84% in the DAX and 1.19% in the Euro Stoxx Banks Q4 Q1 Q2 Q

26 Offices of Commerzbank Group wordwide as of % 1% 2% Commerzbank BRE 15% Bank Forum 2,199 offices Eurohypo Others 73% Personnel data Commerzbank Group ) Employees 36,767 43,169 62,671 59,761 in Germany 27,646 28,447 46,478 45,706 abroad 9,121 14,722 16,193 14,055 1) since 2009 New Commerzbank 24

27 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.

28 2011 Financial Calendar February 23, 2011 Annual Results Press Conference End-March 2011 Annual Report 2010 Early-May 2011 Interim Report Q May 18, 2011 Annual General Meeting Early-August 2011 Interim Report Q Early-November 2011 Interim Report Q Commerzbank AG Head Office Kaiserplatz Frankfurt am Main Postal address Frankfurt am Main Group Communications Investor Relations Jürgen Ackermann Markus Bär Dirk Bartsch Wennemar von Bodelschwingh Sandra Büschken Michael Desprez Ute Heiserer-Jäckel Michael Klein Andrea Korkesch Patricia Novak Simone Nuxoll Stefan Philippi Ulf Bastian Plesmann Klaus-Dieter Schallmayer Executive Assistant: Anna Binder Katja Schlett Tel. +49 (0)69 / Fax +49 (0)69 / Mail ir@commerzbank.com