commerzbank figures, facts, targets INVESTOR relations 4 th quarter 2003

Transcription

1 commerzbank figures, facts, targets INVESTOR relations 4 th quarter 2003 strong profit increase in commerzbank s core segments retail banking, asset management, corporate customers, securities Operating result (in h m) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

2 Commerzbank AG Corporate Communications Department D Frankfurt am Main Investor Relations Jürgen Ackermann Dr. Ingolf Hegner Simone Nuxoll 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 February 17, 2004

3 commerzbank figures, facts, targets Commerzbank s strategic emphasis Branch structure of Commerzbank AG 4 Structure of Commerzbank Group 5 Results of the Parent Bank and of the major subsidiaries Major participations and disposals of participations in Commerzbank Group s equity Risk-weighted assets and capital ratios 14 Income statement 15 Net interest income Breakdown of net commission income 16 Trading profit Operating expenditure 17 Content Two double pillars comprising sales and production Corporate banking in Germany 7 From shrink to grow Changes in revaluation reserve and adjustments to financial investments 8 Commerzbank s 361,000 shareholders Equity and market capitalization 9 Development of provisioning Provision for possible loan losses 18 Loan loss coverage ratio Loan loss provisions by banking departments 19 Operating profit per quarter Equity allocation within Commerzbank Group 20 Breakdown of results, by banking department 21 Performance of the Commerzbank share Trading volume of the Commerzbank share 10 Development of individual banking departments comdirect bank: operating profit and pre-tax profit 22 Balance-sheet total Claims on customers 11 Retail Banking: Rating of credit limits Corporate Banking: Rating of credit limits 12 Breakdown of assets Breakdown of liabilities and shareholders equity 13 Equity ratios, according to BIS Profitability ratios 23 Key figures of the Commerzbank share Commerzbank s cost-cutting success 24 Assets under Management Basic Commerzbank data 25 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 in Germany as of : 924 offices 20 as of : 796 offices as of : 726 offices * Main branches * Regional branches ** Branch offices *) of which: 97 regional distribution units for corporate customer business **) of which: 61 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. 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 (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 December

6 Results of the Parent Bank and of the major subsidiaries Balance-sheet total Pre-tax profit in h m Commerzbank AG 280, ,987-2, comdirect bank 3,430 2, CommerzLeasing und Immobilien AG Hypothekenbank in Essen AG 77,245 76, Caisse Centrale de Réescompte, S.A. 4,197 6, COMINVEST Asset Management GmbH ADIG Investment Luxembourg S.A Commerzbank Europe (Ireland) Unltd. 3,997 5, Commerzbank International S.A. 11,680 14, Commerzbank (Switzerland) Ltd Jupiter International Group PLC BRE Bank SA 5,691 6, All figures are based on IAS according to Commerzbank Group reporting Major participations and disposals of participations in 2003 Major participations of Commerzbank as of : Banca Intesa SpA 3.8% Generali 1.1% Deutsche Börse (market placement) Erste Bank (market placement) Unibanco marketability achieved through partial sale (global offering) comdirect freefloat increased through partial sale (accel. bookbuilding) KEB 14.8% Mediobanca 1.7% SCH 1.9% Quarters 2003 I II III IV Unibanco 2.5% Heidelberger Druck 10.0% Linde 10.0% MAN 6.8% Crédit Agricole (accel. bookbuilding) Buderus sold to Bosch KEB partially sold to Lone Star T-Online sold to Telekom Thyssen Krupp 3.5% 6

7 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 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 117 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% 7

8 From shrink to grow Fresh impetus from new management team Strategic agenda 2002 Strategic agenda 2003 Financial revaluation Strategic agenda 2004 Strategic review of all divisions Cost-cutting initiatives Credit portfolio check Restructuring of all divisions Implementation of more than 200 defined measures Strengthening of Tier 1 ratio Reduction of bulk risk Thorough review of all assets: Loan book Participations Others Write-down of book values and strengthening of the balance sheet Improvement of financial and strategic flexibility Implementation of revenue growth initiative to increase market share and margins Grow to win (Retail) Mittelstand initiative Value offensive large corporates ( Wertoffensive Grosskunden ) Accelerated disposals of non-core assets Phase 1: Stabilization of franchise in difficult market environment Phase 2: Exploitation of profitable growth opportunities within tight financial control Changes in revaluation reserve and adjustments to financial investments Company/revaluation measure Amount of valuation adjustment Participations portfolio: industrial and financial participations Eurohypo + Asset Management units (mainly Jupiter) and other miscellaneous items Total adjustment approx. h1.3bn approx. h1.0bn approx. h2.3bn Positive revaluation reserve over 90% higher in 4th quarter, 2003 (in h m) 1, , ,100 03/02 06/02 09/02 12/02 03/03 06/03 09/03 09/03 12/ prerevaluation postrevaluation 8

9 Commerzbank s 361,000 shareholders shares of capital held Abroad Germany Private Investors 3.5% Generali 9.1% SCH 3.4% 18.0% Institutional investors 9.5% Munich Re Mediobanca 1.4% Intesa Group 1.9% 31.2% Private investors Institutional investors 22.0% as of Equity and market capitalization Commerzbank Group, in h bn Equity Market capitalization

10 Performance of the Commerzbank share Month-end figures, January 1999 = Commerzbank share price DJ Euro Stoxx banks CDAX (banks) * *) until January 30, 2004 Trading volume of the Commerzbank share in e bn On , the Commerzbank share had an index weighting of 1.79% in the DAX index and 1.82% in the DJ Euro Stoxx Banks. I II III IV I II III IV I II III IV

11 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 t224.8bn 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 33.1% 2.4% 31.2% 22.8% 10.5% t 138.4bn % 2.5% 31.8% 26.1% 11.7% 11

12 Retail Banking (Germany): Rating of agreed credit lines in % as of as of R0 R1 R2 R3 R4 R5 R6 Credit rating Due to the introduction of a new scoring procedure in connection with Basel II, the proportion of unrated borrowers or those not requiring a rating (RO) continued to fall Corporate Banking (Germany): Rating of agreed credit lines in % as of as of R0 R1 R2 R3 R4 R5 R6 Credit rating 12

13 Breakdown of assets Commerzbank Group, in h m Balance-sheet total Liquid funds Claims on banks Claims on customers (after provisioning) Assets held for dealing purposes/ financial investments 7,429 51, , , , ,134 8,466 54, , ,750 Other assets 14,101 14, Breakdown of liabilities and shareholders equity Commerzbank Group, in h m Balance-sheet total 381, ,134 95, ,984 Liabilities to banks Liabilities to other creditors Securitized liabilities Liable funds Other liabilities 100,000 83,992 18,685 83,659 95,700 92,732 19,307 99,

14 Commerzbank Group s equity (BIS) as of Supplementary capital h7.868bn Tier III funds h0.125bn h18.250bn Core capital h10.257bn Risk-weighted assets and capital ratios (as defined by BIS) Commerzbank Group, in h m Risk-weighted assets 135, ,540 Capital charge for market risks 5,000 3,650 Items to be risk-weighted 140, ,190 Elements of equity for supervision purposes Core capital 10,257 11,691 Eligible own funds 18,250 19,662 Capital ratios for supervision purposes in % Core capital ratio* Equity capital ratio *) including market risks 14

15 Major items from Commerzbank Group s income statement Change in h m in h m in h m in % Net interest income 2,776 3, Provisions for possible loan losses -1,084-1, Net interest income after provisioning 1,692 1, Net commission income 2,136 2, Net result on hedge accounting Trading profit Net result on investments and securities portfolio Operating expenses 4,511 5, Other operating result Operating profit Regular amortization of goodwill Profit from ordinary activities before expenses arising from special factors and restructuring expenses Expenses arising from special factors 2, ,078. Restructuring expenses Profit from ordinary activities after expenses arising from special factors and restructuring expenses -1, ,608. Extraordinary profit. Pre-tax profit -1, ,608. Taxes on income After-tax profit -2, ,960. Profit/loss attributable to minority interests Net loss for the year -2, ,

16 Net interest income Commerzbank Group, in h m 3,516 3,581 3,133 2,831 2,654 2, % Net interest income before provisioning Loan-loss provisions ,321 1,812 1, % 1, % Net interest income after provisioning Breakdown of net commission income Commerzbank Group, in h m 2,724 1,329 2,267 2,120 2, Securities business Asset Management Foreign commercial business and payments transactions Guarantees Income from syndicated business Other commissions generated abroad % 38.8% 35.6% 33.3%

17 Trading profit Commerzbank Group, in h m % Q1 Q2 Q3 Q Q1 Q2 Q3 Q Operating expenditure Commerzbank Group, in h m 5,477 5,855 5,155 4,511 3,007 3,066 1,970 2,216 2,679 1,909 2, % 1,594 Personnel expenses -16.5% Other expenses Depreciation on fixed and intangible assets % 17

18 Development of provisioning Commerzbank Group, in h m As of January 1 5,705 5,946 Allocations 1,562 1,974 Deductions 1,296 1,470 utilized written back Changes in the list of consolidated companies (Rheinhyp) Changes in foreign-exchange rates/transfers As of December 31 5,854 5,705 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 18

19 Commerzbank s loan-loss coverage ratio in h m In excess: h664m 6,502 In excess: h542m 7,388 In excess: h634m 7, % 109.0% Loan-loss provision 111.4% 5,320 5,506 Country LLP and general provision 5,838 4,975 6,846 7,077 Collateral Non-performing loans (excl. Rheinhyp) ,683 * 1, *) Increase in collateral from Dec 2001 to Dec 2002 due to changed ratings for highly collateralized domestic corporate customers. Loan loss provisions by banking departments Commerzbank Group,in h m Q1/ Q2/02 Q3/ Q4/02 Q1/ Q2/03 Q3/03 Q4/ Retail banking Corporates and institutions Mortgage banks Total 19

20 Operating profit per quarter Commerzbank Group, in h m * *) before revaluation Operating profit Net profit -243 I II III IV I II III IV Equity allocation within Commerzbank Group Strengthening of growth areas, , in h bn medium-term target Corporate Customers Retail Banking Securities Group Treasury Mortgage banks Others + consolidation Asset Management portfolio shift 20

21 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 1, , ,776 Provisions for possible loan losses ,084 Net interest income after provisioning ,692 Net commission income ,136 Net result on hedge accounting Trading profit Net result on investments and securities portfolio* Other operating result* Operating expenses* 1, , ,511 Operating profit Regular amortization of goodwill Expenses arising from special factors 2,325 2,325 Restructuring Expenses Pre-tax profit ,976-1,980 Average equity tied up 1, , ,769 11,357 Operative return on equity (%) Cost/income ratio in operating business (%) Return on equity of pre-tax profit (%) Staff (average no.) 10,726 1,598 9,335 1, ,667 32,898 *) excluding special factors 21

22 Development of individual banking departments operating profit per quarter (in h m) Retail banking Securities Asset management Treasury Corporate customers and institutions 197 Mortgage banking comdirect bank (group): operating profit and pre-tax profit Turnaround in operating business in 2002 In 2003 best result since the bank was formed in Profit target for 2004 h45m comdirect is active in three fields of competence: Online investment Direct banking Financial advisory -151 Operating profit Pre-tax profit 22

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

24 Key figures per Commerzbank share in h 1,97-0 1,10 1 Pre-tax profit Net income Dividend 2) 1,00 0,08 0,40 0,19 0,10-0,56 0,63 4) 0 0,014) , ) ) ) number of outstanding shares in m ) excluding comdirect IPO/dividend including h0.20 bonus; 2) excluding tax credit; 3) incl. restructuring expenses; 4) before expenses due to special factors 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 1,220 35,384 1,179 33,850 33,327 32,377 1,141 1,113 1,078 t5,155m t4,511m Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

25 Assets under management in 7 bn, as of total: h 102.6bn 48.9 Germany France United Kingdom Other units COMINVEST Asset Management CCR Group Jupiter Group Private Asset Management CICM Dublin CAM Asia Pacific Other units Basic Commerzbank data year-end figures Commerzbank Group Branches 1, n.a.* Customers 5.70 m 6.00 m 6.00 m n.a.* Employees 39,044 39,481 36,566 32,377 of whom: in Germany 31,716 31,899 28,603 25,426 abroad 7,328 7,582 7,963 6,951 Parent Bank Branches of which: in Germany abroad Employees 29,611 30,021 28,343 25,260 of whom: in Germany 27,225 27,469 25,739 22,957 abroad 2,386 2,552 2,604 2,303 * figures not available at completion 25

26 Notes 26

27 / ideas ahead /