> Nine-month report Profit target raised propelled growth

Transcription

1 > Nine-month report 2013 Profit target raised propelled growth

2 > Key figures of comdirect group Change in % Customers, assets under custody and key products comdirect group* Customers number 2,798,314 2,755, Custody accounts number 1,692,627 1,702, Total assets under custody in million 52,813 48, of which: portfolio volume in million 39,968 37, of which: deposit volume in million 12,845 11, business-to-customer (B2C) business line Customers number 1,789,758 1,716, Custody accounts number 828, , Current accounts number 1,002, , Tagesgeld PLUS ( call money plus ) accounts number 1,424,787 1,344, Total assets under custody in million 30,485 27, of which: portfolio volume in million 17,759 16, of which: deposit volume in million 12,726 11, Credit volume in million business-to-business (B2B) business line Customers number 1,008,556 1,038, Custody accounts number 864, , Total assets under custody in million 22,328 20, of which: portfolio volume in million 22,209 20, of which: deposit volume in million Orders and order volume Q1-Q3 Q1-Q3 Executed orders number 13,898,712 13,106, of which: B2C number 7,488,464 6,552, of which: B2B number 6,410,248 6,553, Average order activity per custody account (B2C annualised)** number Order volume per executed order (B2C)** in 5,770 4, Earnings ratios Q1-Q3 Q1-Q3 1) Net commission income in thousand 138, , Net interest income before provisions in thousand 104, , Administrative expenses in thousand 187, , Pre-tax profit in thousand 65,490 72, Net profit in thousand 48,261 53, Earnings per share in Return on equity before tax (annualised) 2) in % Cost/income ratio in % Balance sheet key figures ) Balance sheet total in million 13,712 12, Equity in million Equity ratio 3) in % Regulatory indicators under Basel II 4) Risk weighted assets 5) in million Eligible amount for operational risks in million Core capital in million Own funds for solvency purposes in million Own funds ratio 6) in % Employees figures Employees number 1,224 1, Employees full-time basis number 1, , *) B2C: comdirect bank AG; B2B: ebase GmbH **) Excluding CFD trades 1) Previous year adjusted due to application of amended IAS 19 2) Pre-tax profit/average equity (excluding revaluation reserve) in the reporting period 3) Equity (excluding revaluation reserve)/balance sheet total 4) These figures are calculated on the basis of internal calculations; publication is voluntary and based on national implementation conversion and the figures are not reported to the Supervisory Authority 5) Risk weighted assets in accordance with Section 10c of the German Banking Act (KWG) (intragroup receivables are zero weighted) 6) Own funds for solvency purposes/(risk weighted assets x eligible amounts for operational risks)

3 FOREWORD 1 Dear Shareholders, The bill please : Seven years ago comdirect launched its TV campaign for the current account. It showed a waiter paying out money rather than collecting it just like the comdirect current account, which was the only account in Germany to credit account holders with one euro a month. This was followed by Germany s first current account with satisfaction guarantee and by two numbers that have characterised the industry ever since: 50 euros if you like us, 100 euros if you don t. The newly launched Personal Financial Manager is now our third pioneering achievement relating to the current account. A few weeks ago, comdirect s current account delivered its own performance figures as we welcomed our one millionth current account customer at the end of September. In the past four years, the number of current accounts has thus doubled, and comdirect has carved out a leading position in the German direct banking market with its stand-out product. The number of direct banking customers has grown by 350 thousand over the same period, whilst the deposit volume has risen by 3.5bn and assets under custody by 9bn primarily as a result of net investments by customers with price effects playing only a secondary role. We continued our growth story in 2013 and achieved a record high on two fronts: as of 30 September, the comdirect group, including ebase, is managing deposits and portfolio assets of almost 53bn, and in brokerage, banking and advice is already a partner for 2.8 million customers. Once again, comdirect and ebase invested in their product ranges in the third quarter in order to make the customer-bank relationship even more personal. The Personal Financial Manager, a fee-free analysis tool, helps customers carefully manage their expenditures in a wide variety of categories. Our brokerage customers can now execute their trading strategies even more speedily and conveniently using the CFD app. And investors who set store by sustainable investments can now select their choice of funds from ebase s partners using these very criteria. Three examples from the third quarter that have one thing in common: customers are able to make better financial decisions with comdirect and ebase, sometimes on their own initiative, sometimes with personal advice, but they are always well-informed, self-directed and very willing to recommend us to others.

4 2 Investing further in long-term growth and exploiting latent customer potential will remain a guiding principle of our corporate strategy in the future as well. However, we invest judiciously and intensively monitor the competition, analyse market and customer trends and react promptly in order to get the most out of every euro we spend. Our focus on the central growth measures has limited the rise in administrative expenses year-on-year to 14.9m. At the same time, we have performed better on the earnings side than we had anticipated at the end of June; net interest income has recovered as a result of the adjustment to deposit interest rates, whilst net commission income again reflected active trading on the part of our customers in the third quarter. After just nine months, the comdirect group has thus achieved its original profit target of at least 65m for the year as a whole. Consequently we have raised the pre-tax profit target to 75m. This figure already takes into account that in the fourth quarter we will once more significantly ramp up our advertising activity by comparison with the rest of the year. Our investments in better products, IT infrastructure and our banking platform will also continue. Through these measures, we are creating a permanently good basis for further customer growth in a challenging, competitive environment. Sincerely yours, Dr. Thorsten Reitmeyer

5 INTERIM MANAGEMENT REPORT 3 > Interim management report as of 30 September 2013 Business model, strategy and management system The group structure, business model, strategy and management system of the comdirect group are unchanged compared with the presentation in the 2012 group management report. At the end of July 2013, comdirect bank AG announced a change on the Board of Managing Directors. Holger Hohrein (42) became a member of the Board of Managing Directors with effect from 1 October He is the successor to the previous CFO and HR Director Christian Diekmann (47), who stepped down from office on 30 September. In addition to Finance, Controlling & Risk Management, Hohrein is responsible for Human Resources, Business Development, Compliance & Money Laundering Prevention as well as B2B business. Since 1 October 2013, he has also been Chairman of the Supervisory Board of ebase. Market environment Overall assessment of market environment Development in the economic framework conditions varied once again in the third quarter. The framework conditions for banking remain challenging due to the persistently low interest rates. In brokerage, interest in securities on the part of our customers remained strong in the current friendly stock market environment. This resulted in a higher number of orders than in the previous year, as well as rising commission income. Macroeconomic framework conditions The slowdown in growth in key emerging countries continues to weigh on the global economy. However, there are signs of a recovery in most industrialised nations. The eurozone came out of recession and recently recorded positive growth rates thanks to an upward trend in Germany and France (source: Eurostat). Framework conditions for banking Contrary to expectations, the central banks in Europe and the USA retained their expansive money market policy in spite of the small economic recovery in both regions. The European Central Bank (ECB) has left its refinancing rate unchanged at 0.5%. Experts anticipate that the key lending rate will stay at this low level until June 2014 at least. Against this backdrop, three-month EURIBOR stood at only 0.21% on average for the first nine months of the year significantly below the respective figure for 2012 (0.70%). Risk premiums for peripheral euro countries fell again in the third quarter, while top-rated paper, such as German government bonds, posted modest rises in yields. Despite the effect of the recovery in the third quarter, comdirect s Treasury portfolio, which focuses on low probabilities of default, was characterised by declining yields on average for the first nine months of the year. This is particularly due to the reinvestment of maturing securities at lower interest rates. Margins in the deposit business consequently remain under pressure, even though interest rates for customers were adjusted during the reporting period. Framework conditions for brokerage Although the DAX hit a record high and at 8,594 points was up 10.3% on the end of 2012, trading activities on German stock exchanges overall did not match the previous year's level. In terms of value, the trading volume in the German spot market (XETRA and Frankfurt) decreased by 4.4% compared with the first nine months of While the number of orders for equities dropped by 24.2%, order numbers for exchange traded index funds ETFs as well as exchange traded commodities (ETC) and notes (ETN) were on a par with the previous year. In derivatives trading (Euwax and Scoach), stock exchange turnover was around 10.1% lower than the respective figure for However, the downturn in trading activity on the stock exchanges does not necessarily reflect the behaviour of private investors.

6 4 The retail funds included in BVI statistics posted inflows of 16.9bn in the first eight months of Bond funds and mixed funds as well as open-ended property funds were particularly popular with investors, while equity funds registered net outflows. Framework conditions for advice The market situation for Baufinanzierung PLUS building finance advice remains positive. Expectations of a rise in mortgage interest rates have kept demand for property finance at a high level. comdirect s Building Finance Sentiment Index, which is calculated in conjunction with opinion research institute Forsa, stood at points at the start of September 2013 (July 2013: points). A value greater than 100 indicates a high level of willingness to take out building finance loans. Number of orders on Deutsche Börse* shares traded (in billion) Q2 13 Q3 13 9M 12 9M 13 Source: Deutsche Börse AG 3.8 ETF/ETC/ETN Equities * XETRA and Frankfurt Stock Exchange Industry and regulatory framework conditions The Act implementing the EU Directive on Alternative Investment Fund Managers (AIFM UmsG) has made the terms and conditions governing redemption of units in open-ended property funds stricter for new investors. The allowance of 30 thousand per half year now only applies to investors who invested before 23 July Units which are held for the period of two years specified in the Act may be redeemed at any time, but a notice period of one year applies. As a result of these new regulations, interest in open-ended property funds decreased significantly in the third quarter. Business performance and earnings situation at the comdirect group Impact of new accounting standards Various changes regarding the accounting treatment of pensions have resulted from the first-time application of the amended IAS 19 regulation. The relevant previous year s figures have been adjusted. Further information can be found in the condensed Notes. Overall assessment of the economic situation The comdirect group maintained its growth course in the third quarter as well. The stable rise in the number of customers in the B2C business line was countered by only moderate declines in the B2B business line. Once again, the current account was the central growth driver and here the number of accounts broke through the one million mark. Assets under custody reached a new record high thanks to net fund inflows in portfolio and deposit volumes as well as price effects. Growth in net commission income in the third quarter mainly stems from the increased number of trades. The primarily price-related rise in sales follow-up commission in funds business additionally had a positive impact. The recovery in net interest income essentially results from the adjustment of our terms and conditions. As expected, net interest income over the nine-month period was considerably lower than the respective figure for The development in administrative expenses reflects the temporary limiting of the marketing budget over the holiday period amongst other factors. However, a significant intensification of marketing activities by comparison with the first and second quarters is scheduled for the last three months of the year. Due to the above effects, at 10% the decline in pre-tax profit versus the very high figure for the first nine months of 2012 was smaller than expected. Despite forecast lower income and rising expenses in the fourth quarter, the Board of Managing Directors of comdirect bank is raising its profit target for 2013 as a whole to 75m. Business performance With its attractive range of products and services, the comdirect group gained a large number of new customers in the third quarter as well. In the first nine months, the number of customers increased by 43.0 thousand to 2,798.3 thousand (end 2012: 2,755.3 thousand).

7 INTERIM MANAGEMENT REPORT 5 Number of customers of comdirect group (in thousand) Total assets under custody of comdirect group (in billion) 1,050 1,038 1, ,693 1,717 1, Customers B2B Customers B2C Deposit volume Portfolio volume This was mainly attributable to significant growth in the B2C business line. The number of customers here increased by 4.3% to 1,789.8 thousand (year-end 2012: 1,716.8 thousand). In the B2B business line, the number of end customers declined slightly in the third quarter. Compared with year-end 2012 (1,038.5 thousand), the number of end customers was down by 2.9% at 1,008.6 thousand. Assets under custody in the comdirect group climbed by 8.1% in the first nine months of 2013 to a new record level of 52.81bn (end 2012: 48.85bn). The portfolio volume increased by 7.6% to 39.97bn (end 2012: 37.13bn). In addition to price effects, this resulted from net investments by customers, especially in the B2C business line. The comdirect group remains the market leader in online securities business for modern investors in Germany. At 12.85bn, the deposit volume was significantly higher than the level at the end of 2012 ( 11.72bn). The rise also stems from inflows into new current and call money accounts. Earnings situation As expected, at 65.5m, pre-tax profit for the first nine months was down on the previous year s high figure ( 72.8m). The decrease is primarily attributable to the 8.7% rise in administrative expenses to 187.5m, which essentially reflects the comdirect group s growth initiatives. The year-on-year decline in net interest income resulting from low market interest rates was more than compensated by the upturn in net commission income, as well as by the improved result from financial investments stemming from non-recurring effects in the first quarter. Overall, income was up by 1.6% at 253.8m. The cost/ income ratio rose from 69.1% in the first nine months of 2012 to 73.9%. Based on the pre-tax profit and the average equity in the reporting period (excluding the revaluation reserve), the return on equity amounted to 16.8% (previous year: 18.6%). The comdirect group s net profit for the period after tax stood at 48.3m (previous year: 53.9m), which equates to earnings per share of 0.34 (previous year 0.38). Net interest income and provisions At 36.3m for the period July to September, net interest income before provisions did not quite match the previous year s figure ( 37.2m), but was still slightly higher than the level in the first two quarters of In addition to the rise in the average deposit volume, the full effect of the adjustment to deposit interest rates in the second quarter was felt for the first time. In contrast, in the current environment of low money market interest rates and bond yields there was little change on the earnings side. Lower market interest rates led to a decrease year-onyear of 10.7% to 104.0m (previous year: 116.5m).

8 6 Pre-tax profit of comdirect group (in million) Earnings after tax per share (in ) Q2 13 Q3 13 9M 12 9M 13 Q2 13 Q3 13 9M 12 9M 13 At 0.8m, provisions continued to remain low. The previous year s figure of 4.4m was dominated by additional provisions for changing the Visa card from a debit card to a credit card with weekly debiting. After provisions, net interest income for the comdirect group stands at 103.2m (previous year: 112.0m). Result from financial investments The increased result from financial investments in the first nine months of 9.1m (previous year: 2.8m) was essentially attributable to the disposal of securities on the part of the special funds in the first quarter. As a result, the investment strategy for these special funds, which are used in the Treasury department, was adjusted in line with the changed market conditions. Following completion of this reallocation, the financial result normalised again and amounted to 0.4m in the third quarter. Result from hedge accounting and trading result As of the reporting date, interest rate swaps with a nominal volume totalling 118m (previous year: 118m) were held to hedge interest rate-related changes in the market value of several bonds with the same volume and same maturity. In addition, forward rate agreements are used to manage the interest book. Their nominal volume amounted to 500m as of the reporting date (previous year: 0m). As consequence of the above, the result from hedge accounting to be disclosed for the reporting period amounted to 8 thousand (previous year: 2 thousand) and the trading result to 152 thousand (previous year: 0). Net commission income Net commission income of 138.7m was significantly higher than the previous year s figure ( 125.3m). The sharp rise of 10.8% results in particular from an upturn in the number of trades in the B2C business line. Increased sales follow-up commission in the funds business due to the higher average fund volume additionally had a positive impact. Commission from payment transactions also exceeded the figure for 2012, while the contribution from the advisory business approximately matched the level of net commission income in the previous year. Other operating result The other operating result of 1.7m (previous year: 5.2m) comprises income from the reversal of some provisions and accruals. The figure for the previous year included a one-off payment from Commerz Direktservice GmbH relating to premature termination of the service agreement.

9 INTERIM MANAGEMENT REPORT 7 Net commission income and net interest income (in million) Administrative expenses (in million) Q Q3 13 9M 12 9M 13 Net interest income before provisions Net commission income Q Q3 13 9M 12 9M Depreciation Other administrative expenses Personnel expenses Administrative expenses The rise in administrative expenses of 8.7% to 187.5m (previous year: 172.6m) reflects the comdirect group's growth expenses. We have recruited new staff for the expansion of our range of products and services. Consequently, personnel expenses rose by 5.2% to 53.6m (previous year: 51.0m). The rise in other administrative expenses of 9.8% to 120.9m (previous year: 110.0m) was caused by higher expenses for communications and external services as well as the increase in sundry administrative expenses among other factors. These too stemmed in large part from the design and implementation of growth projects. The slight decrease in the third quarter mainly reflects the temporary limiting of marketing expenses during the holiday period. Depreciation increased by 12.6% to 13.1m primarily as a result of the extension and modernisation of IT infrastructure, expansion of server capacity and the acquisition of software. The previous year s figure of 11.6m included an extraordinary write-down on technical infrastructure following the termination of a service agreement with Commerz Direktservice GmbH. B2C business line Business development in brokerage Once again, trading by comdirect customers was very active in the third quarter. The Brokerage Index, which is calculated monthly, shows that selling narrowly predominated as a result of profit-taking on equities and funds in particular. This corresponds with the sentiment analysis of the Bull/Bear index, which suggests a rather pessimistic mood among comdirect investors. We have continued our ongoing flat-fee campaign for warrants and certificates in OTC trading; in addition, there was a no-fee campaign with ING-Markets in August whereby all ING-Markets derivatives could be traded fee-free in OTC trading. The new fee-free CFD app was launched on 23 September and facilitates access to all of the functions available on comdirect's CFD platform. It allows comdirect customers to manage their open positions, issue orders and access charts via their smartphone or tablet. The offering is accompanied by an activity-linked bonus. Up until the end of the year, cash bonuses will be paid in line with the level of trading activity on new accounts. Furthermore, currency trading was significantly expanded. For the first time, non-euro pairs, such as GBP-USD or USD-JPY, can now be traded as well.

10 8 Executed orders B2C (in million) Portfolio volume B2C (in billion) Q2 13 Q3 13 9M 12 9M Securities trading The number of executed orders remained constant at a high level in the third quarter. At 7.49 million, the number of orders outstripped the figure for the first nine months of the previous year (6.55 million) by 14.3%. Securities turnover totalled 34.68bn, corresponding to growth of 37.2% year-on-year. As the comdirect Brokerage Index shows, the focus was mainly on certificates and warrants; we also registered strong interest in high yield corporate bonds. Selling predominated for equities, funds and fixed-income securities. Portfolio volume The portfolio volume in the B2C business line increased in the first nine months of 2013 by 1.47bn to stand at 17.76bn as of 30 September (end 2012: 16.29bn). This rise was attributable to price effects, as well as to net investments by customers which accounted for around one third of the increase. The number of custody accounts climbed during the reporting period by 2.7% to thousand (end 2012: thousand). Business development in banking Deposit business Despite a difficult interest rate environment for financial investment products, the deposit volume was increased to 12.73bn (end 2012: 11.62bn). In the third quarter, the deposit volume rose by 350m. Compared with the end of 2012 (901.4 thousand), the number of current accounts was up by thousand to 1,002.2 thousand. As the one million mark was in sight, we promoted the current account with an additional bonus campaign in September. We welcomed our one millionth current account customer at the end of September. The number of Tagesgeld PLUS accounts, usually opened in conjunction with a current account, rose to 1,424.8 thousand (end 2012: 1,344.9 thousand). We also recorded net fund inflows in settlement accounts and fixed-term deposits. The increase in the deposit volume was particularly strong in fixed-term deposit accounts (maturity 1 to 3 months), while development in time deposit accounts was stable across all terms from 4 to 120 months. As of 30 September 2013, 91.5% of liabilities to customers related to deposits due on demand. The reinvestment of customer funds is adjusted in line with the economic holding period of the deposits. We have further enhanced our current account with the launch of a Personal Financial Manager (PFM), which is unique in the German market. This fee-free analysis tool automatically allocates all transactions posted in comdirect accounts to the corresponding categories, for example car, leisure or home, and presents the information clearly in the form of interactive charts. Cash expenditure can also be entered manually and allocated to the categories. A budget can be defined for each category. On request, customers can be notified, for example by , if this limit is exceeded.

11 INTERIM MANAGEMENT REPORT 9 Deposit volume B2C (in billion) Number of current accounts and Tagesgeld PLUS accounts (in thousand) , , , , Tagesgeld PLUS accounts Current accounts Furthermore, we now offer an optimised version of our comdirect mobile app for Android and Apple ios with significantly improved usability. The app now facilitates the storing of access numbers as well as an ATM search with route planner. The update was very well received and rated by our customers. Preparations for the final switchover of the money transfer format to SEPA are progressing to schedule. We are informing our clients in detail of the changes relevant to them, including via a series of webinars. Lending and placement business The volume of utilisation of loans against securities and draws on overdraft facilities by private customers amounted to 164m, down 5.2% on year-end 2012 ( 173m). The volume of loans against securities decreased by 10.3% due to somewhat lower utilisation of settlement accounts for securities investments in the first nine months of the year. The volume of overdrafts exceeded the figure at year-end 2012 by 9.0% as a result of growth in the number of current accounts. comdirect acts as an intermediary for building finance and consumer loans. Both offerings therefore had no impact on the bank s lending volume. Business development in advice In light of expectations of a further interest rate rise, increased mortgage rates in the third quarter kept demand for our building finance offering at a high level. At 373m, the volume of building finance placed was higher than the figure for the previous year ( 325m). The quality of our building finance offering was confirmed in July when it came third in a survey of direct building finance carried out by the Deutsches Institut für Service-Qualität (DISQ German Institute for Service Quality). In addition to telephone and face-to-face local advisory services provided in the building finance offices in Berlin, Frankfurt/Main, Hamburg and Munich, the online live advice service contributed significantly to this success. comdirect works with more than 250 financing partners. At the end of September, our Anlageberatung PLUS investment advice service was being used by more than 2,550 customers (end 2012: around 2,160 customers). Assets under advice totalled 204m (end 2012: 157m). Earnings situation in the B2C business line In the first nine months of 2013, the B2C business line achieved pre-tax profit of 58.0m, which corresponds to a decline of 10.9% compared with the first nine months of 2012 ( 65.1m). The cost/income ratio rose from 67.7% to 73.0%. The earnings components related to the comdirect group s deposit business net interest income, trading result, result from hedge accounting and the result from financial investments stem mainly from the B2C business line and are thus explained at group level (see pages 5 to 6).

12 10 Net commission income climbed by 12.5% to 102.4m (previous year: 91.0m) as a result of the increased number of trades and sales follow-up commission in funds business as well as growing revenue from payment transactions. Administrative expenses amounted to 158.7m and exceeded the figure for the previous year ( 145.4m) by 9.2%. At 1.3m, the other operating result was down on the respective figure for 2012 which included extraordinary effects. B2B business line Business development in the B2B business line Since July, ebase has had a new name that reflects its extended portfolio of products and services. European Bank for Fund Services GmbH has become European Bank for Financial Services GmbH, and continues to be known as ebase for short. ebase is thus positioning itself as a broad-based financial services provider: It not only offers one of the leading platforms for investment custody accounts in Germany, but also provides accounts and loans as well as access to securities business via the open custody account launched at the start of the year. In the third quarter, ebase expanded its online platform for fund selection to include seven sustainability criteria. Customers can now select funds on a targeted basis and choose those that are involved to a great degree in social or environmental projects, for example in accordance with the Global Compact guidelines of the United Nations. In addition, it only takes a few clicks to exclude specific investments where the investment strategy runs counter to the investor s own convictions. Total assets under custody B2B (in billion) As in previous years, the decrease in the number of ebase customers of 29.9 thousand in the first nine months of 2013 to 1,008.6 thousand is due to the cancellation of custody accounts. This predominantly related to custody accounts for capital-building payments following expiry of the corresponding contracts, as well as to portfolio holdings, which had been taken over from institutional partners in the past. Custody account customers and portfolio volume The number of custody account customers declined by 3.5% to thousand (end 2012: thousand) in the first nine months of In contrast, the portfolio volume increased to 22.21bn (end 2012: 20.85bn) thanks in particular to the positive movement in prices and modest net fund inflows. Accounts and deposit volume At 119m, the deposit volume was higher than at the end of 2012 ( 97m). Most of the deposit volume was attributable to the settlement accounts linked with the custody account (Flex account). At the moment, these accounts are still primarily used for buying and selling transactions in the funds business. Earnings situation in the B2B business line At 7.5m, pre-tax profit in the B2B business line was almost on a par with the previous year. The increase in net commission income approximately matched that in administrative expenses. The cost/income ratio amounted to 79.4% (previous year: 78.1%). Net commission income rose by 6.3% to 36.4m, essentially due to the higher funds volume and resultant sales follow-up commission. Interest income decreased because of lower interest rates. As of the first quarter of 2013, interest effects from pension provisions are reported in interest expenses, and net interest income was consequently slightly negative. The rise in administrative expenses to 28.8m (previous year: 27.2m) was mainly attributable to the increase in personnel expenses and higher depreciation on investments in new products in the previous year.

13 INTERIM MANAGEMENT REPORT 11 Financial situation and assets of the comdirect group The Treasury department of comdirect bank ensures adequate cash holdings at all times and manages the liquidity. By investing customer deposits in the money and capital markets, the comdirect group achieves a positive interest margin. Here the bank carries out a significant share of the investments with companies in the Commerzbank Group. Claims on Commerzbank AG and selected other subsidiaries in the Commerzbank Group as well as the securities of these companies are comprehensively collateralised via a general assignment agreement. There are also five special funds that are included in the comdirect group s accounts. The use of derivative financial instruments is restricted to the hedging of interest rate risks from bonds and interest book management in the Treasury portfolio. Investments comdirect s growth course is also reflected in the development of investments. These were up on the previous year ( 8.7m) by 19.9% to 10.4m. The sharp rise in the B2C business line of 31.6% stems in particular from the further development of the website as well as the acquisition of hardware. In the B2B business line, the investment volume exceeded the respective figure for 2012 by 3.4%. Balance sheet structure of the comdirect group The balance sheet of the comdirect group increased in the first nine months of 2013 by 1.27bn to 13.71bn as a result of growth in the deposit volume. On the assets side, there was a rise in the credit balances held with Deutsche Bundesbank, which are included in the cash reserve. Claims on banks rose to 8.73bn (end 2012: 7.93bn). This was mainly due to the reinvestment of some of the increase in deposits via promissory notes. The volume of financial investments climbed by 1.9% to 3.78bn (end 2012: 3.71bn). This line item comprises bonds and Pfandbriefe as well as notes. As in the previous year, equities and mutual funds continued to play a minor role in the Treasury portfolio. Claims on customers dropped to 181.9m (end 2012: 202.6m). This was primarily due to the decline in the volume of loans against securities. The financing side of the balance sheet essentially comprises the deposits of private customers. Liabilities to customers totalled 12.86bn (end 2012: 11.74bn). Provisions stood at 44.4m. The respective figure at the end of 2012 ( 45.3m) is 5.6m higher than the figure published in the 2012 annual report, due to the application of amended IAS 19 to provisions for pensions. Equity amounted to 538.5m (end 2012: 581.6m). The revaluation reserve included in this figure reduced by 30.2m compared with the end of 2012 owing to decreasing residual maturities and the realisation of price gains in particular. The distribution of the dividend in the second quarter also contributed to the decline in equity. Cash flow statement Due to the comdirect group s business model, the cash flow from operating activities is predominantly influenced by the development of customer deposits and their reinvestment. In the reporting period, it amounted to 473.4m (previous year: 84.9m). The cash flow from investment activities stood at 10.4m (previous year: 8.7m) and reflects the increased investment volume. The dividend distribution in May 2013 resulted in a cash flow from financing activities of 62.1m (previous year: 79.1m).

14 12 The share The price of comdirect shares was down 2.7% on the level at the end of June, closing at 7.50 on 30 September. Taking the dividend payment into account, our shareholders achieved a total return of 0.63% in the first nine months of The shares therefore underperformed the SDAX (10.3%) and the DAXsector Financial Per formance Index (6.4%). At 42.3 thousand on average, the number of units traded per day was below the corresponding figure for The market capitalisation amounted to 1,059.2m (as of 30 September 2013). comdirect presented the company at roadshows in London and Zurich in August, as well as at the German Investment Conference in Munich in September. Development of comdirect share price to (in ) comdirect share SDAX January February March April May June July August September Daxsector Financial Services Performance Index Source: Bloomberg; indices normalised to the comdirect share price as of year-end 2012 Data and key figures of the share 9M 2013 Data German securities code no ISIN code DE Stock exchange code COM Reuters: CDBG.DE Bloomberg: COM GR Stock exchange segment SDAX Number of shares issued 141,220,815 no-par-value shares Key figures 9M 2013 Average daily turnover in units XETRA Frankfurt Other stock exchanges Opening quotation XETRA ( ) 7.89 Highest price XETRA ( ) 2) 8.67 Lowest price XETRA ( ) 2) ,832 3,873 2,608 42,313 Designated sponsor Commerzbank AG Closing quotation XETRA ( ) 7.50 Shareholder structure 81.13% Commerzbank AG 1) 18.87% Free float Market capitalisation ( ) 1,059.2m Earnings per share 0.34 Total shareholder return 3) 0.63% Dividend yield 4) 5.6% 1) Indirectly 2) Daily closing quotation 3) Annualised 4) Based on the dividend paid for financial year 2012 and closing quotation at year-end

15 INTERIM MANAGEMENT REPORT 13 Employees The number of employees increased to 1,224 in the first nine months of 2013 (end 2012: 1,176). In the B2C business line, the number climbed to 984 (end 2012: 945 employees). We recruited staff in IT in particular in order to drive forward the expansion of our product and service offering. The number of employees also rose marginally in the B2B business line to 240 (end 2012: 231 employees). Number of employees of comdirect group On 1 August, eight prospective bankers, two IT specialists in system integration and two students on the business information technology dual study programme commenced their training with comdirect. To further promote our training courses, in September we presented the company at the Youth Fair for training, education and careers in Norderstedt Business line B2B Business line B2C We offer graduates and interns fair terms and conditions, and this is confirmed by our renewed distinction as a fair employer by the Fair Company Initiative of careers and business magazine Karriere. Risk report As of 31 August 2013, the overall risk (economic capital required based on a confidence level of 99.91% and a risk horizon of one year) of the comdirect group amounted to 137.9m (end 2012: 159.4m). This corresponded to a utilisation level of the overall limit of 31.7% (end 2012: 36.6%). The limit utilisation level was non-critical both with respect to the aggregate risk and individual risks throughout the entire reporting period. The comdirect group s risk-bearing capacity also remained consistent under stress conditions. As in the previous year, the economic capital required for market risks declined and as of 31 August 2013 stood at 41.2m (end 2012: 53.0m). The continual decrease in market risks is due in particular to the consistent reduction of the volume of bank bonds from stricken countries in the eurozone (so-called PIIGS nations). This significantly limited the credit spread risk. Credit risks were also limited by rigorously reducing the exposure to European bank bonds and a strict policy of refraining from reinvesting in PIIGS nations. Despite rating migrations in the wake of the European sovereign debt crisis, the total CVaR dropped to 62.9m as of 31 August 2013 (end 2012: 66.5m). As of 31 August 2013, less than 0.09% (end 2012: 0.09%) of the balance sheet total was attributable to Treasury positions in the PIIGS nations. These positions are continually and closely watched as part of our intensive monitoring. We are continuing to pursue our strategic aim of reducing those positions which are subject to intensive monitoring through selective disposals and maturities. The economically required capital for operational risks amounted to 18.0m as of 31 August 2013, slightly down on the level at the end of 2012 ( 19.9m).

16 14 Lower deviations between target/actual values also led to a slight drop in the economically required capital for business risk to 15.3m as of 31 August 2013 (end 2012: 18.3m). The close-out risk (formerly referred to as model risk), which results from deposit modelling, remained at a low and non-critical level for the entire reporting period, due in particular to continual growth in deposits at comdirect. Based on the confidence level of 99.91% consistently used in the risk-bearing capacity analysis, at the end of August 2013 the close-out risk amounted to 0.5m (March 2013: 1.7m; June 2013: 0.9m). With regard to risks which are managed on a qualitative basis, in addition to reputation risk, the so-called general model risk was also classified as a material type of risk for comdirect that is to be managed separately when the risk inventory was carried out in the financial year. General model risk describes the risk of poor management decisions due to an inaccurate representation of reality resulting from the models used. To limit the general model risk, the models used at comdirect are subject to regular validation processes. Consequently, the risks resulting from the use of risk models can be identified and, where possible, avoided or appropriately taken into account. Detailed information on risk management, controlling and reporting as well as the risk categories of the comdirect group can be found on pages 57 to 66 of the 2012 annual report, while note (56) regarding the risk reporting of financial instruments is on pages 126 to 130. To summarise, the comdirect group has enough of a risk buffer to certainly withstand even lengthy weak market phases. From today s perspective, there are no realistic risks in evidence that could threaten the continued existence of the comdirect group. Outlook and opportunity report The economic framework conditions have essentially developed in line with the assumptions indicated in the outlook and opportunity report of the 2012 Group management report (pages 70 to 72 of the annual report). The recently more positive economic indicators in the eurozone make a further cut in the key lending rate by the ECB less likely, which means that the conditions for deposit business are likely to remain unchanged for the time being. From today s perspective, in the fourth quarter of 2013 we expect to see low net interest income around the level of the previous quarters, with the result that a significant decline will be recorded for the year as a whole. The result from financial investments in the final quarter is forecast to remain on a par with the normalised level of the past three months as no more non-recurring effects, such as those in the first quarter of 2013, are expected. Net commission income, including for the year as a whole, is likely to surpass the respective figure for However, it is very difficult to predict the development of the stock market environment and the resultant trading behaviour on the part of customers in the fourth quarter. Trading activity, however, is usually weaker in the fourth quarter than in the rest of the year. Sales follow-up commission should exceed the previous year due to higher prices on average for the year.

17 INTERIM MANAGEMENT REPORT 15 Administrative expenses are forecast to rise considerably compared with the previous year due to advertising activities on the one hand and improvements to products, IT infrastructure and the banking platform on the other. Through these, comdirect is creating a good basis for further customer growth in an increasingly competitive market. Despite the significant increase in other administrative expenses scheduled for the fourth quarter, following the recent better-than-expected development in income, we are raising the pre-tax profit target for the comdirect group to 75m. Supplementary report No major events or developments of special significance have occurred since the reporting date of 30 September 2013.

18 16 > Income statement Income statement of comdirect group according to IFRS thousand 1.1. to to ) ) Interest income 162, ,887 54,651 63,258 Interest expenses 58,641 88,433 18,345 26,035 Net interest income before provisions 104, ,454 36,306 37,223 Provisions for possible loan losses 811 4, ,435 Net interest income after provisions 103, ,041 36,032 33,788 Commission income 237, ,762 80,010 71,456 Commission expenses 98,300 87,506 33,007 29,726 Net commission income 138, ,256 47,003 41,730 Result from hedge accounting Trading result Result from financial investments 9,148 2, Administrative expenses 187, ,579 60,197 60,229 Other operating result 1,740 5, ,814 Pre-tax profit 65,490 72,779 23,562 19,712 Taxes on income 17,229 18,891 6,438 5,354 Net profit 48,261 53,888 17,124 14,358 1) Previous year adjusted due to application of amended IAS 19 Undiluted/diluted earnings per share 1.1. to to ) ) Net profit (in thousand) 48,261 53,888 17,124 14,358 Average number of ordinary shares (number) 141,220, ,220, ,220, ,220,815 Undiluted/diluted earnings per share (in ) ) Previous year adjusted due to application of amended IAS 19 > Statement of comprehensive income Statement of comprehensive income of comdirect group according to IFRS thousand 1.1. to to ) ) Net profit 48,261 53,888 17,124 14,358 Items not reclassified into the income statement Actuarial gains/losses 916 1, ,053 Items which are reclassified into the income statement at a later date if necessary Changes in the revaluation reserve after tax 30,210 43,938 2,772 13,103 Comprehensive income 18,967 96,010 14,401 26,408 1) Previous year adjusted due to application of amended IAS 19 Net profit and comprehensive income for the reporting period are attributable in full to the shareholders of comdirect bank AG.

19 INTERIM FINANCIAL STATEMENTS 17 > Balance sheet Balance sheet of comdirect group according to IFRS Assets thousand as of as of as of Cash reserve 952, , ,849 Claims on banks 8,728,622 7,929,839 6,711,938 Claims on customers 181, , ,691 Trading assets Financial investments 3,780,558 3,709,668 3,861,587 Intangible assets 29,571 31,809 30,579 Fixed assets 11,350 11,772 11,790 Current income tax assets 2,532 1,892 4,091 Deferred income tax assets 5, Other assets 18,816 6,204 5,896 Total assets 13,712,102 12,445,540 11,378,421 Liabilities and equity thousand as of as of ) as of ) Liabilities to banks 195,938 1,901 3,244 Liabilities to customers 12,862,757 11,737,489 10,723,015 Negative fair values from derivative hedging instruments 3,300 5,278 4,496 Trading liabilities Provisions 44,393 45,305 42,165 Current income tax liabilities 13,126 21,625 14,527 Deferred income tax liabilities 0 6,320 2,725 Other liabilities 53,468 45,983 41,718 Equity 538, , ,531 Subscribed capital 141, , ,221 Capital reserve 223, , ,296 Retained earnings 100,382 99,466 91,613 Revaluation reserve 25,309 55,519 11,317 Consolidated profit ,084 Consolidated profit ,137 Net profit from 1.1. to ,261 Total liabilities and equity 13,712,102 12,445,540 11,378,421 1) The figures for the start and end of the previous period have been adjusted due to application of amended IAS 19

20 18 > Statement of changes in equity thousand Subscribed Capital Retained Revaluation Group Total capital reserve earnings reserve 1) result Equity as of , ,296 92,350 11,317 79, ,268 Change as a result of retrospective adjustments Equity as of ) 141, ,296 91,613 11,317 79, ,531 Net profit from 1.1. to ,339 73,339 Actuarial gains/losses 3,349 3,349 Changes in the revaluation reserve 44,203 44,203 Comprehensive income ,349 44,203 73, ,193 Profit distributions 79,084 79,084 Allocation to reserves/ transfer from reserves 11,202 11,202 0 Equity as of / , ,296 99,466 55,519 62, ,639 Net profit from 1.1. to ,261 48,261 Actuarial gains/losses Changes in the revaluation reserve 30,210 30,210 Comprehensive income from 1.1. to ,210 48,261 18,967 Profit distributions 62,137 62,137 Equity as of , , ,382 25,309 48, ,469 1) Pursuant to IAS 39 2) The previous year s figures have been adjusted due to retrospective application of amended IAS 19 thousand Subscribed Capital Retained Revaluation Group Total capital reserve earnings reserve 1) result Equity as of , ,296 92,350 11,317 79, ,268 Change as a result of retrospective adjustments Equity as of ) 141, ,296 91,613 11,317 79, ,531 Net profit from 1.1. to ,888 53,888 Actuarial gains/losses 1,816 1,816 Changes in the revaluation reserve 43,938 43,938 Comprehensive income from 1.1. to ,816 43,938 53,888 96,010 Profit distributions 79,084 79,084 Equity as of , ,296 89,797 55,255 53, ,457 1) Pursuant to IAS 39 2) The previous year s figures have been adjusted due to retrospective application of amended IAS 19 In financial year 2013, dividends amounting to 62,137 thousand (previous year: 79,084 thousand) were distributed to the shareholders of comdirect bank AG. This corresponds to 0.44 per share (previous year: 0.56).

21 INTERIM FINANCIAL STATEMENTS 19 In financial year 2013, comdirect did not make use of either the existing authorisations of the annual general meeting to purchase own shares for the purpose of securities trading pursuant to Section 71 (1) No. 7 German Stock Corporation Act (AktG) or of the resolutions of the annual general meeting authorising the purchase of own shares pursuant to Section 71 (1) No. 8 German Stock Corporation Act (AktG) for purposes other than securities trading. > Cash flow statement thousand Cash and cash equivalents as of , ,849 Cash flow from operating activities 473,426 84,902 Cash flow from investment activities 10,410 8,695 Cash flow from financing activities 62,137 79,084 Cash and cash equivalents as of , ,168 Cash and cash equivalents correspond to the balance sheet item cash reserve and include cash on hand and balances held at central banks. The cash flow from operating activities is essentially determined by the taking in of customer deposits and their reinvestment in the money and capital markets. The cash flow from investment activities results from the acquisition and disposal of tangible and intangible assets. The cash flow from financing activities stems from the dividend distribution by comdirect bank AG to its shareholders. > Notes Administrative expenses thousand 1.1. to to ) ) Personnel expenses 53,592 50,954 18,392 17,499 Other administrative expenses 120, ,035 37,350 38,281 Marketing expenses 39,200 38,254 11,052 12,800 Communication expenses 8,464 6,311 2,147 2,613 Consulting expenses 10,836 9,323 3,828 3,322 Expenses for external services 30,788 28,186 10,194 10,620 Sundry administrative expenses 31,580 27,961 10,129 8,926 Depreciation of office furniture and equipment and intangible assets 13,053 11,590 4,455 4,449 Total 187, ,579 60,197 60,229 1) Previous year adjusted due to application of amended IAS 19

22 20 Segment reporting by business line thousand 1.1. to B2C B2B Consolidation comdirect group total Net interest income before provisions 104, ,017 Provisions for possible loan losses Net interest income after provisions 103, ,206 Net commission income 102,384 36, ,749 Result from hedge accounting Trading result Result from financial investments 9, ,148 Administrative expenses 158,709 28, ,513 Other operating result 1, ,740 Pre-tax profit 58,016 7, ,490 Segment investments 6,702 3,733 10,435 Segment depreciation 10,095 2,958 13,053 Cost/income ratio 73.0% 79.4% 73.9% Segment income 290, ,922 of which external income 290, ,823 of which inter-segmental income 0 99 Segment expenses 232, ,448 thousand 1.7. to B2C B2B Consolidation comdirect group total Net interest income before provisions 36, ,306 Provisions for possible loan losses Net interest income after provisions 36, ,032 Net commission income 34,752 12, ,003 Result from hedge accounting Trading result Result from financial investments Administrative expenses 50,513 9, ,197 Other operating result Pre-tax profit 20,891 2, ,562 Segment investments 2,180 1,826 4,006 Segment depreciation 3, ,455 Cost/income ratio 70.5% 78.4% 71.6% Segment income 95,158 41,692 of which external income 95,167 41,652 of which inter-segmental income 9 40 Segment expenses 74,267 39,021

23 INTERIM FINANCIAL STATEMENTS 21 Segment reporting by business line thousand 1.1. to ) B2C B2B Consolidation comdirect group total Net interest income before provisions 116, ,454 Provisions for possible loan losses 4, ,413 Net interest income after provisions 112, ,041 Net commission income 91,024 34, ,256 Result from hedge accounting Trading result Result from financial investments 2, ,838 Administrative expenses 145,381 27, ,579 Other operating result 4, ,221 Pre-tax profit 65,131 7, ,779 Segment investments 5,094 3,610 8,704 Segment depreciation 9,034 2,556 11,590 Cost/income ratio 67.6% 78.1% 69.1% Segment income 317, ,077 of which external income 317, ,679 of which inter-segmental income Segment expenses 251, ,429 1) Previous year adjusted due to application of amended IAS 19 thousand 1.7. to ) B2C B2B Consolidation comdirect group total Net interest income before provisions 37, ,223 Provisions for possible loan losses 3, ,435 Net interest income after provisions 33, ,788 Net commission income 30,133 11, ,730 Result from hedge accounting Trading result Result from financial investments Administrative expenses 50,891 9, ,229 Other operating result 3, ,814 Pre-tax profit 17,441 2, ,712 Segment investments 1,910 1,380 3,290 Segment depreciation 3, ,449 Cost/income ratio 70.9% 80.4% 72.2% Segment income 102,066 38,293 of which external income 102,066 38,197 of which inter-segmental income 0 96 Segment expenses 84,625 36,022 1) Previous year adjusted due to application of amended IAS 19

24 22 The management focuses on two business lines: Business to Customer (B2C) and Business to Business (B2B). The segmentation carried out reflects the internal reporting of the comdirect group and corresponds to the management approach. The respective customer groups in particular constitute the main delimitation feature of the business segments. The B2C business segment comprises the activities of comdirect bank AG. These relate to services in brokerage, banking and advice in direct business with modern investors. The activities in the B2B business segment are carried out via ebase GmbH. Through its B2B partners, ebase offers comprehensive and tailored solutions for asset accumulation and investments. The figures for the B2B business segment were derived from the internal reporting of ebase GmbH and correspond to the contributions of ebase GmbH included in the income statement of the comdirect group. Following the application of the amended IAS 19 standard, interest effects from pensions and similar obligations are reported in net interest income rather than administrative expenses. The previous year s figures have been adjusted accordingly. Further information can be found in the Accounting standards section of these Notes. In the B2B business segment, interest income of 78 thousand (previous year: 398 thousand) was achieved as part of Treasury investments in the B2C business segment. The corresponding level of interest expenses was recorded in the B2C business segment. In both segments, segment assets and segment liabilities are not relevant management indicators within the meaning of IFRS 8 and are therefore not shown in the table.

25 INTERIM FINANCIAL STATEMENTS 23 Income statement of comdirect group according to IFRS on a quarterly comparison thousand ) 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Interest income 73,619 68,010 63,258 58,983 54,078 53,929 54,651 Interest expenses 31,813 30,585 26,035 24,454 20,602 19,694 18,345 Net interest income before provisions 41,806 37,425 37,223 34,529 33,476 34,235 36,306 Provisions for possible loan losses , Net interest income after provisions 41,687 36,566 33,788 34,512 33,382 33,792 36,032 Commission income 72,418 68,888 71,456 74,253 77,293 79,746 80,010 Commission expenses 28,247 29,533 29,726 33,093 32,050 33,243 33,007 Net commission income 44,171 39,355 41,730 41,160 45,243 46,503 47,003 Result from hedge accounting Trading result Result from financial investments 1, ,296 1, Administrative expenses 59,321 53,029 60,229 63,332 63,751 63,565 60,197 Personnel expenses 16,181 17,274 17,499 17,213 17,231 17,969 18,392 Other administrative expenses 39,650 32,104 38,281 42,214 42,307 41,211 37,350 Marketing expenses 15,775 9,679 12,800 17,746 15,606 12,542 11,052 Communication expenses 1,765 1,933 2,613 2,479 1,805 4,512 2,147 Consulting expenses 3,045 2,956 3,322 2,375 3,396 3,612 3,828 Expenses for external services 8,446 9,120 10,620 9,908 9,903 10,691 10,194 Sundry administrative expenses 10,619 8,416 8,926 9,706 11,597 9,854 10,129 Depreciation of office furniture and equipment and intangible assets 3,490 3,651 4,449 3,905 4,213 4,385 4,455 Other operating result 1, ,814 6, Pre-tax profit 29,217 23,850 19,712 19,480 22,899 19,029 23,562 Taxes on income 7,170 6,367 5, ,048 4,743 6,438 Net profit 22,047 17,483 14,358 19,451 16,851 14,286 17,124 1) Previous year adjusted due to application of amended IAS 19

26 24 Fair value of financial instruments The table below shows the fair values of balance sheet items compared with their book values. In accordance with IFRS 13, the fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. thousand Fair value Book value Loans and receivables Cash reserve 952, , , ,760 Claims on banks 8,869,783 8,156,766 8,728,622 7,929,839 Claims on customers 181, , , ,596 Total 10,004,341 8,911,122 9,863,180 8,684,195 Available for sale financial assets Financial investments 3,780,558 3,709,668 3,780,558 3,709,668 Total 3,780,558 3,709,668 3,780,558 3,709,668 Liabilities measured at amortised cost Liabilities to banks 195,938 1, ,938 1,901 Liabilities to customers 12,898,461 11,793,702 12,862,757 11,737,489 Total 13,094,399 11,795,603 13,058,695 11,739,390 Other Trading assets Negative fair values from derivative hedging instruments 3,300 5,278 3,300 5,278 The procedure to determine the fair value of claims on and liabilities to customers has been changed and is now based on the legal maturity rather than the economic holding period. The previous year s figures have been adjusted accordingly to ensure better comparability.

27 INTERIM FINANCIAL STATEMENTS 25 Fair value hierarchy The following table contains the full portfolio of assets and liabilities that have been measured at fair value. The fair values are also classified into three levels: Level 1: Prices quoted in active markets (not adjusted) for identical assets or liabilities. Level 2: Exemplary prices calculated with the exception of the quoted prices included in Level 1, which can be observed for assets or liabilities either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Exemplary prices calculated for assets or liabilities, which are not based on observable market data (non-observable input data). thousand Total Level 1 Level 2 Level 3 Available for sale financial assets Financial investments 3,780,558 2,327,022 1,453,536 0 Other Trading assets Negative fair values from derivative hedging instruments 3, ,300 0 Total 3,783,957 2,327,022 1,456,935 0 thousand Total Level 1 Level 2 Level 3 Available for sale financial assets Financial investments 3,709,641 1,785,826 1,923,815 0 Other Trading assets Negative fair values from derivative hedging instruments 5, ,278 0 Total 3,714,919 1,785,826 1,929,093 0 In the reporting period, we reclassified securities with a fair value of 53m from Level 1 into Level 2 as no quoted market prices were available. Conversely, securities with a fair value of 292m were reclassified from Level 2 and into Level 1 as there is an active market due to increased market activity.

28 26 > Accounting standards and other information Accounting standards The interim financial statements of the comdirect group as of 30 September 2013 were prepared pursuant to Section 37x (3) in conjunction with Section 37w (2)(3) and Section 37y No. 2 of the German Securities Trading Act (WpHG) in accordance with International Accounting Standard 34 (IAS 34) approved and published by the International Accounting Standards Board (IASB). The first-time application of amended IAS 19 Employee benefits as of 1 January 2013 results in a retroactive adjustment of the financial statements for Gains and losses from changes in actuarial parameters are now reported in other comprehensive income for the period in the statement of comprehensive income. In equity, this leads to a direct change in retained earnings; there is no reclassification into the income statement at a later date. Furthermore, in accordance with amended IAS 19, net interest costs are to be calculated if pension obligations are financed through plan assets. This refers to calculating the interest on the net liability or net asset (defined benefit obligation minus fair value of plan assets) using a uniform interest rate. Under the previous standard, the rules for determining the interest rate for discounting the liability differed from those for determining the expected return on plan assets. In the income statement, since 1 January 2013, interest income and expenses from pensions and similar obligations and their associated plan assets are no longer reported in personnel expenses but in net interest income. The respective figures for previous year periods have been adjusted accordingly. The changeover led retroactively to an increase in provisions for pensions and similar obligations of 5,635 thousand as of 31 December Allowing for the resultant income tax claims of 1,529 thousand, the resultant adjustment to retained earnings amounted to 4,106 thousand. In the income statement for the period 1 January 2012 to 30 September 2012, interest expenses increased by 614 thousand, while administrative expenses reduced by 554 thousand. Application of IFRS 13 Fair value measurement has been mandatory since 1 January Its implementation did not result in any material changes in the balance sheet and income statement of the comdirect group. The application of IFRS 13 calls for additional disclosures in the Notes in interim financial reporting as well. The procedure to determine the fair value of claims on and liabilities to customers has changed. Instead of the economic holding period, this is now based on the legal maturity, thus producing a more accurate presentation. The previous year s figures have been adjusted accordingly to ensure better comparability. Where market prices were available, these are used for the fair value measurement of assets and liabilities. In the event that no market prices are available, measurements are carried out using internal measurement models, especially the DCF method. The measurement parameters used essentially included interest rates for matching maturities and take account of the issuer-specific and counterparty-specific default risk. Where measurement is determined using prices in active markets, the assets and liabilities are allocated to level 1. In the event that no prices are directly available and other parameters observable in the market are used for the measurement, the assets and liabilities are allocated to level 2. All assets and liabilities where measurement is based on key parameters that are not observable in the market are disclosed in level 3. Allocation to the levels is reviewed at the end of each quarter. Apart from the changes outlined above, the same measurement and calculation methods were applied as for the financial statements of the comdirect group as of 31 December 2012.

29 INTERIM FINANCIAL STATEMENTS 27 Consolidated companies There were no changes in the comdirect group s scope of consolidation during the reporting period. Notes to the financial statements The interim management report contains details of the earnings situation and assets of the comdirect group as well as information regarding the macroeconomic environment. Statement of comprehensive income The table shows the comprehensive income for the period after tax. The following breakdown indicates the tax amounts included. Other comprehensive income for the period ( thousand) Before tax Tax After tax 1 January to 30 September 2013 Actuarial gains and losses 1, Changes in the revaluation reserve 39,994 9,784 30,210 Other comprehensive income for the period 38,749 9,455 29,294 1 January to 30 September 2012 Actuarial gains and losses 2, ,816 Changes in the revaluation reserve 59,270 15,332 43,938 Other comprehensive income for the period 56,775 14,653 42,122 Other comprehensive income for the period ( thousand) Before tax Tax After tax 1 July to 30 September 2013 Actuarial gains and losses Changes in the revaluation reserve 3,920 1,148 2,772 Other comprehensive income for the period 3,853 1,130 2,723 1 July to 30 September 2012 Actuarial gains and losses 1, ,053 Changes in the revaluation reserve 17,285 4,182 13,103 Other comprehensive income for the period 15,838 3,788 12,050 Result from hedge accounting and trading result As of the reporting date, interest rate swaps with a nominal volume totalling 118m (previous year: 118m) were held to hedge interest rate-related changes in the market value of several bonds with the same volume and same maturity. Where these instruments meet the requirements of IAS 39, hedge accounting is applied (micro fair value hedges). In addition, as of the reporting date comdirect held forward rate agreements with a nominal volume totalling 500m (previous year: 0m). These are used to manage the interest book. As of the reporting date, the above produced a result from hedge accounting of 8 thousand (previous year: 2 thousand) and a trading result of 152 thousand (previous year: 0 thousand). Asset impairments The result from financial investments in the current financial year includes impairment losses of 288 thousand (previous year: 499 thousand). No impairments were recognised in the third quarter (previous year: 82 thousand). Provisions In the balance sheet, the provisions for possible loan losses are deducted from the respective receivables. The provisions amounting to 2,135 thousand (31 December 2012: 2,041 thousand) relate in full to claims on customers. Provisions were also recognised for risks relating to unutilised credit lines of 4,587 thousand (31 December 2012: 4,627 thousand).

30 28 Changes on the Board of Managing Directors Holger Hohrein (42) joined the Board of Managing Directors of comdirect bank AG as a new member with effect from 1 October this year. He is the successor to the previous CFO and HR Director Christian Diekmann (47), who stepped down from office on 30 September. In addition to Finance, Controlling & Risk Management, Hohrein is responsible for Human Resources, Business Development, Compliance & Money Laundering Prevention as well as B2B business. He is also Chairman of the Supervisory Board of ebase. Related party disclosures The parent company of comdirect bank AG is Commerz Bankenholding Nova GmbH, Frankfurt/Main. The ultimate parent company is Commerzbank AG. comdirect bank AG uses services provided by Commerzbank AG through a general agreement effective as of 1 January 1999, as well as through service level agreements conducted separately on this basis. On 6 August 2007, a master agreement was concluded with Commerzbank AG which supersedes the existing general agreement. The individual contracts concluded under the general agreement remain in place until expiry of their respective term. New individual contracts will be concluded based on this master agreement. As part of its money and capital market transactions, comdirect bank AG consigns investment activities to Commerzbank AG and its affiliated companies. These transactions are collateralised in return for payment under an assignment agreement. For placement activities for the benefit of ebase GmbH, Commerzbank AG receives sales and sales follow-up commission. As part of its processing and management services for custody accounts, ebase GmbH procures support services from Commerzbank AG. During the reporting period, there were financial relations with related natural persons (members of the Board of Managing Directors and the Supervisory Board and members of their immediate family), including through the use of products of comdirect group as part of the normal product and service offering. All products and services were carried out at normal third party terms and conditions and are of secondary importance for the company. The related parties did not accrue any unjustified advantage from their position with the comdirect group, nor did the comdirect group suffer any financial losses. For further information, please see note (26) in our annual report for financial year Quickborn, 22 October 2013 The Board of Managing Directors Dr. Thorsten Reitmeyer Holger Hohrein Martina Palte