> Half-year report Investing in growth convincing with performance

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1 > Half-year report 2013 Investing in growth convincing with performance

2 > Key figures of comdirect group Change in % Customers, assets under custody and key products comdirect group* Customers number 2,770,135 2,755, Custody accounts number 1,690,676 1,702, Total assets under custody in million 50,748 48, of which: portfolio volume in million 38,233 37, of which: deposit volume in million 12,515 11, business-to-customer (B2C) business line Customers number 1,756,121 1,716, Custody accounts number 820, , Current accounts number 961, , Tagesgeld PLUS ( call money plus ) accounts number 1,392,041 1,344, Total assets under custody in million 29,302 27, of which: portfolio volume in million 16,925 16, of which: deposit volume in million 12,377 11, Credit volume in million business-to-business (B2B) business line Customers number 1,014,014 1,038, Custody accounts number 870, , Total assets under custody in million 21,447 20, of which: portfolio volume in million 21,309 20, of which: deposit volume in million Orders and order volume Q1-Q2 Q1-Q2 Executed orders number 9,221,751 8,681, of which: B2C number 5,029,616 4,497, of which: B2B number 4,192,135 4,183, Average order activity per custody account (B2C annualised)** number Order volume per executed order (B2C)** in 5,625 4, Earnings ratios Q1-Q2 Q1-Q2 1) Net commission income in thousand 91,746 83, Net interest income before provisions in thousand 67,711 79, Administrative expenses in thousand 127, , Pre-tax profit in thousand 41,928 53, Net profit in thousand 31,137 39, 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 13,205 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 1,208 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, Some banks, it seems, have only just discovered the customer. In the competition for deposits, major advertising campaigns are now touting benefits and features that may well be new for some institutions, but elsewhere have already been a matter of course for a long time. A feefree current account without hidden costs? Convenient banking via smartphone? Cash withdrawals free of charge in Germany and abroad? Such promises elicit a tired smile from around 1.8 million bank customers in Germany, since they have already been enjoying all of these services for a long time with comdirect bank. In the competition for customers, we stand out through our clear performance advantages and make these the focus of our marketing. We have increased our spending on advertising in the first half of the year, but have done so judiciously. Because when there is so much noise on all advertising channels as at present, becoming even louder is not a good investment for our shareholders. Instead, in the future we will continue to convince with more performance, investing in products and platforms, as well as in efficient teams for Customer Services and advice. With the phototan, introduced in April, we have made direct banking even simpler and more secure. The completely revised comdirect Informer is now even more user-friendly for securities investors. Via webinars, we also convey elementary financial knowledge in a contemporary format, helping customers stay well informed in order to make the right investment decisions. When the performance promise is convincingly honoured, the advertising sometimes emerges of its own accord and indeed from a persuasive source: our customers. This is demonstrated by our series victory as Deutschlands Beste Bank ahead of all other direct and branch banks in addition to a very strong willingness to recommend us to others. Thanks to the high regard our customers have for the company, the comdirect group s key value drivers all posted gains at the end of the first six months of The deposit volume climbed by 795m, we recorded net inflows of 645m in the custody accounts and at 1.76 million the number of B2C customers reached a record high. As expected, the number of customers and custody accounts declined slightly in the B2B business line, but at the same time the preconditions for achieving significant increases via new partners also improved. With ebase s white label-type open custody account, intermediaries can offer their customers the full spectrum of investments. Another step on the path to becoming the best B2B bank.

4 2 comdirect will also invest in growth in the second half of the year. The focus continues to centre on products in banking and brokerage as well as an effective banking platform. We will maintain our marketing budget at a level that permanently ensures the appeal of the comdirect and ebase brands and sends out a powerful message in new customer business. Our spending on growth is aimed at comprehensively exploiting the major opportunities in the direct banking market for the benefit of our shareholders. The price for this is a decline in the result in the current year. At the end of the first six months, administrative expenses exceeded the respective figure for 2012 by 15m. In addition to growth investments, regulatory-related costs also had an impact, such those relating to the switch to the SEPA procedure. Nevertheless, pre-tax profit amounted to a respectable 42m (previous year: 53m), supported by a good trading environment and non-recurring effects in Treasury. On this basis, the comdirect group expects pre-tax profit of more than 65m for financial year Sincerely yours, Dr. Thorsten Reitmeyer

5 INTERIM MANAGEMENT REPORT 3 > Interim management report as of 30 June 2013 Market environment Overall assessment of market environment The economic framework conditions for the comdirect group s activities in direct banking remained challenging in the first half of The fresh cut in key lending rates by the European Central Bank in May further increased the pressure on interest margins in the deposit business. However, the recently observed rise in yields in the bond markets and the first signs that the US central bank, the Fed, will adopt a more restrictive monetary policy in the future, could signal an end to the phase of historically low interest rates in the medium term. The unattractive deposit interest rates in the eurozone led to greater investor interest in equities and funds in the reporting period. Brokerage benefited from this in the form of growth in the number of orders and rising commission income. Likewise, favourable interest rates had a positive impact on demand for building finance products and consumer loans. Macroeconomic framework conditions Initial figures show that the global economy is only slowly regaining momentum. Growth markets such as China and Brazil fell short of expectations. Estimates for 2013 as a whole assume a similarly high growth rate to that of At the start of the year, the eurozone remained mired in a mild recession. So far, the leading economic indicators do not point to a recovery over the rest of the year. The absence of a reform breakthrough in the peripheral countries, soaring unemployment and the fading will to implement budget consolidation are depressing business and consumer confidence. Framework conditions for banking To stimulate the faltering economy, the European Central Bank (ECB) lowered its refinancing rate to 0.5% in May. Experts consider another interest rate cut this year not unlikely. The deposit interest rate for ECB deposits, which currently stands at 0%, might then even become negative. Three-month EURIBOR amounted to 0.21% on average for the quarter, significantly below the corresponding figure for 2012 (0.87%). Risk premiums for peripheral euro countries fell temporarily in the wake of the interest rate cut. In the EU crisis states, companies seeking capital should also benefit from falling interest rates for corporate bonds. On the whole, yields on euro government bonds moved closer to each other in the second quarter, as top-rated paper, such as German government bonds, have seen yields rise substantially since May. Nevertheless, comdirect s Treasury portfolio, which focuses on low probabilities of default, was characterised by declining yields overall on average for the first half of the year, due in part to the reinvestment of maturing securities at less favourable interest rates. All in all, margins in the deposit business remained under pressure. Framework conditions for brokerage Given the lack of high-yield alternatives, more investors invested in equities and related securities such as exchange traded funds (ETFs) and investment funds. Particularly high-dividend stocks were in demand. The DAX reached new highs in the second quarter, only to lose most of these gains in recent weeks. Nevertheless, the index closed up 2.1% on the level at the end of Number of orders on Deutsche Börse* shares traded (in billion) Despite greater volatility, trading in the German spot 14.5 market (XETRA and Frankfurt) was down on the previous 11.8 year. In terms of value, the trading volume declined by 5.7%. Equities were especially affected and the number of orders here decreased by 22.9% year-onyear (six months). In contrast, exchange traded index 1.4 Q Q H H1 13 ETF/ETC/ETN Equities funds ETFs as well as exchange traded commodities (ETC) and notes (ETN) recorded a rise in the number of Source: Deutsche Börse AG * XETRA and Frankfurt Stock Exchange orders of 3.9%. In derivatives trading (Euwax and Scoach), stock exchange turnover was around 8.8% lower than the respective figure for 2012.

6 4 The retail funds included in BVI statistics posted inflows of 10.5bn in the first four months of 2013, more than double the figure in the same period in Bond funds and mixed funds were particularly popular with investors, while equity funds, open-ended property funds and alternative investment funds registered higher net inflows than in the previous year. Framework conditions for advice The persistently low financing interest rates mean that the market situation for Baufinanzierung PLUS remains positive. comdirect s Building Finance Sentiment Index, which is calculated in conjunction with opinion research institute Forsa, reached points at the start of July 2013 (April 2013: points). A value greater than 100 indicates a high level of willingness to take out building finance loans. Industry and regulatory framework conditions With the adoption in May of the Act Implementing the EU Directive on Alternative Investment Fund Managers (AIFM-UmsG), new regulations apply to the redemption of units in open-ended property funds. The allowance of 30 thousand per half year specified in the draft act of February now only applies to investors who invest before 23 July However, in the new Act redemption is no longer limited to one day a year. Units which are held for the period of two years specified in the Act can thus be redeemed at any time. 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 With its attractive features and benefits relating to the account and card, the comdirect group recorded growth again in the first half of 2013 in spite of difficult conditions for deposit business. 39 thousand new B2C customers ensured inflows, especially in current accounts. Despite the recent renewed fall in prices, portfolio assets rose as well, which was also due to increased securities buying by our customers. Development in the number of orders considerably outperformed the market. Net commission income was significantly up year-on-year and largely offset the market-related decrease in net interest income. The decline in pre-tax profit of 21.0% as against the very high figure for the first half of 2012 is in line with our expectations. Although earnings have grown overall, expenses have risen because of the investment in growth which was implemented as planned. These related to marketing on the one hand, and to expenses for the further development of products and the banking platform on the other. Expenses remained high in the second quarter, while earnings did not match the figure for the first quarter due to normalisation of the result from financial investments. Further intensification of the growth initiatives is scheduled for the second half of Consequently, even though our earnings expectations are ambitious, we expect the result to be considerably lower than in the first six months. Business performance The number of customers in the comdirect group rose slightly in the first half of 2013 to 2,770.1 thousand (end 2012: 2,755.3 thousand) as a result of growth in the B2C business line. The number of customers here increased by 2.3% to 1,756.1 thousand (year-end 2012: 1,716.8 thousand). With a gain of 4.0% overall, the rise in the number of custody accounts, current accounts and Tagesgeld PLUS accounts held with us was again higher than the increase in customer numbers.

7 INTERIM MANAGEMENT REPORT 5 Number of customers of comdirect group (in thousand) Total assets under custody of comdirect group (in billion) 1,057 1,038 1, ,664 1,717 1,756 Customers B2B Customers B2C Deposit volume Portfolio volume The continually strengthening interest in comdirect products is due to the attractive features and terms and conditions and this was again confirmed by major accolades in the first half of the year. comdirect was named the overall winner of the extensive banking test conducted by finance magazine uro and was thus Deutschlands Beste Bank On behalf of uro, in the period January to March 2013 S.W.I. Finance Institut analysed various product areas such as current accounts, brokerage, loans and building finance as well as customer service and advice at a total of 58 banks. The results were then weighted with the findings of the customer survey carried out by uro. comdirect impressed in particular with its extensive product range and great customer service. Furthermore, our continuing investment in brokerage has paid off: comdirect took first place once more as the best online broker in the Brokerwahl 2013 awards. In the B2B business line, the number of end customers declined again slightly in the second quarter. Compared with the year-end, the number of customers was down by 2.4% to 1,014.0 thousand (year-end 2012: 1,038.5 thousand). Assets under custody in the comdirect group climbed by 3.9% in the first six months of 2013 to 50.75bn (end 2012: 48.85bn). Of this, 38.23bn (end 2012: 37.13bn) was attributable to the portfolio volume. In the B2C business line, this reflected increased securities buying by our customers, while the rise in the B2B business line stemmed mainly from price effects. With 1.69 million custody accounts (end 2012: 1.70 million), the comdirect group remains the market leader in online securities business for modern investors in Germany. At 12.52bn, the deposit volume was significantly higher than the level at the end of 2012 ( 11.72bn). This growth reflects inflows into new accounts, as well as rising balances in settlement accounts resulting from sales of securities. Earnings situation As expected, at 41.9m pre-tax profit was down on the previous year s high figure of 53.1m. On the one hand, the decrease is due to lower net interest income, although this was more than compensated by the upturn in net commission income and the result from financial investments. On the other, earnings, which had climbed 2.0% to 169.8m, were countered by a disproportionately strong increase in administrative expenses of 13.3% to 127.3m, reflecting the comdirect group s growth initiatives. The cost/income ratio increased from 67.6% in the first half of 2012 to 75.0%. Based on the pre-tax profit and the average equity in the reporting period (excluding the revaluation reserve), the return on equity amounted to 16.4% (previous year: 20.6%). The comdirect group s net profit for the period after tax stood at 31.1m (previous year: 39.5m), which equates to earnings per share of 0.22 (previous year 0.28). Net interest income and provisions With market interest rates still low, net interest income before provisions in the period April to June of 34.2m was approximately on a par with the level in the first quarter of However, the decline versus the first half of 2012 ( 79.2m) amounted to 14.5%. The decrease in interest income was partly absorbed by renewed adjustments to deposit interest rates in the second quarter, although the full effect of this adjustment will not be felt until the third quarter onwards.

8 6 Pre-tax profit of comdirect group (in million) 53.1 Earnings after tax per share (in ) Q1 13 Q2 13 H1 12 H1 13 Q1 13 Q2 13 H1 12 H1 13 At 0.5m, provisions continued to remain low and were down on the previous year s figure of 1.0m. After provisions, net interest income for the comdirect group stands at 67.2m (previous year: 78.3m). Result from financial investments The increased result from financial investments of 8.7m in the first six months (previous year: 2.2m) stemmed primarily from the disposal of securities on the part of the special funds in the first quarter. This was because 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 in the second quarter and amounted to 1.4m. Trading result and result from hedge accounting As in the previous year ( 4 thousand), the result from hedge accounting was immaterial at 11 thousand and reflects measurement effects from effective fair value hedges. These relate to the hedging of individual positions in the Treasury portfolio against a loss in value using interest rate swaps. The nominal volume of these interest rate swaps totalled 118m as of 30 June At 59 thousand, the trading result was also of minor importance. It stems from the measurement of three forward rate agreements (FRA) concluded in the first half of 2013 with an overall nominal volume of 350m. In the previous year, there was no trading result to report, as no financial derivatives were used outside hedge accounting to manage the interest book. Net commission income Net commission income of 91.7m, was significantly higher than the previous year s figure ( 83.5m). The sharp rise of 9.8% results in particular from an upturn in the number of trades in the B2C business line, as well as increased sales follow-up commission in the funds business due to the higher average fund volume. 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 1.5m (previous year: 1.4m) includes income from the reversal of some provisions and accruals. The figure for the previous year additionally included income from administrative services carried out for another company in the Commerzbank Group. Administrative expenses The significant rise in administrative expenses of 13.3% to 127.3m (previous year: 112.4m) reflects the comdirect group s growth expenses. At 35.2m, personnel expenses surpassed the previous year s figure ( 33.5m) by 5.2%. The increase is essentially due to the higher number of employees required to implement the growth initiatives.

9 INTERIM MANAGEMENT REPORT 7 Net commission income and net interest income (in million) Administrative expenses (in million) Q1 13 Q2 13 H1 12 H1 13 Net interest income before provisions Net commission income Q1 13 Q2 13 H1 12 H Depreciation Other administrative expenses Personnel expenses Other administrative expenses climbed 16.4% to 83.5m (previous year: 71.8m), mainly as the result of higher expenses for marketing and communications as well as external services. These too stemmed in large part from comdirect's growth projects. The focus in the second quarter was on product development and improving IT infrastructure and the banking platform. Higher regulatory costs additionally had an impact. Depreciation increased by 20.4% compared with the previous year ( 7.1m) to 8.6m. The rise stems primarily from the extension and modernisation of IT infrastructure, expansion of server capacity and the acquisition of software. B2C business line Business development in brokerage Trading by our customers was even more active in the second quarter than in the first three months of the year. This was partly because of improved trading terms and conditions and special offers: for instance, in addition to our highly popular FondsDiamanten funds, which are available without any front-end load, since the second quarter we have been offering all other funds at a discount of at least 50% on the front-end loads. We have abolished limit and order amendment fees. In addition, using real-time prices, which are available free of charge, is now more convenient and unrestricted. The ongoing flat-fee campaign in OTC trading was continued due to the high level of customer demand. Moreover, on the May public holidays, comdirect offered nearly all Commerzbank certificates and warrants without order fees in LiveTrading. Factor certificates from Commerzbank could be traded fee-free on the Scoach exchange in April and May. We gained additional brokerage customers through a new custody account transfer campaign that paid a bonus for transferring fund holdings. Most of our customers are self-directed investors, who make their financial decisions without advice. It is therefore all the more important that they have access to high quality information. For instance, comdirect customers can participate in our free online seminars (webinars) and a new series of webinars on current financial topics was launched in June. We invited particularly active traders to our top trader events held in eight major German cities. In addition, a nationwide roadshow started in Germany in April aimed at investors interested in CFDs (contracts for difference). Our Informer financial information tool was completely revised in the second quarter, making it much easier to use and significantly more legible. To strengthen investing as a whole, comdirect is also interested in high quality investor information from third party providers. This is the reason why we recognised independent, expert and comprehensible financial blogs with our finanzblog award for the third year at the re:publica conference in Berlin on 6 May.

10 8 Executed orders B2C (in million) Portfolio volume B2C (in billion) Q1 13 Q2 13 H1 12 H Securities trading The number of executed orders was up again on the already very active first quarter, with the number of orders surpassing the first half of 2012 by 11.8% at 5.03 million. Securities turnover totalled 22.85bn, corresponding to growth of 32.2% year-on-year. As the comdirect Brokerage Index shows, the focus was mainly on equities, certificates and warrants; we also registered strong interest in high yield corporate bonds. With regard to funds and fixed-income securities, selling continued to predominate although the picture brightened somewhat. Portfolio volume The portfolio volume in the B2C business line increased in the first half of the year by 0.64bn to stand at 16.92bn as of 30 June 2013 (end 2012: 16.29bn). Nearly all of this rise was attributable to net securities investments by customers, while price effects had a very negligible impact. The number of custody accounts climbed by 1.7% in the reporting period to thousand (end 2012: thousand). Business development in banking Deposit business The fee-free current account with satisfaction guarantee benefited in the second quarter in particular from our customers-attract-customers campaign in the spring. Compared with the end of 2012 (901.4 thousand), the number of current accounts increased by 60.0 thousand to thousand. The number of Tagesgeld PLUS accounts, usually opened in conjunction with a current account, rose to 1,392.0 thousand (end 2012: 1,344.9 thousand). To support this growth, we are continually improving the features offered on our accounts and cards. The photo- TAN procedure has been available since April 2013 and provides a swift, secure and easy-to-use authorisation procedure in online banking. Here the TAN is encrypted via a colour image and displayed on the customer's smartphone or reading device separately from online banking. Despite a difficult interest rate environment for financial investment products and the resultant adjustments of our interest rates, the deposit volume climbed to 12.38bn (end 2012: 11.62bn) as a result of the increased number of current accounts and Tagesgeld PLUS accounts. The rise amounted to 0.75bn, with 88% of this attributable to the second quarter an indication of the further improvement in benefits and features and the growing awareness of our deposit products. We also achieved net inflows in fixed-term accounts. Development 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. For return-oriented savers, we updated our fest & fonds programme, which offers a mixture of fund and fixed-term investments. As of 30 June 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. Lending and placement business The volume of utilisation of loans against securities and draws on overdraft facilities by private customers amounted to 181m, up by 4.5% on year-end 2012 ( 173m).

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 The volume of loans against securities increased by 2.7% due to greater utilisation of settlement accounts for securities investments in the first six months of the year. The volume of overdrafts exceeded the figure at yearend 2012 by 12.5% as a result of growth in the number of current accounts and Visa cards. 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 Historically low interest rates and the sustained high demand for property as a crisis-proof financial investment continued to ensure a strong level of interest in our building finance offerings. The volume of building finance placed was approximately on a par with the previous year at around 240m. 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 the first half of the year, our Anlageberatung PLUS investment advice service was being used by over 2,400 customers (end 2012: around 2,160 customers). Assets under advice totalled 185m (end 2012: 157m). Earnings situation in the B2C business line In the first half of 2013, the B2C business line achieved pre-tax profit of 37.1m, which corresponds to a decline of 22.2% compared with the first six months of 2012 ( 47.7m). The cost/income ratio rose from 66.0% to 74.2%. The earnings components related to the comdirect group s deposit business net interest income, trading result, result from financial investments and the result from hedge accounting stem mainly from the B2C business line and are thus explained at group level (see page 6). Net commission income climbed by 11.1% to 67.6m (previous year: 60.9m) 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 exceeded the figure for the previous year ( 94.5m) by 14.5% at 108.2m. The other operating result of 1.3m was approximately on a par with the previous year s level. B2B business line Business development in the B2B business line Over the past few years, ebase has developed to become a B2B full-service bank with a comprehensive range of products and services, and since July this has been reflected in its company name as well. European Bank for Fund Services GmbH has become European Bank for Financial Services GmbH, and continues to be known as ebase for short.

12 10 ebase is thus positioning itself as a broad-based financial services provider that not only offers one of the leading platforms for investment custody accounts in Germany, but also provides accounts, loans and access to securities business. For example, since April 1 an open custody account has been available to the end customers of our B2B partners, which they can now use to trade and hold all of the main types of securities such as equities, bonds, certificates and warrants. Previously the range of securities was limited to funds and ETFs. The custody account is also available as a white label variant. As in previous years, the decrease in the number of ebase customers of 24.5 thousand in the first six months of 2013 to 1,014.0 thousand is partly due to the cancellation of custody accounts for capital-building payments following expiry of the corresponding VL contracts. Custody account customers and portfolio volume The number of custody account customers declined by 2.8% in the first half of 2013 to thousand (end 2012: thousand). The portfolio volume increased to 21.31bn (end 2012: 20.85bn) as a result of the positive movement in prices in particular. Total assets under custody B2B (in billion) Accounts and deposit volume At 138m, the deposit volume was higher than at the end of 2012 ( 97m). The rise resulted mainly from fund selling and the associated credits to settlement accounts linked with the custody accounts (Flex account) Earnings situation in the B2B business line At 4.8m, pre-tax profit in the B2B business line nearly matched the previous year s figure ( 5.4m). The increase in net commission income was countered by higher administrative expenses. The cost/income ratio amounted to 79.9% (previous year: 76.9%). Net commission income rose by 6.6% to 24.1m, 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 19.1m (previous year: 17.9m) was mainly attributable to the increase in personnel expenses and higher other administrative expenses. 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. 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 initiatives are also reflected in the 18.8% increase in investments to 6.4m (previous year: 5.4m). The sharp rise in the B2C business line of 42.0% essentially stems from the revision of the website as well as the acquisition of hardware. In the B2B business line, the investment volume was down 14.5% on the respective figure for 2012, which was dominated by further development of custody account software amongst other measures.

13 INTERIM MANAGEMENT REPORT 11 Balance sheet structure of the comdirect group The balance sheet of the comdirect group increased in the first half of 2013 by 0.76bn to 13.20bn as a result of growth in the deposit volume. On the assets side, there was a rise in particular in the credit balances held with Deutsche Bundesbank, which are included in the cash reserve. Claims on banks climbed slightly to 8.01bn (end 2012: 7.93bn) in the first half of the year. This was primarily due to the reinvestment of some of the increase in deposits via promissory notes. The volume of financial investments rose by 2.6% to 3.81bn (end 2012: 3.71bn). This line item comprises bonds and Pfandbriefe as well as floating rate notes. As in the previous year, equities and mutual funds continued to play a minor role in the Treasury portfolio. Claims on customers increased to 207.5m (end 2012: 202.6m). This was because of the greater use of overdrafts. In addition, there was the effect resulting from the moderate rise 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 12.53bn (end 2012: 11.74bn). Provisions amounted to 43.2m. 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 524.1m (end 2012: 581.6m). The revaluation reserve included in this figure reduced by 27.4m compared with the end of 2012 as a result of the development of the market and realisation of price gains. The distribution of the dividend also contributed to the decrease 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 629.0m (previous year: 178.1m). The cash flow from investment activities stood at 6.4m (previous year: 5.4m) 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). The share In the second quarter, comdirect shares were not able to build on their positive performance of the first three months. The share price was down by around 5.8% on the level at the end of March and closed the first six months at This is partly due to the technical ex-dividend markdown following the annual general meeting on 16 May The distributable profit of comdirect bank AG approved in accordance with the German Commercial Code (HGB) of 62.1m, equating to 0.44 per share, was paid out in full. Development of comdirect share price to (in ) 7.89 January February March April May June 7.71 comdirect share SDAX Daxsector Financial Services Performance Index Source: Bloomberg; indices normalised to the comdirect share price as of year-end 2012

14 12 Taking the dividend payment into account, our shareholders achieved a total return of 3.3% in the first half of The shares therefore underperformed the SDAX (10.4%) and the DAXsector Financial Performance Index (4.2%). At 48.6 thousand on average, the number of units traded per day was below the corresponding figure for The market capitalisation dropped to 1,088.8m (as of 28 June 2013) % of the share capital was represented at the annual general meeting and all items on the agenda were passed with majorities of between 97.08% and 99.99%. The shareholders were able to follow the entire annual general meeting with sound and images online and cast their votes in real time via an innovative procedure, as well as view the attendance register electronically. comdirect also presented the company at roadshows in London and Paris in May. Data and key figures of the share H 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 Designated sponsor Commerzbank AG Key figures H Average daily turnover in units XETRA Frankfurt Other stock exchanges Opening quotation XETRA ( ) 7.90 Highest price XETRA ( ) 2) 8.67 Lowest price XETRA ( ) 2) 7.33 Closing quotation XETRA ( ) ,479 4,326 2,810 48,615 Shareholder structure 81.13% Commerzbank AG 1) 18.87% Free float Market capitalisation ( ) 1,088.8m Earnings per share 0.22 Total shareholder return 3) 3.3% 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 Employees The number of employees increased to 1,208 in the first six months of 2013 (end 2012: 1,176). In the B2C business line, the number climbed to 971 (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 237 (end 2012: 231 employees). Number of employees of comdirect group To attract qualified young staff to comdirect, in June 2013 we again participated in the Hamburg Company Tour. A total of 60 economics students took advantage of the opportunity to talk to interns, graduates and young professionals at comdirect and gained an insight into the different career paths and entry options Business line B2B Business line B2C

15 INTERIM MANAGEMENT REPORT 13 Risk report The risk position of the comdirect group is essentially unchanged compared with the presentation in the 2012 annual report. The risk report can be found on pages 57 to 66 of the annual report, while note (56) regarding the risk reporting of financial instruments is on pages 126 to 130. 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). Should the economic situation in the eurozone fail to improve, a fresh cut in key lending rates by the ECB before the end of the year cannot be ruled out. The conditions for deposit business could thus further deteriorate. On the other hand, the recent rise in yields on bonds with very good ratings have improved the framework conditions for Treasury somewhat. However, it remains to be seen whether this development can be sustained. From today s perspective, for the second half of the year we expect a further slight decline in net interest income compared with the first six months, and a significant downswing is therefore likely to be recorded for the year as a whole. In the coming quarters, the result from financial investments 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. After a good start to trading year 2013, we continue to expect trading activity on the part of private customers to rise by comparison with the previous year, especially since the number of orders weakened in the second half of Coupled with projected higher sales follow-up commission due to higher prices on average for the year, we consequently expect net commission income for the year as a whole to improve. However, there is great forecast uncertainty when it comes to net commission income. In the second half of the year, administrative expenses are forecast to exceed the level for the first six months with a significant rise year-on-year. The present very high level of advertising activity by our competitors in online and direct banking testifies to the attractiveness of the market, but necessitates a further fine-tuning of our campaigns in order to achieve maximum attention. Growth expenses up to the end of the year will continue to relate to improving products, IT infrastructure and the banking platform. Through these, comdirect is creating a good basis for further customer growth in an increasingly competitive market. For 2013 as a whole, the comdirect group aims to achieve pre-tax profit of over 65m. Supplementary report No major events or developments of special significance have occurred since the reporting date of 30 June 2013.

16 14 > Income statement Income statement of comdirect group according to IFRS thousand 1.1. to to ) ) Interest income 108, ,629 53,929 68,010 Interest expenses 40,296 62,398 19,694 30,585 Net interest income before provisions 67,711 79,231 34,235 37,425 Provisions for possible loan losses Net interest income after provisions 67,174 78,253 33,792 36,566 Commission income 157, ,306 79,746 68,888 Commission expenses 65,293 57,780 33,243 29,533 Net commission income 91,746 83,526 46,503 39,355 Result from hedge accounting Trading result Result from financial investments 8,713 2,235 1, Administrative expenses 127, ,350 63,565 53,029 Other operating result 1,541 1, Pre-tax profit 41,928 53,067 19,029 23,850 Taxes on income 10,791 13,537 4,743 6,367 Net profit 31,137 39,530 14,286 17,483 1) Previous year adjusted due to application of amended IAS 19 Undiluted/diluted earnings per share 1.1. to to ) ) Net profit (in thousand) 31,137 39,530 14,286 17,483 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 31,137 39,530 14,286 17,483 Items not reclassified into the income statement Actuarial gains/losses Items which are reclassified into the income statement at a later date if necessary Changes in the revaluation reserve after tax 27,438 30,835 15, Comprehensive income 4,566 69,602 1,489 16,984 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.

17 INTERIM FINANCIAL STATEMENTS 15 > Balance sheet Balance sheet of comdirect group according to IFRS Assets thousand as of as of as of Cash reserve 1,112, , ,849 Claims on banks 8,013,512 7,929,839 6,711,938 Claims on customers 207, , ,691 Trading assets Financial investments 3,807,853 3,709,668 3,861,587 Intangible assets 29,766 31,809 30,579 Fixed assets 11,603 11,772 11,790 Current income tax assets 3,583 1,892 4,091 Deferred income tax assets 2, Other assets 16,048 6,204 5,896 Total assets 13,204,939 12,445,540 11,378,421 Liabilities and equity thousand as of as of ) as of ) Liabilities to banks 48,653 1,901 3,244 Liabilities to customers 12,527,512 11,737,489 10,723,015 Negative fair values from derivative hedging instruments 3,856 5,278 4,496 Provisions 43,226 45,305 42,165 Current income tax liabilities 10,433 21,625 14,527 Deferred income tax liabilities 0 6,320 2,725 Other liabilities 47,191 45,983 41,718 Equity 524, , ,531 Subscribed capital 141, , ,221 Capital reserve 223, , ,296 Retained earnings 100,333 99,466 91,613 Revaluation reserve 28,081 55,519 11,317 Consolidated profit ,084 Consolidated profit ,137 Net profit from 1.1. to ,137 Total liabilities and equity 13,204,939 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

18 16 > 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 ,137 31,137 Actuarial gains/losses Changes in the revaluation reserve 27,438 27,438 Comprehensive income from 1.1. to ,438 31,137 4,566 Profit distributions 62,137 62,137 Equity as of , , ,333 28,081 31, ,068 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 ,530 39,530 Actuarial gains/losses Changes in the revaluation reserve 30,835 30,835 Comprehensive income from 1.1. to ,835 39,530 69,602 Profit distributions 79,084 79,084 Equity as of , ,296 90,850 42,152 39, ,049 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).

19 INTERIM FINANCIAL STATEMENTS 17 In financial year 2013, comdirect bank 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 629, ,081 Cash flow from investment activities 6,403 5,403 Cash flow from financing activities 62,137 79,084 Cash and cash equivalents as of ,112, ,281 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 35,200 33,455 17,969 17,274 Other administrative expenses 83,518 71,754 41,211 32,104 Marketing expenses 28,148 25,454 12,542 9,679 Communication expenses 6,317 3,698 4,512 1,933 Consulting expenses 7,008 6,001 3,612 2,956 Expenses for external services 20,594 17,566 10,691 9,120 Sundry administrative expenses 21,451 19,035 9,854 8,416 Depreciation of office furniture and equipment and intangible assets 8,598 7,141 4,385 3,651 Total 127, ,350 63,565 53,029 1) Previous year adjusted due to application of amended IAS 19

20 18 Segment reporting by business line thousand 1.1. to B2C B2B Consolidation comdirect group total Net interest income before provisions 67, ,711 Provisions for possible loan losses Net interest income after provisions 67, ,174 Net commission income 67,632 24, ,746 Result from hedge accounting Trading result Result from financial investments 9, ,713 Administrative expenses 108,196 19, ,316 Other operating result 1, ,541 Pre-tax profit 37,125 4, ,928 Segment investments 4,522 1,907 6,429 Segment depreciation 6,631 1,967 8,598 Cost/income ratio 74.2% 79.9% 75.0% Segment income 195,811 82,230 of which external income 195,802 82,171 of which inter-segmental income 9 59 Segment expenses 158,686 77,427 thousand 1.4. to B2C B2B Consolidation comdirect group total Net interest income before provisions 34, ,235 Provisions for possible loan losses Net interest income after provisions 33, ,792 Net commission income 34,061 12, ,503 Result from hedge accounting Trading result Result from financial investments 1, ,417 Administrative expenses 53,746 9, ,565 Other operating result Pre-tax profit 16,592 2, ,029 Segment investments 1,244 1,090 2,334 Segment depreciation 3, ,385 Cost/income ratio 75.9% 80.1% 76.6% Segment income 95,464 42,275 of which external income 95,464 42,242 of which inter-segmental income 0 33 Segment expenses 78,872 39,838

21 INTERIM FINANCIAL STATEMENTS 19 Segment reporting by business line thousand 1.1. to ) B2C B2B Consolidation comdirect group total Net interest income before provisions 79, ,231 Provisions for possible loan losses Net interest income after provisions 78, ,253 Net commission income 60,891 22, ,526 Result from hedge accounting Trading result Result from financial investments 2, ,235 Administrative expenses 94,490 17, ,350 Other operating result ,407 Pre-tax profit 47,690 5, ,067 Segment investments 3,184 2,230 5,414 Segment depreciation 5,424 1,717 7,141 Cost/income ratio 66.0% 76.9% 67.5% Segment income 215,054 74,784 of which external income 215,054 74,482 of which inter-segmental income Segment expenses 167,364 69,407 1) Previous year adjusted due to application of amended IAS 19 thousand 1.4. to ) B2C B2B Consolidation comdirect group total Net interest income before provisions 37, ,425 Provisions for possible loan losses Net interest income after provisions 36, ,566 Net commission income 27,776 11, ,355 Result from hedge accounting Trading result Result from financial investments Administrative expenses 43,931 9, ,029 Other operating result Pre-tax profit 20,917 2, ,850 Segment investments 1,082 1,217 2,299 Segment depreciation 2, ,651 Cost/income ratio 66.9% 75.6% 68.2% Segment income 101,090 38,540 of which external income 101,090 38,413 of which inter-segmental income Segment expenses 80,173 35,607 1) Previous year adjusted due to application of amended IAS 19

22 20 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 43 thousand (previous year: 302 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.

23 INTERIM FINANCIAL STATEMENTS 21 Income statement of comdirect group according to IFRS on a quarterly comparison thousand ) 2013 Q1 Q2 Q3 Q4 Q1 Q2 Interest income 73,619 68,010 63,258 58,983 54,078 53,929 Interest expenses 31,813 30,585 26,035 24,454 20,602 19,694 Net interest income before provisions 41,806 37,425 37,223 34,529 33,476 34,235 Provisions for possible loan losses , Net interest income after provisions 41,687 36,566 33,788 34,512 33,382 33,792 Commission income 72,418 68,888 71,456 74,253 77,293 79,746 Commission expenses 28,247 29,533 29,726 33,093 32,050 33,243 Net commission income 44,171 39,355 41,730 41,160 45,243 46,503 Result from hedge accounting Trading result Result from financial investments 1, ,296 1,417 Administrative expenses 59,321 53,029 60,229 63,332 63,751 63,565 Personnel expenses 16,181 17,274 17,499 17,213 17,231 17,969 Other administrative expenses 39,650 32,104 38,281 42,214 42,307 41,211 Marketing expenses 15,775 9,679 12,800 17,746 15,606 12,542 Communication expenses 1,765 1,933 2,613 2,479 1,805 4,512 Consulting expenses 3,045 2,956 3,322 2,375 3,396 3,612 Expenses for external services 8,446 9,120 10,620 9,908 9,903 10,691 Sundry administrative expenses 10,619 8,416 8,926 9,706 11,597 9,854 Depreciation of office furniture and equipment and intangible assets 3,490 3,651 4,449 3,905 4,213 4,385 Other operating result 1, ,814 6, Pre-tax profit 29,217 23,850 19,712 19,480 22,899 19,029 Taxes on income 7,170 6,367 5, ,048 4,743 Net profit 22,047 17,483 14,358 19,451 16,851 14,286 1) Previous year adjusted due to application of amended IAS 19

24 22 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 1,112, ,760 1,112, ,760 Claims on banks 8,178,769 8,156,766 8,013,512 7,929,839 Claims on customers 207, , , ,596 Total 9,498,454 8,911,122 9,333,197 8,684,195 Available for sale financial assets Financial investments 3,807,853 3,709,668 3,807,853 3,709,668 Total 3,807,853 3,709,668 3,807,853 3,709,668 Liabilities measured at amortised cost Liabilities to banks 48,653 1,901 48,653 1,901 Liabilities to customers 12,567,695 11,793,702 12,527,512 11,737,489 Total 12,616,348 11,795,603 12,576,165 11,739,390 Other Trading assets Negative fair values from derivative hedging instruments 3,856 5,278 3,856 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.

25 INTERIM FINANCIAL STATEMENTS 23 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 3,807,853 2,270,005 1,537,848 0 Other Trading assets Negative fair values from derivative hedging instruments 3, ,856 0 Total 3,811,768 2,270,005 1,541,763 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 56m from Level 1 into Level 2 as no quoted market prices were available. Conversely, securities with a fair value of 267m were reclassified from Level 2 and into Level 1 as there is an active market due to increased market activity.

26 24 > Accounting standards and other information Accounting standards The interim financial statements of the comdirect group as of 30 June 2013 were prepared pursuant to Section 37w in conjunction with 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 June 2012, interest expenses increased by 409 thousand, while administrative expenses reduced by 370 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.

27 25 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 June 2013 Actuarial gains and losses 1, Changes in the revaluation reserve 36,075 8,637 27,438 Other comprehensive income for the period 34,897 8,326 26,571 1 January to 30 June 2012 Actuarial gains and losses 1, Changes in the revaluation reserve 41,984 11,149 30,835 Other comprehensive income for the period 40,937 10,865 30,072 Other comprehensive income for the period thousand Before tax Tax After tax 1 April to 30 June 2013 Actuarial gains and losses Changes in the revaluation reserve 21,570 5,591 15,979 Other comprehensive income for the period 21,323 5,548 15,775 1 April to 30 June 2012 Actuarial gains and losses Changes in the revaluation reserve Other comprehensive income for the period Result from hedge accounting and trading result As of the reporting date, interest rate swaps with a nominal volume totalling 118m were held to hedge interest rate-related changes in the market value of several bonds with the same volume and same maturity (micro fair value hedges). As of the reporting date, this produced a result from hedge accounting of 11 thousand (previous year: 4 thousand). Furthermore, forward rate agreements with a nominal volume totalling 350m were concluded in the reporting period. These are used to manage the interest book. A trading result of 59 thousand was reported in this regard (previous year: 0 thousand). Asset impairments The result from financial investments in the current financial year includes impairment losses of 288 thousand (previous year: 417 thousand). Of this figure, 219 thousand was attributable to the second quarter (previous year: 343 thousand). Provisions In the balance sheet, the provisions for possible loan losses are deducted from the respective receivables. The provisions amounting to 2,267 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 4,444 thousand (31 December 2012: 4,627 thousand).

28 26 Annual general meeting At the proposal of the Board of Managing Directors and the Supervisory Board, the annual general meeting in Hamburg on 16 May 2013 resolved to use the distributable profit of comdirect bank AG for a dividend of 0.44 per share. Furthermore, at the proposal of the Supervisory Board, the annual general meeting of comdirect bank AG elected PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Frankfurt/Main, Hamburg branch, as the auditors for the annual financial statements and consolidated financial statements as well as the auditors to review the interim financial reports outstanding for financial year 2013 and the interim report for the first quarter of 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 Declaration of the Board of Managing Directors To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group presents a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the rest of the financial year. Quickborn, 23 July 2013 The Board of Managing Directors Dr. Thorsten Reitmeyer Dr. Christian Diekmann Martina Palte