/ commerzbank figures, facts, targets /

Transcription

1 / commerzbank figures, facts, targets / INVESTOR RELATIONS 4th QUARTER 2007 / More than 800,000 net new retail customers in 2007 / Retail customers in million > 10 % >8.5 CEE comdirect > Domestic branches p

2 Commerzbank AG Group Communications D Frankfurt am Main Investor Relations Jürgen Ackermann Wennemar von Bodelschwingh Sandra Büschken Ute Heiserer-Jäckel Simone Nuxoll Stefan Philippi Karsten Swoboda Office: Andrea Flügel Telephone Telefax Regulated by FSA for the Conduct of Investment Business in the UK This publication appears four times a year to accompany the quarterly results and the annual financial statements. This presentation can also be found on Commerzbank s web site, in German and English. German: Investor Relations Analysten Handouts English: Investor Relations Analyst Handouts Completed on February 13, 2008

3 / commerzbank figures, facts, targets / Content Key data 2007 Profit per quarter 2 Commerzbank achieved record year despite financial crisis Commerzbank with focus on Germany and selected regions 3 Group Structure Domestic and international rankings 4 Commerzbank Group s income statement Net interest income 5 Provision for possible loan losses by segment Provision for possible loan losses 6 Breakdown of net commission income Trading profit 7 Operating expenses Personnel expenses 8 Profitability ratios Key figures per Commerzbank share 9 Development of business volumes Claims on customers 10 Exposure at Default (EaD) Revaluation reserve 11 Breakdown of assets Breakdown of liabilities 12 Breakdown of results by segment Value drivers 14 Strong underlying business in our core divisions Equity allocation 15 Private & Business Customers 16 Mittelstand 17 Corporates & Markets 18 Commercial Real Estate 19 Public Finance & Treasury 20 BRE outstandingly successful Best Mittelstandsbank in Germany 21 Main achievements 2007 Financial target on track 22 Equity and market capitalization Commerzbank s shareholders 23 Performance of the Commerzbank share Trading volume of the Commerzbank share 24 cominvest: Assets under Mangement Offices of Commerzbank Group worldwide 25 Personnel data Financial calendar Risk-weighted assets vs. Tier I capital ratio and own funds ratio Group equity definitions 13 All figures if not stated otherwise according to IAS/IFRS

4 Key data ) ) 2007 Comments Operating profit ( m) 1,011 1,757 2,649 2,513 Strong underlying level maintained Cost/income ratio (%) Good level despite subprime-crisis Operating RoE (%) Burdened by subprime-crisis RoE of consol. surplus (%) Substantial boost Core capital ratio (%) 2) In upper target range EPS ( ) Significant improvement Dividend (per share in ) Dynamic dividend growth Core financial figures reflect continuous profit improvement 1) restated; 2) including market-risk position Profit per quarter Commerzbank Group, in m 1,075 Operating profit Consolidated surplus Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1) restated 1) 1)

5 Commerzbank achieved record year despite financial crisis Net Profit in m Net RoE in % 1, % 1, ppts ) ) 2007 CIR in % EPS in ppts % ) ) ) restated Commerzbank with focus on Germany and selected regions Focus Germany Revenues after provisioning in % 25 Claims on customers in % Operating profit in % Abroad Germany Employees in % 25 Year end 2007 CB Group 75 Focused international business Accompanying German corporates in their international business Seizing profitable growth opportunities in selected regions, i.e. CEE, via rollout of distinctive product lines and successful distribution platform -3 -

6 Group structure as of January 2008 COO: Annuscheit Commerzbank CEO: Müller CRO: Hartmann CFO: Strutz Private and Business Customers Mittelstand Corporates & Markets Commercial Real Estate Public Finance & Treasury Private Banking Private and Business Customers Retail Credit comdirect bank AG German Asset Management *) BRE Bank SA Central- and Eastern Europe Corporate Banking Financial Institutions Corporates & Markets Western Europe North- and Latin America Johannesburg Branch Commercial Real Estate Commerz Real AG Group Treasury Public Finance Kassow Blessing Beumer Teller Knobloch Reuther *) International Asset Management included in segment Others and Consolidation Commerzbank and Eurohypo: Domestic and international rankings Germany No. 2 German bank by total assets No. 1 Commercial real estate bank No. 2 Public sector financing No. 1 Online brokerage No. 1 Open end real estate fund No. 1 Equity derivatives No. 2 Mittelstandbank No. 2 Residential real estate financing No. 3 Retail bank with more than 5.5 m customers International No. 1 Pfandbrief issuer No. 1 for covered bonds in the European market No. 1 Bookrunner of real estate loans in the European market No. 9 Bookrunner of real estate loans in the US market Strong market position in CEE, i.e. Poland (BRE among top 5) and Ukraine (acquisition of Bank Forum expected to be closed in Q1/2008) -4 -

7 Commerzbank Group s income statement ) Change in m in m in m in % Net interest income 4,020 3, Provisions for possible loan losses Net interest income after provisioning 3,541 3, Net commission income 3,150 2, Trading profit 879 1, Net investment income Other result Total income 7,879 7, Operating expenses 5,366 5, Operating profit 2,513 2, Restructuring expenses Pre-tax profit 2,505 2, Taxes on income After-tax profit 1,925 1, Profit/loss attributable to minority interests Consolidated surplus 1,917 1, ) restated Net interest income Commerzbank Group, in m 3,937 4, % 3,541 3,013 3,167 2,646 3, % 2,177 Net interest income before provisioning Provision for possible loan losses Net interest income after provisioning ) % 479 1) including one-off provisions of 293m, 2) restated -5-2) )

8 Provision for possible loan losses, by segment Commerzbank Group, in m Σ 836 Σ Σ Total 2004 Public Finance & Treasury Commercial Real Estate Corporates & Markets ) 3) Σ Mittelstand Private and Business Customers ) since Q2 including Eurohypo; 2) including one-off provisions of 293m; 3) 5m booked in Others and Consolidation; 4) restated 4) 1) Commerzbank Group s provision for possible loan losses Value adjustments and loan losses , in % provisioning ratio 1) 2) write-off ratio 1) Net provision for risks as percentage of total lending; 2) Write-offs as a percentage of total lending -6-

9 Breakdown of net commission income Commerzbank Group, in m Securities business 2,927 3,150 Asset Management Foreign commercial business and payments transactions Real-estate business 945 1,085 Guarantees Income from syndicated business Trust transactions at third-party risk Other commissions ) generated abroad 31% 23% 1) restated Trading profit Commerzbank Group, in m Σ 685 Σ 1,111 Σ 879 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1) ) restated -7-

10 Operating expenses Commerzbank Group, in m 4,493 4,662 5,204 5,366 3,128 3,082 2,452 2, % Personnel expenses 1,639 1,560 1,741 1, % Other expenses Depreciation on fixed and intangible assets % Personnel expenses 33,206 33,230 33,153 32,820 32,706 32,647 33,056 32,349 32,578 35,662 36,123 35,97535,891 35,384 36,767 36,448 Σ 2,452 Σ 2,667 Σ 3,128 Σ 3,082 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q21) Q3 Q4 Q1 Q2 Q3 Q staff (end-quarter figures) personnel expenses in m 1) since Q2 including Eurohypo -8 -

11 Profitability ratios in % Cost/income ratio in operating business 9.9 Operating return on equity ) 1) restated Key figures per Commerzbank share in Number of shares issued in m ) ) Consolidated surplus Average number of shares outstanding in m Operating Result 2) Dividend 1) incl. restructuring expenses; 2) excluding tax credit; 3) restated -9 -

12 Development of business volumes Commerzbank Group, in bn Balance-sheet total Risk-weighted assets (BIS) Claims on customers Claims on customers Commerzbank Group in bn Corporate and retail customers Foreign 24.1% 24.3% 25.6% 29.3% Public authorities 3.0% 2.4% 4.5% 4.3% Corporate customers 30.1% 28.6% 23.9% 25.4% Retail customers Domestic 24.9% 25.4% 25.1% 23.3% Public authorities 17.9% 19.3% 20.9% 17.7%

13 Exposure at Default (EaD) as of , in % Private and Business Customers Mittelstand, Corporates & Markets Commercial Real Estate, Public Finance and Treasury R0 R1 R2 R3 R4 R5 Rating (Exposure) as of June 30, 2007, in % R0 R1 R2 R3 R4 R5 PBC Mittelstand, C&M CRE, PF&T Revaluation reserve in bn Major participations of Commerzbank as of : 5-10%: Linde* %: Generali Hochtief* Mediobanca* ThyssenKrupp* *indirectly

14 Breakdown of assets Commerzbank Group, in m Balance-sheet total Liquid funds 5,967 75, ,278 5,157 74, ,474 Claims on banks (after provisioning) Claims on customers (after provisioning) 287, ,469 Assets held for dealing purposes/financial investments 220, ,791 Other assets 19,211 24,014 1) ) restated Breakdown of liabilities Commerzbank Group, in m Balance-sheet total 616, ,278 Liabilities to banks 125, ,120 Liabilities to other creditors 141, ,187 Securitized liabilities Own funds Other liabilities 1) restated 228,753 30,072 82,414 1) 205,649 30,592 95,

15 Risk-weighted assets vs. Tier I capital ratio and own funds ratio in bn ) Risk-weighted assets Tier I ratio (%), incl. market risk position Own funds ratio (%), incl. market risk position 1) since Q1 including Eurohypo Group equity definitions Reconciliation of equity definitions Equity basis for RoE Equity definitions in m Dec 2007 Subscribed capital 1,708 Capital reserve 5,709 Retained earnings 4,898 Reserve from currency translation -34 Investors capital excluding minorities 12,281 Minority interests (IFRS)* 1,112 Investors Capital 13,393 Jan-Dec ,707 5,702 5, ,411 1,031 13,442 Basis for RoE on net profit Basis for operating RoE and pre-tax RoE Change in consolidated companies; goodwill; consolidated net profit minus portion of dividend; others -139 BIS core capital excluding hybrid capital 13,254 Hybrid capital 3,079 BIS Tier I capital 16,333 * excluding: Revaluation reserve Cash flow hedges Consolidated profit

16 Breakdown of results by segment Commerzbank Group, , in m Private and Business Customers Mittelstand Corporates & Markets Commercial Real Estate Public Finance & Treasury Others/ Consolidation Total Net interest income 1,296 1, ,020 Provisions for possible loan losses Net interest income after provisioning ,056 1, ,541 Net commission income 1, ,150 Trading profit Net investment income Other result Total income 2,603 2,390 1,002 1, ,879 Operating expenses 2,202 1, ,366 Operating profit 401 1, ,513 Restructuring expenses Pre-tax profit 401 1, ,505 Value drivers Commerzbank Group, Private and Business Customers Mittelstand Corporates & Markets Commercial Real Estate Public Finance & Treasury Others/ Consolidation Total Average equity tied-up ( m) Operative return on equity (%) Cost/income ratio in operating business (%) 2,478 3,196 2,280 4,267 1, , Return on equity of pre-tax profit (%) staff (average number) 11,711 9,619 1,782 1, ,645 34,

17 Strong underlying business in our core divisions Operating profit in m Private & Business Customers ) Q1 Q2 Q3 Q Q1 Q2 Q3 Q ) incl. one-off provision of 293m Commercial Real Estate Mittelstand Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Public Finance & Treasury one-off Mittelstand Corporates & Markets Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Others and Consolidation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q pro-forma integration of Eurohypo Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q profit without subprime impairments Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Equity allocation within Commerzbank Group Average, % 0% 18% Private and Business Customers 2,478m Mittelstand 3,196m 32% 13,442 m 24% Corporates & Markets 2,280m Commercial Real Estate 4,267m 17% Public Finance & Treasury 1,189m Others and Consolidation 32m

18 Private & Business Customers (including German Asset Management) 1. Commerzbank s Strategic Position One of the leading retail banks in Germany with more than 5.5 million customers: - No. 1 for Business Customers - Among Top 3 in Private Banking - No. 1 in Online Banking and Online Brokerage - No. 1 in Retail Credit - No. 5 in Asset Management 2. Profitability Drivers Focused investments in branch network, comdirect and cominvest Ongoing efficiency programs for Branch of the Future, Retail Credit Administration, IT and Back Office (Service to Perform) Increased profitability of the loan book by higher quality of new business and risk-return oriented credit portfolio management 3. Strategic Goals Achieve organic growth in revenues, customers and assets under management Extend earnings momentum, contain cost increase by running efficiency programs, reduce risk costs and focused investment for growth Increased profitability is reflected in a medium term operating RoE-target (Basel I) of > 23% by 2010 All business lines in PBC with strong earnings improvement in 2007 Operating profit in m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ø Q4 equity allocation within Group *annualized Q4`06 Q4`07 FY`06 FY`07 Ø equity ( m) 2,586 2,418 2,494 2,478 Op. RoE* (%) CIR (%) % Main P&L items in m Net interest income ,280 1,326 1,296 Risk provisioning Commission income ,418 1,416 1,575 Operating expenses ,088 2,118 2,202 Operating profit PF = Pro-forma integration of Eurohypo NII up by 4% y-o-y thanks to higher deposit volume, compensating planned reduction of credit volume Risk provisioning down further Commission income significantly up, 15% Q4-on-Q4 and 11% FY-on-FY Marketing expenses and investments in branch of the future resulting in higher operating expenses More than 330,000 net new clients gained within 2007 Op. RoE in 2007 at 16.2% * Operating profit without one-off LLP ( 293m) in Q3 2006: 62m Q4`06 Q4`07 FY`06 FY`06 PF FY`07

19 Mittelstand 1. Commerzbank s Strategic Position Best Mittelstandsbank in Germany BRE Bank as a leading bank in Poland Leading European Bank and entry point into the European payment market 2. Profitability Drivers Product innovation in credit & derivatives business Comprehensive efficiency increase due to improved credit and sales processes Increase profitability by establishing worldwide responsibilities for standard products 3. Strategic Goals Leverage our leading position in Germany by new growth initiatives based on our successful Move to the Top program Intensify our specialised business for our shipping and renewable energies clients Expand new business abroad especially in export and trade finance Encourage entrepreneurial spirit among our staff via a new bonus and incentive scheme Mittelstand with excellent performance in 2007 Operating profit in m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q One-off Mittelstand Ø Q4 equity allocation within Group Q4`06 Q4`07 FY`06 FY`07 Ø equity ( m) 2,932 3,435 2,982 3,196 Op. RoE* (%) CIR (%) % Main P&L items in m Q4`06 Q4`07 FY`06 FY`06 PF FY`07 Net interest income ,274 1,264 1,477 Risk provisioning Commission income Operating expenses ,092 1,092 1,138 Operating profit ,252 PF = Pro-forma integration of Eurohypo NII increase of 6% [q-o-q] and 17% [y-o-y] driven by expansion of lending and deposit volume LLP reversals given the good economic situation in domestic business Ongoing high CI level despite decline in revenues from syndication business Higher operating costs as a result of growth initiatives at BRE Operating RoE (39%) and CIR (48%) at strong levels [FY 2007] *annualized

20 Corporates & Markets 1. Commerzbank s Strategic Position No. 1 producer of structured retail products at the world s biggest retail exchange EUWAX Pan-European warrant house with leading positions in France, The Netherlands, Belgium and Portugal Strong position in FX business 2. Profitability Drivers Strong and well established retail and corporate customer franchise Stable revenue streams, very limited exposure to directional market risk, no dedicated prop activities Growing business with institutional clients 3. Strategic Goals Build on Commerzbank s strong domestic and European position across all client groups Further improve penetration of institutional customers Focus on regions and products with competitive strengths Corporates & Markets heavily impacted by US subprime losses Operating profit in m Profit without Subprime impairments Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ø Q4 equity allocation within Group *annualized Q4`06 Q4`07 FY`06 FY`07 Ø equity ( m) 2,180 2,336 2,394 2,280 Op. RoE* (%) CIR (%) % Main P&L items in m Q4`06 Q4`07 FY`06 FY`06 PF FY`07 Net interest income Risk provisioning Commission income Trading profit Result on Financial Assets Operating expenses Operating profit PF = Pro-forma integration of Eurohypo Trading profit reached 125m in Q4 satisfactory level given market turmoil - Strong client business, substantial revenue growth in Equity Derivatives and Interest Rate Trading in Credit Trading losses due to mark to market losses with credit spreads widening [IAS 39] Significant LLP increase in 07 mainly due to US portfolio Further impairments on US CDO exposure amounting to 188m in Q4 [total of 395m in 2007] Costs stable q-o-q

21 Commercial Real Estate Commerzbank s Strategic Position Profitability Drivers After completion of Eurohypo acquisition, Commerzbank is - the leading commercial real estate bank in Europe - European market leader for real estate loan syndications and CMBS With Commerz Real, the entity merged in 2007, Commerzbank is one of the globally leading real estate asset managers with more than 30bn real estate assets under management Benefiting from strong margin increase and less competition as an effect of the subprime crisis Continuing international expansion Germany: Continuing profitability increase of the portfolio by repricing the back book and extensive portfolio management activities Cost improvements through streamlining the Eurohypo organisation 3. Strategic Goals No. 1 partner for commercial real estate globally Providing an integrated value chain with real estate financing and real estate equity products US subprime exposure weighs down profit of CRE Operating profit in m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Pro-forma integration of Eurohypo Profit without Subprime impairments Ø Q4 equity allocation within Group *annualized Q4`06 Q4`07 FY`06 FY`07 Ø equity ( m) 4,067 4,274 3,149 4,267 Op. RoE* (%) CIR (%) % Main P&L items in m Q4`06 Q4`07 FY`06 FY`06 PF Net interest income Risk provisioning Commission income Result on Financial Assets Operating expenses Operating profit PF = Pro-forma integration of Eurohypo New business with 37bn at record high Conscious expansion of new business in H2, focus on higher margins and better quality (e.g. in Germany) Excellent CI level in Q4 thanks to higher profitable new business and strong performance of Commerz Real Impairments on RMBS amounting to 60m in Q4 and 188m in FY2007 Compensation payment of 42m in Q4 in relation to legacy financing structure FY`

22 Public Finance & Treasury 1. Commerzbank s Strategic Position Becoming one of the top 2 public finance players in Europe Leading Pfandbrief issuer in the Euromarket Well positioned in current liquidity situation Potential to generate additional liquidity in case of stress scenarios 2. Profitability Drivers Actively managed high-quality credit portfolio Well diversified Pfandbriefe issuance franchise P&L negatively influenced by significant restructuring charges Funding synergies on track Market value oriented Treasury management Allocation of non volatile Treasury earnings into other business segments 3. Strategic Goals Realign Public Finance business in Commerzbank Group Integrate Essenhyp into Eurohypo and optimise Public Finance business model Further portfolio diversification through international focus Explore cross selling potential within Commerzbank Group Increased focus on structured products PFT is slightly positive excluding Essen Hyp s one-off Operating profit in m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Pro-forma integration of Eurohypo Ø Q4 equity allocation within Group *annualized Q4`06 Q4`07 FY`06 FY`07 Ø equity ( m) 1,083 1,195 1,044 1,189 Op. RoE* (%) CIR (%) % Main P&L items in m Net interest income Trading profit Result on Financial Assets Operating expenses Operating profit PF = Pro-forma integration of Eurohypo Q4`06 Q4`07 FY`06 FY`06 PF FY`07 Essen Hyp weakened PFT result by 214m in Q4 of which 150m are one-off effects, of which - minus 80m from repurchasing of outstanding debt and closing of open interest rate positions in NII - minus 70m losses on financial assets due to non-core portfolio sale Mark-to-market trading losses due to credit spread widening [IAS 39] Spread tightening in sovereigns (flight to quality) contributed to positive result on Financial Assets Treasury on track

23 BRE outstandingly successful BRE Bank Operating profit, in m BRE Bank customers in m +66% % Best Mittelstandsbank in Germany based on customer survey Savings banks Cooperative banks HypoVereinsbank Savings banks Cooperative banks Commerzbank Commerzbank (2.67) Savings banks (2.88) Dresdner Bank (2.88) Dresdner Bank HypoVereinsbank Cooperative banks (2.93) Commerzbank Deutsche Bank Dresdner Dresdner Bank Bank Deutsche Bank HypoVereinsbank (2.96) Deutsche Bank (3.37) Source: Corporate Survey Bankenrating 2007 conducted by Arbeitsgemeinschaft selbständiger Unternehmer - (ASU) 2007 Commerzbank (2.38) Savings banks (2.60) Cooperative banks (2.68) Deutsche Bank (2.83) Dresdner Bank (3.17) HypoVereinsbank (3.22) Best Global Commercial Bank in Real Estate GERMANY COMMERCIAL BANKING Eurohypo Eurohypo Eurohypo Source: Euromoney GLOBAL COMMERCIAL BANKING Pos Name 1 Eurohypo 2 HSBC 3 SEB 4 Hypo Real Estate 5 Aareal Bank Source: Euromoney Source: Euromoney

24 Main achievements Commerzbank achieved record year despite global financial crisis 2. Strong underlying business in core divisions confirms strength of business model 3. Early disclosure of Commerzbank s US subprime exposure and rigorous impairment 4. Comfortable capital base and strong liquidity ratios 5. Proposed dividend increase to 1.00 per share Commerzbank: Financial target on track Return on Equity RoE: % % % 2010e Long-term sustainable RoE goal >15% Set targets > 8 > 10 >

25 Equity and market capitalization Commerzbank Group, in bn Equity 1) Market capitalization 1) excluding cash flow hedges; 2) restated 2) 2) Commerzbank s shareholders as of Institutional Investors 75.9%* Generali 8.6% Private Investors 15.5% *) of which 12% domestic

26 Performance of the Commerzbank share Month-end figures, January 2005 = * Commerzbank share price DJ Euro Stoxx Banks CDAX (Banks) * until December 28, 2007 Trading volume of the Commerzbank share in bn On , the Commerzbank share had an index weighting of 1.98% in the DAX index and 2.2% in the DJ Euro Stoxx Banks Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

27 cominvest: Assets under management in bn Offices of Commerzbank Group worldwide as of % 3% 4% Commerzbank BRE Eurohypo comdirect Others 20% Σ 1,198 offices* 71% *) excluding 230 branches of Bank Forum (Ukraine)

28 Personnel data Commerzbank Group Employees 33,056 35,975 36,767 - in Germany 25,304 27,250 27,646 - abroad 7,752 8,725 9,121 Headoffice* 12,528 12,380 12,693 Branches 12,121 11,947 12,110 Subsidiaries 8,407 11,648 11,964 *) including back offices Financial calendar 2008* February 14, 2008 May 7, 2008 May 15, 2008 May 16, 2008 Annual Results Press Conference Q Interim Report Annual General Meeting Dividend payment August 6, 2008 September 24, 2008 Q Interim Report Investors Day November 5, 2008 Q Interim Report *) provisional dates

29 notes

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31 / disclaimer / RESERVATION REGARDING FORWARD-LOOKING STATEMENTS This publication contains forward-looking statements on Commerzbank s business and earnings performance, which are based upon our current plans, estimates, forecasts and expectations. The statements entail risks and uncertainties, as there are a variety of factors which influence our business and to a great extent lie beyond our sphere of influence. Above all, these include the economic situation, the state of the financial markets worldwide and possible loan losses. Actual results and developments may, therefore, diverge considerably from our current assumptions, which, for this reason, are valid only at the time of publication. We undertake no obligation to revise our forward-looking statements in the light of either new information or unexpected events.

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