Commerzbank Update on New Group Pro Forma Reporting Basis for 2006 Frankfurt am Main,
Agenda Executive summary of reporting changes p. 3 New reporting on pro forma basis 2006 p. 7 Appendix: previous reporting on pro forma basis 2006 p. 16 2
Please note that all figures are based on the Q I 2006 pro forma full consolidation of Eurohypo 3
Executive summary of reporting changes Changes in segment structure German asset management (cominvest) disclosed under Private and Business Customers Real estate asset management shown under Commercial Real Estate International asset management will be included in Others and Consolidation Precious metal operations previously allocated to Mittelstand now reported under Corporates & Markets Changes in line item reporting as well as in allocation of Treasury revenue and operating expenses FX sales margins previously booked as trading result, now as commission income (in line with other banks) Allocation of stable revenue and associated operating expenses of Treasury Commerzbank AG on global basis instead of domestic basis. At the same time, alignment of allocation of revenue and operating expenses of Treasury Eurohypo with Commerzbank AG 4
Changes in segment structure New allocation of Asset Management units Pro forma 2006 in m Asset Management ("prev.") German Asset Management Real Estate Asset Management International Asset Management Revenue 730 256 72 403 Operating expenses 593 195 46 352 Operating profit 138 61 26 51 Private and Business Customers Commercial Real Estate Others and Consolidation Impact of allocation of precious metals operations from Mittelstand to Corporates & Markets Pro forma 2006 Mittelstand C &M Revenue - 20 m + 20 m Operating expenses - 9 m + 9 m Operating profit - 11 m + 11 m Marginal differences may occur due to rounding. 5
Changes in line item reporting as well as in allocation of revenue and operating expenses FX sales margins Pro forma 2006 Corporates & Markets Net commission income + 66 m Trading profit - 66 m Impact of allocation of revenue and operating expenses of Treasury Commerzbank AG and Eurohypo Pro forma 2006 PBC MSB C&M CRE PFT Revenue + 26 m + 17 m - 13 m + 27 m - 57 m Operating expenses + 17 m + 8 m - 19 m + 24 m - 30 m Operating profit + 9 m + 9 m + 6 m + 3 m -27 m Marginal differences may occur due to rounding. 6
7
New reporting - Group Pro forma 2006 in m Private and Business Customers Mittelstand Corporates & Markets Commercial Real Estate Public Finance & Treasury Others and Consolidation Group Net interest income 1,326 1,264 338 875 373-31 4,145 Provision for possible loan losses -600-128 11-185 -28 0-930 Net interest income after provisioning 726 1,136 349 690 345-31 3,215 Net commission income 1,416 675 198 335-30 371 2,965 Trading profit 4 83 954 37-33 66 1,111 Net result on investments and securities portfolio -19 7 29 4 111 639 771 Other result -15-5 43 26 2-64 -13 Revenue 2,112 1,896 1,573 1,092 395 981 8,049 Operating expenses 2,118 1,092 948 532 101 543 5,334 Operating profit -6 804 625 560 294 438 2,715 Restructuring expenses 135 0 3 13 6 96 253 Pre-tax profit -141 804 622 547 288 342 2,462 Average equity tied up 2,634 2,869 2,294 4,016 1,074-684 12,203 Operating return on equity (%) -0.2 28.0 27.2 13.9 27.4. 22.2 Cost / income ratio in operating business (%) 78.1 54.0 60.7 41.7 23.9. 59.4 Return on equity of pre-tax profit (%) -5.4 28.0 27.1 13.6 26.8. 20.2 8
New reporting - Group Net interest income 1,060 1,060 1,050 975 4,145 Provision for possible loan losses -211-225 -415-79 -930 Net interest income after provisioning 849 835 635 896 3,215 Net commission income 772 677 718 798 2,965 Trading profit 320 337 168 286 1,111 Net result on investments and securities portfolio 446 184 91 50 771 Other result -20-6 17-4 -13 Revenue 2,367 2,027 1,629 2,026 8,049 Operating expenses 1,320 1,327 1,292 1,395 5,334 Operating profit 1,047 700 337 631 2,715 Restructuring expenses 0 214 0 39 253 Pre-tax profit 1,047 486 337 592 2,462 Average equity tied up 12,191 12,217 12,207 12,197 12,203 Operating return on equity (%) 34.4 22.9 11.0 20.7 22.2 Cost / income ratio in operating business (%) 51.2 58.9 63.2 66.3 59.4 Return on equity of pre-tax profit (%) 34.4 15.9 11.0 19.4 20.2 9
New reporting - Private and Business Customers Net interest income 334 328 336 328 1,326 Provision for possible loan losses -71-72 -381-76 -600 Net interest income after provisioning 263 256-45 252 726 Net commission income 408 344 340 324 1,416 Trading profit 1 2 0 1 4 Net result on investments and securities portfolio -17 0-1 -1-19 Other result -12-4 -1 2-15 Revenue 643 598 293 578 2,112 Operating expenses 525 527 524 542 2,118 Operating profit 118 71-231 36-6 Restructuring expenses 0 96 0 39 135 Pre-tax profit 118-25 -231-3 -141 Average equity tied up 2,675 2,649 2,626 2,586 2,634 Operating return on equity (%) 17.6 10.7-35.2 5.6-0.2 Cost / income ratio in operating business (%) 73.5 78.7 77.7 82.9 78.1 Return on equity of pre-tax profit (%) 17.6-3.8-35.2-0.5-5.4 10
New reporting - Mittelstand Net interest income 306 287 328 343 1,264 Provision for possible loan losses -80-81 -13 46-128 Net interest income after provisioning 226 206 315 389 1,136 Net commission income 159 165 163 188 675 Trading profit 21 20 19 23 83 Net result on investments and securities portfolio 5 0 0 2 7 Other result 0-1 -3-1 -5 Revenue 411 390 494 601 1,896 Operating expenses 269 261 273 289 1,092 Operating profit 142 129 221 312 804 Restructuring expenses 0 0 0 0 0 Pre-tax profit 142 129 221 312 804 Average equity tied up 2,840 2,866 2,838 2,932 2,869 Operating return on equity (%) 20.0 18.0 31.1 42.6 28.0 Cost / income ratio in operating business (%) 54.8 55.4 53.8 52.1 54.0 Return on equity of pre-tax profit (%) 20.0 18.0 31.1 42.6 28.0 11
New reporting - Corporates & Markets Net interest income 85 76 90 87 338 Provision for possible loan losses -11-9 27 4 11 Net interest income after provisioning 74 67 117 91 349 Net commission income 48 38 50 62 198 Trading profit 282 281 193 198 954 Net result on investments and securities portfolio 18 10 2-1 29 Other result 8 20 21-6 43 Revenue 430 416 383 344 1,573 Operating expenses 250 247 220 231 948 Operating profit 180 169 163 113 625 Restructuring expenses 0 3 0 0 3 Pre-tax profit 180 166 163 113 622 Average equity tied up 2,402 2,334 2,260 2,180 2,294 Operating return on equity (%) 30.0 29.0 28.8 20.7 27.2 Cost / income ratio in operating business (%) 56.7 58.1 61.8 67.9 60.7 Return on equity of pre-tax profit (%) 30.0 28.4 28.8 20.7 27.1 12
New reporting - Commercial Real Estate Net interest income 212 222 209 232 875 Provision for possible loan losses -41-55 -41-48 -185 Net interest income after provisioning 171 167 168 184 690 Net commission income 74 65 85 111 335 Trading profit 15 3 9 10 37 Net result on investments and securities portfolio 1 4 2-3 4 Other result 5 18 8-5 26 Revenue 266 257 272 297 1,092 Operating expenses 127 134 126 145 532 Operating profit 139 123 146 152 560 Restructuring expenses 0 13 0 0 13 Pre-tax profit 139 110 146 152 547 Average equity tied up 4,000 4,040 3,957 4,067 4,016 Operating return on equity (%) 13.9 12.2 14.8 14.9 13.9 Cost / income ratio in operating business (%) 41.4 42.9 40.3 42.0 41.7 Return on equity of pre-tax profit (%) 13.9 10.9 14.8 14.9 13.6 13
New reporting - Public Finance & Treasury Net interest income 129 117 113 14 373 Provision for possible loan losses -8-8 -7-5 -28 Net interest income after provisioning 121 109 106 9 345 Net commission income -6-13 -7-4 -30 Trading profit -7 4-54 24-33 Net result on investments and securities portfolio 4 32 24 51 111 Other result 0 2-2 2 2 Revenue 112 134 67 82 395 Operating expenses 21 22 23 35 101 Operating profit 91 112 44 47 294 Restructuring expenses 0 6 0 0 6 Pre-tax profit 91 106 44 47 288 Average equity tied up 1,093 1,067 1,053 1,083 1,074 Operating return on equity (%) 33.3 42.0 16.7 17.4 27.4 Cost / income ratio in operating business (%) 17.5 15.5 31.1 40.2 23.9 Return on equity of pre-tax profit (%) 33.3 39.7 16.7 17.4 26.8 14
New reporting - Others and Consolidation Net interest income -6 30-26 -29-31 Provision for possible loan losses 0 0 0 0 0 Net interest income after provisioning -6 30-26 -29-31 Net commission income 89 78 87 117 371 Trading profit 8 27 1 30 66 Net result on investments and securities portfolio 435 138 64 2 639 Other result -21-41 -6 4-64 Revenue 505 232 120 124 981 Operating expenses 128 136 126 153 543 Operating profit 377 96-6 -29 438 Restructuring expenses 0 96 0 0 96 Pre-tax profit 377 0-6 -29 342 Average equity tied up -819-739 -527-651 -684 Operating return on equity (%)..... Cost / income ratio in operating business (%)..... Return on equity of pre-tax profit (%)..... 15
Previous reporting on pro forma basis 2006 16
Previous reporting - Group Pro forma 2006 in m Private and Business Customers Asset Management Mittelstand Corporates & Markets Commercial Real Estate Public Finance & Treasury Others and Consolidation Group Net interest income 1,304-22 1,245 339 851 446-18 4,145 Provision for possible loan losses -600 0-128 11-185 -28 0-930 Net interest income after provisioning 704-22 1,117 350 666 418-18 3,215 Net commission income 1,158 735 676 132 257-32 -27 2,899 Trading profit 4 12 105 1,022 38-56 52 1,177 Net result on investments and securities portfolio -22 11 7 19 5 120 631 771 Other result -15-6 -5 43 29 2-61 -13 Revenue 1,829 730 1,900 1,566 995 452 577 8,049 Operating expenses 1,906 593 1,093 957 463 132 190 5,334 Operating profit -77 137 807 609 532 320 387 2,715 Restructuring expenses 113 22 0 3 13 6 96 253 Pre-tax profit -190 115 807 606 519 314 291 2,462 Average equity tied up 2,454 551 2,889 2,292 3,942 1,164-1,089 12,203 Operating return on equity (%) -3.1 24.9 27.9 26.6 13.5 27.5. 22.2 Cost / income ratio in operating business (%) 78.5 81.2 53.9 61.5 39.2 27.5. 59.4 Return on equity of pre-tax profit (%) -7.7 20.9 27.9 26.4 13.2 27.0. 20.2 17
Previous reporting - Group Net interest income 1,060 1,060 1,050 975 4,145 Provision for possible loan losses -211-225 -415-79 -930 Net interest income after provisioning 849 835 635 896 3,215 Net commission income 756 659 703 781 2,899 Trading profit 336 355 183 303 1,177 Net result on investments and securities portfolio 446 184 91 50 771 Other result -20-6 17-4 -13 Revenue 2,367 2,027 1,629 2,026 8,049 Operating expenses 1,320 1,327 1,292 1,395 5,334 Operating profit 1,047 700 337 631 2,715 Restructuring expenses 0 214 0 39 253 Pre-tax profit 1,047 486 337 592 2,462 Average equity tied up 12,191 12,217 12,207 12,197 12,203 Operating return on equity (%) 34.4 22.9 11.0 20.7 22.2 Cost / income ratio in operating business (%) 51.2 58.9 63.2 66.3 59.4 Return on equity of pre-tax profit (%) 34.4 15.9 11.0 19.4 20.2 18
Previous reporting - Private and Business Customers Net interest income 328 323 331 322 1,304 Provision for possible loan losses -71-72 -381-76 -600 Net interest income after provisioning 257 251-50 246 704 Net commission income 344 280 272 262 1,158 Trading profit 1 1 1 1 4 Net result on investments and securities portfolio -18-2 -1-1 -22 Other result -12-5 1 1-15 Revenue 572 525 223 509 1,829 Operating expenses 479 471 474 482 1,906 Operating profit 93 54-251 27-77 Restructuring expenses 0 96 0 17 113 Pre-tax profit 93-42 -251 10-190 Average equity tied up 2,486 2,467 2,448 2,410 2,454 Operating return on equity (%) 15.0 8.8-41.0 4.5-3.1 Cost / income ratio in operating business (%) 74.5 78.9 78.5 82.4 78.5 Return on equity of pre-tax profit (%) 15.0-6.8-41.0 1.7-7.7 19
Previous reporting - Asset Management Net interest income -6-6 -6-4 -22 Provision for possible loan losses 0 0 0 0 0 Net interest income after provisioning -6-6 -6-4 -22 Net commission income 168 174 177 216 735 Trading profit 3 4 3 2 12 Net result on investments and securities portfolio 3 3 0 5 11 Other result 0-1 -3-2 -6 Revenue 168 174 171 217 730 Operating expenses 128 147 139 179 593 Operating profit 40 27 32 38 137 Restructuring expenses 0 0 0 22 22 Pre-tax profit 40 27 32 16 115 Average equity tied up 555 544 545 561 551 Operating return on equity (%) 28.8 19.9 23.5 27.1 24.9 Cost / income ratio in operating business (%) 76.2 84.5 81.3 82.5 81.2 Return on equity of pre-tax profit (%) 28.8 19.9 23.5 11.4 20.9 20
Previous reporting - Mittelstand Net interest income 301 282 323 339 1,245 Provision for possible loan losses -80-81 -13 46-128 Net interest income after provisioning 221 201 310 385 1,117 Net commission income 160 164 164 188 676 Trading profit 27 27 23 28 105 Net result on investments and securities portfolio 5 0 0 2 7 Other result -1 0-3 -1-5 Revenue 412 392 494 602 1,900 Operating expenses 269 262 274 288 1,093 Operating profit 143 130 220 314 807 Restructuring expenses 0 0 0 0 0 Pre-tax profit 143 130 220 314 807 Average equity tied up 2,860 2,892 2,857 2,949 2,889 Operating return on equity (%) 20.0 18.0 30.8 42.6 27.9 Cost / income ratio in operating business (%) 54.7 55.4 54.0 51.8 53.9 Return on equity of pre-tax profit (%) 20.0 18.0 30.8 42.6 27.9 21
Previous reporting - Corporates & Markets Net interest income 85 68 95 91 339 Provision for possible loan losses -11-9 27 4 11 Net interest income after provisioning 74 59 122 95 350 Net commission income 32 20 35 45 132 Trading profit 305 305 203 209 1,022 Net result on investments and securities portfolio 15 5 0-1 19 Other result 8 21 20-6 43 Revenue 434 410 380 342 1,566 Operating expenses 252 251 222 232 957 Operating profit 182 159 158 110 609 Restructuring expenses 0 3 0 0 3 Pre-tax profit 182 156 158 110 606 Average equity tied up 2,407 2,323 2,259 2,187 2,292 Operating return on equity (%) 30.2 27.4 28.0 20.1 26.6 Cost / income ratio in operating business (%) 56.6 59.9 62.9 68.6 61.5 Return on equity of pre-tax profit (%) 30.2 26.9 28.0 20.1 26.4 22
Previous reporting - Commercial Real Estate Net interest income 206 216 203 226 851 Provision for possible loan losses -41-55 -41-48 -185 Net interest income after provisioning 165 161 162 178 666 Net commission income 61 45 66 85 257 Trading profit 15 4 8 11 38 Net result on investments and securities portfolio 1 4 2-2 5 Other result 5 18 8-2 29 Revenue 247 232 246 270 995 Operating expenses 112 120 108 123 463 Operating profit 135 112 138 147 532 Restructuring expenses 0 13 0 0 13 Pre-tax profit 135 99 138 147 519 Average equity tied up 3,909 3,959 3,886 4,012 3,942 Operating return on equity (%) 13.8 11.3 14.2 14.7 13.5 Cost / income ratio in operating business (%) 38.9 41.8 37.6 38.7 39.2 Return on equity of pre-tax profit (%) 13.8 10.0 14.2 14.7 13.2 23
Previous reporting - Public Finance & Treasury Net interest income 147 144 127 28 446 Provision for possible loan losses -8-8 -7-5 -28 Net interest income after provisioning 139 136 120 23 418 Net commission income -7-13 -8-4 -32 Trading profit -20-7 -53 24-56 Net result on investments and securities portfolio 7 37 26 50 120 Other result 0 1-2 3 2 Revenue 119 154 83 96 452 Operating expenses 28 30 31 43 132 Operating profit 91 124 52 53 320 Restructuring expenses 0 6 0 0 6 Pre-tax profit 91 118 52 53 314 Average equity tied up 1,203 1,172 1,134 1,152 1,164 Operating return on equity (%) 30.3 42.3 18.3 18.4 27.5 Cost / income ratio in operating business (%) 22.0 18.5 34.4 42.6 27.5 Return on equity of pre-tax profit (%) 30.3 40.3 18.3 18.4 27.0 24
Previous reporting - Others and Consolidation Net interest income -1 33-23 -27-18 Provision for possible loan losses 0 0 0 0 0 Net interest income after provisioning -1 33-23 -27-18 Net commission income -2-11 -3-11 -27 Trading profit 5 21-2 28 52 Net result on investments and securities portfolio 433 137 64-3 631 Other result -20-40 -4 3-61 Revenue 415 140 32-10 577 Operating expenses 52 46 44 48 190 Operating profit 363 94-12 -58 387 Restructuring expenses 0 96 0 0 96 Pre-tax profit 363-2 -12-58 291 Average equity tied up -1,229-1,140-922 -1,074-1,089 Operating return on equity (%)..... Cost / income ratio in operating business (%)..... Return on equity of pre-tax profit (%)..... 25
For more information, please contact Commerzbank s IR-team : Jürgen Ackermann (Head of IR) P: +49 69 136 22338 M: juergen.ackermann@commerzbank.com Sandra Büschken (Deputy Head of IR) P: +49 69 136 23617 M: sandra.bueschken@commerzbank.com Wennemar von Bodelschwingh P: +49 69 136 43611 M: wennemar.vonbodelschwingh@commerzbank.com www.commerzbank.com/ir Ute Heiserer-Jäckel P: +49 69 136 41874 M: ute.heiserer-jaeckel@commerzbank.com Simone Nuxoll P: +49 69 136 45660 M: simone.nuxoll@commerzbank.com Stefan Philippi P: +49 69 136 45231 M: stefan.philippi@commerzbank.com Andrea Flügel (Assistant) P: +49 69 136 22255 M: andrea.fluegel@commerzbank.com
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