Commerzbank Ag · XETR:CBK
Commerzbank — Q1 2016 Earnings Presentation
37 slides from Commerzbank's earnings presentation, May 3, 2016
Slide 1: Q1 2016 with reasonable results in an adverse market environment
Q1 2016 with reasonable results in an adverse market environment Analyst conference – Q1 2016 results Stephan Engels | CFO | Frankfurt | 03 May 2016
Slide 2: Q1 2016 with reasonable results in an adverse market environment
Q1 2016 with reasonable results in an adverse market environment Reasonable operating result of €273m and net result of €163m › Revenues of €2.3bn affected by negative interest rates and customer reluctance in weak markets › Stable expenses of €1.9bn include European bank levies (€156m) › Operating
Slide 3: Key financial figures at a glance
Key financial figures at a glance Group Financial Result (€m) Group Capital (% end of period) Operating result B3 CET1 ratio fully phased-in 670 12.0 12.0 9.5 376 273 Q1 2015 Q4 2015 Q1 2016 Q1 2015 Q4 2015 Q1 20162) Net result1) Leverage ratio3) 4.5 4.5 3.7 338 187 163 Q1 2015 Q4 2015 Q1 2016 Q1 20
Slide 4: Operating result of Commerzbank divisions at a glance
Operating result of Commerzbank divisions at a glance Private Customers (€m) Mittelstandsbank (€m) Central & Eastern Europe (€m) 364 191 224 209 157 148 88 79 77 Q1 15 Q4 15 Q1 16 Q1 15 Q4 15 Q1 16 Q1 15 Q4 15 Q1 16 Corporates & Markets (€m) Others & Consolidation (€m) Asset & Capital Recovery (€m)
Slide 5: Reasonable group operating result of €273m and net result of €163m
Reasonable group operating result of €273m and net result of €163m Group Operating result (€m) Group P&L in €m Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Revenues 2,785 2,436 2,309 2,232 2,314 LLP -158 -280 -146 -112 -148 670 Costs 1,957 1,737 1,719 1,744 1,893 Operating result 670 419 444 376 273 419
Slide 6: Expenses managed flat − Q1 2016 costs burdened by bank levies
Expenses managed flat − Q1 2016 costs burdened by bank levies Costs, Group (€m) 1,957 1,893 1,737 1,719 1,744 984 930 Personnel expenses 981 967 968 Operating expenses 973 963 756 752 776 Q1 Q2 Q3 Q4 Q1 2015 2016 Highlights › Q1 2016 includes expected full year European bank levy (€143m) and 2 month
Slide 7: Group LLPs again at a low level
Group LLPs again at a low level Provisions for loan losses, Group (€m) LLP divisional split in € m Q1 2015 Q4 2015 Q1 2016 Private Customers 14 -24 9 Mittelstandsbank 24 77 53 280 Central & Eastern Europe 23 22 13 Corporates & Markets -47 -11 5 158 Others & Consolidation 35 -2 -2 146 148 112 Asset &
Slide 8: Group NPL ratio stable at low 1.5%
Group NPL ratio stable at low 1.5% NPL ratio1) in Group (%) Cost of Risk2) in Group (bps) 2.5 26 1.6 1.5 16 13 YE 2014 YE 2015 3M 2016 FY 2014 FY 2015 3M 2016 PC 0.8 0.6 0.6 PC 9 3 3 MSB 1.9 1.6 1.6 MSB 25 12 14 CEE 4.5 3.8 3.8 CEE 45 33 17 C&M 1.6 1.1 1.1 C&M - - 4 O&C 0.2 0.1 0.1 O&C 0 7 - ACR 19.
Slide 9: Private Customers: Sound operating result with positive one-off gain
Private Customers: Sound operating result with positive one-off gain offsetting adverse market environment Operating result (€m) Segmental P&L in €m Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Revenues 935 940 995 905 944 o/w Filialbank 800 804 866 741 793 227 191 o/w Direct Banking 97 92 94 88 88 157 1
Slide 10: Mittelstandsbank: Solid result in corporate banking burdened by negative interest rate environment
Mittelstandsbank: Solid result in corporate banking burdened by negative interest rate environment Operating result2) (€m) Segmental P&L in €m Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 2) Revenues 790 729 673 727 702 347 o/w Mittelstand Germany 370 335 354 349 346 288 o/w Large Corp. & Int. 256 248 17
Slide 11: Negative interest rates increasingly weigh on NII in PC and MSB
Negative interest rates increasingly weigh on NII in PC and MSB NII analysis PC (€m) NII analysis MSB (€m) NII due to loan volumes 37 NII due to loan volumes 17 21 -9 -3 NII due to deposit margins NII due to deposit margins -25 -40 -50 Q1/15 Q1/16 Q1/15 Q1/16 vs. vs. vs. vs. Q1/14 Q1/15 Q1/14 Q1/15
Slide 12: Central & Eastern Europe: Good operating result despite newly introduced Polish banking tax
Central & Eastern Europe: Good operating result despite newly introduced Polish banking tax Operating result (€m) Segmental P&L in €m Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Revenues 253 207 226 252 220 97 LLP -23 -24 -28 -22 -13 88 Costs 142 114 101 151 130 79 77 69 Operating result 88 69 97 79 77
Slide 13: Corporates & Markets: Affected by challenging market conditions
Corporates & Markets: Affected by challenging market conditions and lower client activity due to ongoing global growth concerns Operating result2) (€m) Segmental P&L in €m Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Revenues 2) 634 500 381 429 463 o/w APM 132 117 96 198 119 250 o/w EMC 196 261 91 48 113
Slide 14: Asset & Capital Recovery: Operating result in line with expectations
Asset & Capital Recovery: Operating result in line with expectations – good portfolio run-down of €1.0bn in Q1 2016 Operating result (€m) Segmental P&L in €m Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Revenues -19 -74 157 12 -21 54 LLP -109 -140 -62 -50 -70 Costs 59 49 41 31 31 Operating result -187 -2
Slide 15: Further decrease in RWA
Further decrease in RWA RWA (B3 fully phased-in) development by RWA classification (€bn) 222 214 213 22 20 197 195 20 23 23 22 17 18 21 22 Market Risk 176 171 171 159 Operational Risk 154 Credit Risk Q1 Q2 Q3 Q4 Q1 2015 2016 Highlights Q1 2016 vs. Q4 2015 › Decrease in Credit Risk benefits from chan
Slide 16: CET1 ratio fully phased-in with 12.0% stable at high level
CET1 ratio fully phased-in with 12.0% stable at high level Regulatory capital (CET1 B3 fully phased-in) transition (€bn) 9.5% 12.0% 12.0%1) 23.7 0.1 0.2 0.3 23.4 0.1 0.0 0.0 21.1 Regulatory Regulatory Net profit Dividend accrual Actuarial Currency Revaluation Others 2) Regulatory Capital Capital gai
Slide 17: Outlook 2016 in an overall challenging environment
Outlook 2016 in an overall challenging environment We pursue our strategy to increase market shares and further intensify our efforts to mitigate the negative interest rate environment We aim to keep our cost base stable with exception of additional external burdens We expect a moderate increase in
Slide 18: Appendix
Appendix Stephan Engels | CFO | Frankfurt | 03 May 2016 17
Slide 19: German economy 2016/2017 – stronger Q1 2016 growth not sustainable
German economy 2016/2017 – stronger Q1 2016 growth not sustainable Current development Our expectation for 2016/2017 Mounting headwinds from EM › Growth probably accelerated in Q1 – › Recovery will continue as the lower oil › 40% of German exports go to EM, of however, higher speed will not prove pr
Slide 20: Key figures of Commerzbank share
Key figures of Commerzbank share Figures per share (€) Operating result EPS 1.58 0.88 0.61 0.23 0.22 0.13 FY 2014 FY 2015 3M 2016 ytd as of 31 Dec 2014 31 Dec 2015 31 Mar 2016 Number of shares issued (in m) 1,138.5 1,252.4 1,252.4 Market capitalisation (in €bn) 12.5 11.8 9.6 Net asset value per shar
Slide 21: Commerzbank financials at a glance
Commerzbank financials at a glance Group Q1 2015 Q4 2015 Q1 2016 Operating result (€m) 670 376 273 Net result (€m) 338 187 163 1) CET1 ratio B3 phase-in (%) 11.3 13.8 13.6 2) CET1 ratio B3 fully phased-in (%) 9.5 12.0 12.0 2) Total assets (€bn) 609 533 536 RWA B3 fully phased-in (€bn) 222 197 195 Le
Slide 22: Leverage ratio stable at 4.5% fully phased-in
Leverage ratio stable at 4.5% fully phased-in Total assets and LR exposure (€bn) Leverage ratio fully phased-in1) as of Q1 2016 (%) Total assets LR exposure 609 4.5 4.5 577 533 529 536 525 3.7 Q1 2015 Q4 2015 Q1 2016 Q1 2015 Q4 2015 Q1 20162) Note: Numbers may not add up due to rounding Stephan Enge
Slide 23: Hedging & Valuation adjustments
Hedging & Valuation adjustments €m Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 PC OCS, FVA & Net CVA/DVA - - - - -2 MSB OCS, FVA & Net CVA/DVA 17 25 -22 -18 4 CEE OCS, FVA & Net CVA/DVA 1 1 2 -2 -2 OCS 7 39 57 -32 -25 C&M FVA & Net CVA / DVA 40 2 -12 -1 37 OCS, FVA & Net CVA/DVA 47 41 45 -33 12 O&C OCS, FVA & Net
Slide 24: Oil/gas exposure stands for <1% of total exposure – >75% investment grade
Oil/gas exposure stands for <1% of total exposure – >75% investment grade Oil/gas exposure (Q1 2016, €bn) Notes 22% Integrated oil & gas majors by company 35% Integrated Tier II operators1) total Upstream 13% €3.9bn Mid-/dow nstream › Roughly 60% of the exposure to integrated oil & types 6% Service/
Slide 25: Capital markets funding activities (as of Q1 2016)
Capital markets funding activities (as of Q1 2016) Funding strategy Capital market funding structure as of 31 March 20161) Promissory notes › Commerzbank uses covered bonds (Pfandbriefe) and 15% senior unsecured instruments for funding purposes › Funding via private placements and public transaction
Slide 26: Current Commerzbank Bank- and Covered Bond Ratings
Current Commerzbank Bank- and Covered Bond Ratings Rating overview Commerzbank Bank Ratings Counterparty Risk Assessment - A2 - Deposit Rating - A2 stable - Issuer Credit Rating BBB+ stable Baa1 stable BBB+ stable Stand-alone (financial strength) bbb+ baa3 bbb+ Short-term debt A-2 P-1 F2 Covered Bon
Slide 27: Commerzbank Group
Commerzbank Group Q1 Q2 Q3 Q4 12M Q1 % Q1 % Q1 €m 2015 2015 2015 2015 2015 2016 vs Q1 vs Q4 Total Revenues 2,785 2,436 2,309 2,232 9,762 2,314 -16.9 3.7 o/w Total net interest and net trading income 1,986 1,496 1,469 1,275 6,226 1,344 -32.3 5.4 o/w Net commission income 915 855 825 829 3,424 821 -10
Slide 28: Private Customers
Private Customers Q1 Q2 Q3 Q4 12M Q1 % Q1 % Q1 €m 2015 2015 2015 2015 2015 2016 vs Q1 vs Q4 Total Revenues 935 940 995 905 3,775 944 1.0 4.3 o/w Net interest income 443 478 553 459 1,933 475 7.2 3.5 o/w Net trading income - 1 - 5 6 -1 - >-100 o/w Net commission income 473 441 439 414 1,767 427 -9.7
Slide 29: Mittelstandsbank
Mittelstandsbank Q1 Q2 Q3 Q4 12M Q1 % Q1 % Q1 €m 2015 2015 2015 2015 2015 2016 vs Q1 vs Q4 Total Revenues 807 754 651 709 2,921 706 -12.5 -0.4 o/w Net interest income 489 472 455 451 1,867 438 -10.4 -2.9 o/w Net trading income 26 41 -18 -14 35 -1 >-100 92.9 o/w Net commission income 291 263 265 274
Slide 30: Central & Eastern Europe
Central & Eastern Europe Q1 Q2 Q3 Q4 12M Q1 % Q1 % Q1 €m 2015 2015 2015 2015 2015 2016 vs Q1 vs Q4 Total Revenues 253 207 226 252 938 220 -13.0 -12.7 o/w Net interest income 134 132 143 153 562 150 11.9 -2.0 o/w Net trading income 20 15 25 10 70 15 -25.0 50.0 o/w Net commission income 47 56 56 56 21
Slide 31: Corporates & Markets
Corporates & Markets Q1 Q2 Q3 Q4 12M Q1 % Q1 % Q1 €m 2015 2015 2015 2015 2015 2016 vs Q1 vs Q4 Total Revenues 681 541 426 396 2,044 475 -30.2 19.9 o/w Total net interest and net trading income 584 417 357 235 1,593 341 -41.6 45.1 o/w Net commission income 104 99 67 97 367 91 -12.5 -6.2 o/w Other inc
Slide 32: Asset & Capital Recovery
Asset & Capital Recovery Q1 Q2 Q3 Q4 12M Q1 % Q1 % Q1 €m 2015 2015 2015 2015 2015 2016 vs Q1 vs Q4 Total Revenues -19 -74 157 12 76 -21 -10.5 >-100 o/w Net interest income 107 39 -16 3 133 -1 >-100 >-100 o/w Net trading income 47 -100 139 8 94 -30 >-100 >-100 o/w Net commission income 6 6 2 3 17 - -
Slide 33: Others & Consolidation
Others & Consolidation Q1 Q2 Q3 Q4 12M Q1 % Q1 % Q1 €m 2015 2015 2015 2015 2015 2016 vs Q1 vs Q4 Total Revenues 128 68 -146 -42 8 -10 >-100 76.2 o/w Total net interest and net trading income 136 1 -169 -35 -67 -42 >-100 -20.0 o/w Net commission income -6 -10 -4 -15 -35 -8 -33.3 46.7 o/w Other income
Slide 34: Group equity composition
Group equity composition Capital Capital Capital Ratios Ratios Q4 2015 Q1 2016 Q1 2016 Q1 2016 Q1 2016 End of period End of period Average €bn €bn €bn % % 4) Common equity tier 1 B3 capital (phase in) 27.3 26.5 CET1 ratio phase-in: 13.6% 1) Transition adjustments 3.6 3.1 Common equity tier 1 B3 ca
Slide 35: Glossary - Capital Allocation / RoE, RoTE & RoCET1 Calculation
Glossary - Capital Allocation / RoE, RoTE & RoCET1 Calculation › Amount of average capital allocated to business segments is calculated by multiplying the segments current YTD average Basel 3 RWA (fully phased-in) (PC €23.0bn, MSB €73.8bn, CEE €15.0bn, C&M €33.2bn, O&C €31.2bn, ACR €21.9bn) by a rat
Slide 36: Disclaimer
Disclaimer Investor Relations This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include, inter alia, statements about Commerzbank’s beliefs and expectations and the assumptions underlying them. These statements are ba
Slide 37: For more information, please contact Commerzbank's IR team
For more information, please contact Commerzbank’s IR team Tanja Birkholz (Head of Investor Relations / Executive Management Board Member) P: +49 69 136 23854 M: [email protected] Christoph Wortig (Head of IR Communications) P: +49 69 136 52668 M: [email protected] Instit