Commerzbank Ag · XETR:CBK
Commerzbank — FY2003 Earnings Presentation
34 slides from Commerzbank's earnings presentation, Feb 18, 2004
Slide 1: Commerzbank Conference Call
Commerzbank Conference Call Dr. Eric Strutz CFO Frankfurt February 18, 2004
Slide 2: Our targets at the beginning of the year 2003
1 Our targets at the beginning of the year 2003 § A positive operating result in 2003 ü €559m § Reduction of provisioning to less than €1.2bn ü €1.084m § Cutting of operating expenses to less than €5bn ü €4.511m § A Tier I-ratio of 7% ü 7.3% We kept our promise in 2003, in some cases we even overdel
Slide 3: Tier I ratio above target level
2 Tier I ratio above target level RWA, in € bn Tier I Ratio, in % 7.7 7.8 7.3 7.4 7.3 Target 6.7 7% 6.0 5.9 204 199 178 160 155 150 149 141 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2002 2003
Slide 4: Substantial positive swing in revaluation reserve
3 Substantial positive swing in revaluation reserve Revaluation reserve up by 90% in Q4 2003 1,240 approx. 40% 650 bonds 307 approx. 60% equities -258 -640 -769 -618 pre- post- -1,282 -1,100 revaluation revaluation 03/02 06/02 09/02 12/02 03/03 06/03 09/03 09/03 12/03 Valuation adjustments as of 30.
Slide 5: After allowance for special effects, net interest income down only slightly
4 After allowance for special effects, net interest income down only slightly Effects § Net interest income per 2003 only 3.3% down on previous year after adjustment for Rheinhyp § Net interest income of core business lines Net interest income before provisioning Retail Banking and Corporate Custome
Slide 6: Provisioning fell to €1.085m in 2003
5 Provisioning fell to €1.085m in 2003 Quarterly loan-loss provisions, in € m 1,321 1,084 436 308 323 303 273 256 254 252 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 2002 2003
Slide 7: Commission income
6 Commission income Quarterly commission income, in € m 2,120 2,136 575 591 554 501 520 516 509 490 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 2002 2003
Slide 8: Trading result
7 Trading result Quarterly trading result, in € m 737 313 278 231 544 104 91 107 121 36 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 2002 2003 Trading result of Securities’ division, in € m 783 210 232 226 201 170 500 124 70 50 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 2002 2003
Slide 9: Cost-cutting initiative successfully implemented
8 Cost-cutting initiative successfully implemented Full-time staff reduction above 2000-2003 target Operating expenses in € m å 3,416 1,623 Employees 1,479 1,459 1,487 1,430 690 1,383 1,398 1,308 target 1,272 1,229 1,220 2,721 1,197 1,179 1,141 646 1,113 1,078 40,391 40,067 39,481 39,463 38,565 1,18
Slide 10: Results of Commerzbank
9 Results of Commerzbank Quarterly operating result, in € m 559 181 172 194 54 32 101 92 192 -75 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 2002 2003 Quarterly operating result before tax, in € m 2002 2003 153 25 38 164 71 -2253 -133 -417 -372 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 -19
Slide 11: Strong profit increase in Commerzbank's core segments
10 Strong profit increase in Commerzbank’s core segments Retail banking, Asset management, Corporate customers, Securities in € m Income 4,899 1,479 4,805 1,327 1,323 1,228 1,227 1,144 1,027 949 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full year Full year 2002 2003 2002 2003 Operating profit 706 233 245 226 149 181
Slide 12: Retail banking: quarterly results confirm sustainability of turnaround
11 Retail banking: quarterly results confirm sustainability of turnaround Comments €m 2002 2003 Change Net interest before provisioning 1,156 1,075 -7% Operative improvement of 387% in 2003 Provision for possible loan losses -150 -159 +6% § increase of more than €200m Net interest income after provi
Slide 13: Retail banking
12 Retail banking in € m Income 1,840 1,849 489 477 463 461 463 459 450 427 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full year Full year 2002 2003 2002 2003 Operating profit 258 84 71 70 37 53 33 9 4 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full year Full year 2002 2003 2002 2003
Slide 14: Asset Management: consolidation clearly successful
13 Asset Management: consolidation clearly successful Comments €m 2002 2003 Change Net interest before provisioning -19 -17 Operative improvement in earnigns: Provision for possible loan losses - - - § from €13m 2002 to €90m in 2003 Net interest income after provisioning -19 -17 § operative ROE of 1
Slide 15: Asset management
14 Asset management in € m Income 494 152 154 435 124 103 104 100 107 85 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full year Full year 2002 2003 2002 2003 Operating profit 90 42 31 17 15 16 17 13 -17 -18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full year Full year 2002 2003 2002 2003
Slide 16: Corporate Customers and Institutions: "Move to the top"-programme being implemented
15 Corporate Customers and Institutions: "Move to the top"-programme being implemented Comments €m 2002 2003 Change Result: Net interest before provisioning 2,011 1,596 -21% § dip in earnigs has been overcome Provision for possible loan losses -1,068 -885 -17% § operating profit of €9m in Q4 Net int
Slide 17: Corporate customers and institutions
16 Corporate customers and institutions in € m Income 1,744 1,586 554 467 469 418 412 397 305 308 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full year Full year 2002 2003 2002 2003 Operating profit 453 197 355 152 152 120 109 97 -16 -3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full year Full year 2002 2003 2002 2003
Slide 18: Corporate banking in Germany
17 Corporate banking in Germany Margins and interest income in 2003 compared with 2002 Lending Deposit-taking Domestic corporate customers margin as % of overall customers‘ deposits 1.20 1.00 Margin Volume Margin Volume 0.80 0.60 -34.2% +6.1% 0.40 +11.1% -8.3% 0.20 1Q01 3Q01 1Q02 3Q02 1Q03 3Q03 2004
Slide 19: Securities: turnaround achieved in year as a whole
18 Securities: turnaround achieved in year as a whole Comments €m 2002 2003 Change Turnaround achieved: Net interest before provisioning 95 62 -35% § Securities registers positive operating profit Provision for possible loan losses - - - Net interest income after provisioning 95 62 -35% § earnings 1
Slide 20: Securities
19 Securities in € m Income 935 284 287 821 243 254 232 196 162 98 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full year Full year 2002 2003 2002 2003 Operating profit 15 45 17 3 -3 -43 -56 -86 -182 -296 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full year Full year 2002 2003 2002 2003
Slide 21: Operative turnaround is under way
20 Operative turnaround is under way core business operating profit, in € m Retail Banking Asset Management 2002 2003 Corporate Customers and Institutions 2002 2003 2002 2003 Securities 258 90 2002 2003 53 3 453 355 13 ü Full turnaround achieved ü Operative turnaround -296 achieved Operative busines
Slide 22: For more information, please contact:
For more information, please contact: Commerzbank Investor Relations Tel. +49 (69) 136 22 33 8 [email protected]
Slide 23: Commerzbank share best DAX performer in 2003
appendix 22 Commerzbank share best DAX performer in 2003 Monthly performance of DAX financials Year-end prices compared price as of price as of Share Change 31.12.02 31.12.03 Commerzbank 7.45 15.55 108.7% 240% Continental 14.90 30.00 101.3% Commerzbank MAN 13.15 24.00 82.5% SAP 75.52 133.15 76.3% De
Slide 24: Retail banking 2003
appendix 23 Retail banking 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 Net interest income 267 265 278 265 1,075 Provision for possible loan losses -44 -44 -44 -27 -159 Net interest income after provisioning 223 221 234 238 916 Net commission income 240 227 225 219 911 Net result on hedge accounting 0
Slide 25: Retail banking 2002
appendix 24 Retail banking 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Net interest income 284 296 290 286 1,156 Provision for possible loan losses -33 -53 -59 -5 -150 Net interest income after provisioning 251 243 231 281 1,006 Net commission income 237 215 192 165 809 Net result on hedge accounting
Slide 26: Asset management 2003
appendix 25 Asset management 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 Net interest income -3 -2 -10 -2 -17 Provision for possible loan losses 0 0 0 0 0 Net interest income after provisioning -3 -2 -10 -2 -17 Net commission income 91 93 107 145 436 Net result on hedge accounting 2 -1 0 0 1 Trading p
Slide 27: Asset management 2002
appendix 26 Asset management 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Net interest income 2 -9 -1 -11 -19 Provision for possible loan losses 0 0 0 0 0 Net interest income after provisioning 2 -9 -1 -11 -19 Net commission income 144 141 118 105 508 Net result on hedge accounting 0 1 -1 0 0 Trading p
Slide 28: Corporate customers and institutions 2003
appendix 27 Corporate customers and institutions 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 Net interest income 426 395 386 389 1,596 Provision for possible loan losses -205 -256 -219 -205 -885 Net interest income after provisioning 221 139 167 184 711 Net commission income 172 181 167 206 726 Net re
Slide 29: Corporate customers and institutions 2002
appendix 28 Corporate customers and institutions 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Net interest income 511 512 503 485 2,011 Provision for possible loan losses -203 -230 -330 -305 -1,068 Net interest income after provisioning 308 282 173 180 943 Net commission income 159 152 139 156 606 Net
Slide 30: Securities 2003
appendix 29 Securities 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 Net interest income 17 17 13 15 62 Provision for possible loan losses 0 0 0 0 0 Net interest income after provisioning 17 17 13 15 62 Net commission income 36 18 20 22 96 Net result on hedge accounting 0 0 0 0 0 Trading profit 232 226
Slide 31: Securities 2002
appendix 30 Securities 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Net interest income 21 26 34 14 95 Provision for possible loan losses 0 0 0 0 0 Net interest income after provisioning 21 26 34 14 95 Net commission income 50 47 91 41 229 Net result on hedge accounting 0 0 0 0 0 Trading profit 210 170
Slide 32: Group Treasury 2003
appendix 31 Group Treasury 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 Net interest income 109 61 55 13 238 Provision for possible loan losses 0 0 0 0 0 Net interest income after provisioning 109 61 55 13 238 Net commission income 0 0 -1 0 -1 Net result on hedge accounting 3 -1 -1 -5 -1 Trading profit
Slide 33: Group Treasury 2002
appendix 32 Group Treasury 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2002 2002 Net interest income 58 35 64 57 214 Provision for possible loan losses 0 0 0 0 0 Net interest income after provisioning 58 35 64 57 214 Net commission income -1 3 -1 -1 0 Net result on hedge accounting 13 21 -9 1 26 Trading profit
Slide 34: Major disposals of participations in 2003
appendix 33 Major disposals of participations in 2003 Erste Bank (market placement) Unibanco marketability achieved comdirect through partial sale free float increased Deutsche Börse (global offering) through partial sale (market placement) (accel. bookbuilding) Quarters 2003 I II III IV Crédit Agri