Commerzbank Ag · XETR:CBK
Commerzbank — Q3 2019 Earnings Presentation
39 slides from Commerzbank's earnings presentation, Nov 7, 2019
Slide 1: Robust performance in challenging environment
Commerzbank 5.0 digital – personal – responsible Robust performance in challenging environment Analyst conference – Q3 2019 results Stephan Engels | CFO | Frankfurt | 7 November 2019 All figures in this presentation are subject to rounding
Slide 2: Highlights Q3 2019
Commerzbank 5.0 digital – personal – responsible Robust performance in challenging environment Highlights Q3 2019 Further growth in customers and assets › In PSBC Germany141k net new customers and €4bn growth of loan and securities volumes › In CC €89bn loan volume with corporates (+ €1bn) › Commerz
Slide 3: Key financial figures at a glance
Commerzbank 5.0 digital – personal – responsible Key financial figures at a glance Group Financial Results Group Capital2 Exceptional Revenue Items Operating result CET1 ratio fully loaded (€m) (%) 448 13 346 13.2 12.9 12.8 18 298 34 435 328 264 Q3 2018 Q2 2019 Q3 2019 Q3 2018 Q2 2019 Q3 2019 Levera
Slide 4: Exceptional revenue items
Commerzbank 5.0 digital – personal – responsible Exceptional revenue items 2018 Revenues 2019 Revenues (€m) (€m) › Hedging & valuation adjustments -24 › Hedging & valuation adjustments -15 Q1 › Polish group insurance business (PSBC) 52 1 › PPA Consumer Finance (PSBC) -19 -34 › PPA Consumer Finance (
Slide 5: Revenues and operating results of Commerzbank divisions
Commerzbank 5.0 digital – personal – responsible Revenues and operating results of Commerzbank divisions Private and Small Business Customers Corporate Clients (€m) (€m) 1,327 1,204 1,224 855 84 782 Exceptional Revenue Items 15 776 1,226 1,244 1,243 840 824 Revenues Revenues 799 -22 -21 -23 -42 Q3 2
Slide 6: Higher operating result based on robust customer business
Commerzbank 5.0 digital – personal – responsible Higher operating result based on robust customer business Group operating result Group P&L (€m) in €m Q3 2018 Q2 2019 Q3 2019 9M 2018 9M 2019 Revenues 2,140 2,129 2,183 6,535 6,469 448 Exceptional items 18 34 13 37 13 401 Revenues excl. exceptional it
Slide 7: Cost development in line with FY guidance
Commerzbank 5.0 digital – personal – responsible Cost development in line with FY guidance 9M 2018 vs. 9M 2019 transition Personnel expenses (€m) Operating expenses Compulsory contributions 5,238 41 7 188 5,108 2,572 34 58 2,647 2,309 2,063 357 398 9M 2018 Compulsory Regulatory & Costs of Cost Other
Slide 8: Risk indicators remain stable despite the macro environment
Commerzbank 5.0 digital – personal – responsible Risk indicators remain stable despite the macro environment Risk Result Risk Result divisional split (€m) Risk Result in €m Q3 2018 Q2 2019 Q3 2019 9M 2018 9M 2019 Private and Small Business Customers -69 -48 -87 -184 -187 Corporate Clients -61 -127 -
Slide 9: Private and Small Business Customers: continued growth towards Commerzbank 5.0 targets
Commerzbank 5.0 digital – personal – responsible Private and Small Business Customers: continued growth towards Commerzbank 5.0 targets Customers (Germany) Loan and Securities Volumes (Germany) (m) (€bn eop) >1m +21% >12.1 300 247 251 +141k 11.2 Loans 101 102 11.1 Securities 146 149 H1 2019 Q3 2019
Slide 10: Private and Small Business Customers: operating result supported by ebase sale
Commerzbank 5.0 digital – personal – responsible Private and Small Business Customers: operating result supported by ebase sale Operating result Segmental P&L (€m) in €m Q3 2018 Q2 2019 Q3 2019 9M 2018 9M 2019 Revenues 1,204 1,224 1,327 3,641 3,751 315 o/w Private Customers 607 598 570 1,804 1,757 o
Slide 11: Corporate Clients: continued loan volume growth
Commerzbank 5.0 digital – personal – responsible Corporate Clients: continued loan volume growth Loan Volume Corporates (€bn | Mittelstand and International Corporates) +7bn +7bn 89 88 84 82 78 75 Q4 2016 Q4 2017 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Stephan Engels | CFO | Frankfurt | 7 November 2019 10
Slide 12: Corporate Clients: resilient customer business and favourable risk result
Commerzbank 5.0 digital – personal – responsible Corporate Clients: resilient customer business and favourable risk result Operating result Segmental P&L (€m) in €m Q3 2018 Q2 2019 Q3 2019 9M 2018 9M 2019 Revenues 855 776 782 2,620 2,418 o/w Mittelstand 453 438 447 1,311 1,338 o/w International Corp
Slide 13: Capital ratio of 12.8% includes TRIM effect
Commerzbank 5.0 digital – personal – responsible Capital ratio of 12.8% includes TRIM effect RWA development by RWA classification Transition of CET1 ratio (€bn eop) (%) 187 189 178 12 12 12 22 Market Risk 23 13.2 22 Operational Risk Credit Risk 12.9 12.8 0.2 0.1 144 152 155 Q3 2018 Q2 2019 Q3 2019
Slide 14: Commerzbank intends to merge comdirect
Commerzbank 5.0 digital – personal – responsible Commerzbank intends to merge comdirect › Offer price of €11.44 includes 25% premium to comdirect’s share price before announcement › Offer acceptance period until 6 December 2019 › Two scenarios from comdirect’s shareholder perspective 1. Commerzbank
Slide 15: Objectives and expectations for 2019
Commerzbank 5.0 digital – personal – responsible Objectives and expectations for 2019 2019 – Outlook We continue our growth strategy – however, we do not expect higher underlying revenues 2019 vs. 2018 We target a cost base below €6.8bn We expect a risk result not below €550m We plan to maintain a d
Slide 16: digital – personal – responsible
Commerzbank 5.0 digital – personal – responsible Commerzbank 5.0 digital – personal – responsible Stephan Engels | CFO | Frankfurt | 7 November 2019 15
Slide 17: Appendix
Commerzbank 5.0 digital – personal – responsible Appendix Commerzbank Group P&L Tables Commerzbank financials at a glance 18 Commerzbank Group 28 Key figures Commerzbank share 19 Private and Small Business Customers 29 Loan and deposit volumes 20 Corporate Clients 30 Scenario: NII sensitivity 21 Ass
Slide 18: German economy 2020 – looking for the turn-around
Commerzbank 5.0 digital – personal – responsible German economy 2020 – looking for the turn-around › After shrinking slightly in Q2 real GDP probably fell in Q3, too, fulfilling the definition of a “technical recession”. DAX (avg. p.a.) › Even if the service sector recently has shown some weakness,
Slide 19: Commerzbank financials at a glance
Commerzbank 5.0 digital – personal – responsible Commerzbank financials at a glance Group Q3 2018 Q2 2019 Q3 2019 9M 2018 9M 2019 Operating result (€m) 346 298 448 1,005 990 Net result (€m) 218 271 294 751 684 CET1 ratio fully loaded (%)¹ 13.2 12.9 12.8 13.2 12.8 Total assets (€bn) 493 518 513 493 5
Slide 20: Key figures Commerzbank share
Commerzbank 5.0 digital – personal – responsible Key figures Commerzbank share Figures per share Operating result per share (€) EPS 1.0 0.9 0.8 0.7 0.5 0.1 FY 2017 FY 2018 9M 2019 ytd as of FY 2017 FY 2018 9M 2019 Number of shares issued (in m) 1,252.40 1,252.40 1,252.40 Market capitalisation (in €b
Slide 21: Continuing loan and deposit growth
Commerzbank 5.0 digital – personal – responsible Continuing loan and deposit growth PSBC Loan volume Corporate Clients Loan volume (€bn) Deposit volume (€bn) Deposit volume 155 159 102 104 120 121 81 84 Jun-19 Sep-19 Jun-19 Sep-19 Highlights › Loan growth in Private and Small Business Customers main
Slide 22: Significant NII potential in scenario of rising interest rates
Commerzbank 5.0 digital – personal – responsible Significant NII potential in scenario of rising interest rates 100 bp parallel up-shift in rates yield curve Scenario impact on NII (as of 30 September 2019, in %) (€m) ~950-1000 1.5 1.0 ~550-600 0.5 0.0 -0.5 0Y 2Y 4Y 6Y 8Y 10Y Year 1 Year 4 Highlight
Slide 23: Capital markets funding activities
Commerzbank 5.0 digital – personal – responsible Capital markets funding activities Funding structure1 Group Funding activities 9M 20192 (as of 30 September 2019) (nominal values) Subordinated debt Additional tier 1 12% €0.9bn Non-preferred senior €1.2bn Promissory notes 12% 48% 50% Covered bonds ~€
Slide 24: Rating overview Commerzbank
Commerzbank 5.0 digital – personal – responsible Rating overview Commerzbank As of 7 November 2019 Bank Ratings S&P Moody’s Fitch Scope Counterparty Rating/ Assessment1 A A1/ A1 (cr) A- (dcr) - Deposit Rating2 A- negative A1 stable A- - Issuer Credit Rating (long-term debt) A- negative A1 stable BBB
Slide 25: IAS 19: Development of pension obligations
Commerzbank 5.0 digital – personal – responsible IAS 19: Development of pension obligations Pension obligations (gross) Cumulated actuarial gains and losses Discount rate in %2 (€m) Cumulated OCI effect1 3.9 2.3 2.6 1.8 1.9 1.9 0.8 -713 -1,067 -1,279 -1,446 -1,300 -1,586 -1,780 -7,175 -8,547 -9,201
Slide 26: Strengthening of USD with net negative impact on capital ratio
Commerzbank 5.0 digital – personal – responsible Strengthening of USD with net negative impact on capital ratio QoQ Change in FX capital position 155.3 7.1 Other 11.3 +136 +4 FX rates 06/19 09/19 GBP 12.8 -375 PLN -75 EUR/ GBP 0.897 0.886 USD 25.3 EUR/ PLN 4.250 4.378 EUR +1,125 +80 EUR/ USD 1.138 1
Slide 27: Residential mortgage business vs. property prices
Commerzbank 5.0 digital – personal – responsible Residential mortgage business vs. property prices German residential properties Overall mortgage portfolio (index values) › Growing mortgage volume with a very good risk quality: 300 BER – 12/15: EaD €62.6bn – RD 12bp 250 MUC – 12/16: EaD €66.8bn – RD
Slide 28: Germany's most sustainable commercial bank: renewable energy project finance
Commerzbank 5.0 digital – personal – responsible As a leading German provider of renewable energy project finance it is our objective to become Germany’s most sustainable commercial bank Renewable Energy Project Finance Portfolio Portfolio Breakdown (Exposure at Default, €bn end of period) 1% +27% 1
Slide 29: Commerzbank Group
Commerzbank 5.0 digital – personal – responsible Commerzbank Group Q1 Q2 Q3 9M Q4 FY Q1 Q2 Q3 9M €m 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 Total clean revenues 2,216 2,160 2,122 6,498 2,151 8,649 2,190 2,095 2,170 6,455 Exceptional items 1 18 18 37 -115 -78 -34 34 13 13 Total revenues 2,2
Slide 30: Private and Small Business Customers
Commerzbank 5.0 digital – personal – responsible Private and Small Business Customers Q1 Q2 Q3 9M Q4 FY Q1 Q2 Q3 9M €m 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 Total clean revenues 1,211 1,225 1,226 3,663 1,184 4,847 1,220 1,244 1,243 3,707 Exceptional items 25 -25 -22 -22 -23 -44 -20 -21 8
Slide 31: Corporate Clients
Commerzbank 5.0 digital – personal – responsible Corporate Clients Q1 Q2 Q3 9M Q4 FY Q1 Q2 Q3 9M €m 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 Total clean revenues 865 909 840 2,614 846 3,460 869 799 824 2,492 Exceptional items -1 -8 15 5 -49 -43 -8 -23 -42 -74 Total revenues 864 901 855 2,62
Slide 32: Asset & Capital Recovery
Commerzbank 5.0 digital – personal – responsible Asset & Capital Recovery Q1 Q2 Q3 9M Q4 FY Q1 Q2 Q3 9M €m 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 Total clean revenues 68 10 2 80 22 103 14 -11 - 3 Exceptional items -23 51 26 54 -43 11 -3 78 - 75 Total revenues 45 62 28 134 -20 114 11 68 -
Slide 33: Others & Consolidation
Commerzbank 5.0 digital – personal – responsible Others & Consolidation Q1 Q2 Q3 9M Q4 FY Q1 Q2 Q3 9M €m 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 Total clean revenues 72 15 53 140 98 238 86 62 104 252 Exceptional items - - -1 -1 -1 -2 -2 - -29 -32 Total revenues 72 15 53 140 96 236 84 62 75
Slide 34: mBank
Commerzbank 5.0 digital – personal – responsible mBank Part of Private and Small Business Customers’ segment Q1 Q2 Q3 9M Q4 FY Q1 Q2 Q3 9M €m 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 Total clean revenues 253 265 265 783 257 1,040 274 294 298 866 Exceptional items 52 - - 52 -1 52 - -3 -2 -5
Slide 35: Exceptional revenue items
Commerzbank 5.0 digital – personal – responsible Commerzbank Group Exceptional revenue items Q1 Q2 Q3 9M Q4 FY Q1 Q2 Q3 9M €m 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 Exceptional Revenue Item s 1 18 18 37 -115 -78 -34 34 13 13 o/w Net interest income -26 -17 -20 -63 -17 -80 -22 -16 -17 -56
Slide 36: Group equity composition
Commerzbank 5.0 digital – personal – responsible Group equity composition Capital Capital Capital Ratios Ratios Ratio Q2 2019 Q3 2019 Q3 2019 Q3 2019 9M 2019 Q3 2019 End of period End of period Average €bn €bn €bn % % % Common equity tier 1 capital fully loaded 24.0 24.2 24.1 1 Op. RoCET 7.4% 5.6%
Slide 37: Glossary – key ratios
Commerzbank 5.0 digital – personal – responsible Glossary – key ratios Key Ratio Abbreviation Calculated for Numerator Denominator Private and Small Business Group Customers and Corporate Asset & Capital Recovery Others & Consolidation Clients Cost/income ratio (excl. CIR (excl. Group as well as com
Slide 38: For more information, please contact Commerzbank's IR team
Commerzbank 5.0 digital – personal – responsible For more information, please contact Commerzbank’s IR team Christoph Wortig (Head of Investor Relations) P: +49 69 136 52668 Mail: [email protected] M: [email protected] www.ir.commerzbank.com Ansgar Herkert (Head of IR Communications)
Slide 39: Disclaimer
Commerzbank 5.0 digital – personal – responsible Disclaimer This release is neither an offer to purchase nor a solicitation of an offer to sell comdirect bank Aktiengesellschaft shares or any other security. The offer document, the terms and conditions contained therein shall have sole relevance in