Commerzbank Ag · XETR:CBK
Commerzbank — Investor Presentation (May 2018)
25 slides from Commerzbank's investor presentation, May 16, 2018
Slide 1: Commerzbank: digital and personal
Commerzbank: digital and personal Workshop – Private and Small Business Customers (PSBC) Commerzbank AG | Michael Mandel | Board Member | Ulrich Coenen | Divisional Board Member | London | 16 May 2018
Slide 2: Since 2014 we have pursued a consistent retail banking strategy
Since 2014 we have pursued a consistent retail banking strategy › The future of retail banking is digital and personal – multi-channel banking will replace branch-based banking faster than we think › Digital data management and digital CRM will revolutionise our customer advisory and sales processes
Slide 3: Update PSBC (Germany) – we made further progress in multiple areas
Update PSBC (Germany) – we made further progress in multiple areas More Assets under Control and customers Improved earnings quality (AuC: €m eop) NII - loans / Other** 2,945 2,782 NII - deposits NCI Securities 376 12.8m 1,063 1,314 12.2m volume-based 11.0m NCI Securities 326 91 702 465 transaction-
Slide 4: New customers remain on track to yield above-average income
New customers remain on track to yield above-average income (~€300) Ø Revenue per new customer per year* Domestic branch business (in €) 2013 2014 2015 2016 2017 New customers Year 1 Year 2 Year 3 Year 4 Year 5 2013 94 243 268 280 305 New customers Year 1 Year 2 Year 3 Year 4 2014 94 294 319 352 New
Slide 5: Growth potential from both new as well as existing customers
Growth potential from both new as well as existing customers Revenue: in € per customer 1› Largely cost free current Perspective (domestic branch business) 1.000 account as anchor 2020 product offers sizable 2 Securities 2017 cross-selling potential in 750 32% lending and securities 2 Loans* 2016 2›
Slide 6: New customers account for more than half of AuC growth in 2017
New customers account for more than half of AuC growth in 2017 Assets under Control* (AuC) AuC growth 2017 EoP in €bn AuC growth from 23% Existing client base 57% +38 New customers 20% +17 thereof new clients +21 26% 376 35% +21 338 39% Deposits Year-end New business Year-end Loans 2016 2017 2017 Se
Slide 7: Attractive new customer mix because of favorable channel mix
Attractive new customer mix because of favorable channel mix Age of new vs. age of existing clients* (%) Quality characteristics of new clients* client base new clients 2016 existing clients for comparison new clients new clients +11% +6% 26 1Q17-3Q17 22 73 75 21 +14% 71 66 18 17 16 15 49 43 13 13 9
Slide 8: Where competitors close branches our growth is particularly strong
Where competitors close branches our growth is particularly strong The future is digital and personal City Kaltenkirchen branches ca. 21,000 inhabitants › 80% more net new customers City branch › 14% more new business „ONE“: one City › 14% more total revenues platform for branch Dense branch network
Slide 9: Rapid growth in mobile banking offers revenue and cost opportunities
Rapid growth in mobile banking offers revenue and cost opportunities Active Mobile Banking User* Money transfer per channel (k) (March 2018) +115% 939 887 Mobile Other 813 8% 737 16% 583 paper based 10% 437 10% ATM 56% Online 2016 1Q17 2Q17 3Q17 4Q17 1Q18 Numerous new mobile banking features to be r
Slide 10: Commerzbank 4.0 strategy is increasingly bearing fruits
Commerzbank 4.0 strategy is increasingly bearing fruits Digital State-of-the-art, award winning product range Personal Close to our clients with ~ 1.000 branches in efficient formats Competent clients Covering all client needs in highly competitive German market Growth On track to achieve our custom
Slide 11: Segment Small Business Customers (SBC)
Segment Small Business Customers (SBC) Ulrich Coenen, Divisional Board Member Commerzbank AG | Ulrich Coenen | Divisional Board Member | London | 16 May 2018
Slide 12: Market segment for German Small Business Customers is on the move
Market segment for German Small Business Customers is on the move 40% are dissatisfied with digital 4 out of 10 companies are banking offerings, while looking for a successor in 70% of customers use digital the next 5 years offerings Every 10th bank branch closed Entrepreneurs are looking in the las
Slide 13: SBC's strategy is based on the key strengths of Commerzbank
SBC’s strategy is based on the key strengths of Commerzbank Wide product range … … digital … … and personal › Commerzbank offers sophisticated › Our Commerzbank 4.0 strategy transforms › With 330 SBC and >100 Wealth product expertise from both the retail as the bank into a digital enterprise – clien
Slide 14: Our strategy: state-of-the-art solutions & client-centric business model
Our strategy: state-of-the-art solutions & client-centric business model Digital solutions Relationship model based on personal › Digital proposition to help the entrepreneur advisory and regional reach manage his business rather than just › 82% of small businesses within 30 offering transaction ban
Slide 15: German Small Business Customers represent an attractive client group
German Small Business Customers represent an attractive client group German SBC market Promising position in 2017 Ambition 2020 > 4m ~ 25% Enterprises customer reach – + €20bn (< €15 m turnover) / principal bank for AuC Self-employed 1 in 10 clients account for > € 50bn ~60% / ~25% / ~20% € 350m - €
Slide 16: Growth in AuC and revenues per customer drive future profitability
Growth in AuC and revenues per customer drive future profitability Ambitious medium-term targets Common strategic ground with PC* Germany (eop) Assets under +5% > 70 Growth Control (€bn) 50 53 52 SBC ambition +€350-450m higher revenue by 2020 Loans 20 22 22 Deposits › through AuC growth ahead of the
Slide 17: Customer penetration in lending and payment business is already high
Customer penetration in lending and payment business is already high 1.000 1 › Strongest growth expected Revenue € per customer* Perspective due to digitalized processes, 2020 change in product mix and 53% 750 new credit product initiatives (leasing, founder credit, etc.) 1 Loans 2 › CashRadar and o
Slide 18: Future focus on the entrepreneur's commercial sphere mainly drives NII
Future focus on the entrepreneur’s commercial sphere mainly drives NII Private sphere of the entrepreneur dominates Mid-term outlook: NII to outperform NCI (# of products used; as of year-end 2017) 1 › Residential mortgages account for < 40% of Loans 66% 34% 1 credit NII in 2017; we aim to lower the
Slide 19: Growing our customer base is additional priority – results are promising
Growing our customer base is additional priority – results are promising Characteristics of new vs. all clients Good quality of recent new client vintages (indexed to 100%) Analysis of our existing SBC client base shows that Online Banking profitability of a customer is highly correlated with … 131
Slide 20: Growth case SBC: strategy 4.0 bears fruits – strong pipeline of measures
Growth case SBC: strategy 4.0 bears fruits – strong pipeline of measures Premium Q1 / Q4 / Client migration Q3 / 2017 Sector:Radar 2017 2018 Customer centre 2018 private offer from CC Attacker offering to In-depths studies / Migrating customers Digital & Personal: develop private side industry-speci
Slide 21: Example for SBC's digital excellence: liquidity manager 'CashRadar'
Example for SBC’s digital excellence: liquidity manager ‘CashRadar’ CashRadar: digital liquidity management solution with multi-banking capability › Multi-banking solution gives full transparency over all of the entrepreneur’s business accounts › Revenues & expenditures analysis with liquidity forec
Slide 22: Leasing as a core product with strong growth and earnings potential
Leasing as a core product with strong growth and earnings potential Perfect example how to leverage PSBC’s strengths › Leasing platform in cooperation with Commerz Real as a strong and highly experienced partner › Digital & intuitive platform – fast leasing approval through direct contract creation
Slide 23: Commerzbank 4.0 strategy is increasingly bearing fruits
Commerzbank 4.0 strategy is increasingly bearing fruits Digital Numerous digital initiatives particularly on the corporate side Personal Proximity to our clients with dense nationwide branch network Competent clients Competitive strength due to strong Corporate Clients expertise Growth Focus on grow
Slide 24: For more information, please contact Commerzbank's IR team
For more information, please contact Commerzbank’s IR team Christoph Wortig (Head of Investor Relations) P: +49 69 136 52668 M: [email protected] Ansgar Herkert (Head of IR Communications) P: +49 69 136 44083 M: [email protected] Institutional Investors and Financial Anal
Slide 25: Disclaimer
Disclaimer 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 based on plans, estim