Commerzbank AG · XETR:CBK
Commerzbank — Q2 2007 Earnings Presentation
31 slides from Commerzbank's earnings presentation, Aug 9, 2007
Slide 1: Analyst conference – Q2 2007 results
Commerzbank Analyst conference – Q2 2007 results Dr. Eric Strutz, Chief Financial Officer Frankfurt, August 9th, 2007
Slide 2: Focus on growth and profitability
Focus on growth and profitability Q2`07 vs. Q2`06 H1`07 vs. H1`06 Revenues1, in € m 2,550 +13.2% 4,978 +9.1% Operating profit, in € m 1,075 +53.6% 1,983 +19.5% Net RoE, in % 24.7 +14.6ppts 22.1 +3.9ppts CIR, in % 1 before LLP 51.9 -7.0ppts 9 53.9 -1.3ppts 9 • High profit level in the underlying busi
Slide 3: Steady growth in net interest income (excl. PFT)
Steady growth in net interest income (excl. PFT) Net interest income • Net interest income excluding in € m PFT up 5% y-o-y 1,060 1,050 1,045 1,003 975 • Very strong NII contribution 229 from Mittelstand (y-o-y) driven 831 by CEE as well as domestic business • Improving loan quality leads to a sligh
Slide 4: Commission income: High profitability level maintained
Commission income: High profitability level maintained Commission income in € m 847 38 798 • Commission income in Q2 758 grew by 12 % y-o-y 734 718 677 • Seasonal impact on securities business • Syndication business is steadily gaining in importance Q1`06 Q2`06 Q3`06 Q4`06 Q1`07 Q2`07 Pro-forma full
Slide 5: Trading profit: Outperforming expectations
Trading profit: Outperforming expectations Trading profit in € m 381 • Best quarterly result within the 337 74 last 5 years 320 11 14 301 286 2 • With €327m C&M once again 48 exceeded the high trading 326 307 profits of previous quarters 306 299 -96 264 - Very strong equity 168 238 derivatives busin
Slide 6: Cost discipline maintained
Cost discipline maintained Personnel Operating expenses Depreciation 463 in € m Others 784 77 • Cost reduction despite growth 1,395 programs 1,327 1,292 1,360 1,324 130 • Other operating expenses flat 1,190 q-o-q • As a result of the deconsolidation of Jupiter, personnel expenses were lower in Q2 by
Slide 7: Operating profit of nearly €2bn best half-year result ever
Operating profit of nearly €2bn best half-year result ever Operating profit in € m 2 • Clean operating profit 87 1.075 grew by 35% (y-o-y) 960 908 • Mittelstand and C&M main core profit drivers 700 • One-off gain from 87 631 Jupiter disposal of 537 831 €327m in Q2 (booked 746 almost entirely in AfS-
Slide 8: Q2 bottom line profit at all time record level
Q2 bottom line profit at all time record level Net profit in € m 768 • Clean net profit up 31% 743 y-o-y 609 • In H1, EPS of 2.10 Euro 532 reached 86% of full FY 462 2006 352 352 320 285 • H1 net RoE of 22% 217 excellent basis for above target year-end result • Q2 2007 tax rate 26%; 2 2 2 2 Q1`06Cle
Slide 9: Comfortably high capital levels
Comfortably high capital levels Revaluation reserve Regulatory capital (Tier I) in € m in € m Jun 2006 Dec 2006 Mar 2007 Jun 2007 Subscribed capital 1,707 1,705 1,708 1,708 Reg. Reserves 9,655 9,983 10,362 10,815 1,997 Minority interests (BIS) 910 884 1,029 1,017 1,746 Hybrid capital 2,519 2,925 3,0
Slide 10: Balanced profit mix at Group level
Balanced profit mix at Group level Operating profit in € m Private & Business Customers Mittelstand Corporates & Markets 312 266 269 137 145 221 209 104 188 169 174 71 152 129 163 36 113 -19 -8 -231 1 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2006 2007 2006 2007 2006 2007 1 incl. one
Slide 11: PBC: Continued high level of operating result
PBC: Continued high level of operating result Main P&L items Operating profit in € m Q2`06 Q2`07 H1`06 H1`06 PF H1`07 in € m Net interest income 328 318 616 662 637 145 Risk provisioning -72 -66 -128 -143 -139 137 104 71 Commission income 344 380 754 752 810 36 Operating expenses 527 531 1,022 1,052
Slide 12: Mittelstand: Excellent income level confirmed
Mittelstand: Excellent income level confirmed Main P&L items Operating profit in € m Q2`06 Q2`07 H1`06 H1`06 PF H1`07 in € m 312 Net interest income 287 360 603 593 693 266 269 221 Risk provisioning -81 -25 -161 -161 -55 152 129 Commission income 165 175 324 324 362 Operating expenses 261 277 530 53
Slide 13: Corporates & Markets: Best quarterly result
Corporates & Markets: Best quarterly result Main P&L items Operating profit in € m Q2`06 Q2`07 H1`06 H1`06 PF H1`07 in € m Net interest income 76 96 169 161 197 209 Risk provisioning -9 -10 -20 -20 -23 188 169 174 163 Commission income 38 61 86 86 106 113 Trading profit 281 327 563 563 616 Operating
Slide 14: CRE: Significant increase in operating profit (Q2 +24% y-o-y)
CRE: Significant increase in operating profit (Q2 +24% y-o-y) Main P&L items Operating profit in € m Q2`06 Q2`07 H1`06 H1`06 PF H1`07 in € m Net interest income 222 211 272 434 422 Risk provisioning -55 -39 -59 -96 -78 164 153 Commission income 65 95 97 139 195 146 152 123 Operating expenses 134 138
Slide 15: PFT: Performance suffers given rising interest rates
PFT: Performance suffers given rising interest rates and unfavorable market environment Main P&L items Operating profit in € m Q2`06 Q2`07 H1`06 H1`06 PF H1`07 in € m Net interest income 117 11 202 246 79 Trading profit -8 -7 -16 -16 -12 AfS result 32 43 18 36 122 112 Operating expenses 22 27 36 43
Slide 16: Others & Consolidation (incl. international Asset Management units)
Others & Consolidation (incl. international Asset Management units) Main P&L items Operating profit in € m Q2`06 Q2`07 H1`06 H1`06 PF H1`07 in € m 381 Net interest income 30 7 29 24 20 322 Commission income 78 54 167 167 145 AfS result 138 215 573 573 328 96 82 Other result -41 128 -63 -62 120 Opera
Slide 17: Impact of JUPITER disposal on Q2 results
Impact of JUPITER disposal on Q2 results • AfS result €243m proceeds from sale • Other results €94m 1. One-off effect release of sundry provisions • Operating expenses - €10m external advisory fees €327m Recurring P&L effect due • Main items in Q2 vs Q1 2007 2. to deconsolidation in Q2 - commission
Slide 18: Balanced approach of profitability and growth
Balanced approach of profitability and growth • Significant investment programs to enhance organic growth in our core divisions Current • Expanding in regions and products with competitive strengths Growth • High exposure to strong German economy leads to … Lever 1 … increased growth momentum Ongoin
Slide 19: Positive outlook for 2007
Positive outlook for 2007 H2 062 Outlook FY 2007 H1 061 H1 072 PBC 249 Operating profit should exceed €350m 189 98* 533 535 MSB 271 Similar level for H2 2007 as in H1 2007 C&M 383 349 276 Similar level as in FY 2006 (€625m) CRE 262 298 317 H2 2007 in-line with H1 2007 PFT H2 2007 in-line with H1 200
Slide 20: Appendix 1: Quarterly results in new Group structure
Appendix 1 Quarterly results in new Group structure August 9th, 2007 19
Slide 21: Commerzbank Group Quarterly results in new Group structure
Commerzbank Group Quarterly results in new Group structure Q1 2006 Q2 2006 H1 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Q2 2007 H1 2007 pro form a pro form a pro form a Net interest income 1,060 1,060 2,120 1,050 975 4,145 1,045 1,003 2,048 Provision for possible loan losses -211 -225 -436 -415 -79
Slide 22: Private and Business Customers Quarterly results
Private and Business Customers Quarterly results in new Group structure Q1 2006 Q2 2006 H1 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Q2 2007 H1 2007 Mio. Euro pro form a pro form a pro form a Net interest income 334 328 662 336 328 1,326 319 318 637 Provision for possible loan losses -71 -72 -143 -3
Slide 23: Mittelstand Quarterly results
Mittelstand Quarterly results in new Group structure Q1 2006 Q2 2006 H1 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Q2 2007 H1 2007 Mio. Euro pro form a pro form a pro form a Net interest income 306 287 593 328 343 1,264 333 360 693 Provision for possible loan losses -80 -81 -161 -13 46 -128 -30 -25 -
Slide 24: Corporates & Markets Quarterly results
Corporates & Markets Quarterly results in new Group structure Q1 2006 Q2 2006 H1 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Q2 2007 H1 2007 Mio. Euro pro form a pro form a pro form a Net interest income 85 76 161 90 87 338 101 96 197 Provision for possible loan losses -11 -9 -20 27 4 11 -13 -10 -23 N
Slide 25: Commercial Real Estate Quarterly results
Commercial Real Estate Quarterly results in new Group structure Q1 2006 Q2 2006 H1 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Q2 2007 H1 2007 Mio. Euro pro form a pro form a pro form a Net interest income 212 222 434 209 232 875 211 211 422 Provision for possible loan losses -41 -55 -96 -41 -48 -185
Slide 26: Public Finance & Treasury Quarterly results
Public Finance & Treasury Quarterly results in new Group structure Q1 2006 Q2 2006 H1 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Q2 2007 H1 2007 Mio. Euro pro form a pro form a pro form a Net interest income 129 117 246 113 14 373 68 11 79 Provision for possible loan losses -8 -8 -16 -7 -5 -28 -5 -7
Slide 27: Others and Consolidation Quarterly results
Others and Consolidation Quarterly results in new Group structure Q1 2006 Q2 2006 H1 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Q2 2007 H1 2007 Mio. Euro pro form a pro form a pro form a Net interest income -6 30 24 -26 -29 -31 13 7 20 Provision for possible loan losses 0 0 0 0 0 0 0 -4 -4 Net intere
Slide 28: Appendix 2: Group equity definitions
Appendix 2 Group equity definitions August 9th, 2007 27
Slide 29: Group equity definitions
Group equity definitions Reconciliation of equity definitions Equity basis for RoE Equity definitions in € m Jun-2007 Subscribed capital 1,708 Capital reserve 5,705 Retained earnings 5,122 Reserve from currency translation -51 Investors‘ capital without minorities 12,484 Basis for RoE on net profit
Slide 30: For more information, please contact:
For more information, please contact: Ute Heiserer-Jäckel P: +49 69 136 41874 Jürgen Ackermann (Head of IR) M: ute.heiserer-jaeckel@commerzbank.com P: +49 69 136 22338 M: juergen.ackermann@commerzbank.com Simone Nuxoll P: +49 69 136 45660 Sandra Büschken (Deputy Head of IR) M: simone.nuxoll@commerzb
Slide 31: Disclaimer
Disclaimer / investor relations / This presentation has been prepared and issued by Commerzbank AG. This publication is intended for professional and institutional customers. / Any information in this presentation is based on data obtained from sources considered to be reliable, but no representatio