Commerzbank Ag · XETR:CBK
Commerzbank — Investor Day (September 2006)
30 slides from Commerzbank's investor day presentation, Sep 21, 2006
Slide 1: Investors' Day: Mittelstand bank: a value-driven strategy
Investors´ DAY Mittelstand bank: a value-driven strategy Frankfurt, September 21, 2006 Martin Blessing Member of the Board of Managing Directors
Slide 2: Disclaimer
Disclaimer / investor relations / All presentations shown at Investors’ Day contain pro forma results for Q1 2006 and Q1-Q4 2005 to fully reflect the integration effect of Eurohypo. The pro forma results include Eurohypo results as if integrated as from January 1st, 2005 (incl. full refinancing cost
Slide 3: Focussed quality-driven strategy is bearing fruits
Focussed quality-driven strategy is bearing fruits Mittelstand Bank Segment Operating profit Operating profits up 45% at mid-year comparison Return on equity Fifth quarter in series with RoE above target 2007 Increased importance of value added products shown Commission income by upward proportion o
Slide 4: Focussed quality driven strategy is bearing fruits
Focussed quality driven strategy is bearing fruits Mittelstand Bank Segment H1 results up 45% Fifth quarter in series with RoE above target 2007 Operating profit RoE ROE target in € m in % 2007: 17% 283 30.8 219 195 23.0 20.7 18.7 157 148 135 18.0 19.7 118 14.9 77 11.9 +14.4% +45.2% Q1 Q2 Q3 Q4 Q1 Q
Slide 5: Agenda
1. 2. 3. 4. 5. Agenda 1. Mittelstand Bank structure of enlarged segment Mittelstand Bank Germany on a track to become 2. “The best nationwide bank for corporate customers” Eastern Europe complemented by Promsvyazbank 3. and Asia Pacific 4. Financial Institutions as enlargement of Mittelstand Bank se
Slide 6: Mittelstand Bank segment opens up a wide field of new opportunities
1. 2. 3. 4. 5. Mittelstand Bank segment opens up a wide field of new opportunities MITTELSTAND BANK SEGMENT Germany CEE / Asia Financial Institutions Mittelstand Bank Germany CEE • Business activity with banks worldwide – more than • Small / Medium Enterprises • BRE Bank (Poland) 6,000 contacts • La
Slide 7: Profitability of Mittelstand Bank still with strong momentum
1. 2. 3. 4. 5. Profitability of Mittelstand Bank still with strong momentum Mittelstand Segment (pro forma figures) Operating profit 283 Loan-loss provisions in € m in € m 219 at budget 195 196 157 148 135 151 -17.0% 118 105 77 91 +45.2% 75 76 -22.9% +14.4% 44 -11 Q1 Q2 Q3 Q4 Q1 Q2 H1 H1 Q1 Q2 Q3 Q4
Slide 8: Increased H1 result due to strong revenue growth
1. 2. 3. 4. 5. Increased H1 result due to strong revenue growth Revenues in € m • Decrease in revenues q-o-q due to +19.0% • Extraordinary income from asset & liability 814 management in Q1 -4.8% 684 • Lower interest on equity tied up in Q2 due to Eurohypo acquisition 417 397 • Strong increase y-o-y
Slide 9: Operating profit up year-on-year in nearly all units
1. 2. 3. 4. 5. Operating profit up year-on-year in nearly all units Segment* Germany in € m +45.2% in € m +91.3% 283 191 195 100 H1 '05 H1 '06 H1 '05 H1 '06 CEE / Asia Financial Institutions in € m in € m +/-0% 53 53 +43.9% 40 28 H1 '05 H1 '06 H1 '05 H1 '06 * incl. others, e.g. Dt. Schiffsbank 8 / 2
Slide 10: Agenda
1. 2. 3. 4. 5. Agenda 1. Mittelstand Bank structure of enlarged segment Mittelstand Bank Germany on a track to become 2. “The best nationwide bank for corporate customers” Eastern Europe complemented by Promsvyazbank 3. and Asia Pacific 4. Financial Institutions as enlargement of Mittelstand Bank se
Slide 11: Mittelstand Bank Germany – solid profit growth results from strong increase in revenues
1. 2. 3. 4. 5. Mittelstand Bank Germany – solid profit growth results from strong increase in revenues… Operating profit Loan loss provisions in € m in € m 191 at budget 175 +91.3% 121 117 102 90 -28.6% 96 100 93 82 57 +57.4% 58 59 43 46 -33.2% 14 Q1 Q2 Q3 Q4 Q1 Q2 H1 H1 Q1 Q2 Q3 Q4 Q1 Q2 H1 H1 2005
Slide 12: Revenues driven by successful product initiatives
1. 2. 3. 4. 5. …Revenues driven by successful product initiatives… Value Drivers (Revenues, in € m) Outlook / New initiatives Interest, Currency & 109 • Growth-programme for interest 87 32 rate derivatives: revenues shall Liquidity Management 24 be doubled until 2010 (base- Main revenue contributors
Slide 13: … and new customers …
1. 2. 3. 4. 5. … and new customers … Achievements Outlook / New initiatives • Revenue realised in H1 ’06 with new customers (gained since 2004): approx. €150m • Revenues with new customers overcompensate natural customer losses through lifecycle New customers since 2004 1,444 12,555 CUSTOMERS 1,391
Slide 14: Clients already give us best grades – gap to non-listed banks nearly closed
1. 2. 3. 4. 5. …clients already give us best grades – gap to non-listed banks nearly closed Commerzbank – strongest improvement compared to competitors high Average 2005 poor Evaluation criteria, e.g. performance 3.30 performance • Demand-oriented products & services for SMEs 3.04 Commerzbank 3.45 •
Slide 15: Volumes and margins
1. 2. 3. 4. 5. Volumes and margins H1 `05 H1 `06 Change Total lending, in € bn* 41.3 43.3 +5% Loan-loss provision ratio, in %** 0.95 0.70 -25bps Domestic lending, in € bn 35.5 35.8 +1% Margin on domestic lending, in %** 1.48 1.43 -5bps Domestic customers’ deposits, in € bn 18.4 18.9 +3% Margin on do
Slide 16: New product initiatives will further increase revenues and address cross selling potential
1. 2. 3. 4. 5. New product initiatives will further increase revenues and adress cross selling potential - examples Initiative Objectives Financial impact • Push attractive derivative business as demand Revenues increases and market environment remains in € m 100 Derivative positive 48 business • Do
Slide 17: Agenda
1. 2. 3. 4. 5. Agenda 1. Mittelstand Bank structure of enlarged segment Mittelstand Bank Germany on a track to become 2. “The best nationwide bank for corporate customers” Eastern Europe complemented by Promsvyazbank 3. and Asia Pacific 4. Financial Institutions as enlargement of Mittelstand Bank se
Slide 18: Commerzbank in CEE well diversified with different market approaches
1. 2. 3. 4. 5. Commerzbank in CEE* well diversified with different market approaches Main units Promsvyazbank Headcount: 3,682 CB Eurasija SAO Total assets: €3,271m Russia Headcount: 74 Pre tax profit: €66.7m Total assets: €1,631m Russia Pre tax profit: €31m BRE Bank Headcount: 3.413 + Poland Total
Slide 19: Commerzbank in CEE with sustainable stable profits
1. 2. 3. 4. 5. Commerzbank in CEE with sustainable stable profits Operating profit in € m (without PSB) 32 29 38 19 • Decrease in operating profit q-o-q 16 20 17 18 2006 at BRE mainly due to an 14 15 extraordinary profit from 9 6 9 6 9 securities sales in Q1 06 3 Q1 Q2 Q3 Q4 Q1 Q2 H1 H1 • H1 05 to H
Slide 20: Russian economy: strong growth of banking assets
1. 2. 3. 4. 5. Russian economy: strong growth of banking assets due to catch up of under penetrated banking level and reform initiatives GDP growth Growth of total banking assets in RUB bn +5.4%* in RUB bn +6.4%* 24,806 +20% +37% +7.2%* 21,665 11,747 +27% +7.3%* 16,752 14,435 +35% 9,750 13,243 11,82
Slide 21: Promsvyazbank: one of the fastest growing private banks in Russia
1. 2. 3. 4. 5. Promsvyazbank: one of the fastest growing private banks in Russia Top market position (8th largest private bank) Profile of Promsvyazbank Assets Equity 12/2005 12/2005 Top 15 Banks Owner* No in € m No in € m • Full-service commercial bank Sberbank Vneshtorgbank S S 1 2 73,767 18,457 1
Slide 22: Promsvyazbank: fast growing and profitable business
1. 2. 3. 4. 5. Promsvyazbank: fast growing and profitable business Assets Tier 1 capital in RUB bn in RUB m 12,400 128 +44% 11,028 111 +91% 7,665 5,663 58 42 3,708 24 2002 2003 2004 2005 H1 2006 * 2002 2003 2004 2005 H1 2006* Loans to customers Net income in RUB bn 90 in RUB m +35% 64 1,645 +88% 1,2
Slide 23: BRE Bank – The best financial institution for sophisticated corporate customers
1. 2. 3. 4. 5. BRE Bank – The best financial institution for sophisticated corporate customers, individuals and entrepreneurs Positioning Investment Corporate Retail Asset Banking Banking Banking (+PB) Management • No 1: bank and • mBank: Poland`s • Corporate loans: corporate bond internet banking 6
Slide 24: BRE Bank – New strategic initiatives
1. 2. 3. 4. 5. BRE Bank – New strategic initiatives Expansion of the MultiBank branch network Bank assurance project Lower capex… Key (on average per 1.5m 1.2m success factors branch, PLN) 0.8m Price: significantly lower than in other distribution …to reach the CUF CUF Branch of channels break-even
Slide 25: Asia Pacific - Integration supports our customers' approach
1. 2. 3. 4. 5. Asia Pacific - Integration supports our customers´ approach Our mission is to be the best bank for our clients in Asia Objectives Initiatives • Serve our German clients in Asia and a select • Restructuring of client portfolio to focus on number of Asian clients with core clients and p
Slide 26: Agenda
1. 2. 3. 4. 5. Agenda 1. Mittelstand Bank structure of enlarged segment Mittelstand Bank Germany on a track to become 2. “The best nationwide bank for corporate customers” Eastern Europe complemented by Promsvyazbank 3. and Asia Pacific 4. Financial Institutions as enlargement of Mittelstand Bank se
Slide 27: Financial Institutions – No. 2 Financial Institutions Group in Germany
1. 2. 3. 4. 5. Financial Institutions – No. 2 Financial Institutions Group in Germany We offer… • Transaction and financing solutions to banks, central banks and sovereigns worldwide • Worldwide correspondent banking network to ensure continuous local presence Our strategic objectives… • Expanding o
Slide 28: Agenda
1. 2. 3. 4. 5. Agenda 1. Mittelstand Bank structure of enlarged segment Mittelstand Bank Germany on a track to become 2. “The best nationwide bank for corporate customers” Eastern Europe complemented by Promsvyazbank 3. and Asia Pacific 4. Financial Institutions as enlargement of Mittelstand Bank se
Slide 29: We continue our value driven strategy
1. 2. 3. 4. 5. We continue our value driven strategy Op. RoE Mittelstand Segment • We will reach our 2007 RoE target already this year • Our growth initiatives based on an enhanced > 20% equity management will further drive our RoE > 17% • Continuing of our “Move to the Top” programme to keep the po
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