Commerzbank AG · XETR:CBK
Commerzbank — Deutsche Bank German Corporate Conference 2005
27 slides from Commerzbank's conference presentation, Jun 2, 2005
Slide 1: Deutsche Bank German Corporate Conference
Deutsche Bank German Corporate Conference Commerzbank Klaus-Peter Müller Chief Executive Officer Frankfurt am Main June 2, 2005
Slide 2: Good start in 2005
Chart 1 Good start in 2005 Q1 04 Q1 05 2004* Target 2005 Operating profit (€ m) 427 541 1,011 up Net profit (€ m) 246 395 362 >750 RoE (after tax, %)** 10.9 16.8 4.3 >8 Cost/income ratio in operating business (%) 62.6 60.0 70.9 < 69 Tier 1 ratio*** 7.3 7.2 7.5 stable substantially Earnings per share
Slide 3: Good start in 2005
Chart 2 Good start in 2005 in € m Operating profit higher than Q1 2004 Total income increased vs. Q1 2004 Operating profit Total income* 1,510 6,340 23 166 1,011 1,308 395 1,744 * 427 541 1,777 1,846 Q1 Q2 Q3 Q4 2004 Q1 Q1 Q2 Q3 Q4 2004 Q1 Cost management as permanent task Loan-loss provisions conti
Slide 4: Q1 results underline Commerzbank's main achievements
Chart 3 Q1 results underline Commerzbank’s main achievements § Well-capitalized balance sheet § Strong Tier 1 ratio 1. Strong capital base § Significant increase of revaluation and other reserves § Successful transformation 2. Operating strength § Focused strategy § Considerable reduction of risk ex
Slide 5: Strong capital base
Chart 4 Strong capital base Tier I capital ratio (in %)* Strengthened balance sheet (2001 – 2004) § Great improvement in balance-sheet quality 7.7 7.8 § Much stronger equity base due to 7.5 § Swing in revaluation reserves 7.2 (form -€769m to €1.6bn) 7.4 7.1 7.3 7.2 § Capital increase (of €742m) 7.0
Slide 6: Commerzbank with a clear strategic profile
Chart 5 Commerzbank with a clear strategic profile Commerzbank PCAM CIB Private & Asset Mittelstands- International Corporates & Business Corporate Customers Management bank Banking Markets § Retail Banking § Asset § Mittelstand § Western Europe § Multinational and Management Germany selected larger
Slide 7: Private & Business Customers: one of the more successful European retail banking platforms
Chart 6 Private & Business Customers: CB has one of the more successful European retail banking platforms Commerzbank´s Top 3 retail bank in Germany with 5m customers (plus 1m retail strategic customers at BRE Bank) Position § 4.3m branch customers (+10% y-o-y) § No. 1 in Online Banking § No. 2 in P
Slide 8: Private & Business Customers: Success story maintained
Chart 7 Private & Business Customers: Success story maintained €m €m Q1 2004 * Q1 2005 Change Outlook 2005 Net interest income 284 274 -4% Operating Loan loss provision -39 -46 +18% profit in € m § Focus on providing sustainable growth Interest after prov. 245 228 -7% § Lending margins should remain
Slide 9: Asset Management: Shifting into higher-margin products
Chart 8 Asset Management: Shifting into higher-margin products Commerzbank´s Top 5 Asset Management company in Germany strategic § Assets under management at a stable level Position Quality leader in UK and France through our foreign units Jupiter and CCR § Highly regarded awards for Jupiter and CCR
Slide 10: Asset Management: Well on its way
Chart 9 Asset Management: Well on its way €m €m Q1 2004* Q1 2005 Change Outlook 2005 Net interest income -3 4 - Operating profit Loan loss provision - - - in € m § Assets under management stable Interest after prov. -3 4 - despite open architecture Commission income 141 127 -10% § Ongoing product mi
Slide 11: Asset Management: Focus on core areas and know-how leverage
Chart 10 Asset Management: Focus on core areas and Group-wide know-how leverage § Expertise in German equities Cominvest § Highly successful performance of Adig funds § Winner of various awards (e.g. Flagship “Adig Fondak” for many years winner of S&P and Lipper Fund Award) Know-how leverage and coo
Slide 12: Mittelstandsbank: Positive earnings trend in Germany as well as in CEE
Chart 11 Mittelstandsbank: Positive earnings trend in Germany as well as in CEE Top 2 Mittelstandsbank in Germany Commerzbank´s § Approx. 40% of German (S)MEs run a Commerzbank account strategic § Market share of over 16% in handling the financial side of Position Germany´s global trade Top 10 playe
Slide 13: Mittelstandsbank: Measures implemented in 2004 producing positive results
Chart 12 Mittelstandsbank: Measures implemented in 2004 producing positive results €m €m Q1 2004* Q1 2005 Change Outlook 2005 Net interest income 269 280 +4% Operating profit in € m § All units show promising trend this year Loan loss provision -151 -118 -22% Interest after prov. 118 162 +37% § Germ
Slide 14: Strategy in CEE is focused on selective growth
Chart 13 Strategy in CEE is focused on selective growth Objectives Strong presence in CEE BRE Bank: Corporate Banking: § Leading bank for high-quality corporate clients Retail Banking: § Maintaining market leadership in Internet banking § Remaining market leader for new investment products Private B
Slide 15: International Corporate Banking: Successful niche strategy
Chart 14 International Corporate Banking: Successful niche strategy Commerzbank´s No. 2 Financial Institution Group in Germany strategic § Partner for more than 6,000 financial institutions Position § Successful international operating units § Concentration on value-creating structured lending produ
Slide 16: International Corporate Banking: Successful niche strategy
Chart 15 International Corporate Banking: Successful niche strategy €m €m Q1 2004* Q1 2005 Change Outlook 2005 Net interest income 81 64 -21% Operating profit in € m § Focus on high-quality borrowers Loan loss provision -36 -19 -47% prevents widening of margins Interest after prov. 45 45 +/-0% 115 C
Slide 17: Corporates & Markets: Repositioning in securities business showing effect
Chart 16 Corporates & Markets: Repositioning in securities business showing effect Commerzbank´s No. 2 Mandated Lead Manager for LBOs in Germany strategic No. 3 Distributor of structured products in Germany as well as in Position France § Turnaround in Markets section Profitability Drivers § Focusin
Slide 18: Corporates & Markets: Return to profit in Q1 2005
Chart 17 Corporates & Markets: Return to profit in Q1 2005 €m €m Q1 2004* Q1 2005 Change Outlook 2005 Net interest income 58 49 -16% Operating profit § Maintaining strong performance in in € m Loan loss provision -7 -7 +/-0% C&M Interest after prov. 51 42 -18% 149 § Former loss-making areas such as
Slide 19: Commerzbank: Risks well under control
Chart 18 Commerzbank: Risks well under control VaR* in Investment Banking substantially reduced over the past year Commerzbank Group VaR** In € m 100.4 -37% 63.2 30 Q1 2004 Q1 2005 25 20 15 Actual VaR 10 5 02.01.04 02.02.04 02.03.04 02.04.04 02.05.04 02.06.04 02.07.04 02.08.04 02.09.04 02.10.04 02.1
Slide 20: Mortgage Banking with positive value contribution
Chart 19 Mortgage Banking with positive value contribution Commerzbank´s Significant participations in three mortgage banks strategic § Eurohypo: Leading European bank for mortgage and public- Position sector finance § Essenhyp: Most profitable German public-sector finance bank § EEPK: Successful ni
Slide 21: Mortgage Banking: Positive contribution from Eurohypo
Chart 20 Mortgage Banking: Positive contribution from Eurohypo €m €m Q1 2004* Q1 2005 Change Outlook 2005 Net interest income 59 96 +63% Operating profit Loan loss provision -5 -8 +60% in € m § Marked improvement in results Interest after prov. 54 88 +63% expected, thanks to stable, after- 69 Commis
Slide 22: Mortgage banks: On the way to increased profitability
Chart 21 Mortgage banks: On the way to increased profitability CBK’s share Equity of capital held § Management prepares for stock market (SPO) Eurohypo § Target of 10% RoE (after tax) in 2007 €5,100m 31.8% § Roll-out and strengthening of international business, esp. Asia and USA § Maintaining succes
Slide 23: Others & Consolidation: Strong AfS result in Q1
Chart 22 Others & Consolidation: Strong AfS result in Q1 €m €m Q1 2004* Q1 2005 Change Outlook 2005 Net interest income -7 -46 - Operating profit Loan loss provision - - - in € m § Increasing overall transparency Interest after prov. -7 -46 - 168 through new structure of segment Commission income 1
Slide 24: Three main challenges for 2005
Chart 23 Three main challenges for 2005 Focus Value drivers 1. Enhancement of § Germany: revenues, cross selling, costs and profitability in LLPs Mittelstandsbank § BRE Bank: turnaround and growth opportunities § Improving profit in Markets section 2. Positioning of § Focusing on regions and product
Slide 25: Commerzbank aims to achieve European RoE standards
Chart 24 Commerzbank aims to achieve European RoE standards Return on equity (after-tax) targets 2006 2005 > 10% 2004* ≥ 8% (long-term cost of capital) 4.3% (current cost of capital) Major step towards our current cost of capital * restated
Slide 26: For more information, please contact
For more information, please contact: Commerzbank Investor Relations Tel. +49 (69) 136 22 33 8 ir@commerzbank.com
Slide 27: Investor relations disclaimer
Chart 26 Chart 18 /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 represen
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