Commerzbank Ag · XETR:CBK
Commerzbank — Investor Day (September 2003)
21 slides from Commerzbank's investor day presentation, Sep 10, 2003
Slide 1: The current retail-banking strategy of Commerzbank for a changed environment
Investors’ Day 2003 The current retail-banking strategy of Commerzbank for a changed environment Martin Blessing Member of the Board of Managing Directors Glashütten/Taunus, September 10, 2003
Slide 2: Turnaround achieved and strategy formulated – growth is possible
investors‘ day september 10, 2003 1 Turnaround achieved and strategy formulated – growth is possible Turnaround achieved in Retail Banking and business line is on course to attain targeted return Commerzbank with clear strategy for successful retail-banking operations Growth is possible – Commerzban
Slide 3: Turnaround in Retail Banking on course to attain targeted return
investors‘ day september 10, 2003 2 Turnaround in Retail Banking and business line is on course to attain targeted return ROE* Retail Banking segment in % Already achieved/Extrapolation Medium-term planning Targeted return 17.3% ~1/3 of > 11% planned improvement > 7% in results 3.2% ~2/3 of -14.9% i
Slide 4: Turnaround achieved through significant cost reductions and stable earnings
investors‘ day september 10, 2003 3 Turnaround achieved through significant cost reductions and by holding earnings stable in difficult market environment 2003 result Earnings (after risk) in € m Stable earnings Operating profit (pre-tax) 1,840 1,841 despite: •Halving of DAX* ≥ €400m •Key interest r
Slide 5: Costs in 2003 likely to match their 1999 level
investors‘ day september 10, 2003 4 Costs in 2003 likely to match their 1999 level Development 1998-2003, in € m Income after provisioning Operating expenses 2,000 1,672 1998 1999 2000* 2001 2002 2003 (e) * adjusted for placing of comdirect bank shares
Slide 6: Quarterly figures for 2001-2003 show clear, positive trend
investors‘ day september 10, 2003 5 Quarterly figures for 2001-2003 show clear, positive trend in € m 2001 2002 2003 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net interest income 286 279 278 292 284 296 290 286 267 265 Provision for possible -31 -31 -11 -72 -33 -53 -59 -5 -44 -44 loan losses Net interest income
Slide 7: Volume trend in Commerzbank's Retail and Private Banking
investors‘ day september 10, 2003 6 Volume trend in Commerzbank’s Retail and Private Banking in € m Individual items 12/00 12/01 12/02 6/03 Loans (average, € m) 36,222 37,386 37,591 37,048 Change 12/00-6/03: - Home loans (fixed and floating) 23,605 24,185 24,114 23,604 >10% - Loans (floating interes
Slide 8: Margin trend in Commerzbank's Retail and Private Banking
investors‘ day september 10, 2003 7 Margin trend in Commerzbank’s Retail and Private Banking Annual averages in % Individual items 12/00 12/01 12/02 6/03 Change Loans 12/00-6/03: - Home loans (floating) 2.30 2.54 3.34 3.72 >10% - Home loans (fixed) 1.03 0.98 0.96 0.92 >2% - Loans (floating interest)
Slide 9: Turnaround achieved and strategy formulated – growth is possible
investors‘ day september 10, 2003 8 Turnaround achieved and strategy formulated – growth is possible Turnaround achieved in Retail Banking and business line is on course to attain targeted return Commerzbank with clear strategy for successful retail banking operations Growth is possible – Commerzban
Slide 10: Commerzbank well-positioned in important target segments
investors‘ day september 10, 2003 9 Commerzbank well-positioned in important target segments Market shares, by customer group in % Segments Positioning Retail customers ~2.9% § Retail customers important for maintaining Affluent customers ~6% economies of scale § Above-average Private-banking ~5% ma
Slide 11: Strategy based on four key pillars of business model
investors‘ day september 10, 2003 10 Strategy based on four key pillars of business model Innovative high- Further qualifica- yielding full range tion of staff to Products and Staff make them into services qualifications managers and sales experts Excellence Innovation Positioning Optimal use Optimi
Slide 12: Customer-oriented intelligent mix of products and services
investors‘ day september 10, 2003 11 Customer-oriented intelligent mix of products and services designed to achieve high returns Products and services •Home •Home loans loans on on best best market market conditions conditions •Strengthening •Strengthening of of short-term short-term consumer consum
Slide 13: Sustained investment in balanced staff qualifications
investors‘ day september 10, 2003 12 Sustained investment in balanced staff qualifications Existing and future qualifications Staff Present level qualifications Sales qualifications Target level for • Three-month intensive qualifications training per branch • 75 new sales trainers to Management qual
Slide 14: Optimized process management for creating sales capacity
investors‘ day september 10, 2003 13 Optimized process management for creating sales capacity and sales focus and also to improve quality Process management Sales Sales Back Back office office • Central call-centre for • Credit processing sales support centralized • Commerzbank’s customer Organizati
Slide 15: Innovative management of channels to secure market shares
investors‘ day september 10, 2003 14 Innovative management of channels to secure market shares geared to growth Commerzbank’s primary sales channels Sales channels Personal advice •Personal advice and comprehensive Branch Branch range of products and services Advisory centres •Serving affluent, priv
Slide 16: New type of branch for providing advice being tested in pilot branches
investors‘ day september 10, 2003 15 New type of branch mainly for providing advice currently being tested in seven pilot branches + Hardly any administrative work or + Flexible advisory units, cash transactions; focus on advice Sales maximum of channels three staff + Greater use of 24-hour self- se
Slide 17: Even after turnaround, important areas remain to be tackled
investors‘ day september 10, 2003 16 Even after turnaround, important areas remain to be tackled Factors behind success Status quo at of competitors Commerzbank Structure of • Performance-based • Rigid compensation compensation compensation model for collectively negotiated salaries Incentives • Bus
Slide 18: Turnaround achieved and strategy formulated – growth is possible
investors‘ day september 10, 2003 17 Turnaround achieved and strategy formulated – growth is possible Turnaround achieved in Retail Banking and business line is on course to attain targeted return Commerzbank with clear strategy for successful retail banking operations Growth is possible – Commerzba
Slide 19: It is not size that is decisive...
investors‘ day september 10, 2003 18 It is not size that is decisive... OUTSIDE-IN 2002 result Customers Branches Result (in ‘000s) (total number) (in € m) 3,500 320 1,800 4,300 2,100 700 3,000 1,100 470 4,000 727 53
Slide 20: ...but rather permanent improvement of the business model
investors‘ day september 10, 2003 19 ...but rather permanent improvement of the business model Tapping growth potential Achieving operative excellence • New positioning for • Greater special- business customers ization of staff • Full exploitation of • Implementation bancassurance Products and Staff
Slide 21: investors‘ day september 10, 2003
investors‘ day september 10, 2003 20