Commerzbank AG · XETR:CBK
Commerzbank — Q1 2007 Earnings Presentation
30 slides from Commerzbank's earnings presentation, May 9, 2007
Slide 1: Analyst conference - Q1 2007 results
Commerzbank Analyst conference - Q1 2007 results Dr. Eric Strutz, Chief Financial Officer Frankfurt, May 9th, 2007
Slide 2: Excellent start in 2007
Excellent start in 2007 Q1`07 vs. Q1`06 Clean2 Q1`07 vs. Q1`06 Revenues1, in € m 2,428 +5.2% 2,351 +24.7% Operating profit, in € m 908 -5.4% 831 +54.7% Net RoE, in % 3 19.6 -6.7ppts 17.1 +5.8ppts CIR, in % 1 before LLP 3 annualized 56.0 +4.5ppts 9 57.9 -5.2ppts 9 • High profit level in the underlyin
Slide 3: Net interest income maintained on a solid level
Net interest income maintained on a solid level Net interest income in € m 1,060 1,050 1,045 • Net interest income excluding 975 229 PFT up 5% y-o-y • Increased NII contribution from 831 Mittelstand and C&M (y-o-y) • Q1 LLP of €160m amount to one quarter of upper LLP guidance for 2007 of <€637m 415
Slide 4: Outstanding commission income level attained
Outstanding commission income level attained Commission income in € m • Continued focus on 847 commission generating 798 business paying off 38 734 718 • Commission income grew 677 10% y-o-y (like for like) • Strong increase in securities transactions, asset management business and real estate finan
Slide 5: Trading profit sustainably high accompanied by low risk and volatility
Trading profit sustainably high accompanied by low risk and volatility Trading profit in € m • Excl. net result on hedge accounting trading profit was 320 337 up 1.6% (y-o-y) 301 286 • C&M exceeded high trading profit of Q1 2006 • Strong client-driven business 168 • Equity derivatives, credit- and F
Slide 6: Continued cost discipline
Continued cost discipline Personnel Operating expenses 460 in € m Depreciation Others 815 • Cost level stable despite 85 significant investments • Slightly higher marketing expenses 130 1,395 1,360 1,327 1,292 • Full benefit of cost saving 1,190 programs from 2008 onwards • CIR of 56% in Q1 2007 Q1`
Slide 7: Operating profit without disposal gains significantly up
Operating profit without disposal gains significantly up Operating profit in € m • Clean op. profit grew by 2 55% (y-o-y) 87 • Strong underlying 960 business drives strong 908 831 Group performance 700 • Net gains from disposal 631 537 of Germanischer Lloyd, Dt. Börse and SAMH 337 • Most of the othe
Slide 8: Solid growth path of bottom line profit
Solid growth path of bottom line profit Net profit in € m • Profitability raised 743 significantly 609 • Clean net profit up by 532 66% y-o-y • In Q1, EPS reached 352 320 285 almost 40% of FY2006 217 • Q1 2007 tax rate slightly below 30% Q1`06 Clean 2 Q2`06 Q3`06 Q4`06 Q1`07 Clean 2 Q1`06 Q1`07 in %
Slide 9: Comfortably high capital levels
Comfortably high capital levels Revaluation reserve Regulatory capital (Tier I) in € m in € m Mar 2006 Dec 2006 Mar 2007 Subscribed capital 1,707 1,705 1,708 Reg. Reserves 9,627 9,983 10,362 1,746 Minority interests (BIS) 935 884 1,029 1,658 1,574 1,468 Hybrid capital 2,518 2,925 3,018 Total 14,787
Slide 10: Main changes in financial disclosure as of Jan 1st, 2007
Main changes in financial disclosure as of Jan 1st, 20071 • AM will no longer be disclosed separately - Domestic AM shown under PBC Asset 1. Management - Real estate AM (CGG) allocated to CRE - International AM will be included in Others & Consolidation 2. • FX sales revenue previously booked as tra
Slide 11: Continued growth at MSB and CRE, strong quarter for PBC and C&M
Continued growth at MSB and CRE, strong quarter for PBC and C&M Operating profit in € m Private & Business Customers Mittelstand Corporates & Markets 312 266 137 145 221 188 174 169 163 71 152 36 129 113 -19 -231 -10 -8 Q1 Q2 Q3 1 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2006 2007 2006 2007 2006 2007 1 i
Slide 12: Growth initiatives paying off: successful start for PBC in 2007
Growth initiatives paying off: successful start for PBC in 2007 Main P&L items Operating profit in € m Q1`06 Q1`06 PF Q1`07 in € m Net interest income 288 334 319 137 145 Risk provisioning -56 -71 -73 71 Commission income 410 408 430 36 Operating expenses 495 525 533 -19 Operating profit 137 118 145
Slide 13: Continued profit growth at Mittelstand
Continued profit growth at Mittelstand Main P&L items Operating profit in € m Q1`06 Q1`06 PF Q1`07 in € m 312 Net interest income 316 306 333 266 Risk provisioning -80 -80 -30 221 Commission income 159 159 187 152 129 Operating expenses 269 269 270 Operating profit 152 142 266 PF = Pro-forma integra
Slide 14: Corporates & Markets maintain high profit level of previous year
Corporates & Markets maintain high profit level of previous year Main P&L items Operating profit in € m Q1`06 Q1`06 PF Q1`07 in € m Net interest income 93 85 101 188 169 174 Risk provisioning -11 -11 -13 163 113 Commission income 48 48 45 Trading profit 282 282 289 Operating expenses 250 250 257 -8
Slide 15: CRE: Strong focus on fee generating business continues to pay off
CRE: Strong focus on fee generating business continues to pay off Main P&L items Operating profit in € m Q1`06 Q1`06 PF Q1`07 in € m Net interest income 50 212 211 Risk provisioning -4 -41 -39 164 Commission income 32 74 100 146 152 123 Operating expenses 34 127 140 90 Operating profit 49 139 164 49
Slide 16: PFT: satisfactory performance given unfavourable markets
PFT: satisfactory performance given unfavourable markets Main P&L items Operating profit in € m Q1`06 Q1`06 PF Q1`07 in € m Net interest income 85 129 68 Trading profit 8 -7 -34 AfS Result -14 4 79 112 Operating expenses 14 21 26 77 38 44 47 Operating profit 53 91 77 53 PF = Pro-forma integration of
Slide 17: Others & Consolidation (incl. international Asset Management units)
Others & Consolidation (incl. international Asset Management units) Main P&L items Operating profit in € m Q1`06 Q1`06 PF Q1`07 in € m Net interest income -1 -6 13 381 Commission income 89 89 91 AfS Result 435 435 113 96 82 Operating expenses 128 128 134 Operating profit 381 377 82 -6 PF = Pro-forma
Slide 18: Well positioned for future growth
Well positioned for future growth • Track record of delivering on targets 1. Group • Well balanced and integrated business mix • Strong focus on core competencies • Leading position in the German banking market • High potential for further organic and external growth 2. Positioning • Reputation for
Slide 19: Appendix: Quarterly results in new Group structure
Appendix 1 Quarterly results in new Group structure May 9th, 2007 18
Slide 20: Commerzbank Group Quarterly results in new Group structure
Commerzbank Group Quarterly results in new Group structure Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 pro form a pro form a Net interest income 1,060 1,060 1,050 975 4,145 1,045 Provision for possible loan losses -211 -225 -415 -79 -930 -160 Net interest income after provisioning 849 835 6
Slide 21: Private and Business Customers Quarterly results
Private and Business Customers Quarterly results in new Group structure Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Mio. Euro pro form a pro form a Net interest income 334 328 336 328 1,326 319 Provision for possible loan losses -71 -72 -381 -76 -600 -73 Net interest income after provisioni
Slide 22: Mittelstand Quarterly results
Mittelstand Quarterly results in new Group structure Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Mio. Euro pro form a pro form a Net interest income 306 287 328 343 1,264 333 Provision for possible loan losses -80 -81 -13 46 -128 -30 Net interest income after provisioning 226 206 315 389 1,
Slide 23: Corporates & Markets Quarterly results
Corporates & Markets Quarterly results in new Group structure Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Mio. Euro pro form a pro form a Net interest income 85 76 90 87 338 101 Provision for possible loan losses -11 -9 27 4 11 -13 Net interest income after provisioning 74 67 117 91 349 88
Slide 24: Commercial Real Estate Quarterly results
Commercial Real Estate Quarterly results in new Group structure Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Mio. Euro pro form a pro form a Net interest income 212 222 209 232 875 211 Provision for possible loan losses -41 -55 -41 -48 -185 -39 Net interest income after provisioning 171 167
Slide 25: Public Finance & Treasury Quarterly results
Public Finance & Treasury Quarterly results in new Group structure Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Mio. Euro pro form a pro form a Net interest income 129 117 113 14 373 68 Provision for possible loan losses -8 -8 -7 -5 -28 -5 Net interest income after provisioning 121 109 106 9
Slide 26: Others and Consolidation Quarterly results
Others and Consolidation Quarterly results in new Group structure Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 - Q4 2006 Q1 2007 Mio. Euro pro form a pro form a Net interest income -6 30 -26 -29 -31 13 Provision for possible loan losses 0 0 0 0 0 0 Net interest income after provisioning -6 30 -26 -29 -31 13 N
Slide 27: Appendix: Group equity definitions
Appendix 2 Group equity definitions May 9th, 2007 26
Slide 28: Group equity definitions
Group equity definitions Reconciliation of equity definitions Equity basis for RoE Equity definitions in € m Mar-2007 Subscribed capital 1,708 Capital reserve 5,707 Retained earnings 5,165 Reserve from currency translation -143 Investors‘ capital without minorities 12,437 Basis for RoE on net profit
Slide 29: 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 30: 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