commerzbank investors’ day 2004 commerzbank’s positioning ... · 1.0% 2.0% 3.0% 4.0% 5.0% h1...

Commerzbank Investors’ Day 2004

Commerzbank’s Positioning:Where are we now – where are we going?

Klaus-Peter MüllerChief Executive Officer

FrankfurtSeptember 22

Chart Chart Chart Chart 1111

Group strategy and controlling (ZKE)

Commerzbank 2004: a better bank

� Significant progress of German banking, though performance remains sub-Europeanas well as dependent on overall German economic situation

� Strongest H1 since 2000; sound cushion for traditionally weaker H2� Core businesses with improvements:

- Retail: significant progress and peer-class profitability- Asset Management: successfully implemented “shrink to grow”, earnings accretive- Corporate: improvement in margins and risk, conservative provisioning- Securities: volatile, rightsizing analysis underway- Continued disposals of non-strategic interests- Overall: conscious cost discipline

� Sustained profit improvement will also be passed on through dividend� We want to close the gap between present book value (ca. €18) and present share price!



* H1 03 net of Norisbank, Bankhaus BethmannMaffei, Bank v. Ernst** RoE post-tax, annualized, calculation based on financial equity

Commerzbank´s H1 compares well with German competitors...

RoE H1 2004**

*Commerzbank HVB Deutsche Bank Dresdner Bank Commerzbank HVB Deutsche Bank Dresdner Bank

26.0%

13.7%

24.3%

8.5%10.4%

3.1%

11.7%

5.2%

Pre-tax result on total income H1 2004

202 165

1,325

-444

797 535

2,722

272

Commerzbank HVB Deutsche Bank

Change in operating profitH1 04 vs. 03 in € m

+295% +224% +105%

*H1 03 H1 04 H1 03 H1 04

Dresdner BankH1 03 H1 04H1 03 H1 04

*



D

Lloyds TSB

UBS

ABN AmroSociété Générale

BNP ParibasBarclays PLC

Credit Suisse Group

HSBC

HypoVereinsbank

Commerzbank

Deutsche Bank

SCH

BBVA

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0% 5% 10% 15% 20% 25% 30%

...however, German banks remain sub-Europeanin profitability and revenue momentum

pric

e to

boo

k H

1 20

04

RoE 2004e*

80%

90%

100%

110%

120%

130%

140%

150%

Q1/2003 Q2/2003 Q3/2003 Q4/2003 Q1/2004 Q2/2004

European banks

German banks

Constant currencies

* RoE calculation based on financial equity (note: different accounting standards)

** Operating income: net interest income after change net LLP’s + net commission income + hedge result + trading profit

Development of operating income**European banks: RoE vs. price to book*



2000

2500

3000

3500

2000 2001 2002 2003 20040

1000

2000

3000

4000

5000

6000

7000

8000

1000

1500

2000

2000 2001 2002 2003 20040.0%

1.0%

2.0%

3.0%

4.0%

5.0%

H1 operating income* vs. DAX at mid-year

inte

rest

inco

me

€ m

Eonia

H1 net interest income before provisioning vs. Eonia

* Net interest income before provisioning, net commission income, trading profit

oper

atin

g in

com

e €

m

DA

X

Eonia

DAX

Commerzbank is also dependent on macroeconomic factors…



...similar to the other German banks

* Indexed net interest income before provisioning + net commission income + trading profit + hedge result. Adjusted for major disposals (CB: deconsolidation Rheinhyp; DB: deconsolidation Eurohypo; HVB: sale of norisbank, Bank von Ernst, BethmannMaffei, Hypo Real Estate)

7000

8000

6000

5000

4000

3000

DAX

60%

70%

80%

90%

100%

110%

2000 2001 2002 2003 2004

Commerzbank Deutsche Bank HVB Dresdner Bank

DAX

Operating income* vs DAX

2000



-329 -562 -555 -452

600 602417

509 445

-256

-2,470-2,909 -2,706

-2,320 -2,232

1,5231,696 1,834 1,734 1,451

1,423 1,216 1,1291,036 1,154

245

93 206223 400

H1 2000 H1 2001 H1 2002 H1 2003 H1 2004

Despite worsened markets and refinancing conditions: best half since 2000…

838Operating profit 3662356201,086 € m

Total lending (€ m) 240,172 251,695 231,805 165,641 163,807DAX 6,898 6,058 4,383 3,221 4,053Rating Moody’s AA3 AA3 A1 A2 A2

S&P AA- A+ A A- A-Fitch AA- A+ A A- A-

Operating expenses

Loan-loss provisions

Net interest income

Net commission income

Other incomeTrading profit

*

*) adjusted by €856m generated by comdirect IPO

Indexed:Total lendingDAX



…but bear in mind: H1 traditionally stronger than H2

20%

25%

30%

Q1 Q2 Q3 Q4

Average 1998-2003, (without 2000)

Net interest income per quarter in % of total annual net interest1998-2003

1998

1999

2000

2001

2002

2003



We are reducing risk, restoring financial strength…

148141149150155160178199205146

6,77,3 7,4 7,7 7,8 7,3 7,1 7,05,96,0

Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

RWA, in € bn Tier I ratio, in %

Target7%

…and improving earnings…

18154

172 194101 92

435 403

32-75

Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

Operating profit€ m



+106

+61

+22

+11

Retail

AssetManagement

CorporateBanking

Securities

…with all core segments contributing positively

Operating profit € m

7362

283261

9231

223117

H1 2003 H1 2004



Retail: significant progress and peer-class profitability

€m

Share of equity tied up in Group

18%

1% 1%

16% 16%

22%

9%7%

3%

18%

28%

1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 4Q 03 1Q 04 2Q 04

Operative RoE CIR in operating business

72.2%80.1%

H1 03 H1 04

Asset Management: operating profit tripled- successfully restructured, earnings accretive -

Operative RoE34.0%

9.3%

H1 03 H1 04

CIR in operating business

63.1%

84.8%

H1 03 H1 04

Share of equity tied up in Group

5%

German average: 15%

European average: 26%



Corporate Banking & Institutions: improvement beginning in 2004, progress closely monitored

Operative RoE CIR in operating business

9.8% 11.8%

H1 03 H1 04

45.6% 49.4%

H1 03 H1 04

Share of equity tiedup in Group

47%

Securities: volatile - analysis for rightsizing underway

Operative RoE

12.1% 12.1%

H1 03 H1 04

154

312

201

124

226232

5070

170

210

Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

Volatile securities trading income€m

Share of equity tiedup in Group

12%



All led to share price holding up comparatively wellIndexed share price development January 2002 to 17 September, 2004

Commerzbank

Deutsche Bank

DAX

HypoVereinbank

Allianz

Münchener Rück

0%

20%

40%

60%

80%

100%

120%

140%

Jan 02 Jul 02 Jan 03 Jul 03 Jan 04 Jul 04

-15%

-25%

-27%

-46%

-64%

-71%



Where are we now – where are we going?2002 2003 2004 2005

�Management changes implemented�Costs cut rigidly�Risk-weighted assets reduced�Liquidity prudently managed�Capital base strengthened

��Restored: Corporate financial strengthRestored: Corporate financial strengthRestored: Corporate financial strengthRestored: Corporate financial strength

�Retail: profitability restored – play to win�AM: successfully restructured – shrink to grow�Corporate Bank: move to the top – kicked off�More core participations sold, SchmidtBank bought�Costs cut further�Risk profile reduced

��Regained: Improved Core BusinessesRegained: Improved Core BusinessesRegained: Improved Core BusinessesRegained: Improved Core Businesses

�� progressing: Stability and Balanced growthprogressing: Stability and Balanced growthprogressing: Stability and Balanced growthprogressing: Stability and Balanced growth

Retail: product/customer initiatives – grow to winCorp.Bk: margin/customer growth – move to the topSecurities: reduce volatility through rightsizingImprove capital deploymentContinue to improve risk/return profileMaintain cost control/realize productivity gainsContinue to sell participationsString of pearls acquisitions / expand CEE

For more information, please contact:Commerzbank Investor Relations

Tel. +49 (69) 136 22 33 8

[email protected]



Chart 18Chart 18Chart 18Chart 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 representations orguarantees are made by Commerzbank Group with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgement at this date and time, and are subject to change without notice. This presentation is for information purposes, it is not intended to be and should not be construed as an offer or solicitation to acquire, or dispose of any of the securities or issues mentioned in this presentation./Commerzbank AG and/or its subsidiaries and/or affiliates (herein described as Commerzbank Group) may use the information in this presentation prior to its publication to its customers. Commerzbank Group or its employees may also own or build positions or trade in any such securities, issues, and derivatives thereon and may also sell them whenever considered appropriate. Commerzbank Group may also provide banking or other advisory services to interested parties./Commerzbank Group accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation./ Copies of this document are available upon request or can be downloaded from www.commerzbank.com/aktionaere/index.html.

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