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CommerzbankAnalyst presentation
Klaus-Peter Müller Chairman of the Board of Managing Directors
FrankfurtNovember 13, 2002
3
The “cost-cutting offensive plus“ is designedto achieve extra, far-reaching savings
measures“Cost-cutting offensive plus“ will
create the basis for sustained structural changesThe project focuses on
Group Management and Services divisionhead office in Frankfurt, operative units abroad and subsidiariespersonnel and non-personnel costs, complexity
targetcost-base 2003 below €5bn
4
New orientation in Investment banking
Stronger focus on the needs of our German and Europeancorporate customersReduction to a minimum, or transfer to commercial units, in New York, Prague, Singapore and TokyoShedding of at least 300 front-office jobsShedding of at least 150 back-office jobsImplementation of these changes will begin this year
Savings potential of about €150m
5
Further reduction of risk-weighted assets plannedin € bn
atat
372.1
459.7501.3
424.4
187.7220.2 203.6 178.0
1999 2000 2001 30.9.2002
Balance-sheet total Risk-weighted assets
6
Strong improvement in Commerzbank’sequity ratios (according to BIS)in %
5.6 5.7 6.06.7
9.7 9.9 10.311.5
1999 2000 2001 30.9.2002
Core capital ratio, incl. market-risk position Own funds ratio
8% minimum level forown-funds ratio
4% minimum level forcore capital ratio
7
Commerzbank’s net interest income perquarterin € m
905 929 859 888 873 861
721
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2001 2002
Reduction in Q3 2002 due to:a minus of €108m from the Rheinhyp transaction lower income from reinvested liabilitiesreduction of loan portfolioand further concentrationon sound-quality borrowers
8
Average margin in German corporate lending widening considerably
2000
1.16%
1.29%
1.23%
1.14%
1.07%1.05%
1.01%0.99%
1.03%
1.01%
1.03%
0.95%
1.00%
1.05%
1.10%
1.15%
1.20%
1.25%
1.30%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2001 2002
9
Development of risk provisioningper quarter, in € m
152 177242
356
risk provisioning 2001
254308
436
risk provisioning 2002
Risk provisioning: €927mTotal lending: €240mProvisioning ratio1: 0.39%
Risk provisioning1: €1.3bnTotal lending2: €181bnProvisioning ratio3: ≈0.70%
1) expected at year-end2) Total lending, excluding Rheinhyp3) Provisioning ratio: risk provision/total lending
10
Commerzbank’s domestic corporate lendingin € bn / as of September 2002
12.4
15.8
9.3
6.5
8.5
Multinationals
Public sector
Others
SMEs
Larger corporates
11
Projected earnings performance in Germancorporate business in 2002 (AG figures)in € m
400
-100
360
140
Larger corporates
240
800
160
Multinationals
500
Public sec
IncomeProvisioningOperating expensesOperating result
650
110
270
270
SMEs
300
10
150
140
Others
3020
tor
12
Net commission income and trading profit suffered from weak market conditionsin € m
312 290
58
313104 36
537
Q1 Q2 Q3 Q4 Q1 Q2 Q3
613 603 569 575 554 501482
Net commission income
2002
trading profit
2001
13
High value allowances reveal Commerzbank’s cautious approach
Net result on investments and securities portfolio -€531m in 3rd quarter (published figure)
of which €666m represents write-downs on investments and securities available for sale (e.g. T-Online)a counter-balancing gain on realized sales from the portfolio to produce a net write-down of €531m
All in all, substantial easing of the strain on the balance sheet as hidden burdens have been eliminated through write-downs
14
Cost-cutting offensive continues to make an impact
39,463 40,06738,665 38,017 37,176
40,391 39,481
1,229
1,308
1,398
1,4871,4591,430
1,479
Q1 Q2 Q3 Q4 Q1 Q2 Q3
Staff (end-quarterfigures)Operating expensesin € m
2001 2002
15
Profitability ratiosin %
68.576.3 82.4 78.5
0.41.8
9.65.8
1999 2000* 2001 30.9.2002
Cost/income ratio
ROE (before goodwillamortization)
*) excluding comdirect IPO
16
Facts on the issue of Corporate Governance
At the end of every year from now on, we will declare whether the recommendations of the commission have been met and which were not applied. We explicitly welcome and support the German corporate governance code, and naturally its goals and objectives as well.With two exceptions:1. Purchases and disposals of shares will only be disclosed if these
exceed 25,000 euros within any single 30-day period.2. The Bank’s risk committee will deal with risk-management issues – not
its audit committee.The implementation of the code is not a formal duty for us – it is a substantial element in a business policy geared to achieving a sustainable improvement of the shareholder value.
For more information, please contactCommerzbank Investor RelationsTel: 0049-69-1362-2338Fax: 0049-69-1362-9492E-mail: [email protected]