1997 1998 1999 1.1.-30.9.2000
0
500
1,000
1,500
2,000
2,500
After-tax profit
Pre-tax profit
Development of
Commerzbank Group’s profits
in tm
Investor Relations
Commerzbank –
Zahlen, Fakten,
Ziele
März 1999
Investor Relations
Commerzbank –
figures, facts,
targets
November 2000
Commerzbank AGCorporate Communications Department
D-60261 Frankfurt am Mainwww.commerzbank.com
Investor RelationsJürgen AckermannTelephone 69-136-223 38Telefax 69-136-294 92E-mail [email protected]
Regulated by SFA for the Conduct of Investment Business in the UK
Completed on November 10, 2000
3
Commerzbank – figures, facts, targets
All figures – if not stated otherwise – according to IAS
The six basic strategic goals
European partners _______________ 4
Structure of head office
Domesticbranch structure ________________ 5
The Commerzbank Group abroad
Results of the Parent Bankand of the major subsidiaries ______ 6
380,000 shareholders
Equity and market capitalization __________ 7
Performance of the Commerzbank share
Trading volume of the Commerzbank share _____________ 8
Business volumeand claims on customers
Claims on customers _____________ 9
Breakdown of assets
Breakdown of liabilities and shareholders’ equity _____________ 10
Shareholdings in the non-financial sector
Assets under management _______ 11
Liable funds
Risk-weighted assetsand capital ratios _________________ 12
ContentsIncome statement
Net interest income ______________ 13
Breakdown of net commission income
Trading profit ____________________ 14
Operating expenditure
Development of provisioning _____________________ 15
Provision forpossible loan losses Overall provision for risks _________ 16
Appropriation of profit
Pre-tax quarterly profit ___________ 17
Geographical breakdownof Commerzbank Group’spre-tax profit
Geographical breakdownof key data ______________________ 18
Breakdown of results,by corporate division
Key data, by corporate division _____________ 19
Private client business
Expansion of customer baseat comdirect bank ________________ 20
Key figures
Basic Commerzbank data _________ 21
Targets
Commerzbank’s plans for the year 2000_________________ 22
4
Allfinanz partner Banking partners
2.0%
2.1%*
4.3%*
2.0%*
2.5%
0.8%1.9%
1.1%
2.2%
Commerzbank
3.2%
BancaCommerciale
Italiana1.0%*
approx.70%
9.9%
1.1%
BancaIntesa
CréditLyonnais
Erste Bank deroesterreichischen
SparkassenBanco
SantanderCentral Hispano
Generali
approx.5.0%
approx.4.0%
10.5%*
Mediobanca
to consolidate the Bank's position as a European integrated financial institution
to place greater emphasis on selected investment-banking products
to intensify Allfinanz activities in cooperation with Generali
to become market leader in e-commerce banking
to develop the Bank's international business beyondEurope's borders, wherever attractive opportunities exist
to allocate equity capital to reflect the growth potential of business areas
Commerzbank’s six basic strategic goals
Commerzbank's European partners
Share of capital held
as of October 12, 2000; *) according to press information
5
Main branches
Regional branches
Branch offices
20
150
765*
Full product range,all management
services represented
More or less completerange of products
Private and individual customers
Corporate clientsas well
Approx. 90 branchesAll branches
Commerzbank’s domestic branch structure
as of September 30, 2000: 935 branches; *) of which: 26 Commerzbank Shops
Asset ManagementSecuritiesTreasury/
Financial Products
Retail BankingReal Estate
Corporate BankingCorporate FinanceInternational Bank
RelationsRelationshipManagement
Global OperationsInvestment Banking
IT DevelopmentIT ProductionIT Investment
BankingOrganization
Transaction Banking
Accounting and TaxesCompliance and
SecurityCorporate
Communications andEconomic Research
Credit RiskManagement
Human ResourcesInternal AuditingLegal ServicesRisk Control
Strategy and Controlling
B O A R D O F M A N A G I N G D I R E C T O R S
C o r p o r a t e d i v i s i o n s
GroupManagement
Retail Bankingand Real Estate
Corporate Bankingand Institutions
InvestmentBanking
Services
Staffdepartments
ServicedepartmentsBanking departments
Structure of Commerzbank’s head office
6
21 branches
Subsidiaries, including:
Caisse Centrale de Réescompte, S.A., ParisCommerzbank (Budapest) Rt., BudapestCommerzbank (Eurasija) SAO, MoscowCommerzbank Europe (Ireland) Unltd., DublinCommerzbank International S.A., LuxembourgCommerzbank (Nederland) N.V., AmsterdamCommerzbank (Switzerland) Ltd, Zurich/GenevaCommerzbank (South East Asia) Ltd., SingaporeCommerzbank Capital Markets Corporation,New YorkCommerz Capital Markets (Eastern Europe) a.s.,PragueCommerz Securities (Japan) Co. Ltd.,Hong Kong/TokyoJupiter International Group PLC, LondonMontgomery Asset Management, LLC,San Francisco
28 representative offices
Some 30 holdings, including:
BRE Bank SA, WarsawKorea Exchange Bank, SeoulP.T. Bank Finconesia, JakartaUnibanco – União de Bancos Brasileiros S.A.,São PauloBanque Marocaine du Commerce Extérieur,CasablancaCompagnie Monegasque de Banque S.A.M.,Monaco
The Commerzbank Group abroad
Balance-sheet total Pre-tax profit
in h m 30.9.2000 31.12.1999 30.9.2000 30.9.1999
Commerzbank AG 270,523 227,280 1,844 490
comdirect bank AG 3,073 2,311 54 5
Commerz Grundbesitz-Investmentgesellschaft mbH 25 25 5 4
CommerzLeasing und Immobilien GmbH 1,701 1,386 35 26
Hypothekenbank in Essen AG 59,928 55,932 92 102
RHEINHYP AG 71,139 63,758 170 237
Caisse Centrale de Réescompte, S.A. 4,969 5,147 8 12
Commerzbank (Budapest) Rt. 563 480 4 4
Commerzbank Europe (Ireland) Unltd. 6,255 5,642 22 23
Commerzbank International S.A. 12,921 11,351 78 128
Commerzbank (Switzerland) Ltd 541 799 24 16
Jupiter International Group PLC 529 508 86 188
Results of the Parent Bank and of the major subsidiaries
Figures in the consolidated results based on IAS. Individual company results differ in some cases, due to presentation based on GermanCommercial Code (HGB), or other national code.
7
25%
35%
36%
4%
InstitutionalInvestors Private Investors Institutional
Investors Private Investors
Germany Abroad
in terms of capital held
Commerzbank’s 380,000 shareholders
Subscribed capital as of September 30, 2000: h1,358m
1996* 1997 1998 1999 30.9.2000
6.98.0
8.8
16.6
10.1
13.6
11.1
18.7
12.5
17.9
Equity Market capitalization
Equity and market capitalization
Commerzbank Group, in h bn
*) German Commercial Code (HGB)
8
I II III IV I II III IV I II III
17.4 17.3
15.2
9.3 9.911.4
17.7
12.4
21.5
13.9
19.1
In the first nine months of 2000, trading volume in Commerzbank shares accounted for
around 2.1% of the total trading volume in shares on all German stock exchanges.
1998 1999 2000
Trading volume of the Commerzbank share
in e bn
23.7 14.3 19.9 Price/earnings ratio
1997 1998 1999 2000*100
130
160
190
220
250
280Commerzbank share price DJ Euro Stoxx banks CDAX (banks)
1)
Performance of the Commerzbank share
Month-end figures, January 1997 = 100
*) until October 31, 20001) at year-end (calculated on the basis of net income per share)
9
31.12.1996* 31.12.1997 31.12.1998 31.12.1999 30.9.2000
230.6
136.9
276.0
162.7
327.4
184.3
372.1
203.5
428.4
219.8
Business volume Claims on customers
Business volume and claims on customers
Commerzbank Group, in h bn
*) German Commercial Code (HGB)
31.12.1997 31.12.1998 31.12.1999
25.9%
27.1%
26.6%
2.2%
18.2%
25.0%
25.5%
24.8%
2.3%
22.4%
24.0%
22.7%
27.0%
3.1%
23.2%
Public authorities
Retail customers
Corporate customers
Public authorities
Corporate andretail customers
Do
me
stic
Fo
reig
n
e162.7bn e184.3bn 203.5bne
Claims on customers
Commerzbank Group
31.12.1999 30.9.2000
7,806
107,087
198,155
50,0408,952
372,040
12,068
131,448
214,099
66,2394,534
428,388
Other assets
Assets held fordealing purposes/financial investments
Claims on customers(after provisioning)
Claims on banks
Liquid funds
Total assets
Breakdown of assets
Commerzbank Group, in h m
10
31.12.1999 30.9.200031,26720,103
156,967
91,042
72,661
372,040
32,65523,479
172,466
100,027
99,761
428,388
Other liabilities
Liable funds
Securitized liabilities
Liabilities to other creditors
Liabilities to banks
Total assets
Breakdown of liabilities and shareholders’ equity
Commerzbank Group, in h m
11
1) held indirectly and directly2) held indirectly
*) Market price of Commerzbank’s holdings on September 30, 2000 in e m
Alno AG
Pfullendorf/Baden
29.4% 12*
MAN AG
Munich
6.5%2) 293*
Buderus AG
Wetzlar
10.0% 125*
PopNet Internet AG
Hamburg
13.9%2) 25*
HeidelbergerDruckmaschinen AG
Heidelberg
9.9%1) 542*
SachsenringAutomobiltechnik AG
Zwickau
10.0%2) 9*
Linde AG
Wiesbaden
10.0% 549*
Commerzbank’s shareholdings in the non-financial sector
(5% of capital and above) as of September 30, 2000
AdigGroup
Commerz-invest
CCRGroup
CICMGroup
CITC JupiterGroup
KEBIT MontgomeryGroup
Privateclients
Realestate
30,1
35,2
11,1 10,9
1,0
26,6
1,1
14,7 13,9
5,1
German entities International entities Private clients Real estate
Assets under management
in e bn
as of September 30, 2000
total: 149.7 h bn
12
Subscribed capital*Retained earnings*
Minority interests
Profit-sharingcertificates outstanding
Subordinatedliabilities
Net profit*h1.438bn
h1.358bnh9.704bn
h7.463bnh2.544bn
h0.972bn
Commerzbank Group’s liable funds
as of September 30, 2000: h23.5bn
*) Capital and reserves: t12.500bn
31.12.1999 30.9.2000
Risk-weighted assets 167,583 186,087
Capital charge for market risks 20,126 21,875
Items to be risk-weighted 187,709 207,962
Elements of equity for supervision purposes
Core capital 10,599 11,229
Eligible own funds 18,145 20,624
Capital ratios for supervision purposes in %
Core capital ratio 6.3 6.0
Equity capital ratio 9.7 9.9
Risk-weighted assets and capital ratios (as defined by BIS)
Commerzbank Group, in e m
13
1.1.-30.9.1999 1.1.-30.9.2000 Change
in h m in h m in h m in %
Net interest after provisions 1,987 2,249 262 13.2
Net commission income 1,511 2,075 564 37.3
Trading profit 614 751 137 22.3
Financial investments 94 164 70 74.5
Operating expenses 3,190 3,853 663 20.8
Other operating result -5 1,030 1,035 .
Pre-tax profit 1,011 2,416 1,405 139.0
Taxes on income 332 931 599 180.4
After-tax profit 679 1,485 806 118.7
Minority interest -51 -47 4 -7.8
Net profit 628 1,438 810 129.0
Commerzbank Group’s income statement
1996* 1997 1998 1999 1.1.-30.9.2000
3,054
857
2,197
3,349
953
2,396
3,104
881
2,223
3,207
689
2,5182,646
397
2,249
Net interest income Loan-loss provisions Net interest after provisions
+8.1%
+13.2%
-13.7%
2,447
460
1,987
Net interest income
Commerzbank Group, in e m
*) German Commercial Code (HGB)
14
18.5% 19.9% 22.2% 35.8% 33.2% generated abroad
1996 1997 1998 1999 1.1.-30.9.2000
210
10915819354
445
1,169
245
122169
204
116
601
1,457
251
115164198
208
735
1,671
335
112175
134
495
942
2,193
22290
124
161
455
1,023
2,075
Other commissions
Guarantees
Paymentstransactions
Foreign commercialbusiness
Asset Management
Securitiesbusiness
Breakdown of net commission income
Commerzbank Group, in e m
1996* 1997 1998 1999 1.1.-30.9.2000
24
66
140 127 119
42
97
192
124
263
79
250
533
56
162
Share trading Foreign-exchange business Trading in interest-rate risks
413230 288 592 751
Trading profit
Commerzbank Group, in e m
*) German Commercial Code (HGB)
15
1996* 1997 1998 1999 1.1.-30.9.2000
1,803
852
240
1,904
1,006
262
2,066
1,236
310
2,403
1,674
399
2,170
1,360
323
Personnel expenses Other expenses Depreciation on fixed and intangible assets
+17.0%
+25.4%
+15.0%
2,895 3,172 3,612 4,476 3,853
1,731
1,183
276
Operating expenditure
Commerzbank Group, in e m
*) German Commercial Code (HGB)
1999 2000
As of January 1 5,003 5,567
Allocations 845 758
Deductions 640 427 utilized 248 54 written back 392 373
Changes in foreign-exchange rates -6 20
As of September 30 5,202 5,918
Development of provisioning
Commerzbank Group, in e m
16
0.5
0.6
0.5 0.5
0.3
0.17
0.29
0.46
0.21 0.15
0.24
1995 1996 1997 1998 1999 20000
0.2
0.4
0.6
write-off ratio2)
%
provisioning ratio1)
e)
Commerzbank Group’s provision for possible loan losses
Value adjustments and loan losses (excl. country risks) 1995-2000
1) Net provision for risks as a ratio of average commercial loan portfolio, with value adjustments deducted;2) Write-offs as a percentage of average commercial loan portfolio; e) estimated
31.12.1999 30.9.2000
Counterparty risks 4,798 5,144
Country risks 224 218
General provision 354 378
Provisioning for balance-sheet items 5,376 5,740
Guarantees, endorsement liabilities,lending commitments 191 178
Total 5,567 5,918
Overall provision for risks
Commerzbank Group, in e m
17
518
I II III IV I II III IV I II III
501
255
196
288
470
326
215
360
598
468
322
1998 1999 2000
1,300**
**
*
Pre-tax quarterly profit
Commerzbank Group,in e m
*) excl. other operating result; **) incl. other operating result
1996* 1997 1998 1999 1.1.-30.9.2000
27612
332
297
34410296
489
38050
512
298
411
64
500
396
47
1,438
931
Parent company dividendsMinority interestsRetained earningsTaxes
621 650
942 975917
After-tax resultPre-tax result
1,485
2,416
1,371
1,1391,240
Appropriation of Commerzbank Group’s profit
in e m
*) German Commercial Code (HGB)
18
*) 1.1.-30.9.
Germany Europe (excl. America Asia Africa Consoli- TotalGermany) dation
Net interest incomeafter provisioning 1,790 259 169 45 -3 -11 2,249
Net commission income 1,438 435 169 82 3 -52 2,075
Trading profit 588 113 32 31 0 -13 751
Result on financialinvestments 134 29 1 0 0 0 164
Operating expenses 2,973 581 232 116 4 -53 3,853
Other operating result 1,002 11 -6 0 0 23 1,030
Pre-tax profit 2000* 1,979 266 133 42 -4 0 2,416
Pre-tax profit 1999* 560 303 102 39 7 0 1,011
Geographical breakdown of Commerzbank Group’s pre-tax profit
1.1.-30.9.2000, in h m
Germany Europe (excl. America Asia Africa Consoli- TotalGermany) dation
Pre-tax profit 697 485 146 33 10 0 1,371
Net income 481 324 121 -22 7 0 911
Risk-weighted assets1) 121,476 36,153 14,392 8,947 752 -14,137 167,583
Balance-sheet total 289,556 75,892 28,060 10,919 323 -32,710 372,040
Staff 30,557 2,605 835 804 69 – 34,870
Geographical breakdown of key data
Commerzbank Group, as of 31.12.99, in h m
1) excl. market risks
19
Retail Corporate Investment Mortgage Others* TotalBanking and Banking and Banking Banking
Real Estate Institutions
Net interest income 843 1,215 115 421 52 2,646
Provisions for possibleloan losses -98 -254 -6 -39 0 -397
Net interest incomeafter provisioning 745 961 109 382 52 2,249
Net commission income 995 460 684 -15 -49 2,075
Trading profit 0 38 791 0 -78 751
Result on financialinvestments 0 43 21 -11 111 164
Operating expenses 1,406 836 1,287 112 212 3,853
Other operating result 898 3 -31 7 153 1,030
Pre-tax profit 1,232 669 287 251 -23 2,416
Pre-tax profit (1.1.-30.9.1999) 154 582 573 331 -629 1,011
Breakdown of results, by corporate division
Commerzbank Group, 1.1.-30.9.2000, in h m
*) Group management/others and consolidation
Retail Corporate Investment Mortgage Others* TotalBanking and Banking and Banking Banking
Real Estate Institutions
Pre-tax result 1,232 669 287 251 -23 2,416
After-tax result 724 388 176 143 54 1,485
Net income 716 388 165 115 54 1,438
Equity tied-up 1,659 5,324 2,046 987 675 10,691
Return on equity** 58.2% 10.4% 23.0% 15.5% ● 17.9%
Cost/income ratio 51.4% 47.5% 81.5% 27.9% ● 57.8%
Employees (average no.) 14,818 6,961 3,280 1,029 9,576 35,664
Key data, by corporate division
Commerzbank Group, 1.1.-30.9.2000, in h m
*) Group management/others and consolidation; **) calculated by result based on internal accounting; annualized
20
31.12.1996 31.12.1997 31.12.1998 31.12.1999 30.9.2000
Retail clients 2,557,400 2,595,300 2,724,700 2,793,300 2,921,100
Individual clients 721,200 752,400 766,000 803,400 814,100
Number of custodyaccounts 891,000 958,000 1,070,000 1,200,000 1,540,000
Market value of all custody accounts* (in e bn) 149 200 243 335 311
Commerzbank AG: Private client business
*) Corporate and retail customers in Germany
31.12.1995 31.12.1996 31.12.1997 31.12.1998 31.12.1999 30.9.2000
10,892
39,60031,292
73,00061,268
109,200113,500
165,300226,159
277,100
525,000
565,000
of which: direct-brokerage customers
Expansion of customer base at comdirect bank
21
2.02
2.53 2.70 2.65 2.75
4.71
1.301.62 1.51
1.91 1.83
0.69 0.69 0.77 0.77 0.80
1995 1996 1997 1998 1999 30.9.20000
1
2
3
4
5 Pre-tax profit1) Net income Dividend2)
3.73*
*
3)
Key figures per Commerzbank share
in e
1) until 1996: operating result according to the German Commercial Code (HGB); 2) excluding tax credit; 3) extrapolated at year-end levels; *) including the proceeds from the sale of comdirect
Commerzbank Group 1996 1997 1998 1999 30.9.2000
Branches 1,045 1,044 1,052 1,064 1,060
Customers 3.66 m 3.78 m 4.21 m 5.20 m 5.68 m
Employees1) 29,334 30,446 32,593 34,870 36,382of whom: in Germany 26,901 27,782 28,719 30,557 31,904
abroad 2,433 2,664 3,874 4,313 4,478
Parent Bank
Branches 964 949 959 960 956
of which: in Germany 944 929 938 939 935abroad 20 20 21 21 21
Employees1) 26,327 26,740 28,083 29,190 29,749of whom: in Germany 24,953 25,303 26,189 27,068 27,525
abroad 1,374 1,437 1,894 2,122 2,224
Shares (in millions)2) 400.3 448.7 496.1 513.6 532.0
Basic Commerzbank data
year-end figures
1) until 1996: full-time staff; as from 1997, actual number employed; 2) dividend-bearing shares
22
Return on equity after tax 15%
Cost-income ratio1) 60%
Core capital ratio (BIS) 6.5%
Dividend upward trend, in line with earnings
Targets
1) excl. provision for risks
More efficient market presence through integration of equities and bondsoperations
Technology link-up with other companies to benefit from lower marginalunit costs
Fully integrated approach to internet and e-business
Further expansion of comdirect, including cooperation with T-Online andEuropean operations
Concentration on strengths and withdrawal from low-earnings peripheral areas
Achievement of “Financial Holding” status in the U.S.
Commerzbank’s plans for the year 2000