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Commerzbank Commerzbank Commerzbank Commerzbank ---- the leading the leading the leading the leading german german german german commercial bankcommercial bankcommercial bankcommercial bankQ2 Results Q2 Results Q2 Results Q2 Results
Dr. Eric StrutzChief Financial Officer
August 9, 2006
1
Q2 results 2006
Key take aways
Treasury Germany • New management achieved positive earnings trend
Group profitability• Operating profit 2.4 times up y-o-y • Main income items consistently strong• Sustainable upward trend in trading profit
Eurohypo• H1 operating result reached 58% of full year 2005• Synergy potential confirmed• Focus on origination strategy in H2
Tax ratio • 2006 guidance still valid (unless tax law changes)
Acquisition strategy• Tight strategic guidelines and investment criteria strictly
adhered to
��
��
��
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2
Q2 results 2006
High earnings quality maintained in Q2
Q2 `06 vs. Q2 `05
1. First-time full consolidation of Eurohypo, new segment reporting 2. Consistent performance of main income items, trading profit sustainably strong3. Strong performance of Mittelstand, C&M and Public Finance & Treasury
62.8%Net profit, in € m 2852
Operating profit, in € m 2.4x700
Net RoE1, in %
CIR, in %
+2.4pps
-11.0pps
10.02
58.9 �1 annualized; 2 including restructuring charges of €214m
79.8%1,025
2.0x1,659
+5.5pps
-9.2pps
17.9
55.3 �
H1 `06 vs. H1 `05
3
Q2 results 2006
Net interest incomein € m
• Eurohypo consolidation
• Positive earnings trend of Treasury Germany
Strong net interest income
266
237238
234 1060
825833771
847
721
227
Q1 `05 Q2 `05 Q3 `05 Q4 `05 Q1 `06 Q2 `06
+25.1% • Purchase accounting effect
• Less contribution from Dt. Schiffsbank
• Risk provisioning set at budget Loan loss provisions
Pro-forma consolidation of EHY
154198 177 151 40 225*LLP
*Incl. €70m from Eurohypo
1,060
4
Q2 results 2006
Net interest incomein € m
Consolidation impact on Q2 net interest income
803
1,060-6+12
-14-65
330
CBK standalone
EHY standalone
Refinancingcost
Expenses onhybrid
Investmentyield
Purchaseaccounting
Consolidatedfigure
•Total refinancing costs on Eurohypo
•Interest expenses on hybrid capital
•Equity investment yield on capital increase in Nov `05
•Recognition of effects from purchase accounting (IFRS 3)
+330
5
Q2 results 2006
Commission incomein € m
Strong year-on-year improvement in commission income
1536
6034
38
659
718
645
599593578
Q1 `05 Q2 `05 Q3 `05 Q4 `05 Q1 `06 Q2 `06
• 19.2% y-o-y increase in asset management products
• Securities transactions still on good level
• Payment transactions at a sustainably high level
• Eurohypo contribution of €32m
• Against H1 `05 result of PBC up 17%, Mittelstand up 19%
+11.1%
•Pro-forma consolidation of Eurohypo
6
Q2 results 2006
Trading profitin € m
Best-ever H1 trading profit
• High trading profit of previous quarter exceeded
• H1 already close to full-year 2005 result
• Growth purely client driven; particularly positive result from structured retail products
• Value at risk and earnings volatility at historically low levels
•
19
9-35 -21
12 355336
217212
6
250
Q1 `05 Q2 `05 Q3 `05 Q4 `05 Q1 `06 Q2 `06
Pro-forma consolidation of Eurohypo
7
Q2 results 2006
Operating expensesin € m
Cost discipline remains strong management focus
• Q-o-q flat costs at CBK on stand-alone basis
• Y-o-y increase at CBK entirely due to personnel expenses given strong Group performance
• General performance bonus
• LTP / LTI• Others (e.g. boni)
•
110 123 133
204
130 1,327
1,190
1,370
1,0971,0881,107
Q1 `05 Q2 `05 Q3 `05 Q4 `05 Q1 `06 Q2 `06
Pro-forma consolidation of Eurohypo
430
78819
Personnel
Depreciation
Others
8
Q2 results 2006
Operating profitin € m
Operating profit significantly up year-on-year
Op. RoE 33.5
51.7CIR
21.7
60.0
Q1 `05
14.1
69.9
Q2 `05
17.3
65.8
Q3 `05
17.5
73.0
Q4 `05 Q1 `06in %
• Outstanding first half-year
• Consistently strong revenue performance
• Sale of remaining KEB stake
• Substantial y-o-y improvement of operating RoE and CIR
541
419466
93
115
74 31
73
700
291
959*
Q2 `06
22.7
58.9
Pro-forma consolidation of Eurohypo
+140.5%
* including one-off gains due to partial sale of KEB (€407m)
9
Q2 results 2006
Net profitin € m
Net profit affected by restructuring charges
• Strong y-o-y growth despite restructuring charges
• Eurohypo integration• IT und TXB alignment
• Given the uncertain status of the current corporate tax reform, no tax losses have been capitalized yet
two possible scenarios for 2006
• Higher minority interests due to AIS-SPV
• Net RoE (after restructuring charges): 10.0%
395
262
333285
175
740*
0,660,44 0,53
1,13
0,30 0,43
Q1 `05 Q2 `05 Q3 `05 Q4 `05 Q1 `06 Q2 `06
+62.3%
Earnings per share, in €
* including one-off gains due to partial sale of KEB (€407m)
Lowered by restructuring
charges of €214m
10
Q2 results 2006
Risk-weighted assetsin € bn
Regulatory capital (Tier I)in € m
Comfortable core capital level
Equity (balance sheet)in € bn Mar 2006 Jun 2006
15,120 15,124Total
Subscribed capital 1,707 1,707Reg. reserves 10,206 10,234Minority interests 939 914Hybrid capital 2,268 2,269
Tier I ratio, in %
=> Tier I target for FY 2006 achieved
Mar 06 Jun 06
Main changes in equity
• Reduced negative cash-flow hedge reserve due to rising interest rates
• Revaluation reserves at €1.1bn
Mar 06 Jun 06
6.5 6.5
14.4 14.2
230.9 231.6
11
Q2 results 2006
New Group Structure
Private & Business
CustomersAsset
Management MittelstandCorporates &
Markets Commercial Real Estate
• Retail Banking• Private Banking• comdirect bank• Retail Banking
Eurohypo
• German Asset Management
• International Asset Management
• Real Estate Asset Management
• Mittelstand Germany
• Central/Eastern Europe
• BRE Bank• Asia• Financial
Institutions
• Markets• Multinational
Corporates• UK• Europe West• USA • Africa
• Public Finance & Treasury Eurohypo
• Essenhyp• EEPK• Treasury
PCAM CIB
TellerBlessingKassow
Commerzbank
CRO: Hartmann CEO: Müller CFO: Strutz
Public Finance & Treasury
CRE, Public Finance and Treasury
Knobloch
• Commercial Real Estate Eurohypo
• Commercial Real Estate USA
• CLI• CORECD
Patig
12
Q2 results 2006
• Eurohypo’s retail business lifted net interest income and LLP
• Further slight y-o-y increase in commission income led to outstanding H1
• Operating expenses stand-alone slightly down q-o-q, but y-o-y increase driven by higher performance related personnel expenses and allocation of Eurohypo`s retail business
Private & Business Customers: RoE diluted by EHY’s retail business(new group structure)
Operating profitin € m
Ø Q2 Equity allocation within Group
*annualized
Ø equity (€ m) 2.457 1.902
Operating RoE* (%) 8.5 18.3
CIR (%) 79.0 75.7
Q2 `06 Q2 `05
7187 83
55
111
52
Q1 Q2 Q3 Q4 Q1 Q22005 2006
-40.2%
19.9%
Net interest income 272 322 548 605in € mAbridged P&L
Q2 `05 Q2 `06 Jan-Jun `05 Jan-Jun `06
Risk provisioning -46 -73 -92 -128Commission income 272 280 536 626
Trading profit 0 1 1 2
Other items 4 -7 1 -19
Operating expenses 415 471 836 923
Operating profit 87 52 158 163
13
Q2 results 2006
• AuM rose from €94.8bn to €103.8bn y-o-y
• Successful increase of 31% in commission income (y-o-y)
• Operating profit fully on track
• Operating expenses up due to higher performance bonus/LTI
• Positive development of RoE and CIR
Asset Management with increased commission income(new group structure)
Operating profitin € m
Ø Q2 Equity allocation within Group
*annualized
Ø equity (€ m) 544 513
Operating RoE* (%) 19.9 13.3
CIR (%) 84.5 87.3
Q2 `06 Q2 `05
2005 2006
4.4%
Net interest income -1 -6 -10in € mAbridged P&L
Q2 `05 Q2 `06 Jan-Jun `05 Jan-Jun `06
Commission income 133 174 260 342Trading profit 3 4 5 7
AfS result 3 3 4 6
Other operating result -4 -1 -6 -1
Operating expenses 117 147 212 275
Operating profit 17 27 54 69
3
37
17
46
20
42
27
Q1 Q2 Q3 Q4 Q1 Q2
+58.8%
14
Q2 results 2006
• Domestic SME business maintained upward trend
• Y-o-y loan growth of 4.8%
• Germany: Lending margins stable, deposit margins and volume up (y-o-y)
• Lower contribution from Deutsche Schiffsbank (y-o-y)
• Commission income up 16% y-o-y
• BRE Bank with best Group’s 6-months performance in 6 years
Mittelstand´s operating profit up (new group structure)
Operating profitin € m
Ø Q2 Equity allocation within Group
*annualized
Ø equity (€ m) 2.892 3.028
Operating RoE* (%) 18.7 16.5
CIR (%) 55.4 53.4
Q2 `06 Q2 `05
2005 2006
23.4%
Net interest income 305 282 593in € mAbridged P&L
Q2 `05 Q2 `06 Jan-Jun `05 Jan-Jun `06
Risk provisioning -91 -76 -196 -151Commission income 141 164 273 324
Trading profit 18 27 36 54
Other items 0 0 4 4
Operating expenses 248 262 489 531
Operating profit 125 135 208 293
83125
165
226
158135
Q1 Q2 Q3 Q4 Q1 Q2
+8.0%
579
15
Q2 results 2006
• Strong focus on client-driven business led to consistent and sustainable earnings growth despite higher market volatility
• Positive development of client business across products with particularly positive results from structured retail products (No. 1 at Euwax)
• Low risk levels - last dedicated proprietary trading desk closed in Q2 2005
• Continued focus on capital efficiency - successful securitisation transaction for a €4.5bn CBK loan portfolio
• CIR below 60% comparing favorably with peers
Corporates & Markets very well positioned, even in volatile markets(new group structure)
Operating profitin € m
Ø Q2 Equity allocation within Group
*annualized
Ø equity (€ m) 2.323 2.769
Operating RoE* (%) 27.0 -6.2
CIR (%) 59.9 113.6
Q2 `06 Q2 `05
2005 2006
18.8%
Net interest income 91 68 161in € mAbridged P&L
Q2 `05 Q2 `06 Jan-Jun `05 Jan-Jun `06
Risk provisioning -15 -11 -37 -23Commission income 28 20 68 52
Trading profit 77 305 336 608
Other items 10 26 12 49
Operating expenses 243 251 496 503
Operating profit -43 157 63 346
180
106
-43
118155
189157
Q1 Q2 Q3 Q4 Q1 Q2
16
Q2 results 2006
Earnings growth at historically low risk levels
in € mVaR*
Trading profit at Corporates & Markets*
• Closure of all dedicated proprietary trading desks between Q4 2004 and Q2 2005 brought value at risk and earnings volatility down to historically low levels
• Concentration of all resources on client-driven revenue generation proving to be the right decision
• Earnings remain stable despite less favorable market conditions in Q2 2006
• Average VaR in Q2 €8.2m
5,0
10,0
15,0
20,0
312
154
9
114
259
77
206 223
305 305
1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06
* Overnight at 97.5%
16%
10%
20%
6%
48%
Equity derivatives
Equities Sales & Trading
FX trading
Interest rates trading
others (customer related)
Breakdown sales & trading (Markets H1)
* Incl. net result on hedge accounting
17
Q2 results 2006
• Positive new business trend continued in Q2, especially in Continental Europe and USA
• As a result, this development plus a continued repricingtrend led to higher net interest income
• Commission income traditionally volatile, given strong link to large landmark deals
Commercial Real Estate with continued strong new business(new group structure)
Operating profitin € m
Ø Q2 Equity allocation within Group
*annualized
Ø equity (€ m) 3.911 459
Operating RoE* (%) 11.3 21.8
CIR (%) 41.8 32.8
Q2 `06 Q2 `05
2005 2006
31.7%
Net interest income 43 216 264in € mAbridged P&L
Q2 `05 Q2 `06 Jan-Jun `05 Jan-Jun `06
Risk provisioning -18 -57 -35 -61Commission income 19 45 36 63
Trading profit -1 4 -1 4
Other items 3 22 4 26
Operating expenses 21 120 44 144
Operating profit 25 110 42 152
82
17 25 10
42
-9
110
Q1 Q2 Q3 Q4 Q1 Q2
4.4x
18
Q2 results 2006
• EssenHyp and EEPK maintained high profitability
• Public Finance (Eurohypo) showed increased operating profit
• Treasury Germany: positive earnings trend
Public Finance & Treasury: RoE and CIR continued strong(new group structure)
Operating profitin € m
Ø Q2 Equity allocation within Group
*annualized
Ø equity (€ m) 1.166 936
Operating RoE* (%) 42.5 24.4
CIR (%) 18.5 13.5
Q2 `06 Q2 `05
2005 2006
9.4%
Net interest income 112 144 238in € mAbridged P&L
Q2 `05 Q2 `06 Jan-Jun `05 Jan-Jun `06
Risk provisioning -7 -8 -15 -16Commission income -2 -13 -4 -17
Trading profit -85 -7 -110 -18
Other items 49 38 107 27
Operating expenses 10 30 21 43
Operating profit 57 124 130 176
191
7357 58
7452
124
Q1 Q2 Q3 Q4 Q1 Q2
2.1x
19
Q2 results 2006
H1 2006
• New Real Estate Finance commitments up 12.1% (€16.5bn)
• Commercial Real Estate interest income up 9.5% (€428m)
• Net commission income up 37.3%
• Operating result reached 58% of the overall 2005 level
Eurohypo on track
Operating resultin € m
Ø equity (€ m) 6,196 5,923
Operating RoE* (%) 15.0 14.7
CIR (%) 38.3 33.5
Q2 `06 Q2 `05
2005 2006
Net interest income 328 330 671in € mAbridged P&L
Q2 `05 Q2 `06 Jan-Jun `05 Jan-Jun `06
Risk provisioning -60 -70 -123 -141Net commission income 36 32 51 70
Trading profit1 11 35 -22 33
Other items 14 33 32 36
Administrative expenses 124 141 235 271
Operating result 205 219 382 398
679177
205
162138
179219
Q1 Q2 Q3 Q4 Q1 Q2
+6.8%
1Incl. Net result on hedge accounting*annualized
20
Q2 results 2006
Integration process of Eurohypo progressing well
Joint business processes established
Key functions centrally managed��
Total synergy potential reconfirmed
First revenue synergies realized��
All integration projects fully in line with plan
Required measures at executive level initiated��
Strong identification of staff with new Group …
… creating new business momentum��
Focus in H2:
• Implementation of defined measures
• Origination strategy
• Increase of real estate capital market product range
21
Q2 results 2006
Commerzbank’s main areas of focus
Costs/Synergies3.
Strategy1.
Additional shareholder value
Divisions2.
Capital4.
• Strengthening leading position in Germany• Playing an active part in consolidating the German
Banking market• Balance of focused growth and profitability
• Keeping strong momentum in Mittelstand and C&M• Growing business in PBC and AM• Focus on origination strategy at CRE
• Pursuing several cost efficiency programmes• Utilizing cost and revenue synergies with EHY
• Capital management• Maintaining target range of 6.5 – 7.0% Tier I ratio• Basel II
22
Q2 results 2006
Agenda for Investors´ Day (Thursday, September 21, 2006)
• Financials and key performance indicators Eric Strutz
• Risk Management: Regulatory compliance (Basel II) and its impact on overall bank management
• Corporate & Markets: A customer-focused strategy Nicholas Teller
• Commercial Real Estate: The global player Bernd Knobloch
• PCAM: Focused investments Achim Kassow
• Mittelstand: A value-driven strategy Martin Blessing
• Clear objectives for the future Klaus-Peter Müller
Wolfgang Hartmann
23
Q2 results 2006
BACKUP
24
Q2 results 2006
Commerzbank Group Quarterly results in new Group structure (as stated in the reports)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q l 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 721 847 771 833 825 1.060 Provision for possible loan losses -198 -177 -151 -40 -154 -225 Net interest income after provisioning 523 670 620 793 671 835 Net commission income 578 593 599 645 718 659 Trading profit* 250 6 212 217 336 355 Net result on investments and securities portfolio 294 84 79 190 445 184 Other result 3 26 6 -9 -21 -6 Revenue 1.648 1.379 1.516 1.836 2.149 2.027 Operating expenses 1.107 1.088 1.097 1.370 1.190 1.327 Operating profit 541 291 419 466 959 700 Restructuring expenses 0 0 0 37 0 214 Pre-tax profit 541 291 419 429 959 486
Average equity tied up 10.319 10.201 10.044 10.892 12.324 12.350 Operating return on equity (%) 21,0% 11,4% 16,7% 17,1% 31,1% 22,7% Cost/income ratio in operating business (%) 60,0% 69,9% 65,8% 73,0% 51,7% 58,9% Return on equity of pre-tax profit (%) 21,0% 11,4% 16,7% 15,8% 31,1% 15,7%
25
Q2 results 2006
Private and Business CustomersQuarterly results in new Group structure (as stated in the reports)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q l 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 276 272 290 301 283 322 Provision for possible loan losses -46 -46 -46 -67 -55 -73 Net interest income after provisioning 230 226 244 234 228 249 Net commission income 264 272 267 262 346 280 Trading profit* 1 0 1 1 1 1 Net result on investments and securities portfolio 0 0 1 -1 0 -2 Other result -3 4 3 10 -12 -5 Revenue 492 502 516 506 563 523 Operating expenses 421 415 433 451 452 471 Operating profit 71 87 83 55 111 52 Restructuring expenses 0 0 0 0 0 96 Pre-tax profit 71 87 83 55 111 -44
Average equity tied up 1.904 1.902 1.909 1.945 1.955 2.457 Operating return on equity (%) 14,9% 18,3% 17,4% 11,3% 22,7% 8,5% Cost/income ratio in operating business (%) 78,3% 75,7% 77,0% 78,7% 73,1% 79,0% Return on equity of pre-tax profit (%) 14,9% 18,3% 17,4% 11,3% 22,7% -7,2%
26
Q2 results 2006
Asset Management Quarterly results in new Group structure (as stated in the reports)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q l 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 4 -1 -7 -6 -4 -6 Provision for possible loan losses 0 0 0 0 0 0 Net interest income after provisioning 4 -1 -7 -6 -4 -6 Net commission income 127 133 145 170 168 174 Trading profit* 2 3 2 2 3 4 Net result on investments and securities portfolio 1 3 4 8 3 3 Other result -2 -4 5 -3 0 -1 Revenue 132 134 149 171 170 174 Operating expenses 95 117 103 151 128 147 Operating profit 37 17 46 20 42 27 Restructuring expenses 0 0 0 0 0 0 Pre-tax profit 37 17 46 20 42 27
Average equity tied up 533 513 535 567 618 544 Operating return on equity (%) 27,8% 13,3% 34,4% 14,1% 27,2% 19,9% Cost/income ratio in operating business (%) 72,0% 87,3% 69,1% 88,3% 75,3% 84,5% Return on equity of pre-tax profit (%) 27,8% 13,3% 34,4% 14,1% 27,2% 19,9%
27
Q2 results 2006
Mittelstand Quarterly results in new Group structure (as stated in the reports)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q l 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 274 305 299 317 311 282 Provision for possible loan losses -105 -91 -44 11 -75 -76 Net interest income after provisioning 169 214 255 328 236 206 Net commission income 132 141 151 169 160 164 Trading profit* 19 18 25 28 27 27 Net result on investments and securities portfolio 1 1 2 5 5 0 Other result 3 -1 0 -7 -1 0 Revenue 324 373 433 523 427 397 Operating expenses 241 248 268 297 269 262 Operating profit 83 125 165 226 158 135 Restructuring expenses 0 0 0 22 0 0 Pre-tax profit 83 125 165 204 158 135
Average equity tied up 2.998 3.028 3.154 3.292 3.314 2.892 Operating return on equity (%) 11,1% 16,5% 20,9% 27,5% 19,1% 18,7% Cost/income ratio in operating business (%) 56,2% 53,4% 56,2% 58,0% 53,6% 55,4% Return on equity of pre-tax profit (%) 11,1% 16,5% 20,9% 24,8% 19,1% 18,7%
28
Q2 results 2006
Corporates & MarketsQuarterly results in new Group structure (as stated in the reports)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q l 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 89 91 94 89 93 68 Provision for possible loan losses -22 -15 -2 70 -12 -11 Net interest income after provisioning 67 76 92 159 81 57 Net commission income 40 28 21 29 32 20 Trading profit* 259 77 206 223 305 305 Net result on investments and securities portfolio 5 3 15 -27 15 5 Other result -3 7 4 -2 8 21 Revenue 368 191 338 382 441 408 Operating expenses 262 234 220 227 252 251 Operating profit 106 -43 118 155 189 157 Restructuring expenses 0 0 0 15 0 3 Pre-tax profit 106 -43 118 140 189 154
Average equity tied up 2.691 2.769 2.775 2.761 2.807 2.323 Operating return on equity (%) 15,8% -6,2% 17,0% 22,5% 26,9% 27,0% Cost/income ratio in operating business (%) 67,2% 113,6% 64,7% 72,8% 55,6% 59,9% Return on equity of pre-tax profit (%) 15,8% -6,2% 17,0% 20,3% 26,9% 26,5%
29
Q2 results 2006
Commercial Real Estate Quarterly results in new Group structure (as stated in the reports)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q l 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 39 43 38 56 48 216 Provision for possible loan losses -17 -18 -47 -48 -4 -57 Net interest income after provisioning 22 25 -9 8 44 159 Net commission income 17 19 17 26 18 45 Trading profit* 0 -1 0 0 0 4 Net result on investments and securities portfolio 0 0 0 0 0 4 Other result 1 3 5 -3 4 18 Revenue 40 46 13 31 66 230 Operating expenses 23 21 22 21 24 120 Operating profit 17 25 -9 10 42 110 Restructuring expenses 0 0 0 0 0 13 Pre-tax profit 17 25 -9 10 42 97
Average equity tied up 433 459 437 539 531 3.911 Operating return on equity (%) 15,7% 21,8% -8,2% 7,4% 31,6% 11,3% Cost/income ratio in operating business (%) 40,4% 32,8% 36,7% 26,6% 34,3% 41,8% Return on equity of pre-tax profit (%) 15,7% 21,8% -8,2% 7,4% 31,6% 9,9%
30
Q2 results 2006
Public Finance & TreasuryQuarterly results in new Group structure (as stated in the reports)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q l 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 79 112 88 120 94 144 Provision for possible loan losses -8 -7 -12 -6 -8 -8 Net interest income after provisioning 71 105 76 114 86 136 Net commission income -2 -2 -3 -6 -4 -13 Trading profit* -43 -85 -28 -44 -6 -7 Net result on investments and securities portfolio 58 49 25 32 -11 37 Other result 0 0 -1 -2 0 1 Revenue 84 67 69 94 65 154 Operating expenses 11 10 11 20 13 30 Operating profit 73 57 58 74 52 124 Restructuring expenses 0 0 0 0 0 6 Pre-tax profit 73 57 58 74 52 118
Average equity tied up 934 936 932 942 958 1.166 Operating return on equity (%) 31,3% 24,4% 24,9% 31,4% 21,7% 42,5% Cost/income ratio in operating business (%) 12,0% 13,5% 13,6% 20,0% 17,8% 18,5% Return on equity of pre-tax profit (%) 31,3% 24,4% 24,9% 31,4% 21,7% 40,5%
31
Q2 results 2006
Others and ConsolidationQuarterly results in new Group structure (as stated in the reports)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q l 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income -40 25 -31 -44 0 34 Provision for possible loan losses 0 0 0 0 0 0 Net interest income after provisioning -40 25 -31 -44 0 34 Net commission income 0 2 1 -5 -2 -11 Trading profit* 12 -6 6 7 6 21 Net result on investments and securities portfolio 229 28 32 173 433 137 Other result 7 17 -10 -2 -20 -40 Revenue 208 66 -2 129 417 141 Operating expenses 54 43 40 203 52 46 Operating profit 154 23 -42 -74 365 95 Restructuring expenses 0 0 0 0 0 96 Pre-tax profit 154 23 -42 -74 365 -1
Average equity tied up 826 594 302 846 2.141 -943 Operating return on equity (%) . . . . . .Cost/income ratio in operating business (%) . . . . . .Return on equity of pre-tax profit (%) . . . . . .
32
Q2 results 2006
Commerzbank Group Pro forma full integration of Eurohypo (Q1 2005 – Q1 2006)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q I 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 987 1.084 1.009 1.060 1.059 1.060 Provision for possible loan losses -261 -237 -228 -106 -225 -225 Net interest income after provisioning 726 847 781 954 834 835 Net commission income 593 629 659 679 756 659 Trading profit* 217 17 193 222 336 355 Net result on investments and securities portfolio 313 102 80 163 446 184 Other result 2 22 10 -7 -20 -6 Revenue 1.851 1.617 1.723 2.011 2.352 2.027 Operating expenses 1.217 1.211 1.230 1.514 1.320 1.327 Operating profit 634 406 493 497 1.032 700 Restructuring expenses 0 0 47 43 0 214 Pre-tax profit 634 406 446 454 1.032 486
Average equity tied up 11.675 11.557 11.400 11.344 12.324 12.350 Operating return on equity (%) 21,7% 14,1% 17,3% 17,5% 33,5% 22,7% Cost/income ratio in operating business (%) 57,6% 65,3% 63,0% 71,5% 51,2% 58,9% Return on equity of pre-tax profit (%) 21,7% 14,1% 15,6% 16,0% 33,5% 15,7%
33
Q2 results 2006
Private and Business CustomersPro forma full integration of Eurohypo (Q1 2005 – Q1 2006)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q I 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 333 326 343 348 328 322 Provision for possible loan losses -66 -70 -73 -93 -74 -73 Net interest income after provisioning 267 256 270 255 254 249 Net commission income 259 269 261 258 344 280 Trading profit* 1 0 1 1 1 1 Net result on investments and securities portfolio 1 1 1 -34 -18 -2 Other result -3 2 4 10 -12 -5 Revenue 525 528 537 490 569 523 Operating expenses 447 449 463 484 479 471 Operating profit 78 79 74 6 90 52 Restructuring expenses 0 0 9 11 0 96 Pre-tax profit 78 79 65 -5 90 -44
Average equity tied up 2.527 2.507 2.502 2.504 2.475 2.457 Operating return on equity (%) 12,3% 12,6% 11,8% 1,0% 14,5% 8,5% Cost/income ratio in operating business (%) 75,6% 75,1% 75,9% 83,0% 74,5% 79,0% Return on equity of pre-tax profit (%) 12,3% 12,6% 10,4% -0,8% 14,5% -7,2%
34
Q2 results 2006
Asset Management Pro forma full integration of Eurohypo (Q1 2005 – Q1 2006)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q I 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 3 -2 -8 -8 -6 -6 Provision for possible loan losses 0 0 0 0 0 0 Net interest income after provisioning 3 -2 -8 -8 -6 -6 Net commission income 127 133 145 170 168 174 Trading profit* 2 3 2 2 3 4 Net result on investments and securities portfolio 1 3 4 8 3 3 Other result -2 -4 5 -3 0 -1 Revenue 131 133 148 169 168 174 Operating expenses 95 117 103 151 128 147 Operating profit 36 16 45 18 40 27 Restructuring expenses 0 0 0 0 0 0 Pre-tax profit 36 16 45 18 40 27
Average equity tied up 475 457 478 502 555 544 Operating return on equity (%) 30,3% 14,0% 37,7% 14,3% 28,8% 19,9% Cost/income ratio in operating business (%) 72,5% 88,0% 69,6% 89,3% 76,2% 84,5% Return on equity of pre-tax profit (%) 30,3% 14,0% 37,7% 14,3% 28,8% 19,9%
35
Q2 results 2006
Mittelstand Pro forma full integration of Eurohypo (Q1 2005 – Q1 2006)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q I 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 268 298 291 310 301 282 Provision for possible loan losses -105 -91 -44 11 -75 -76 Net interest income after provisioning 163 207 247 321 226 206 Net commission income 132 141 151 169 160 164 Trading profit* 19 18 25 28 27 27 Net result on investments and securities portfolio 1 1 2 5 5 0 Other result 3 -1 0 -7 -1 0 Revenue 318 366 425 516 417 397 Operating expenses 241 248 268 297 269 262 Operating profit 77 118 157 219 148 135 Restructuring expenses 0 0 0 22 0 0 Pre-tax profit 77 118 157 197 148 135
Average equity tied up 2.596 2.620 2.731 2.845 2.860 2.892 Operating return on equity (%) 11,9% 18,0% 23,0% 30,8% 20,7% 18,7% Cost/income ratio in operating business (%) 57,0% 54,3% 57,1% 58,8% 54,7% 55,4% Return on equity of pre-tax profit (%) 11,9% 18,0% 23,0% 27,7% 20,7% 18,7%
36
Q2 results 2006
Corporates & MarketsPro forma full integration of Eurohypo (Q1 2005 – Q1 2006)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q I 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 83 84 88 82 85 68 Provision for possible loan losses -22 -15 -2 70 -12 -11 Net interest income after provisioning 61 69 86 152 73 57 Net commission income 40 28 21 29 32 20 Trading profit* 259 77 206 223 305 305 Net result on investments and securities portfolio 5 3 15 -27 15 5 Other result -3 7 4 -2 8 21 Revenue 362 184 332 375 433 408 Operating expenses 262 234 220 227 252 251 Operating profit 100 -50 112 148 181 157 Restructuring expenses 0 0 0 15 0 3 Pre-tax profit 100 -50 112 133 181 154
Average equity tied up 2.315 2.379 2.383 2.371 2.407 2.323 Operating return on equity (%) 17,3% -8,4% 18,8% 25,0% 30,1% 27,0% Cost/income ratio in operating business (%) 68,2% 117,6% 65,9% 74,4% 56,6% 59,9% Return on equity of pre-tax profit (%) 17,3% -8,4% 18,8% 22,4% 30,1% 26,5%
37
Q2 results 2006
Commercial Real Estate Pro forma full integration of Eurohypo (Q1 2005 – Q1 2006)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q I 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 194 192 203 217 206 216 Provision for possible loan losses -60 -54 -97 -88 -56 -57 Net interest income after provisioning 134 138 106 129 150 159 Net commission income 39 61 87 66 61 45 Trading profit* 11 6 5 24 15 4 Net result on investments and securities portfolio 0 0 0 -1 1 4 Other result 1 4 5 -2 5 18 Revenue 185 209 203 216 232 230 Operating expenses 93 95 107 117 112 120 Operating profit 92 114 96 99 120 110 Restructuring expenses 0 0 34 -4 0 13 Pre-tax profit 92 114 62 103 120 97
Average equity tied up 3.499 3.547 3.709 3.937 3.862 3.911 Operating return on equity (%) 10,5% 12,9% 10,4% 10,1% 12,4% 11,3% Cost/income ratio in operating business (%) 38,0% 36,1% 35,7% 38,5% 38,9% 41,8% Return on equity of pre-tax profit (%) 10,5% 12,9% 6,7% 10,5% 12,4% 9,9%
38
Q2 results 2006
Public Finance & TreasuryPro forma full integration of Eurohypo (Q1 2005 – Q1 2006)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q I 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income 150 162 126 158 147 144 Provision for possible loan losses -8 -7 -12 -6 -8 -8 Net interest income after provisioning 142 155 114 152 139 136 Net commission income -4 -5 -7 -8 -7 -13 Trading profit* -87 -81 -52 -63 -20 -7 Net result on investments and securities portfolio 76 66 26 39 7 37 Other result -1 -3 2 -1 0 1 Revenue 126 132 83 119 119 154 Operating expenses 26 24 30 35 28 30 Operating profit 100 108 53 84 91 124 Restructuring expenses 0 0 4 -1 0 6 Pre-tax profit 100 108 49 85 91 118
Average equity tied up 1.081 1.133 1.164 1.174 1.198 1.166 Operating return on equity (%) 37,0% 38,1% 18,2% 28,6% 30,4% 42,5% Cost/income ratio in operating business (%) 19,4% 17,3% 31,6% 28,0% 22,0% 18,5% Return on equity of pre-tax profit (%) 37,0% 38,1% 16,8% 29,0% 30,4% 40,5%
39
Q2 results 2006
Others and ConsolidationPro forma full integration of Eurohypo (Q1 2005 – Q1 2006)
*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly
€ m Q I 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006
Net interest income -44 24 -34 -47 -2 34 Provision for possible loan losses 0 0 0 0 0 0 Net interest income after provisioning -44 24 -34 -47 -2 34 Net commission income 0 2 1 -5 -2 -11 Trading profit* 12 -6 6 7 5 21 Net result on investments and securities portfolio 229 28 32 173 433 137 Other result 7 17 -10 -2 -20 -40 Revenue 204 65 -5 126 414 141 Operating expenses 53 44 39 203 52 46 Operating profit 151 21 -44 -77 362 95 Restructuring expenses 0 0 0 0 0 96 Pre-tax profit 151 21 -44 -77 362 -1
Average equity tied up -818 -1.086 -1.567 -1.989 -1.033 -943 Operating return on equity (%) . . . . . .Cost/income ratio in operating business (%) . . . . . .Return on equity of pre-tax profit (%) . . . . . .
40
Q2 results 2006
Group equity definitions
Reconciliation of equity definitions
Basis for RoE on net profit since 2005� unchanged
Equity basis for RoE
New basis for operating RoE and pre-tax RoE from Q2 2006
Old basis for operating RoE and pre-tax RoE until Q1 2006• Contains consolidated net profit (since 2006) and deductions
due to goodwill
• Not aligned with calculation of RoE on net profit
* excluding:• Revaluation reserve• Cash flow hedges• Consolidated profit
Equity definitions in €m Jun 2006
Subscribed capital 1,707
Capital reserve 5,698
Retained earnings 4,153
Reserve from currency translation -130
Investors‘ capital without minorities 11,428
Minority interests * 905
Investors‘ capital 12,333
Change in consolidated companies; goodwill;consolidated net profit minus portion of dividend; 222others
Hybrid capital 2,569
BIS core capital without hybrid capital 12,555
BIS Tier I capital 15,124
For more information, please contact:Commerzbank Investor Relations
Jürgen AckermannHead of Investor RelationsP: +49 69 136 22338M: [email protected]
Sandra BüschkenP: +49 69 136 23617M: [email protected]
Ute Heiserer-JäckelP: +49 69 136 41874M: [email protected]
Simone NuxollP: +49 69 136 45660M: [email protected]/ir
Q2 results 2006
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 representations or guarantees 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