Commerzbank AG — Earnings Release 2001

Aug 9, 2001

News Details

Ad-hoc | 9 August 2001 07:56

Commerzbank AG english

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Commerzbank: half-year result reflects stock-market weakness and cost increase The difficult economic and capital-market conditions exerted an adverse impact on the Commerzbank Group’s earnings performance in the first half of 2001. At the same time, costs continued to rise, though recently somewhat less sharply. Overall, operating expenses in the first six months were 17.8% higher than a year previously. After balancing income and expenses, a pre-tax profit of 495m euros emerges, 73.9% lower in a year-on-year comparison. Last year’s results strongly reflected the high non-recurring proceeds from the IPO of comdirect bank, however. Adjusted for this additional income, the result for the first six months was down by just over a half. Once taxes and the profit attributable to minority interests have been deducted, the net profit totalled 262m euros; earnings per share declined to 0.49 euros (1.15 euros in the first half of 2000, adjusted for the comdirect effect). In the second quarter alone, the pre-tax profit amounted to 186m euros, as against 309m euros in the first three months of this year. In order to slow the surge in costs, the board of managing directors approved a set of measures designed to take effect in the short term. A recruitment freeze and cuts in IT projects are to achieve savings of 240m euros in the current year. If these are accompanied by a gradually improving market environment, the bank expects to achieve a distinct upturn in the months ahead. Key Profit and Loss items in first half 2001 (first half 2000 in parentheses) in million euros Net interest income 1,834 (1,696) +8.1% Provision for possible loan losses 329 (256) +28.5% Net commission income 1,216 (1,423) -14.5% Trading profit 541 (600) -9.8% Result on financial investments 179 (71) +152% Other operating result -37 (834) . Operating expenses 2,909 (2,470) +17.8% Pre-tax profit 495 (1,898) -73.9% Taxes on income 183 (774) -76.4% Net profit 262 (1,095) -76.1% Interim report: http://www.commerzbank.com/navigate/irel_frm.htm end of ad hoc announcement (c) DGAP 09.08.2001 ——————————————————————————– WKN: 803200; Index: DAX Listed: Amtlicher Handel in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München und Stuttgart; Schweizer Börse (Hauptsegment); London, New York (ADR), Tokio 090756 Aug 01