Commerzbank AG — Earnings Release 2002

Nov 12, 2002

News Details

Ad-hoc | 12 November 2002 08:52

Commerzbank AG english

Commerzbanks interim report of September 30, 2002 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Commerzbanks interim report of September 30, 2002 Rheinhyp income used for write-downs on investments; core capital ratio rises to 6.7%; cuts in investment banking The Commerzbank Group is posting a result on ordinary activities (before restructuring expenses) of minus 101m euros for the third quarter of 2002 (previous year: -279m euros). For the January-September period, a positive pre- tax profit of 45m euros remains. The quarterly result was dominated by non- recurring income of 721m euros from the deconsolidation of the former Rheinische Hypothekenbank. However, this was not used to boost profits but rather to cover write-downs on investments and securities, following impairment tests. Provisioning was increased to 436m euros in the third quarter. For the year as a whole, the Board of Managing Directors expects a need for value allowances in the order of just over 1.3bn euros. In view of the extreme market volatility, they see no point in forecasting the result for 2002 as a whole. The bank`s cost-cutting offensive is proceeding according to plan: after nine months, operating expenses were already 9.9% lower than a year previously. Due in part to the deconsolidation of Rheinhyp, the core capital ratio (BIS) improved substantially to 6.7%. The bank`s overall own funds ratio now stands at 11.5%. In order to bring investment-banking capacity into line with lower demand, the Board of Managing Directors has resolved to scale down the relevant activities considerably in overseas financial centres. This will affect roughly a quarter of the staff in investment banking. In the related back-office areas, at least 150 jobs will be shed. end of ad-hoc-announcement (c)DGAP 12.11.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Key income statement items in million euros Jan-Sept. 02 Jan-Sept. 01 3rd qtr 02 3rd qtr 01 Net interest income 2,455*) 2,693 721*) 859 Provisioning -998 -571 -436 -242 Net commission income 1,630 1,785 501 569 Trading profit 453 660 36 58 Result on investments/ securities -379 105 -531 -74 Other operating result 853 -42 858 -5 Operating expenses 3,935 4,368 1,229 1,459 Pre-tax profit 45 290 -133 -279 *) as from August 1, 2002: without Rheinhyp The full interim report is available on the internet at: www.commerzbank.de/navigate/irel_frm.htm. ——————————————————————————– WKN: 803200; ISIN: DE0008032004; Index: DAX Listed: Amtlicher Markt in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München und Stuttgart; Schweizer Börse (Hauptsegment); London, New York (ADR), Tokio 120852 Nov 02