Commerzbank AG — Earnings Release 2003

Nov 12, 2003

News Details

Ad-hoc | 12 November 2003 07:28

Commerzbank AG english

Commerzbank goes on the offensive: Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Commerzbank goes on the offensive: – Complete revaluation of its holdings portfolio – Operating profit hits 101m euros in Q3 – Capital increase secures core capital of around 7% Commerzbank`s board of managing directors decided on a complete revaluation of the Bank`s securities and investments portfolio. The book values of all its holdings in listed industrial and financial institutions were adjusted in line with market values. Other holdings were written down to a fair value. This enabled the Bank to free itself from these hidden burdens. The write-down of these holdings as of 30.9.2003 totalled 2.3bn euros. The operating profit of the Commerzbank Group for the third quarter – for the third time in succession – produced solid black figures (101m euros) and confirmed the progress made in the Bank`s turnaround. After nine months, the operating profit of 467m euros is almost three times more than achieved a year ago. The Board confirmed it expects to present a respectable operating profit for the complete year. Through its expenses arising from special factors, a group net loss of 2.3bn euros was reported for Q3. For the whole year 2003, a net loss of around 2bn euros is expected. This will not permit a dividend payment for 2003. However a full distribution will be made on profit-sharing certificates. To compensate for the reduction in its regulatory equity capital following its revaluation action, Commerzbank will this Wednesday, November 12, go to the market with a capital increase without subscription rights for shareholders. A total of around 53.3m new shares, based on capital-raising measures approved at Commerzbank`s Annual General Meetings in 1999 and 2002, will be offered by Commerzbank Securities and Morgan Stanley to institutional investors. After placing these shares, the core capital ratio will return to the Bank`s long-term goal of around seven percent. end of ad-hoc-announcement (c)DGAP 12.11.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Key income statement items (in million euros): Jan.-Sept. 2003 Jan.-Sept. 2002 3. Quarter 3. Quarter 2003 2002 Net interest income 2113 2455 662 721 Provisioning (828) (998) (273) (436) Net commission income 1545 1630 509 501 Trading profit 616 453 107 36 Net result on investments/ securities 223 (379) 64 (531) Operating expenses 3398 3935 1078 1229 Operating profit 467 160 101 (75) Regular amortization of goodwill 89 83 29 26 Profit from ordinary activities 378 77 72 (101) Restructuring expenses 104 32 — 32 Expenses arising from special factors 2325 — (2325) — Pre-tax profit (2051) 45 (2253) (133) Taxes on income 110 38 30 (20) Net loss/profit (2232) (55) (2305) (129) Minus figures in parentheses. The complete Interim Report may be found in the Internet under: www.commerzbank.com/aktionaere/konzern/index.html IMPORTANT NOTE FOR THE MEDIA: Chairman Klaus-Peter Müller will present the board`s decisions in detail at a Press Conference at 10:30 a.m. today, Nov. 12, in the Commerzbank Auditorium in Frankfurt am Main. ——————————————————————————– WKN: 803200; ISIN: DE0008032004; Index: DAX Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; Schweizer Börse (Hauptsegment); London; New York (ADR); Tokio 120728 Nov 03