Commerzbank AG — Earnings Release 2002

Feb 5, 2003

News Details

Ad-hoc | 5 February 2003 07:44

Commerzbank AG english

Commerzbank-2002 financial statements Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Commerzbank-2002 financial statements – pre-tax loss: -372m euros – provisioning as budgeted at 1.32bn euros – operating expenses down 12% – restructuring expenses of 209m euros – core capital ratio rises to 7.3% – outlook for 2003: return to profitability The Commerzbank Group had to accept a pre-tax loss of 372m euros for the 2002 financial year. After a positive tax effect of 107m euros and minority interests had been taken into account, a net loss of 298m euros remained. Nevertheless, as a gesture towards its shareholders, the banks chairman, Klaus-Peter Müller, will propose to the supervisory board on March 31 that a dividend of 10 cents per share be paid. Given a further deterioration in overall conditions, net interest and commission income as well as proprietary trading failed to reach their year-earlier levels. At the same time, the wave of insolvencies made a sharp increase in provisioning necessary, which was exactly in line with forecasts at 1.32bn euros. The bank achieved distinct successes in its cost-cutting. At 5.15bn euros, operating expenses were not only 12% lower than in 2001, but also easily exceeded the banks target of 5.5bn euros. The net result on investments and securities includes, on the one hand, large write-downs and, on the other hand, the income from the sale of the banks 3.9% interest in Crédit Lyonnais. All the same, the negative revaluation reserve has improved since end-September (-1.28bn euros) to -750m euros. The core capital ratio had reached 7.3% according to BIS by year-end. For the current year, the board of managing directors expects a return to profitability, even under adverse conditions. Among other things, a further reduction of costs to below 5bn euros will be instrumental here. end of ad-hoc-announcement (c)DGAP 05.02.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Provisional consolidated income statement, 2002 (unaudited)* in million euros 2002 2001 Net interest income 3,126 3,581 Provision for possible loan losses (1,321) (927) Net commission income 2,109 2,267 Trading profit 543 1,197 Net result on hedge accounting (56) 63 Net result on investments and securities portfolio (87) 219 Other operating result 676 (220) Operating expenses (5,153) (5,855) Profit/loss before restructuring expenses (163) 325 Restructuring expenses (209) (282) Pre-tax profit/loss (372) 43 Taxes on income 107 114 Minority interests (33) (55) Net profit/loss (298) 102 Core capital ratio (according to BIS) 7.3% 6.0% *Minus figures are shown in parentheses. Further details of the provisional financial statements for 2002 will be presented at a press conference to be held today, Wednesday, February 5, at 10.30 a.m., in Frankfurt. ——————————————————————————– 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 050744 Feb 03