Commerzbank AG — Earnings Release 2003

Feb 18, 2004

News Details

Ad-hoc | 18 February 2004 07:31

Commerzbank`s 2003 financial results

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Commerzbank`s 2003 financial results – Operating profit improved by a good 350m euros – Provisioning on course – Cost target achieved ahead of plan at 4.5bn euros – Net loss for the year due to clean-up In 2003, the Commerzbank Group improved its operating profit by more than 350m euros to 559m euros in a year-on-year comparison. Despite further strong reduction of its risk-weighted assets (-12% to 141bn euros), earnings rose, while in operating expenses (-12.5%) the target set for 2004 was realized ahead of plan. At 1,084m euros, provision for possible loan losses was exactly on course. The final quarter, too, was quite satisfactory, producing an operating profit of 92m euros. Compared with the same quarter of 2002, there was a strong improvement of 187%. Due to the extensive revaluation of the investments and securities portfolio amounting to 2,325m euros, as of September 30, and also to the restructuring expenses already booked in the first quarter of 2003 (104m euros), the bank is posting a net loss of 2,320m euros for the year as a whole. Here, high tax expenses (249m euros) also have to be taken into consideration. As a result of the clean-up operation, the revaluation reserve is positive at 1,240m euros. Also thanks to the November capital increase, it was possible to hold the core capital ratio at the solid level of 7.3%. end of ad-hoc-announcement (c)DGAP 18.02.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Consolidated income statement (in million euros): 2003*) 2002 Q4 2003*) Q4 2002 Net interest income 2,776 3,133 663 678 Provision for possible loan losses (1,084) (1,321) (256) (323) Net commission income 2,136 2,120 591 490 Trading profit 737 544 121 91 Net result on investments/ securities portfolio 291 (11) 68 368 Operating expenses 4,511 5,155 1,113 1,220 Operating profit 559 192 92 32 Regular amortization 110 108 21 25 of goodwill Profit from ordinary Activities 449 84 71 7 Expenses arising from special factors and restructuring 2,429 456 – 424 Pre-tax profit (1,980) (372) 71 (417) Taxes 249 (103) 139 (141) Consolidated loss (2,320) (298) (88) (243) Core capital ratio (according to BIS) 7.3% 7.3% Operative return on equity 4.9% 1.6% Operative cost/income ratio 73.3% 77.3% *) without auditor`s certificate; minus figures in parentheses. Detailed tables are available on the internet at http://www.commerzbank.com/aktionaere/konzern/index.html Further details on the financial statements for 2003 will be presented at a press conference today, Wednesday, February 18, at 10.30 a.m., in Frankfurt. The event will be broadcast live on the internet. ——————————————————————————– 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 180731 Feb 04