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Commerzbank AG — Investor Presentation 2011
Mar 14, 2011
81_ip_2011-03-14_17ac8b6f-5254-4220-9c5f-14f17873c284.pdf
Investor Presentation
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Commerzbank – Return to sustainable profitability
Fixed Income Investor Call, 8 March 2011
Commerzbank Group with net profit of €1.4bn in 2010
Net profit: Consolidated Result attributable to Commerzbank shareholders
Profitable in all quarters 2010 - strong operating performance of the Core Bank
| in € m |
Q 4 2 0 0 9 |
Q 3 2 0 1 0 |
Q 4 2 0 1 0 |
F Y 2 0 0 9 |
F Y 2 0 1 0 |
/w Co o Ba k re n |
/w A o B F & P R U |
|---|---|---|---|---|---|---|---|
| R b f L L P e v e n u e s e o r e |
2, 1 4 6 |
2, 9 2 2 |
3, 0 1 5 |
1 0, 9 4 8 |
1 2, 6 7 1 |
1 0, 9 0 5 |
1, 7 6 6 |
| L L P |
1, 3 2 4 - |
6 2 1 - |
5 9 5 - |
4, 2 1 4 - |
2, 4 9 9 - |
8 5 3 - |
1, 6 4 6 - |
| O i t p e r a n g e p e n s e s x |
2, 3 9 6 |
2, 1 8 5 |
2, 1 6 4 |
9, 0 0 4 |
8, 8 6 7 |
8, 0 1 7 |
1 7 5 |
| O f / t i i t l p e r a n g p r o o s s |
1, 5 7 4 - |
1 1 6 |
2 5 6 |
2, 2 7 0 - |
1, 3 8 6 |
1, 9 8 1 |
5 9 5 - |
| f i / N l * t t e p r o o s s |
1, 8 5 7 - |
1 1 3 |
2 5 7 |
4, 5 3 7 - |
1, 4 3 0 |
2, 0 5 8 |
6 2 8 - |
- Revenues before LLP increased by 16% y-o-y driven by strong client flow and favorable market conditions
- Low LLP level in the Core Bank; high risk provisioning in ABF
- Cost base: synergy results partially offset by integration charges
- Net profit supported by tax credit in foreign locations
* Consolidated Result attributable to Commerzbank shareholders
Treasury Investor Relations Frankfurt March 2011 2
All core segments profitable in FY 2010
Integration progressing on schedule with key milestones accomplished
More than 80% of overall reduction contracted (>7,300 FTE) Reduction of staff faster than planned Cost synergies Personnel reduction Cost synergies in € bnPersonnel reduction in FTEEnd of December 2010 >45% of total synergy target 2014 of €2.4bn achievedSynergies 2010 slightly above plan Forecast 2011 > €1.5bnIntegration charges in € bnIntegration charges in line with 2010 plan despite higher IT investmentsTotal integration charges confirmed at €2.5bnIT integration nearly finalised (last milestone in H1) Integration charges & IT integration Plan 20110.2as of Dec2010*0.4Plan 20100.4Full Run-Rate2014e2.4as of Dec 20101.1Plan 20101.0Plan9,000 contracted7,300 as of Dec 20105,200 Original Guidance3,000
* including release in other income
Significant risk & balance sheet reduction
- Since 2008 strong reduction across the entire group and various products
- 2010: balance sheet reduction mainly in trading assets due to m-t-m effects and improved netting
-
Development of balance sheet total is in line with EU requirement (<€900bn in 2012)
-
Planned reduction in ABF main driver for RWA decrease in 2010
- Actively managed reduction in Corporates & Markets and PRU
* 2008 pro-forma
Optimization: Asset Based Finance
PF portfolio development (EaD in € bn)1,3
- Risk-oriented portfolio phase-out during the entire duration
- No new business (only management of cover pool)
CRE portfolio development (EaD in € bn)2,3
- Selective new business
- Reduced prolongation quota
- Non-scheduled repayments
| D 2 0 0 9 e c |
D 2 0 1 0 e c |
|
|---|---|---|
| R W A ( in € bn ) |
9 0 |
7 9 |
| L L P ( Y D, in € ) t m |
5 1, 8 8 |
5 1, 8 4 |
| P b l i F i f t he u c n a n c e reo – |
1 4 |
8 - |
| C R E he f t reo – |
1, 0 7 5 |
1, 3 1 5 |
| S h i F i t he f p n a n c e reo – |
3 9 4 |
1 8 9 |
| E H R i l t f t he e a reo – |
1 0 6 |
8 8 |
| L L P i t *) ( % f Ea D r a o o |
0. 6 0 |
0. 6 9 |
| P b l i F i t he f u c n a n c e reo – |
0. 0 1 |
0. 0 < |
| C R E f t he reo – |
1. 2 8 |
1. 7 0 |
| S h i F i he f p n a n c e t reo – |
1. 3 6 |
0. 7 1 |
| E H R i l t t he f e a reo – |
0. 1 5 |
0. 0 5 |
| D f l f l i t t ( in € bn ) e a p o r o o u |
9. 8 |
1 0. 6 |
| ** C i t o v e r a g e r a o ( % ) |
9 7 |
1 0 1 |
* including default portfolio ** including GLLP
1) PF includes public finance portfolios of Eurohypo and EEPK 2) Volume incl. Eurohypo portfolio, AM Leasing and further assets at Commerzbank 3) excl. default portfolio
Portfolio Restructuring Unit - successful downsizing and de-risking with continuing profit contribution
Risk Exposure
in € bn
| ( € Mr d. ) |
A A A |
A A |
A | B B B |
No I G n |
To l ta |
|---|---|---|---|---|---|---|
| R M B S |
3. 0 |
|||||
| C M B S |
0. 5 |
|||||
| C D O |
6. 7 |
|||||
| O t he A B S r |
2. 8 |
|||||
| To l ta |
2. 8 |
2. 0 |
2. 4 |
3. 0 |
2. 9 |
1 3. 0 |
Details
| R is k Ex p os ur e |
d- * m- r |
|
|---|---|---|
| W i te- ba k p ten t ia l r c o |
€ 8. 9 bn |
1 3 % |
| Ne l ( +/- € 2 5m P & L ) tra u |
€ 1. 8 bn |
2 5 % |
| Im irm t l i ke ly /p i b le p a en os s |
€ 2. 3 bn |
7 0 % |
| To l ta |
€ 1 3. 0 bn |
* Markdown-Ratio = 1-(Risk Exposure / Notional value)
Capital base further improved
- › CRD II: de-recognition of Silent Participation Allianz & HT1 as core capital
- › Liability management in January 2011:
- › Pre-tax P&L effect of roughly €300m
- › Total effect on Core Tier 1 Ratio: pro-forma increase of 40bps
- ›157.5m new shares issued
Impact of Basel 3 RWA effects under control – active management compensates regulatory effects – RWA target reduced to <€290bn
Wide range of options for payback of SoFFin funds
Roadmap 2012 targets remain in place
* Pre regulatory effects (i.e. bank levies) and under stable market conditions
2011 outlook: Commerzbank expects to surpass operating profit level of 2010 significantly
Funding review 2010 in € bn8.34.03.00.8 Public sector PfandbriefeUnsecuredFunding Lettres de gage Mortgage Pfandbriefe€16.1bn
Capital markets funding plan 2011 and review 2010
- Average issuance spread was Euribor +55 bps
- Unsecured funding was supported by strong retail franchise
- 2 long dated €1bn benchmarks (7 and 10 years)
-
2 Jumbo Pfandbriefe issued by Eurohypo
-
Funding plan 2011 is below volume achieved in 2010. Can be covered mainly by private placements
- › Approximately one-third of funding plan 2011 already completed YTD
For more information, please contact Commerzbank´s IR team:
Jürgen Ackermann (Head of Investor Relations) P: +49 69 136 22338
Michael H. Klein (Head) P: +49 69 136 24522M: [email protected]
Sandra BüschkenP: +49 69 136 23617M: [email protected]
Ute Heiserer-JäckelP: +49 69 136 41874M: [email protected]
Simone NuxollP: +49 69 136 45660M: [email protected]
Stefan Philippi P: +49 69 136 45231M: [email protected]
Equity / Fixed Income IR Financial Reporting / Rating Strategic Research
Klaus-Dieter Schallmayer (Head) P: +49-69 136 25154M: klaus-dieter.schallmayer @commerzbank.com
Wennemar von Bodelschwingh P: +49 69 136 43611M: wennemar.vonbodelschwingh @commerzbank.com
Michael Desprez P: +49 69 136 25136M: [email protected]
Patricia NovakP: +49 69 136 46442M: [email protected]
Dirk Bartsch (Head) P: +49 69 136 2 2799 M: [email protected]
Ulf PlesmannP: +49 69 136 43888 M: [email protected]
Disclaimer
THIS PRESENTATION IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OF AMERICA OR THE DISTRICT OF COLUMBIA (THE "UNITED STATES").
This presentation does not constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States. The securities referred to herein (including the Notes and the shares of Commerzbank have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or the laws of any state within the U.S., and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons, except in a transaction not subject to, or pursuant to an applicable exemption from, the registration requirements of the Securities Act or any state securities laws. This presentation and the information contained herein may not be distributed or sent into the United States, or in any other jurisdiction in which offers or sales of the securities described herein would be prohibited by applicable laws and should not be distributed to United States persons or publications with a general circulation in the United States. No offering of the Notes is being made in the United States.
Disclaimer
Investor Relations
This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about Commerzbank's beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates, projections and targets as they are currently available to the management of Commerzbank. Forward-looking statements therefore speak only as of the date they are made, and Commerzbank undertakes no obligation to update publicly any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, among others, the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which Commerzbank derives a substantial portion of its revenues and in which it hold a substantial portion of its assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives and the reliability of its risk management policies.
In addition, this presentation contains financial and other information which has been derived from publicly available information disclosed by persons other than Commerzbank ("external data"). In particular, external data has been derived from industry and customer-related data and other calculations taken or derived from industry reports published by third parties, market research reports and commercial publications. Commercial publications generally state that the information they contain has originated from sources assumed to be reliable, but that the accuracy and completeness of such information is not guaranteed and that the calculations contained therein are based on a series of assumptions. The external data has not been independently verified by Commerzbank. Therefore, Commerzbank cannot assume any responsibility for the accuracy of the external data taken or derived from public sources.
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