commerzbankcommerzbank - --- the leading german …...1. strategy additional shareholder value 2....

CommerzbankCommerzbankCommerzbankCommerzbank ---- the leading German commercial bankthe leading German commercial bankthe leading German commercial bankthe leading German commercial bank

Roadshow Roadshow Roadshow Roadshow for the issuance of subordinated capitalfor the issuance of subordinated capitalfor the issuance of subordinated capitalfor the issuance of subordinated capital

Investor Relations and Group TreasuryAugust 2006

1

Issuance lower Tier 2

Ratings:FitchS&PMoody’s

A-BBB+A3Expected instrument ratingsA (stable)A- (stable)A2 (stable)Senior ratings

Executive Summary

Commerzbank is the leading commercial bank in Germany with sustainable and diversified earnings power in all divisions

Initiatives taken in recent years have restored financial flexibility and business strength

The acquisition of Eurohypo has created substantial value for the Commerzbank Group

Consistently strong earnings trend and significant progress in profitability

The issuance of lower Tier 2 capital to replace regulatory haircuts / redemptions

2


Commerzbank´s path to stability and growth1.

Agenda

Capital markets and funding strategy2.

3


Commerzbank´s path to stability and growth

Restored: Corporate financial strength (2000-2004)

• Management changes implemented

• Vigorous cost-cutting• Liquidity prudently

managed• Capital base strengthened

• Significantly de-risked loan portfolio and VaR

• Non-core participations sold

• Restored profitability in Private & Business Customers

• Major turnaround in Mittelstand

• De-risked Corporates & Markets, significant turnaround

Regained: Improved core business (2003-2005)

Progressing: Stability and focused growth

• Strong stand-alone position• Active role in consolidating

German banking market• Enhancing profitability in all

divisions at low volatility levels

• Increasing capital efficiency and strength

• Continuing tight cost management

• Focus on regions and products with competitive strengths

• Focus on investments for internal and external growth

4


High earnings quality maintained in H1

Q2 `06 vs. Q2 `05

1. Operating profit up more than doubled (H1-on-H1)2. First-time full consolidation of Eurohypo, new segment reporting 3. Consistent performance of main income items, trading profit sustainably strong4. Strong performance of Mittelstand, C&M and Public Finance & Treasury5. Total synergy potential with Eurohypo confirmed – first revenue synergies realized

62.8%Net profit, in € m 2852

Operating profit, in € m 2.4x700

Net RoE1, in %

CIR, in %

+2.4pps

-11.0pps

10.02

58.9 �1 annualized; 2 including restructuring charges of €214m

79.8%1,025

2.0x1,659

+5.5pps

-9.2pps

17.9

55.3 �

H1 `06 vs. H1 `05

5


Net interest incomein € m

Strong net interest income

3,133

2,7763,013

3,172

1,885

2002 2003 2004 2005 2006

H1´06

H2´06

1 LLP H1`06, incl. €70m from Eurohypo

• Upward trend in net interest income, despite low interest rate level

• Full consolidation of Eurohypo as of Q2 `06

• Provisioning of €379m still as budgeted

• Risk management being adapted to Basle II requirements

1,267 1,084836

5663791

Loan loss provisions

6


Commission incomein € m

Great improvement in commission income

1,377

2,4152,250

2,1362,120

2002 2003 2004 2005 2006

H2´06

H1´06

• Substantial upward trend driven by strong underlying business in Private & Business Customers and Mittelstand

• Substantial increase in distribution of asset management products

• Securities transactions and payment transactions at a sustainably high level

• Growing contribution of Eurohypo

7


Trading profit1

in € m

H1 trading profit already close to full-year 2005 result

691685

545

777

488

2002 2003 2004 2005 2006

H2´06

H1´06

• Concentration of all resources on client-driven revenue generation proving to be the right decision

• Sustainable trading profit due to strong client-focus

• Particularly positive result from structured retail products

• Closure of all dedicated proprietary trading desks

• Value at risk and earnings volatility at historically low levels

1 including net result on hedge accounting

8


Operating expensesin € m

Continued focus on revenue-related cost management

• Total revenues as of June 06 €4.2bn

• Substantially expanding revenues accompanied by flat costs

• Higher personnel expenses due to performance-related compensation, given strong Group performance

• CIR improved to 55.3%• Cost management

remains top priority

Total revenues Cost income ratio, in %

5,1554,511 4,493 4,662

2,517

5,3475,070

5,504

6,379

2002 2003 2004 2005 2006

77.373.3 70.9

67.155.31

H2´06

H1´06

1annualized

9


Operating profit Net profit

in € m

Commerzbank has already earned practically entire 2005 result

op. RoE 26.9²1.6

2002

4.9

2003

9.9

2004

16.8

2005 2006in %

• Outstanding first half-year

• Consistently strong revenue performance

• Sale of KEB stake

• Substantial improvement of RoE

• Restructuring charges of €214m booked in H1

1 including one-off gains due to partial sale of KEB (€550m) ² annualized

net RoE 17.9²-2.6 -22.3 4.0 12.4

192

1,717

-298

1,011

559

1,02511,165

362

-2,320

H2´06

H1´06

1,6591

10


Revaluation reservein € m

Revaluation reserve remains on high level despite disposals

5-10% Linde

Major participations (as of Jun 30, 2006)

1-5% GeneraliMediobanca (directly and indirectly)

ThyssenKrupp (indirectly)

Net result on investments and securities portfolioin € m

• Unibanco• MAN• KEB

Major disposals since 2005• Heidelberger Druck• Banca Intesa

1 excluding net results of refinancing and dividend

Result on available-for-sale securities

Net result on participations1

Bonds

Equities

-769

1,240

1,600

1,995

965153

2002 2003 2004 2005 H1 `06

291339

647

571

-11

58

2002 2003 2004 2005 H1 `06

1,118

629

11


Regulatory capital (Tier I)in € m

Core capital improving

Own funds (balance sheet)in € bn Dec 2005 Jun 2006

12,161 15,124Total

Subscribed capital 1,705 1,707Reg. reserves 9,647 10,234Minority interests 809 914Hybrid capital - 2,26927,395

2,186

-477

93021,793

1,938

1,025

Dec 2005 Jun 2006

Hyb

rid c

apita

lEH

Y

Hyb

rid c

apita

lC

BK

Subo

rdin

ated

cap

ital E

HY

Oth

ers

Net

pro

fitQ

1+Q

2 20

06 Total capital ratioTarget range: 10.5-10.75%

Tier 1 ratioTarget range: 6.5% as of 31.12.06

6.5-7.0% as of 31.12.07

12


New Group structure

Private & Business

CustomersAsset

Management Mittelstand Corporates &Markets

Commercial Real Estate

• Retail Banking• Private Banking• comdirect bank• Retail Banking

Eurohypo

• German Asset Management

• International Asset Management

• Real Estate Asset Management

• Mittelstand Germany

• Central/Eastern Europe

• BRE Bank• Asia• Financial

Institutions

• Markets• Multinational

Corporates• UK• Europe West• USA • Africa

• Public Finance & Treasury Eurohypo

• Essenhyp• EEPK• Treasury

PCAM CIB

BlessingKassow

Commerzbank

CRO: Hartmann CEO: Müller CFO: Strutz

Public Finance & Treasury

CRE, Public Finance and Treasury

Knobloch

• Commercial Real Estate Eurohypo

• Commercial Real Estate USA

• CLI• CORECD

Teller Patig

13


Private & Business Customers / Asset Management

Equity allocation within Group 1 operating ROE

Asset ManagementOperating profit in € m

4.7%

ROE1 23.8

CIR 79.9

H1 `06in %

Private & Business CustomersOperating profit in € m

17.9%

ROE1 14.8

CIR 76.0

H1 `06in %

• comdirect: Expansion of affluent customers base (overall 15% more clients since Jan 2005)

• Private Banking: Growing via 39 private banking centres throughout Germany

• Retail Banking: Converting further branches into “branch of the future”

• Retail Real Estate Financing: Joint credit platform with Eurohypo to build on market leader position

• Initiated a five-year expansion programme (“Alpha”) at German asset management unit Cominvest

• Streamlining product range, strong focus on innovative products • Strengthen distribution also outside Commerzbank Group (AuM to

double by 2011)• Proactive preparation for German REITS

163158

H1 `05 H1 `06

6954

H1 `05 H1 `06

14


Mittelstand / Corporates & Markets

Equity allocation within Group 1 operating ROE

Corporates & Markets Operating profit in € m

20.8%

ROE1 27.0

CIR 57.7

H1 `06in %

MittelstandOperating profit in € m

25.2%

ROE1 18.9

CIR 54.5

H1 `06in %

• Steady acquisition of new customers, more than 10,000 new clients since 2004

• Growing existing business by increasing share of wallet (“value manager” to measure economic profit of each client)

• Exploring further cross-selling potential within Group (e.g. interlink with C&M)

• Optimization of sales processes• Further improvement of asset quality and lower risk provisioning

• Greater capital efficiency (roughly €200m through CLO)• Building on market leader position for structured products (“Best

in Germany”)• Systematic cross-selling approach to corporate clients • Focusing on regions and products with competitive strengths –

sustainable value proposition for CB’s customers • Further tight cost control

293

208

H1 `05 H1 `06

346

63

H1 `05 H1 `06

15


Earnings growth at historically low risk levelsin € mVaR1

Trading profit at Corporates & Markets²

5,0

10,0

15,0

20,0

312

154

9

114

259

77

206 223

305 305

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06

1 Overnight at 97.5%² Incl. net result on hedge accounting

16%

10%

20%

6%

48%

Equity derivativesEquities Sales & TradingFX tradingInterest rates tradingothers (customer-related)

Breakdown sales & trading (Markets H1 `06)

Average VaR in Q2 €8.2m

16


Public Finance & TreasuryOperating profit in € m

Commercial Real EstateOperating profit in € m

Commercial Real Estate / Public Finance & Treasury

18.0%

Equity allocation within Group

8.6%

ROE1 13.7

CIR 40.3

H1 `06in %

ROE1 33.1

CIR 18.3

H1 `06in %

1 operating ROE

• Germany’s No. 1 commercial real estate bank• Germany’s No. 2 home finance provider• European market leader for real estate syndications and CMBS• CB holds participations in mortgage banks with different

business focuses• Expanded range of products for clients in Germany and abroad• Synergies in IT, purchasing, loan servicing and cross-selling

• Essenhyp and EEPK on a high-profitability course • Stable profit contribution due to central portfolio management

(EHY)• Margin-oriented new business with international focus (EHY)• Further portfolio diversification through international focus

(EHY)• Creation of own origination unit and stronger focus on structured

products (EHY)

152

42

H1 `05 H1 `06

176130

H1 `05 H1 `06

17


Strong business fit

Additional shareholder valueSubstantial

value creation

• EPS and ROE accretion starting in 2006• Rising dividends in following years• Benefit from German recovery story• Value-enhancing with identified synergies• High tax benefits

• Reinforce Commerzbank’s position as the leading German commercial bank

• Broaden exposure in the recovering German real estate market (No. 1 with market share of 22%)

• Increasing and more stable earnings

Main benefits of Eurohypo transaction

18


Integration of Eurohypo progressing well

Joint business processes established

Key functions centrally managed��

Total synergy potential reconfirmed

First revenue synergies realized��

All integration projects fully in line with plan

Required measures at executive level initiated��

Strong identification of staff with new Group …

… creating new business momentum��

Focus in H2:

• Implementation of defined measures

• Origination strategy

• Increase of real estate capital market product range

19


Commerzbank’s main areas of focus

Costs/Synergies3.

Strategy1.

Additional shareholder value

Divisions2.

Capital4.

• Strengthening leading position in Germany• Playing an active part in consolidating the German

banking market• Balance of focused growth and profitability

• Keeping strong momentum in Mittelstand and C&M• Growing business in PBC and AM• Focus on origination strategy at CRE

• Pursuing several cost-efficiency programmes• Utilizing cost and revenue synergies with EHY

• Capital management• Maintaining target range of 6.5 – 7.0% Tier I ratio• Basle II

20


Commerzbank´s path to stability and growth1.

Agenda

Capital markets and funding strategy2.

21


Pfandbriefe

Lettres de Gage

Unsecured(short-term)

Unsecured(long-term)

Tier I / II / III Capital

Domesticunsecured

Issuing entities of Commerzbank Group in capital markets

Issuer

Instrument

��

��

��

��

��

��

��

��

��

��

��

��

Issuers under the Commerzbank umbrella

22


CB AG Eurohypo EEPKEssenhyp BRE Bank

Systematic tapping of the capital markets gives investors clear guidance

Coordination ofcapital market activities

Framework for capital market activities

Issuance calendar, roadshows

Processes

Capital Markets Committee

Capital Market Committee sets boundaries for member´s activities

Capital Markets Committee

23


Unsecured Debt and Capital

� Senior unsecured debt Commerzbank� Subordinated debt or� Hybrid Tier I capital Eurohypo AG

Centralized group funding

Covered Bonds

� Hypothekenpfandbriefe� Öffentliche Pfandbriefe Eurohypo AG� Jumbo-Pfandbriefe

� Lettres de Gage Eurohypo S.A.

Integrated approach of Commerzbank - Eurohypo in capital markets

Funding teams of CB AG and Eurohypo part of integrated Group Treasury

Issuing entity decision based upon

� Funding needs� Market access� Investor demand� Funding costs

24


Issuance plan of Commerzbank AG for 2006

30% - 40%

35% -

45%

20% -

30%

Total volume planned €6-7bn Issued as of August approx. €4bn

� Senior unsecured� Lower Tier 2� Hybrid Tier 1

1.60.22.2

Status(in € bn)

� Hybrid Tier 1 to finance acquisition of Eurohypo

� Senior unsecured to replace maturing debt

� Tier 2 to replace haircuts and to stabilize total capital ratio at target ratio after acquisition of Eurohypo

Tier 2Senior unsecured

Hybrid Tier 1

25


Capital market issuances of Commerzbank AG well diversified

Distribution by product typeOutstanding volume as of 30.06.06 in € bn

0.7

8.4

60%

26%

14%

5.0

2.2

8.7

Senior plain vanillabonds

Capital instruments

Interest rate structures

Lower Tier 2

Hybrid Tier 1

UpperTier 2

Equity-linkednotes

Credit-linked notes

€8.4bn€25.0bn

26


RWAs and capital ratios of Commerzbank group

Capital levels sound, despite Eurohypo consolidation

141 140 150

231 232

Regulatory haircuts and redemptions ofoutstanding capital instruments forCommerzbank/Eurohypo, in € m

* acc. to BIS including market-risk position

Q4/2003 Q4/2004 Q4/2005 Q1/2006 Q2/2006

0

3,000

6,000

9,000

12,000

2006 2007 2008 2009 2010 2011 >2011

Lower Tier 2 Upper Tier 2 Hybrid Tier 1

� Stabilization of overall capital ratio by raising tier 2 capital in selected markets

� Further measures addressed to raise capital efficiency (capital allocation, securitization)

� Basle-II effects closely monitored

In %

In %

In € bn

First timeconsolidationof Eurohypo

Tier 1 ratio*

Total capital ratio

Risk weighted assets

7.3 7.58.1

6.5

13.012.6 12.5

10.6

6.5

10.3

27


� Highly successful inaugural Tier 1 issue

Commerzbank`s inaugural hybrid Tier 1 offerings earlier in the year

� Transaction well received - oversubscribed 3x� More than EUR 6bn in orders� More than 275 investors participated

� Record-breaking transaction� Largest-ever Tier 1 capital issued by a German issuer� Largest GBP Tier 1 issued by a European issuer

� Positive reception led to strong after-market performance

Commerzbank Capital Funding Trust I

Non-cumulative non-voting Trust Preferred Sec.

Size: EUR 1 billion

Structure: PerpNC10 (12. April 2016)

Coupon: 5.012%

Step-up: 100bps if not called

Spread: Mid swaps + 115bps (B+133.9bps)

Commerzbank Capital Funding Trust II

Non-cumulative non-voting Trust Preferred Sec.

Size: GBP 800 million

Structure: PerpNC12 (12. April 2018)

Coupon: 5.905%

Step-up: 100bps if not called

Spread: Gilt +150bps

28


Description of the offering

Issuer: Commerzbank AG

Instrument: Lower Tier 2

Currencies / market: Euro

Amount: Benchmark size

Maturity: min. 10 years (bullet or callable structure)

Expected ratings: A3 / BBB+ / A- (Moody’s / S&P / Fitch)

Lead Manager: Citigroup and Commerzbank Corporates & Markets

29


Issuance of lower Tier 2 is driven by regulatory haircuts / redemptions

Our reason for raising lower Tier 2 capital

Meet strong investor interest from Commerzbank’s investor base

Built on the strong demand for Commerzbank credit seen in spring

Maintain regulatory requirements for total capital

Optimize capital structure for the newly formed group

30


31


Commerzbank‘s rating profile(as of August 2006)

Senior debt

Short term debt

Subordinated debt

Hybrid Tier 1

Outlook

A2

P-1

A3

Baa1

stable

A-

A-2

BBB+

BBB

stable

A

F1

A-

A-

stable

32


Commerzbank Group Quarterly results in new Group structure

*) since June 30, 2006, the Net result on hedge accounting has been shown as part of the Trading profit; the quarterly figures has been restated accordingly

€ m Q l 2005 Q II 2005 Q III 2005 Q IV 2005 Q I 2006 Q II 2006

Net interest income 721 847 771 833 825 1.060 Provision for possible loan losses -198 -177 -151 -40 -154 -225 Net interest income after provisioning 523 670 620 793 671 835 Net commission income 578 593 599 645 718 659 Trading profit* 250 6 212 217 336 355 Net result on investments and securities portfolio 294 84 79 190 445 184 Other result 3 26 6 -9 -21 -6 Revenue 1.648 1.379 1.516 1.836 2.149 2.027 Operating expenses 1.107 1.088 1.097 1.370 1.190 1.327 Operating profit 541 291 419 466 959 700 Restructuring expenses 0 0 0 37 0 214 Pre-tax profit 541 291 419 429 959 486

Average equity tied up 10.319 10.201 10.044 10.892 12.324 12.350 Operating return on equity (%) 21,0% 11,4% 16,7% 17,1% 31,1% 22,7% Cost/income ratio in operating business (%) 60,0% 69,9% 65,8% 73,0% 51,7% 58,9% Return on equity of pre-tax profit (%) 21,0% 11,4% 16,7% 15,8% 31,1% 15,7%

33


Private and Business CustomersQuarterly results in new Group structure



Net interest income 276 272 290 301 283 322 Provision for possible loan losses -46 -46 -46 -67 -55 -73 Net interest income after provisioning 230 226 244 234 228 249 Net commission income 264 272 267 262 346 280 Trading profit* 1 0 1 1 1 1 Net result on investments and securities portfolio 0 0 1 -1 0 -2 Other result -3 4 3 10 -12 -5 Revenue 492 502 516 506 563 523 Operating expenses 421 415 433 451 452 471 Operating profit 71 87 83 55 111 52 Restructuring expenses 0 0 0 0 0 96 Pre-tax profit 71 87 83 55 111 -44

Average equity tied up 1.904 1.902 1.909 1.945 1.955 2.457 Operating return on equity (%) 14,9% 18,3% 17,4% 11,3% 22,7% 8,5% Cost/income ratio in operating business (%) 78,3% 75,7% 77,0% 78,7% 73,1% 79,0% Return on equity of pre-tax profit (%) 14,9% 18,3% 17,4% 11,3% 22,7% -7,2%

34


Asset Management Quarterly results in new Group structure



Net interest income 4 -1 -7 -6 -4 -6 Provision for possible loan losses 0 0 0 0 0 0 Net interest income after provisioning 4 -1 -7 -6 -4 -6 Net commission income 127 133 145 170 168 174 Trading profit* 2 3 2 2 3 4 Net result on investments and securities portfolio 1 3 4 8 3 3 Other result -2 -4 5 -3 0 -1 Revenue 132 134 149 171 170 174 Operating expenses 95 117 103 151 128 147 Operating profit 37 17 46 20 42 27 Restructuring expenses 0 0 0 0 0 0 Pre-tax profit 37 17 46 20 42 27

Average equity tied up 533 513 535 567 618 544 Operating return on equity (%) 27,8% 13,3% 34,4% 14,1% 27,2% 19,9% Cost/income ratio in operating business (%) 72,0% 87,3% 69,1% 88,3% 75,3% 84,5% Return on equity of pre-tax profit (%) 27,8% 13,3% 34,4% 14,1% 27,2% 19,9%

35


Mittelstand Quarterly results in new Group structure



Net interest income 274 305 299 317 311 282 Provision for possible loan losses -105 -91 -44 11 -75 -76 Net interest income after provisioning 169 214 255 328 236 206 Net commission income 132 141 151 169 160 164 Trading profit* 19 18 25 28 27 27 Net result on investments and securities portfolio 1 1 2 5 5 0 Other result 3 -1 0 -7 -1 0 Revenue 324 373 433 523 427 397 Operating expenses 241 248 268 297 269 262 Operating profit 83 125 165 226 158 135 Restructuring expenses 0 0 0 22 0 0 Pre-tax profit 83 125 165 204 158 135

Average equity tied up 2.998 3.028 3.154 3.292 3.314 2.892 Operating return on equity (%) 11,1% 16,5% 20,9% 27,5% 19,1% 18,7% Cost/income ratio in operating business (%) 56,2% 53,4% 56,2% 58,0% 53,6% 55,4% Return on equity of pre-tax profit (%) 11,1% 16,5% 20,9% 24,8% 19,1% 18,7%

36


Corporates & MarketsQuarterly results in new Group structure



Net interest income 89 91 94 89 93 68 Provision for possible loan losses -22 -15 -2 70 -12 -11 Net interest income after provisioning 67 76 92 159 81 57 Net commission income 40 28 21 29 32 20 Trading profit* 259 77 206 223 305 305 Net result on investments and securities portfolio 5 3 15 -27 15 5 Other result -3 7 4 -2 8 21 Revenue 368 191 338 382 441 408 Operating expenses 262 234 220 227 252 251 Operating profit 106 -43 118 155 189 157 Restructuring expenses 0 0 0 15 0 3 Pre-tax profit 106 -43 118 140 189 154

Average equity tied up 2.691 2.769 2.775 2.761 2.807 2.323 Operating return on equity (%) 15,8% -6,2% 17,0% 22,5% 26,9% 27,0% Cost/income ratio in operating business (%) 67,2% 113,6% 64,7% 72,8% 55,6% 59,9% Return on equity of pre-tax profit (%) 15,8% -6,2% 17,0% 20,3% 26,9% 26,5%

37


Commercial Real Estate Quarterly results in new Group structure



Net interest income 39 43 38 56 48 216 Provision for possible loan losses -17 -18 -47 -48 -4 -57 Net interest income after provisioning 22 25 -9 8 44 159 Net commission income 17 19 17 26 18 45 Trading profit* 0 -1 0 0 0 4 Net result on investments and securities portfolio 0 0 0 0 0 4 Other result 1 3 5 -3 4 18 Revenue 40 46 13 31 66 230 Operating expenses 23 21 22 21 24 120 Operating profit 17 25 -9 10 42 110 Restructuring expenses 0 0 0 0 0 13 Pre-tax profit 17 25 -9 10 42 97

Average equity tied up 433 459 437 539 531 3.911 Operating return on equity (%) 15,7% 21,8% -8,2% 7,4% 31,6% 11,3% Cost/income ratio in operating business (%) 40,4% 32,8% 36,7% 26,6% 34,3% 41,8% Return on equity of pre-tax profit (%) 15,7% 21,8% -8,2% 7,4% 31,6% 9,9%

38


Public Finance & TreasuryQuarterly results in new Group structure



Net interest income 79 112 88 120 94 144 Provision for possible loan losses -8 -7 -12 -6 -8 -8 Net interest income after provisioning 71 105 76 114 86 136 Net commission income -2 -2 -3 -6 -4 -13 Trading profit* -43 -85 -28 -44 -6 -7 Net result on investments and securities portfolio 58 49 25 32 -11 37 Other result 0 0 -1 -2 0 1 Revenue 84 67 69 94 65 154 Operating expenses 11 10 11 20 13 30 Operating profit 73 57 58 74 52 124 Restructuring expenses 0 0 0 0 0 6 Pre-tax profit 73 57 58 74 52 118

Average equity tied up 934 936 932 942 958 1.166 Operating return on equity (%) 31,3% 24,4% 24,9% 31,4% 21,7% 42,5% Cost/income ratio in operating business (%) 12,0% 13,5% 13,6% 20,0% 17,8% 18,5% Return on equity of pre-tax profit (%) 31,3% 24,4% 24,9% 31,4% 21,7% 40,5%

39


Others and ConsolidationQuarterly results in new Group structure



Net interest income -40 25 -31 -44 0 34 Provision for possible loan losses 0 0 0 0 0 0 Net interest income after provisioning -40 25 -31 -44 0 34 Net commission income 0 2 1 -5 -2 -11 Trading profit* 12 -6 6 7 6 21 Net result on investments and securities portfolio 229 28 32 173 433 137 Other result 7 17 -10 -2 -20 -40 Revenue 208 66 -2 129 417 141 Operating expenses 54 43 40 203 52 46 Operating profit 154 23 -42 -74 365 95 Restructuring expenses 0 0 0 0 0 96 Pre-tax profit 154 23 -42 -74 365 -1

Average equity tied up 826 594 302 846 2.141 -943 Operating return on equity (%) . . . . . .Cost/income ratio in operating business (%) . . . . . .Return on equity of pre-tax profit (%) . . . . . .

40


Group equity definitions

Reconciliation of equity definitions

Basis for RoE on net profit since 2005� unchanged

Equity basis for RoE

New basis for operating RoE and pre-tax RoE from Q2 2006

Old basis for operating RoE and pre-tax RoE until Q1 2006• Contains consolidated net profit (since 2006) and deductions

due to goodwill• Not aligned with calculation of RoE on net profit

* excluding:• Revaluation reserve• Cash flow hedges• Consolidated profit

Equity definitions in €m Jun 2006

Subscribed capital 1,707

Capital reserve 5,698

Retained earnings 4,153

Reserve from currency translation -130

Investors‘ capital without minorities 11,428

Minority interests * 905

Investors‘ capital 12,333

Change in consolidated companies; goodwill;consolidated net profit minus portion of dividend; 222others

Hybrid capital 2,569

BIS core capital without hybrid capital 12,555

BIS Tier I capital 15,124

For more information, please contact:Commerzbank Investor Relations

Jürgen Ackermann (Head of Investor Relations)P: +49 69 136 22338M: [email protected]

Sandra Büschken (Deputy Head of IR)P: +49 69 136 23617M: [email protected]

Dr. Kai FranzmeyerHead of Group TreasuryP: +49 69 136 42867M: [email protected] KaufmannHead of Capital Markets Funding Commerzbank GroupP: +49 69 271 38109M: [email protected] SpohnHead of Capital Markets Funding Commerzbank AGP: +49 69 136 44883M: [email protected]/ir


Disclaimer

/ investor relations /

This presentation has been prepared and issued by Commerzbank AG. This publication is intended for professional and institutional customers./Any information in this presentation is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by Commerzbank Group with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgement at this date and time, and are subject to change without notice. This presentation is for information purposes, it is not intended to be and should not be construed as an offer or solicitation to acquire, or dispose of any of the securities or issues mentioned in this presentation./Commerzbank AG and/or its subsidiaries and/or affiliates (herein described as Commerzbank Group) may use the information in this presentation prior to its publication to its customers. Commerzbank Group or its employees may also own or build positions or trade in any such securities, issues, and derivatives thereon and may also sell them whenever considered appropriate. Commerzbank Group may also provide banking or other advisory services to interested parties./Commerzbank Group accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation./Copies of this document are available upon request or can be downloaded from www.commerzbank.com/aktionaere/index.html

commerzbankcommerzbank - --- the leading german …...1. strategy additional shareholder value 2....

Documents