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August 10, 2000

Commerzbank interim report as of June 30, 2000:
Confidence remains strong after record results

The Commerzbank Group can look back on a highly successful first half-year. Its after-tax profit reached 1,095m euros, which is not only just over twice as high (+120.3%) as in the comparable period of 1999, but also easily the best result in the bank's history. Earnings per share were 2.14 euros. The surge in earnings was accompanied by sustained business expansion; the group's total assets reached almost 408bn euros, representing a 9.6% increase on their end-1999 level.

Due primarily to brisk securities business, both net commission income (+48.7%) and the trading profit (+53.5%) registered high growth rates. An upward tendency also emerged for net interest income after provisioning (+3.9%), which had been lower in a year-on-year comparison in the first quarter. While operating expenses were considerably higher than a year earlier (+21.1%), their rise has now flattened off perceptibly and they were no more than 1.4% ahead of the second half of 1999.

In addition to its good operative earnings, Commerzbank registered a strong "other operating result" of 834m euros. This includes income of 856m euros from the IPO of its subsidiary comdirect bank. Even without these proceeds, the segment reporting shows that the retail banking and real estate division in particular made good progress during the first half of the year.

The bank's board of managing directors sound a confident note for the coming months. Due not least to the favourable economic setting and the positive impact of Germany's tax reform, they expect to be able to maintain good operative earnings, while at the same time containing the increase in costs.

Note: The complete Interim Report is available here.