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February 05, 2003

Commerzbank - 2002 financial statements

  • profit before taxes: -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%
  • full distribution for profit-sharing certificates
  • 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 bank's 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 fell short of the bank's self-set 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 bank's 3.9% interest in Crédit Lyonnais. All the same, the negative revaluation reserve was 532m euros lower than at end-September, reaching -750m euros at year-end. The core capital ratio (including market risks) rose to 7.3% according to BIS on December 31, 2002.

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.

Provisional consolidated income statement, 2002 (unaudited)*

in million euros2002 2001
Net interest income3,1263,581
Provision for possible loan losses(1,321)(927)
Net commission income2,1092,267
Trading profit5431,197
Net result on hedge accounting(56)63
Net result on investments and securities portfolio(87)219
Other operating result676(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 income107114
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.

Today, Wednesday, February 5, at 10:30 a.m. (CET) a press conference will be held by Mr. Klaus-Peter Müller, chairman of Commerzbank's Board of Managing Directors. This event will be broadcast live on the internet, on Commerzbank's home page: