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August 04, 2004

Commerzbank interim report as of June 30, 2004

  • Good second quarter confirms turnaround
  • 838m euros operating profit and 502m euros consolidated profit in first half

In the second quarter of 2004, the Commerzbank Group maintained the good performance of the first three months. At 248m euros, the after-tax consolidated profit was almost as high as in the previous quarter; this translates into 0.42 euros per share.

The operating profit of 838m euros in the first six months of the year was already almost 50% higher than in the whole of 2003. Both net interest income (+5.0%) and net commission income (+11.4%) registered marked increases. At the same time, the pro-rata provision for possible loan losses was reduced to 452m euros. The trading profit alone, at 445m euros, fell short of last year's high level. The bank continues to keep its operating expenses (-3.8%) well under control. The operative return on equity improved during the first half of 2004 to 16.4% (on an annualized basis); the cost/income ratio receded to 63.4%.

The consolidated profit reached 502m euros, or 0.85 euros per share, after six months.

Commerzbank Group's income statement (in €m):

1st half 20041st half 2003Q2 2004Q2 2003
Net interest income1,5231,451805746
Provisions for possible loan losses-452-555-214-303
Net interest income after provisioning1,071896591443
Net commission income1,1541,036557516
Net result on hedge accounting-725-1115
Trading profit445509131278
Net result on investments andsecurities portfolio25815918154
Other operating result149618229
Total income3,0702,6861,5311,335
Operating expenses2,2322,3201,1281,141
Operating profit838366403194
Regular amortization of goodwill41602130
Profit from ordinary activities before expenses arising from restructuring expenses797306382164
Restructuring expenses-104--
Pre-tax profit797202382164
After-tax profit56212227586
Net profit5027324870
Earnings per share (in euros)0.850.140.420.13
Cost/income ratio in operating business (%)63.471.664.669.7
Operative return on equity (%)*16.46.415.86.7

*) annualized

The complete interim report is available on the internet here .