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March 27, 2009

Commerzbank publishes "Pro-Forma" accounts for the 2008 financial year

- Dresdner Bank purchase price at EUR 4.7 bn (as per closing)

- Core capital ratio (Tier 1) with about 10% adequate


Commerzbank has published today "Pro–Forma" accounts for the 2008 financial year.


In accordance with IFRS 3 all of Dresdner Bank's assets and liabilities are stated with their fair value at closing. The balance is set off against Dresdner Bank's equity capital (purchase price allocation). The "Pro-Forma" accounts also take into account the business relations between the two companies, changes in consolidated entities (full consolidation of Schiffsbank, sale of cominvest and Oldenburgische Landesbank) and the sale of a portfolio of collateralized debt obligations to Allianz.


As per closing, the purchase price for Dresdner Bank is around EUR 4.7 billion. This takes into account that the price is partially paid with new shares in Commerzbank. Based on the closing price of the Commerzbank share as at January 12, 2009 (closing date) of EUR 4.56, the corresponding 163.5 million shares had a total value of approximately EUR 0.7 billion.


The equity capital of Dresdner Bank in the pro forma accounts totals around EUR 3.9 billion, resulting in a goodwill of about EUR 0.8 billion. As already communicated, the core capital ratio (Tier 1) of the new Commerzbank in the "Pro -Forma" accounts is about 10%. Not accounting for the 2009 agreements with the Financial Market Stabilization Fund (Sonderfonds Finanzmarktstabilisierung, SoFFin) and Allianz, the core capital ratio (Tier 1) is around 7%.


In the 2008 financial year, the operating profit was at minus EUR 5.4 billion. The loan loss provisions in the year under review were minus EUR 3.6 billion. A moderate decrease in the loan loss provision is expected in 2009. EUR 4.6 billion was charged against the revaluation reserve in 2008. A significantly lower charge of the revaluation reserve is expected in 2009.


According to IFRS 3 the "Pro-Forma" accounts may be subject to adjustments for a period of up to 12 months following the closing date. As a result, the "Pro-Forma" figures calculated on the basis of the 2008 income statements and the respective balance sheets of Commerzbank and Dresdner Bank are provisional.



Extract of the "Pro-Forma" accounts for the 2008 financial year

in € m Commerzbank Dresdner Bank Transitional effects Pro forma figures
for the new
Commerzbank
Net interest income 4,729 3,017 -421 7,325
Provision for possible Loan losses -1,855 -1,671 -27 -3,553
Net commission income 2,846 2,162 -332 4,676
Trading profit -450 -4,313 80 -4,683
Net investment income -665 731 15 81
Other results -27 -68 -36 -131
Operating expenses 4,956 4,519 -306 9,169
Operating profit -378 -4,661 -415 -5,454
Restructuring expenses 25 0 -13 12
Taxes on income -465 1,535 -138 932
Consolidated surplus attributable to Commerzbank shareholders 3 -6,279 -276 -6,570
Equity 19,904 4,494 -1,580 22,818
Minority interests 657 1,736 160 2,552
TOTAL 625,196 420,961 -578 1,045,579

Note: All figures are as of January 12, 2009 (closing date for takeover).
For more details, see here.

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