Press Release Press Release

search

March 29, 2011

Commerzbank presents Annual Report 2010

● Return to profitability one year earlier than planned, risks further reduced
● Operating profit 2011 expected to be significantly higher than 2010, ‘Roadmap 2012’ confirmed
● Basic salary of the Board of Managing Directors limited to EUR 500,000 each for 2010


In 2010 Commerzbank made major progress in terms of its strategy and operations. The Group has returned to profitability one year earlier than expected with a net profit (IFRS) of EUR 1.4 billion. This corresponds to an increase of EUR 6.0 billion compared to 2009. "We were able to show a profit in all four quarters and have further reduced our risks. We continue to make progress with our strategy 'Roadmap 2012'. We have also largely completed the integration of Dresdner Bank," comments Martin Blessing, Chairman of the Board of Managing Directors in the Annual Report 2010, which was presented today.

On the financial statements of Commerzbank AG prepared in accordance with German GAAP a net loss of EUR 1.2 billion for the 2010 business year was accrued. The major reason for this was a write-down of the Eurohypo book value on the financial statements of Commerzbank AG to German GAAP amounting to EUR 1.9 billion. Due to the net loss for the year on the financial statements of Commerzbank AG according to German GAAP payouts on profit-related equity instruments are not possible. This also applies to the silent participations of the Financial Market Stabilization Fund (SoFFin).

Against this background the basic salary for 2010 of the members of the Board of Managing Directors of Commerzbank was limited to EUR 500,000 each - as it had been in 2008 and 2009. No variable remuneration was paid. The total monetary remuneration of the members of the Board of Managing Directors of Commerzbank increased year-on-year by some EUR 360,000, to just under EUR 4.6 million. The main reason for this was the expansion of the Board of Managing Directors as of June 1, 2009. In the framework of its new remuneration system introduced in 2010 Commerzbank has considerably reduced the proportion of short-term variable remuneration for the whole bank. In return, the fixed basic salary and the long-term remuneration elements were increased (pages 51 to 61).

Overview of the segments

In the year under review the core bank (incl. Others & Consolidation) attained an operating profit of EUR 2.0 billion. In the Private Customers segment the new Commerzbank brand was introduced throughout Germany in 2010. The Bank will be represented in Germany with some 1,200 branches in the future. In 2010 the operating profit declined over 2009 - in particular due to the effects of the integration - and was EUR 48 million (pages 93 to 101). With an operating result of EUR 1.6 billion Mittelstandsbank attained its best result ever since its foundation and was able to further improve its leading position. In the future it intends to increase its market share, and in particular with smaller companies (pages 103 to 111). The Central & Eastern Europe segment achieved a turnaround in 2010. Thanks to successful restructuring programs and the economic recovery in the markets of Central and Eastern Europe, a positive operating profit of EUR 53 million was attained (pages 113 to 121). Corporates & Markets made a major contribution to the Group's net profit with an operating profit of EUR 786 million in the year under review. Above all, in the Corporate Finance area the number of transactions and mandates awarded continually increased (pages 123 to 129).

In the other areas risks and assets were further reduced and portfolios optimized. Thus, the sovereign exposure towards the countries Portugal, Spain, Italy, Ireland and Greece - predominantly allocated to the Public Finance area - decreased by EUR 3.1 billion to EUR 16.8 billion compared to the end of 2009 (page 175). Nevertheless, the impact of the financial and economic crisis continued to be felt in the Asset Based Finance segment in 2010. The operating profit was EUR minus 1.3 billion (pages 131 to 137). The Portfolio Restructuring Unit closed with a clearly positive operating profit of EUR 675 million thanks to the recurrent interest of investors and increasing liquidity in the areas Structured Credit and Credit Trading. Further advances were also made in portfolio reduction (pages 138 to 140).


Outlook

In the current 2011 business year visible improvements in operating results are to be attained in all areas. Despite ongoing difficulties on the markets in some countries of the euro zone, in 2011 Commerzbank is aiming for an operating profit according to IFRS that is significantly higher than posted in 2010. In 2012 the operating profit in the Group is expected to be more than EUR four billion assuming continued stable market conditions and before regulatory effects. The integration will also be implemented as planned; Martin Blessing on this in the Annual Report 2010: "Following the customer and product data migration, the final stage of the integration process will be the merger, from mid 2011, of some 400 pairs of branches. This process is to be completed by 2012" (pages 20 to 25 and 159, 160).


Press contact:
Simone Fuchs +49 69 136 44910
Maximilian Bicker +49 69 136 28696


In the internet the Annual Report 2010 is to be found here


*****


About Commerzbank
Commerzbank is a leading bank for private and corporate customers in Germany. With the segments Private Clients, Mittelstandsbank, Corporates & Markets, Central & Eastern Europe as well as Asset Based Finance, the Bank offers its customers an attractive product portfolio, and is a strong partner for the export-oriented SME sector in Germany and worldwide. With a future total of some 1,200 branches, Commerzbank has one of the densest networks of branches among German private banks. It has above 60 sites in more than 50 countries and serves approximately 14 million private clients as well as one million business and corporate clients worldwide. In 2010 it posted gross revenues of EUR 12.7 billion with some 59,000 employees.


*****


Disclaimer
This release contains statements concerning the expected future business of Commerzbank, efficiency gains and expected synergies, expected growth prospects and other opportunities for an increase in value of the company as well as expected future net income per share, restructuring costs and other financial developments and information. These forward-looking statements are based on management¿s current expectations, estimates and projections. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Commerzbank has no obligation to periodically update or release any revisions to the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.

Contact

kontakt

pressestelle@ commerzbank.com

Phone:
+49(0)69-136-22830

Top