Investors Day. Commerzbank s strategic focus

Transcription

1 Investors Day Commerzbank s strategic focus Klaus-Peter Müller Chairman of the Board of Managing Directors Frankfurt, September 4, 2002

2 Investors Day September 4, Smaller and younger top management team Board of Managing Directors reduced from former maximum of 12 to 8 members. At the same time, considerable rejuvenation. 9 out of 25 departmental heads replaced over past two years This rejuvenation will continue Strategic realignments can be effected more quickly and more rigorously by new and younger management team

3 Cost/income ratio: on the mend before provisioning, in per cent Investors Day September 4, Target = 65% * 2001 H *2000: without proceeds from comdirect bank AG

4 Investors Day September 4, Measures to improve efficiency ❶ ❷ ❸ ❹ CB 21 program to boost earnings: adjusted to more realistic targets Cost-cutting offensive: operating expenses back to 2000 level and below Turnaround program: competitive cost structure and distribution power Sharper Commerzbank profile: concentration on core target groups and utilization of new strategic scope

5 Investors Day September 4, New positioning in corporate banking Regional board members: provide support for sales and create link between head office and branch network Branch managers: - relieved of administrative functions - concentration on sales Credit centres and separation of functions (MaK): credit specialists bear full responsibility for credits

6 Investors Day September 4, Average margin in German corporate lending widening considerably Margin in lending 1.25% 1.23% 1.20% 1.15% 1.10% 1.14% 1.16% 1.05% 1.03% 1.03% 1.05% 1.07% 1.00% 0.95% 1.01% 1.01% 0.99% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q

7 Investors Day September 4, Meshing of investment and corporate banking Corporate Banking department 4 centres for financial engineering + Derivatives groups at main branches Securities department Special support unit + Other investmentbanking units

8 Investors Day September 4, Developments in asset management Open architecture meeting with positive response from customers Plan to sell Jupiter International Group abandoned due to market conditions Montgomery Asset Management will probably be sold in the final quarter of 2002

9 Investors Day September 4, Merger of German asset-management activities ADIG Retail funds Commerzinvest Discretionary mandates, non-publicly-offered funds CAM Research and portfolio management Head-office functions COMINVEST ADIG Commerzinvest Sustainable profit effects by cost reductions of about 20m p.a. More aggressive approach to sales and distribution

10 Retail banking: optimization of sales productivity Investors Day September 4, ,000 1,500 1, Retail customers per adviser Affluent customers per adviser Commerzbank German average Commerzbank (target after turnaround) Despite cost-cutting offensive, over-capacity of 900 full-time staff

11 Investors Day September 4, Further measures in retail banking Commerzbank will remain in retail banking ensures minimum capacity utilization Nationwide presence guaranteed by 727 branches Focus on business customers we cover their greater counselling needs exceptionally well

12 Investors Day September 4, New staff department To better assign charges for overhead costs, to more tightly control individual segments, to enable the management to react effectively, we have established a new Financial Controlling department at head office

13 Investors Day September 4, Critical review of investments portfolio Current result on investments portfolio negative (approx. 90m per quarter) This burden will be reduced through the disposal of non-strategic shareholdings

14 Investors Day September 4, Commerzbank s restructuring program is having positive impact ❶ Positive operating result in Q ❷ ❸ ❹ RoE (after taxes and provisioning) of 10% in corporate business worldwide Cost/income ratio down to 86% in retail area After reduction of expenses, priority given to boosting revenues We are systematically pursuing our course: to become a leaner, more flexible and modern service institution

15 For more information, please contact: Commerzbank Investor Relations Tel. +49 (69) ir@commerzbank.com