Commerzbank Group
Inter m report
report
Interim
of
as of
March 31, 2000
September
30, 2000
Interim report as of Sept. 30, 2000
Key figures of the Commerzbank Group
Income statement
1.1.-30.9.2000
1.1.-30.9.1999
(e m)
2,416
1,011
Pre-tax profit (e m)
without proceeds from comdirect bank AG
Pre-tax profit
1,380
1,011
Net profit (e m)
1,438
628
Earnings per share (e)
2.80
1.27
Earnings per share (e)
without proceeds from comdirect bank AG
1.65
1.27
After-tax return on equity* (%)
17.9
8.6
After-tax return on equity* (%)
without proceeds from comdirect bank AG
10.6
8.6
Cost/income ratio before provisioning (%)
57.8
68.4
Cost/income ratio before provisioning (%)
without proceeds from comdirect bank AG
68.4
68.4
30.9.2000
31.12.1999
*) annualized
Balance sheet
Balance-sheet total (e bn)
428.4
372.0
(e bn)
23.5
20.1
BIS capital ratios
Liable funds
30.9.2000
31.12.1999
Core capital ratio (%)
6.0
6.3
Equity capital ratio (%)
9.9
9.7
Commerzbank share
30.9.2000
30.9.1999
524.01
496.79
Share price (e, 1.1.-30.9.)
high
low
47.49
31.26
36.38
24.04
Market capitalization (e bn)
17.9
17.9
30.9.2000
30.9.1999
31,904
30,246
4,478
4,307
36,382
34,553
30.9.2000
30.9.1999
Moody’s Investors Service, New York
AA3
AA3
Standard & Poor’s, New York
AA-
AA-
A+
AA-
Number of shares outstanding (million units)
Staff
in Germany
abroad
Total
Long-term rating
VKI02051
Fitch IBCA, London
Headquarters
Kaiserplatz, Frankfurt am Main
Postal address: 60261 Frankfurt
Telephone (+49 69) 136-20
Telefax (+49 69) 285389
Internet: http://www.commerzbank.com
e-mail: [email protected]
2
Commerzbank AG
Investor Relations
Telephone (+49 69) 136-22338
Telefax (+49 69) 136-29492
e-mail: ir @commerzbank.com
The figures contained in this report are unaudited.
Interim report as of Sept. 30, 2000
However, the envisaged takeover of
To our shareholders
CC-Bank from Banco Santander Central
Since the summer, Commerzbank has
Hispano (BSCH) did not materialize.
made good progress in strategic terms.
Given the inability to agree upon a
Our cooperation with Italy's Generali
price, the two sides decided not to
insurance group and its German sub-
pursue the project any further. All
sidiaries has taken on a new dimen-
the same, both partner banks intend
sion. This ”quantum leap” in the his-
to maintain their good and close
tory of bancassurance was made pos-
cooperation.
sible by the agreement we reached
with Generali to raise its interest in
Strategic decisions
our Bank to almost 10%.
But our efforts have not only focused
Previously, our bancassurance coope-
on the topic of bancassurance. Our
ration included the usual strict clientele
strategy as a whole has been sub-
Liable funds
protection. Now we are sharing our
jected to critical scrutiny; we have
Commerzbank Group, September 30, 2000
customer bases with one another. This
pinpointed what we must change,
means that we are setting up so-called
update or develop further in view of
banking centres at roughly 250 insur-
the challenges posed by the markets.
ance agencies. Through these units,
we will offer banking products to the
First and foremost, we saw a need
Aachener und Münchener insurance
to revise our company organization
group's 13.5 million policyholders. As
structure. We believe that a really
a result, we expect to gain at least a
systematic customer-group orientation
million new customers over the next
is the most promising option for the
two to three years.
future. For this reason, we are bundling
h23.5bn
together our operative activities into
In return, the AM Group will deploy
just two large corporate divisions. The
up to 650 insurance and home-loan
one division comprises the retail bank-
savings specialists throughout our
ing and asset management areas. In
branch network. At these bancassur-
this way, we are underlining the shift
ance centres, Commerzbank's four
in emphasis towards the management
million existing customers will receive
and development of assets nationally
qualified advice on life, health and
and internationally. The second division
Minority interests
property insurance and on home-loan
combines our business with corporate
Subordinated liabilities
savings plans.
customers and institutions, as well
Profit-sharing certificates outstanding
Subscribed capital
Capital reserve
Retained earnings
Consolidated profit
as investment banking. We are thus
This cooperation will bring us dynamic
creating a fully integrated corporate
expansion in profit contributions. We
client and investment bank. Each of
forecast almost an extra
2005.
e140m
in
these changes goes hand in hand with
a focus on our core competencies.
3
Interim report as of Sept. 30, 2000
New orientation in domestic
In corporate customer business, we
branch banking
will reinforce our decentralized structures and, unlike many of our competi-
In our domestic branch network as
tors, we will intensify the close contact
well, we are creating a new structure
with our clients, especially small and
which will enable us to respond to
medium-sized companies. Efficiency
the changed market conditions and
and on-the-spot presence are our hall-
the greater demands made by our
mark.
customers. We were guided in this
project by two premises: Commerz-
Greater use of the internet and call
bank will remain a bank with a nation-
centres will also make it possible to
wide branch network and, at the same
reduce the number of branches.
time, it will become one of the leading
Overall, we assume that our network
Parent Bank’s shareholdings
in the non-financial sector
banks in e-commerce.
can be trimmed by up to 200 offices,
over 5% of capital, as of September 30, 2000
The most striking feature of the new
is to retain as many of our staff as
structure in retail banking is the diffe-
possible, though not necessarily in
rential treatment accorded to conurba-
their existing positions.
Alno AG
Pfullendorf
29.4%
mainly in conurbations. Our goal here
tions and rural areas. In conurbations,
Buderus AG
Wetzlar
10.0%
we intend to merge branches within
Encouraging business performance
easy reach of one another. At the same
for Commerzbank Group
Heidelberger Druckmaschinen AG
Heidelberg
9.9%1)
time, business involving high net worth
individuals is being concentrated at
We can be very satisfied with the
Linde AG
Wiesbaden
so-called i-centres. In this way, we can
Commerzbank Group's business per-
offer customers higher-calibre advice.
formance in the year so far. The bal-
The i-centres will also incorporate
ance-sheet total expanded to e428bn,
real-estate centres. This will mean that
15% or e56bn more than at end-1999.
other branch personnel no longer have
The third quarter alone produced
to deal with this specialist topic. Secu-
growth of just over e20bn.
MAN AG
Munich
PopNet Internet AG
Hamburg
10.0%
6.5% )
2
13.9%2)
rities business, which is becoming ever
Sachsenring Automobiltechnik AG
Zwickau
10.0%2)
1) held directly and indirectly
2) held indirectly
more important, will benefit as a result.
The Bank's equity rose by altogether
12% to e12.5bn. This includes the
Our experience over the past few
capital increase for cash taken up
years has shown that, in rural areas,
by Generali. By contrast, the capital
it is impossible to strengthen all our
increase against contribution in kind
branches to make them into stable
– Generali transferred to us 30 million
units in the long term with a suffi-
BSCH shares – did not become effec-
ciently large base of regular customers
tive until October. All told, the agree-
and adequate profit contributions.
ment with Generali provided us with
However, by improving the quality of
practically one billion euros of new
advice that is provided, we will main-
capital.
tain as many branches as possible.
4
Interim report as of Sept. 30, 2000
In the income statement, the positive
Expansion of workforce remains
development of our operative earnings
strong
continued. Net interest income rose
perceptibly from quarter to quarter;
Operating expenses rose by altogether
all in all, it advanced by 8% in the first
21% to e3.85bn. Personnel costs
nine months to e2.65bn. For risk pro-
registered the highest growth rate
visioning, we have set aside an amount
here, climbing 25% to e2.2bn. Today,
of
e397m
so far this year. Net interest
we employ a good 1,800 more staff
income after provisioning climbed
than a year ago. In addition to the re-
13%, therefore, to e2.25bn.
cruitment of highly-qualified specialists
in the areas of investment banking and
We continued to register excellent
information technology, these figures
results for net commission income.
also reflect the steady expansion at
By end-September, it had expanded
comdirect bank and the first-time
by 37% to e2.1bn. Half of this amount
inclusion of the ADIG group.
derived from securities transactions
on behalf of customers. The highest
The increase in other expenses also
Equity and
market capitalization
growth rate was achieved in asset
lies within our projections. Although
Commerzbank Group, h bn
management, where earnings were
they had advanced by 15% after nine
90% stronger, totalling e455m.
months, they were only a little more
24
than 8% higher in a comparison with
Our trading profit reached e751m.
9/12 of last year, putting them in the
But while it was 22% ahead of the
single-digit growth range that had
January-September period of 1999, it
been sought. The situation is similar
is declining from quarter to quarter,
as regards write-downs on fixed as-
reflecting the persistent weakness of
sets, which rose 17% to e323m. Here
the stock market. Nonetheless, trading
as well, a 9/12 comparison shows an
in equities and equity derivatives made
increase of merely 8%.
17.9
16
12.5
8
by far the strongest profit contribution
– at e533m, it was more than twice as
The other operating result includes
high as in the corresponding period a
non-recurring income of e1,036m
year earlier. Trading in interest-rate
from the capital increase and IPO of
equity
instruments yielded e162m and our
comdirect bank.
market capitalization
1997
business involving currency instruments produced e56m.
Overall, we achieved a pre-tax profit
of e2.42bn for the first three quarters
The result on financial investments
of the current year, 139% more than
was 75% higher by end-September at
during the same period of 1999. At
e164m.
the same time, the taxes paid almost
The largest part of this stems
from the third quarter, when CBG
tripled, one major factor being the
Commerz Beteiligungsgesellschaft
taxation of the proceeds from the
registered proceeds of e31m from its
comdirect IPO.
sales.
5
1998
1999 30.9.2000
Interim report as of Sept. 30, 2000
After the profit attributable to minority
ratio of 57.8%. Adjusted for the
interests has been deducted, a net
earnings from the comdirect IPO,
profit of
e1.44bn
is left, 129% more
than a year ago. The third quarter ac-
the figures are 10.6% and 68.4%,
respectively.
counted for e343m, as against e131m
in the corresponding year-ago period.
Even though activity on the stock exchange remains subdued, we expect
Based on the figures as of Septem-
a good result for the year as a whole.
ber 30, the Bank had an after-tax return
It will substantially exceed our bud-
on equity of 17.9% and a cost/income
geted figures.
Frankfurt am Main, November 2000
The Board of Managing Directors
Declaration of compliance with IAS
The present interim report pursuant to IAS 34 for the Commerzbank Group as of
September 30, 2000, was drawn up in accordance with the IASs published by the
International Accounting Standards Committee (IASC) and with their interpretation
by the Standing Interpretations Committee (SIC). On principle, the same accounting
and valuation methods as for the 1999 consolidated financial statements were employed
in preparing this interim report and calculating the comparable year-earlier figures;
the only change is that leased equipment has now been shown under fixed assets,
with the year-ago figures being duly adjusted.
6
Interim report as of Sept. 30, 2000
Consolidated income statement
1.1.-30.9.2000
e
Notes
1.1.-30.9.1999
e
m
Change
m
%
Net interest income
(1)
2,646
2,447
8.1
Provision for possible loan losses
(2)
–397
–460
–13.7
Net interest income after provisioning
2,249
1,987
13.2
Net commission income
(3)
2,075
1,511
37.3
Trading profit
(4)
751
614
22.3
Result on financial investments
(5)
164
94
74.5
5,239
4,206
24.6
20.8
Income
Operating expenses
(6)
3,853
3,190
Other operating result
(7)
1,030
–5
•
2,416
1,011
139.0
Profit from ordinary activities
Extraordinary profit
–
–
–
2,416
1,011
139.0
Taxes on income
931
332
180.4
After-tax profit
1,485
679
118.7
–47
–51
–7.8
1,438
628
129.0
Pre-tax profit
Profit/loss attributable
to minority interests
Net profit
In order to calculate basic earnings per share, the net profit of e1,438m (30.9.1999: e628m)
for the period under review is divided by the average number of shares outstanding during this
period of 513.0m (30.9.1999: 496.28m).
e
1.1.-30.9.2000
1.1.-30.9.1999
Basic earnings per share
2.80
1.27
Basic earnings per share
without proceeds from comdirect bank AG
1.65
1.27
As of September 30, 2000, no exercisable conversion or option rights were outstanding. Diluted
earnings per share, therefore, correspond to basic earnings per share.
Consolidated income statement (quarter-on-quarter comparison)
e
m
Net interest income
Provision for possible loan losses
3rd quarter 2nd quarter 1st quarter 4th quarter 3rd quarter 2nd quarter 1st quarter
2000
1999
950
939
757
760
754
773
920
–141
–115
–141
–229
–153
–154
–153
Net interest income after provisioning
809
824
616
531
601
619
767
Net commission income
652
672
751
682
554
501
456
Trading profit
151
240
360
–22
223
203
188
Result on financial investments
93
4
67
501
–8
56
46
Income
1,705
1,740
1,794
1,692
1,370
1,379
1,457
Operating expenses
987
1,383
1,272
1,198
1,286
1,150
1,053
Other operating result
196
832
2
–46
–5
0
0
Profit from ordinary activities
518
1,300
598
360
215
326
470
Extraordinary profit
–
–
–
–
–
–
–
Pre-tax profit
518
1,300
598
360
215
326
470
Taxes on income
157
557
217
64
66
153
113
After-tax profit
361
743
381
296
149
173
357
Profit/loss attributable
to minority interests
–18
–12
–17
–13
–18
–16
–17
Net profit
343
731
364
283
131
157
340
7
Interim report as of Sept. 30, 2000
Consolidated balance sheet
Assets
30.9.2000
Notes
e
e
Change
m
%
4,534
8,952
–49.4
(9; 11)
66,239
50,040
32.4
(10; 11)
219,839
203,531
8.0
Provision for possible loan losses
(12)
–5,740
–5,376
6.8
Assets held for dealing purposes
(13)
61,145
45,058
35.7
Financial investments
(14)
70,303
62,029
13.3
Intangible assets
(15)
1,335
582
129.4
Fixed assets
(16)
3,345
3,000
11.5
Other assets
(17)
7,388
4,224
74.9
428,388
372,040
15.1
30.9.2000
31.12.1999
Change
Cash reserve
Claims on banks
Claims on customers
Total
Liabilities and equity
Notes
e
m
31.12.1999
m
%
Liabilities to banks
(18)
99,761
72,661
37.3
Liabilities to customers
(19)
100,027
91,042
9.9
Securitized liabilities
(20)
172,466
156,967
9.9
26,443
24,305
8.8
Liabilities from dealing activities
m
e
Provisions
(21)
2,293
2,530
–9.4
Other liabilities
(22)
3,919
4,432
–11.6
Subordinated capital
(23)
10,007
8,277
20.9
972
685
41.9
12,500
1,358
5,721
3,983
–
11,141
1,335
5,390
4,005
411
12.2
1.7
6.1
–0.5
1,438
–
•
428,388
372,040
15.1
Minority interests
Equity of Commerzbank Group
Subscribed capital
Capital reserve
Retained earnings
1999 net profit*
Net profit 1.1.-30.9.2000
Total
*) after allocation to retained earnings
8
•
Interim report as of Sept. 30, 2000
Statement of changes in equity
The changes in the Commerzbank Group's equity were as follows in the respective first three
quarters:
e
m
2000
1999
11,141
10,060
23
48
0
24
4
22
–25
–2
331
623
0
–292
–5
42
–22
–25
–22
–22
45
45
d) Dividend paid by Parent Bank
–411
–380
e) Profit (1.1.-30.9.)
1,438
628
12,500
10,372
2000
1999
Cash and cash equivalents as of 1.1.
8,952
6,734
Net cash provided by operating activities
1,296
12,784
–7,650
–13,706
1,941
1,331
–4,413
409
–5
8
4,534
7,151
Equity as of 1.1.
Changes in the current financial year
a) Subscribed capital
Capital increases
Adjustment from conversion of share capital into euros
Changes in treasury shares
b) Capital reserve
Capital increases
Adjustment from conversion of share capital into euros
Changes in treasury shares
c) Retained earnings
Differences arising from currency translation and other changes
Equity as of 30.9.
Cash flow statement of the Commerzbank Group
em
Net cash used by investing activities
Net cash provided by financing activities
Total cash flow
Effects of exchange-rate changes
Cash and cash equivalents as of 30.9.
The chart shows the cash flow within the Commerzbank Group. Cash and cash equivalents
are represented by the cash reserve item, which is made up of cash on hand, balances with
central banks, as well as debt issued by public-sector borrowers and bills of exchange discountable at central banks.
9
Notes
Notes to the
income statement
(1) Net interest income
1.1.-30.9.2000
em
1.1.-30.9.1999
em
Percentage
change
Interest income from lending and money-market transactions*
11,046
9,365
17.9
Interest income from securities held as financial investments
2,015
1,592
26.6
92
63
46.0
Current result from investments, investments in
associated companies and holdings in subsidiaries
128
62
106.5
Current income from leasing
211
150
40.7
Interest received
13,492
11,232
20.1
Interest paid for subordinated capital
and other interest paid*
10,639
8,635
23.2
207
150
38.0
10,846
8,785
23.5
2,646
2,447
8.1
Dividend payments from securities held as financial investments
Current expenses from leasing
Interest paid
Total
*) Whereas the interest paid and received under interest-swap agreements, concluded in order to secure balance-sheet
items, was shown gross last year, it now appears net, and the corresponding year-ago figure has been adjusted
accordingly.
(2) Provision for possible loan losses
1.1.-30.9.2000
em
1.1.-30.9.1999
em
Percentage
change
Allocations
–758
–845
–10.3
Write-backs
373
392
–4.8
Balance of direct write-downs and
amounts received on written-down claims
–12
–7
71.4
–397
–460
–13.7
1.1.-30.9.2000
em
1.1.-30.9.1999
em
Percentage
change
1,023
649
57.6
285
265
7.5
90
88
2.3
Asset management
455
239
90.4
Other net commission income
222
270
–17.8
2,075
1,511
37.3
Total
(3) Net commission income
Securities transactions
Foreign commercial business and payment transactions
Guarantees
Total
Net commission income includes e136m (e90m in 1999) of commissions paid.
10
Notes
(4) Trading profit
The trading profit is calculated using the mark-to-market method. For listed products, the data
used are based on market prices. For non-listed products, the respective values are worked out
with the aid of the present-value method or through recourse to suitable option-price models.
1.1.-30.9.2000
em
Securities department*
1.1.-30.9.1999
em
Percentage
change
683
417
63.8
80
103
–22.3
Other
–12
94
•
Total
751
614
22.3
1.1.-30.9.2000
em
1.1.-30.9.1999
em
Percentage
change
30
8
•
Result from securities held as financial investments
134
86
55.8
Total
164
94
74.5
1.1.-30.9.2000
em
1.1.-30.9.1999
em
Percentage
change
Personnel costs
2,170
1,731
25.4
Other expenses
1,360
1,183
15.0
323
276
17.0
3,853
3,190
20.8
1.1.-30.9.2000
em
1.1.-30.9.1999
em
Percentage
change
Treasury and Financial Products department
*) shown in the previous year as the Global Bonds and Global Equities departments
(5) Result on financial investments
Disposal proceeds and valuation of investments,
investments in associated companies and
holdings in subsidiaries
(6) Operating expenses
Current depreciation on fixed assets and
other intangible assets
Total
(7) Other operating result
Other operating income
Other operating expenses*
Other taxes
Total
1,322
222
•
281
217
29.5
11
10
10.0
1,030
–5
•
*) including write-downs on goodwill
Other operating income includes proceeds of e1,036m, generated in connection with the IPO
and the capital increase of comdirect bank AG.
11
Notes to the
income statement
Notes
Notes to the
income statement
(8) Segment reporting
Segment reporting represents the corporate divisions in their restructured form as of the year
2000. A detailed description of the individual areas of business can be found on page 80 of our
1999 Annual Report.
1.1.-30.9.2000
e
m
Retail
Corporate
Invest- Mortgage Group ManBanking Banking and
ment
Banking agement/
and
Institutions Banking
others/conReal Estate
solidation
Total
Net interest income
843
1,215
115
421
52
2,646
Provision for possible loan losses
–98
–254
–6
–39
0
–397
Net interest income after provision
for possible loan losses
745
961
109
382
52
2,249
Net commission income
995
460
684
–15
–49
2,075
0
38
791
0
–78
751
Trading profit
Result on financial investments
Operating expenses
Other operating result
Profit from ordinary activities
Extraordinary profit
0
43
21
–11
111
164
1,406
836
1,287
112
212
3,853
898
3
–31
7
153
1,030
1,232
669
287
251
–23
2,416
–
–
–
–
–
–
1,232
669
287
251
–23
2,416
Taxes on income
508
281
111
108
–77
931
After-tax profit
724
388
176
143
54
1,485
Pre-tax profit
Profit/loss attributable
to minority interests
Net profit
Profit contribution from
business passed on
Results based on
internal accounting
Average equity tied up
–8
0
–11
–28
0
–47
716
388
165
115
54
1,438
8
27
188
0
–223
0
724
415
353
115
–169
1,438
1,659
5,324
2,046
987
675
10,691
Return on equity *
58.2%
10.4%
23.0%
15.5%
•
17.9%
Cost/income ratio
51.4%
47.5%
81.5%
27.9%
•
57.8%
Staff (average no.)
14,818
6,961
3,280
1,029
9,576
35,664
1.1.-30.9.1999
e
m
Pre-tax profit
Retail
Corporate
Invest- Mortgage Group ManBanking Banking and
ment
Banking agement/
and
Institutions Banking
others/conReal Estate
solidation
154
582
573
331
–629
Total
1,011
Taxes on income
46
155
157
99
–125
332
After-tax profit
108
427
416
232
–504
679
–1
0
–13
–37
0
–51
107
427
403
195
–504
628
4
13
129
0
–146
0
111
440
532
195
–650
628
Profit/loss attributable
to minority interests
Net profit
Profit contribution from
business passed on
Results based on
internal accounting
Average equity tied up
1,691
5,067
2,017
936
13
9,724
Return on equity *
8.8%
11.6%
35.2%
27.8%
•
8.6%
Cost/income ratio
80.9%
46.6%
61.9%
21.6%
•
68.4%
*) annualized
12
Notes
The following breakdown shows the net income and expense items, by geographical market.
Assignment of the figures was made according to the seat of the branches or consolidated
companies.
1.1.-30.9.2000
e
Germany
m
Europe America
(excluding
Germany)
Asia
Africa
Consolidation
Total
Net interest income
after provision for
possible loan losses
1,790
259
169
45
–3
–11
2,249
Net commission income
1,438
435
169
82
3
–52
2,075
588
113
32
31
0
–13
751
Trading profit
Result on financial investments
134
29
1
0
0
0
164
Operating expenses
2,973
581
232
116
4
–53
3,853
Other operating result
1,002
11
–6
0
0
23
1,030
Profit from
ordinary activities
1,979
266
133
42
–4
0
2,416
Asia
Africa
1.1.-30.9.1999
e
Germany
m
Europe America
(excluding
Germany)
Consolidation
Total
Net interest income
after provision for
possible loan losses
1,511
254
131
70
7
14
1,987
Net commission income
1,007
383
102
34
2
–17
1,511
Trading profit
554
12
28
18
2
0
614
Result on financial investments
–31
93
5
27
0
0
94
2,485
440
155
109
4
–3
3,190
4
1
–9
–1
0
0
–5
560
303
102
39
7
0
1,011
Operating expenses
Other operating result
Profit from
ordinary activities
(9) Claims on banks
30.9.2000
em
Notes to the
income statement
31.12.1999
em
Percentage
change
due on demand
13,149
9,130
44.0
other claims
with a remaining lifetime of
less than three months
more than three months, but less than one year
more than one year, but less than five years
more than five years
53,090
40,910
29.8
27,831
7,145
9,538
8,576
20,470
3,917
9,388
7,135
36.0
82.4
1.6
20.2
Total
66,239
50,040
32.4
of which: reverse repos
13,654
6,717
103.3
13
Notes to the
balance sheet
Notes
Notes to the
balance sheet
(10) Claims on customers
30.9.2000
em
31.12.1999
em
Percentage
change
15,037
17,333
–13.2
other claims
with a remaining lifetime of
less than three months
more than three months, but less than one year
more than one year, but less than five years
more than five years
204,802
186,198
10.0
50,029
15,006
48,287
91,480
35,245
17,199
41,630
92,124
41.9
–12.8
16.0
–0.7
Total
219,839
203,531
8.0
6,145
5,184
18.5
30.9.2000
em
31.12.1999
em
Percentage
change
25,660
24,017
6.8
with indefinite remaining lifetime
of which: reverse repos
(11) Total lending
Loans to banks
Claims on customers
219,839
203,531
8.0
Bills discounted
763
879
–13.2
Leasing business
990
735
34.7
247,252
229,162
7.9
2000
em
1999
em
Percentage
change
Total
(12) Provision for possible loan losses
Development
As of January 1
5,567
5,003
11.3
Allocations
758
845
–10.3
Deductions
Utilized
Written back
427
54
373
640
248
392
–33.3
–78.2
–4.8
20
–6
•
5,918
5,202
13.8
Changes in foreign-exchange rates
As of September 30
With direct write-downs and amounts received on written-down claims taken into consideration, the allocations and write-backs have given rise to provision of e397m for lending risks in
the income statement (see Note 2).
Level
30.9.2000
em
31.12.1999
em
Percentage
change
5,144
4,798
7.2
Country risks
218
224
–2.7
General provision
378
354
6.8
5,740
5,376
6.8
178
191
–6.8
5,918
5,567
6.3
Counterparty risks
Provisioning for balance-sheet items
Provisions for lending risks
Total
14
Notes
(13) Assets held for dealing purposes
Bonds, notes and other fixed-income securities
Promissory notes
30.9.2000
em
31.12.1999
em
Percentage
change
20,180
13,510
49.4
699
1,506
–53.6
Shares and other variable-yield securities
13,741
5,809
136.5
Positive market values from financial derivative instruments
26,525
24,233
9.5
Total
61,145
45,058
35.7
The positive market values of financial derivatives represent the value at which derivative
instruments may be sold to third parties.
(14) Financial investments
30.9.2000
em
31.12.1999
em
Percentage
change
60,426
53,323
13.3
Shares and other variable-yield securities
3,655
3,779
–3.3
Investments
5,085
3,774
34.7
Investments in associated companies
1,004
1,003
0.1
133
150
–11.3
70,303
62,029
13.3
30.9.2000
em
31.12.1999
em
Percentage
change
1,274
539
136.4
61
43
41.9
1,335
582
129.4
30.9.2000
em
31.12.1999
em
Percentage
change
670
698
–4.0
1,685
1,567
7.5
Bonds, notes and other fixed-income securities
Holdings in subsidiaries
Total
(15) Intangible assets
Goodwill
Other intangible assets
Total
(16) Fixed assets
Land and buildings
Office furniture and equipment
Leased equipment*
Total
990
735
34.7
3,345
3,000
11.5
30.9.2000
em
31.12.1999
em
Percentage
change
2,358
1,556
51.5
*) shown under Other assets in the 1999 financial year
(17) Other assets
Deferred items
Other assets*
5,030
2,668
88.5
Total
7,388
4,224
74.9
*) including tax assets
The Group's deferred taxes reflect as of September 30, 2000, the resolved reduction in corporation tax from 40% for retained and 30% for distributed earnings to a uniform 25% for the
Group's domestic incorporated companies, as a result of the tax reform (StSenkG). The relevant corporation-tax rate for these companies is thus 39% overall (1999: 52%).
15
Notes to the
balance sheet
Notes
Notes to the
balance sheet
(18) Liabilities to banks
30.9.2000
em
31.12.1999
em
Percentage
change
due on demand
26,705
12,879
107.4
with agreed remaining lifetime of
less than three months
more than three months, but less than one year
more than one year, but less than five years
more than five years
73,056
42,515
16,881
4,443
9,217
59,782
41,032
7,855
3,801
7,094
22.2
3.6
114.9
16.9
29.9
Total
99,761
72,661
37.3
of which: repos
11,078
6,028
83.8
30.9.2000
em
31.12.1999
em
Percentage
change
9,394
10,234
–8.2
8,452
942
9,157
1,077
–7.7
–12.5
90,633
40,977
49,656
29,049
2,594
6,995
11,018
80,808
26,358
54,450
34,646
3,983
5,489
10,332
12.2
55.5
–8.8
–16.2
–34.9
27.4
6.6
100,027
91,042
9.9
4,196
5,016
–16.3
30.9.2000
em
31.12.1999
em
Percentage
change
142,037
122,912
15.6
29,930
33,789
–11.4
(19) Liabilities to customers
Savings deposits
with agreed period of notice of
three months
more than three months
Other liabilities to customers
due on demand
with agreed remaining lifetime of
less than three months
more than three months, but less than one year
more than one year, but less than five years
more than five years
Total
of which: repos
(20) Securitized liabilities
Bonds and notes outstanding
Money-market instruments outstanding
Own acceptances and promissory notes outstanding
499
266
87.6
172,466
156,967
9.9
30.9.2000
em
31.12.1999
em
Percentage
change
66
135
–51.1
with agreed remaining lifetime of
less than three months
more than three months, but less than one year
more than one year, but less than five years
more than five years
172,400
22,668
45,830
69,230
34,672
156,832
36,448
27,963
60,365
32,056
9.9
–37.8
63.9
14.7
8.2
Total
172,466
156,967
9.9
30.9.2000
em
31.12.1999
em
Percentage
change
1,466
1,360
7.8
Provisions for lending risks
178
191
–6.8
Other provisions
649
979
–33.7
2,293
2,530
–9.4
Total
Remaining lifetimes
due on demand
(21) Provisions
Provisions for pensions and similar commitments
Total
16
Notes
(22) Other liabilities
30.9.2000
em
31.12.1999
em
Percentage
change
2,322
2,099
10.6
23
22
4.5
Other liabilities*
1,574
2,311
–31.9
Total
3,919
4,432
–11.6
30.9.2000
em
31.12.1999
em
Percentage
change
7,463
5,857
27.4
2,544
2,420
5.1
10,007
8,277
20.9
Deferred items
Foundations
Notes to the
balance sheet
*) including income-tax liabilities
See also comment on Note (17)
(23) Subordinated capital
Subordinated liabilities
Profit-sharing rights outstanding
Total
(24) Risk-weighted assets and capital ratios
as defined by the Basle capital adequacy recommendation (BIS)
e
m
Risk-weighted assets
Capital charge for market risks
Items to be risk-weighted
Other notes
30.9.2000
31.12.1999
186,087
167,583
21,875
20,126
207,962
187,709
11,229
10,599
8,304
6,851
19,533
17,450
Elements of equity for supervision purposes
Core capital
Supplementary capital
Total capital
Tier III capital
Eligible own funds
1,091
695
20,624
18,145
Capital ratios for supervision purposes in %
Core capital ratio
6.0
6.3
Equity capital ratio
9.9
9.7
30.9.2000
31.12.1999
Contingent liabilities
from rediscounted bills of exchange credited to borrowers
from guarantees and indemnity agreements
28,322
7
28,315
23,764
59
23,705
Lending commitments
69,984
52,354
87
296
(25) Off-balance-sheet commitments
e
m
Other commitments
17
Notes
Other notes
(26) Derivatives transactions
Derivatives transactions (investment and trading portfolios) involved the following nominal
amounts and market values:
30.9.2000
Nominal amount, by remaining lifetime
less than more than one more than
one year year but under five years
five years
em
Foreign currency-based transactions
Interest-based transactions
506,026
141,177
23,956
11,557
10,386
1,156,375
501,139
369,316
18,485
18,675
57,479
31,301
544
3,873
3,665
1,719,880
673,617
393,816
33,915
32,726
84,218
6,424
2,326
Other transactions
Total
Market value
positive
negative
of which: traded on a stock exchange
31.12.1999
Foreign currency-based transactions
Interest-based transactions
518,219
49,462
9,417
8,943
8,428
1,014,894
484,298
314,488
16,590
17,682
Other transactions
Total
43,777
14,923
1,286
4,798
4,843
1,576,890
548,683
325,191
30,331
30,953
87,821
7,370
16,949
of which: traded on a stock exchange
(27) Market-risk position arising from trading activities
The market-risk position arising from trading activities in investment banking show the values
at risk (97.5% confidence interval, overnight) broken down by department, and consequently
the possible overnight losses. For calculating and managing market risks, historical simulation
is used as the value-at-risk model. A detailed description of the methods employed can be
found in the notes in our 1999 Annual Report, pages 19 and 102.
e
m
Securities Fixed Income
30.9.2000
31.12.1999
8.8
10.7
5.7
5.9
25.1
31.0
0.5
0.3
33.5
36.4
1)
Securities Equity 1)
Treasury and Financial Products department
Other investment banking units
Investment Banking division
1)
2)
in previous year, shown as Global Bonds and Global Equities departments; 2) by portfolio effect
Boards of Commerzbank Aktiengesellschaft
Supervisory Board
Dr. Walter Seipp (Honorary Chairman)
Dietrich-Kurt Frowein (Chairman)
Hans-Georg Jurkat (Deputy Chairman)
Heinz-Werner Busch
Uwe Foullong
Dott. Gianfranco Gutty
Dr.-Ing. Otto Happel
Gerald Herrmann
Detlef Kayser
Dieter Klinger
Dr. Torsten Locher
Helmut Mamsch (until May 26, 2000)
Horst Sauer
Dr. Erhard Schipporeit (since May 26, 2000)
Werner Schönfeld
Professor Dr.-Ing. Ekkehard Schulz
Alfred Seum
Hermann Josef Strenger
Professor Dr. Jürgen F. Strube
Dr. Klaus Sturany (since May 26, 2000)
Heinrich Weiss
Wilhelm Werhahn
Dr. Harald Wilde (until May 26, 2000)
Board of Managing Directors
Dr. h.c. Martin Kohlhaussen (Chairman)
Dr. Erich Coenen (until June 30, 2000)
Wolfgang Hartmann (since July 1, 2000)
Dr. Heinz J. Hockmann
Dr. Norbert Käsbeck
Jürgen Lemmer
18
Andreas de Maizière
Klaus-Peter Müller
Klaus Müller-Gebel
Michael Paravicini (since September 1, 2000)
Klaus M. Patig
Dr. Axel Frhr. v. Ruedorffer
Interim report as of Sept. 30, 2000
Commerzbank Aktiengesellschaft
Legal domicile of the Bank: Frankfurt am Main (HRB 32000)
935 branches in Germany
Subsidiaries and major holdings
In Germany
ADIG Allgemeine Deutsche Investment-Gesellschaft mbH, Munich/Frankfurt am Main
CBG Commerz Beteiligungsgesellschaft Holding mbH, Bad Homburg v.d.H.
comdirect bank AG, Quickborn
Commerzbank Investment Management GmbH, Frankfurt am Main
Commerz Finanz-Management GmbH, Frankfurt am Main
Commerz Grundbesitz-Investmentgesellschaft mbH, Wiesbaden
Commerz International Capital Management GmbH, Frankfurt am Main
CommerzLeasing und Immobilien GmbH, Düsseldorf
Commerz NetBusiness AG, Frankfurt am Main
Hypothekenbank in Essen AG, Essen
RHEINHYP Rheinische Hypothekenbank AG, Frankfurt am Main
Deutsche Schiffsbank AG, Bremen/Hamburg
Abroad
ADIG-Investment Luxemburg S.A., Luxembourg
Caisse Centrale de Réescompte, S.A., Paris
Commerzbank Asset Management Italia S.p.A., Rome
Commerzbank (Budapest) Rt., Budapest
Commerzbank Capital Markets Corporation, New York
Commerzbank Capital Markets (Eastern Europe) a.s., Prague
Commerzbank (Eurasija) SAO, Moscow
Commerzbank Europe (Ireland), Dublin
Commerzbank International S.A., Luxembourg
Commerzbank (Nederland) N.V., Amsterdam
Commerzbank (Switzerland) Ltd, Zurich/Geneva
Commerzbank (South East Asia) Ltd., Singapore
Commerz Futures, LLC, Chicago
Commerz Securities (Japan) Co. Ltd., Hong Kong/Tokyo
Jupiter International Group PLC, London
Montgomery Asset Management, LLC, San Francisco
Banque Marocaine du Commerce Extérieur, Casablanca
BRE Bank SA, Warsaw
Korea Exchange Bank, Seoul
P. T. Bank Finconesia, Jakarta
Unibanco – União de Bancos Brasileiros S.A., São Paulo
Foreign branches
Antwerp · Atlanta (agency) · Barcelona · Brno (office) · Brussels · Chicago · Grand Cayman · Hong Kong ·
Johannesburg · Labuan · London · Los Angeles · Madrid · Milan · Mumbai · New York · Paris · Prague ·
Shanghai · Singapore · Tokyo
Representative offices
Almaty · Bahrain · Bangkok · Beijing · Beirut · Bratislava · Brussels · Bucharest · Buenos Aires · Cairo ·
Caracas · Copenhagen · Istanbul · Jakarta · Kiev · Mexico City · Minsk · Moscow · Novosibirsk ·
Rio de Janeiro · São Paulo · Seoul · Sydney · Taipei · Tashkent · Tehran · Warsaw · Zagreb
19