DGAP-News: Commerzbank: Net operating profit of EUR 216 m in the third quarter of 2012
(firmenpresse) - DGAP-News: Commerzbank AG / Key word(s): Quarter Results
Commerzbank: Net operating profit of EUR 216 m in the third quarter of
2012
08.11.2012 / 07:00
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- Net interest income stable at EUR 1.38 bn compared to the previous
quarter, net commission income increased to EUR 840 m
- Operating profit of Core Bank in third quarter of 2012 improved clearly
to EUR 692 m
- Commerzbank well prepared for Basel 3 with Core Tier 1 ratio of 12.2%
- Blessing: 'Despite the overall difficult market conditions we have
achieved a solid result in the Core Bank'
The Commerzbank Group generated an operating profit of EUR 216 million in
the third quarter of 2012 (Q2 2012: EUR 451 million). Keeping in mind that
the third quarter of 2011 was significantly impacted by impairments on
Greek Sovereign Bonds, operating profit considerably improved year-on-year
(Q3 2011: EUR minus 855 million). Against the background of the ongoing
difficult market environment and compared to the previous quarter, the
revenues before loan loss provisions decreased to EUR 2.4 billion, however
(Q2 2012: EUR 2.6 billion). In particular the trading result in the segment
Non-Core Assets (NCA) declined in this period as a consequence of negative
valuation effects on hedging positions. As expected, the loan loss
provisions slightly increased in the third quarter of 2012 to EUR 430
million compared to the previous quarter (Q2 2012: EUR 404 million). The
operating expenses remained unchanged at EUR 1.7 billion, reflecting
measurements to increase efficiency. In total, Commerzbank posted a net
profit of EUR 78 million in the third quarter of 2012 (Q2 2012: EUR 275
million). In the first nine months of 2012, the net profit significantly
improved to EUR 722 million in spite of high tax charges in the current
year (first nine months 2011: EUR 322 million).
In the Core Bank with the operating segments Private Customers,
Mittelstandsbank, Corporates&Markets and Central&Eastern Europe, the
operating profit in the third quarter increased by almost 20% to EUR 692
million compared to the previous quarter.
'Despite the overall difficult market conditions, we have achieved a solid
result in the Core Bank in the third quarter of 2012. The market
environment will remain volatile in the coming months, however. We are,
therefore, continuing with our strict cost management, consistently
reducing non-strategic portfolios further and strengthening our
profitability,' said Martin Blessing, Chairman of the Board of Managing
Directors of Commerzbank.
Capital base at a constant level, Commerzbank well-prepared for Basel 3
Due to the sustainable capital management of the Group, the risk-weighted
assets were reduced further by EUR 4 billion compared the previous quarter,
to EUR 206 billion as of the end of September 2012. The Core Tier 1 ratio
remained constant over the second quarter at 12.2% as of the end of
September 2012. In view of the regulatory capital requirements of Basel 3,
as of January 1, 2013 Commerzbank expects a Core Tier 1 ratio of
comfortably above 9% taking into account the requirements applicable as of
this date. In the coming years, and taking into consideration the phase-in
of Basel 3, Commerzbank will remain above this level. Total assets as of
the end of September 2012 were EUR 676 billion (end of June 2012: EUR 673
billion).
Revenues before loan loss provisions remain under pressure, yet commission
income increased
In the Group, the revenues before loan loss provisions were also affected
by the ongoing difficult market environment in the third quarter of 2012.
Thus the interest income in the third quarter of 2012 was at EUR 1.38
billion, only slightly higher than in the previous quarter (Q2 2012: EUR
1.33 billion). Yet, the commission income in this period increased by 11%
to EUR 840 million (Q2 2012: EUR 757 million). The trading result of EUR
146 million in the third quarter was, however, considerably lower than in
the previous quarter (Q2 2012: EUR 555 million). The reasons for this are a
weaker Treasury result and negative valuation effects on hedging positions
in the Non-Core Assets segment. The operating expenses remained unchanged
compared to the previous quarter despite effects in the opposite direction,
for example the collectively agreed wage increase. In the Group, the loan
loss provisions increased as expected. The higher loan loss provisions in
the Group division Commercial Real Estate could not be compensated by net
reversals in the Mittelstandsbank and Corporates&Markets segments.
Core Bank segments with solid result, Non-Core Assets with negative impact
The Private Customers segment increased the operating profit by 24% to a
stable level of EUR 41 million in the third quarter of 2012 (Q2 2012: EUR
33 million). Revenues before loan loss provisions were again slightly
raised for the first time. In particular with the net commission income,
the segment profited from a slight recovery in securities business with
conservative investment products and an upward move in new business.
However, the revenues in the Private Customers segment continue to be
affected by an overall difficult market and interest rate environment. The
operating profit in the Mittelstandsbank was EUR 395 million (Q2 2012: EUR
390 million). In comparison to the previous quarter, the revenues before
loan loss provisions decreased as a consequence of the ongoing low market
interest rates, while the loan loss provisions profited from the net
reversals due to the robust state of the German economy. The Central&Eastern Europe segment posted an operating profit of EUR 52 million in the
third quarter of 2012 (Q2 2012: EUR 59 million). BRE Bank further increased
its deposit volumes with almost stable interest rate margins, and thus once
again made a good contribution to profits. Corporates&Markets improved
its operating profit significantly compared to the previous quarter,
posting EUR 191 million in the third quarter of 2012 (Q2 2012: EUR 45
million). Fixed Income&Currencies benefitted from increasing customer
activity whilst Corporate Finance and Equity Markets&Commodities posted
stable revenues despite the typically weaker summer months. Overall, the
operating profit of the segment was also influenced by one-off effects,
however.
As a consequence of the continuation of the portfolio reduction, the
Non-Core Assets segment posted a considerably weaker operating result of
EUR minus 476 million in the third quarter of 2012 than in the previous
quarter (Q2 2012: minus EUR 149 million). Fundamental reasons for the
downturn in the result are the valuation of positions for the hedging of
default risks, which had a negative impact on the trading result, and the
higher loan loss provisions. The portfolios in the Group divisions Public
Finance and Commercial Real Estate were consistently reduced further. In
Public Finance, the Exposure at Default was reduced by 4% to EUR 80 billion
as of the end of September 2012 (end of June 2012: EUR 83 billion), in
Commercial Real Estate by 6% to EUR 49 billion (end of June 2012: EUR 52
billion).
Outlook 2012
'The situation in the euro zone has significantly stabilised in the third
quarter. At present, it cannot be foreseen, however, whether the slight
recovery of the markets will continue. With a view to the rising
requirements for the capitalisation of banks, the ongoing low interest rate
levels, and the loss of trust on the part of customers we expect to see
further charges on revenues,' said Chief Financial Officer Stephan Engels.
'However, the costs lately have developed better than originally expected
due to further efficiency gains. For 2012 as a whole, therefore, we assume
that operating expenses will only amount to a maximum of EUR 7.2 billion.
The loan loss provisions will increase also in the fourth quarter of 2012.
The Non-Core Assets segment continues to be the main driver of the loan
loss provisions, yet we expect an increase in the Core Bank as well. For
the Group, loan loss provisions of EUR 1.7 billion are still achievable for
the year as a whole. For the fourth quarter we expect an operating profit
lower than that seen in the third quarter.'
'In the course of our prudent management, we strengthened our already
strong liquidity reserve further over the last months. We also sustainably
improved our funding structure. Due to the stabilising measures of the
European Central Bank and the planned portfolio reduction in NCA, we
envisage paying back the liquid assets from LTRO I in the first quarter of
2013, hence two years prior to the maturity date,' said Engels.
Excerpt from the consolidated profit and loss statement
In EUR m Q3 2012 Q3 2011 9M 2012 9M 2011 Q2 2012*****
Net interest income 1,379 1,589 4,141 5,106 1,333
Provisions for loan losses -430 -413 -1,046 -1,009 -404
Net commission income 840 844 2,440 2,792 757
Net trading income 146 353 1,158 1,448 555
Net investment income 30 -1,267 -169 -2,209 -23
Current income on 16 16 34 29 7
companies accounted for at
equity
Other income -33 59 -55 407 -43
Operating expenses 1,732 2,036 5,252 6,220 1,731
Operating profit 216 -855 1,251 344 451
Net measurement gain/loss 3 - -83 - -86
on the prospective selling
price of disposal groups
Restructuring expenses - - 43 - 9
Taxes 115 -191 324 -54 56
Consolidated profit 104 -664 801 398 300
Consolidated profit 78 -687 722 322 275
attributable to
Commerzbank shareholders
Cost/income ratio in 72.8 127.7 69.6 82.1 66.9
operatingbusiness (%)
Under www.tvservicebox.de and www.getaudio.de you will find broadcast-ready
video and audio material with statements by Stephan Engels from
approximately 7.00 onwards on November 8, 2012.
The videos can be viewed directly using mobile end devices.
Statements Stephan Engels: http://cbvideo.commerzbank.de/2012/Q3Engels_en/
*****
Press contact:
Simon Steiner +49 69 136 46646
Nils Happich +49 69 136 44986
Karsten Sowobda +49 69 136 22339
*****
About Commerzbank
Commerzbank is a leading bank for private and corporate customers in
Germany. With the segments Private Customers, Mittelstandsbank, Corporates&Markets as well as Central&Eastern Europe 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 around 60 sites in 52 countries
and serves almost 15 million private clients as well as 1 million business
and corporate clients worldwide. In 2011, it posted gross revenues of
almost EUR 10 billion with 58,160 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 the 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:
Commerzbank AG
Group Communications
Tel.: +49 69 136 - 22830
mediarelations(at)commerzbank.com
End of Corporate News
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08.11.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Commerzbank AG
Kaiserplatz
60261 Frankfurt am Main
Germany
Phone: +49 (069) 136 20
Fax: -
E-mail: ir(at)commerzbank.com
Internet: www.commerzbank.de
ISIN: DE0008032004
WKN: 803200
Indices: DAX, CDAX, HDAX, PRIMEALL
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX; London, SIX
End of News DGAP News-Service
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192113 08.11.2012
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Datum: 08.11.2012 - 07:00 Uhr
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