Commerzbank in 2009 posted a full year consolidated result of minus EUR 4.5 billion (2008: minus EUR 6.5 billion). This included EUR 1.9 billion in costs resulting from the integration of Dresdner Bank as well as goodwill impairments (EUR 768 million) linked specifically to the strategic realignment of Eurohypo.
In the fourth quarter, a typically weak season, the group posted consolidated earnings of minus EUR 1.9 billion (Q3: minus EUR 1.1 billion). The full year operating loss was minus EUR 2.3 billion for 2009. The full year operating loss has halved against 2008 (minus EUR 5.4 billion). Despite difficult market conditions, full year gross revenues were up by more than half to EUR 10.9 billion. Loan loss provisions for 2009 totalled EUR 4.2 billion. At EUR 5.3 billion, however, the total impact of the financial market crisis was better than expectations at the beginning of the past year. The core segments Private Customers and Mittelstandsbank posted a positive operating result both for the year (EUR 170 million and EUR 584 million respectively) as well as for the fourth quarter (EUR 20 million and EUR 78 million respectively).
"As expected, we are reporting a negative result for 2009. This is not satisfying, but is attributable to two key factors. The result reflects the effects of the ongoing economic and financial market crisis - and the crisis is not yet over, although the start of 2010 has been promising with respect to our operating performance. What is more, in 2009 we have already booked the largest part of the charges related to the integration of Dresdner Bank. We have invested into the future of the bank, and this weighed on results with around EUR 1.9 billion," said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank. "We are not where we want to be yet, but we have reduced risks and made sustainable improvements to our capital base. 2010 will see a considerable improvement in customer-focused business. Our core bank with the Private Customers, Mittelstandsbank, Central & Eastern Europe and Corporates & Markets segments, is set to achieve a positive operating result in 2010.
The bottom line of the whole group will only be in the black if the development of the economy and the financial markets will be very positive in 2010. They will influence the result of Asset Based Finance and of the Portfolio Restructuring Unit, as well as investment banking. But we will return to profitability in 2011 at the latest. All other Roadmap 2012 targets remain unchanged."
Commerzbank reduced risk-weighted assets by 17% to EUR 280 billion and total assets by 19% to EUR 844 billion at end December 2009. The EU-requirement of lowering total assets including Eurohypo to approximately EUR 900 billion until 2012 has thus been achieved three years ahead of schedule. The
core capital ratio (Tier 1) remained at a high level as at end of the financial year 2009 (10.5%).
Under the agreement with the Special Fund Financial Market Stabilization (SoFFin), the liquidation of reserves or special reserves (Sonderposten according to § 340g German Commercial Code) for the granting of profit-related payments on equity related instruments issued by Commerzbank AG is not permitted. The face value of the instruments, however, will not be reduced.
Source: CommerzbankDate: 23.02.2010
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