Financial Data and Key Metrics Changes - The company reported a strong start to 2023 with an operating result of €875 million, a 60% increase year-over-year, and a net result of €580 million, nearly doubling from the previous year [3][16] - The cost-income ratio stood at 65% for Q1, aligning with the target of 60% for 2024, while the CET1 ratio improved to 14.2% [4][18] - The underlying net interest income (NII) increased by 4.5% compared to Q4, driven by higher rates on floating rate and short maturity instruments [20][24] Business Line Data and Key Metrics Changes - The Corporate Clients segment showed stable performance with a healthy bond business, while the Private and Small-Business Customers (PSBC) segment improved its contribution from the securities business [19][36] - Underlying NII for PSBC increased by 23% or €114 million, while mBank's operating result reached €262 million, a 49% increase year-over-year [36][37] - The Corporate Clients segment achieved a record operating result of €539 million, with interest income up 36% year-over-year and costs down by 8.4% [41] Market Data and Key Metrics Changes - The company noted a gradual increase in mBank's deposit beta, reflecting stable central bank rates in Poland at 6.75% since September [22][37] - The total volume of deposits increased year-on-year but decreased from the previous quarter due to seasonal factors and inflationary pressures [35][66] - The company observed a shift from sight deposits to term deposits as customers sought higher yields amid rising interest rates [35][66] Company Strategy and Development Direction - The current focus is on enhancing the new business model across customer segments, particularly through the expansion of the sector-specific advisory model for large corporates [6][14] - The company aims to achieve a cost-income ratio of 60% by 2024 through ongoing efficiency gains and prioritizing investment programs based on business cases [10][14] - The company is committed to sustainability, having confirmed targets for carbon emissions reduction and joining the Taskforce on Nature-related Financial Disclosure [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching 2023 targets but acknowledged the need for discipline in addressing major business challenges [7][14] - The outlook for 2023 includes expectations for NII around €7 billion, significantly above the initial estimate of €6.5 billion, with a cautious approach to deposit beta increases [24][44] - The company anticipates a mild recession and expects a risk result well below €900 million, assuming the use of top-level adjustments [30][44] Other Important Information - The ECB has approved the company's first share buyback, with a planned payout ratio of 50% for 2023 [5][14] - The company reported a low risk result of €68 million in Q1, reflecting high credit quality and resilience in its customer base [30][31] Q&A Session Summary Question: Deposit beta expectations and breakdown - Management indicated that the deposit beta was 15% in Q1 and expects it to rise to 35% over the next three quarters, with a cautious approach to retail and corporate deposits [46][48] Question: Loan book performance and consumer loans - The loan book in retail is growing in line with the market, and management remains cautious about consumer loans due to risk management considerations [49][50] Question: Coverage expectations for Polish FX mortgages - Coverage ratio of 61% is deemed sufficient, but future rulings from courts will determine if additional coverage is needed [51] Question: NII peak and future guidance - Management believes Q1 NII may be the peak for the year, with expectations of slight decreases due to deposit beta pressures [56] Question: Mix of dividend and buyback in payout ratio - The company plans to split the 50% payout between dividends and buybacks, with further updates expected after Q2 [57] Question: Deposit volumes and optimization - Management expects stable deposit volumes for the remainder of the year, with shifts from sight deposits to term deposits [65][66] Question: NII trends and competitive rates - Management clarified that the NII trends are consistent with market movements, and competitive rates for term deposits have driven shifts in customer behavior [73][74]

Financial Data and Key Metrics Changes - Commerzbank reported a net result of €1.4 billion for 2022, more than tripling the result from 2021, marking the best performance in over 10 years [3][12] - The capital ratio stands at 14.1%, significantly above the target range, providing a cushion for potential economic downturns [3][12] - The return on tangible equity (ROTE) reached 4.9%, with a target of over 7.3% by 2024 [12][21] - The cost-income ratio improved to 69%, with a target of 60% by 2024 [12][21] Business Line Data and Key Metrics Changes - Corporate Clients increased underlying net commission income by 6% in 2022, while PSBC Germany's net commission income declined each quarter due to lower transaction numbers [14][24] - The net interest income (NII) for 2022 was 36% higher than in 2021, with a particularly strong increase in Q4 due to several euro rate hikes [14][15] - The operating result for PSBC Germany increased by 43% for the financial year, while mBank achieved a record result of €301 million in Q4 [25][24] Market Data and Key Metrics Changes - The deposit business has seen continued inflows, but there has been no significant passing on of rates to customers, with expectations of a shift from site deposits to term deposits [23][24] - The expected average deposit beta for 2023 is 30%, reflecting competitive behavior in the German market [16][49] Company Strategy and Development Direction - The company aims to maintain speed in restructuring and focus on customer business and revenues, emphasizing strict cost discipline [6][11] - Commerzbank plans to propose a capital distribution to shareholders with a payout ratio of 30% for 2022 and aims to increase it to 50% for 2023 [4][11] - The company is committed to enhancing its ESG journey, targeting €300 billion in sustainable finance by 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, citing a strong performance in 2022 and a good cushion for potential economic challenges [2][3] - The company anticipates a mild recession and has retained a top-level adjustment of €482 million for potential economic disruptions [20][30] - The outlook for 2023 includes expectations for NII to exceed €6.5 billion, with potential upside scenarios reaching €7.1 billion [17][30] Other Important Information - The company has successfully completed 90% of its planned reduction of 10,000 FTEs, with limited execution risk remaining [3][4] - A share buyback program of €122 million has been announced, marking the first step in capital distribution to shareholders [4][5] Q&A Session Summary Question: Clarification on NII guidance and capital ratio - Management explained that the NII guidance reflects adjustments for deposit beta and higher funding costs, with a base case of €6.5 billion for 2023 [33] - The capital ratio of 14% is maintained for comfort and to support ongoing transformation efforts, with potential for further buybacks depending on macroeconomic conditions [34] Question: 2024 NII expectations and cost-income ratio - Management indicated that 2024 NII guidance is uncertain due to market volatility, but improvements are expected if interest rates remain stable [38] - The target for the cost-income ratio remains at 60% for 2024, with expectations to approach this target in 2023 [39] Question: Concerns about FTE headcount reduction and capital return - Management acknowledged slower FTE reductions due to the need for adequate staffing in private client services to minimize churn [42] - The capital return policy aims for a 50% payout ratio, with buybacks considered as part of this strategy [45] Question: Deposit beta expectations and competition - Management expects a higher deposit beta for corporate clients compared to private clients, with a stable growth outlook for deposits in 2023 [49] Question: Risk costs and restructuring impact - The risk result guidance includes considerations for a mild recession, with expectations for potential defaults primarily from smaller business clients [52][56]

Commerzbank AG (OTCPK:CRZBF) Q3 2022 Earnings Conference Call November 9, 2022 3:00 AM ET Company Participants Manfred Knof - CEO Bettina Orlopp - Deputy Chairwoman and CFO Conference Call Participants Kian Abouhossein - JPMorgan Johannes Thormann - HSBC Stuart Graham - Autonomous Research Tobias Lukesch - Kepler Cheuvreux Jeremy Sigee - BNP Paribas Anke Reingen - RBC Chris Hallam - Goldman Sachs Riccardo Rovere - Mediobanca Operator Good morning, ladies and gentlemen, and welcome to the Commerzbank AG Conf ...

Commerzbank AG (OTCPK:CRZBF) Q2 2022 Earnings Conference Call August 3, 2022 3:00 AM ET Company Participants Manfred Knof - Chief Executive Officer Bettina Orlopp - Deputy Chairwoman & Chief Financial Officer Conference Call Participants Benjamin Goy - Deutsche Bank Izabel Dobreva - Morgan Stanley Johannes Thormann - HSBC Stuart Graham - Autonomous Research Jeremy Sigee - BNP Paribas Exane Kian Abouhossein - JPMorgan Tobias Lukesch - Kepler Cheuvreux Riccardo Rovere - Mediobanca Anke Reingen - RBC Capital M ...

Financial Data and Key Metrics Changes - The company reported a 12% increase in revenues, resulting in a pre-provision profit of €1 billion for Q1 2022 [2] - Net income more than doubled to €298 million, with a cost-income ratio of 64% [2][21] - The CET1 ratio remained stable at 13.5%, providing a comfortable buffer for growth and risk coverage [2][21] Business Line Data and Key Metrics Changes - In the Private and Small Business Clients (PSBC) segment, operating results reached €403 million, driven by strong interest and commission income [41] - The Corporate Clients segment saw an 82% year-on-year increase in the pre-provision result, indicating robust customer business development [46] - mBank contributed significantly to net interest income (NII), benefiting from rising interest rates in Poland [24][41] Market Data and Key Metrics Changes - The company reduced its net exposure to Russia by 36% to €1.2 billion, with provisions covering almost 50% of this exposure [3][4] - The securities business attracted inflows of €3 billion net new money, although overall volumes under custody decreased due to market volatility [39] - The company expects a positive impact on NII from deposit pricing as interest rates rise, projecting an increase of up to €700 million in 2023 compared to 2021 [28][92] Company Strategy and Development Direction - The company is focused on digital transformation, launching new products such as a digitalized consumer loan and a new investment management solution [5][8] - The strategy includes reducing branch numbers and increasing efficiency in operations, with plans to close 100 branches and reduce staff by 1,300 in PSBC Germany [10][74] - Sustainability is a key focus, with a target of reaching a sustainable business volume of €207 billion by year-end [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net result of over €1 billion for 2022, despite uncertainties from geopolitical tensions and inflation [16][55] - The outlook assumes no extraordinary provisions from Swiss franc loans and that risks from Russia remain contained [62] - Management noted that German corporates are adapting to the current economic environment, with expectations of slight growth despite uncertainties [71][72] Other Important Information - The company has prudently increased its top-level adjustment to €713 million to cover potential future risks [54] - The tax rate for Q1 was elevated at around 38%, but a normalized rate of approximately 30% is expected for the full year [32] - The company plans to propose a dividend with a payout ratio of 30% of the net result for 2022 [57] Q&A Session Summary Question: Potential recession in Germany and interest rate sensitivity - Management indicated that the outlook depends on a growing economy, and if there were a total gas stop, all figures would need to be re-evaluated [61][62] - Interest rate sensitivity suggests that significant benefits would be realized once rates move into positive territory, particularly above 100 basis points [64] Question: Corporate clients' behavior regarding recession - Management noted that German corporates feel they can handle the current situation and expect slight growth, despite uncertainties [71][72] Question: Credit quality and Russian exposure - Management confirmed that corporates are diversifying their strategies to cope with potential disruptions, and the company is actively managing its Russian exposure [80][81] Question: NII sensitivity and fair value results - Management stated that no deposit beta is expected until rates turn positive, and guidance for fair value results remains cautious due to market volatility [91][93] Question: Provisions and TLA management - The top-level adjustment for Russia was based on a conservative assessment of direct exposure, and management is monitoring the situation closely [99][100]

Financial Data and Key Metrics Changes - The company reported a net result of €430 million for 2021, despite extraordinary burdens of nearly €2 billion, achieving an operating profit of €1.2 billion [3][15][17] - The operating result for Q4 2021 reached €141 million, with a net result of €421 million, including a tax gain of €199 million [15][16] - The CET1 ratio improved to 13.6%, with a buffer to MDA increasing to 420 basis points [16][39] Business Line Data and Key Metrics Changes - In the Private and Small Business Customers (PSBC) segment, net commission income increased by €215 million or 11% year-on-year, with Q4 alone showing a €53 million improvement [19][29] - The Corporate Clients segment maintained loan volumes while increasing average RWA efficiency to 5.2% [30] - The Securities business saw a volume increase supported by a net inflow of around €4 billion in Q4 [27] Market Data and Key Metrics Changes - mBank benefited from rising interest rates in Poland, leading to an expected €200 million increase in NII per year [23] - The Polish Central Bank's rate hikes have positively impacted mBank's financials, with expectations of further increases throughout the year [23][80] Company Strategy and Development Direction - The company aims to resume dividend payments with a payout ratio of 30% starting in 2022, with plans to increase payouts to 50% thereafter [14] - A strong focus on sustainability is emphasized, with targets for a net-zero credit and investment portfolio by 2050 [11][12] - The company is actively streamlining its international network and optimizing its branch network, reducing the number of branches from 800 to 550 in 2021 [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in taking positive momentum into 2022, expecting a net result of more than €1 billion [14][41] - The company anticipates challenges but remains committed to achieving strategic and financial targets [13] - Management highlighted the importance of maintaining cost discipline while navigating inflationary pressures [24][63] Other Important Information - The company has made significant progress in its redundancy program, with over 6,000 job reductions already secured [7][56] - The risk result for Q4 was €313 million, with an overall cost of risk on loans for the year at 22 basis points [26] Q&A Session Summary Question: On net interest income (NII) guidance - Management indicated that the guidance for NII is conservative, with expectations to exceed the Q4 levels in 2022, driven by higher NII from mBank due to rate increases in Poland [45][51] Question: On capital return timing - Management confirmed that dividends would be considered quarterly, with final decisions made in 2023, and share buybacks would require regulatory approval [46][48] Question: On the redundancy program timeline - Management stated that the remaining job reductions would occur over the two-year transformation period, with no slippage in the timeline [56][58] Question: On share buybacks discussions with the ECB - Management confirmed ongoing discussions with the ECB regarding share buybacks, emphasizing the need for further progress in transformation [58][59] Question: On customer churn expectations - Management expects some churn in 2022 due to branch closures but believes it will be manageable and offset by future growth [29][70]

Successful first transformation year – positive net result Analyst conference – Q4 2021 / FY 2021 preliminary and unaudited results 17 February 2022 Commerzbank, Manfred Knof, CEO & Bettina Orlopp, CFO, Frankfurt All figures in this presentation are subject to rounding Manfred Knof CEO 17 February 2022 Commerzbank, Manfred Knof, CEO, Frankfurt 1 Commerzbank on track Financial year 2021 better than expected –positive net result despite significant extraordinary burdens Strategy implementation progressing wel ...

Commerzbank AG (OTCPK:CRZBF) Q3 2021 Results Earnings Conference Call November 4, 2021 4:00 AM ET Company Participants Manfred Knof - Chief Executive Officer Bettina Orlopp - Deputy Chairwoman and Chief Financial Officer Conference Call Participants Izabel Dobreva - Morgan Stanley Nicholas Herman - Citigroup Johannes Thormann - HSBC Jochen Schmitt - Metzler Riccardo Rovere - Mediobanca Stuart Graham - Autonomous Research Hugo Cruz - Keefe, Bruyette & Woods Jun Yang - Barclays Investment Bank Operator Good m ...

| --- | --- | --- | |---------------------------------|------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Transformation well on track – | FY positive net result | | | | | | | | | | Manfred Knof CEO 4 November 2021 Commerzbank, Manfred Knof, CEO, Frankfurt 1 Transformation progress in line with plan after 9M Transformation milestones on track Development of transformation KPI largely in line with plan Revenues of €6.4bn 3.3% above previous year Low risk resul ...

Commerzbank AG (OTCPK:CRZBF) Q2 2021 Earnings Conference Call August 4, 2021 3:00 AM ET Company Participants Manfred Knof - Chief Executive Officer Bettina Orlopp - Chief Financial Officer Conference Call Participants Benjamin Goy - Deutsche Bank Izabel Dobreva - Morgan Stanley Jeremy Sigee - Exane BNP Paribas Nicholas Herman - Citigroup Anke Reingen - RBC Capital Markets Johannes Thormann - HSBC Timo Dums - DZ Bank Hugo Cruz - KBW Riccardo Rovere - Mediobanca Jochen Schmitt - Metzler Capital Markets Jun Ya ...