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 ...

| --- | --- | --- | |------------------|----------------------------------------------------|-------| | | | | | | | | | transformation – | Good progress in operating result of €570m in H1 | | | | | | Manfred Knof CEO 4 August 2021 Commerzbank, Manfred Knof, CEO, Frankfurt 1 Good progress in transformation – operating result of €570m in H1 Good progress on strategy implementation Sustained strong CET1 capital ratio of 13.4% H1 €570m and Q2 €32m operating result Q2 burdened by one-off items Full year targets ...

Strong results and successful start of transformation Analyst conference – Q1 2021 12 May 2021 Commerzbank, Manfred Knof, CEO, Bettina Orlopp, CFO, Frankfurt All figures in this presentation are subject to rounding Manfred Knof CEO 12 May 2021 Commerzbank, Manfred Knof, CEO, Frankfurt 1 Strong results and successful start of transformation First important milestones of strategy implementation reached Increased CET1 capital ratio of 13.4% Strong start into the year with Q1 operating result of €538m Full year ...

Commerzbank AG (OTCPK:CRZBF) Q4 2020 Earnings Conference Call February 11, 2021 3:00 AM ET Company Participants Bettina Orlopp - CFO Conference Call Participants Benjamin Goy - Deutsche Bank Izabel Dobreva - Morgan Stanley Johannes Thormann - HSBC Stuart Graham - Autonomous Research Jeremy Sigee - Exane Anke Reingen - RBC Nicholas Herman - Citigroup Riccardo Rovere - Mediobanca Bettina Orlopp Good morning, ladies and gentlemen. Welcome to our earnings call for the fourth quarter of the financial year 2020. ...