30th Efma Convention: L d hi i t il fiLeadership in retail finance

13 p.m. & 14 March 2008 - Paris

Detlev DietzChief Operational Officer Asset Management and Head of International Asset Management

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Asset Management Commerzbank

S i th tSurpassing the customer expectationsexpectations

Paris, March, 13th 2008EFMA Convention

Dr. Detlev Dietz, CommerzbankHead of Retail Banking

AGENDAAGENDA

1 Introduction to Commerzbank

2 Improving profitability in PBC

3 Growth in a competitive market3 Growth in a competitive market

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Commerzbank locations and key figuresCommerzbank locations and key figures

• Balance-sheet total €616.5bn

• Equity €16.1bn

• Ratings• Ratings• Moody‘s Investors Service Aa3• S&P A• Fitch Ratings A

• Market capitalization €17.3bn

• Staff 36,767- Germany 27,646- Abroad 9,121

• Customers 8.92 m

• Branches worldwide (Group) 1,198( p) ,

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Performance and market capitalizationPerformance and market capitalizationas of January 2008

Equity and market capitalizationPerformance of the Commerzbank share

250Equity

Equity and market capitalizationCommerzbank GroupIn € bn

Performance of the Commerzbank shareMonth-end figures January 2005 = 100

200

17 1

19.0

17.3

Market capitalization

150

15.614.6

12.2

16.117.1 17.3

100

9.1

50

20062005 2007*

5

Commerzbank share price DJ Euro Stoxx Banks CDAX (Banks)

* until December 28, 2007

20062005 2007* 31.12.2004 31.12.2005 31.12.2006 31.12.2007

AGENDAAGENDA

1 Introduction to Commerzbank

2 Improving profitability in PBC

3 Growth in a competitive market3 Growth in a competitive market

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Private and Business Customer Division focuses on affluent clientsPrivate and Business Customer Division focuses on affluent clients

Position / USP Strategic ProgramDISTR

Branch business:Leverage Platform•Sustained growth in target groups

Branch business •No.1 for business customers

•No. 4 in German branch business / private banking

IBUTI

Direct Banking:•No. 1 B2C online broker•First choice in online banking

Grow Customer Base•Further growth in banking, esp. in current accounts and short

Direct Banking

business / private banking

P

ON

Asset Management:N 5 i G t Grow Asset Base

gfor modern private investors in current accounts and short-

term deposits

Asset ManagementPRODU

PRODUC

•No. 5 in German asset management with € 63 bn AuM

•Growth program “Alpha” to invest € 100 m with target of € 100 bn AuM until 2011

KTION

CTION

Retail credit:•No. 2 in residential real estate financing in Germany (€ 43 bn)

Increase Profitability•Risk return oriented credit portfolio management on

l t bli h d l tf

Retail credit

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N ( ) newly established platform

PBC shows sustained growthPBC shows sustained growth …

Operating profitStrong profit improvement

Revenues incl LLPsSolid growth momentum

Operating profitin € m

Revenues incl. LLPsin € m

+16,8%2.603

2.405

+83,9%401

218287

2005 2006* 2007

2.229

2005 2006* 2007

218

Operating RoE (Basel I)Increased profitability

Number of clientsInitial Customer growth

in %16,2

8,510,9

in Mio. +14,6%5,5

4,85,1

2005 2006* 2007 2005 2006 2007

8 * Before one-offs due to integration of Eurohypo

with a consistent performance oriented market communication… with a consistent performance-oriented market communicationPromotion trucks Marketing cooperation CB branches opened Saturday Stiftung Warentest

Co ntr ide e ents 13 000 c stomers p a planned 790 branches 30k prospects Commer bank test innerCountry wide events 13,000 customers p.a. planned 790 branches, 30k prospects, 2.3k new clients

Commerzbank test winner

Börse OnlineCall Money Plus AccountBrand value rankingBerlin campaign

Special marketing campaign comdirect Tagesgeld PLUS comdirect:Commerzbank is the achiever of the year with an increased value

Current Account Online Thomson Extel Survey 2007 €uro/Finanzen Stiftung Warentest

Special marketing campaign targeting Berliner Sparkasse

comdirect Tagesgeld PLUS introduced November 2006

comdirect: Online Broker of the year 2006

the year with an increased value of about 30% up to € 2.093 bn

Comdirect: Current account Best Fund Management Firm cominvest: Achiever of the Best equity fund in Germany

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Comdirect: Current account No. 1 in €uro/Finanzen

Best Fund Management Firm in Germany

cominvest: Achiever of the year 2007 €uro/Finanzen

Best equity fund in Germany

AGENDAAGENDA

1 Introduction to Commerzbank

2 Improving profitability in PBC

3 Growth in a competitive market3 Growth in a competitive market

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Under present market conditions the best product to attractUnder present market conditions the best product to attract customers and gain growth momentum is the current account

transparent / fast moving Mortgage

sInvestment

Market

InvestmentFunds

D itCondition

Retirement

Deposits

intransparent / slow moving

Retirement plan Current

Account

low sensitivity / low

high sensitivity / highCustomer behavior /

Willing to switch

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Commerzbank pricing strategy Three stages of developing ourCommerzbank pricing strategy – Three stages of developing our customers

AttractContract

Interact

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3

Stage Attract1Gaining customers:Highly attractive product offers and

Retaining customers:Offer interesting products at fair prices

Servicing customers:Get the customers into a long term partnership

StageGoal

• Current Account • Fixed-term deposits • Asset allocation /

pprices

p p g p pby serving their individual needs

Examples• Fixed-term deposit• Money market

account (comdirect)

• Money market account to business customersP

management• Mortgage• Certificates

p

account (comdirect)• Payment

transactions• Investment account

Certificates• Consumer finance• Retirement Plan

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• Insurance

Successful in attracting in 2007 Commerzbank gained new currentSuccessful in attracting – in 2007 Commerzbank gained new current accounts at a rate well above its market share

Distribution of current accounts with Share of current accounts to privateDistribution of current accounts with private customers in Germany* (in %)

Share of current accounts to private customers newly contracted in 2007

~4 m p.a.~7,3%

2,2

1,8

2,3

2,2

290 000

26 3

7,5

4,7 ~290.000

58,2

26,3

Estimate of total contractible current

accounts in the market

Commerzbank share

13 * Due to multiple account relationships total > 100%

Contracting works as well Systematic new client development

Number of additional products sold toNew client process

Contracting works as well - Systematic new client development process enables successful cross-selling

Successful implementationEXAMPLE

Number of additional products sold to new customers in the 1st yearT+1 T+2 T+3 T+4 T+5 T+6

27%

59%

T+7 1

27%

2 >3

14%

Statistical analysis shows the highest selling probabilities in the first six months

Type of products sold to new customers in 2007

Insurance

Up to five monthly mails are sent to new clients, starting from first contracted signingEach mailing focuses on a specific product

Deposits

Securities

Loans 7%10%

37%

19%Via coupons the option for an easy response is givenIn parallel to the mailing the relationship-manager

27%

accounts19%

Credit Cards

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gets informedCredit Cards

SummarySummary

• Two brand strategy can be successful, although customer base with overlaps

• Marketing needs to be new customer oriented with the i lli i lrespective cross-selling structure in place

• Real time technology is a must only for certain customers; others are service and advise-oriented

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