Commerzbank Aktiengesellschaft
Commerzbank's AGM
"We will achieve a turnaround in 2003"
Frankfurt (ots)
At his bank's AGM in the Frankfurt Festhalle on May 30, Klaus-Peter Müller, chairman of Commerzbank's board of managing directors, was confident that the bank can be put back on a successful course this year. "We look upon the proposed dividend payment of 10 cents per share as a demonstration of our confidence that we can achieve a turnaround in 2003", said Mr. Müller to the 3,000 shareholders attending the AGM. At the same time, he expressed his conviction that the stock market as well will reward these efforts in the form of higher share prices.
Commerzbank's priority continues to be strict cost discipline. While the targets of the first cost-cutting offensive were easily exceeded, the second offensive is now being launched, which will mainly affect the bank's head office in Frankfurt as well as its foreign outlets and subsidiaries. By end-2004, 2,000 jobs are to be shed in Germany and 1,100 elsewhere. Savings of altogether 688m euros will be realized in this way and through the reduction of other non-personnel expenses. At the same time, new sources of revenues will be tapped and the bank's business lines will adopt a new strategic orientation.
"Best choice for demanding customers"
The retail banking department already managed to bring about a change of trend in 2002. After an operating loss in 2001, a plus of 53m euros was achieved last year. "By further raising the level of qualifications of our staff and through innovative products, Commerzbank will become the best choice for demanding customers in Germany", claimed Mr. Müller, describing the bank's ambitious goal.
The unsatisfactory result for asset management in 2002 reflected the ongoing process of restructuring and concentration. The business focus is on Germany and several selected European core countries. The bank's Italian asset-management unit will be disposed of in the second quarter of this year. According to Mr. Müller, the expected synergy effects should lead to satisfactory results again in this business line over the medium term.
In corporate banking, concentration on segments with strong earnings is being stepped up. With its Mittelstand credit offensive, for which one billion euros of additional funds was made available in March, the bank intends to expand further in this area. Over the past five years, lending to smaller businesses has increased by 37%. Here the so-called Hausbank principle will be very important in the future as well. At the same time, explained Mr. Müller, Commerzbank will concentrate as part of its "major corporates' value offensive" on companies with a sound credit standing and a solid cross-selling profile. The closer meshing of corporate and investment banking will enable the bank to respond better to customers' demands and at the same time to exhaust additional earnings opportunities.
A further measure mentioned by Mr. Müller was European strategy, making it possible to standardize products, terms and conditions, and procedures. All of this, he said, has led to improved margins in lending business.
ots Original Text Service: Commerzbank Aktiengesellschaft Internet: http://www.presseportal.de
Contact:
Commerzbank Aktiengesellschaft
Zentraler Stab Kommunikation -Presse-
60261 Frankfurt am Main
Tel.: 069/136-22830
Fax: 069/136-22008
E-Mail: pressestelle@commerzbank.com
Internet: http://www.commerzbank.de
Original-Content von: Commerzbank Aktiengesellschaft, übermittelt durch news aktuell