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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 of: Commerzbank Aktiengesellschaft, transmitted by news aktuell

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