30th Efma Convention:
                         Leadership in retail finance
                         L d    hi i     t il ...
S
              Surpassing th customer
                     i the      t
                   expectations
Paris, March, 13t...
AGENDA



    1   Introduction to Commerzbank

    2   Improving profitability in PBC

    3   Growth in a competitive mar...
Commerzbank locations and key figures



                              • Balance-sheet total             €616.5bn
        ...
Performance and market capitalization
      as of January 2008


      Performance of the Commerzbank share               ...
AGENDA



    1   Introduction to Commerzbank

    2   Improving profitability in PBC

    3   Growth in a competitive mar...
Private and Business Customer Division focuses on affluent clients

                                Position / USP        ...
PBC shows sustained growth …

         Solid growth momentum                                     Strong profit improvement...
… with a consistent performance oriented market communication
                     performance-oriented
      Promotion tr...
AGENDA



     1   Introduction to Commerzbank

     2   Improving profitability in PBC

     3   Growth in a competitive ...
Under present market conditions the best product to attract
 customers and gain growth momentum is the current account


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


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

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



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


     • Marketing nee...
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Detlev Dietz Commerzbank

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Detlev Dietz Commerzbank

  1. 1. 30th Efma Convention: Leadership in retail finance L d hi i t il fi 13 p.m. & 14 March 2008 - Paris Detlev Dietz Chief Operational Officer Asset Management and Head of International Asset Management Commerzbank 1
  2. 2. S Surpassing th customer i the t expectations Paris, March, 13th 2008 Dr. Detlev Dietz, Commerzbank EFMA Convention Head of Retail Banking
  3. 3. AGENDA 1 Introduction to Commerzbank 2 Improving profitability in PBC 3 Growth in a competitive market 3
  4. 4. Commerzbank locations and key figures • Balance-sheet total €616.5bn • Equity €16.1bn • 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) ( p) 1,198 , 4
  5. 5. Performance and market capitalization as of January 2008 Performance of the Commerzbank share Equity and market capitalization Month-end figures Commerzbank Group January 2005 = 100 In € bn 250 Equity Market capitalization 19.0 200 17.1 17 1 17.3 16.1 15.6 14.6 150 12.2 9.1 100 50 2005 2006 2007* 31.12.2004 31.12.2005 31.12.2006 31.12.2007 Commerzbank share price DJ Euro Stoxx Banks CDAX (Banks) 5 * until December 28, 2007
  6. 6. AGENDA 1 Introduction to Commerzbank 2 Improving profitability in PBC 3 Growth in a competitive market 6
  7. 7. Private and Business Customer Division focuses on affluent clients Position / USP Strategic Program D Branch business Branch business: •No.1 for business I customers Leverage Platform S •Sustained growth in target T •No. 4 in German branch R business / private banking groups I B Direct Banking Direct Banking: U Grow Customer Base T •No. 1 B2C online broker •Further growth in banking, esp. I •First choice in online banking g O in current accounts and short short- for modern private investors N term deposits Asset Management: Asset Management P Grow Asset Base P •No. 5 i G N in German asset t R •Growth program “Alpha” to R O management with € 63 bn O AuM invest € 100 m with target D D of € 100 bn AuM until 2011 U C K Retail credit Retail credit: T Increase Profitability I I •No. 2 in residential real estate O financing in Germany • Risk return oriented credit O portfolio management on N (€ 43 bn) ( ) N newly established platform l t bli h d l tf 7
  8. 8. PBC shows sustained growth … Solid growth momentum Strong profit improvement Revenues incl LLPs incl. Operating profit in € m in € m +16,8% +83,9% 2.603 401 2.405 287 2.229 218 2005 2006* 2007 2005 2006* 2007 Increased profitability Initial Customer growth Operating RoE (Basel I) Number of clients in % in Mio. +14,6% 16,2 5,5 10,9 5,1 8,5 4,8 2005 2006* 2007 2005 2006 2007 8 * Before one-offs due to integration of Eurohypo
  9. 9. … with a consistent performance oriented market communication performance-oriented Promotion trucks Marketing cooperation CB branches opened Saturday Stiftung Warentest Co ntr wide e ents Country ide events 13,000 customers p a 13 000 c stomers p.a. planned branches, 790 branches 30k prospects prospects, Commerzbank Commer bank test winner inner 2.3k new clients Berlin campaign Brand value ranking Call Money Plus Account Börse Online Commerzbank is the achiever of Special marketing campaign the year with an increased value comdirect Tagesgeld PLUS comdirect: targeting Berliner Sparkasse of about 30% up to € 2.093 bn introduced November 2006 Online Broker of the year 2006 Current Account Online Thomson Extel Survey 2007 €uro/Finanzen Stiftung Warentest Comdirect: Current account Best Fund Management Firm cominvest: Achiever of the Best equity fund in Germany No. 1 in €uro/Finanzen in Germany year 2007 €uro/Finanzen 9
  10. 10. AGENDA 1 Introduction to Commerzbank 2 Improving profitability in PBC 3 Growth in a competitive market 10
  11. 11. Under present market conditions the best product to attract customers and gain growth momentum is the current account transparent / fast moving Mortgage Investment s Funds Market Condition Deposits D it Retirement plan Current intransparent / Account slow moving low sensitivity / high sensitivity / low Customer behavior / high Willing to switch 11
  12. 12. Commerzbank pricing strategy – Three stages of developing our customers 3 Interact 2 Contract Stage 1 Attract Goal Gaining customers: Retaining customers: Servicing customers: Highly attractive Offer interesting Get the customers into product offers and p p prices products at fair p a long term p g partnership p prices by serving their individual needs • Fixed-term deposits Examples • Current Account p • Asset allocation / • Money market management • Fixed-term deposit account to business • Money market • Mortgage customers account (comdirect) • Certificates • P Payment transactions • Consumer finance • Investment account • Retirement Plan • Insurance 12
  13. 13. Successful 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 private private customers in Germany* (in %) customers newly contracted in 2007 ~4 m p.a. ~7,3% 1,8 2,2 2,2 2,3 ~290.000 290 000 4,7 7,5 26,3 26 3 58,2 Estimate of total Commerzbank contractible current share accounts in the market 13 * Due to multiple account relationships total > 100%
  14. 14. Contracting works as well - Systematic new client development process enables successful cross-selling Successful implementation New client process EXAMPLE Number of additional products sold to T+1 T+2 T+3 T+4 T+5 T+6 new customers in the 1st year 59% 27% 14% T+7 1 2 >3 Type of products sold to new customers in 2007 Statistical analysis shows the highest selling probabilities in the first six months Insurance Up to five monthly mails are sent to new clients, Loans 7% Deposits 10% starting from first contracted signing 37% Each mailing focuses on a specific product Securities 19% Via coupons the option for an easy response is accounts given 27% In parallel to the mailing the relationship-manager Credit Cards gets informed 14
  15. 15. Summary • Two brand strategy can be successful, although customer base with overlaps • Marketing needs to be new customer oriented with the respective cross-selling structure i place i lli in l • Real time technology is a must only for certain customers; others are service and advise-oriented 15

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