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May 10, 2004

Commerzbank’s First Quarter 2004:
Major earnings increase in operative departments

The Commerzbank Group started off 2004 with a jump in earnings. As previously announced, Group profits increased from 3m euros in the first quarter 2003 to 254m euros in the first quarter of this year. This was the best result since the autumn of 2000.

The results for the operative departments demonstrate that the Bank has made great progress, not only in general, but also in each separate business area. In the retail banking department, the positive development evident during the last year continued. The operative result increased to 122m euros after 33m euros in the same period 2003. For the year as a whole, retail banking profits plan to be around 25 percent higher than last year.

Asset management successfully completed the adjustment process. On the basis of clearly higher commission income and a continued decrease in costs, the operating result improved to 52m euros. For all of 2004, operating results are expected to increase a good 40 percent.

In a difficult economic environment, the Corporate Banking and Institutions department earnings were lower than a year ago. But at the same time loan-loss provisions and operating costs decreased, producing an operative result of 118m euros versus 152m euros in the first quarter of 2003. For all of 2004, Corporate Banking plans to earn more than 500m euros, reflecting a strong increase compared to the previous year.

The securities unit did extremely well during the quarter. With continuing lower operating costs, the operating result improved to 120m euros. This was almost three times higher than for the same time last year. For 2004 as a whole, profits should also show a strong increase, and not solely from trading.

All in all, the Commerzbank Group made great progress in the first quarter to achieve its medium-term goals of more than 10 percent after-tax return on equity and a 60 percent cost/income ratio. "The figures for the income statement in the first quarter of 2004 demonstrate that the tough and, in some cases, drastic measures in the past - the cost-cutting offensives, the concentration on core business activities and not least September`s revaluation operation - are bearing their first fruit" concluded Klaus-Peter Müller, chairman of the Board of Managing Directors.

NOTE: The complete Interim Report may be found here