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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
3
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
10
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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