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Lower costs through streamlining and differentiated approach
to branch network
The marked decline in costs is largely attributable to the streamlining of our
branch network. With its 727 branches, Commerzbank now has a powerful and
efficient network in Germany, covering all the key regions and target groups in
retail banking. No further closures are planned.
Parallel to this, we were able to implement the decision to pare down the
workforce without straight dismissals more rapidly than planned and in a
socially acceptable manner.
Success through high-quality advice and solutions in line with needs
The example of the Neuer Markt, which has suffered especially hard, underlines the
importance of a clean portfolio structure not least, or even above all, in business
involving retail customers. Thanks to improved consulting modules, we now have
one of the most modern and efficient customer information systems, enabling us
to boost customer satisfaction and loyalty further, even though the stock market is
no longer booming. We can offer our customers an updated check of their custody
account at any time; the allocation in the customer’s account is compared daily with
the model allocation of Commerzbank for the relevant class of risk. On the basis of
charts, deviations can be discussed and, if necessary, corrected.
Our successes in investment-fund business are also due to our “best-choice”
approach to consulting, which – building upon a structured and objective selection
process – picks the best products for the customer from the funds of our
subsidiary COMINVEST and third-party fund companies. This is what we understand
by objective and customer-oriented advice.
Using an open fund architecture, we not only placed successful ADIG funds
but also more than doubled sales of non-Group products to roughly a third of
the net inflow into funds (excluding money-market funds) in 2002. At the same
time, Commerzbank is one of the most innovative providers of structured
products in Germany. The “best start” certificate, introduced in mid-2002, represents
a solution for the investment needs of the retail customer, for which none
of our competitors have managed to offer anything similar up to now.
We sold a record volume of 71.5bn for our flagship, Haus-Invest, which is the
only German open-ended property fund to be given five stars by Moody’s. This
proved instrumental in the fund’s success in attracting 25% of the overall inflow
into German open-ended property funds.
Through the introduction of mechanical scoring instruments, we are making
lending decisions quick and uncomplicated. This support for sales staff that is
geared to customers and reflects their needs has strengthened Commerzbank’s
position in the difficult market environment and has helped to make earnings
more stable.
Clearly-defined demands as regards customers’ creditworthiness and the
profitability of our business have led to a distinctly improved average margin for
our existing loan portfolio, while reducing the volume of new business compared
with 2001. On the other hand, we achieved a substantial increase in business
for which we act as intermediaries. Our consumer-loan portfolio contracted
somewhat on account of the economic situation. We maintained our volume
in lending to business customers, while achieving an improvement in quality
thanks to the respective credit-approval systems.
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