DIRECT BROKERAGE 2001

Transcrição

Annual Report 2001
comdirect bank Aktiengesellschaft
Pascalkehre 15
D-25449 Quickborn
Germany
Telephone: +49 4106 / 704-0
Fax: +49 4106 / 704-11 00
Internet: www.comdirect.de
E-mail: [email protected]
Mobile WAP: wap.comdirect.de
DIRECT
BROKERAGE
2001
Annual Report 2001
comdirect bank Aktiengesellschaft –
a company of the Commerzbank Group
w w w. c o m d i r e c t . d e
Annual Report 2001
Pascalkehre 15
D-25449 Quickborn
Germany
Telephone: +49 4106 / 704-0
Fax: +49 4106 / 704-11 00
DIRECT
BROKERAGE
2001
Annual Report 2001
DEVELOPMENT
Volume of total assets under custody as at 31.12. (in € billion)
Number of customers as at 31.12. (in thousand)
Number of orders (in million)
Index-based performance of comdirect share in 2001
(Index: 2 January, 2001 = 100%)
Placed orders
comdirect
2.1
100
10.3
2.3
80
1997
1998
2000
2001
6.6
4.5
1996
5.1
3.9
0.4
1997
1998
1999
1.1
1.1
0.9
1.1
0.3
0.4
3.0
1.6
60
40
1.8
2.3
1.5
1999
5.6
6.3
1.0
0.9
0.6
1996
7.0
1.5
2.6
114
165
109
61
31
73
226
277
8.7
2.2
NEMAX 50
120
9.0
8.9
Funds volume
15.3
10.2
Executed orders
Deposit volume
615
649
Portfolio volume
539
577
Direct brokerage customers
Total customers
20
0
2000
2001
1996
1997
1998
1999
2000
2001
Jan. Febr. Mar. April May June July Aug. Sept. Oct. Nov. Dec.
The year 2001 at a glance
KEY FIGURES
Customer figures
Total customers
Business unit figures
Total assets under custody
Assets under custody per customer
Direct brokerage
Placed orders
Executed orders
Order activity per account (average)
Ratio of funds per executed order
Order volume per executed order
Securities turnover
Portfolio volume
of which – funds volume
Portfolio volume per direct brokerage account
Funds volume per direct brokerage account
Group
2001
AG
2001
Group
2000
648,611
615,211
616,891
583,774
577,465
539,195
€ million
€
9,001
13,877
8,798
14,262
10,160
17,594
%
€
€ million
€ million
€ million
€
€
8,692,108
6,565,206
11.4
6.1
3,053
20,045
6,699
1,093
10,889
1,777
7,919,669
6,260,156
11.2
6.3
3,003
18,800
6,553
1,089
11,225
1,865
15,310,536
10,323,367
27.0
3.7
3,545
36,599
8,111
1,127
15,043
2,090
Deposit business
Deposit volume
€ million
Deposit volume per customer
€
Financial figures
Net commission income
€ thousand
Net interest income before provisions
€ thousand
Pre-tax profit
€ thousand
Earnings per share
€
Balance-sheet total
€ million
Equity
€ million
Equity ratio
%
Cost-income-ratio*
%
Pre-tax return on revenues*
%
Employees figures
Number of employees
Employees full-time basis
Direct brokerage accounts per employee full-time basis
*without extraordinary result and restructuring expenses
Group
2001
AG
2001
Group
2000
2,302
3,551
2,245
3,639
2,049
3,548
93,018
74,083
– 150,580
– 1.14
2,974,011
578,110
19.4
129.1
– 30.1
91,719
72,610
– 230,267
– 1.46
2,898,446
573,630
19.8
92.1
6.9
190,863
57,717
25,565
0.03
2,875,105
739,698
25.7
88.9
10.3
1,291
1,110
554
1,117
937
623
1,536
1,287
419
Our annual report is published
in German and in English.
In case of doubt, the German
version is authoritative.
Concept and realisation:
CAT CONSULTANTS, Hamburg
DEVELOPMENT
(Index: 2 January, 2001 = 100%)
Placed orders
comdirect
2.1
100
10.3
2.3
80
1997
1998
2000
2001
6.6
4.5
1996
5.1
3.9
0.4
1997
1998
1999
1.1
1.1
0.9
1.1
0.3
0.4
3.0
1.6
60
40
1.8
2.3
1.5
1999
5.6
6.3
1.0
0.9
0.6
1996
7.0
1.5
2.6
114
165
109
61
31
73
226
277
8.7
2.2
NEMAX 50
120
9.0
8.9
Funds volume
15.3
10.2
Executed orders
Deposit volume
615
649
Portfolio volume
539
577
Total customers
20
0
2000
2001
1996
1997
1998
1999
2000
2001
KEY FIGURES
Customer figures
Total customers
Direct brokerage
Placed orders
Executed orders
Securities turnover
Portfolio volume
Group
2001
AG
2001
Group
2000
648,611
615,211
616,891
583,774
577,465
539,195
€ million
€
9,001
13,877
8,798
14,262
10,160
17,594
%
€
€ million
€ million
€ million
€
€
8,692,108
6,565,206
11.4
6.1
3,053
20,045
6,699
1,093
10,889
1,777
7,919,669
6,260,156
11.2
6.3
3,003
18,800
6,553
1,089
11,225
1,865
15,310,536
10,323,367
27.0
3.7
3,545
36,599
8,111
1,127
15,043
2,090
Deposit business
Deposit volume
€ million
€
Financial figures
€ thousand
€ thousand
Pre-tax profit
€ thousand
Earnings per share
€
Balance-sheet total
€ million
Equity
€ million
Equity ratio
%
Cost-income-ratio*
%
%
Employees figures
Number of employees
Group
2001
AG
2001
Group
2000
2,302
3,551
2,245
3,639
2,049
3,548
93,018
74,083
– 150,580
– 1.14
2,974,011
578,110
19.4
129.1
– 30.1
91,719
72,610
– 230,267
– 1.46
2,898,446
573,630
19.8
92.1
6.9
190,863
57,717
25,565
0.03
2,875,105
739,698
25.7
88.9
10.3
1,291
1,110
554
1,117
937
623
1,536
1,287
419
DIRECT BROKERAGE 2001
Annual Report 2001
TABLE OF CONTENTS
02
Foreword by the Board of Managing Directors
47
Financial statements 2001
07
11
15
19
23
27
The share
Products
Marketing and communication
Service
Technology, IT and innovations
Employees
48
49
50
51
52
53
54
Income statement AG
Balance sheet AG
Income statement Group
Balance sheet Group
Statement of changes in equity
Cash flow statement
Notes for the financial year ended 31 December 2001
31
Group management report 2001
82
Auditor’s certificate
32
37
39
Market development
Development of business
Changes in the Board of Managing Directors and the
Supervisory Board
Risk report
Prospects
Our strategy
Operational planning for 2002
Outlook
84
Report of the Supervisory Board
86
Structure of the comdirect group
Board of Managing Directors
87
Financial calendar
88
Contact
40
43
44
45
45
1
To our shareholders, ladies and gentlemen,
We look back on the most difficult year to date on the stock market
since comdirect bank AG was founded. Not only was private investors'
confidence in the stock market shattered, which meant lower numbers of orders for online brokers, but share prices in the Neuer Markt,
where the comdirect share is listed, also plunged, a fall which our
share was also unable to elude. At the end of 2001, it stood at
€ 10.65 (2000: € 24) in Frankfurt. Our competitors as well were hit by
last year's dramatic developments in the market. In a direct comparison, however, the comdirect share fared very successfully: by gaining
more than 70,000 new clients, we braved the adversities last year to
successfully maintain our leading position as Germany's and Europe's
largest online broker.
Serious reaction to changed conditions. We have adjusted our
internal structures to the changed overall conditions for business,
launching a very ambitious cost-cutting programme. These measures
were needed in order to present an acceptable result to you, our
shareholders, even despite the problematic bourse environment
throughout the 2001 business year.
Precautionary personnel measures. All told, we achieved cost savings of around € 82m in the year under review. In no instance have
our aggressive reductions caused the quality of our individual services
or indeed the general level of service to be lowered. We were able to
retain the expertise of our staff by means of personnel measures
which are exceptional in the banking industry. Prominent among
these was the introduction of short-time working last October.
Growth through new products. Last year we introduced more new
products than ever. We are therefore offering our existing and our
new customers attractive alternatives to traditional investment in
2
COMDIRECT BANK STRENGTHENS
ITS LEADING MARKET POSITION
IN 2001.
Despite the generally very
difficult environment, we were
able to assert and further
improve our position as Europe's
leading online broker, with
roughly 649,000 customers.
equities and we are tapping new earnings potential for our bank.
Investment-fund savings plans in particular were outstandingly well
received. In the form of “comdirect wachstumsrente” and “comdirect
wachstumsrente plus”, we offer two alternatives for private asset
accumulation and old-age provision. In this connection, we have
found a partner in Cosmos Lebensversicherungs-AG, the leading German direct insurer, possessing like ourselves considerable direct-sales
experience. A strong partnership for the benefit of our clients. We
already began last year to prepare our IT architecture to accommodate new groups of customers.
Leading website. With an average of roughly 160 million page
impressions and 50 million visits per month, www.comdirect.de is
Germany's leading financial portal on the internet. Our website also
represents an intangible asset, equivalent to that of a major brand
name. Efficient, intelligent, direct, safe – those are the major values
associated with our brand personality. In an exemplary manner, we
make information on all aspects of securities easily available at the
click of a mouse, in a readily intelligible form with explanations, as
numerous awards last year once again confirmed.
Our European subsidiaries. Business performance in France and
Italy failed to live up to our planning and expectations in 2001. Breakeven point cannot be reached in the time originally intended. We have
drawn the consequences of this and are disposing of these two subsidiaries. However, the valuation of the two investments has obliged
us to make considerable valuation allowances on our investments in
the comdirect bank AG and has caused extraordinary expenses
for restructuring in the comdirect bank group. In future, we will
concentrate entirely on the markets in which we are successfully
positioned: Germany and the United Kingdom.
Focus on the customer. In order to be able to cope even better with
the future challenges of the market, we created a new internal organisation for our company in 2001. The crucial element is the promotion
and strengthening of existing contacts with customers through our
newly created customer relationship management (CRM).
3
Bernt Weber
Christian Jessen
Hans-Joachim Nitschke
Dr. Andre Carls
In combination with our data warehouse, which went into operation
in 2001, CRM will be able to offer our customers a new, more personal service quality: targeted information and also products and services
specially designed to meet the wishes and needs of each individual
customer.
Investment banking. Last year, we linked up product management
with investment banking. In terms of both earnings and innovative
force and the development of products, this move gives us a clear
edge. What is more, our value chain will be systematically extended by
means of synergies in the purchase of products. Unlike our competitors, we have managed to hold our cost and organisational structures
flat in investment banking. To enable us to draw upon the necessary
resources for handling IPOs when the market situation changes, without having to build them up ourselves or keep them at the ready, we
concluded a first cooperation agreement last September with the
Frankfurt securities trading house Steubing AG. Geared to institutional investors, Steubing AG is especially active as a designated
4
sponsor and provides the research. comdirect itself takes care of all
the capital-market questions and is responsible for placing issues with
private investors.
We wish to thank our staff. During the past year, our employees
showed great commitment to supporting all the measures designed
to strengthen our group. The introduction of voluntary reduced working hours and short-time working was a clear signal to them. Each of
them recognised that comdirect had acted in a responsible manner in
order to be in a position to offer its employees safe jobs in the long
term as well. At the same time, we managed to reduce our workforce
perceptibly without dismissing personnel – we did this solely by
imposing a recruitment freeze at an early stage and through normal
staff turnover.
Thanks to our ambitious
cost-cutting programme, we
managed to realise savings of
more than € 82 m – while
continuing to set standards as
regards quality and service.
What does our future look like? We now know that, even in economically difficult times – and 2001 was undoubtedly one of these –
comdirect can hold its own thanks to its approach to online brokerage. The parent bank's result from ordinary activities was in the black.
Without having to rely solely on economic performance picking up,
our bank continues to have promising future prospects. We are
emerging stronger from the difficult period that lies behind us,
enabling us to respond immediately and forcefully to the great
challenges presented by a livelier stock-market environment. We have
excellent technical resources, the motivation of our employees is
better than ever. We will seize upon all the potential for increasing
value that we can so that the comdirect share remains an attractive
investment for you.
We thank you for the trust which you have shown in us.
Bernt Weber
Christian Jessen
Dr. Andre Carls
5
BEST PERFORMANCE
AMONG GERMANY'S
ONLINE BROKERS.
The downturn on international stock markets that was emerging at end-2000 continued last year. The comdirect share, one of
the heavyweights of the Neuer Markt, was unable to elude the general trend. All the same, among German online brokers,
comdirect – thanks not least to the continuing solidity of its equity base – proved itself to be a strong company with a future.
The share
2001 on the stock exchange. For most investors, the performance
of stock markets in 2001 was more than disappointing and even the
analysts' forecasts were frequently not achieved. The Dax ended the
year about 20 % lower than 12 months previously, while the Nemax
50 even fell by more than 59% in the course of the year. The decline in
equity prices went hand in hand with weaker turnover in trading centres. The logical consequences for comdirect were lower commission
earnings and a drop in its share price.
The price performance of the comdirect share. On the last trading day of 2001, our share was more than 65% down on its issue price
in Frankfurt. This was primarily due to the weakness of the stock market; the events of September 11 had an additional impact, triggering
another fall in equity prices. The Neuer Markt, where comdirect is
listed, was particularly hard hit. comdirect’s share price developed
The turbulences in the
international financial markets
put pressure on the comdirect
share as well.
virtually parallel to that of the Nemax 50. Last September, our
company's share fell to an absolute low at € 3.95. By year-end, the
price had recovered at times by more than 170 %. On December 28,
2001, the last trading day, the comdirect share was quoted at € 10.65
in Frankfurt.
Good prospects for comdirect share. Online brokerage and direct
banking remain growth markets. Analysts, investment bankers
and market researchers are unanimous about this. The increasing
acceptance of the internet by all age groups and strata of society
guarantees the growth potential for efficient, reasonably priced
financial services of the kind that comdirect offers. The broadening
of our product portfolio to cover the selective accumulation of assets,
the reorganisation of many of our units and last year's ambitious
cost-cutting programme are just three reasons why the comdirect
share has good prospects.
7
The share
We are optimally equipped when stock exchanges regain their
momentum. As Europe's leading online broker: with a broad customer
base. With an attractive range of products. With a forward-looking
organisation. With the goal of always providing the best service.
First annual general meeting in Hamburg. On May 10, 2001, we
invited our shareholders to the first public annual general meeting of
comdirect bank AG in the Congress Centrum Hamburg (CCH), and
roughly 1,000 of them joined us there. 81.7 % of the bank's capital
was represented. The lively participation in the AGM underscores the
extraordinary interest shown in the development of our company.
Performance 2001 of comdirect share (in €)
25
20
15
10
5
0
Jan.
8
Febr. March April
May
June
July
Aug. Sept.
Oct.
Nov.
Dec.
Key figures for comdirect share:
€ 25.50
Highest var. price 4.1.01:
€ 3.95
Lowest var. price 24.9.01:
€ 11.79
Middle market price:
€ 23.50
Opening quotation:
€ 10.65
Closing quotation:
Performance:
– 54.68%
Market Cap
€ 1,496 million
closing quotation:
Fluctuation margin:
146.35%
Investor relations. An open communications policy is indispensable
for creating transparency and offering investors clear indicators for
their decisions. The constant dialogue with the financial community
was especially important for us last year as well. Talks with analysts,
private investors and the exchange of views with institutional
investors are firm components of our investor relations activities. We
presented comdirect bank to more than 50 European institutional
investors through roadshows in Frankfurt, Copenhagen and Paris. At
the European Financial Services Conference in Venice in March 2001,
we made our company familiar to an international financial public. On
the internet, under www.comdirect.de, we have reformulated our corporate profile and the investor relations pages in two languages.
Apart from detailed information on the company, current quotations
for the comdirect share, press and ad hoc releases, and also analysts'
opinions can be found there. Annual and quarterly reports and
also various archive functions round off the palette of information
provided.
9
IN ONLINE BROKERAGE,
COMDIRECT IS
WELL-POSITIONED.
At the same time, interest in financial services is growing right across our target groups in Germany. Last year, the emphasis
switched more strongly to the accumulation of private assets and old-age provision. Thanks to the service and quality it offers,
its prices and well-presented information combined with new, attractive products, comdirect has an excellent position.
Products
Customised product innovation. For comdirect, 2001 was a year of
extensive new developments and product modifications. The main reason for this was the growing preference of our customers for products
geared to asset accumulation. But comdirect also offers a series of
attractive innovations for customers with a stronger trading orientation. These include the possibility of trading foreign shares online as
easily, as quickly and as reasonably as German equities via XETRA
Stars. And the options & futures trading centre for Eurex trading, above
all, though, the advantages of LiveTrading, our attractive scheme for
off-the-floor trading.
Integrated investment banking and product management. Most
of what comdirect offers are financial products that we either develop
ourselves or acquire from cooperation partners, which are then modified and marketed by our product management for certain target
Fulfilling the wishes of our
customers through specially
tailored products – this is the
task which we must successfully
tackle.
groups. These include the IPOs we have managed ourselves, which we
select to reflect the special requirements of our clients. Here we rely
upon our own strong placing power in retail business: with over
649,000 customers, we offer issuers an effective platform.
Official selling agent status. For transactions for which Commerzbank AG acts as lead manager, comdirect is the official selling agent.
Once the markets pick up again, we expect, for example, even better
access to IPOs and consequently an even more diverse portfolio of
offerings for our customers. What is more, in this way comdirect is
securing for itself an independent position within syndicates and is
strengthening its own earnings power. A further innovation is our
readiness to work together with external partners that complement
Commerzbank AG.
11
Products
Fund-based savings a growth segment. The introduction of
funds savings plans last year aroused particular interest on the part of
our customers. These sophisticated products involving regular saving
as a form of old-age provision proved very popular in 2001. By including new investment fund companies last year, we systematically
broadened our range of funds. By end-2001, comdirect customers
could choose between more than 3,500 funds from 70 capital investment companies. In the case of 2,700 or so funds, the issue premium
has been reduced for comdirect customers; the discount amounts to as
much as 100%.
comdirect launches its own funds. For short-term investments, we
introduced the “comdirect EURO Money Market ADIG” fund last
August. This vehicle, developed jointly with ADIG-Investment, offers an
alternative to fixed-term deposits or overnight money. Since last
12
October, five comdirect fund-of-funds have rounded off our portfolio.
The funds-of-funds, launched by ADIG-Investment specially for
comdirect, present five different opportunity/risk profiles and therefore
offer a target-oriented form of investment. An additional advantage
for our customers is that, like the units acquired through fund-based
savings schemes, comdirect's own fund products do not incur any
custody charges.
Strategy planner makes fund selection easier. In order to provide
active support for comdirect customers selecting their fund by internet,
we have developed an interactive strategy planner. This works out
the individual investor profile, providing the information required for
individual investment decisions.
The focus is shifting increasingly
to the selective accumulation of
assets. Through our packages for
making provision for old age, we
offer our customers solutions for
their personal needs – with and
without state support.
Private old-age provision with strong partner. More and more
people are recognising the need for private old-age provision. Together
with Germany's leading direct insurer, Cosmos LebensversicherungsAG, we have developed fund-based pension insurances exclusively for
our customers. First, “comdirect wachstumsrente plus” – a fund-based
pension insurance incorporating state support (the so-called Riester
pension). And second, “comdirect wachstumsrente” – similarly a fundbased pension insurance plan, but offering the option of having the
capital paid out tax-free after twelve years, and also including a dynamic
component, if so desired. The different variants present comdirect
customers with an attractive form of private old-age provision.
Wider range for trading-oriented customers. Last year, we extended our range of products in off-the-floor trading, LiveTrading. We currently offer our customers 18 issuers for equities, warrants and certifi-
cates in this segment, the largest number of trading partners assembled by German online brokers. In the current year as well, comdirect's
LiveTrading will be systematically expanded. Co-operating with
Deutsche Börse AG, comdirect was a preferred partner of Xetra Star
from its launch onwards. Our customers are able, therefore, to trade
foreign equities in the Xetra Star programme as easily, as quickly and
as reasonably as German equities – even from a single share upwards.
O&F centre for Eurex trading. Since last November, we have made it
possible for our customers to trade in selected derivatives on the Eurex
– initially with long and covered short options on equities and indices.
In 2002, comdirect is to add uncovered options for Eurex trading. Our
new options & futures trading centre offers comdirect customers the
highest professional standards, including all-round service for Eurex
trading.
13
ON AVERAGE, WOMEN
ACHIEVE BETTER GAINS
THAN MEN ON THE
STOCK MARKET.
Reflecting the wishes and information needs of our customers, we made further decisive improvements to the quality of our
service last year. All of comdirect's customers have access to the same high-quality latest news items and background information
as well as to the various possibilities for direct trading in securities on German and international stock exchanges. Surveys
have shown, however, that women are apparently more successful in using the tools provided.
Closer contact with customers. In order to provide stronger support for all customers, no matter whether they are trading-oriented or
more interested in building up their assets, we refocused our organisational structure last year. One important feature was the coordination of product management and service, internet website and communication, geared to specific customer groups. In line with the
investor profile of our customers and their individual wishes, we can
develop specially designed products and actively market them. We are
now also in a position to adopt a more targeted approach visitors to
our website whom we should like to acquire as comdirect customers.
Germany's leading financial portal. In a comparison of more than
1,400 brokers in nine European countries, comdirect claimed an
unchallenged first place last year. It was considered to offer the best
tools, first-class service and reasonable terms and conditions; in a
In 2001, we prepared the
ground for even more searching
marketing activities. As a result,
we can have more direct and
consequently more personal
contact with our customers than
in the past.
study by NFO Infratest, our internet site was the most attractive in the
financial services area. As far as financial information on the internet
is concerned, www.comdirect.de, with page impressions running into
a three-digit million figure per month, retains its uncontested first
place. Last year, we managed to secure and strengthen our leading
position as Germany's foremost financial portal.
Co-operation in web marketing. Last year, we made use of our
expertise and the affinity of our customers with the internet to gain
new customers in co-operation with WEB.DE AG. www.web.de is one
of Germany's leading internet communication portals; with 7.8 million users, it already reaches practically one in three of Germany's
internet users.
comdirect's “Fonds-Sommer”. Another successful marketing cam15
paign was comdirect's “Fonds-Sommer”. From June to August, new
customers were able to invest in six selected funds without having to
pay any offering premium. Above all, investors with a long-term orientation were convinced by this especially reasonable introduction of
the quality of our services. Parallel to that, a sales campaign was
organised at German airports.
“Fest & fonds”. The limited-period “fest & fonds” campaign provided comdirect customers with an intelligent way of combining the
advantages of high-interest fixed-term deposits with those an investment in a fund. The minimum investment was € 5,000. Half of the
amount was invested for six months at a fixed interest rate of 6 %,
while the other half flowed into selected funds. A choice was possible
between six different funds with reduced offering premiums, including equity-based, bond-based and sectoral funds.
16
“Ein Herz für Trader”. In order to attract traders seeking a new
broker to comdirect, we introduced our campaign “Ein Herz für Trader”
last autumn. This campaign, involving special rates for custody
accounts and transaction charges, provided many people with an
incentive to come to comdirect.
“Lucky Stocks” custody account. The “Lucky Stocks” custody
account proved to be a successful campaign to gain new customers.
In order to enable those interested to participate in Neuer Markt
activities even in difficult times, new customers received one share
each of ten companies listed in this segment.
Electronic PostBox cuts costs. So that we can make financial reports
and securities contract notes available even more quickly, we have
developed the “comdirect PostBox”. Within the secure online area,
The best tools, first-class service
and reasonable terms and
conditions: in a Europe-wide
survey conducted by the
independent research company
Blue Sky in 2001, comdirect
was given an unchallenged first
place among the 1,400
companies covered.
comdirect customers can have internet access right around the clock to
– and electronically process – the information they seek, such as securities contract notes or the latest financial report. At the same time, we
also use the PostBox as a new, reasonably-priced sales instrument –
with offers geared to the needs of individual clients. What is more, the
PostBox enables us to cut our postal charges dramatically.
gories of navigation, availability, information content, personalised
pages and operating systems. Our specialists are constantly improving
what we offer via our internet website. For example, research was
added to the financial tools and the information which we provide;
the information service on funds, Fonds-Informer, was implemented;
and the Broker-Academy was launched.
www.comdirect.de – the number 1 financial site. Traditionally
and by a broad margin, comdirect is the leading German financial site
on the internet: comdirect registered up to 84 million page visits per
month in 2001 and page impressions in the three-digit millions – a volume of traffic and user figures otherwise unknown in the area of
online financial information, which proved stable despite the weakness of the markets. Several times over, the site gained first place or
registered the best values in independent comparisons for the cate-
BrokerPoker: Germany's most popular bourse game. Last November, we started the fourth round of the comdirect bourse game, BrokerPoker. Together with our partners N24, T-Online, stern.de and Börse
Online, we want to introduce existing BrokerPoker customers, new customers and anyone else who is interested to the internet and to make
them familiar with the stock market. Our success speaks for itself:
thanks to its realistic simulation of securities transactions, BrokerPoker
has become Germany's leading bourse game.
17
WE ARE ECONOMISING –
BUT NOT ON SERVICE.
The cost-cutting offensive was the predominant topic in the service division as well. Despite the introduction of short-time working due to the decline in orders from customers, the generally acknowledged high quality of our customer service was guaranteed
at all times. The refocusing of our service on the requirements of a successful CRM was another challenge last year, and by rising
to it, we have equipped ourselves to deal with the future.
Service
Change of trend in customers' demands. The advances of information technology make it possible for private investors to have
immediate access to extensive price information on equities, warrants
and funds. With the spread of the PC – in 1993 there were 12 personal computers per head in Germany compared with 39 today – and the
surge in the number of internet users in the country – from 4.4 million
in 1997 to 27.8 million by end-2001 – the number of people grew who
employ this medium to invest independently of advisers at bank
branches.
In mid-1999, half of our customers used the telephone to conduct
their transactions – securities orders or money transfers – through our
call centres; the other half opted for the internet. By end-2001, roughly 95 % of orders reached us via the online media we offer and only
around 5 % by telephone. This trend is also reflected in the talks we
In order to offer our customers
service that is tailored even more
to their individual needs, we
have started to adapt our service
division to the overall structures
of our clientele.
have with customers. Whereas the focus was purely on the transaction
in 1999, a marked shift towards areas requiring more intensive
consultation was registered last year. Examples of this are special
questions relating to the settlement of securities or the request for
information on asset accumulation and provision for old age. We
have responded in the form of various measures.
Service quality more focused. This holds true for our Quickborn and
Kiel outlets and also for our call centres and for the back-office areas.
We pass on calls from comdirect customers directly, for example, to
the service team best suited for dealing with their wishes when they
contact the call centre. Above all, customers who are interested
in building up their assets can be looked after by comdirect more
intensively as a result. But traders also benefit from our new service –
in the form of even more professional trading-oriented support.
19
Service
Active service centre. Thinking on our customers' behalf – this
serves as a motto for the advanced training of our staff. In future, we
do not only want to deal with the wishes of our customers but also
actively offer them new solutions. By telephone, our account managers will draw attention to new products or special campaigns that
might be of special interest for such customers.
Seminars with Handelsblatt. As an extra service for comdirect customers and prospective investors, we held a series of seminars last
year with the Handelsblatt publishing group. The seminars were
designed for beginners as well as for more advanced investors and
experts in equal measure. The topics included investment funds, warrants trading, but also investment strategies for personal portfolios.
The seminars, which we held in various German cities, were publicised
by advertisements in Handelsblatt and attracted interested participants.
20
Trade Society growing. Last year as well, we devoted special attention to the Trade Society. Its members are especially active customers
for whom we have created an exclusive service area. Trade Society
members have a far higher turnover of securities and feel a particularly strong commitment to comdirect. By means of a special programme, we honour the loyalty of these customers in the form of
numerous extra benefits.
How our customers get in touch
with us:
by internet
by telephone:
by IVR:
by fax :
Special team for options & futures. Options & futures trading is an
entirely new comdirect product area. It enables our customers to trade
on Eurex, the world's largest derivatives exchange. For this purpose, a
special team was formed, as comdirect currently handles business on
this futures exchange solely by telephone.
90%
5%
4.5%
0.5%
explanation – a good example being the so-called “Riester pension“ –
call for great background knowledge on the part of our employees.
Extensive courses. Our restructuring measures involve extensive
courses and staff training schemes for the service division. Due to their
direct contact with customers, comdirect's support teams are in the
front line, making our customer service as transparent and individual
as possible. The introduction of such new products as fund-based
savings plans, the “comdirect wachstumsrente” and the “comdirect
wachstumsrente plus” created fresh challenges for the support teams.
They had to acquire considerable product know-how, which is needed
in dealings with customers. Above all, products requiring more
21
ALMOST 20% OF SURFERS
IN GERMANY USE THE
COMDIRECT WEBSITE.
This success is not solely attributable to the financial information available at www.comdirect.de, which has often received
awards. Rapid, easy access through the various consumer terminals – from local PCs to mobile organisers and personal digital
assistants (PDAs), pocket PCs (PPCs) and mobile telephones of the next generations – is decisive. For this purpose, we created
a new technical platform last year, with the aid of which future new systems can be integrated without any problems into our
IT structure.
Software development costs reduced. Whereas it was previously
necessary to reprogram the entire processing and storage software
completely for every new terminal system, it is now sufficient to adjust
the presentation software. The newly developed multi-tier architecture
ensures a distinct reduction in our software development costs. It also
generates entirely new synergies and possibilities for extending our
financial processing and data storage. For new products and services –
using the internet, for example, or a personal digital assistant (PDA) –
only a single data level has to be altered; special interfaces ensure the
smooth transfer of data. At the same time, thanks to the multitier architecture, we can make new applications available far more
quickly to our customers.
We seek to fulfil our customers'
wishes as well as possible; our
IT division provides us with all
the necessary information.
IT solution for the B2B area. To enable external providers of financial services to maintain several comdirect custody accounts for their
clients, we are developing a new software solution. It will then be possible to buy or sell securities for an entire group of clients on a neartime basis, for example – classified according to a previously set percentage rate for each individual client. Without a solution of this kind,
every single order would have to be placed separately for each client,
which would take longer and could entail price fluctuations. The first
talks with asset managers indicate that there is great interest in this
new product.
23
Basis created for financial planning. With our strategy planner for
personal asset accumulation, our IT division took the first step
towards broadly-based financial planning by electronic means. We will
systematically expand this area with the goal of providing other
groups of customers as well with new planning tools.
Virtual PostBox successfully implemented. The introduction of the
electronic PostBox, giving comdirect customers the opportunity to
receive the latest financial reports and contract notes via internet,
was another major focal point in our IT activities last year. For this
innovation, we worked upon and introduced numerous technical
changes, thus ensuring smooth and rapid processing of the data. The
reasonably-priced PostBox is now used by more than half of our
customers as a welcome alternative to normal letter post.
24
TIVOLI boosts security. Last year, we introduced a new central
management and monitoring software, known as TIVOLI, for our
IT systems. It makes possible round-the-clock monitoring of all
systems without the need for an operator on the spot. In the case of
irregularities, an automatic alarm is immediately sent to the standby
service. TIVOLI also ensures the optimal use of capacity and the
availability of systems. In addition, the introduction of TIVOLI has led
to perceptibly lower costs.
Data warehouse opens new doors to customers. Our new data
warehouse, launched in 2001, will play a key role in the future activities surrounding our customer relationship management (CRM). In the
form of Extraction Transaction Language (ETL), we are employing a
method here which transfers data extremely quickly to the data warehouse. This guarantees that the data are really up to date, which is
For comdirect's IT division as
well, preparation for the euro
was a major issue. No less than
roughly 610,000 securities
accounts plus sub-accounts
had to be converted as of
December 31, 2001.
essential for targeted CRM measures. The underlying principle is that
customers' reactions are fed directly via our electronic campaign
management system into the data warehouse, where they are linked
up with the latest operative data. This knowledge base enables us to
combine new products and distribution campaigns with our customers' wishes and needs in an intelligent manner and to avoid the
wastage that characterises traditional advertising campaigns.
Cost management through IT controlling. In the IT area as well,
we pursued systematic cost management last year. Among other
things, this included scaling back maintenance agreements, wherever
it made sense to do so, and the conclusion of stand-by agreements.
They ensure that we will have all the necessary resources readily
available should we need them and can keep a firm control over our
costs.
Dual provider system optimises data transfer costs. What is the
cheapest way of getting data into the internet? The answer to this
question is provided by our new traffic management. It determines
which of our two providers is the most economically sensible at a
given time – depending on its current free capacity, the speed of
response and the currently valid rate.
25
WE STAND BY OUR
EMPLOYEES, JUST AS
THEY STAND BY US.
This year, we have quite a special reason for thanking our employees. The generally difficult conditions confronted us with special
challenges. We are all the more delighted that, with the cooperation of our staff council, we could adopt innovative personnel
measures, such as the introduction of short-time working, producing a consolidation strategy which finds the support of all those
involved.
Employees
The cost-cutting offensive – a great challenge. After the previous
year's necessary recruitment phase, consolidation was clearly the keyword in 2001. Falling securities turnover and the generally weak situation on stock markets also had an impact on human resources.With the
agreement of all our staff, we managed to create a working-time
model which can be adjusted to the current market situation. This
applies to the service area in particular, which was hardest hit by the
decline in work to be done. The socially acceptable reduction of our
staff capacities was a challenge that was recognised and accepted by
our entire workforce. Starting in the autumn of 2000, we recruited specialists only on a selective basis. Thanks to this recruitment policy, combined with the natural turnover of staff and our alliance to secure jobs,
our workforce shrank throughout the Group by 245 to 1,291 last year.
Creativity, loyalty, integrity, as
well as business thinking and
business actions on the part of
our employees were the
decisive factors in our internal
consolidation process.
Alliance to secure jobs. With the voluntary participation of our staff,
we first concluded with our staff council an alliance to secure jobs. The
aim of this alliance was to cut our capacities for a limited period. More
than 200 employees took the opportunity to reduce their weekly
working hours, take holiday or opt to be available on a call basis.
Through a second step, the compulsory introduction of short-time
working for the majority of staff last October, comdirect assumed a
pioneering role in the banking sector. This procedure enabled us to
avoid direct dismissals and also to retain the valuable expertise of our
employees. In addition, short-time working makes it possible to adapt
staff capacity quickly and flexibly to the development of business. At
end-2001, we were fortunately able to reverse this measure in some
areas.
27
Employees
New organisation model for back office. Through the introduction
of so-called partly autonomous working groups, a novel organisation
model, we have managed to improve back-office productivity considerably. Together with the staff council, we worked out feedback variables for this purpose, making comparison possible for every individual group with other teams. This ensures the transfer of know-how
and allows us to optimise working procedures at a more rapid pace.
Our employees are all pulling in the same direction. Last year as
well, our staff was very much involved in both the topic of cost-cutting
and the overall future development of our company. All areas played
an active role in our consolidation process, revealing new future perspectives in their respective areas of activity. Parallel workshops on
cost awareness and cost management focused attention on potential
savings and the efficient use of available resources.
28
Equipped for the future. Our employees are highly motivated. They
know that, even in difficult times, their company stands by them and
that this will be the case in the future as well. We address a special
word of thanks, therefore, to all our employees. Through their loyalty,
their commitment and their innovative spirit, they have helped
comdirect successfully weather a difficult period.
Our bank restructured itself
in 2001; as a result, we are
optimally equipped to tackle
future challenges.
Number of employees
1,291
1,536
Germany
Abroad
149
1996
761
16
1,387
1,117
394
248
586
174
745
1997
1998
1999
2000
2001
29
GROUP MANAGEMENT REPORT 2001
Securities business in the 2001 financial year reflected the continuing uncertainty in the capital markets and the economic
downturn in key European industrial nations that began in the autumn of 2000. After the moderate start into the year, a change
of economic trend by mid-year was still thought likely; however, contrary to expectations, there has been no improvement.
Despite these adverse conditions, comdirect bank AG registered acceptable business performance. Since the investment pattern
of our customers follows general trends, we faced the challenge of adapting our internal structures quickly and effectively to the
changed environment.
Expanding our customer base to roughly 617,000 at comdirect bank AG and to roughly 649,000 within the comdirect bank Group,
we maintained the previous year's growth on a moderate scale and successfully defended our leading market position as the
largest online broker in Germany and Europe.
Group Management Report 2001
The comdirect bank Group succeeded in containing expenses through
voluntary reductions in individual employees' working hours, shorttime working, a recruitment freeze, and significant reductions in both
administrative expenses and investments in all areas. This did not
entail a loss of quality or service. Along with reduced marketing
expenses, the Group's administrative costs were held to an increase of
merely 1.5 % on the previous year.
As part of its international expansion strategy, comdirect bank entered
the Italian market last year. Yet price wars in both France and Italy led
to unacceptable price levels in both countries, removing all hopes of
improvement. Given the continuing weakness of the international
equity markets, we had to concede that new customer business in
these two countries fell considerably short of our expectations and
that we would not be able to gain the economically necessary number
of customers within a reasonable time. In the interest of shareholder
value, we decided to dispose of our subsidiaries in these two countries
because none of the other options promised sufficient success.
In the United Kingdom, on the other hand, we succeeded in attaining
the expected level of growth in the second half of last year.
We have thus decided to continue to expand our British subsidiary.
We exceeded our targets, gaining over 14,500 new customers in net
terms during the period under review.
31
MARKET DEVELOPMENT
The 2001 financial year was characterised by the sharp downturn in
the stock markets, and the especially strong fall-off last September,
and the markets' subsequent partial recovery. The difficulties facing
both the economy and the job market went hand in hand with an
extremely weak year on stock exchanges worldwide. Economic indicators did not stabilise in the year under review. The US Federal
Reserve tried to counter the looming economic downturn through dramatic interest-rate cuts. The European Central Bank, on the other
hand, initially adopted a wait-and-see attitude, fearing that the risk of
inflation was very high. Numerous companies published profit warnings in 2001 and most leading economists and chief strategists issued
largely negative forecasts for the capital markets; even the finance
and economics ministries of a number of European countries had to
dampen their hopes for an economic recovery. The significant downturn in stock prices across the board and on many international stock
markets caused securities business to decline dramatically in Europe
and also Germany, and this could not be offset by the partial upturn
that began in October.
pared to the previous year. Consequently, all established online brokers had to contend with a decline in orders and the concurrent reduction in brokerage commissions. At 6.3 million orders, compared to
10.2 million orders the previous year, a decrease of about 38 %, the
number of orders executed by comdirect bank AG fell more than the
overall market. The share of comdirect bank AG in the total number of
orders executed on German stock exchanges thus declined from about
3.7% percent in 2000 to 3.0% in 2001. It would not make any sense
to compare the numbers of orders in relation to the total market for
our European subsidiaries because they were launched only recently.
comdirect bank AG posted strong gains in the number of both new
customers and orders in the past, given the bull market that prevailed
since 1998. Most investors reacted to the disappointing development
of the stock markets in the 2001 financial year by adopting a waitand-see attitude.
Our recently established European subsidiaries depend on strong
growth with regard to both new customers and orders in order to
The Dow Jones Index, the leading international stock market index,
lost about seven percent in the course of 2001, while other stock market indices lost even more ground. The German Dax, for instance,
started the year 2001 at about 6,500 points and closed at year's end
slightly above 5,150 points, a loss of about 20 %. Many indices hit
record lows for the year following the terrorist attack in New York on
11 September 2001. The index that is most significant to the business
of comdirect bank, the German Nemax All Share, lost about 60 % in
the course of the reporting period. The indices of other European stock
markets – the FTSE 100 in the United Kingdom, the CAC 40 in France,
and the MIB 30 in Italy – were also characterised by negative growth.
Over 207 million orders were transacted on German stock exchanges
in 2001, a decrease of about 68 million orders or about 25 % com-
Number of orders on German Stock exchanges (in Mio. units)
25
Total orders 2001: 207.213.152 units
20
15
5
0
Jan.
32
Feb.
Mar. April
May
June
July
Aug. Sept.
Oct.
Nov.
Dec.
Source: Deutsche Börse AG
10
attain an economically feasible size; the downturn on the stock
markets thus had a particularly negative impact on these companies.
The gain of about 27,000 new customers in the first quarter of 2001
was not followed by concomitant increases in subsequent quarters. At
the end of the 2001 financial year, comdirect bank AG had about
617,000 customers overall, an increase of about 7 % compared with
the previous year. The comdirect bank Group had about 649,000
customers, an increase of about 12%.
The IPO market in Germany collapsed in 2001; a mere 22 companies
went public on the Frankfurt am Main stock exchange, compared with
136 IPOs in 2000. Experts had forecast at the beginning of 2001 that
there would be about 100 IPOs in the course of the year. The issuing
volume in 2001 was about € 2.5 billion, compared to € 25.6 billion in
2000, a decrease of 90%. comdirect bank group nonetheless retained
its ability to offer its customers interesting new stock issues despite
this difficult market environment.
Europe
Basically all competitors in Europe's online brokerage markets are
subject to the same pressures. They are reviewing possible mergers
and acquisitions, consolidating their operations and retreating to their
domestic markets, or integrating the online brokerage services into
their parent companies. It is our view that a company should select
that strategy that seems to hold the greatest future promise, taking
into account the company's relative market position and the resources
available to it. The comdirect bank group thus reacted accordingly to
the situation on the European capital markets.
approach toward potential new customers. We are convinced that
we will be able to attain a critical mass on this basis in a short time
period and thus that we will become profitable. In future, we will
also pursue opportunities for cooperation. To this end, we began to
cooperate with Torquil Clark Plc, an independent financial consulting
firm, in the first quarter of 2002.
Development of IPOs in Germany
Issuing volume (€ billion)
IPOs
159
25.6
136
75
22
2.8
1997
3.4
1998
2.5
1999
2000
2001
Source: Dealogic; F.A.Z.
10.4
29
We did not make as much progress in the previous year with regard
to the development of the major European markets as we had
planned. We found out that our French and Italian subsidiaries would
require up to seven years to break even, given the continued weak
development of the markets. Both markets are currently undergoing a
consolidation phase.
We also had to recognise that establishing a new brokerage brand in
the European markets would require enormous financial resources,
given the changed market conditions. Competitive pressures are high
and the extreme slump on the stock markets also makes it difficult to
gain new customers. Attractive products, favourable terms, a good
brand name, and websites that garner much attention are insufficient
to acquire feasible numbers of new customers. We shall withdraw
from the markets in which we do not hold a significant position or in
which we cannot generate sufficient organic growth. The consolidation of the European banking sector did not occur as would have been
necessary - neither among banks with online brokerage services nor
among banks with a network of brick-and-mortar branches. Legal
systems, market conditions, and customer expectations, as well as the
resulting IT systems, still remain too divergent in Europe to achieve
such a goal.
We launched our British subsidiary in the highly competitive UK market in early June 2000. Although we gained 803 customers at the start
of 2001 and had about 1,500 customers by the end of the first quarter
and more than 3,650 customers by the middle of the year, a considerable rate of growth, all of it fell short of our ambitious goals. We finally surpassed our objectives by the end of 2001, with 7,404 new customers net in the fourth quarter and 15,361 customers overall, plus
1,643 new accounts that had not been fully established. This growth
was fuelled by the comprehensive expansion of our services and product portfolio, changes in our pricing policies, and a more focused
In contrast to conditions in the UK, the situation in France made it
impossible for us to expand our business as planned in spite of major
marketing efforts and the considerable incentives that we offered our
customers. With about 14,400 customers at the end of the first quarter
of 2001 and about 15,400 customers by the end of the year, the gains
made in this regard were insufficient. Nor did a variety of efforts related to acquisitions or cooperation agreements with partners achieve the
desired results. We thus felt compelled to sell comdirect S.A.
We believed that Italy would be one of the major European growth
markets. We launched our operations in that country in May 2001.
Despite a positive press, a much-praised and intensely used website,
as well as a large number of interested parties, we did not succeed in
countering the effect of the weakened markets on our business. The
increasingly competitive environment and a completely insufficient
price level, together with disappointing market performance, made it
impossible for us to tap the existing potential for new customers or to
follow our growth path at reasonable cost. The fact that our Italian
subsidiary only had 660 customers at the end of the 2001 financial
year forced our hand. Given that a number of efforts aimed at acquisitions or cooperation agreements with partners failed, we had no
choice but to close the subsidiary.
Acceptance of securities and customer potential
Securities have generally regained their level of acceptance in Germany, in spite of the difficult year on the stock market. The number of
investors who bought securities rose domestically from 17 million in
October 2001 to 18 million, an increase of about 6%. About 10% of
these securities owners, i.e. 1.8 million investors, conduct their transactions online. In the previous year, this was true for only 1.6 million
people, which means that the online brokerage segment gained about
200,000 new customers in Germany alone. Given that comdirect bank
AG has about 584,000 brokerage customers, about one third of all
online brokerage customers in Germany maintain deposit and custody
accounts with us, which allows us to retain our leading market position.
The increase in regular use of the Internet has also increased the number of people that might execute securities transactions online. A
number of studies forecast three to seven million new online customers in Germany in the years to come. The fact that these investors
have not yet opted for online brokerages is also rooted in the uncertain and unfavourable conditions that prevail on the world's stock
markets. Once the situation on the stock markets has stabilised and
33
MARKET DEVELOPMENT
price-performance ratio while at the same time achieving reasonable
profit margins. The offer to be able to trade for a reasonable flat fee
also via telephone met with resounding success. Currently, we are in
eighth place with regard to the number of both customers and orders
in the British online brokerage market. We firmly believe that we will
attain the break-even point in just a few years and that we will be able
to catch up with the market leaders in the not too distant future. The
UK market is also consolidating even though no major changes
occurred in 2001.
12,853
Shareholders and owners of funds in Germany (thousand)
11,828
shares only
shares and funds
funds only
5,601
6,789
8,231
3,087
3,463
2,748
2,607
3,487
3,604
1,518
3,293
5,617
7,159
911
2,274
1997
1998
3,226
1999
2000
2001
Source: DAI
627
1,681
begun to show positive developments, which we expect to happen in
the second half of the 2002 financial year, we expect growth in the
new customer segment to gather speed once more.
Product innovation and trends
We supported the continued growth in Germany by launching a
number of promotional campaigns. All of our new products aimed at
creating wealth such as comdirect wachstumsrente and comdirect
wachstumsrente plus, Sparmax, the savings-plan fund and the funds
of funds, the fund summer campaign, and fest & fonds were successful, as was as the expansion of our existing funds. In addition, the
comdirect EURO Money Market ADIG fund, which we launched
Though both France and Italy offer considerable potential in terms of
new customers, these markets are not as broadly developed as the
German market. It is difficult to foresee, from the current vantage
point, when such a level of development might be achieved. High losses in the start-up phase force us to make strategic decisions. We are
unwilling to bear the costs of developing a market over a long time
period in markets that have not yet achieved the requisite maturity.
Germany remains the most important and by far the most developed
online brokerage market. The number of our existing German direct
brokerage customers is greater than each of the French, Italian, and
British online brokerage markets overall. We expect our target group
to grow in the UK, given the high level of acceptance of securities
among the public in Britain. (Source: Infratest-Online Brokeridge Monitor Germany 2001, 11/2001)
Increased competitive pressures among online brokers
In the 2001 financial year, several new providers of online brokerage
services entered the German market, while others abandoned their
operations, and yet others restructured their services or integrated
them into those of their parent companies. The weak markets have
accelerated the consolidation process, squeezing smaller and independent providers out of the market. Though competition for existing
customers was especially intense, given the slump in growth rates
compared with previous years, there were no significant changes in
market share. Competition is not limited to Germany but instead
marks all European markets. As the market leader in Germany, we are
closely following this shake out from a position of strength and are
taking advantage of any opportunities that arise.
Our cost structures in the UK offer greater advantages than those of
our established competitors, allowing us to offer a very attractive
34
together with ADIG, offers all investors an excellent alternative to
fixed-term and overnight accounts.
We were able to offer improved LiveTrading to customers interested
in trading securities online, as well as the possibility of trading
select Eurex derivatives and leading XETRA securities, all of which
represented interesting portfolio innovations. We also provided some
impetus to the online options trade by enabling customers to trade
certain types of options free of charge for a limited time.
The dynamics of innovation, however, are not as strong in the United
Kingdom as they are in Germany. For example, we have set standards
by introducing limit and stop loss functions in this segment of retail
broking. We also strengthened our image as a strong international
provider of direct brokerage services by introducing the possibility of
trading international securities via an account denominated in
pounds.
Investment banking
In order to fortify our leading position, we announced in November
2000 that we would establish our own investment banking unit. As
Europe's largest online broker, we aim to become a strong selling
group member and later an underwriter in the IPO market. To this end,
we concluded a cooperation agreement with Wolfgang Steubing AG, a
securities bank headquartered in Frankfurt/Main, Germany, in September 2001. Our group-wide network of about 649,000 customers
gives us a strong position in the private banking segment. Plans are
to have the comdirect bank group sell new issues in connection with
IPOs that are lead-managed by us in the retail sector, while our
cooperation partner will be responsible for selling the issues to
institutional investors and for carrying out the research.
We will continue to expand the selling of German IPO issues in the
United Kingdom and the distribution of British issues in Germany via
comdirect ltd.
Website
comdirect bank AG has been marketing its own website since the end
of 2000 by selling advertising banner space. As a leading financial site
on the Internet, we are happy to say that this offer has triggered brisk
demand. We achieved good results in this segment in the 2001 financial year, with 608 million visits (previous year: 627 million) and about
two billion page impressions (previous year: about 2.5 billion). We are
in the process of developing potentially lucrative new markets by
selling real estate financing with our partner eXtrahyp GmbH as
well as shares in closed funds with our partner eFonds24.de GmbH,
and by marketing our website.
requests. This especially included, among our European subsidiaries,
the introduction of an IVR system in France, the development of a new
front-end office in the UK, and the provision of both hardware and
software in Italy as well as investments in the facilities leased by us.
We rapidly and consistently prepared the ground for the final conversion of all accounts and applications to the euro and completed the
process by year's end without a problem, with the exception of the
United Kingdom where the euro was not introduced.
All of these measures were accompanied by ongoing background
improvements related to our IT infrastructure, many of which have
already been implemented.
Personnel
At the end of the 2001 financial year, comdirect bank AG had a total
of 1,117 employees, compared to 1,387 employees at the end of the
2000 financial year, which corresponds to a reduction of about 19%
or 270 employees, which was achieved through socially acceptable
In the UK, our website www.comdirect.co.uk registered about 14.6
million page impressions and 4.5 million visits.
measures. The comdirect bank group had 1,291 employees, a reduction of about 16%.
Investments
Investments in property, plant and equipment comdirect bank
group invested heavily in the expansion of its product portfolio and
scope of services. On the domestic front, this includes offering neartime settlement of trades transacted in the United States, integrating
the execution with customer accounts, offering a secure display of
electronic securities trades and statements, integrating information
and transaction capabilities, launching futures trading, and concluding fund savings accounts at advantageous terms. In addition, we continued to develop and round out a host of details related to our
already existing Internet applications in response to customer
We had to adjust personnel capacities domestically in the light of the
decline in customer orders. We succeeded in arriving at an agreement
with the staff council regarding a flexible model for working hours
that allows us to adjust personnel capacities to given market conditions. Our employees declared their willingness to voluntarily reduce
the number of their working hours. Further, the introduction of shorttime working, a pioneering first in the banking sector, allowed us to
retain important know-how on the part of our employees and at the
same time to respond to economic constraints. Our workforce was
also reduced by way of a recruitment freeze and the use of normal
staff turnover. The agreement that we concluded with our employees
with a view to securing jobs demonstrates the good working climate
that prevails at comdirect. Reductions in bonus payments and a number of contributions on the part of our employees allowed us to keep
a lid on the increase in personnel costs. Back-office efficiency rose
considerably after we had instituted so-called partially autonomous
working groups, an innovative organisational model. All departments
of comdirect bank AG actively pursued a cost-cutting strategy, seeking
ways to cut costs and to use the company's resources efficiently.
Visits & Page Impressions at comdirect 2001 (thousand)
Source: IS (Teledata)
36,679
135,025
179,506
50,370
155,179
83,929
51,024
126,819
141,659
42,386
46,846
45,431
151,059
156,600
184,957
60,118
53,513
174,547
199,704
Visits
54,191
48,181
61,978
180,336
239,266
Page Impressions
Taking into account short-time working and voluntary reductions
in working hours, at the end of the 2001 financial year comdirect
bank AG had 937 employees (previous year: 1,139), if all part-time
positions are converted into full-time positions. Short-time working
enabled us to eliminate 52.5 full-time positions in Germany, and the
voluntary reduction in working hours led to the elimination of 20 fulltime positions.
35
MARKET DEVELOPMENT
Orders executed and direct brokerage accounts
per employee (full-time basis)
Group
6,000
700
351
389
5,000
4,000
477
523
7,000
5,085
5,604
6,721
7,371
AG
600
500
400
3,000
300
2,000
200
1,000
100
Order
2000
Direct brokerage accounts
2001
2000
2001
At the end of 2001, comdirect ltd had 54 employees (eight more than
in 2000), comdirect S.A. had 58 employees (five less than in 2000),
and comdirect bank S.p.A. had 62 employees (22 more than in 2000).
Our foreign subsidiaries hired new employees primarily in the first half
of the year under review.
The success of comdirect would not have been possible without the
great commitment of our employees. The Board of Managing Directors
of comdirect bank AG would like to thank all of its employees for their
performance in the past year. Special thanks are due to the works
council, a reliable partner open to new possibilities.
Shareholder structure
Our shareholder structure remained stable in the 2001 financial year.
We have retained our importance for Commerzbank AG, with 58.65%
the majority shareholder of comdirect bank AG, as a subsidiary with a
Shareholder structure comdirect bank AG
Commerzbank AG
T-Online International AG
Free Float
21.35%
58.65 %
20.00%
36
strategic role to play within Commerzbank's private banking unit, a
core business. T-Online International AG continues to hold 21.35% of
comdirect bank AG. The envisioned conversion of all indices of
Deutsche Börse AG as of July 2002 will also result in a free-float
weighting of the Nemax 50. Changing the weighting of the Nemax 50
will give those companies lesser weight in the index as a whole whose
free-float share is below average. There is no need for increasing our
free-float share of 20% because of the conversion of the indices.
In our attempt to sell comdirect S.A., we acquired all shares in the
company held by outside parties by January 2002, making it a whollyowned subsidiary of comdirect bank AG.
DEVELOPMENT OF BUSINESS
615
649
539
577
114
165
226
277
109
61
1999
2000
2001
comdirect bank group, securities turnover fell from € 36.6 billion in
2000 to € 20.0 billion in 2001.
At € 6,553 million, the portfolio volume as of 31 December 2001 in
comdirect bank AG was about 19 % below the previous year's level
(€ 8,092 million). Of this amount, € 1,089 million were contributed by
funds, compared to € 1,126 million in the previous year. The deposit
volume of all customers at year's end was € 2,245 million (previous
year: € 2,042 million). Total deposits and custody accounts in the
amount of € 8,798 million thus fell by 13%. These figures show that
deposits and custody accounts declined at a lower rate than the number of securities orders, which means that customers were reluctant to
make new investments and adopted a wait-and-see attitude. We
expect the opposite to occur once the trend is reversed at the capital
markets.
In the comdirect bank group, the portfolio volume as of 31 December
2001 was € 6,699 million, i.e. a decline of about 17 % over the previous year's figure of € 8.111 million. Funds accounted for € 1,093
Volume of total assets under custody as at 31.12.
(in € billion)
Deposit volume
Funds volume
2.1
2.6
1.5
1.0
0.9
0.6
1996
2.3
2.2
7.0
1.5
6.3
5.7
3.0
1.6
1997
9.1
Portfolio volume
At comdirect ltd., in the 2001 financial year 86% of orders executed
were transmitted via the Internet and 14% via the telephone.
The reduction in the number of orders and the stock exchange indices
are mirrored in lower securities turnover. At comdirect bank AG, this
segment declined from € 36.0 billion in the previous year by € 17.2
billion or about 48 % to € 18.8 billion in the financial year 2001. In the
1998
10.2
The Internet is becoming an increasingly important access channel for
securities trades. For the year 2001 as a whole, 93 % of all orders
placed with comdirect bank AG were conducted online, compared to
89% the previous year. The attendant degree of automation makes it
possible to offer high trading speeds at low unit costs. The improved
functions offered to our customers enable them to track the status of
their order(s) at any time, as well as to ascertain the price and time of
order execution in a matter of seconds.
1997
8.9
In the comdirect bank group, the number of securities orders executed
fell from 10.3 million to 6.6 million, while the number of orders placed
declined from 15.3 million to about 8.7 million. The rate of order execution thus increased in the group from about 67% to about 76%.
1996
4.5
The number of orders placed with comdirect bank AG fell from 15.1
million in the previous year to 7.9 million in the 2001 financial year.
The number of securities orders executed per customer fell from 26.8
in the year 2000 to 11.2 in the year 2001. Overall, in the reporting
period 6.3 million orders were executed, compared to 10.2 million
orders in the previous year, a decrease of about 38 %. The average
gross commission charged by comdirect bank AG was € 13.0 in 2001,
compared to € 18.0 in 2000.
Total customers
73
As in the previous year, the number of direct brokerage customers of
comdirect bank AG rose at a faster rate than the total number of customers. At 615,211 customers, the number of customers grew by 14%
because new direct brokerage customers as well as a larger number of
customers opted for our brokerage product offerings in the course of
the year. Overall, at the end of 2001 about 95 % of our customers
utilised the securities services offered by the comdirect bank group,
compared to roughly 93 % twelve months earlier. Our goal is to
increase this share to 100% and to make the advantages of our direct
brokerage services apparent to all of our customers.
31
The business of comdirect bank AG in the 2001 financial year was
characterised by lower orders per customer and slower growth in the
number of new customers. Growth in the net number of new customers occurred primarily in the first half of 2001 and declined to a
more moderate pace in the second half of the year. The total number
of customers of comdirect bank AG rose from 575,221 to 616,891 and
in the comdirect bank group from 577,465 to 648,611. The increase
of 71,146 new customers, an increase of 12 %, did not satisfy our
expectations for the past financial year, with the exception of the UK.
0.4
1998
1999
1.1
2000
1.1
2001
37
DEVELOPMENT OF BUSINESS
We neither took nor refrained from actions requiring reporting.
1996
3.8
1.2
8.1
15.8
20.1
36.6
Securities turnover in the comdirect bank group
(€ billion)
1997
1998
1999
2000
2001
million, compared to € 1,127 million the previous year. The deposit
volume of all customers at year's end was € 2,302 million, compared
to € 2,049 million in the previous year. Total deposits and custody
accounts in the amount of € 9,001 million thus fell by 11%.
The funds remaining from the IPO of comdirect bank AG, as well as
customer deposits, are invested in a manner averse to risk and
at matching maturities. They are primarily invested in short- and
medium-term bonds and notes, securities with variable interest
rates, overnight money and fixed deposits, as well as prime nearmoney market securities.
Financial position
The liquidity of comdirect bank AG was guaranteed at all times during
the year under review. There was full compliance with the minimum
reserve requirements of Deutsche Bundesbank, as well as with the
liquidity requirements of the German Federal Banking Supervisory
Office. comdirect bank AG is a member of the German banks' deposit
insurance fund (Einlagensicherungsfonds des Bundesverbands
deutscher Banken), Cologne, Germany, which insures each customer's
account up to a total amount of € 233 million. In addition, comdirect
also participates in the German banks' compensation fund, the
Entschädigungseinrichtung deutscher Banken GmbH.
The increase in the number of customers also led to an increase in
the number of demand deposit accounts, which are maintained as
clearing accounts. 36,946 new accounts were opened in the course
of 2001, an increase of 6%.
The use of the securities loan that is offered in conjunction with the
portfolio fell in the reporting period. Overall, at 63,103 securities loans
as of 31 December 2001, the number of securities loans declined by
1,376 compared to the previous year. The loan amount used also fell
in the course of the year by a total of 54%.
In the 2001 financial year, 4,724 new customers opted to open a
checking account with comdirect bank AG. As of 31 December 2001,
we managed a total of 66,851 checking accounts, compared to
62,127 the previous year.
Assets
There were no changes with regard to the assets of the comdirect
bank group. All assets and liabilities were valued pursuant to IAS and
their interpretation through the Standard Interpretation Committee
(SIC). Financial instruments were valued at market rates in accordance
with IAS 39. The financial instruments also contain all business with
derivatives. Adequate value adjustments were made for recognisable
risks in the loan business.
comdirect has received reasonable compensation for each action
taken or forbearance thereof, according to the circumstances that
were known at the time at which the action was taken or refrained
from, and was not thereby disadvantaged through the execution or
forbearance of such action.
38
The bank's liquidity is guaranteed at all times via short-term investments.
The subsidiaries were at all times given sufficient funds to be able to
finance their expansion and to meet all applicable statutory requirements concerning capitalisation.
After drawing on both the retained earnings and additional paid-in
capital in the amount of € 161.9 million for the purpose of covering
the loss for the year of the comdirect bank group and the losses
carried forward, equity now is € 578.1 million. This means that the
comdirect bank group still boasts excellent capitalisation.
Earnings
In the past years, the strong growth in the new customer business and
in the securities trading segment had a positive influence on earnings.
In the 2001 financial year, however, the weaker development of
these two factors last year, combined with high start-up losses at our
European subsidiaries, led to corresponding declines in earnings.
The net commission income earned by the comdirect bank group fell
from € 190.9 million in 2000 to € 93.0 million in 2001. Interest
income, as well as income from special funds, rose despite lower interest rates from € 57.7 million in 2000 to € 74.1 million in 2001. The
capital of comdirect bank AG, which had been made available in connection with its IPO, was for the first time invested for the full
12 months. Administrative expenses in the amount of € 224.3 million
were about € 3.3 million above the previous year's figure. Personnel
expenses were € 51.4 million, compared to € 43.5 million the pre-
CHANGES
IN THE BOARD OF MANAGING DIRECTORS
AND THE SUPERVISORY BOARD
vious year. Marketing expenses accounted for a large portion of other
administrative expenses in the amount of € 144.2 million.
Losses from the ordinary activities of the comdirect bank group in the
2001 financial year were € 52.3 million, compared to a profit of
€ 25.6 million in the 2000 financial year. Excluding Germany, this
figure rises to minus € 62.6 million, compared to minus € 39.9 million
the previous year.
One-time charges taken by the comdirect bank group in the amount
of € 98.3 million were related to necessary restructuring measures
in connection with the sale of comdirect S.A. and the closing of
comdirect bank S.p.A.
Following the annulment of the profit and loss transfer agreement
as of 31 December 1999, the company and the tax authorities agree
that the special agreement establishing a single-entity relationship
between comdirect bank AG and Commerzbank AG has ended. The
single-entity relationship of comdirect bank AG continued only with
regard to sales and trade taxes in the 2000 and 2001 assessment
periods following the final ruling in this matter. Given the revision of
the German legislation on the further development of corporate
taxation, however, the single-entity relationship in terms of trade
taxes ended as of 31 December 2001; as of 2002 this leaves only the
single-entity relationship in terms of value-added taxes.
The unappropriated retained earnings of the comdirect bank group,
after withdrawals from retained earnings and additional paid-in
capital, are € 0.
The appointment of Dr. Andre Carls to the Board of Managing
Directors of comdirect bank AG was registered with the Commercial
Register of the Pinneberg District Court, Germany, on 30 April 2001.
Dr. Carls assumed responsibility, among other things, for the bank's
new investment banking division and product management.
Klaus-Peter Müller, speaker of the Board of Managing Directors of
Commerzbank AG, Dr. Franz-Georg Brune, co-director of the Regional
Branch Frankfurt/Main of Commerzbank AG, and Burkhard Grassmann, member of the Board of Managing Directors of T-Online International AG, were elected to the Supervisory Board of comdirect bank
AG at the Annual General Meeting of 10 May 2001. In the Supervisory Board meeting that followed the aforementioned Annual
General Meeting, Klaus-Peter Müller was elected chairman of the
Supervisory Board of comdirect bank AG. Dr. Norbert Käsbeck and
Dr. Ferdinand Vogel resigned from the Supervisory Board.
Within the group, there were changes with regard to the management
of comdirect S.A. Effective 30 March 2001, Jacques Charpentier was
appointed to the Board of Managing Directors of our French subsidiary from which Thierry Moriceau and Jean-Marc Ravier retired,
respectively, effective 01 March 2001 and 22 June 2001.
We would now like to take the opportunity to thank the members of
the Supervisory Board for their work and for their involvement on
behalf of comdirect bank AG.
190,863
Net commission income and net interest income
(€ thousand)
22,503
1998
1999
2000
93,018
74,083
38,333
1.,000
1997
57,717
19,442
6,629
77,341
Net interest income
2001
39
RISK REPORT
General risk management
The monitoring and control of risks has been an important element of
comdirect bank AG's management instruments since the bank was
founded. The recognition and management of risks was thus identified at an early point as a key factor behind success. Germany's legislators have laid down compulsory minimum standards for risk management, directly and indirectly, in a series of laws that are relevant
for us, such as the legislation for control and transparency in the corporate sector (KonTraG) or the German Banking Act (Art. 25a, (1)). In
some respects, the risk management of the comdirect bank Group
goes beyond the statutorily prescribed level. In connection with their
examination of the annual financial statements, the auditors confirmed the existence and the effective functioning of the risk management system of comdirect bank AG as a monitoring system pursuant
to Art. 91, (2), German Stock Corporation Act – AktG.
Definition
For creating an awareness of risk within the comdirect bank Group, a
uniform interpretation of risk and the types of risk is imperative, and
these must be defined consistently. Risk is seen as the possibility of
negative and positive deviations from an expected figure. Negative
as well as external influences, which are beyond the control of companies.
• Other risks relate, for example, to legal risks resulting from contractual agreements or the overall legal framework, and also to
risks to Group companies arising from their strategic decisions.
Organisation of risk control and management
The risk control of the comdirect bank Group is geared, on the one
hand, to the demands of our own business model and to the related
needs of our own customers and, on the other, to various statutory
provisions and requirements. The internal framework is regularly
revised against the background of these statutory regulations.
At the foreign subsidiaries, so-called General Conditions have been
adopted for the organisation of trading which go beyond the statutory requirements. In order to support and document this bank-wide
monitoring of risks, comdirect bank AG has developed a risk manual,
in which the main risks and how to treat them are described. This
manual is subject to constant revision.
deviations from the forecast asset and earnings position are understood as the danger of a loss or impairment, positive deviations
(opportunities) are seen as an element in achieving corporate targets.
It is the job of the risk management system as a whole to ensure that
existing risks are recognised, analysed and measured, and also that
risk-related information is passed on in a systematically ordered manner to those responsible for taking decisions. At the comdirect bank
Group, the following risks are distinguished:
• Market risks These arise through changes in market prices or priceinfluencing parameters. Distinctions are made between general and
individual types of risk, such as interest-rate, currency and equityprice risks.
• Credit risks (credit default risks) These are the risks of a loss or lost
profit due to a business partner's possible inability to pay. This
includes business involving customers as well as money and capitalmarket transactions (counterparty risk) and shareholder risks.
• Liquidity risks These refer to the risk of not being able to meet payment obligations when they fall due. The refinancing risk relates to
the ability to procure adequate liquidity when required on the
expected terms and conditions. The market-liquidity risk describes
the risk of being unable to settle items effectively to the desired
extent as a result of the market situation.
• All risks stemming from commercial systems or processes are
referred to as operational risks, which, if they occurred, might have
a negative impact on the business transactions of the comdirect
bank Group. For the most part, these are human or technical failure
40
Central responsibility for risks within the comdirect bank Group lies
with the Board of Managing Directors of comdirect bank AG. All the
measures in connection with risk management, therefore, are developed and implemented only within the framework established by the
Board of Managing Directors. Operative risk management, for which
the areas that initiate risks are primarily responsible themselves,
entails dealing with and securing risks. Within the framework of their
individual responsibilities, employees look upon risk management as
their natural and personal task. The monitoring of special risks which
extend beyond departmental limits, such as general risk management
for the comdirect bank Group, the management of credit risks, the
monitoring of market risks, the monitoring of liquidity risks, the refinancing risk and also the market risk, the operational and the strategic as well as the legal risks, is entrusted to individual groups such as
Law & Credit Management, Risk Management, Treasury and Internal
Audit. In this way, we ensure that these risks receive special attention.
The companies of the Group pursue a risk management that is appropriate in scope to their specific circumstances and size, with support
forthcoming from the specialist departments of the parent bank.
The key figures produced by the comdirect bank Group are aggregated not only for its own risk analysis but also for the central risk
control of Commerzbank AG and they are integrated into the risk
report of the Commerzbank Group.
Market risk
Market risks arise for comdirect bank Group companies mainly
through the conclusion of trading transactions and also asset/liability
management, i.e. the mismatch of fixed-interest periods between the
assets and the liabilities side. Monitoring at comdirect bank AG is performed with strict observance paid to the minimum requirements for
trading activities conducted by banks (MaH) in accordance with the
statement issued by the German banking supervisory authority on
23.10.1995.
Value-at-risk approach and stress testing
The value-at-risk (VaR) approach has established itself as a statistical
method for measuring general market risk in banking. comdirect bank
AG works out the VaR both by means of the variance/covariance
method and also as part of Group-wide risk management with the aid
of historical simulation. In both procedures, a confidence level of
97.5% is used and a holding period of one day.
In order to monitor extreme market movements, the VaR calculations
are complemented by so-called stress tests. Independently of fixed
Default in the money and capital market
In order to conduct trading activities, limits are generally required for
the various counterparties or the underlying transactions. These are
approved by the Board of Managing Directors of comdirect bank AG.
In the capital market, trading is only conducted with domestic clients
of impeccable credit standing. With the exception of Pfandbriefe,
which possess the relevant security, the securities purchased by
comdirect bank AG must be of investment grade as defined by the
rating agencies Moody’s, S&P and Fitch IBCA. Once it is known that
new transactions have been effected, the risk management group
immediately examines whether the limits established by the Board of
Managing Directors have been observed. In addition, the limits are
checked as part of the daily release by the settlement and control
sections of the Finance department.
Liquidity risks
Liquidity risks in the narrower sense
At comdirect bank AG, Treasury is responsible for managing liquidity.
The division has adopted the following steering measures:
confidence levels, these measure the scale of portfolio losses under
worst-case conditions, with the emphasis on changes in the yield
curve.
• In order to offset a possible removal of liquidity by customers, a
correspondingly large volume of funds due at call is temporarily
invested.
System of limits and their monitoring
A comprehensive system of limits has been developed for restricting
market risks. The limits include the following:
• All the securities in the liquidity reserve are items which can be sold
at very short notice at fair prices.
• Overnight VaR limit
• Overnight stress-test limit
• Escalation levels for items in the trading book
• Loss review trigger to establish a limit for trading-book losses
• Write-down limits for worst-case scenarios
• Fixed-interest limits for individual maturities of the fixed-interest
portfolio
Credit risk
Lending to customers
In comdirect bank AG's lending to customers, a distinction has to be
made between the loans to purchase securities, which fall due on
demand, and the overdraft facility granted on broker accounts. Losses
made be incurred on the loans to purchase securities in that the
pledged securities lose in value as a result of the general development
of the market or the specific market risks of individual securities; they
may then no longer be sufficient to secure the claim on the customer.
As a rule, the overdraft facilities of a broker account are linked to
regular salary payments and depend upon a check performed as part
of a scoring model.
Refinancing risk
In interbank trading for short-term funds, comdirect bank AG has built
up contact over the years with various German banks, allowing it to
borrow at short notice on terms reflecting market conditions. Moreover, it can take up short-term funds via the regional branch of the
central bank (European Central Bank). In short, effective measures
have been taken to meet the refinancing risk.
Market-liquidity risk
As a rule, the fixed-income securities held in the liquidity reserve
are large-volume issues (jumbos). A very liquid market exists here,
offering permanent, fair pricing. For bonds with floating interest
rates (floating rate notes), there are hardly any spread risks, as the
floating interest ensures that the coupon is close to money-market
rates (3 and 6-month Euribor), and as a result, price quotations are
generally around 100%.
Operational risks
Due not least to the debate on the new minimum capital requirements according to Basel II, the significance of operational risks has
increased. Apart from the infrastructure area, the IT world subsumed
under the heading “system architectures” is especially significant
for the comdirect bank Group. Both areas are as a rule redundant or
41
RISK REPORT
modular in construction, in order to guarantee a high level of
availability for the systems or components that are required.
As part of emergency planning for the IT area, external providers and
their emergency plans have also been taken into consideration. In this
connection, comdirect bank AG formulated certain requirements with
re-gard to availability and used these as a basis of comparison for the
emergency measures of key service providers. In addition, a “business
continuity” manual is currently being compiled for the infrastructure
area, which is devoted to maintaining the business activities of comdirect bank AG in the case of critical occurrences. In this connection,
the necessary emergency organisation is described and premises
which would serve as co-ordination points in the event of an emergency are specified.
Both organisational and technical measures serve to prevent or limit
damage for all areas of operational risks. Organisational instructions,
training for employees, IT quality management and the emergency
measures described should all be mentioned in this context. These
risks are documented in detail in the risk manual of comdirect bank
AG, which is constantly being made more specific and extended.
Other risks
Legal risks
The legal department of comdirect bank AG is responsible among
other things for preparing the company in good time for possible
legal changes. The public debate which occurs before these become
effective is followed closely. As soon as amendments can be expected,
the legal department immediately informs the sections of the bank
that are affected in order to prepare the company in working groups
for the potential changes and possibly for their impact. Information is
procured through membership of the German Association of Banks,
by means of their general circulars and membership of the working
group for direct banks, by monitoring specialist periodicals, and
through the legal department of Commerzbank AG.
Strategic risks
Those risks are considered to be strategic to which comdirect bank AG
is exposed due to past and future decisions related to the business
model. The emphasis here is primarily on aspects of corporate planning, the intensity of competition, product development and – and as
a major influence on comdirect's core business activity – the volatility
of securities business. Decisions with regard to the business model
are made by the Board of Managing Directors and in some cases by
the Supervisory Board of comdirect bank AG, based on extensive
analyses. Depending on the subject to be decided, such issues are
worked upon and prepared by the departments responsible.
42
The year 2002
In addition to the further specification of the various risks, the emphasis will be on developing the management of operational risks, which
is also necessary for Basel II.
The major risks over which we have no influence, such as a protracted
weakness of the securities markets, which may be directly reflected in
thinner trading volume and hence lower commission income, continue to be at the focus of our monitoring. In this way, events which
may have a negative influence on the assets and financial position of
comdirect or on its earnings performance can be recognised at an
early stage. As the comdirect bank Group achieves a sizeable part of
its earnings through brokerage services, the emergence of such risks
can have an adverse impact on its earnings performance.
PROSPECTS
The internet is increasingly seen as the medium of choice for both
information and communication. In turn this trend is fuelling the
ineluctable and steady growth of the number of potential customers
willing to utilise this medium for their financial transactions. The number of customers interested only in consulting services, i.e. customers
who rely solely on the advice of their financial advisors and who execute their financial transactions at brick-and-mortar branches, will
continue to decline. In contrast, so-called multi-channel customers
who use both consulting services in conventional bank branches as
well as information available on the Internet and in print media for
their investment decisions and who place their orders using a variety
of channels will continue to rise. In the end these developments will
lead to pure online customers who use only the Internet and telephone, who keep their own counsel via the information obtained on
the Internet, and who utilise numerous analysis tools to make investment decisions. This latter customer group is the most important for all
online brokers, for it is the group that accounts for major portions of
these firms' income.
within the direct securities trading segment and the high degree of
automation and optimisation in clearing securities transactions. The
growth in commissions thus must occur via the trading volume, whose
development, however, is very difficult to forecast. The anticipated
slight improvement in the second half of 2002 is rooted in a variety of
factors. All industrialised nations have significantly loosened their
monetary policies, some countries have even adopted financial
policies aimed at stimulating the economy. The worldwide decline in
energy prices which gives a significant boost to companies and
private households alike. We expect the optimism concerning an
economic recovery to be reflected in stock prices which in turn will
trigger rising trading volumes. Studies of customers of comdirect bank
AG who were not particularly active in 2001 have shown that about
85 % of these customers increase their level of trading activity once
there is a discernible improvement on the stock markets.
The product portfolio of comdirect bank AG is interesting for multichannel customers and pure online customers alike. Technically, consulting services will only be necessary for customers interested in
establishing the parameters of their investment strategy whereas
customers who are embarking on a new career or who are starting a
family, for example, have different financial requirements, needs, and
priorities. This is where consulting services come in. Once a customer
has decided on a strategy, however, there no longer is any need for
accepting the much more expensive transaction fees charged by
traditional financial service providers. While speed and price rapidly
lead customers who trade a lot to online brokerage firms, there is
still a need for convincing medium to long-term investors of the
advantages, given that this customer segment is equally interested in
adopting the right investment strategy and the right strategy to secure
their assets. The comdirect bank group believes that its customised
product portfolio places it in the best position to profit from these
long-term trends.
The interest income of comdirect bank AG should remain relatively
stable in 2002 and we do not expect significant cuts in interest rates
in the next few months.
Given the extreme competition in the online brokerage industry and
the tension on the capital markets, we expect the number of new
online brokerage customers to grow at a moderate pace. We expect
domestic growth to occur primarily in the second half of 2002. However, we are going to unveil a more focused customer service
approach in order to achieve qualitative growth in our customer
relations. Our experience with a variety of marketing measures confirms our view that it is very important to make attractive offers to
customers interested in using our portfolio of services and products.
In the United Kingdom, we plan to achieve a stable trend with regard
to both the number of new customers and trading volume. The major
focus of our marketing and cooperation activities, however, will
remain on the expansion of our high quality customer base.
The variety of measures aimed at cutting costs at comdirect bank AG
will for the first time affect the entire financial year so that we expect
to post an improved operating result. The elimination of the one-time
charges taken in 2001 should then allow for a better result.
Analysts, market researchers, and investment banks agree that
the market for direct financial services will develop dynamically
throughout Europe. Private investors will continue to benefit from
considerable cost advantages if they execute their securities
transactions via comdirect themselves instead of choosing the
traditional route of a financial services provider with brick-and-mortar
branches or a broker. We expect to benefit from this trend toward cost
cutting on the part of investors both in Germany and in the UK. In
Germany, the securities industry will receive additional stimuli from
the statutorily prescribed need to privately supplement state and
corporate pension benefits. As the market leader in the online
brokerage industry, we will profit from this development.
We do not expect to be able to generate significant increases in the
earnings per securities order, given the slight decline in price pressures
43
OUR STRATEGY
comdirect is a reliable partner that offers its customers the best possible support for making successful investment decisions. comdirect
makes available the required information and management services
as well as suitable products and services via direct access routes. This
lowers costs, yet another benefit that we will pass on to our customers
in future. The extraordinary acceptance of our online presence helps us
to develop excellent leverage. The high level of recognition that we
enjoy in connection with low transaction fees, excellent services, and
numerous customised offers secure our market leadership in the
domestic market. The proven strong cost consciousness of the
comdirect bank group and the measures it has launched to cut costs
will make it possible to achieve a positive operating result despite the
weakness of the capital markets.
Until the summer of 2000, the resources of comdirect bank AG were
used primarily to acquire new customers and to manage brisk customer demand in connection with high order levels. The market has
since entered a consolidation phase. Our current strategy in Germany
entails securing that which we have already achieved in the form of
stronger customer loyalty and increasing the income from existing
customer relationships. We will also expand our customer services to
investors interested in both accumulating and securing wealth. In
order to satisfy the financial needs of these customers and strengthen
their loyalty to comdirect bank AG, we plan to launch new services
that will make trading for active traders more convenient, cheaper,
and quicker as well as innovative offers tailored to medium to longterm investors interested in analysis tools, asset accumulation, and
pensions. By making changes to processes, we will also offer programs aimed specifically at asset managers.
Even though some competitors expanded their information offers on
the Internet last year, the popularity of comdirect bank AG remains so
high that our website is far ahead of those of our next competitors in
terms of both page impressions and visits. We will take advantage of
this fact and try to gain as new customers those who use the information offers on our website but who haven't yet decided to establish
checking or custody accounts with us.
We will continue to try to gain new customers in the UK through
inexpensive, technically superior and user-friendly programs. Our
efforts will be aimed at increasing customer numbers through
organic growth in order to catch up with the market leaders. We will
44
1.9
2.4
2.8
3.2
Development of the Online Brokerage market
(Number of customers/accounts in million)
1997
1998
1999
2000
2001e
2002e
2003e
Source: Forrester Research
0.8
Executing securities trades via direct channels remains the core
competence and business of the comdirect bank group. Over 90% of
all securities trades transacted with comdirect bank AG are effected
online, even though the telephone retains its significance for
comdirect ltd. Improved processing and analysis of available data concerning the needs of our customers will enable us to design programs
geared to their needs and to offer additional services aimed at
increasing our revenue streams. As before, we will concentrate on
traders who have remained active and on medium to long-term
We believe that the operating profitability of the comdirect bank
Group will remain stable, even in the face of a difficult environment,
once we have disposed of our French and Italian subsidiaries. This
strong base will allow us to enhance our earnings capacity in the long
term.
0.4
We plan to increase the earnings capacity of comdirect bank AG in the
long term by activating and leveraging the potential of our existing
customer base. Almost one third of online brokerage customers in Germany maintain portfolios with comdirect bank AG, even though we
are not the main brokerage firm of all customers. This is what we need
to change by increasing our focus on our customers' needs. While we
concentrated on making sure that the bank remained accessible and
capable of executing trades during the bull market in spite of the enormous surge in new customers, we will now take advantage of the
markets' downturn to continue developing our organisational structure. We believe that the aforementioned organisational changes will
help to optimise the business model of a legally independent online
broker. Our Customer Relationship Management projects have already
met with a positive response.
try to accelerate the break-even point of comdirect ltd by entering into
cooperation agreements with local partners.
0.2
achieve this objective. The excellent ratings received by our call centre,
for instance, and the customer satisfaction achieved thereby confirm
our approach. In the UK, brisk customer demand is placing great
demands on existing personnel capacities. Our staff will be expanded,
therefore, as we expect this trend to continue.
OPERATIONAL PLANNING OUTLOOK
FOR 2002
The main goal of comdirect bank AG for the 2002 financial year is to
increase earnings by pitching attractive products to our existing customer base. This will be accompanied by measures aimed at gaining
new customers and by projects aimed at continued cost cutting. In
future, the restructuring of the departments concerned will allow us to
adapt the design of new products much more efficiently to customers'
individual needs.
The following projects are at the centre of our activities in this respect:
Products for active traders
In future, we will try to use Internet-based applications to help our
trading-oriented customers optimise their portfolio and their risk
management in connection with their accounts, even in difficult times.
This will include expanding the range of fundamental information
offered and improving technical securities analyses. Modern trading
front ends will undergird this approach. This programme will be
rounded off by consistent expansion and optimisation of the OTC
market and by marketing options and futures trading capabilities.
Continued development of products aimed
at generating wealth
In the next few months we will focus on comprehensive analyses of
our customers' financial situation, the development of investment
alternatives and opportunities, and the development of products
aimed at providing pension benefits and risk management. Further,
we will continue to expand our fund portfolio and design attractive
offers in cooperation with our partners. This will include products
aimed at enticing customers to invest regularly in savings plan funds
as a stable means of accumulating wealth.
The internet offers consistent access
to information and distribution
Our website www.comdirect.de will continue to offer the best possible range of securities information to private customers interested in
investment opportunities. To this end, we will optimise the structure of
our website and continue to expand the range of real time information that we offer on stock prices and content. In addition to improved
tools and information, process management will play a decisive role in
Internet applications this year. For the provider capable of addressing
customers directly and offering suitable product portfolios via the
Internet will retain its leading position for years to come.
The difficult situation on the stock markets has slowed the trend
towards equities in Germany, even though the general demand for
securities will not subside. We are convinced that our customers in
Germany will continue to add to their assets in 2002, given the statutorily required need to supplement state pension benefits. The shift
away from classical savings plans to new ways of accumulating
wealth and investing in equities and investment funds will continue.
We expect the continued acceptance and use of the internet and
the related acceptance of online financial services to fuel additional
market growth.
The expansion of our portfolio of products and services tailored to customer needs will also broaden the basis of our future earnings so that
we will be able to attain satisfactory results independently of strong
recruitment of new customers. A continued focus on intensive cost
control will allow the comdirect bank Group to attain its operating
profitability even in weak stock market environments without
economising on customer service. We believe that comdirect ltd will
maintain its positive development, even though it is unlikely to repeat
its high 2001 growth rates.
The consolidation phase in the industry will continue in 2002. We will
carefully review any economically attractive acquisition possibilities
that arise. However, we will pursue growth through acquisitions only
if the price is right and profitability is guaranteed. We are confident
that comdirect bank AG – the leading online brokerage with the
largest customer base, a widely acclaimed website, and a cost and
earnings structure that clearly gives us an edge over our competitors –
will once again show positive results, and at the latest as the markets
begin to pick up again.
The comdirect bank Group will intensify its support for the development of comdirect ltd. after parting with its French and Italian subsidiaries. We expect our British subsidiary to maintain its encouraging
performance and to break even, as planned, within a few years.
For some employees of comdirect bank AG, we were able to abandon
short-time working even by year end. We intend to continue this
trend.
We will react rapidly and effectively when the stock market recovers
its momentum.
At comdirect ltd, expanding the new customer business and tackling
the growing volume will be at the centre of our operational planning.
This will include continuing to deploy all ways of communicating with
customers via the Internet.
45
FINANCIAL STATEMENTS 2001
ACCORDING TO THE
INTERNATIONAL ACCOUNTING
STANDARDS (IAS)
AS OF 31 DECEMBER 2001
Financial statements 2001
48
49
50
51
52
53
54
Income statement AG
Balance sheet AG
Income statement Group
Balance sheet Group
Cash flow statement
Notes for the financial year ended 31 December 2001
82
Auditor’s certificate
84
Report of the Supervisory Board
86
Structure of the comdirect group
87
Financial calendar
88
Contact
47
INCOME STATEMENT
Income statement of comdirect bank Aktiengesellschaft according to IAS
INCOME STATEMENT
1.1. – 31.12.2001
(€ thousand)
136,767
64,157
72,610
– 2,074
70,536
92,717
998
91,719
– 29
344
159,767
9,241
12,044
– 215,311
– 203,267
1,261
– 204,528
– 204,528
204,528
0
1.1. – 31.12.2000
(€ thousand)
119,862
63,172
56,690
– 1,966
54,724
190,806
1,060
189,746
– 133
0
179,350
2,236
67,223
0
67,223
31,990
35,233
35,233
0
35,233
(€ thousand)
unit
€
1.1. – 31.12.2001
– 204,528
140,500,000
– 1.46
1.1. – 31.12.2000
35,233
104,959,016
0.34
(€ thousand)
1.1. – 31.12.2001
– 204,528
1.1. – 31.12.2000
35,233
unit
unit
€
97,278
140,597,278
– 1.45
32,660
104,991,677
0.34
Interest income
Interest expenses
Provision for possible loan losses
Net interest income after provisions
Commission income
Commission expenses
Trading profit
Result from financial investments
Administrative expenses
Other operating result
Profit from ordinary activities
Extraordinary result and restructuring expenses
Pre-tax result
Taxes on income
After-tax profit
Net income/loss for the year
Transfer from reserves
Net profit/loss for the year
EARNINGS PER SHARE
BASIC EARNINGS PER SHARE
Average number of ordinary shares
Basic earnings per share
DILUTED EARNINGS PER SHARE
Adjustment to the number of ordinary shares issued due
to outstanding option rights
Weighted average shares outstanding (diluted)
Diluted earnings per share
48
BALANCE SHEET
Balance sheet of comdirect bank Aktiengesellschaft according to IAS
ASSETS
Cash reserve
Claims on banks
Claims on customers
Trading assets
Financial investments
Intangible assets
Fixed assets
Tax assets
Other assets
Total assets
LIABILITIES AND EQUITY
Liabilities to banks
Liabilities to customers
Provisions
Tax liabilities
Other liabilities
Subordinated capital
Equity
Subscribed capital
Capital reserve
Retained earnings
Legal reserve
Other revenue reserves
Revaluation reserve
Total liabilities and equity
as of 31.12.2001
(€ thousand)
71,721
1,600,166
263,654
– 4,936
2,164
882,587
19,345
39,962
9,634
14,149
as of 31.12.2000
(€ thousand)
513
959,363
575,510
– 3,180
883
1,290,554
13,018
50,266
0
11,183
2,898,446
2,898,110
as of 31.12.2001
(€ thousand)
0
2,252,532
24,519
10,444
20,704
16,617
573,630
140,500
394,327
as of 31.12.2000
(€ thousand)
3,675
2,042,057
5,020
10,795
27,442
29,399
779,722
140,500
599,709
0
37,720
1,083
0
686
3,594
0
35,233
2,898,446
2,898,110
49
INCOME STATEMENT
Income statement of comdirect bank Group according to IAS
INCOME STATEMENT
1.1. – 31.12.2001
(€ thousand)
138,621
64,538
74,083
– 2,074
72,009
96,957
3,939
93,018
– 29
344
224,317
6,659
– 52,316
– 98,264
– 150,580
10,077
– 160,657
0
– 160,657
160,657
0
1.1. – 31.12.2000
(€ thousand)
121,046
63,329
57,717
– 1,966
55,751
192,656
1,793
190,863
– 133
0
220,951
35
25,565
0
25,565
23,371
2,194
484
2,678
0
2,678
(€ thousand)
unit
€
1.1. – 31.12.2001
– 160,657
140,500,000
– 1.14
1.1. – 31.12.2000
2,678
104,959,016
0.03
(€ thousand)
1.1. – 31.12.2001
– 160,657
1.1. – 31.12.2000
2,678
unit
unit
€
97,278
140,597,278
– 1.14
32,660
104,991,677
0.03
Notes
Interest income
Interest expenses
Commission income
Commission expenses
Trading profit
Result from financial investments
Extraordinary result and restructuring expenses
Pre-tax profit
Taxes on income
After-tax profit
Profit/loss attributable to miniority interests
Transfer from reserves
Consolidated profit/loss
(23)
(24)
(25)
(26)
(27)
(28)
(29)
(30)
EARNINGS PER SHARE
BASIC EARNINGS PER SHARE
Average number of ordinary shares
Basic earnings per share
DILUTED EARNINGS PER SHARE
Adjustment to the number of
ordinary shares issued due to outstanding option rights
Weighted average shares outstanding (diluted)
Diluted earnings per share
50
BALANCE SHEET
Balance sheet of comdirect bank Group according to IAS
ASSETS
Cash reserve
Claims on banks
Claims on customers
Provisions for possible loan losses
Trading assets
Intangible assets
Fixed assets
Tax assets
Other assets
Notes
(31)
(32)
(33)
(34)
(35)
(36)
(37)
(38)
(40)
Total assets
LIABILITIES AND EQUITY
Provisions
Tax liabilities
Other liabilities
Minority interests
Equity
Subscribed capital
Capital reserve
Retained earnings
Legal reserve
Other revenue reserves
Revaluation reserve
Consolidated profit/loss
Total liabilities and equity
Notes
(41)
(42)
(43)
(44)
(45)
as of 31.12.2001
(€ thousand)
72,005
1,684,112
263,728
– 4,936
2,164
861,212
22,076
45,816
9,634
18,200
as of 31.12.2000
(€ thousand)
515
1,006,477
575,524
– 3,180
883
1,153,239
40,950
76,335
8,679
15,683
2,974,011
2,875,105
as of 31.12.2001
(€ thousand)
0
2,289,327
51,351
10,444
28,162
16,617
0
578,110
140,500
394,327
as of 31.12.2000
(€ thousand)
3,678
2,044,554
5,728
10,794
40,967
29,399
287
739,698
140,500
595,834
0
42,200
1,083
0
686
0
0
2,678
2,974,011
2,875,105
51
STATEMENT OF CHANGES IN EQUITY
Subscribed
capital
Capital
reserve
Retained
earnings
Revaluation
reserve
Consolidated
profit/loss
Total
2001
Total
2000
140,500
595,834
686
0
2,678
739,698
62,817
–
3,875
0
–
– 3,875
0
0
–
–
– 2,646
–
0
– 2,646
0
–
–
–
–
–
–
0
0
0
1,083
–
–
0
0
0
1,083
0
0
0
695,500
6,183
–
–
0
–
– 160,657
– 160,657
2,678
–
–
–
–
632
0
–
–
0
0
632
0
0
– 19,803
–
140,500
– 205,382
394,327
43,528
42,200
–
1,083
161,854
0
0
578,110
– 7,677
739,698
€ (thousand)
Equity as of 1.1.
Reversal of the correction
per 31.12.2000
Booking of valuation differences
due to swap transactions
pursuant to IAS 39
Formation of a revaluation
reserve pursuant to IAS 39
Capital increases
Appropriation of consolidated loss
Consolidated profit/
consolidated loss
Changes in differences arising
from currency translation
Costs of IPO
Transfer from reserves/
allocation to reserves
Equity as of 31.12.
52
CASH FLOW STATEMENT
Cash flow statement
in € (thousand)
Net profit/net loss
Non-cash positions in net income and adjustments to reconcile
net income to net cash provided by operating activities
Write-downs, depreciations, adjustments and write-ups
to fixed assets and changes in provisions
Loss/profit from the sale of financial investments and fixed assets
Other adjustments (net)
Subtotal
Change in assets and liabilities from operating activities after
correction for non-cash components
Claims
– on banks
– on customers
Securities
Other assets from operating activities
Liabilities
– to banks
– to customers
Other liabilities from operating activities
Interest and dividends received
Interest paid
Income tax paid
Cash flow from operating activities
Change from investing activities (net)
Proceeds from capital increases
Change from subordinated capital and other (net)
Net cash provided by financing activities
Cash and cash equivalents at the end of the previous period
Cash flow from operating activities
Cash flow from investing activities
Net cash provided by financing activities
Effects of changes in exchange rates
Cash and cash equivalents at the end of the period
1 January – 31 December
2001
2000
– 160,657
2,678
32,830
114
– 16,798
– 144,511
19,936
0
– 20,384
2,230
– 683,544
311,497
284,171
55
211,425
– 255,385
– 447,738
– 20,803
– 3,678
244,773
3,197
143,612
– 64,538
0
91,034
– 7,394
0
– 12,782
– 12,782
– 18,363
– 107,639
– 5,248
111,601
– 61,609
– 4,104
– 595,633
– 103,373
655.885
0
655,885
515
91,034
– 7,394
– 12,782
632
72,005
43,636
– 595,633
– 103,373
655,885
0
515
53
NOTES
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2001
Accounting principles
The consolidated financial statements of comdirect bank as of 31. December, 2001 were prepared in accordance with the International Accounting Standards (IAS) approved and published by the International
Accounting Standards Committee (IAS) and with their interpretation by the Standing Interpretations
Committee (SIC).
A summary of all the regulations that have been applied can be found on pages 55 and 56.
As a subsidiary of Commerzbank AG, Frankfurt am Main, we are exempted in accordance with Art. 291,
German Commercial Code (HGB), from the duty to present sub-group financial statements. As we have not
presented the main differences between financial statements prepared in accordance with IAS and those
prepared in accordance with the German Commercial Code, these consolidated financial statements do not
conform to the 4th and 7th EC directives and do not, therefore, exempt us from presenting consolidated
financial statements in accordance with Art. 292a, HGB. The consolidated financial statements have been
prepared in order to satisfy the admission requirements of the Neuer Markt.
The consolidated financial statements also reflect the standards approved by German Accounting Standards Board (GASB) and published by the German Federal Ministry of Justice pursuant to Art. 342, (2), HGB.
The comdirect sub-group is included in the consolidated financial statements of our parent company.
The consolidated financial statements of Commerzbank as of 31 December, 2000 were deposited with the
lower regional court (Amtsgericht) of Frankfurt am Main under the commercial register no. 32000 and
published in the Federal Gazette, no. 111, page 660977 of 20 June, 2001.
We report on both the implementation of the German legislation for control and transparency in the
corporate sector (KonTraG) and on the risks posed by future development, pursuant to Art. 315, (1), HGB in
the risk report.
In addition to the income statement and the balance sheet, the consolidated financial statements also
include the statement of changes in equity, a cash flow statement and the notes. Segment reporting
appears as part of the notes, on page 77.
Unless otherwise indicated, all the amounts are shown in thousands of euros.
Accounting and measurement methods
(1) Basic principles
The consolidated financial statements of comdirect are based on the going concern principle.
For our subsidiaries in France (comdirect S.A., Paris/France) and Italy (comdirect bank S.p.A., Milan/Italy), no
selling agreement had been signed or the liquidation of the company in question had not been completed
by the day on which the balance sheet and income statement were prepared. In view of the decisions
taken by the majority shareholder, we have not applied the going concern principle to these subsidiaries.
54
The principle of profit or loss for the period is applied in our consolidated financial statements. Income and
expenses are recognised on a pro-rata basis; they are shown for the period to which they may be assigned
in economic terms.
As a matter of principle, accounting is at net book value, with the exception of financial instruments as
defined by IAS 39, which are shown at their fair value. These financial instruments appear under the items
Trading assets and Financial investments.
All the companies included in the consolidation prepared their financial statements as of 31 December
2001.
(2) IAS, SIC and GASB rules applied
Within the comdirect Group and within the Commerzbank Group, to which it belongs, only those IASs and
SICs are applied for accounting and measurement purposes which had been approved and published by
31 December, 2001.
The interpretation of the standard with regard to Consolidation – Special purpose entities – (SIC-12) was
not applied, as no holdings existed on the balance-sheet date.
The follow list provides a summary of the International Accounting Standards (IASs) applied in comdirect's
2001 consolidated financial statements.
IAS 1
IAS 7
IAS 8
IAS 10
IAS 12
IAS 14
IAS 16
IAS 17
IAS 18
IAS 19
IAS 21
IAS 22
IAS 24
IAS 26
IAS 27
IAS 30
IAS 32
IAS 33
IAS 35
IAS 36
IAS 37
IAS 38
IAS 39
Presentation of financial statements
Cash flow statements
Net profit or loss for the period, fundamental errors and changes in accounting policies
Events after the balance-sheet date
Income taxes
Segment reporting
Property, plant and equipment
Leases
Revenue
Employee benefits
The effects of changes in foreign-exchange rates
Business combinations
Related party disclosures
Accounting and reporting by retirement benefit plans
Consolidated financial statements and accounting for investments in subsidiaries
Disclosures in the financial statements of banks and similar financial institutions
Financial instruments: disclosure and presentation
Earnings per share
Discontinuing operations
Impairment of assets
Provisions, contingent liabilities and contingent assets
Intangible assets
Financial instruments: recognition and measurement
55
NOTES
In addition, we provide a list below of the SIC interpretations relevant for us, which we have taken into
consideration in our 2001 consolidated financial statements.
SIC-6
SIC-7
SIC-15
SIC-17
SIC-18
Costs of modifying existing software
Introduction of the euro
Operating leases – incentives
Equity costs of an equity transaction
Consistency – alternative methods
relates to:
Framework
IAS 21
IAS 17
IAS 32
IAS 1
(3) Consolidated companies
Apart from the parent company, the consolidated companies consist of three subsidiaries, so that altogether four companies were included in our consolidated financial statements. comdirect bank AG holds
over 50% of the capital of each subsidiary directly. A detailed presentation of holdings appears on page 80.
(4) Principles of consolidation
The consolidation of the capital accounts is based on the book-value method, whereby the historical cost
of the shares held by the parent company in each individual subsidiary and the share of each subsidiary's
capital held by the parent company are set off against the proportion of the subsidiary's equity that was
acquired.
On principle, any residual positive differences in amount are shown as goodwill under intangible assets in
the balance sheet and depreciated to reflect their probable economic lives over a period of 15 years, using
the straight-line method.
Ordinary amortisation of goodwill are included in other operating results and the extraordinary
amortisation of goodwill are included in extraordinary result and restructuring expenses. We draw
attention to the remarks on Intangible assets on page 69.
Intra-group expenses and income, as well as claims and liabilities, are eliminated as part of the
consolidation.
Minority shares in equity and profit or less are shown separately as minority interests and as profit/loss
attributable to minority interests.
As part of our efforts to sell comdirect S.A., Paris/France, we purchased the shares held by outside shareholders as of January 2002, raising our interest in the company to 100%.
(5) Changes in accounting and disclosure methods
IAS 39 was applied at Group level for the first time for the 2001 financial year. As this standard may not be
applied retrospectively all by itself, the year-ago figures have not been adjusted.
The quarterly reports published by comdirect in 2001 already incorporated aspects of IAS 39.
56
IAS 39 regulates how financial instruments are treated in the balance sheet, and especially their
recognition and measurement.
All financial instruments, including all financial derivatives, are shown using the “trade date accounting”
method.
Throughout the Group, all financial instruments are assigned exclusively either to the “available for sale”
or “trading” categories.
The “available for sale” category includes all the bonds, other fixed-income securities and also equities and
other variable-yield securities not held for trading purposes.
Securities from the trading portfolio and unsecured derivative financial instruments are assigned to the
trading category.
As part of the first-time application of IAS 39, we have adjusted the opening balance sheet to recognise the
valuation differences for derivative financial instruments due to the book value approach and the current
values to be attributed, and to show these within equity under retained earnings, taking deferred taxes
into account.
Taking deferred taxes into account, we have recognised valuation differences arising from other financial
instruments under equity in the item revaluation reserve. As of end-2001, the revaluation reserve amounted to € 1,083 thousand.
As of 31 December, 2001, we measured all the financial instruments in the “available for sale” and
“trading” categories at market prices in active markets.
The profits generated by the disposal or maturing of financial instruments assigned to the “available for
sale” category amounted to altogether € 350 thousand as of 31 December, 2001. The corresponding losses
came to € 6 thousand.
The interest income generated by the financial instruments assigned to the “available for sale” category
amounted to € 61,732 thousand at end-2001.
(6) Currency translation
The items from the income statement and also the assets and liabilities from the balance sheet which are
denominated in foreign currencies are translated at the spot rates of the balance-sheet date.
Holdings in affiliated companies that are denominated in foreign currencies appear at historical cost.
comdirect nets translation gains and losses from the consolidation of the capital accounts against retained
earnings.
The annual financial statements prepared by our subsidiaries in foreign currencies are translated at the
spot rates of the balance-sheet date. Any income and expenses resulting from translation appear in the
income statement.
57
NOTES
The most important translation rates for the comdirect Group can be found in the table below:
Unit / 1 €
GBP
FRA
ITL
31.12.2001
0.6085
6.55957
1,936.27
31.12.2000
0.6241
6.55957
1,936.27
(7) Claims
All claims on banks and customers are shown at amortised cost without valuation allowances.
Valuation allowances to claims appear under provisions for possible loan losses.
On the balance-sheet date, we had no acquired claims, i.e. sections of a credit originated by another lender,
in our portfolio.
(8) Provisions for possible loan losses
Valuation allowances, in the form of individual and lump-sum valuation allowances, are formed exclusively
for claims on customers.
Throughout the Group, the relevant individual valuation allowances are formed on the scale of the potential default to cover credit-standing risks related to claims on customers.
We cover latent credit risks by means of lump-sum valuation allowances. Past loan losses serve as a yardstick for the scale on which such lump-sum valuation allowances have to be formed.
Unrecoverable accounts are written down immediately. Amounts received on such claims appear in the
income statement. Claims are deemed unrecoverable if income from them is unlikely to be received in the
foreseeable future or if they have been waived either wholly or in part.
(9) Trading assets
Securities acquired as part of the small trading portfolio and derivative financial instruments (swaps)
appear under Assets held for dealing purposes.
On the balance-sheet date, only interest-rate swaps measured at fair value were included under this item.
Realised gains and losses from the purchase and sale of securities from the small trading portfolio are
shown in the income statement under Trading profit.
Gains or losses registered upon remeasurement of the derivative financial instruments are also included in
the Trading profit.
The Trading profit also reflects all the interest and dividend income arising from the trading portfolio.
(10) Financial investments
Under Financial investments, we show all the securities which we have assigned to the “available for sale”
category.
58
On the balance-sheet date, bonds and other fixed-income securities as well as investment fund units were
assigned to the “available for sale” category.
All the securities of this category were measured at their fair value.
Gains or losses on remeasurement are recognised with an income-neutral effect in the form of a revaluation reserve as part of equity.
All the interest income generated by securities of the “available for sale” category is shown under Interest
received.
(11) Intangible assets
Under Intangible assets, we include software produced in-house and Goodwill. Purchased software is
shown under Fixed assets.
More details can be found under Changes in book value of fixed assets and investments (page 70,
note 39).
Software produced in-house is recognised if all the provisions of IAS 38 are met. Recognition is made at
producer cost, reflecting only the costs that can be assigned directly to the specific project.
In principle software produced in-house is amortised against earnings over a period of five years.
The goodwill created by the acquisition of comdirect S.A. was examined on the balance-sheet date with
regard to its future utility.
We have found that under existing conditions no future utility can be expected. As a result, we made an
extraordinary write-down of € 25,924 thousand in the year under review.
The extraordinary write-down is shown in the income statement under Extraordinary result and restructuring expenses.
(12) Fixed assets
Only office furniture and equipment and purchased software are included here.
All the fixed assets are capitalised at cost and depreciated using the straight-line method to reflect their
probable useful economic lives.
In determining the useful life of an asset, its likely physical wear and tear, its technical obsolescence and
also legal restrictions are taken into consideration. All fixed assets are de-preciated over a period of two to
ten years.
Gains and losses arising from the sale of fixed assets are shown in the income statement under Other
operating result.
We made extraordinary depreciation on fixed assets in the year under review when the amount that could
probably be achieved through future use had fallen below their book value.
59
NOTES
(13) Other assets
Other assets mainly consist of other assets on Commerzbank AG and deferred items.
(14) Liabilities
Liabilities are shown at the respective amounts to be repaid.
(15) Other liabilities
Other liabilities consist primarily of trade liabilities, liabilities to Commerzbank AG not arising from
banking activities, tax liabilities not related to earnings and accruals.
(16) Provisions for pensions and similar commitments
The pension commitments that are shown exist solely towards members of the Board of Managing
Directors of comdirect bank AG. These are based on the length of service, the pensionable salary and
the currently valid scales for employer subsidies.
In accordance with IAS 19, the projected-unit-credit method was used to calculate pension commitments.
Commitments are calculated on the basis of actuarial surveys. The calculation also takes into account the
rates of increase for salaries and pensions that can be expected in the future.
If actuarial commitments prove to be higher or lower, these are recognised under Personnel costs.
(17) Other provisions
Other provisions were formed for liabilities of uncertain amount towards third parties.
In addition, we have formed provisions for contingent losses for existing adverse agreements, in which the
expense required in order to fulfil the agreement is greater than the income generated by the agreement.
We formed the major provisions for contingent losses on account of restructuring measures, i.e. due to the
sale or closure of our subsidiaries in France and Italy.
(18) Taxes on income
Tax expenses are shown under Taxes on income. A breakdown of this item into current and deferred taxes
on income can be found in these notes on page 66, note 30.
Deferred taxes were formed in accordance with IAS 12. Temporary differences are the result of the
discrepancy between assigned values in accordance with IAS and the respective tax rate that was applied.
These temporary differences are measured using the specific income-tax rates which apply in the country
where the company in question has its seat and which can be expected to apply for the period in which
they are realised. Deferred taxes on as yet unused losses carried forward are only shown for comdirect
bank AG. Deferred taxes on losses carried forward formed in previous years have been released.
Deferred tax assets and liabilities are netted against one another in Germany, as they exist towards the
same tax authority.
Claims on tax authorities are shown under Tax assets in the balance sheet.
Other taxes not related to income appear under Other operating result in the income statement.
60
When the profit-and-loss-transfer agreement was terminated on 31 December, 1999, it was assumed –
with the agreement of the tax authorities – that, for accounting purposes, the integrated inter-company
relationship between comdirect bank AG and Commerzbank AG had ceased to exist. In a final judgement,
however, it was decided that this relationship continued to exist as regards turnover and trade tax for the
2000 and 2001 assessment periods. As a result of the amendments to Germany's legislation on the further
development of corporate taxation, the fiscal unity in terms of trade tax ended on 31 December, 2001;
and was maintained only with regard to turnover tax as from 2002.
(19) Conditional and authorised capital
Through the resolution adopted on 10 April, 2000, and its entry into the commercial register on 19 April,
2000, authorised capital of € 60,000 thousand was created. The authorisation for the capital increase
expires on 31 March, 2005.
In addition, since the resolution adopted on the same date and entered into the commercial register on
31 May, 2000, conditional capital of € 3,600 thousand was created in order to issue subscription rights
as part of the bank's stock option scheme.
(20) Transfer from reserves
In connection with decisions relating to our subsidiaries in Italy and France in the 2001 financial year,
we have transferred a net € 160,657 thousand from reserves in order to cover the accumulated losses.
(21) Earnings per share
Earnings per share calculated in accordance with IAS 33 are based on the net profit/loss for the year.
We show both the undiluted and the diluted earnings per share below the income statement.
In working out the undiluted result, we have set off the net profit/loss for the year against the average
number of shares in the financial year.
The diluting effects result from a stock option scheme launched in July 2000 with a maximum of 3,600,000
subscription rights, 875,000 option rights of which had been issued in two tranches per 31 December,
2001.
In calculating the diluting effects, we set off the two sub-sets of rights under the stock option scheme with
their conditions against well-founded estimated values for them and took account of the residual amount.
The nominal value per share is 1 euro.
(22) Relations with affiliated companies
comdirect uses services provided by Commerzbank AG through a general agreement concluded in
December 1999 (and effective as from 1 January, 1999) and also services agreed separately on this basis.
The general agreement has a fixed term of five years and ends on 31 December, 2003. It is automatically
extended for a further period of three years, unless one of the parties to the agreement gives notice at
least 18 months before the agreement expires.
61
NOTES
On the basis of the general agreement, the following services were agreed upon and were used during the
2001 financial year:
• Trading services
• Processing services
• Payments and cash dispenser service
• IT services
• Other services
In February 2000, comdirect concluded another general agreement with Commerzbank, in which Commerzbank undertook to provide internal auditing services on the basis of a plan to be agreed separately.
The agreement was concluded for an indefinite period and may be terminated giving six months' notice
before the end of the calendar year, but not before 31 December, 2002.
comdirect is party to an agreement of Commerzbank with Commerzbank Capital Markets, enabling
comdirect to trade on US stock exchanges.
On 22 March, 2000, comdirect concluded an agreement with Commerzbank concerning support for
comdirect after its IPO. Among other things, the agreement relates to support for PR activities, compliance
with stock-exchange and other obligations resulting from admission to the stock exchange and advice on
the holding of the first public annual general meeting of shareholders in 2001.
Commerzbank received compensation in line with market rates for the goods and services it provides for
comdirect.
When forming or purchasing subsidiaries, comdirect pledged directly or indirectly to ensure that they
comply with the specific equity capital requirements of the country in question.
In this connection, comdirect allocated equity of € 39,978 thousand to comdirect S.A., Paris/France, in the
2001 financial year.
Over the same period, comdirect bank S.p.A, Milan/Italy, was allocated € 20,800 thousand.
comdirect ltd, London/United Kingdom, received equity of € 12,356 thousand in the 2001 financial year.
62
(23) Net interest income
€ (thousand)
Interest and dividends from shares and other non-fixed interest
securities held in the “available for sale” portfolio
Interest income from fixed-income securities held in the
“available for sale” portfolio and from government-inscribed debt
Other interest income including discount surplus
Interest on participation rights and subordinate liabilities
Other interest expenses
Total
2001
2000
18,589
4,876
43,143
76,889
– 1,050
– 63,488
74,083
35,485
80,685
– 1,491
– 61,838
57,717
2001
2000
– 4,215
2,356
– 222
7
– 2,074
– 2,151
211
– 37
11
– 1,966
2001
2000
89,316
3,335
367
93,018
189,172
1,408
283
190,863
(24) Provision for possible loan losses
The provisions of the comdirect Group breaks down as follows:
€ (thousand)
Allocations to provisions
Write-back of provisions
Direct write-downs
Income received on written-down claims
Total
(25) Net commission income
€ (thousand)
Securities transactions
Payment transactions
Other commissions
Total
63
NOTES
(26) Trading profit
All the financial instruments assigned to theAssets held for dealing purposes are measured at fair value.The results arising from trading activities are
included along with interest and dividend income, attributable to instruments shown under Assets held for dealing purposes, in the Trading profit.
€ (thousand)
2001
2000
Result of securities trading
Result from trading in bonds and notes
Result from trading in shares and other non-fixed interest securities
Other trading result
Result from trading in interest-rate risks
Valuation result
Interest-rate derivatives
Total
– 332
9
– 341
– 726
– 726
1,029
1,029
– 29
– 133
0
– 133
0
0
0
0
– 133
2001
2000
– 42,484
– 8,398
– 550
– 51,432
– 36,170
– 6,739
– 604
– 43,513
€ (thousand)
2001
2000
Costs of company pension scheme
Contributions to Versicherungsverein des Bankengewerbes a.G. (BVV)
Total
– 535
– 15
– 550
– 594
– 10
– 604
(27) Administrative expenses
Personnel expenses
€ (thousand)
Wages and salaries
Compulsory social-security contributions
Expenses for pensions and other employee benefits
Total
Breakdown of expenses for pensions and other employee benefits
64
General operating expenses
€ (thousand)
Costs of advertising, PR and representation
Communication expenses
Consulting expenses
External services
Other general operating expenses
Total
2001
2000
– 55,356
– 16,552
– 12,510
– 28,992
– 30,769
– 144,179
– 59,148
– 19,929
– 22,105
– 38,675
– 19,305
– 159,162
The expenses for operating lease contracts are considered as rental expenses and included in the other general operating expenses.
Depreciation of office furniture and equipment and intangible assets
€ (thousand)
Office furniture and equipment
Intangible assets
Total
2001
2000
– 23,986
– 4,720
– 28,706
– 15,677
– 2,599
– 18,276
(28) Other operating result
The Other operating result primarily comprises income from tax consolidations, income from recoverable input taxes and income from the
writing-back of provisions. Other details on taxes and tax consolidation can be found in these notes on page 60 ff.
€ (thousand)
Other operating expenses
Payments to settle customers' complaints/provisions for process risks in direct brokerage business
Depreciation of goodwill
Sundry expense items
Other operating income
Income from recoverable input taxes
Income from the writing-back of provisions and accruals
Income from tax consolidation
Sundry income items
Total
2001
2000
– 6,146
– 2,305
– 2,043
– 1,798
12,805
2,630
1,465
4,153
4,557
6,659
– 5,768
– 3,288
– 1,761
– 719
5,803
3,810
487
0
1,506
35
65
NOTES
(29) Extraordinary result and restructuring costs
Due to restructuring decisions relating to our subsidiaries, the comdirect bank Group's extraordinary result and restructuring costs comprises
the following expenses and income:
€ (thousand)
Extraordinary expenses
extraordinary depreciation of goodwill
extraordinary depreciation on investments
extraordinary depreciation on intangible and fixed assets
Restructuring costs (especially personnel costs and expenses arising from current contracts)
Costs of disposal/liquidation
Sundry expenses
Extraordinary income
Proceeds from disposal
Total
2001
2000
– 98,340
– 25,924
– 10,500
– 21,196
– 21,575
– 17,398
– 1,747
76
76
– 98,264
0
0
0
0
0
0
0
0
0
0
All the effects on net profit of the closure of comdirect S.p.A. and the disposal of comdirect S.A. are included in this item.
(30) Taxes on income
€ (thousand)
Current taxes on income
Deferred taxes
Total
2001
2000
– 906
10,983
10,077
32,048
– 8,677
23,371
Transitional presentation of income taxes
€ (thousand)
multiplied by the German income tax rate of 36.93%
= calculated income-tax expenses in part financial year
– effects of different domestic tax rates on current income taxes and deferred taxes
– effects of different income-tax rates in the various countries where group companies based
+ amortisation of goodwill
+ effects of taxes on income in previous years
+ effects due to extraordinary results
+ effects on deferred taxes on losses carried forward
– effect of consolidation measures
– other causes
Total
66
2001
– 150,580
– 55,609
623
2,109
10,311
2,149
75,392
8,816
27,586
664
10,077
(31) Cash reserve
Cash reserve breaks down as follows:
€ (thousand)
Cash on hand
Balances with central banks
Total
31.12.2001
31.12.2000
232
71,773
72,005
131
384
515
The minimum reserve requirement to be met at the end of December 2001 totalled € 44,756 thousand (2000: € 40,690 thousand).
(32) Claims on banks
Total
€ (thousand)
31.12.2001
31.12.2000
German banks
Foreign banks
Total
1,600,166
83,946
1,684,112
959,357
47,120
1,006,477
Due on demand
31.12.2001
31.12.2000
1,098,541
46,446
1,144,987
291,935
47,120
339,055
Other claims
31.12.2001
31.12.2000
501,625
37,500
539,125
667,422
0
667,422
Claims on banks include foreign-currency amounts equal to € 39,310 thousand (2000: € 15,535).
Claims on banks primarily consist of overnight money and fixed deposits (€ 1,634,874 thousand / 2000: € 964,015 thousand, incl. “occured
interest”).
(33) Claims on customers
Claims on customers consist of:
Total
€ (thousand)
Claims on
domestic customers
Public-sector entities
Private customers
Claims on
foreign customers
Private customers
Total
Due on demand
31.12.2001
31.12.2000
Other claims
31.12.2001
31.12.2000
31.12.2001
31.12.2000
261,293
0
261,293
571,294
10,029
561,265
261,293
0
261,293
561,265
0
561,265
0
0
0
10,029
10,029
0
2,435
2,435
263,728
4,230
4,230
575,524
2,435
2,435
263,728
4,230
4,230
565,495
0
0
0
0
0
10,029
All claims on private customers are deemed to be due on demand. Claims on customers include € 250,603 thousand (2000: € 548,127 thousand) from loans to finance purchases of securities. These claims are loans secured by securities. In view of the concentration of loans, we point
out that the original loan business is carried out with private customers only.
Claims on customers include foreign-currency amounts equal to € 75 thousand (2000: € 15 thousand).
67
NOTES
(34) Provision for possible loan losses
€ (thousand)
Balance 1 January
Allocations
Deductions
of which utilised
of which written back
Exange-rate changes
Provision for
possible loan losses
as of 31 December
Credit default risks
31.12.2001
31.12.2000
General provisions
31.12.2001
31.12.2000
Total
31.12.2001
31.12.2000
– 3,149
– 4,215
2,459
103
2,356
0
– 1,254
– 2,151
256
45
211
0
– 31
0
0
0
0
0
– 31
0
0
0
0
0
– 3,180
– 4,215
2,459
103
2,356
0
– 1,285
– 2,151
256
45
211
0
– 4,905
– 3,149
– 31
– 31
– 4,936
– 3,180
The adjusted value of non-interest bearing non-productive claims amounts to € 4,943 thousand (2000: € 3,268 thousand).
The comdirect Group made a direct write-down of € 222 thousand (2000: € 37 thousand) and recorded receipts on written-down claims in an
amount of € 7 thousand (2000: € 11 thousand).
The total balance of risk provisions for credit default risks breaks down as:
€ (thousand)
German borrowers
Foreign borrowers
Total
31.12.2001
31.12.2000
– 4,831
– 74
– 4,905
– 3,137
– 12
– 3,149
(35) Trading assets
Under this item, financial instruments acquired as part of the small trading portfolio are shown at fair value. In addition, derivative financical
instruments assigned to trading with positive fair values and interest for the respective period appear here.
€ (thousand)
Shares and other non-fixed interest
Shares
German securities
Foreign securities
Other non-fixed interest securities
Positive market value attributable to derivate financial instruments
Interest-rate derivatives
Total
There were no restrictions on the disposal of any of the trading assets as of the balance sheet date.
68
31.12.2001
31.12.2000
1,226
0
0
0
1,226
938
938
2,164
883
883
636
247
0
0
0
883
(36) Financial investments
All the financial instruments shown under Financial investments are assigned to the “available for sale” category and are measured at fair
value.
€ (thousand)
Bonds and other fixed-income securities of the “available for sale” portfolio
Bonds and notes
issued public-sector borrowers
issued by other borrowers
Investments
Shares and other non-fixed interest securities of the “available for sale” portfolio
Holdings in subsidiaries
Total
31.12.2001
31.12.2000
840,719
840,719
0
840,719
0
20,493
0
861,212
910,943
910,943
0
910,943
10,500
231,796
0
1,153,239
There were no restrictions on the disposal of any of the financial assets as of the balance-sheet date.
Through a resolution of 31 December, 2001 the Wiesbaden lower regional court opened bankruptcy proceedings against the assets of Censio
AG. We no longer expect a repayment of capital. For this reason, comdirect bank AG entirely wrote its investment in 2001. The impact of this
write-off on the bank's net profit and loss is shown under the position Extraordinary result and restructuring costs.
On the balance-sheet date, no write-downs were made due to permanent impairment on financial instruments measured at fair value.
(37) Intangible assets
€ (thousand)
Goodwill
Other intangible assets
Total
31.12.2001
31.12.2000
0
22,076
22,076
27,052
13,898
40,950
31.12.2001
31.12.2000
45,816
76,335
Changes in fixed assets are shown in schedule of assets (page 70, note 39).
(38) Fixed assets
€ (thousand)
Office and furniture equipment
Changes in fixed assets are shown in schedule of assets (page 70, note 39).
69
NOTES
(39) Schedule of assets
Fixed assets
Software
Other
Intangible assets
Other
Goodwill
Investments
€ (thousand)
Book value as of 1 January 2001
Costs of acquisition/manufacture
as of 1 January 2001
Additions 2001
Disposals 2001
Costs of acquisition/manufacture
as of 31 December 2001
Cumulative write-downs
as of 1 January 2001
Additions 2001
Disposals 2001
Cumulative write-downs
as of 31 December 2001
Book value as of 31 December 2001
10,705
65,630
13,898
27,052
10,500
17,919
5,344
– 2,065
89,213
10,041
– 910
20,841
12,898
0
28,813
915
0
10,500
0
0
21,198
98,344
33,739
29,728
10,500
7,214
9,173
– 826
23,583
36,067
– 1,485
6,943
4,720
0
1,761
27,967
0
0
10,500
0
15,561
5,637
58,165
40,179
11,663
22,076
29,728
0
10,500
0
Additions to write-downs in 2001 relate to extraordinary write-downs of € 57.620 thousand. These are spread between the items goodwill,
investments, fixed assets and intangible assets.
(40) Other assets
€ (thousand)
31.12.2001
31.12.2000
Deferred items
Sundry assets
Total
5,693
12,507
18,200
1,211
14,472
15,683
31.12.2001
31.12.2000
8,494
4,013
12,507
9,446
5,026
14,472
Sundry assets comprise the following items:
€ (thousand)
Claims on affiliated companies
Other
Total
70
(41) Liabilities to banks
Total
€ (thousand)
31.12.2001
31.12.2000
German banks
Foreign banks
Total
0
0
0
1,918
1,760
3,678
Due on demand
31.12.2001
31.12.2000
0
0
0
0
0
0
Other liabilities
31.12.2001
31.12.2000
0
0
0
1,918
1,760
3,678
(42) Liabilities to customers
Total
€ (thousand)
Liabilities to domestic
private customers
Liabilities to foreign
private customers
Total
Due on demand
31.12.2001
31.12.2000
Other liabilities
31.12.2001
31.12.2000
31.12.2001
31.12.2000
2,196,023
2,011,316
2,150,113
1,999,863
45,910
11,453
93,304
2,289,327
33,238
2,044,554
92,433
2,242,546
32,979
2,032,842
871
46,781
259
11,712
Foreign-currency amounts equal to € 28,846 thousand (2000: € 2,550 thousand).
Through the deposit insurance scheme of the Association of German Banks, Cologne, each customer of comdirect bank AG is insured for
deposits of up to € 233 millions.
In addition, comdirect bank AG is a member of Entschädigungseinrichtung deutscher Banken GmbH.
71
NOTES
(43) Provisions
€ (thousand)
Provisions for pensions and similar commitments
Other provisions
Total
31.12.2001
31.12.2000
1,775
49,576
51,351
1,337
4,391
5,728
The changes in provisions for pensions were as follows:
€ (thousand)
Pension expectancies of active employees
as of
1.1.2001
Utilised/
change
Depreciation
Allocation
as of
31.12.2001
1,337
0
0
438
1,775
The allocations to pension provisions in 2001 break down as follows:
312 € (thousand)
95 € (thousand)
2 € (thousand)
Service cost
Interest cost
Cost arising from changes in actuarial assumptions
In the 2001 financial year, comdirect bank AG took over pension provisions of € 29 thousand due to staff recruitment.
Actuarial gains and losses are amortised over three years (2001: 2 € thousand).
Parameters
Calculatory interest rate
Changes in salaries
Changes in pensions
31.12.2001
31.12.2000
31.12.1999
5.75 %
3.00 %
1.50 %
6.50 %
3.50 %
2.00 %
5.75 %
3.00 %
2.00 %
Changes in other provisions:
€ (thousand)
Provisions for staff
Provisions for anniversary bonuses
Provisions for non-income-related taxes
Provisions for contingent losses
Other provisions
Total
as of
1.1.2001
Utilised
Depreciation
Allocation
as of
31.12.2001
2,277
87
145
0
1,882
4,391
1,757
33
0
0
851
2,641
324
45
0
0
815
1,184
2,033
32
877
44,234
1,834
49,010
2,229
41
1,022
44,234
2,050
49,576
Provisions for staff mainly relate to provisions for bonuses. The provisions for staff will probably be used in the 2002 financial year.
72
Changes in provisions for contingent losses break down as follows:
€ (thousand)
Provisions for contingent losses
Restructuring
Other
as of
1.1.2001
Utilised
Depreciation
Allocation
as of
31.12.2001
0
0
0
0
0
0
0
0
0
44,234
39,890
4,344
44,234
39,890
4,344
The scale of the contingent losses for restructuring was measured on the basis of the information expected expenses that were available when
the financial statements were prepared.
(44) Tax liabilities
Tax liabilities are comprised as follows:
€ (thousand)
Current tax liabilities
Provisions for income taxes
Deferred tax liabilities
Total
31.12.2001
31.12.2000
5,683
5,683
4,761
10,444
7,287
7,287
3,507
10,794
The provision for taxes on income includes tax liabilities for which no final formal assessment note has been received. Deferred taxes are
attributable to temporary differences between the values assigned to assets and liabilites in the balance sheet according to IAS and the
balance sheets prepared by Group companies in accordance with local tax provisions.
Deferred tax liabilities were created in connection with the following balance sheets accounts:
€ (thousand)
Trading assets
Intangible assets
Fixed assets
Provisions
Equity
Total
31.12.2001
31.12.2000
23
347
2,300
7,575
– 68
– 2,226
– 3,190
4,761
23
0
– 1,559
5,237
0
– 194
0
3,507
The domestic income tax rate used to compute deferred taxes is composed of the applicable tax rates effective in Germany for corporate income
tax (25.0 %), plus the solidarity surcharge (5.5%) and the trade tax (14.3%) taken together. This yields a domestic income tax rate of 36.93%.
73
NOTES
(45) Subordinated capital
€ (thousand)
Subordinated liabilities
Profit-sharing certificates outstanding
Total
31.12.2001
31.12.2000
6,391
10,226
16,617
6,391
23,008
29,399
The subordinated capital (€ 16,617 thousand) meets the requirements of supplementary capital as defined by Art.10, paragraph 5 (a) of the
German Banking Act. The claims of creditors to repayment of these liabilities are subordinate to those of other creditors.
Terms of subordinated liabilities:
Start of maturity
1996
Amount
€ thousand
Interest rate
per 31.12.2001
Maturity
date
6,391
3.549 %
2006
The interest rate on subordinated liabilities is fixed for three years from the beginning of the period, after which the interest rate is adjusted
annually.
During the financial year, comdirect incurred interest expenses on subordinated liabilities of € 317 thousand (2000: € 270 thousand).
Interest is paid only insofar as such payments do not lead to an accounting loss. The claims of the holders of the profit-sharing certificates are
subordinated to the claims of other creditors.
Terms of the profit-sharing certificates:
Start of maturity
1998
Amount
€ thousand
Interest rate
per 31.12.2001
Maturity
date
10,226
6.000 %
2006
During the financial year comdirect incurred interest expenses on profit-sharing certificates of € 733 thousand (2000: € 1,221 thousand).
This includes also interest expenses for profit-sharing certificates of € 12,782 thousand, which was repaid in 2001. As a net loss for the year is
shown, the interest payment for the current profit-sharing right will not be made in the 2002 financial year.
74
(46) Maturities, by remaining lifetime
Total
Due on demand
and unlimited
in time
Remaining lifetimes as of 31.12.2001
Up to
Three months
One to
three
to one year
five years
months
More than
five years
€ (thousand)
Claims on banks
Claims on customers
Bonds and notes held in the
available for sale portfolio
Total
Total
1,684,112
263,728
1,144,987
263,728
339,125
0
50,000
0
150,000
0
0
0
840,719
2,788,559
0
2,289,327
16,617
2,305,944
20,873
1,429,588
0
2,242,546
0
2,242,546
51,362
390,487
0
20,052
0
20,052
163,860
213,860
0
24,844
0
24,844
501,083
651,083
0
1,885
16,617
18,502
103,541
103,541
0
0
0
0
Remaining lifetimes as of 31.12.2000
Due on demand
Up to
Three months
One to
and unlimited three months
to one year
five years
in time
months
More than
five years
Total
€ (thousand)
Claims on banks
Claims on customers
Bonds and notes – heldas financial investments
Total
Total
1,006,477
575,524
339,049
565,495
414,620
10,029
102,559
0
150,249
0
0
0
910,943
2,492,944
3,678
2,044,554
29,399
2,077,631
0
904,544
3,678
2,032,842
12,782
2,049,302
99,423
524,072
0
5,019
0
5,019
269,574
372,133
0
4,729
0
4,729
459,608
609,857
0
1,964
0
1,964
82,338
82,338
0
0
16,617
16,617
75
NOTES
(47) Claims on/liabilities to affilated companies
€ (thousand)
Claims on banks
Total
31.12.2001
31.12.2000
754,471
0
16,617
771,088
501,358
3,678
29,399
534,435
Fixedinterest gap
€ million
Interest
differential
% points
– 180
507
–3
2.12
– 0.34
– 0.35
31.12.2001
31.12.2000
1,291
1,117
174
1,117
1,536
1,387
149
1,387
517
317
283
854
303
230
(48) Interest-rate risks
Fixed-interest
assets
€ million
interest in %
Up to one year
One to five years
More than five years
2,704
258
20
4.00
4.42
5.25
Fixed-interest
liabilities
€ million
interest in %
2,524
765
17
1.88
4.08
5.60
(49) Number of employees at the end of the reporting period
Group
in Germany
abroad
At comdirect bank AG
of which:
in the call centre
in the back office
in other areas
76
(50) Segment reporting
Segment reporting by geografical markets:
comdirect
Germany
comdirect
Europe,
excluding
Germany
Group
management/
others/
consolidation
comdirect
bank
group
total
72,610
– 2,074
70,536
91,719
– 29
344
159,767
9,241
12,044
– 215,311
– 203,267
1,261
– 204,528
0
– 204,528
1,473
0
1,473
1,299
0
0
64,550
– 786
– 62,564
– 28,204
– 90,768
8,816
– 99,584
0
– 99,584
0
0
0
0
0
0
0
– 1,796
– 1,796
145,251
143,455
0
143,455
0
143,455
74,083
– 2,074
72,009
93,018
– 29
344
224,317
6,659
– 52,316
– 98,264
– 150,580
10,077
– 160,657
0
– 160,657
16,425
20,248
0.9206
12,773
8,458
32.5025
241,633
229,933
6,474
69,038
247
2,043
248,354
301,014
1,932,769
2,252,532
92,304
44,795
– 8,000
– 8,000
2,017,073
2,289,327
€ (thousand)
Trading profit
Result from the securities portfolio (available for sale)
Extraordinary result and restructurings costs
Pre-tax profit
Taxes on income
After-tax profit
Profit/loss atributable to minority interests
Net income/Net loss
Acquisition costs of segment assets
Depreciation of segment assets
Cost/Income ratio
Segment earnings
Segment expenses
Segment assets
Segment debts
29,198
28,706
1.2912
Allocation to the segments is based on the domicile of the subsidiaries or the consolidated company.
77
NOTES
(51) Other liabilities
Rental and leasing agreements concluded by comdirect will lead to expenses of € 7,074 thousand during the 2002 financial year,
€ 9,216 thousand for each of the years 2003 to 2006, and € 6,170 thousand as of the year 2007.
A job guarantee has been given to the city of Kiel.
(52) Letter of comfort
comdirect bank AG provides no general letter of comfort for the subsidiaries included in the consolidated financial statements.
78
(53) The company’s boards
Supervisory board
Klaus-Peter Müller
(since of 10 May, 2001)
Frankfurt am Main
Chairman of the Supervisory Board
Chairman of the Board of Managing Directors of Commerzbank AG,
Frankfurt am Main
Dr. Norbert Käsbeck
(until 10 May, 2001 Chairman of the Supervisory Board)
Frankfurt am Main
Member of the Board of Managing Directors of Commerzbank AG,
Frankfurt am Main
Klaus Müller-Gebel
Frankfurt am Main
Deputy Chairman of the Supervisory Board
Member of the Board of Managing Directors of Commerzbank AG,
Frankfurt am Main
Angelika Kierstein
Quickborn
Chairman of Staff Council of comdirect bank Aktiengesellschaft
Commercial employee
Maria Xiromeriti
Quickborn
Deputy Chairman of Staff Council of comdirect bank
Aktiengesellschaft
Commercial employee
Vorstand
Bernt Weber
Christian Jessen
Dr. Andre Carls
Dr. Franz-Georg Brune
(since 10 May, 2001)
Frankfurt am Main
Co-manager of Frankfurt am Main main branch of Commerzbank AG,
Frankfurt am Main
Dr. Ferdinand Vogel
(until 10 May, 2001)
Frankfurt am Main
Head of IT Development service department
Director of Commerzbank AG, Frankfurt am Main
Burkhard Graßmann
Weiterstadt
Member of the Board of Managing Directors of
T-Online International AG, Weiterstadt
79
NOTES
(54) Shares of comdirect bank AG
Number of shares held by the boards:
Members of the Board of Managing Directors
Dr. Andre Carls
Christian Jessen
Bernt Weber
Members of the Supervisory Board
Klaus-Peter Müller
Klaus Müller-Gebel
Burkhard Graßmann
Angelika Kierstein
Maria Xiromeriti
31.12.2001
700
0
200
0
500
150
0
0
0
0
100
50
31.12.2000
700
0
200
0
500
250
0
0
0
0
200
50
31.12.2001
90,000
13,500
25,500
25,500
25,500
0
0
0
0
0
0
0
31.12.2000
36,000
0
12,000
12,000
12,000
0
0
0
0
0
0
0
The number of options held to subscribe to comdirect bank AG shares breaks down as follows:
Members of the Board of Managing Directors
Dr. Andre Carls
Christian Jessen
Bernt Weber
Members of the Supervisory Board
Klaus-Peter Müller
Klaus Müller-Gebel
Burkhard Graßmann
Angelika Kierstein
Maria Xiromeriti
80
(55) Remuneration and loans to board members
The following remuneration was paid to members of the Board of Managing Directors and members of the Supervisory Board:
€ (thousand)
31.12.2001
31.12.2000
1,290
87
783
99
Supervisory Boards
Neither advance payments nor loans were extended. comdirect did not take on any contingent liabilities.
Holdings
Affiliated companies included in the consolidation:
Domicile
Share of
capital held
in %
London/United Kingdom
London/United Kingdom
100.0
100.0
GBP
GBP
10,485
(1,00)
Paris/France
99.3
EUR
13,064
Milan/Italy
100.0
EUR
6,374
Name
comdirect ltd
comdirect nominee ltd
comdirect S.A.
comdirect bank S.p.A.
Equity
in
thousand
Quickborn, 25 February 2002
The Board of Managing Directors
Bernt Weber
Christian Jessen
Dr. Andre Carls
81
AUDITOR’S CERTIFICATE
We have audited the financial statements, voluntarily prepared by comdirect bank Aktiengesellschaft, consisting of the balance sheet, the income statement and the statements of changes in equity and cash flows
as well as the notes to the financial statements and the management report for the financial year from
1 January to 31 December 2001. The preparation of the financial statements and the management report
are the responsibility of the company’s legal representatives. Our responsibility is to express an opinion,
based on our audit, whether the financial statements are in accordance with International Accounting
Standards (IAS).
We conducted our audit of the financial statements in accordance with German auditing regulations and
generally accepted standards for the audit of financial statements promulgated by the Institut der
Wirtschaftsprüfer in Deutschland (IDW) as well as in accordance with the International Standards on
Auditing (ISA). Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatements. The evidence supporting the
amounts and disclosures in the financial statements are examined on a test basis within the framework
of the audit. The audit includes assessing the accounting principles used and significant estimates made
by the legal representatives, as well as evaluating the overall presentation of the financial statements
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, based on our audit, the financial statements dated 31 December 2001 give a true and
fair view of the net assets, financial position, results of operations and cash flows for the financial year in
accordance with IAS.
Our audit, which also extended to the management report prepared by the Board of Managing Directors
for the financial year from 1 January to 31 December 2001, has not led to any reservations. In our opinion,
on the whole the management report provides a suitable understanding of the company’s position and
suitably presents the risks of future development.
Hamburg, 26 February 2002
BDO Deutsche Warentreuhand Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
82
Rohardt
Dr. Zemke
(German public accountant)
comdirect bank group
We have audited the consolidated financial statements, voluntarily prepared by comdirect bank Aktiengesellschaft, consisting of the balance sheet, the income statement and the statements of changes in
equity and cash flows as well as the notes to the financial statements and the group management report
for the financial year from 1 January to 31 December 2001. The preparation of the consolidated financial
statements and the group management report are the responsibility of the company’s legal representatives. Our responsibility is to express an opinion, based on our audit, whether the consolidated financial
statements are in accordance with International Accounting Standards (IAS).
We conducted our audit of the consolidated financial statements in accordance with German auditing
regulations and generally accepted standards for the audit of financial statements promulgated by the
Institut der Wirtschaftsprüfer in Deutschland (IDW) as well as in accordance with the International Standards on Auditing (ISA). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the consolidated financial statements are free of material misstatements. The
evidence supporting the amounts and disclosures in the consolidated financial statements are examined
on a test basis within the framework of the audit. The audit includes assessing the accounting principles
used and significant estimates made by the legal representatives, as well as evaluating the overall
presentation of the consolidated financial statements. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, based on our audit, the consolidated financial statements dated 31 December 2001 give a
true and fair view of the net assets, financial position, results of operations and cash flows for the financial year in accordance with IAS.
Our audit, which also extended to the group management report prepared by the Board of Managing
Directors for the financial year from 1 January to 31 December 2001, has not led to any reservations. In
our opinion, on the whole the group management report provides a suitable understanding of the group's
position and suitably presents the risks of future development.
Hamburg, 26 February 2002
BDO Deutsche Warentreuhand Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Rohardt
Dr. Zemke
83
REPORT OF THE SUPERVISORY BOARD
In the 2001 financial year, the Supervisory Board carried out its duties under the law and the bank's
statutes, supervising the conduct of the affairs of comdirect bank Aktiengesellschaft.
The Board of Managing Directors provided the Supervisory Board with regular written and oral reports on
the situation and development of comdirect bank Aktiengesellschaft and its subsidiaries comdirect ltd,
London, comdirect S.A., Paris, and comdirect bank S.p.A., Milan, (until January 2001: comdirect services
S.p.A.) and also on all the major business transactions, fundamental issues of business policy, management
and corporate planning.
The chairman of the Supervisory Board was given detailed reports on all the important events at the bank
and within the Group. He received the minutes of the meetings of the Board of Managing Directors along
with the relevant resolutions. In the interest of a steady flow of information and an exchange of opinion
between the Supervisory Board and the Board of Managing Directors, he held regular discussions with the
latter body.
Regular meetings in 2001
The Supervisory Board met altogether five times in the course of the 2001 financial year. It also fulfilled its
duties through the Presiding Committee, which was formed in 1999 from the midst of the Supervisory
Board, and which was convened for one meeting in 2001. The reports, examination and consultations
related to all significant business-policy issues, especially the planning of investments and the bank's
medium-term development, its cost and income situation, the development of its subsidiaries and its
equity investment in Censio AG, Oestrich-Winkel.
The special events of the 2001 business year dealt with by the Supervisory Board were the cost-cutting
measures adopted by comdirect bank AG on account of the persistently poor stock-market situation. Noteworthy in this connection are, for one thing, the decision to dispose of the subsidiaries in France and Italy,
while maintaining expansion at comdirect ltd, London, and, for another, the introduction of short-time
working at comdirect bank AG, initially for a period of six months starting on 1 October 2001. The Supervisory Board also discussed the development of the investment-banking division and the difficult situation of
Censio AG.
Wherever necessary under the law or the bank's statutes, the Supervisory Board approved the transactions
submitted to it.
The Supervisory Board commissioned the auditors elected by the AGM on 10 May, 2001, BDO Deutsche
Warentreuhand Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Hamburg, to conduct the audit.
Approval of the financial statements
The financial statements, the books of account and the combined management report for comdirect bank
AG and the Group (according to IAS) for the 2001 financial year have been examined by the auditors and
carry their unqualified certification. The auditors' reports were made available to the members of the
Supervisory Board in good time. The auditors took part in today's meeting dealing with the accounts, reported on the major findings of their audit and answered questions. The Supervisory Board has signified its
agreement with the results of the audit. Within the scope of the legal provisions, it has examined the financial statements and the combined management report, and also the consolidated financial statements.
84
In view of the outcome of its examination, the Supervisory Board has found no cause for objections.
At today's meeting, the Supervisory Board approved the financial statements presented by the Board of
Managing Directors, which accordingly may be regarded as adopted.
The report of the Board of Managing Directors on the bank's relations with affiliated companies was also
submitted to the Supervisory Board, together with the related auditors' report. The Supervisory Board
examined the report of the Board of Managing Directors. It concurs with its findings and also with those of
the auditors' examination. After completing their examination, the auditors raised no objections to the
report of the Board of Managing Directors and gave it the following unqualified certification:
“After conducting our audit in accordance with professional standards, we confirm that
1. the actual details of the report are accurate,
2. the fees paid by the company for the transactions detailed in the report were not
disproportionately high.”
After completing its examination, the Supervisory Board finds no cause for objection to the concluding
statement by the Board of Managing Directors concerning relations with affiliated companies.
Changes in personnel
With effect from 10 May, 2001, Dr. Norbert Käsbeck and Dr. Ferdinand Vogel resigned from the Supervisory
Board. The Supervisory Board thanks the retired members for their active, constructive and successful
cooperation. By the resolution of the AGM on 10 May 2001, Klaus-Peter Müller and Dr. Franz-Georg Brune
were elected to the Supervisory Board to serve the remaining period of office of the members who had
resigned from the Supervisory Board. The Supervisory Board elected Klaus-Peter Müller as its chairman.
The Supervisory Board thanks the members of the Board of Managing Directors and the employees
for their services and their committed efforts and also the employees' representatives for their sober and
constructive cooperation in the interest of our company.
Frankfurt am Main, 13 March 2002
The Supervisory Board
Klaus-Peter Müller
Chairman
85
STRUCTURE OF THE COMDIRECT GROUP
comdirect bank AG,
Quickborn
100 %
comdirect ltd,
London
99.3 %
comdirect S.A.,
Paris
100 %
7.5 %
comdirect bank
S.p.A., Milan
Group companies included in the consolidated financial statements
Censio AG,
Oestrich-Winkel
Affiliated company in liquidation
BOARD OF
MANAGING DIRECTORS
Bernt Weber
Chairman of the Board of Managing Directors of comdirect bank AG
responsible for Corporate Development,
Communication & Branding, Public Relations and Investor Relations
Christian Jessen
Managing Director of comdirect bank AG
responsible for Service, Customer Relationship Management and
Controlling
Dr. Andre Carls
(since 30 April, 2001)
responsible for Product Management & Investment Banking, Capital
Markets & Investment Banking, Quality Management and Treasury
responsible for Information Technology, Human Resources &
Organisation, Finance, Internal Audit and Legal Affairs/Compliance
86
FINANCIAL CALENDAR
25 March, 2002
Presentation of 2001 results / Analysts’ conference in Frankfurt
10 May, 2002
Annual General Meeting in CCH, Hamburg
10 May, 2002
Quarterly report I/2002
Mid-August, 2002
Quarterly report II/2002
Mid-November, 2002
Quarterly report III/2002
87
CONTACT
Investor Relations
Pascalkehre 15 · D-25449 Quickborn · Germany
Telephone: +49 (0) 4106 / 704-19 66 · Fax: +49 (0) 4106 / 704-19 69
88
DEVELOPMENT
(Index: 2 January, 2001 = 100%)
Placed orders
comdirect
2.1
100
10.3
2.3
80
1997
1998
2000
2001
6.6
4.5
1996
5.1
3.9
0.4
1997
1998
1999
1.1
1.1
0.9
1.1
0.3
0.4
3.0
1.6
60
40
1.8
2.3
1.5
1999
5.6
6.3
1.0
0.9
0.6
1996
7.0
1.5
2.6
114
165
109
61
31
73
226
277
8.7
2.2
NEMAX 50
120
9.0
8.9
Funds volume
15.3
10.2
Executed orders
Deposit volume
615
649
Portfolio volume
539
577
Total customers
20
0
2000
2001
1996
1997
1998
1999
2000
2001
KEY FIGURES
Customer figures
Total customers
Direct brokerage
Placed orders
Executed orders
Securities turnover
Portfolio volume
Group
2001
AG
2001
Group
2000
648,611
615,211
616,891
583,774
577,465
539,195
€ million
€
9,001
13,877
8,798
14,262
10,160
17,594
%
€
€ million
€ million
€ million
€
€
8,692,108
6,565,206
11.4
6.1
3,053
20,045
6,699
1,093
10,889
1,777
7,919,669
6,260,156
11.2
6.3
3,003
18,800
6,553
1,089
11,225
1,865
15,310,536
10,323,367
27.0
3.7
3,545
36,599
8,111
1,127
15,043
2,090
Deposit business
Deposit volume
€ million
€
Financial figures
€ thousand
€ thousand
Pre-tax profit
€ thousand
Earnings per share
€
Balance-sheet total
€ million
Equity
€ million
Equity ratio
%
Cost-income-ratio*
%
%
Employees figures
Number of employees
Group
2001
AG
2001
Group
2000
2,302
3,551
2,245
3,639
2,049
3,548
93,018
74,083
– 150,580
– 1.14
2,974,011
578,110
19.4
129.1
– 30.1
91,719
72,610
– 230,267
– 1.46
2,898,446
573,630
19.8
92.1
6.9
190,863
57,717
25,565
0.03
2,875,105
739,698
25.7
88.9
10.3
1,291
1,110
554
1,117
937
623
1,536
1,287
419
Annual Report 2001
Pascalkehre 15
D-25449 Quickborn
Germany
Telephone: +49 4106 / 704-0
Fax: +49 4106 / 704-11 00
DIRECT
BROKERAGE
2001
Annual Report 2001

DIRECT BROKERAGE 2001

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