Company Valuation Under IFRS : Interpreting and Forecasting ...

Company valuation under IFRS
Exhibit 6.10: Commerzbank accounting and valuation model
1. Commerzbank Balance Sheet (€ million)
2002 2003 2004 2005 2006 2007 2008
Assets
Cash reserve 8,466 7,429 7,652 7,881 8,118 8,361 8,612
Claims on banks 54,343 51,657 53,723 55,872 58,107 60,431 62,849
Claims on customers 148,514 138,438 144,668 151,901 159,496 167,471 175,845
Provisions for loan losses (5,376) (5,510) (4,960) (5,194) (5,440) (5,698) (5,967)
Positive fair values from 3,131 2,552 2,667 2,800 2,940 3,087 3,242
derivative hedging instruments
Assets held for dealing purposes 117,192 87,628 87,628 87,628 87,628 87,628 87,628
Investments and securities portfolio 84,558 87,842 87,842 87,842 87,842 87,842 87,842
Goodwill 1,040 690 580 470 360 250 140
Other intangible assets 111 112 112 112 112 112 112
Fixed assets 2,505 2,063 2,063 2,063 2,063 2,063 2,063
Tax assets 5,995 6,038 6,038 6,038 6,038 6,038 6,038
Other assets 1,655 2,646 857 1,392 1,820 2,133 2,320
Total assets 422,134 381,585 388,869 398,805 409,085 419,719 430,722
Liabilities
Liabilities to banks 114,984 95,249 98,106 101,050 104,081 107,204 110,420
Liabilities to customers 95,700 100,000 103,000 106,090 109,273 112,551 115,927
Securitised liabilities 92,732 83,992 87,352 90,846 94,480 98,259 102,189
Negative fair values from 5,696 5,932 6,199 6,509 6,834 7,176 7,535
derivative hedging instruments
Liabilities from dealing activities 83,238 67,017 67,017 67,017 67,017 67,017 67,017
Provisions 3,528 3,307 3,307 3,307 3,307 3,307 3,307
Tax liabilities 3,664 4,495 4,495 4,495 4,495 4,495 4,495
Other liabilities 3,285 2,911 2,911 2,911 2,911 2,911 2,911
Subordinated capital 9,237 8,381 8,381 8,381 8,381 8,381 8,381
Minority interests 1,262 1,213 1,300 1,437 1,603 1,810 2,073
Total liabilities 413,326 372,497 382,069 392,042 402,382 413,110 424,255
Subscribed capital 1,378 1,545 1,545 1,545 1,545 1,545 1,545
Capital reserve 6,131 4,475 4,475 4,475 4,475 4,475 4,475
Retained earnings 3,268 3,286 3,286 3,456 3,629 3,814 4,011
Revaluation reserve (769) 1,240 1,240 1,240 1,240 1,240 1,240
Measurement of cash flow hedges (1,248) (1,236) (1,236) (1,236) (1,236) (1,236) (1,236)
Reserve from currency translation (6) (219) (219) (219) (219) (219) (219)
Consolidated profit/loss 54 0 568 576 616 658 698
Treasury stock 0 0 (2,858) (3,074) (3,347) (3,668) (4,047)
Shareholders funds 8,808 9,091 6,801 6,763 6,703 6,609 6,467
Total liabilities and shareholders funds 422,134 381,588 388,869 398,805 409,085 419,719 430,722
Bad debt provisions
Opening provision for loan losses 5,376 5,510 4,960 5,194 5,440 5,698
Provision for year 1,084 1,131 1,185 1,241 1,300 1,361
Amounts utilised and other changes (950) (1,785) (1,068) (1,118) (1,171) (1,226)
Closing provision for loan losses 5,376 5,510 4,856 5,077 5,317 5,569 5,832
Provisions/claims on banks 2.65% 2.90% 2.50% 2.50% 2.50% 2.50% 2.50%
and customers (%)
Annual provision/claims on 0.65% 0.57% 0.57% 0.57% 0.57% 0.57% 0.57%
banks and customers (%)
290