COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Interim Management Report Interim Financial Statements
229 Letter from the Chairman of the Board of Managing Directors
230 Our share
In the second quarter we significantly reduced the operating
loss when compared to the previous quarter. We also fully
implemented our refinancing plan, having already secured
more than half the funds we required for the whole year in
the first quarter. The Mittelstandsbank and Private Customers
segments reported a positive contribution to earnings also
in the second quarter, but the Central & Eastern Europe
division was still affected by high risk provisions due to the
severe recession in the region. Increased risk provisions
also meant that the Commercial Real Estate segment suffered
an operating loss. By contrast, Corporates & Markets
showed a marked improvement compared to the previous
quarter, as write-downs on structured credit products could
be reduced significantly, and a number of customer-based
business areas fared much better than before. The Group’s
second quarter results were nevertheless unsatisfactory.
The EU Commission approved the second SoFFin package
at the beginning of May with the expected conditions.
After approval at the Annual General Meeting in the middle
of May, the capital increase was entered in the commercial
register and the Bank received the SoFFin and Allianz silent
participations. These capital increases and the reduction of
our risk-weighted assets – since the beginning of the year –
to just under €297bn enabled us to increase our core capital
ratio to a comfortable 11.3 % by the end of the second
quarter. The risk reduction is also reflected in the lower
balance sheet total, which we have reduced markedly since
taking over Dresdner Bank. At the same time we continue to
fully support the German Mittelstand with credit facilities.
As a result we have kept our loans to German corporates
nearly constant, while demand for capital goods decreased
significantly. In addition we have put credit lines of more
than €45bn at the disposal of these companies, credit lines
which have not yet been drawn down.
Contents
Our progress with the integration of Dresdner Bank is
continuing as planned. Following agreement with employee
representatives on the integration of the Group headquarters
in Frankfurt in the first quarter and the merger of Dresdner
Bank into Commerzbank on 11 May, we also achieved consensus
with employee representatives on the social plan
and the reconciliation of interests for the organisation of
branches.
Dear shareholders, I presented our new corporate structure
and the aims of our strategic programme “Roadmap
2012” – particularly the return to full profitability in 2012
and the ongoing expansion of our customer-driven business
model – in the last interim report. We are still firmly committed
to this and have already successfully introduced
the first steps. As a result, we still expect to achieve our
medium-term goal of a 12 % post-tax return on equity in
2012.
229 Letter from the Chairman of the Board of Managing Directors l 230 Our share l 231 Business and economy
232 Earnings performance, assets and financial position | 237 Forecast | 240 Report on post-balance sheet date
events l 241 Risk Report | 266 Statement of compliance with IFRS l 269 Overall results | 272 Consolidated balance
sheet l 273 Statement of changes in equity l 274 Cash flow statement l 275 Notes to the income statement
l 284 Notes to the balance sheet l 290 Other notes l 295 Boards of Commerzbank Aktiengesellschaft
296 Report of the audit review l 297 Major Group companies and major holdings
229