COMMERZBANK AKTIENGESELLSCHAFT

234 Commerzbank Interim Report as of June 30, 2009
The increase in subscribed capital and capital reserves
stemmed firstly from the capital increase for non-cash con-
tributions in the first quarter, from which Allianz received
around 163.5 million new Commerzbank shares as part of
the purchase price for Dresdner Bank. Secondly, this
reflected the capital increase for cash provided by SoFFin
following the EU Commission’s approval of the second
SoFFin package and subsequent endorsement of the capital
increase by the Annual General Meeting. Through the
issuance of around 295 million ordinary shares at €6 per
share, SoFFin now owns a stake in Commerzbank AG of
25 % plus one share. As a result of these two measures, the
number of outstanding shares stood at 1,181.4 million at
June 30. All in all, subscribed capital increased by €1.2bn
and the capital reserve by €1.3bn.
Silent participations rose in the second quarter by almost
€9bn with SoFFin paying a second tranche of €8.2bn and
Allianz providing an additional €750m. Both participations
receive interest at a rate of 9 %. Under the EU’s terms,
Commerzbank will only make earnings-related payments in
2009 and 2010 if it is obliged to do so without releasing any
reserves or special reserves pursuant to section 340g HGB.
Where necessary and legally permitted however, Commerz-
bank will release reserves in financial years 2009 and 2010
to avoid the carrying amount of its equity instruments from
being reduced through loss participation.
The negative effect on equity resulting from the revalua-
tion reserve and from reserves from cash flow hedges and
currency translation came to almost €4bn, down by €617m
compared to the year-end figure. The fall in the revaluation
reserve in the first half was caused primarily by the sale of
equities and investment holdings. Interest-bearing financial
assets continued to have a negative effect of €2.7bn. This
figure was also impacted by the reclassifications made since
the third quarter last year pursuant to the amendment
issued by the IASB on October 13, 2008. On January 31 and
May 31, under IAS 39 classification rules, we reclassified
additional securities in the Public Finance portfolio for
which there is no longer an active market from Available
for Sale (AfS) to Loans and Receivables (LaR). The Bank has
the intention and ability to hold these securities for the foreseeable
future or until maturity. The new carrying amount
of the reclassified securities is their fair value as at the
reclassification dates, which was €3.4bn. The revaluation
reserve for the reclassified securities after deferred taxes,
is –€0.2bn, compared with –€0.4bn as at December 31,
2008. The nominal volume of this sub-portfolio is €3.4bn.
The securities concerned are primarily issued by public sector
borrowers in Europe.
In line with the change in the level of total assets as
described, we were also able to pursue our aim of reducing
risk assets. Risk-weighted assets rose on consolidation
by 33.7 % to €296.6bn at June 30 compared to year-end.
Despite initially rising on consolidation in January, they
were reduced as planned during the course of the first half,
mainly through volume reduction in non core activities.
As at the same time our eligible regulatory core capital rose
by €10.9bn to €33.4bn, primarily due to the measures
described, our core capital ratio went up from 10.1 % to
11.3 %. A rise of some 0.9 percentage points was due to an
adjustment as of June 30 in the rules on inclusion of the
revaluation reserve in regulatory capital in line with other
major EU states such as France and the United Kingdom.
The total capital ratio increased to 15.4 %.
Segment reporting
At the beginning of the year, Group Treasury was moved
from the Corporates & Markets segment to Others and
Consolidation. We moved Shipping from the Mittelstandsbank
segment to Commercial Real Estate and renamed
Private and Business Customers to Private Customers. To
ensure comparability, the figures for the previous year have
been restated. With the implementation of the new Group
structure as announced on May 8, there will be further
changes in segment allocations in the third quarter and a
corresponding restatement of segments.
Details on the composition of the segments and the principles
of our segment reporting are set out on pages 278 to
282 of this report.
Private Customers reported profits and
sustained customer growth
Private Customers posted an interim profit despite the
difficult economic environment. Besides the integration of
Dresdner Bank customers, there was also organic customer
growth in the first six months of 2009. The first-time consolidation
of Dresdner Bank was tangibly reflected in the
individual items of the 2009 income statement. As a result,