COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Interim Management Report Interim Financial Statements
231 Business and economy
232 Earnings performance, assets and financial position
237 Forecast
240 Report on post-balance sheet date events
241 Risk Report
5. Corporates & Markets
The Corporates & Markets segment of Commerzbank comprises
five business segments. Client Relationship Management
serves high-volume, multinational investment banking
customers. Corporate Finance provides services mainly in
the field of leveraged finance transactions, syndications and
conduits. Equity Markets and Commodities combines business
with equities, commodities and their derivatives. Fixed
Income and Currencies comprises trading activities with
bonds as well as interest, currency and credit derivatives.
The Public Finance business segment is focussed on
public sector financing, funded mainly by Pfandbrief issues.
From July 1, this sector will be combined with real estate
and ship financing to form a new segment “Asset Based
Finance”.
At the same time portfolios identified for reduction are
transferred to the Portfolio Restructuring Unit for workout
purposes.
Exposure at Default
in € bn
Risk density
in bp
267
11
15
Corporates & Markets 21 bp
19
101 Germany
101 Europe (excl. Germany)
43 North America
4 Central and Eastern Europe
2 Asia (incl. Middle East)
17 Other
46
57
56
Rating breakdown
1.0 – 1.8
2.0 – 2.8
3.0 – 3.8
4.0 – 4.8
5.0 – 5.8
2 %
2 %
6 %
20 %
70 %
As part of the de-risking strategy for the Corporates & Markets
segment we succeeded in reducing the EaD by almost
€30bn to €267bn in the second quarter with only a marginal
deterioration in risk density. The focus here was on lowering
the volume of trading activity. Against the backdrop of
ongoing recession and only slightly improved capital markets,
we expect the quality of portfolios to decline further.
We are continuing to focus on reducing portfolio volume
while protecting earnings, with the aim of minimizing
negative changes in the revaluation reserve. In the second
quarter EaD declined from €144bn to €137bn. Overall we
are aiming for a reduction to €100bn.
Exposure at Default
in € bn
Risk density
in bp
0.3
1
2
137
Public Finance 5 bp
6
65 Germany
55 Europe (excl. Germany)
15 North America
2 Central and Eastern Europe
1 Asia (incl. Middle East)
3 Other
11
15
245