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
positions, provisions for possible loan losses rose in the
second quarter, as there will have to be a sustained recovery
a) Loans and Receivables (LaR) credit risk provisions
Group net credit risk provisions amounted to €993m in the
second quarter. For the first time, net interest income includes
the IFRS net present value effect (unwinding). This
results in an increase in net risk provisions for the Group,
The higher risk provisions in the Private Customers segment
are mainly the result of the changed reporting of
unwinding. In addition, the impact of the negative environment
is beginning to feed through into the retail portfolio
as expected. The default rate in the consumer loans portfolio
has already risen, but as this is relatively low-volume
business, there was no significant impact on the level of net
loan loss provisions. The trend for consumer loans is likely
to deteriorate further in the second half of the year, while
the default rate in the corporate customers portfolio can
also be expected to rise.
The rise in risk provisions in the Mittelstandsbank segment
in the second quarter is a consequence of the recession,
which as expected is leading to a widespread increase
in loan restructuring cases and defaults. Here, the effects
anticipated for the second half of 2009 have already materialized
to some extent in the second quarter.
The persistently difficult market conditions in the region
led to a much worse risk result for the Central and Eastern
Europe segment in the second quarter of 2009 than in the
same period the previous year. The effects of the economic
in the financial markets before there is any positive
medium-term effect on the real economy.
in € bn 2008 Q1 2009 Q2 2009 H1 2009
total total
LaR credit risk provision 3.6 0.84 0.99 1.84
Impairments AfS / Defaults trading book 1 4.3 0.70 0.72 1.42
CDA charges 1.7 0.47 –0.58 –0.11
Charges against earnings, total 9.6 2.02 1.13 3.15
1 2009 only from ABS portfolios
accompanied at the same time by a €64m rise in interest
received, so that the effect on the income statement is neutral.
The distribution of the risk provisions among segments is
as follows:
in € m Q1 Q2 Q3 Q4 2008 Q1 Q2 H1 2009
2008 2008 2008 2008 total 2009 2009 total
Private Customers 45 55 57 55 212 65 96 161
Mittelstandsbank 10 34 88 424 555 90 219 309
Central and Eastern Europe 17 25 71 76 189 173 202 375
Corporates & Markets 65 63 547 1,241 1,916 327 151 478
Commercial Real Estate 62 309 103 192 666 189 318 507
Other and Consolidation –7 2 31 –12 14 0 7 7
Group 191 488 898 1,976 3,553 844 993 1,837
crisis and the currency losses made by our clients with
foreign currency loans are increasingly leading to loan
defaults among both private and corporate customers. At
present there is no trend reversal in sight, so the risk result
in 2009 as a whole will be significantly worse than in 2008.
In the Corporates & Markets segment, risk provisions
continued to fall in the second quarter. Successful loan
restructurings led to a sharp reduction in provisions compared
with previous quarters, and although bulk risks may
cause further fluctuations in the segment’s risk provisions,
they will not reach the very high levels caused by the financial
crisis in 2008.
The increase in risk provisions in the CRE segment is due
in part to the change compared with the previous quarter in
the way unwinding is reported. In addition, the continuing
difficulties in foreign real estate markets meant that the segment
once again faced bulk risks (particularly in the US) in
the second quarter. The segment result also includes for the
first time significant risk provisions from the consolidated
shipping portfolios. Risk provisions in 2009 will be well
above the 2008 level.
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