COMMERZBANK AKTIENGESELLSCHAFT

Group Management Report
136
80 Commerzbank Annual Report 2011
Commission income amounted to €3,495m, down 4.2% from the previous year, due
mainly to the decrease in securities transactions with private customers who were still cautious
about buying because of the uncertain market situation. However, integration-related
costs also impacted here. Another effect was that in 2010, this item still contained income
from non-strategic holdings which have since been sold. Higher income from the considerable
increase in foreign trade and the associated product categories plus restructured loans
had a positive effect.
Statement of comprehensive income I €m 2011 2010 Change
Net interest income 6,724 7,054 – 330
Loan loss provisions – 1,390 – 2,499 1,109
Net commission income
Net trading income and
3,495 3,647 – 152
net gain/loss on hedge accounting
Net investment income, income from
1,986 1,958 28
at-equity investments and other net income – 2,316 12 – 2,328
Operating expenses 7,992 8,786 – 794
Operating profit/loss 507 1,386 – 879
Restructuring expenses – 33 –
Pre-tax profit/loss 507 1,353 – 846
Taxes on income – 240 – 136 – 104
Consolidated profit/loss
Consolidated profit/loss attributable to
747 1,489 – 742
Commerzbank shareholders 638 1,430 – 792
Table 1
Net trading income and net income from hedge accounting in 2011 were at a similar level to
last year at €1,986m, but there were opposing trends. In the Portfolio Restructuring Unit
segment, there was a marked drop, as high impairment reversals and realised profits in the
prior year period were offset by a loss in the year under review resulting from negative market
values. In Others and Consolidation, there was a significant €316m rise in earnings due
to the refinement of the valuation models for interest rate hedging models. The Corporates &
Markets segment again posted net trading income of over €1bn in spite of the very difficult
market environment in the second half of the year. This resulted firstly from the strong business
performance during the first two quarters and secondly from the valuation of its own
liabilities at market value in accordance with IFRS.