COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Corporate Responsibility Management Report Risk Report Group Financial Statements Further Information 137
81
127 71 Business and overall conditions
135 79 Earnings performance, assets and financial position
147 91 Segment performance
137 193 Our employees
143 199 Report on events after the reporting period
144 200 Outlook and opportunities report
Net income from financial investments was greatly affected by the European sovereign
debt crisis, posting a loss of €–3,611m, compared with €108m in 2010. Our total write-down
on Greek government bonds amounted to €2,226m, which was reflected in the ABF segment.
This includes our holdings in the IAS 39 loans and receivables category, which we have written
down by 73%, and our holdings designated as available-for-sale, which have been written
down to current fair value. In addition, losses were incurred on disposals during the period
under review due to the planned reduction of parts of the public finance portfolio.
Current net income from entities accounted for using the equity method was €42m in the
period under review, compared with €35m in 2010. Other income amounted to €1,253m,
compared with a loss of €–131m in the prior year period. The rise was related to the measures
carried out in January and December 2011 for optimising the capital structure. We generated
income of some €1.1bn after buying back hybrid equity instruments that were traded
significantly below their nominal value. While “Other expenses” were substantially influenced
by allocations for provisions, reversals of various provision categories were booked to
“Other income”.
Operating costs – including personnel costs and other operating expenses – fell by 9.0%
to €7,992m in 2011, mainly as a result of synergies realised from the integration of Dresdner
Bank. Other operating expenses, which included planned write-downs, were down by 12.7% to
€3,814m, driven mainly by expected IT synergies. Advisory costs and write-downs also fell,
and personnel costs were 5.4% lower at €4,178m. This was due to regular salary payments
falling because of the decrease in the number of employees and lower performance-related
elements of remuneration; however, expenditure on occupational pensions increased.
As a result of these developments, the Commerzbank Group posted an operating profit of
€507m for 2011, compared with €1,386m in 2010.
Tax income for the year amounted to €240m, after €136m for the equivalent period of
2010. Tax income stemmed mainly from the retrospective recognition of deferred income tax
claims on tax loss carry-forwards abroad.
Consolidated profit after tax amounted to €747m. Of this, €109m was attributable to
non-controlling interests and €638m to Commerzbank shareholders. As Commerzbank
Aktiengesellschaft has reported a loss under the German Commercial Code (HGB), we
cannot service SoFFin’s silent participation and other capital instruments for 2011 and
are not allowed to pay a dividend.
Group Management Report