COMMERZBANK AKTIENGESELLSCHAFT

Group Management Report
148
92 Commerzbank Annual Report 2011
› Note 44 – Segment reporting
Page 242 ff.
In the Private Customers segment, the project for the technical integration of Dresdner Bank
was completed in 2011. This primarily involved the migration of customer and product data.
In spite of the associated adjustment costs for our relationship managers in the branches, we
succeeded in maintaining income almost unchanged compared with the same period a year
ago. Operating profit was €375m compared with €47m in 2010.
Income before loan loss provisions stood at €3,820m, which was unchanged on 2010. Net
interest income rose by 2.3% compared with the same period last year to €2,027m, primarily
driven by higher margins in the deposit business. Net commission income fell by 9.6% to
€1,754m, mainly as a result of a decline in revenue from the commission-based securities
business. This reflected a cautious attitude on the part of customers as a result of the uncertainty
on the financial markets. Other income came to €22m in 2011, which represented
an increase of €142m compared with the same period of 2010 when provision costs were
incurred for legal risk in particular.
Loan loss provisions also fell by 75% to €57m, mainly as a result of stable economic
trends in Germany.
Operating expenses fell by 4.6% to €3,388m. Personnel costs were almost unchanged at
€1,355m; there was a significant 14.3% fall in other operating costs, which stood at €864m.
Overall the Private Customers segment posted a pre-tax profit of €375m compared with
€47m in 2010.
Operating return on equity based on capital employed of €3.4bn climbed significantly to
11.1% (prior year period: 1.3%). At 88.7%, the cost/income ratio was slightly below the figure
for the prior year (92.4%).
Main developments in 2011
Technical integration completed, branch merger programme started
The successful conclusion of customer and product data migration in April 2011 marked an
important milestone in Private Customer business for the integration of Dresdner Bank. This is
because, from a technical perspective, there is now just “one bank”. Prior to customer and
product data migration, we kept our customers fully up to date with forthcoming changes,
trained our staff in 2010 and 2011 in around 168,000 training days on system standardisation
and also took further organisational measures to ensure that the migration ran smoothly.