COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Corporate Responsibility Management Report Risk Report Group Financial Statements Further Information 101 157
127 71 Business and overall conditions
135 79 Earnings performance, assets and financial position
147 91 Segment performance
101 157 Mittelstandsbank
137 193 Our employees
143 199 Report on events after the reporting period
144 200 Outlook and opportunities report
Mittelstandsbank
The Mittelstandsbank segment is one of Commerzbank’s core segments, comprising three
group divisions Mittelstand Germany, Corporate Banking & International, and Financial Institutions.
The Mittelstand Germany division serves small and mid-sized customers, the public
sector and institutional clients in Germany. The Corporate Banking & International division
concentrates on corporate customer groups with a turnover of more than €500m (provided
they are not Multinational Corporates allocated to the Corporates & Markets segment) and to
smaller concerns with high capital market requirements as well as those with significant
overseas operations. It also contains the competence centre for customers from the Renewable
Energies sector. As a specialist in Commerzbank’s global foreign trade activities, the
Financial Institutions division is responsible for relationships with banks, financial institutions
and central banks in Germany and abroad.
Relying on its customer- and market-oriented business model, Mittelstandsbank performed
well in 2011. Despite additional costs stemming from the successful integration of
Dresdner Bank in the first half of 2011, Mittelstandsbank generated earnings on par with the
previous year’s high level.
Performance
Mittelstandsbank
2011 2010 Change in
€m
%/%-points
Income before provisions 3,176 3,319 – 4.3
Loan loss provisions – 188 – 279 – 32.6
Operating expenses 1,461 1,442 1.3
Operating profit/loss 1,527 1,598 – 4.4
Capital employed 5,378 5,545 – 3.0
Operating return on equity (%) 28.4 28.8 – 0.4
Cost/income ratio in operating business (%) 46.0 43.4 2.6
Table 4
The Mittelstandsbank segment was also the main earnings driver within the core bank in
2011. Against the background of a solid economic environment on the German domestic
market, the Mittelstandsbank segment posted operating profit of €1,527m in 2011 (2010:
€1,598m).
Income before loan loss provisions in the reporting year reached €3,176m which was
4.3% lower than the previous year. While income from direct customer business showed a
rise, the impact of lower valuations proved to be a negative factor compared to 2010. At
€2,174m, net interest income was 4.5% higher than the previous year’s figure of €2,081m.
This was primarily due to the contribution of deposit business as a result of slightly higher
deposit volumes and higher margins. In lending, volumes and margins were both stable, despite
demand for credit being modest overall.
› Note 44 – Segment reporting
Page 242 ff.
Group Management Report