COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Corporate Responsibility Management Report Risk Report Group Financial Statements Further Information 107 163
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
Global presence extended
Our relationship management team based in Frankfurt follows a global service approach, supported
by a worldwide sales network of around 40 representatives and Financial Institutions
Desks in all key economic areas. We extended our sales network by opening a representative
office in Tiflis, thereby expanding Commerzbank’s network of operational outlets abroad in some
60 locations in 50 countries. The Financial Institutions division offers its customers comprehensive
advice and support through Financial Institutions relationship managers. They are assisted
by a range of qualified product and risk specialists, some of whom are based in other Commerzbank
units.
Outlook
Due to the uncertainty on euro markets, we are looking to open more representative offices
outside the eurozone on a selective basis in order to take advantage of the opportunities of the
dynamic growth of global trade streams. Our aim is to develop product solutions that are tailored
to our customers’ needs and requirements. Against this background, we plan to optimise
the processes in document handling in 2012, expand our product range in Trade Services
and set up a special Trade Sales team. As the capital adequacy regulations become even
stricter, we will make every effort to use our equity capital even more efficiently.
Outlook for the Mittelstandsbank
As the global economy weakens and the European sovereign debt crisis continues, we expect
expansion of the German economy to be much slower in 2012. The Ifo business climate
index currently predicts that German GDP growth will be little over 0%. As the economic
situation is forecast to worsen, we also expect this to impact on our customers. We therefore
anticipate a rise in loan loss provisions in the coming year from their currently very low levels.
The stricter regulatory requirements will compromise banks’ capacity to lend, resulting
in a regulatory-driven decline in capital-intensive business. We are well prepared for this
with our business model and strong customer base. In 2012, we will maintain our stated
commitment to German SMEs and continue the forward-looking dialogue we have begun
with customers, which is based on partnership. We will emphasise this by including customer
satisfaction as a part of our advisors’ and specialists’ variable remuneration. We will
also respond to regulatory changes with more active management of our portfolios. We are
looking to increase our income in 2012 and have already started various initiatives for implementing
our special growth programme. We will also reduce the cost base.
Responsibility for Commerzbank Eurasija, our branches in the Czech Republic and Slovakia
and Commerzbank Zrt. was transferred to Mittelstandsbank from Central-&-Eastern-European
Holding to Mittelstandsbank with effect from January 1, 2012. This will enable our units in
Eastern Europe to benefit even more from the growing potential of German companies in
cross-border business and from Mittelstandsbank’s successful model in international business.
Group Management Report