COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Corporate Responsibility Management Report Risk Report Group Financial Statements Further Information 109 165
127 71 Business and overall conditions
135 79 Earnings performance, assets and financial position
147 91 Segment performance
109 165 Central & Eastern Europe
137 193 Our employees
143 199 Report on events after the reporting period
144 200 Outlook and opportunities report
Central & Eastern Europe
In 2011, the Central & Eastern Europe (CEE) segment comprised the operations of our Polish
subsidiary BRE Bank, Bank Forum in Ukraine, Commerzbank Eurasija in Russia, Commerzbank
Zrt. in Hungary, our branches in the Czech Republic and Slovakia, and minority interests
in seven microfinance banks and Russia’s Promsvyazbank. The activities are grouped
together under a management holding company which acts as a centre of competence and
interface between the Group units. It sets and monitors the Group’s objectives in CEE on the
market and the risk side, realises operational excellence and develops growth initiatives in
the region. The strategic focus in the Central & Eastern Europe segment is on universal
banking and direct banking.
While the positive economic trends continued in Central and Eastern European countries
in the first half of 2011, the region was increasingly affected by the European sovereign debt
crisis in the second half. Although this was reflected in subdued growth, the Central & Eastern
Europe segment reported excellent results in this market environment, to which Poland’s
BRE Bank made a substantial contribution by posting record results. In the Ukraine, lower
loan loss provisions, the continued reduction in the portfolio and continuing measures to
increase efficiency significantly improved Bank Forum’s results. Small corporate customer
units in Russia and Central Europe turned in consistently positive performance in 2011.
Performance
Central & Eastern Europe
2011 2010 Change in
€m
%/%-points
Income before provisions 1,157 979 18.2
Loan loss provisions – 89 – 361 – 75.3
Operating expenses 585 565 3.5
Operating profit/loss 483 53 .
Capital employed 1,723 1,628 5.8
Operating return on equity (%) 28.0 3.3 24.8
Cost/income ratio in operating business (%) 50.6 57.7 – 7.2
Table 5
The Central & Eastern Europe segment recorded a significant increase in operating profit,
which rose to €483m in the reporting period, compared with €53m in 2010.
› Note 44 – Segment reporting
Page 242 ff.
Group Management Report