COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Corporate Responsibility Management Report Risk Report Group Financial Statements Further Information 111 167
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
BRE Bank Group
BRE Bank celebrated its 25th anniversary in 2011. Beginning as a niche bank in export business,
today it is one of the most profitable banks in Poland and its third largest banking institution.
It currently looks after around 3.9 million customers. Business activities include private
and corporate customer business and investment banking.
The Polish economy grew by well over 4% in 2011 which was more dynamic than in
2010. Comparatively robust private domestic demand in Poland was another contributory
factor to this in addition to export business. In this market environment, BRE Bank achieved
its best ever results since its inception. The BRE Bank Group’s contribution to the segment’s
operating profit totalled a record €329m in 2011, a 73% rise compared to 2010. Key drivers
were excellent growth and much higher income in private customer business. Loan loss provisions
showed a positive trend, falling 62% year-on-year to €60m. Current costs also rose
only moderately thanks to continuous cost management. The cost/income ratio improved
accordingly to almost 51% in 2011 compared with some 52% in 2010. The strong capital
base was reflected in a solid Equity ratio of 15% in 2011 compared with 15.9% in 2010.
More customers and a stronger range of services
Key drivers for BRE Bank’s positive growth in 2011 were the increase in customer numbers
and greater cross-selling. The number of private customers rose by almost 240,000 to some
3.9 million, due particularly to the the dynamic growth in mBank’s direct banking in Poland,
the Czech Republic and Slovakia.
BRE Bank kept on improving its offerings in private customer business throughout 2011,
expanding the range of services with optimised and new credit, deposit and investment products
as well as new sales processes in mBank and Multibank. The range includes highly innovative
offerings, such as express online transfers and over-the-phone loans processed in only
15 minutes with positive prescoring. Furthermore, mBank’s mobile banking was upgraded to
make it available via iPhones, iPads and android systems. BRE Bank has been a marketleading
provider of electronic payment products since 2011. During the year, it issued more
than 100,000 cash cards, enabling customers to benefit from secure and cashless payment
instruments that can be loaded with flexible cash amounts.
In BRE Bank’s corporate customer business, the number of business customers reached a
record level at more than 14,000. Five new corporate customer branches were opened during
the year. The network currently comprises 20 branch offices and 29 corporate customer
branches. The “Branch of the future” pilot project was launched in Koszalin, offering a combined
range of services in private customer and corporate customer business (BRE Bank, Multi-
Bank). It should deliver further synergies, both operationally and from a cost perspective.
Group Management Report