COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Corporate Responsibility Management Report Risk Report Group Financial Statements Further Information 113 169
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
Bank Forum
Growth in GDP in the Ukraine improved from 4.2% in 2010 to 5% in 2011. The positive
market growth stemmed in particular from a dynamic first six months, while economic activity
weakened in the second half of the year due to the impact of the European sovereign
debt crisis.
In a volatile market environment, Bank Forum posted a much lower loss than in 2010. Contributory
factors were sharply reduced loan loss provisions plus staff-related, structural and
operating measures for boosting efficiency. The number of customers rose by 6% during the
year to around 537,000. Bank Forum’s new online banking offering attracted around 32,500
customers in the course of the year. This was mainly due to the image campaign that used the
slogan “Business the German way”, which won several international awards in 2011.
Progress made in remodelling as a focused universal bank
In 2011, the emphasis was still on Bank Forum’s strategic remodelling as a focused universal
bank. In the first half of the year, competencies in management were also realigned, with the
team being strengthened by new appointments. With a new sales approach, key strategic
guidelines were laid down and the branch presence in the Ukraine was further geared towards
profitable customer segments in major cities. In this regard, further measures were
implemented to boost efficiency and reduce costs. The number of sales units fell from 194 to
148. At year-end, the number of full-time employees stood at 2,275, 13.1% fewer than in the
previous year.
In 2011, further adjustments were made to reflect Commerzbank standards, and compliance
processes and international risk management standards (MARisk) were also further developed
and implemented. The internal restructuring unit reported further success in the
year under review as it continued to scale down the portfolio of non-performing loans on a
value-oriented basis.
Outlook
We expect economic growth to be subdued in the Ukraine in 2012. Key drivers will be comparatively
low export prices for steel and higher costs for Russian gas imports. Furthermore,
there is a risk of a massive depreciation in the local currency (Hrywna or UAH), which the
Ukrainian National Bank has thus far managed to support through fiscal measures despite
inflationary pressures. In a still challenging market environment, Bank Forum will continue
to implement the scheduled reduction in the portfolio of non-performing loans. At the same
time, the remodelling as a focused universal bank will continue, and the range of services
offered in private and corporate customer business will be expanded. Bank Forum is set to
keep on improving its earnings through ongoing measures to boost efficiency and costsavings
in its operating business.
Group Management Report