COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Corporate Responsibility Management Report Risk Report Group Financial Statements Further Information 223
167
157 213 Key developments in 2011
159 215 Risk-oriented overall bank management
163 219 Default risk
178 234 Intensive care
182 238 Market risk
187 243 Liquidity risk
190 246 Operational risk
192 248 Other risks
195 251 Outlook
In 2009, Commerzbank set up a comprehensive de-risking program for the entire Group.
On the basis of a clear allocation of sub-portfolios to the core bank, reduction and
optimisation areas, targets were formulated for the individual areas and implemented as part
of Roadmap 2012.
The “reduction” area comprises the Public Finance portfolio in addition to the internal
portfolio restructuring unit, PRU. Exposure in the Public Finance sector has been reduced by
€40bn, or 31%, to €89bn since the end of 2009, and a portfolio reduction in the amount of
€20bn was possible in 2010 and 2011 respectively. We are still targeting an overall reduction in
exposure in this area, where we aim to reduce risk exposure to below €70bn by the end of 2014.
Since the end of 2009, exposure in the PRU has declined by more than 60% to €12bn. It
is a remarkable achievement that all positions apart from the Structured Credit portfolio were
entirely wound down in the second half of 2011. During the fourth quarter of 2011 the
existing strategy of PRU was aligned with the new criterion capital optimisation.
The Real Estate and Shipping portfolios were combined under the label “optimisation”. In
Real Estate the focus was on the Bank’s core markets. Steps were taken to reduce subportfolios
outside these core markets. Compared with the end of 2009, the exposure in this
area has fallen by €25bn to €71bn.
In Ship Finance, activities were directed mainly at lowering risk in the existing portfolio.
The exposure, which was mainly denominated in US dollar, was reduced in this area by
€4bn to €18bn despite a significantly stronger US dollar against the euro.
The exposure reduction in the core bank is mainly due to the sale of subsidiaries in the
Private Customers segment as well as risk reduction in the Corporates & Markets segment. In
contrast the exposure of Mittelstandsbank was increased by €5bn since the end of 2009.
EaD | €bn 31.12.2011 31.12.2010 31.12.2009
Core bank 299 324 336
Optimisation 93 111 124
Real Estate 71 87 96
Shipping 21 25 28
thereof Ship Finance 18 21 22
Downsize 101 127 161
Public Finance 89 109 129
PRU 12 18 32
Group 492 562 621
Table 15
Private Customers
The Private Customers segment covers the activities of the Private Customers division, which
includes branch business in Germany for private and business customers as well as the
Wealth Management, and the Direct Banking division.
We meet the financing needs of our customers with a broad and modern product range.
The focus of the portfolio is on classical owner-occupied home financing and the financing of
real estate capital investments (residential mortgage loans and investment properties with an
EaD of €42bn). Another major activity is to ensure the supply of credit services for our business
customers (individual loans €12bn). In addition, we meet our customers’ day-to-day lending
requirements with consumer loans (consumer and instalment loans/credit cards €9bn).
Group Risk Report