COMMERZBANK AKTIENGESELLSCHAFT

Group Financial Statements
308
252 Commerzbank Annual Report 2011
The provisions for default risks by customer group were as follows as at December 31, 2011:
€m
Specific valuation
allowances and provisions
for lending business
Loan losses 1
in 2011
Net allocation 2 to valuation
allowances and provisions
in lending business
Customers in Germany 3,613 1,652 667
Corporate customers 2,733 889 523
Manufacturing 844 239 109
Construction 48 75 – 6
Trading 245 101 74
Services and others 1,596 474 346
Private Customers 880 763 144
Customers outside Germany 4,033 1,011 832
Corporate and retail customers 4,019 1,011 831
Public sector 14 – 1
Provisions for customer credit risk 7,646 2,663 1,499
Banks in Germany – 37 – – 126
Banks outside Germany 106 60 – 24
Provisions for bank credit risk 69 60 – 150
Total 7,715 2,723 1,349
1 Direct write-downs, utilised valuation allowances and utilised loan loss provisions.
2 Allocations less reversals.
Credit defaults and net allocations to provisions were counterbalanced by income of €1m from write-ups (previous year: €9m) and
€181m (previous year: €184m) from recoveries on claims that had been written down. The table below presents the key provisioning
ratios:
% 2011 2010
Allocation ratio1 0.44 0.71
Default ratio2 0.81 0.82
Provision cover ratio3 2.74 2.85
1
Net provisions (new provisions less reversals of valuation allowances and loan loss provisions, plus the balance of direct write-downs, write-ups and recoveries on claims
previously written down) as a percentage of total lending.
2
Credit defaults (utilised valuation allowances and loan loss provisions, plus the net balance of direct write-downs, write-ups and recoveries on claims previously written down) as
a percentage of total lending.
3
Total provisions (valuation allowances and loan loss provisions) as a percentage of lending volume; lending volume = claims under special credit agreements with borrowers
(Note 48).
(50) Value adjustments for portfolio fair value hedges on the asset side
The adjustment to the fair value of underlying transactions hedged against interest rate risk was €147m (previous year: €113m). A
matching liability from hedging transactions is shown on the other side of the balance sheet under negative fair values attributable to
derivative hedging instruments.