COMMERZBANK AKTIENGESELLSCHAFT

Report on events after the reporting period
Further optimisation of the capital structure
As part of the Bank’s capital management, Commerzbank used the market conditions in mid-
February to enter into an agreement with Goldman Sachs on February 23, 2012, under which
Goldman Sachs may make contributions in kind to Commerzbank of selected hybrid capital
instruments and subordinated loans in exchange for shares to be issued by Commerzbank
from its authorised capital. Goldman Sachs will acquire these securities from institutional investors
on the market based on an exchange offer at prices below par. The volume of the new
shares is restricted to no more than 511 million (10% minus one share), and Commerzbank
shareholders’ subscription rights are excluded. This transaction is another measure to
strengthen the capital base efficiently in light of future regulation.
Measures to cover the EBA’s requirements
In mid-January 2012, Commerzbank presented a comprehensive package of measures designed
to meet from its own resources the European Banking Authority’s (EBA) requirement
that Commerzbank strengthen its Core Tier I capital by €5.3bn by June 30, 2012.
Commerzbank had already introduced comprehensive measures in November 2011 to
meet the Core Tier I ratio specified by the EBA. As at December 31, 2011, the Bank had reduced
its capital requirement according to the EBA to around €1.8bn. This amount stems
from retained earnings for the fourth quarter of 2011, which contained a one-off IFRS contribution
from the buyback of hybrid equity instruments, and the management of riskweighted
assets. In addition, regulatory capital deduction items were significantly cut in the
fourth quarter of 2011 through efficient management of the capital structure.
The write-downs applied to Greek government bonds in the fourth quarter of 2011 could
therefore be offset against the capital buffer specified by the EBA.
Together with a successful conclusion of the measure announced in February for optimising
the capital structure, this capital requirement can be reduced by a further €1.0bn approximately
to some €0.8bn, if the exchange offer is accepted in full. Consequently, Commerzbank
would have herewith covered a significant part of the additional capital
requirement calculated by the EBA.
There have been no other events of material significance.
Financial Statements and Management Report 2011 39