COMMERZBANK AKTIENGESELLSCHAFT

The Asset Based Finance segment was very badly affected by the European sovereign
debt crisis in 2011. This had a particularly severe impact on earnings, and was also reflected
in the segment’s business performance. We will press ahead with the strategic restructuring
of the segment’s divisions in an extremely challenging market environment. Key aims will be
a further reduction in assets, which goes hand in hand with lower funding requirements, and
a further downsizing of risk positions. We will also place particular emphasis on rigorous
management of capital employed and pressing ahead with cost reductions.
In 2011, the strategic management aim of the Portfolio Restructuring Unit segment continued
to be the downsizing of the portfolio based on optimising value; as this activity progressed
during the year, capital optimisation became an ever more important factor. The future performance
of the markets will still be greatly dependent on macroeconomic factors. Additionally,
market liquidity will be determined by international monetary policy, the development of the
European debt crisis and the regulatory and legal framework. We expect the markets to remain
highly volatile in this difficult environment. The segment will continue to actively manage
the remaining exposures in 2012, as well as reduce the balance sheet. Net interest income
in 2012 will therefore fall, but the operating cost base will also be lower.
Based on our current business plan and unless the economic fundamentals deteriorate
further, notably the sovereign debt crisis, Commerzbank expects to be able to cover its capital
requirements as at June 30, 2012, these having already been reduced to €1.8bn as at December
31, 2011. To achieve this, we have defined measures – including a buffer for imponderables
– of around €2.9bn. These do not include the measures announced in mid-February
for optimising the capital structure.
The Bank intends to use the current package of measures to further significantly reduce
its risk-weighted assets by June 30, 2012, for example, by continuing to reduce peripheral
activities. This will help reduce our Core Tier I capital requirements. Our current plans also
include a sharp decrease in regulatory capital deductions for securitisation positions in the
first half of 2012 through efficient capital management, which should boost Core Tier I capital
even further. The Bank is also planning to use Commerzbank Aktiengesellschaft shares to
pay the individual variable compensation entitlements for the 2011 financial year of a large
proportion of its non-pay-scale employees. In addition, profits from the first and second
quarters of 2012 are to be used to strengthen equity capital.
After completing all measures and based on our current business plans, Commerzbank is
set to achieve a Core Tier I ratio of over 11% as at June 30, 2012.
In addition to the measures already agreed and planned for the period up to the end of
June 2012, Commerzbank still has other options – if the situation deteriorates – which are
not yet included in its plans, for additionally strengthening its Core Tier I capital, if necessary,
and for reducing risk assets.
Financial Statements and Management Report 2011 45