COMMERZBANK AKTIENGESELLSCHAFT

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Commerzbank AG
Mittelstandsbank This segment comprises all the Group’s activities with mid-size corpo-
rate customers (where they are not assigned to Central & Eastern Europe or Corporates &
Markets), the public sector and institutional customers. The segment is also responsible
for the Group’s relationships with domestic and foreign banks, financial institutions and
central banks.
2011 was dominated by the euro and sovereign debt crisis and its initial effects on the
real economy. Added to this there were events such as the natural disaster in Japan. The
initial effects of the crisis on Germany’s core industries became noticeable during 2011. At
the moment, only a slight slowdown has been detected in the major sectors such as
mechanical engineering and the automotive industry (the level of incoming orders is still
good), although the order backlog will gradually shrink.
In general, the current economic situation is reflected in the Corporates Domestic sub-
portfolio in the form of a sideways movement within the portfolio. The positive rating
migration for individual customers which was ongoing until mid-year has now come to a
standstill. Risk density in this area was 28 basis points at December 31, 2011, which is low
for the mid-sized company financing area.
EaD in Corporates International changed to €14bn and EL to €40m. Risk density
remained at 28 basis points as at December 31, 2011. Overall EaD in the Mittelstandsbank
increased by €4bn to €115bn at year-end 2011.
For details of developments in the Financial Institutions portfolio see page 59 f.
Central & Eastern Europe This segment includes the activities of the Group’s operating
units and investments in Central and Eastern Europe and has a total exposure of €26bn.
The economic situation of the Central and Eastern European economies is characterised
by continued uncertainty as a result of the sovereign debt crisis. However, thanks to rigorous
risk management, risk density in this segment declined from 84 to 73 basis points in 2011.
In 2011 Poland continued to achieve noticeable economic growth, although this slowed
down in the second half. The BRE Group forms the largest part of the portfolio within the
CEE segment with an exposure of around €23bn. Intensive efforts to further optimise operational
management of risk and the positive economic environment of 2011 contributed to
further improving the segment’s good risk quality.
The risk management measures adopted by Bank Forum led to a significant improvement
in the risk profile in 2011. In 2011, our focus in this challenging market remained on limiting
risk and restructuring the Bank.
Commerzbank Eurasija, our branches in the Czech Republic and Slovakia as well as
Commerzbank Zrt. were transferred to the responsibility of the Mittelstandsbank segment as
at January 1, 2012. The portfolio quality in these units improved further due to a rigorous
focus on strict risk management, therefore risk density could be reduced by 9 to 71 basis
points in 2011.