COMMERZBANK AKTIENGESELLSCHAFT

66
Commerzbank AG
Default portfolio and coverage ratios by segment
€m – excluding/including GLLP
Group 1
86% / 91%
Private Customers
80% / 92%
Mittelstandsbank
76% / 86%
Central & Eastern Europe
102% / 107%
Corporates & Markets
39% / 43%
Asset Based Finance
96% / 99%
Portfolio Restructuring Unit
77% / 78%
Default volume
1,444
1,326
493/669/164
3,362
7,657
2,935
2,512
1,638/590/285
2,019
2,150
1,049/1,016/85
2,116
910
772/60/78
652
506
333/170/3
1 Including Others and Consolidation.
6,773
10,536
10,468
332
9,278 948
Loan loss provisions Collaterals GLLP
19,703
17,884
The default portfolio decreased in all segments during 2011. The volume in the Mittelstandsbank
was approximately a quarter lower and, with over €900m, accounted for the largest part
of the decline. In the Private Customers segment the reduction was also significant at over
20% or more than €400m. Central & Eastern Europe and Corporates & Markets each saw a
drop in volume of over 10%. We currently expect a further decline in the default volume in
2012 given the expectation of only a moderate deterioration in economic conditions.
The default portfolio is backed by collateral of around €9.3bn. In the Private Customers
segment, the collateral consists predominantly of mortgages on owner- and third partyoccupied
properties. In the Mittelstandsbank, collateral is spread over various types of security.
Mortgages on commercial properties and default guarantees account for the largest
amounts. Large parts of the portfolio are secured by guarantees and assignments of collateral.
The portfolio in the Central & Eastern Europe segment is mainly secured by mortgages, in
both the retail and commercial sectors. In addition, a major part of the collateral in the corporate
customer business consists of letters of credit, guarantees and pledges. The collateral in
the Corporates & Markets portfolio principally comprises assignments of collateral as well as
pledges of account balances and securities portfolios. In Asset Based Finance, collateral
mainly relates to commercial mortgages (including ship mortgages) and also to mortgages of
owner- and third party-occupied properties. The collateral for the PRU portfolio consists
almost exclusively of assignments.
In order to avoid an increase in the default portfolio, overdrafts are closely monitored at
Commerzbank. In addition to the 90 days-past-due trigger event, an IT-based management