COMMERZBANK AKTIENGESELLSCHAFT

Group Management Report
128
72 Commerzbank Annual Report 2011
› Corporate Governance Report
Page 43 ff.
› Corporate Responsibility
Page 56 ff.
› Corporate Responsibility
Page 59 ff.
Corporate Management
Corporate management in the Commerzbank Group is based on a value-oriented control
concept. Key criteria of this concept include ensuring that the risks entered into by the business
units are in line with the external and internal guidelines on risk-taking capacity and
that an appropriate return is achieved over the long term on the capital employed. In this
respect, the Bank regularly monitors the allocation of scarce resources to business units and
actively adapts its business structure to changing market circumstances in order to boost the
enterprise value over the long term.
A key corporate management tool is the planning process whereby the Board of Managing
Directors sets targets for the business units and allocates existing resources, such as
capital and risk limits, to the segments in a targeted manner. The Board of Managing Directors
carries out regular checks to ensure that business planning is being followed.
The key figures used for controlling purposes in the corporate management process are
operating profit/loss and pre-tax profit/loss as well as return on equity, the cost/income ratio
and value added. Return on equity is calculated by taking the ratio of operating profit/loss or
pre-tax profit/loss to the average amount of capital employed. This shows the return on the
equity invested in a given business segment. The cost/income ratio is used to assess cost efficiency
and is defined as the relationship of operating expenses to income before loan loss
provisions. Value added is a measure of the enterprise value created by the segments and is
calculated based on the difference between the operating profit/loss and the cost of capital
before tax. The cost of capital represents our shareholders’ expectations for the minimum
return on their capital employed.
Remuneration Report
The Remuneration Report is contained in the Corporate Governance Report in the “Corporate
Responsibility” section. This in turn forms part of the Group Management Report.
Details pursuant to Art. 315 (4) of the German
Commercial Code (HGB) and explanatory report
Details pursuant to Art. 315 (4) of the German Commercial Code and explanatory report can
be found in the “Corporate Responsibility” section. They are part of the Group Management
Report.
Details pursuant to Art. 315 (2) (No. 5)
of the German Commercial Code (HGB)
Details pursuant to Art. 315 (2) (No. 5) of the German Commercial Code (HGB) can be found
in the “Corporate Responsibility” section. They are part of the Group Management Report.