COMMERZBANK AKTIENGESELLSCHAFT

Group Risk Report
226
170 Commerzbank Annual Report 2011
Loan to value – UK 1
stratified representation
> 100% 100%
80% – 100%
60% – 80%
40% – 60%
20% 20% – 40%
< 20%
Loan to value – USA 1
stratified representation
> 100%
80% – 100%
60% – – 80% 80%
40% – 60%
20% – 40%
< 20%
2% (3%)
3% (4%)
10% (10%)
2% (3%)
4% (7%)
13% (17%)
The decrease in exposure in 2011 is in particular the result of loan repayments, exchange
rate fluctuations and market-related transfers to the default portfolio.
The impact of the deepening European sovereign debt crisis, together with the looming
recession in the eurozone and the tensions in the financial markets, has produced a highly
constricted atmosphere which is generating considerable uncertainty and dampening
momentum in the European CRE markets. The positive trend visible to date in the German
market will weaken, and the downturn will continue in the southern European markets,
which have been particularly affected by the sovereign debt crisis. While we assume a
stabilisation in the UK, we already see first signs of recovery in the US from a risk point of
view. In 2011 there was considerable release potential regarding loan loss provisioning.
Loans secured by mortgages continue to have reasonable loan to value ratios.
22% (23%)
31% (29%)
32% (31%)
24% (24%)
28% (25%)
29% (24%)
EaD UK total €6bn
EaD USA total €3bn
Loan to value – Spain 1
stratified representation
> 100%
80% – 100%
60% – 80%
40% – 60%
20% – 40%
< 20%
Loan to value – CRE total 1
stratified representation
>100%
80 % – 100 % %
60 % – 80 %
40 % – 60 %
20 % – 40 %
< 20 %
1% (1%)
1% (4%)
14% (14%)
24% (24%)
29% (28%)
31% (29%)
2% (2%)
3% (3%)
13% (13%)
24% (24%)
28% (28%)
30% (30%)
1 Loan to value ratios based on market values; exclusive margin lines and corporate loans; additional collateral not taken into account.
All figures relate to business secured by mortgages.
Values in parentheses: December 2010.
Figure 5
EaD Spain total €4bn
EaD CRE total €57bn
Eurohypo Retail
Eurohypo AG is now only responsible for the existing loan book (legacy portfolio). There are
no strategic plans for new business activity in this area. We continue to focus directly on
portfolio reduction while minimising the impact on earnings. Exposure was again cut by just
under €3bn in 2011 and amounted to €14bn as at December 31, 2011; the bulk of this
related to owner-occupied houses (€8bn) and apartments (€3bn). Given the lower loan to
value ratios due to the residual terms of maturity, we continue to view the risk in this
portfolio as relatively low.