COMMERZBANK AKTIENGESELLSCHAFT
COMMERZBANK AKTIENGESELLSCHAFT
COMMERZBANK AKTIENGESELLSCHAFT
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To our Shareholders Corporate Responsibility Management Report Risk Report Group Financial Statements Further Information 255 311<br />
258 202 Statement of comprehensive income<br />
260 204 Balance sheet<br />
262 206 Statement of changes in equity<br />
264 208 Cash flow statement<br />
266 210 Notes<br />
409 353 Auditors’ report<br />
In its press release of October 13, 2008, the IASB issued an<br />
amendment to IAS 39 relating to the reclassification of financial<br />
instruments. In accordance with the amendment, securities in<br />
the Public Finance portfolio for which there was no active<br />
market were reclassified from the available-for-sale financial<br />
assets category to the loans and receivables category in the<br />
financial years 2008 and 2009. In respect of the reclassified<br />
securities there was the intention and ability at the<br />
reclassification date to hold the securities for the foreseeable<br />
future or to final maturity. The securities concerned are<br />
primarily issued by public-sector borrowers (including European<br />
and North American local authorities and publicly guaranteed<br />
asset-backed securities) and financial institutions.<br />
The revaluation reserve after deferred taxes for all the<br />
securities reclassified in financial years 2008 and 2009 was<br />
€– 0.8bn as at December 31, 2011 (previous year: €– 1.0bn). This<br />
negative portfolio will be dissolved over the remaining lifetime<br />
of the reclassified securities. If these reclassifications had not<br />
been carried out in 2008 and 2009, there would have been a<br />
revaluation reserve after deferred taxes of €– 4.3bn for these<br />
securities as at December 31, 2011 (previous year: €– 2.8bn); the<br />
change compared with a year ago was therefore €– 1.5bn<br />
(change December 31, 2009 to December 31, 2010: €– 1.4bn).<br />
In addition to the portfolio valuation allowances of €40m<br />
(previous year: €1m) and the impairments on the reclassified<br />
Greek government bonds (€1.9bn), a net €1.5bn (previous year:<br />
€1.8bn) was recognised in the income statement for the<br />
reclassified securities in the current financial year.<br />
On December 31, 2011 the carrying amount of the<br />
reclassified securities was €57.6bn (previous year: €67.1bn), fair<br />
value was €52.6bn (previous year: €64.6bn) and the cumulative<br />
portfolio valuation allowances were €91m (previous year:<br />
€51m). The transactions had average effective interest rates of<br />
between 0.5% and 14.3% (previous year: between 0.8% and<br />
16.2%) and are expected to generate a cash inflow of €70.2bn<br />
(previous year: €84.3bn).<br />
Impact of the European sovereign debt crisis<br />
In the Commerzbank Group, the acquisition cost of Greek<br />
government bonds as of December 31, 2011 before adjusting for<br />
the total impairment requirement of around 74% was €3,018m<br />
(including accrued interest). Of this, €359m related to availablefor-sale<br />
bonds and €2,659m to securities that were reclassified<br />
to the loans and receivables category in 2008 and 2009. The<br />
impairments applicable to them as of December 31, 2011<br />
totalled €2,226m.<br />
On the basis of our measurement methodology this resulted<br />
in a €1,938m write-down in the value of securities in the loans<br />
and receivables category. The carrying amount of these<br />
securities was therefore €721m as of December 31, 2011. The<br />
write-down under IAS 39.67 of the remaining bonds in the<br />
available-for-sale category to this lower fair value (market value<br />
as of December 31, 2011) led to a €288m expense in the current<br />
financial year with a carrying amount of €71m as of<br />
December 31, 2011.<br />
We also executed hedging transactions to protect our<br />
portfolio against interest rate risk and to offset the effects of<br />
fluctuations in inflation. We recognise and measure these<br />
financial instruments in accordance with IAS 39.85 ff. The<br />
remeasurement effects result both from unwinding the financial<br />
instruments used for interest-rate hedging, and from writing<br />
down the financial instruments used to hedge fluctuations in<br />
inflation to the same extent as the bonds; the new carrying<br />
amount totalled €58m. The total impairment effect for these<br />
transactions amounted to €962m in 2011.<br />
Group Financial Statements