COMMERZBANK AKTIENGESELLSCHAFT

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Commerzbank AG
In the Mittelstandsbank segment, loan loss provisions are currently very low, but these
are likely to rise in the coming years in light of the anticipated deterioration in the economic
situation. The stricter regulatory requirements will compromise banks’ capacity to lend, resulting
in a regulatory-driven decline in capital-intensive business. We are well prepared for
this with our business model and strong customer base. In 2012, we will maintain our stated
commitment to German SMEs and continue the forward-looking dialogue we have begun
with customers, which is based on partnership. We are looking to increase our income in
2012 and have already started various initiatives within the scope of implementing our special
“Market Leader” growth programme. We will also reduce the cost base. Responsibility for
Commerzbank Eurasija, our branches in the Czech Republic and Slovakia and Commerzbank
Zrt. was transferred to Mittelstandsbank from Central-&-Eastern-European Holding to Mittelstandsbank
with effect from January 1, 2012. This will enhance how our units in Eastern
Europe tap the growing business potential of German companies in cross-border business
and Mittelstandsbank’s successful international business model.
In the Central & Eastern Europe segment, we expect economic growth in Central and Eastern
Europe to be subdued in 2012 due to the European sovereign debt crisis. Thereafter the
region’s economy should start to pick up, providing opportunities for the Central & Eastern
Europe segment. Given this market environment, Commerzbank plans to expand its position
as a leading German bank in the region. The focus of the Central & Eastern Europe segment
lies on universal banking business and direct banking activities in the region’s key core markets.
We are also intend to continue optimising our portfolio of non-strategic holdings. In
Poland, BRE Bank will continue to gear its business activities towards customer needs and
see dynamic growth. It will concentrate on improving income potential and profitability. Private
customer business will be focussed on wealthy customers and on young customers who
are likely to achieve an above-average income. In corporate customer business, BRE Bank will
be aiming to consolidate or expand its position in all customer segments. A further boost to
income will come from greater cross-selling in transaction-based business. In the Ukraine, we
will continue with our activities to expand into a focused universal bank, increase efficiency
and achieve a value-oriented reduction in the non-performing loans portfolio. A further aim
here is to improve operating profit and, in the medium term, to return to profit.
The next two years will bring fresh challenges for the Corporates & Markets segment. Its
focus over the next few years will therefore be on stabilising earnings, optimising capital requirements
and maintaining rigorous cost management. The segment will also retain a conservative
risk approach in its trading and banking books and apply appropriate loan loss provisions.
In the process, it is important that we also gear our products and services closely to
customer needs. This will help us remain a competitive and attractive business partner for our
customers, while at the same time being well prepared for the new regulatory arrangements.