COMMERZBANK AKTIENGESELLSCHAFT

60
Commerzbank AG
We will maintain our risk strategy for the Financial Institution sub-portfolio in 2012. While
generally pursuing our reduction strategy across the whole portfolio we would still like to
continue supporting trade finance activities of our corporate customers at Mittelstandsbank
and to expand the activities with clients showing an appropriate rating level. The development
of risk in the portfolio will also be influenced by the progress of the European and
sovereign debt crisis.
FI portfolio
by region
Exposure
at default
€bn
31.12.2011 31.12.2010
Expected
loss
€m
Risk
density
bp
Exposure
at default
€bn
Expected
loss
€m
Risk
density
bp
Germany 17 10 6 29 4 2
Western Europe 28 81 29 36 25 7
Central and Eastern Europe 8 52 62 7 31 42
North America 3 1 6 8 1 1
Other 16 41 26 15 34 23
Total 72 185 26 95 96 10
Non-Bank Financial Institutions portfolio The NBFI portfolio continues to operate within
the risk strategy framework, where the focus during the whole period under review was on
attractive new business with clients of good credit standing and on continued portfolio optimisation.
The EaD of the sub-portfolio (including ABS and LAF transactions relating to NBFIs
as well as NBFI assets in the PRU) fell slightly from €38bn to €32bn. Despite predominantly
positive results in our clients’ operating businesses, we regard the uncertainty arising from
the intensifying debt crisis in Europe as a significant adverse factor for the sector.
NBFI portfolio
by region
Exposure
at default
€bn
31.12.2011 31.12.2010
Expected
loss
€m
Risk
density
bp
Exposure
at default
€bn
Expected
loss
€m
Risk
density
bp
Germany 10 22 22 8 18 23
Western Europe 13 22 18 18 39 21
Central and Eastern Europe 1 6 43 1 2 28
North America 5 42 92 5 24 52
Other 3 3 11 7 10 15
Total 32 95 30 38 93 24
Country classification The regional breakdown of the exposure corresponds to the Bank’s
strategic direction and reflects the main areas of its global business activities. Around half of
the Bank’s exposure relates to Germany, another third to other countries in Europe and 8%
to North America. The rest is broadly diversified and is split between a large number of
countries where we serve German exporters in particular or where Commerzbank has a local
presence.