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March 27, 2009

Commerzbank presents annual report for 2008

Commerzbank presented its 2008 annual report today. Martin Blessing, Chairman of the Board of Managing Directors: "2008 was dominated by the effects of the financial market crisis. Nevertheless, we took important steps to further strengthen Commerzbank's position." As a result of drawing on the Financial Market Stabilization Fund (Sonderfonds Finanzmarktstabilisierung, SoFFin) there will be no dividend paid in 2009 and 2010 (see the 2008 annual report, pages 6-11). Remuneration for the Board of Managing Directors for 2008 was EUR 4.3 million, a 65% mark down relative to the figure for the previous year (EUR 12.4 million). This includes EUR 500,000 for the Chairman of the Board of Managing Directors. The other seven members of the Board of Managing Directors received EUR 480,000 each for 2008. About EUR 880,000 are attributed to members of the Board of Managing Directors who left over the course of last year (page 37). As of December 31, 2008 the number of employees stood at 43,196, compared to 36,767 at year-end 2007 (pages 111-116).



Overview of the segments

All business segments enhanced their client focussed approach even further. In the Private Customer segment activities for high net worth customers were consolidated in the new business area Wealth Management at the beginning of 2009. The business area Direct Banking includes the activities of comdirect bank AG, the European Bank for Fund Services (ebase) and our call centre activities (pages 60-67). In Mittelstandsbank (Small and Medium-Sized Businesses) we established the new area International Corporate Banking in 2008. We are planning to increase our market share in the segment of smaller and owner-operated companies even further (pages 70-80). The operating units in the Central and Eastern Europe region were consolidated in 2008 in the CEE segment. We will continue to develop our business in that region structurally, with a tighter focus on strict risk-return orientation in the current market environment (pages 81-91).


In Corporates & Markets the focus will also be on customer-oriented business. Risks are being actively reduced, portfolios trimmed and individual business areas will be either sold or closed. Dresdner Kleinwort to a large extent is already operating with a focus on Germany. The Research Department has had a joint approach to the market with Commerzbank since February 2009. In the financial year 2008 Public Finance and Treasury was part of the Investment Bank. In future, Treasury will be integrated into Group management (pages 92-100). Commercial Real Estate (CRE) was supplemented at the start of 2009 by the business area Shipping, which had previously been part of Mittelstandsbank (pages 101-105).



Outlook for the 2009 financial year

The overriding theme of 2009 will be the integration of Dresdner Bank. Net interest income should continue to rise. Operating expenses will be higher due to the first-time consolidation of Dresdner Bank. Restructuring expenses are expected to be around EUR 2 billion in 2009. If the effects of the global interest rate cuts lead to an economic recovery from 2010 onwards, Germany is to be expected to grow faster than the rest of the Eurozone. This will benefit the new Commerzbank (pages 117-123).


We are planning to raise funds in the capital markets totalling around EUR 20 billion in 2009. At the beginning of January Commerzbank issued a three-year bond with a SoFFin guarantee in the amount of EUR 5 billion. At the end of January an unguaranteed senior benchmark bond with a total of EUR 1.5 billion and a five-year maturity was placed. In March a Eurohypo jumbo Pfandbrief amounting to EUR 1.25 billion was issued. As a result and including private placements, more than 50% of the total refinancing requirement for 2009 has been covered in just the first quarter (pages 119-121).



Key figures of the Commerzbank Group as at December 31, 2008

Profit and loss statement 2008 2007
Operating profit (€ m) - 378 2.513
Operating profit per share (€) - 0.56 3.83
Pre-tax profit (€ m) - 403 2.505
Consolidated surplus 1) (€ m) 3 1.917
Earnings per share (€) 0 2.92
Operating return on equity 2) (%) - 2.6 18.7
Cost / income ratio in operating business (%) 77.0 64.2
Return on equity on the consolidated surplus 1), 2) 0 15.4
     
Consolidated balance sheet 31.12.2008 31.12.2007
Balance-sheet total (€ bn) 625.2 616.5
Risk-weighted assets (€ bn) 221.8 237.4
Equity (€ bn) as shown in balance sheet 19.9 16.1
Own funds (€ bn) as shown in balance sheet 34.9 30.6

1) Attributable to Commerzbank shareholders
2) Excluding cash flow hedges and minority interests

The full 2008 annual report is here available .

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