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June 06, 2012

Commerzbank sees double-digit growth in corporate customer business in China

● Revenue exceeds expectations in 2011

● Rapid rise in new renminbi accounts

● Chinese investor interest in the Eurozone and Germany driving business

Commerzbank's corporate business in China has exceeded its target for 2011. Revenue grew by more than 30 per cent, significantly exceeding expectations. In terms of the number of new customers the Bank also saw growth of 20 per cent over the previous year. "In 2011 we were successful in posting further growth and sustainably expanding our position in a region which is experiencing one of the world's largest economic growth rates," said Michael Kotzbauer, Regional Board Member for Asia at Mittelstandsbank, at a press conference in Beijing on Wednesday. The Bank is aiming for income growth in 2012 by as much as 30 per cent in China.

Asia is the most significant market after Western Europe for Commerzbank's corporate customer business, which has had a presence in the region for 50 years. According to the Bank's economists, China also remains set for growth in 2012 with a forecasted increase in GDP of 7.5 per cent. In China, where Commerzbank has been represented for 30 years, the Bank advises German SME customers conducting business in China. Commerzbank also advises Chinese companies looking to conduct business in Germany. "Personal advice for our customers at a local level from within China differentiates us from our competitors," says Kotzbauer. Commerzbank has branches in Beijing, Shanghai, Hong Kong and Tianjin and is also represented with branches in Tokyo and Singapore.

Over the past few years Commerzbank has been able to build upon the traditional business relationships it holds with its customers in China through loans, liquidity controls and payment transactions, as well as processing foreign trade. Furthermore, the close dovetailing of our corporate customer business with Corporates & Markets (C&M), the investment banking arm of Commerzbank, allows companies direct access to the capital markets and supports customers in their international activities. Commerzbank has a strong position in China in the areas of interest rate and foreign currency trading, which essentially covers advising and providing a full service solution for institutional clients on all risk hedging matters. Commerzbank is also one of the leading providers in China in commodities trading and certificate issuance. In its Corporate Finance business RMB bond issuance, as well as advising companies on cross-border mergers and acquisitions (M&A), ranks amongst the core competencies of Corporates & Markets.

"Global volatility means that as one of the only banks with a commodities hedging facility for Chinese clients and deep expertise in risk management solutions the value we can bring to China is becoming very attractive to Chinese corporates and institutions. We see an increasing appetite for use of some of the more sophisticated techniques available to manage their exposure and risk and this is extremely timely", explained Nick Johnston, Head of Corporates & Markets in Asia.

For a year now Commerzbank has made it possible for its corporate customers in Germany to conduct cross-border commercial transactions with the Chinese mainland in renminbi. Since then the number of renminbi accounts has seen three-digit growth and cross-border transactions in the Chinese currency have increased considerably. In addition to China and Germany, Commerzbank has also started to offer renminbi products and services in Hong Kong, Japan, Singapore and Belgium. Other countries are set to follow, for example Switzerland and Russia in the near future. Following the introduction of cross-border trading in renminbi, the Chinese government is now gradually opening up cross-border capital transactions with mainland China. Here too Commerzbank is supporting its customers.

Commerzbank has for many years now been the market leader in Germany in business banking for small- and medium-sized enterprises. Worldwide the Bank is represented in 52 countries with some 60 sites for its customers. It is thus the market leader for Germany's Mittelstand and major international companies looking to conduct business in Germany. Commerzbank is an international leader with more than 7,000 correspondent banking relationships. Through close cooperation between the two segments of Mittelstandsbank and Corporates & Markets, the investment banking arm of Commerzbank, corporate customers receive services and products from one source.


Press contact:
Martin Halusa: +49 170 8528638
Sandra Fohlmeister: +49 173 3019483


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About Commerzbank

Commerzbank is a leading bank for private and corporate customers in Germany. With the segments Private Customers, Mittelstandsbank, Corporates & Markets, Central & Eastern Europe as well as Asset Based Finance, the Bank offers its customers an attractive product portfolio, and is a strong partner for the export-oriented SME sector in Germany and worldwide. With a future total of some 1,200 branches, Commerzbank has one of the densest networks of branches among German private banks. It has around 60 sites in 52 countries and serves almost 15 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of almost EUR 10 billion with 58,160 employees.


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Disclaimer

This release contains statements concerning the expected future business of Commerzbank, efficiency gains and expected synergies, expected growth prospects and other opportunities for an increase in value of the company as well as expected future net income per share, restructuring costs and other financial developments and information. These forward-looking statements are based on management's current expectations, estimates and projections. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Commerzbank has no obligation to periodically update or release any revisions to the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.

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