Commerzbank AG — Earnings Release 2023

May 17, 2023

Strong start to the year – Q1 operating result of €875m

Analyst conference – Q1 2023

17 May 2023 Commerzbank, Manfred Knof, CEO & Bettina Orlopp, CFO, Frankfurt All figures in this presentation are subject to rounding

Manfred Knof CEO

Transformation on track – on course to reach 2023 targets

Good revenues from fee business and higher rates

CHF mortgages in Poland remain a burden on revenues

High asset quality and low risk result

Costs on track – Cost Income Ratio of 65%

First share buyback of €122m approved – accrued for 50% pay-out

Managing the bank in a dynamic environment

Deposits

Focus on deposit beta while ensuring sound level of volumes and funding mix

Assets

Seize lending opportunities at healthy margins while maintaining strict underwriting standards

Expenses

Manage inflation pressure and prioritize investment programs within CIR target

Good progress on ESG priorities

Key take-aways

✓

Strong start to the year and transformation on track

Strict performance management towards targets 2023 and 2024 ✓

Capital return plan on track with approval of 1st share buyback

Bettina Orlopp CFO

High profitability in Q1

Strong operating result Strong operating result Strong operating result of €875m of €875m of €875m	Revenues stable YoY Revenues stable YoY Revenues stable YoY excluding provisions excluding provisions excluding provisions for legal risks of for legal risks of for risks	Costs of €1,724m Costs of €1,724m Costs of €1,724m reflect reflect higher accrual reflect higher accrual for variable for variable for	Low Low risk result of Low risk result of result of -€68m -€68m -€68m	CET1 ratio at 14.2% CET1 ratio at 14.2% with comfortable buffer buffer to MDA to
Net result of €580m of Net result of €580m	CHF CHF loans CHF loans	compensation and compensation and reduced compulsory reduced compulsory reduced compulsory	TLA remains TLA of €483m remains of remains available available	Accrual for 50% pay for pay
Net Net RoTE RoTE of 8.3% of 8.3%	QoQ QoQNII growth NII growth QoQ NII growth compensating loss of compensating loss of compensating loss of benefits TLTRO TLTRO benefits from TLTRO	contributions contributions contributions CIR reached 65% 65% CIR reached 65%	NPE ratio at 1.1% NPE ratio at 1.1% NPE ratio at 1.1%	out ratio out
	NCI improved QoQ NCI improved QoQ NCI improved QoQ due to better securities due to better securities due to better securities business but below business but below business but exceptional Q1 2022 Q1 exceptional Q1 2022

Strong operating performance and low risk result

1) Consolidated result attributable to Commerzbank shareholders and investors in additional equity components

2) Includes net result reduced by pay-out accrual if applicable and potential (fully discretionary) AT1 coupons

Only minor exceptional items in Q1

2022	(€m)		Revenues	2023 (€m)	Revenues
Q1	Hedging & valuation adjustments	17	56	Q1 Hedging & valuation adjustments	9	13
	PPA Consumer Finance (PSBC)	-6		PPA Consumer Finance (PSBC)	-7
	TLTRO benefit (O&C)	45		Credit holidays in Poland (PSBC)	11
Q2	Hedging & valuation adjustments	48	111
	Consumer (PSBC) PPA Finance	-5
	TLTRO benefit (O&C)	42
	of (PSBC) Prov judgement pricing accounts . re on	27
Q3	Hedging & valuation adjustments	84	181 -
	PPA Consumer Finance (PSBC)	-5
	TLTRO benefit (O&C)	9
	Credit holidays in Poland (PSBC)	-270
Q4	Hedging & valuation adjustments	-118	38 -
	Consumer (PSBC) PPA Finance	-4
	TLTRO benefit (O&C)	93
	Credit holidays in Poland (PSBC)	-9
F Y			52 -	Q1		13

Increased fees from securities business

Underlying net commission income (€m)

Highlights Q1

NCI in PSBC Germany higher QoQ mainly due to good securities business

In PSBC Germany increase in securities volumes and number of transactions as well as higher sales volumes of life insurance business

NCI in CC stable QoQ with good performance of the bond business and weaker contribution from FX business

NII with so far limited impact from higher deposit beta

Underlying net interest income (excl. TLTRO) (€m)

Highlights Q1

QoQ lower NII at PSBC Germany mainly due to less benefits from prepayment of mortgages – offsetting effect in O&C

Stable revenue contribution from mortgages

QoQ lower NII at mBank mainly due to higher deposit beta

QoQ lower NII at CC with higher funding costs for trading books and slightly lower contribution from loans not fully compensated by better NII from deposits

Improved NII at O&C mainly due to higher short term rates that increase NII from floating rate and short term instruments – offset in NFV by corresponding hedges

Base scenario improved to €7bn with potential upside

Interest rate¹ and deposit beta² assumptions

EUR

Average base scenario ECB deposit rate (Q2-Q4): 3.4% Average base scenario 5y swap rate (Q2-Q4): 3.0%

Deposit beta² in Germany rising from ~15% in Q1 to average ~35% in Q2-Q4 (→ FY average ~30%)

PLN Increasing deposit beta at largely unchanged rates

Scenario assumptions

Average deposit volume slightly below level of Q1 Slight reduction in PSBC Germany loan volumes

Sensitivity to deposit beta²: change of +/- 1 percentage point of deposit beta in Q2-Q4 leads to ~ -/+ €55m change in NII

1) EUR scenario based on forward rates from end March 2023

2) Deposit beta is the average interest pass-through rate to customers across interest bearing and non-interest bearing deposit products

Active cost management continued

Operating expenses (€m) 1,306 1,321 132 Q1 2022 143 Q1 2023 1,438 1,464 +1.8% / +€26m mBank Group excl. mBank

Compulsory contributions (€m)

Total expenses (€m)

Highlights Q1

Operating expenses benefit from 984 net FTE reduction YoY to 35,971 and decreased administrative expenses but offset by higher accruals for variable compensation due to better performance

Decreasing European bank levy due to lower target volume for 2023 driven by reduced growth for European covered deposits

Lower compulsory contribution and cost management lead to decreasing total expenses

High credit quality maintained: low risk result of -€68m

Risk result (€m)

2022 2023 -464 -106 -84 -222 -68 Q1 Q2 Q3 Q4 Q1 TLA

Risk result divisional split

Risk Result (€m)	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Small-Business Customers Germany Private and	-17	-46	-52	-102	-91
mBank	-55	-41	-38	-39	-37
Corporate Clients	-286	-52	13	-121	54
Others & Consolidation	-106	34	-6	40	6
Group	-464	-106	-84	-222	-68
NPE (€bn)
Small-Business Customers Germany Private and	0.7	0.7	0.7	0.7	0.7
mBank	1.1	1.2	1.2	1.1	1.2
Private and Small-Business Customers	1.8	1.8	1.8	1.8	1.9
Corporate Clients	1.9	2.4	2.4	2.8	2.7
Others & Consolidation	0.2	0.7	1.4	1.0	0.8
Group	3.9	4.8	5.6	5.7	5.5
Group NPE ratio (in %)	0.8	0.9	0.9	1.1	1.1
Group CoR (bps) (year-to-date)	39	24	15	17	5
Group CoR (CoRL) on Loans (bps) (year-to-date)	69	42	32	33	10

Highlights Q1

PSBC Germany risk result impacted by €42m TLA increase and single cases mBank's risk result on lower level

CC risk result driven by write backs and TLA net release

NPE ratio remains on low level of 1.1% CoRL of 10bps on a low level in Q1

€483m top level adjustment remains available

Highlights Q1

Increase of TLA in PSBC due to growing uncertainty regarding interest rates, energy prices and inflation requiring minor adjustments of assumptions and TLA relevant sub-portfolio

Decrease of TLA in CC mainly driven by materialized downgrades as well as changes within the portfolio

TLA of O&C unchanged at €9m Remaining €483m TLA available to cover expected secondary effects from supply chains, inflation and higher interest rates in 2023

Operating result driven by good revenues and low LLPs

Group operating result

Group P&L

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Revenues	2,793	2,420	1,886	2,363	2,668
Exceptional items	56	111	-181	-38	13
Revenues excl. exceptional items	2,737	2,309	2,066	2,401	2,655
o/w Net interest income	1,362	1,441	1,617	1,869	1,954
o/w Net commission income	970	894	849	806	915
o/w fair Net value result	336	21	87	-25	-81
o/w Other income	69	-48	-487	-249	-133
Risk result	-464	-106	-84	-222	-68
Personnel expenses	859	825	851	880	899
Administrative expenses	579	598	579	673	566
Operating expenses	1,438	1,423	1,429	1,553	1,464
Compulsory contributions	347	144	91	59	260
Operating result	544	746	282	528	875
Restructuring expenses	15	25	14	40	4
Pre-tax profit Commerzbank Group	529	721	267	488	871
Taxes on income	199	226	228	-41	279
Minority interests	32	25	-155	57	12
Net result	298	470	195	472	580
CIR (excl. compulsory contributions) (%)	51.5	58.8	75.8	65.7	54.9
CIR (incl. compulsory contributions) (%)	63.9	64.8	80.6	68.2	64.6
Net RoTE (%)	4.0	6.7	2.2	6.7	8.3
Operating RoCET (%)	9.2	12.4	4.7	8.8	14.6

Highlights Q1

YoY 2% increase of underlying revenues excluding burdens from CHF mortgages (€132m higher YoY) driven by strong NII growth of 43%

Other income reflects provisions for CHF mortgages

NFV driven by effect of higher rates on banking book hedges – offset to higher NII in O&C

Q1 tax rate of 32% – bank levy expenses and provisions for legal risk of CHF mortgages in Poland not tax deductible but partly offset by lower foreign profit taxation

PSBC: customers adjust deposits as rates increase

Loan and securities volumes (Germany)

Deposits (Germany) (€bn | eop)

Highlights Q1

Increase in securities volume by €13.4bn QoQ – thereof ~€10.3bn due to market moves and €3.1bn net new money

German mortgage business stable at €95bn – pickup of mortgage new business in March but well below volumes one year ago Consumer finance book decreased to €3.4bn

QoQ cyclical and seasonal decrease in deposit volume mainly from shifts into securities, higher spending due to inflation and increasing competitive pressure

(€bn | eop)

Growth of customer business in PSBC Germany

Operating result PSBC Germany (€m)

Segmental P&L PSBC Germany

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Revenues	1,060	1,139	1,069	1,052	1,147
Exceptional items	-6	22	-5	-4	-7
Revenues excl. exceptional items¹	1,066	1,117	1,074	1,057	1,154
o/w Private Customers	795	823	784	794	845
o/w Small-Business Customers	204	218	205	218	226
o/w Commerz Real	66	76	85	45	83
Risk result	-17	-46	-52	-102	-91
Operating expenses	689	691	692	805	703
Compulsory contributions	84	23	4	22	64
Operating result	270	378	320	122	290
(end of €bn) RWA period in	32.4	32.1	32.1	32.5	32.4
CIR (excl. contributions) (%) compulsory	65.0	60.7	64.7	76.5	61.2
CIR (incl. contributions) (%) compulsory	73.0	62.7	65.1	78.7	66.8
Operating (%) return on equity	27.8	37.3	31.9	12.2	28.1

1) Minor impacts from shifts in Q1 2023 between the customer groups of PC and SBC have not been restated for 2022

Highlights Q1

Increase in underlying revenues in all customer segments drives improvement of operating result Operating result includes -€42m TLA increase

Underlying NII up €114m (23%) YoY benefits from increased interest rates – decrease of -€13m QoQ mainly due to less benefits from early repayment of mortgages following change in internal calculation method

NCI -€28m YoY (-5%) due to lower trading volumes in a less volatile market Net reduction of customer base in Germany by 31k in Q1 – revenue churn still well below expectations

mBank: strong underlying business

Operating result mBank

(€m)

…excluding provisions for legal risks of CHF loans and credit holidays

175 143 219 301 262

Segmental P&L mBank

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Revenues	408	402	-278	417	356
Exceptional items	-1	-1	-271	-7	14
Revenues excl. exceptional items	409	402	-7	423	342
Risk result	-55	-41	-38	-39	-37
Operating expenses	132	138	129	141	143
Compulsory contributions	87	119	83	36	76
Operating result	134	103	-528	201	100
RWA (end of period in €bn)	22.1	22.0	21.2	21.1	21.3
CIR (excl. compulsory contributions) (%)	32.3	34.3	n/a	33.8	40.3
CIR (incl. compulsory contributions) (%)	53.6	64.0	n/a	42.5	61.6
Operating on equity (%) return	19.3	14.8	-77.7	30.2	14.9
Provisions for legal risks of CHF loans of mBank	-41	-40	-477	-92	-173
Credit holidays in Poland	-	-	-270	-9	11
CHF Op. result ex prov. for loans & credit holidays	175	143	219	301	262

Highlights Q1

Operating result excluding additional provisions for CHF loans and credit holidays increased 49% YoY but below record Q4 2022

Underlying NII up 54% YoY driven by higher rates but 4% lower QoQ due to increased deposit beta

Volume of CHF loans before deductions at €2.3bn; provisions for legal risk of €1.4bn (thereof €0.2bn liabilities for repaid loans as well as for legal fees) – net volume €1.1bn and coverage ratio of 61.3%

CC: ongoing shift into higher yielding deposits

Loan volume corporates

(€bn | quarterly avg. | Mittelstand and International Corporates)

Deposits

(€bn | quarterly avg.)

Highlights Q1

Loan volumes stable QoQ across client groups. YoY loan volume increase in Mittelstand mainly from working capital and investment loans

Growth in deposit volumes throughout the quarter and reallocation to higher yielding products

Average RWA efficiency of corporates portfolio further improved to 6.7% (6.1% in Q4)

CC: record quarter supported by positive risk result

Operating result

Segmental P&L CC

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Revenues	926	882	1,021	962	1,078
Exceptional items	2	-18	15	-31	18
Revenues excl. exceptional items	924	900	1,006	993	1,060
o/w Mittelstand	488	471	524	592	604
o/w Corporates International	227	235	247	215	248
o/w Institutionals	137	141	146	176	192
o/w others	71	52	89	10	16
Risk result	-286	-52	13	-121	54
Operating expenses	532	504	497	627	514
Compulsory contributions	115	1	2	1	78
Operating result	-7	324	535	213	539
RWA (end of period in €bn)	80.5	78.8	81.0	81.6	82.0
CIR (excl . compulsory contributions) (%)	57.5	57.2	48.7	65.2	47.7
CIR (incl contributions) (%) . compulsory	69.9	57.3	48.9	65.3	55.0
Operating on equity (%) return	-0.3	13.0	21.5	8.4	20.8

Highlights Q1

YoY increased revenues in all customer segments driven by higher NII from deposits Operating result additionally reflects positive risk result

Underlying NII up 36% YoY Underlying NFV of €114m benefits from good capital markets activities in bonds and commodities

Pre-provision result up 74% YoY based on 15% higher underlying revenues and 8% lower costs

O&C: operating loss in line with expectations

Operating result

Segmental P&L O&C

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Revenues	399	-2	74	-68	86
Exceptional items	61	108	80	4	-13
Revenues excl. exceptional items	338	-110	-6	-72	99
o/w Net interest income	89	-3	68	98	229
o/w Net commission income	-11	-9	-17	-9	-11
o/w Net fair value result	167	-54	-29	-54	-158
o/w Other income	93	-44	-28	-107	39
Risk result	-106	34	-6	40	6
Operating expenses	86	91	112	-20	104
Compulsory contribution	61	1	1	-	42
Operating result	147	-60	-45	-8	-54
(end of €bn) RWA period in	40 0	42 2	40 2	33 .5	35 8

Highlights Q1

QoQ increased underlying NII driven by rising short-term rates – offset in NFV by corresponding hedging derivatives

QoQ higher costs impacted by accrual for variable compensation and compulsory contributions Valuation effects of -€5m from CommerzVentures

CET1 ratio of 14.2% and buffer to MDA of 420bps

Highlights Q1

Credit risk RWA increase of €2bn mainly due to anticipated effects of model adjustments in the context of IRB Repair ("Future of the IRB")

Capital increase based on positive net result and improved other comprehensive income

Increase of MDA driven by German countercyclical risk buffer and sectoral systemic risk buffer activation in Feb 2023

1) Includes net result reduced by pay-out accrual if applicable and potential (fully discretionary) AT1 coupons

Q1 2023

10.01

Targets and expectations for 2023 confirmed

We anticipate NCI on previous year's level and NII around €7bn with further upside potential	We target total expenses of €6.3bn. However, CIR is key steering metric	We expect a risk result < €900m assuming usage of TLA	We expect a CET1 ratio of ~14%	We aim for a net result well above previous year and we intend to increase the pay out ratio to 50%1

Expectations based on assumption of a mild recession in 2023 and subject to future development of CHF burdens in mBank

1) Pay-out ratio based on net result after potential (fully discretionary) AT1 coupon payments

Appendix

2023 strategy KPIs	26
German economy	27
Russia, Covid and risk related information
Russia net exposure	28
Commerzbank's risk provisions related to stages	29
Vulnerable sectors: automotive, energy/utilities, machinery, construction/paper, chemicals/plastics,
metals	30-36
Commercial real estate	37
Residential mortgage business	38
Corporate responsibility

Renewable energy portfolio 39

Sustainable products target 40

ESG ratings 41

Commerzbank Group P&L tables

Commerzbank financials at a glance 42 Key figures Commerzbank share 43 Loan and deposit volumes 44

Funding & rating

Commerzbank's MREL requirements	45
Distance to MDA	46
Capital markets funding	47
Liquidity position / ratios	48
Rating overview	49
Capital management
IAS 19: Pension obligations	50
FX impact on CET1 ratio	51
Group equity composition	52

	53
Private and Small-Business Customers	54
PSBC Germany	55
mBank	56
Corporate Clients	57
Others & Consolidation	58
Exceptional revenue items by segment	59
Glossary	60
Contacts & financial calendar	61
Disclaimer	62
	Commerzbank Group

2023 strategy KPIs

	KPI	YE 2020	YE 2021	YE 2022	Q1 2023	Target 2023
	Domestic locations (#)	~800	~550	~450	~450	400
PSBC	Active digital banking users (%)	66	70	72	73	72
	Loan and securities volumes (GER €bn)	290	340	313	327	345
	International locations exited (#)	-	6	10	11	13
CC	Digital banking users activated (%)	-	24	52	60	70
	Portfolio with RWA efficiency < 3% (%)	34	29	26	23	26
Operations &	IT capacity in nearshoring locations (%)	14	20	24	26	26
Head Office	Apps on cloud1 (%)	32 41 61				Target reached YE 2022
	Reduction of external staff (#)		Reduction starts 2023		To be reported on annual basis	400
Group	Contracted gross FTE reduction (#)	-	>6,000	8,850	9,150	10,0002

1) Apps on cloud target 2022 reached. Strategic shift from volume-driven to value-driven approach. Future app migration focuses on optimisation – hence no target set for 2023

2) Planned gross reduction as part of Strategy 2024

German economy to stay weak

After a decline in the fourth quarter of 2022, the German economy stagnated in the first quarter of 2023. Many industrial companies were able to expand their production in view of a lower risk in energy supply and a better supply of intermediate products again. In the energy-intensive sectors, the somewhat lower energy costs also had a positive impact.

On the demand side, private consumption remained weak. The tighter monetary policy slowed down residential construction investments in particular. A positive contribution at the beginning of the year came in particular from higher exports, which also benefited from the diminishing problems in the supply chains.

Due to the sluggish economy, the number of unemployed has risen slightly in recent months. However, this is partly due to the fact that more refugees from Ukraine are officially counted as unemployed.

The inflation rate has fallen from its high of almost 9% last autumn to 7.2% in April. Energy prices, for example, have recently not risen nearly as much as they did a year earlier; in some cases they have even fallen somewhat. However, the core inflation rate excluding energy and food, has continued to rise and stood at just under 6%.

1) Latest development Outlook for 2023/2024

Germany Eurozone

Even though business sentiment has improved in recent months, the economy is likely to remain weak this year and for much of the coming year. This is because the massive interest rate hikes by the ECB and many other central banks will increasingly weigh on the economy. This is especially true for the construction sector, where activity is expected to decline noticeably in the coming quarters. But other investments and demand from abroad are also likely to be slowed down. This should more than offset the relief in energy costs, so that a slight decline in real GDP is even to be feared for the second half of the year. In 2024, too, at best a slight recovery of the economy is to be expected, so that on average the economy is likely to show a slightly negative result in 2022 and stagnation in 2023.

The inflation rate will probably continue to fall in the coming months and reach about 4% at the end of the year. This is because energy prices are likely to be rather lower than a year earlier, also due to government interventions such as price brakes for natural gas and electricity. Food prices are also likely to be close to their peak. Finally, price pressures from higher material costs are also easing. However, underlying inflation will remain well above the ECB's target of 2%, as the next wave of costs will hit companies with the noticeable increase in wages.

Russia exposure

Net exposure (€m)	18 Feb 2022	29 Apr 2022	15 Jul 2022	30 Sep 2022	31 Dec 2022	31 Mar 2023
Corporates	621	580	398	322	261	217
– thereof at Eurasija	392	374	182	98	61	46
Banks	528	78	75	61	46	44
Sovereign (at Eurasija)	127	137	182	161	87	66
Pre-export finance	590	396	362	369	350	318
Total	1,866	1,191	1,017	913	744	645

Group exposure net of ECA and cash held at Commerzbank reduced to €645m

Additionally, Eurasija holds domestic RUB deposits of ~€0.6bn (€0.8bn Dec. 22) at Russian Central Bank/Moscow Currency Exchange

We continue to reduce exposures while supporting existing clients in compliance with all sanctions regulations

Stable overall risk provisions

Exposure¹

(€bn | excluding mBank)

Risk provisions

(€m | excluding mBank)

Highlights Q1

Exposure increase driven by deposits at German central bank

Decrease of stage 3 exposure by €0.2bn, coverage slightly increased

Overall level of TLA nearly unchanged at €483m TLA increases the effective coverage of our credit portfolio mainly in stage 2

1) Exposure at Default relevant for IFRS 9 accounting (on- and off-balance exposures in the accounting categories AC and FVOCI), changes in stage distribution in previous quarters due to model adjustment

2) Note: TLA is not assigned to stages, hence it is not included in the coverage

Vulnerable sectors

Corporates' sectors

(€bn | EaD)

Share within Commerzbank's portfolio 03/2023

Automotive

Portfolio comments / sector outlook

• Economic slowdown with its impact on the demand side have overtaken from supply chain disruptions (Covid / Ukraine-Russia) as a main risk concern. Our forecast of acceptable results for 2023 is gaining traction as the year progresses supported by the still material order backlog, easing supply chain challenges and continued absence of new event risks
• While we are convinced of the fundamental allure of individual mobilization, the challenges of the disruptive and dynamic technological transformation, management of supply chains in light of geopolitical risks and more and more indications of eroding competitiveness in the EU and particularly Germany is putting pressure on OEMs and suppliers alike
• EaD levels moderated, primarily driven by derivative exposure with OEMs/mega-suppliers due to market movements. OEM/tier1-supplier continue to be the cornerstone of our portfolio and are assessed to emerge from current challenges fundamentally intact. Exceptionally strong OEM profit levels observed in 2022 are expected to moderate somewhat in 2023
• Automotive suppliers had already to deal with margin pressure due to strong rise of price levels for energy, logistics and others. Clients with weaknesses in its business model, e.g. a weak market position will find it hard to pass through increased costs, eroding margins. Further rating migrations are hence expected to be more pronounced for those clients
• Client specific risk factors are assessed to materialize from time to time, leading to an moderate increase of intensive care cases. Usual reasons triggering a transfer include short term liquidity needs or complex refinancing situations. Commerzbank is continuously evaluating and mitigating respective risks by increasing structural protections and consult early on with the client and all related internal functions, including the intensive care department

Sector portfolio based on BSS (Industry Control Key) Sector Outlook

1) "Other" sub-portfolio generally includes individual major exposures that carry out business activities in various subsectors and are not allocated to a sub-portfolio. Due to the diversification of these clients, no uniform sector outlook can be given.

Machinery

Portfolio comments / sector outlook

• Overall stable sector due to internationalization and very high diversification within the portfolio
• The sub-segments are affected to varying degrees by various trouble spots
• Supply chain disruptions (delays, shortages, esp. critical parts) eased slightly, however prices for materials and services are still high and labour costs are expected to increase further. Measures to partially offset these negative effects were taken
• Continued delays in transport, unless local sourcing are in place
• Energy prices have less effects on engineering part of machinery but burdening effects on producers. Therefore the manufacturers have started changing their processes to achieve a better energy efficiency
• Prices: even companies that previously had no price escalator clauses were able to renegotiate prices with customers and pass on the increased costs for the most part (enormous importance of mechanical and plant engineering for end customers). For new orders the higher costs are prices into the offer. However, delayed price transfers have partially led to a weakening of the profit margins

Energy / Utilities

Portfolio comments / sector outlook

• Energy sector : as part of the critical infrastructure the utilities sector is fundamentally stable, albeit was strongly affected by the erratic price developments of fossil fuels, especially gas, last year. Thanks to heavy state interventions in all of Europe and a very mild winter the price levels have evened out on an overall acceptable level and as of today the energy supply seems secure for the coming winter 2023/2024. Gas storage levels are high in all of Europe. Russian energy export do not play a significant role in Europe's energy supply anymore
• Some risk factors remain: the operating LNG terminals in Germany have not reached full capacity yet. Due to lower prices the energy savings dropped again for private households and the industry sector under the necessary level. The upcoming winter might not be as mild as the last one. Asian and especially Chinas demand for LNG is rising again. Even if this might not lead to a gas shortage it at least will have effects on the price level. Prices may rise again starting the end of summer / beginning of autumn. To be prepared for this we observe high liquidity reserves by our clients
• On the other hand the climate transition is on a good way. More and more (offshore) wind parks and large array of solar panels are coming online and the share of the energy production of sustainable fuels rose last year to a record high of 12% worldwide (39% incl. nuclear). Even if coal remained an important energy source due to the crisis last year and pushed the global warming emissions, we believe that from 2024 on we might see a significant drop in the demand for fossil fuels
• Overall, the financial effects for the energy sector should be manageable

Sector portfolio based on BSS (Industry Control Key) Sector Outlook

1) "Other" sub-portfolio generally includes individual major exposures that carry out business activities in various subsectors and are not allocated to a sub-portfolio. Due to the diversification of these clients, no uniform sector outlook can be given.

Construction / Paper

Portfolio comments / sector outlook

• The construction portfolio is diversified with a high proportion of borrowers with investment-grade ratings. Bigger customers are international companies in Europe. The financing focus lies in the short-term and guarantee business
• The industry was in 2022 able to pass on increases in material and energy costs to there customers. But the sharp rise in energy costs, the rise in interest rates and due to the accelerating inflation consumers suffer a significant loss of purchasing power. This has already led to a noticeable decline of incoming orders mainly in the private sector but also for infrastructure investments in Germany. An opposite effect is expected for investments for saving energy
• Due to necessary investments in the production plants the portfolio in the paper sector has a higher part of mid- and long-term credit facilities. The credit exposure increased continuously over the last months
• The Paper industry is highly affected by the increasing energy and production costs. The possibility to pass through these costs to the customers becomes more and more difficult, although many companies have moved to include a price-sliding clause in their contracts. For 2023 the companies calculate with a lower profitability
• In 2022 we saw and we expect it also for 2023 more rating shifts from investment grade into sub-investment grade. However, the larger companies have broader opportunity to face the current challenges

Sector portfolio based on BSS (Industry Control Key) Sector Outlook

Chemicals / Plastics

Portfolio comments / sector outlook

• Despite the effects of the Ukraine war and the recessionary trends with high inflation and rising interest rates, the portfolio's risk profile is satisfactory, with 86% investment-grade addresses. 75% of the loans have a term of 3y and are therefore flexible. Outlook: at best, all companies expect stable sales for 2023 without volume growth. EBITDA is expected to reduce by 15-25%, margin pressure are noticeable. Large caps and global players generally have strong financials and are able to absorb the impact of the economic slowdown. While the risk profile of SMEs will temporarily weaken (especially in the plastics sector)
• Commodity chemicals: gas serves as a raw material/primary energy source in the production process. The danger of a gas limitation in the winter 2022/2023 was avoided. The rise in energy costs leads to margin erosion and less attractive production in Germany. Companies are taking the following measures: cost-cutting programs, price increases (price escalation clauses), investment reduction, plant refitting to oil, reactivation of coal-fired power plants and increased use of renewable energies. Some companies are considering to transfer unprofitable production sites to other countries (domestic de-industrialization)
• Global player with production sites in America, Asia and parts out of Western Europe can temporarily balance out negative influences in individual locations. The chemical industry is often at the beginning of the value chain and can trigger a chain reaction with unforeseeable consequences if pre-products or intermediates are missing
• Plastic as an important industry with composite materials follow the cyclical nature of their costumer markets and is mostly anchored in the small and medium-sized businesses. Companies are often not able to pass on the energy/raw material prices directly (time lag). Therefore the margin are temporarily weaken

Sector portfolio based on BSS (Industry Control Key) Sector Outlook

Metals

Portfolio comments / sector outlook

• The metal portfolio is diversified with a high share of borrowers with investment grade ratings. The portfolio is also regionally wide spread with a high share of international exposures. The focus is primarily on short and mid term business. Against this background, the portfolio is well-prepared for a recession scenario. However sector strategy is still on hold due to the ongoing structural challenges
• Metal production and processing are highly affected by energy and gas-crisis. Gas serves both as a process component and a primary energy source in the production process. The metal industry is often at the beginning of the value chain and can trigger a knock-on effect with considerable consequences for the buying industries, especially automotive, machinery and construction. Global positioning protects some groups with diversified locations. Production sites in America, Asia and parts of Europe outside the primarily affected countries can temporarily balance out negative influences in individual locations. Moreover, many players have fixed energy contracts for the next years (usually until 2024) to mitigate the bulk of the energy price risk. However some groups (especially aluminium and steel production) have cut production because of the high energy prices
• The metal industry had a strong performance in the past two years because of the rising prices and the good business environment. Due to the economic downturn this might come to an end in 2023. Some problems are yet to materialize in terms of shrinking demand and rising energy costs. However, producers are entering this downturn in a better leveraged position than in previous periods. Therefore the sector outlook overall is stable

Sector portfolio based on BSS (Industry Control Key) Sector Outlook

1) Foundries, Pipe Manufacturing and Cold Rolling Mills with yellow sector outlook but not part of top 5 sub-portfolios

2) "Other" sub-portfolio generally includes individual major exposures that carry out business activities in various subsectors and are not allocated to a sub-portfolio. Due to the diversification of these clients, no uniform sector outlook can be given.

Commercial Real Estate (Asset Based)

Location 03/23¹ (€bn | EaD performing)

Fixed interest period 03/23 (€bn | EaD)

Portfolio

• Portfolio amounts to 8.9 €bn of which 0.2 €bn is non-performing exposure (~2% of total portfolio)
• Sound rating profile with a high share of 83% with investment grade quality
• EaD share to IFRS9-stages: 95% in S1, 3% in S2 and 2% in S3 (almost completely one legacy-case)
• Assets focused on most attractive A-Cities. Over 99% of financed objects are located in Germany
• Offices and residential with the highest share of the portfolio (together 6.3 €bn)
• Average LTV is 51% largest asset class office with 49% LTV
• Nearly 50% of the portfolio with full or partial recourse to the sponsor or borrower
• Development risk with about 5% share of the portfolio; increased requirements implemented

Strategy

▪ As a result of the current macroeconomic situation, the new business strategy will continue to be cautious. Strong restraint in the non-food retail sector

1) City categories according to Bulwiengesa. Category A represents the seven most attractive and liquid real estate cities in Germany

2) Until further notice or variable interest rate

Residential mortgage business and property prices

German residential properties (index values)

Prices of houses and flats, existing stock and newly constructed dwellings, averages

Overall mortgage portfolio

• In Q1 mortgage volume went slightly down risk quality remained stable so far:
• − 12/17: EaD €75.2bn RD 9bps
• − 12/18: EaD €81.0bn RD 9bps
• − 12/19: EaD €86.6bn RD 8bps
• − 12/20: EaD €95.1bn RD 7bps
• − 12/21: EaD €102.0bn RD 7bps
• − 12/22: EaD €102.9bn RD 7bps
• − 03/23: EaD €102.2bn RD 7bps
• Rating profile with a share of 92.6% in investment grade ratings; poor rating classes 4.x/5.x with 1.3% share only

• Vintages of recent years developed more favorably so far; NPE-ratio remains at a low level of less than 0.3% (coverage 85%)

• New business in Q1 2023 with €1.5bn around 33% higher than in previous quarter but still on much lower level than in previous years

• PD in new business improved to 0.48%, repayment rates increased slightly from 2.51% to 2.59%
• Portfolio guidelines and observations for PD, LtCV and repayment rates are continuously monitored
• Average "Beleihungsauslauf" (BLA) in new business of 79.3% in Q1 2023. German BLA is more conservative than the internationally used LtV definition due to the application of the strict German Pfandbrief law
• Increased costs of living are adequately taken into account in the application process

Risk parameters unchanged, but economic environment of rising interest rates, inflation and recession is still challenging – however, we do not expect significant price declines in the German real estate market within the next months

Development of renewable energy portfolio

Renewable energy portfolio (€bn | eop)

Global footprint of renewable energy financing

Offshore:

Commerzbank active globally as MLA¹ and lender with offshore projects in Germany, France, Belgium, UK and Taiwan

International RE project finance:

amongst others UK, France, Spain, US, Italy and Chile

Core market Germany: approx. 46% of portfolio in Germany

invested in Germany

54% invested globally

Good development of sustainable products in Q1 2023

1) 2021 and 2022 numbers based on different method of calculation due to broader scope of included advisory products. * Flow value / ** Stock value

ESG ratings prove that we are on the right track

ESG Rating

• Double A rated in the upper part of the MSCI ESG rating scale
• Above industry average positions in terms of privacy & data security, human capital development and financing environmental impact

Severe High Medium Low Negligible

ESG Risk Rating

• Commerzbank is at medium risk of experiencing material financial impacts from ESG factors (score of 21.1 / 100 with 0 being the best)
• Very well positioned above industry average on the 1st quantile

ESG Corporate Rating

D- D D+ C- C C+ B- B B+ A- A A+

• Rated in the ISS ESG prime segment – top 10% of industry group
• Excellent ratings especially in the categories staff & suppliers, environmental management, corporate governance and business ethics

ESG QualityScores

10 9 8 7 6 5 4 3 1

• Commerzbank assigned with low ESG risks by ISS ESG QualityScores
• Social QualityScore 1, Environmental QualityScore 2, Governance QualityScore 3

Climate Change Rating

E D B A

C

• Until 11 / 22: rated B (above-average in financial sector). Positioned as "Sector Leader Financials" in DACH region (ranked top 15% of financials in Germany, Austria and Switzerland)
• 12 / 22: rated C, global average (all industries)
• Supplier Engagement Rating: rated A-

Commerzbank financials at a glance

Group		Q1 2022	Q4 2022	Q1 2023
Total revenues	€m	2 793 ,	2 363 ,	2 668 ,
Risk result	€m	-464	-222	-68
Personnel expenses	€m	859	880	899
Administrative expenses (excl depreciation)	€m	375	465	381
Depreciation	€m	204	208	185
Compulsory contributions	€m	347	59	260
Operating result	€m	544	528	875
Net result	€m	298	472	580
Cost/income ratio (excl . compulsory contributions)	%	51 5	65 7	54 9
Cost/income ratio (incl . compulsory contributions)	%	63 9	68 2	64 6
Accrual for potential AT1 coupon distribution current year	€m	-48	-45	-48
Net RoE	%	3 9	6 5	8 0
Net RoTE	%	4 0	6 7	8 3
Total assets	€bn	519	477	497
Loans and advances (amortised cost)	€bn	269	267	269
RWA	€bn	175	169	172
CET1 ratio¹	%	13 5	14 1	14 2
Total capital ratio (with transitional provisions)¹	%	18 0	18 9	18 9
Leverage ratio¹	%	4 7	4 9	4 8
(LCR) Liquidity coverage ratio	%	135 9	144 9	139 1
funding (NSFR) Net stable ratio	%	132 2	128 3	127 2
NPE ratio	%	0 8	1 1	1 1
Group CoR (year-to-date)	bps	39	17	5
Group CoR on Loans (CoRL) (year-to-date)	bps	69	33	10
Full-time equivalents excl junior staff (end of period)		36 955 ,	36 192 ,	35 971 ,

1) Capital reduced by pay-out accrual if applicable and potential (fully discretionary) AT1 coupons

Key figures Commerzbank share

Figures per share

(€)

	FY 2020	FY 2021	FY 2022	Q1 2023
Number of shares issued (m)	1,252.40	1,252.40	1,252.40	1,252.40
Market capitalisation (€bn)	6.6	8.4	11.1	12.2
Net asset value per share (€)	19.80	20.501	21.601	22.21
Low/high Xetra intraday prices (€)	2.80/6.83	4.70/7.19	5.17/9.51	8.31/12.01

EPS Operating result per share

Loan and deposit development

PSBC (€bn | monthly average)

Corporate Clients (€bn | monthly average)

Highlights

Loan volume slightly down in PSBC – driven by Private Customers in PSBC Germany

Increase in deposit volume in mBank overcompensating slight decrease in PSBC Germany

In CC, loan volumes increased in all customer groups

Higher deposit volumes in Mittelstand and International Corporates

In PSBC Germany >90% of deposits are insured (>65% statutory and >25% private insurance)

In CC >60% of deposits are insured (<5% statutory and ~60% private insurance)

Comfortable fulfilment of RWA and LRE MREL requirements

MREL Requirements and M-MDA

• Based on data as of 31 March 2023, Commerzbank fulfils its current MREL RWA requirement¹ of 22.97% plus the combined buffer requirement (CBR) of 4.39% with an MREL ratio of 31.8% and the MREL subordination requirement of 13.5% plus CBR of 4.39% with a ratio of 27.7% of RWA
• Both, the MREL LRE ratio of 9.6% and MREL subordination LRE ratio of 8.3% comfortably meet the unchanged requirement of 6.52%, each as of 31 March 2023

• The issuance strategy is consistent with both, the RWA and the LRE based MPE MREL requirements

• 1) In May 2022, Commerzbank AG received its current MREL requirement calibrated based on data as of 31 Dec 2020. The resolution approach is a multiple point of entry (MPE) with two separate resolution groups (resolution group A: Commerzbank Group without mBank subgroup; resolution group B: mBank subgroup). The legally binding MREL (subordination) requirement is defined as a percentage of risk-weighted assets (RWA) and leverage ratio exposure (LRE)

• 2) Includes amortized amount (regulatory) of Tier 2 instruments with maturity > 1 year
• 3) According to §46f KWG or non-preferred senior by contract

17 May 2023

Commerzbank, Bettina Orlopp, CFO, Frankfurt

Commerzbank's current MDA

Highlights

420bp distance to MDA based on Q1 2023 CET1 ratio of 14.21% and SREP requirement for 2022

Further regulatory comments:

• MDA increase driven by German CCyB (+44bp) and sSyRB (+10bp) activation in Feb 2023
• Currently no AT1 shortfall
• Tier 2 with moderate maturities and issuance needs in 2023
• Well prepared for further upcoming MDA increases in 2023:
• − Increasing CCyBs in UK (Jul 2023: impact on institution-specific CCyB ~6bp)

AT1 issuance strategy continues in light of economical decisions and in relation to distance to MDA while goal for the Tier 2 layer is ≥ 2.5%

¹⁾ Based on RWAs of €171.5bn as of Q1 2023. AT1 requirement of 1.875% and Tier 2 requirement of 2.5%

Capital markets funding – €2.6bn issued in Q1 2023

Highlights

• Pfandbriefe: €1bn 3y Mortgage-Pfandbrief benchmark
• Non-preferred senior: €750m 7NC6 year benchmark and CHF200m 4year transaction
• Tier 2: SGD300m 10.25NC5.25 transaction
• Private placements: €0.5bn Pfandbriefe and unsecured bonds

Expected funding volume of €8-10bn in 2023

Further strengthen Commerzbank's liquidity position through additional Pfandbrief issuance

● Issued in April²:

€1.25bn 6y Mortgage-Pfandbrief benchmark and CHF125m non-preferred senior transaction

Group issuance activities Q1 2023 (€bn | nominal values)

1) Based on balance sheet figures

2) Not included in figures

Comfortable liquidity position

(% | eop)

LCR Net stable funding ratio (NSFR)

Liquidity risk management

• Daily calculation of the liquidity gap profile
• Liquidity reserves are ring-fenced in separate portfolios on the balance sheet (assets and funding respectively)
• Intraday liquidity reserve portfolio (central bank eligible collateral) serves as cushion for a possible intraday stress
• Stress liquidity reserve portfolio consists of level 1, level 2 and HQLA and covers potential liquidity outflows according to the liquidity gap profile under stress

Highly liquid assets

Rating overview: S&P upgraded Issuer Credit Rating

As of 17 May 2023			Recent rating events
Bank ratings	S&P	Moody's	● In March 2023, S&P upgraded
Counterparty rating/assessment1	A	A1/ A1 (cr)
Deposit rating2	A- stable	A1 stable	"A-" with stable outlook
Issuer credit rating (long-term debt)	A- stable	A2 stable
Stand-alone rating (financial strength)	bbb	baa2
Short-term debt	A-2	P-1
Product ratings (unsecured issuances)			hypothetical resolution scenario
Preferred senior unsecured debt	A- stable	A2 stable
Non-preferred senior unsecured debt	BBB-	Baa2
Subordinated debt (Tier 2)	BB+	Baa3
Additional Tier 1 (AT1)	BB-	Ba2
Sustainability assessments			rating "bbb" is now achieved
Environment, Social, Governance3	2, 2, 2	3, 4, 3
Credit impact score3	-	3

1) Includes parts of client business (i.e. counterparty for derivatives)

2) Includes corporate and institutional deposits

3) Scale of 1-5

• In March 2023, S&P upgraded Commerzbank's issuer credit rating (= preferred senior rating) by 1 notch to "A-" with stable outlook
• Rating action was driven by a strong loss-absorbing buffer providing further protection for senior creditors in a hypothetical resolution scenario
• So-called additional loss absorbing capacity (ALAC) exceeded the S&P model-theoretically relevant threshold of 6%. As a result, an uplift of 2 notches (previously 1 notch) to the stand-alone rating "bbb" is now achieved
• S&P expects Commerzbank to be able to maintain the threshold of above 6% over the next few years

IAS 19: Development of pension obligations

Cumulated actuarial gains and losses (€m)

Cumulated OCI effect¹ Pension obligations (gross) Discount rate in %²

Explanation

The EUR IAS19 discount rate remained unchanged YtD at Q1 2023, the lower IR component therein being compensated by a higher CS component. The present-valued pension obligations (DBO) therefore decreased only slightly mainly due to a lower USD discount rate, which correspondingly produced a small valuation gain in OCI

Due to several basis risks working in the right direction the market movement in Q1 2023 produced a modest increase in the market value of plan assets and, correspondingly, a modest valuation gain in OCI

In total the liability gain and the asset gain lead to a YtD OCI effect of +€118m (after tax) on Group level

The discount rate is derived from an AA rated government bond basket, re-calibrated on corporate bond level, with average duration of 14 years

Funding ratio (plan assets vs. pension obligations) is 109% across all Group plans

1) OCI effect driven by development of plan assets versus pension obligations, after tax, without minorities; cumulated since 1/1/2013 (new IAS19 standard) including possible restatements

2) Discount rate for pension plans in Germany (represents 96% of total pension obligations)

FX impact on CET1 ratio

QoQ change in FX capital position

Explanation

Nearly no impact on CET1 ratio¹ from the decreasing effect of currency translation reserve as it is mostly offset by lower FX driven credit risk RWA

Decrease in credit risk RWA from FX effects mainly due to weaker USD (-€356m) and RUB (-€103m) partly compensated by GBP (+€58m) and PLN (+€28m)

Lower currency translation reserve mainly due to decrease from USD (-€56m) and RUB (-€18m) slightly compensated by PLN (+€6m) and GBP (+€4m)

FX rates3	12/22	03/23
EUR / GBP	0.887	0.879
EUR / PLN	4.681	4.670
EUR / USD	1.067	1.088
EUR / RUB	78.123	84.815

1) Based on current CET1 ratio

• 2) Change in credit risk RWA solely based on FX not on possible volume effects since 12/22
• 3) FX rates of main currencies only

Group equity composition

	Capital Q4 2022 EoP €bn	Capital Q1 2023 EoP €bn	Capital Q1 2023 Average €bn		P&L Q1 2023 €m		Ratios Q1 2023 %
Common equity tier 1 capital	23.9	24.4	1 24.0	Operating Result	875	RoCET → Op.	14.6%
DTA	0.8	0.6
Minority interests	0.3	0.3
Prudent Valuation	0.4	0.5
Defined Benefit pension fund assets	0.6	0.6
Instruments that are given recognition in AT1 Capital	3.1	3.1
Other regulatory adjustments	0.3	0.5
Tangible equity	29.4	29.9	1 29.6	Operating Result	875	Op. RoTE →	11.8%
Goodwill and other intangible (net of tax) assets	1.0	1.0	1.0
IFRS capital	30.4	30.9	1 30.6
Subscribed capital	1.3	1.3
Capital reserve	10.1	10.1
Retained earnings	16.0	16.4
t/o consolidated P&L	1.4	0.6
t/o cumulated accrual for and potential AT1 pay-out coupons	-0.5	-0.8
Currency translation reserve	-0.3	-0.4
Revaluation reserve	-0.4	-0.3		Consolidated P&L	580
Cash flow hedges	-0.1	-0.1		./. accrual for potential AT1 coupon distribution current year	-48
IFRS capital attributable Commerzbank shareholders to	26.4	26.9	1 26.6	Consolidated P&L adjusted for RoE/RoTE	531	Net RoE →	8.0%
Tangible equity attributable Commerzbank shareholders to	25.4	25.9	1 25.6			Net RoTE →	8.3%
Additional equity components	3.1	3.1	3.1

1) Includes consolidated P&L reduced by pay-out accrual if applicable and accrual for potential (fully discretionary) AT1 coupons

Non-controlling interests 0.9 0.9 0.9

Commerzbank Group

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	FY 2022	Q1 2023
Total underlying revenues	2,737	2,309	2,066	2,401	9,513	2,655
Exceptional items	56	111	-181	-38	-52	13
Total revenues	2,793	2,420	1,886	2,363	9,461	2,668
o/w Net interest income	1,401	1,478	1,621	1,958	6,459	1,947
o/w Net commission income	970	894	849	806	3,519	915
o/w Net fair value result	353	69	172	-143	451	-72
o/w Other income	69	-22	-757	-258	-967	-122
o/w Dividend income	-	8	13	11	32	-
o/w Net income from hedge accounting	13	-55	-39	-33	-113	-3
o/w Other financial result	26	-24	-284	-11	-292	3
o/w At equity result	-	4	5	4	13	1
o/w Other net income	30	45	-452	-229	-606	-123
Risk result	-464	-106	-84	-222	-876	-68
Operating expenses	1,438	1,423	1,429	1,553	5,844	1,464
Compulsory contributions	347	144	91	59	642	260
Operating result	544	746	282	528	2,099	875
Restructuring expenses	15	25	14	40	94	4
Pre-tax result Commerzbank Group	529	721	267	488	2,005	871
Taxes on income	199	226	228	-41	612	279
Minority Interests	32	25	-155	57	-42	12
Consolidated Result attributable to Commerzbank shareholders and investors in additional equity components	298	470	195	472	1,435	580
Total Assets	519,322	528,903	535,645	477,428	477,428	497,357
Average capital employed	23,755	23,988	24,102	24,112	24,003	24,048
RWA credit risk (end of period)	144,783	146,222	144,789	140,473	140,473	142,866
RWA market risk (end of period)	10,432	8,934	9,784	7,060	7,060	7,588
RWA operational risk (end of period)	19,891	19,891	19,891	21,199	21,199	21,074
RWA (end of period)	175,106	175,047	174,464	168,731	168,731	171,528
Cost/income ratio (excl. compulsory contributions) (%)	51.5%	58.8%	75.8%	65.7%	61.8%	54.9%
Cost/income ratio (incl. compulsory contributions) (%)	63.9%	64.8%	80.6%	68.2%	68.6%	64.6%
Operating return on CET1 (RoCET) (%)	9.2%	12.4%	4.7%	8.8%	8.7%	14.6%
Operating return on tangible equity (%)	7.6%	10.3%	3.8%	7.2%	7.2%	11.8%
Return on equity of net result (%)	3.9%	6.5%	2.2%	6.5%	4.7%	8.0%
Net return on tangible equity (%)	4.0%	6.7%	2.2%	6.7%	4.9%	8.3%

Private and Small-Business Customers

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	FY 2022	Q1 2023
Total underlying revenues	1,475	1,519	1,067	1,480	5,540	1,496
Exceptional items	-7	21	-275	-11	-272	7
Total revenues	1,467	1,540	791	1,469	5,268	1,503
o/w Net interest income	808	986	1,023	1,125	3,942	1,092
o/w Net commission income	640	586	535	484	2,245	592
o/w Net fair value result	55	-47	-38	-49	-79	-34
o/w Other income	-36	15	-728	-92	-841	-147
o/w Dividend income	-	4	13	2	19	-
o/w Net income from hedge accounting	-	1	-12	10	-2	-
o/w Other financial result	-5	-5	-270	-14	-294	-12
o/w At equity result	-1	-1	3	4	5	-
o/w Other net income	-30	16	-462	-93	-569	-134
Risk result	-72	-88	-90	-141	-392	-128
Operating expenses	821	828	821	946	3,416	846
Compulsory contributions	171	143	88	58	460	140
Operating result	404	481	-207	323	1,000	390
Total Assets	168,321	168,145	169,140	170,749	170,749	172,229
Liabilities	203,033	204,423	206,145	210,294	210,294	208,604
Average capital employed	6,661	6,844	6,737	6,669	6,724	6,804
(end period) RWA credit risk of	42,157	41,586	40,862	39,699	39,699	39,857
RWA market risk (end of period)	908	802	850	575	575	598
RWA operational risk (end of period)	11,465	11,644	11,577	13,343	13,343	13,289
RWA (end of period)	54,529	54,033	53,289	53,616	53,616	53,744
Cost/income ratio (excl. compulsory contributions) (%)	55.9%	53.8%	103.7%	64.4%	64.8%	56.3%
Cost/income ratio (incl. compulsory contributions) (%)	67.6%	63.0%	114.8%	68.4%	73.6%	65.6%
Operating return on CET1 (RoCET) (%)	24.2%	28.1%	-12.3%	19.4%	14.9%	22.9%
Operating (%) return on tangible equity	22.9%	26.3%	-11.5%	18.3%	14.0%	21.9%
Provisions for legal risks of CHF loans of mBank	-41	-40	-477	-92	-650	-173
Operating on CHF result ex legal provisions loans	445	521	270	415	1,651	563

PSBC Germany | Part of segment Private and Small-Business Customers

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	FY 2022	Q1 2023
Total underlying revenues	1,066	1,117	1,074	1,057	4,313	1,154
Exceptional items	-6	22	-5	-4	7	-7
Total revenues	1,060	1,139	1,069	1,052	4,320	1,147
o/w Net interest income	491	585	550	619	2,245	604
o/w Net commission income	539	495	451	418	1,904	511
o/w Net fair value result	22	3	4	9	37	8
o/w Other income	8	55	64	6	133	24
o/w Dividend income	-	3	13	2	18	-
o/w from Net income hedge accounting	-	-	-	-	-	-
o/w Other financial result	-	-	-	1	1	-
o/w At equity result	-1	-1	3	4	5	-
o/w Other income net	8	52	48	-	109	25
Risk result	-17	-46	-52	-102	-218	-91
Operating expenses	689	691	692	805	2,877	703
Compulsory contributions	84	23	4	22	134	64
Operating result	270	378	320	122	1,091	290
Total Assets	124,960	125,571	126,975	126,178	126,178	126,024
Liabilities	160,355	162,229	164,263	166,273	166,273	162,789
Average capital employed	3,882	4,049	4,018	4,015	3,983	4,118
RWA credit risk (end of period)	24,584	24,146	24,257	23,611	23,611	23,522
RWA market risk (end of period)	449	466	492	245	245	247
(end period) RWA operational risk of	7,361	7,455	7,382	8,685	8,685	8,676
RWA (end of period)	32,394	32,067	32,131	32,541	32,541	32,445
Cost/income (excl. contributions) (%) ratio compulsory	65.0%	60.7%	64.7%	76.5%	66.6%	61.2%
Cost/income ratio (incl. compulsory contributions) (%)	73.0%	62.7%	65.1%	78.7%	69.7%	66.8%
Operating on CET1 (RoCET) (%) return	27.8%	37.3%	31.9%	12.2%	27.4%	28.1%
Operating on tangible equity (%) return	27.2%	36.5%	31.2%	12.1%	26.8%	27.8%

mBank | Part of segment Private and Small-Business Customers

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	FY 2022	Q1 2023
Total underlying revenues	409	402	-7	423	1,227	342
Exceptional items	-1	-1	-271	-7	-279	14
Total revenues	408	402	-278	417	948	356
o/w Net interest income	317	400	473	506	1,697	488
o/w Net commission income	101	90	84	66	341	81
o/w Net fair value result	33	-49	-42	-57	-116	-42
o/w Other income	-44	-40	-792	-98	-974	-171
o/w Dividend income	-	1	-	-	1	-
o/w Net income from hedge accounting	-	1	-12	10	-2	-
o/w Other financial result	-5	-5	-270	-15	-295	-12
o/w At equity result	-	-	-	-	-	-
o/w Other net income	-38	-36	-510	-93	-678	-159
Risk result	-55	-41	-38	-39	-174	-37
Operating expenses	132	138	129	141	539	143
Compulsory contributions	87	119	83	36	326	76
Operating result	134	103	-528	201	-90	100
Total Assets	43,361	42,574	42,164	44,570	44,570	46,204
Liabilities	42,679	42,193	41,882	44,021	44,021	45,815
Average capital employed	2,780	2,795	2,719	2,654	2,741	2,686
RWA credit risk (end of period)	17,572	17,441	16,604	16,087	16,087	16,334
RWA market risk (end of period)	459	336	358	331	331	351
RWA operational risk (end of period)	4,103	4,189	4,195	4,657	4,657	4,613
RWA (end of period)	22,134	21,965	21,158	21,075	21,075	21,299
Cost/income ratio (excl. compulsory contributions) (%)	32.3%	34.3%	n/a	33.8%	56.8%	40.3%
Cost/income ratio (incl. compulsory contributions) (%)	53.6%	64.0%	n/a	42.5%	91.2%	61.6%
Operating return on CET1 (RoCET) (%)	19.3%	14.8%	-77.7%	30.2%	-3.3%	14.9%
Operating return on tangible equity (%)	17.5%	13.0%	-68.4%	26.9%	-2.9%	13.5%

Corporate Clients

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	FY 2022	Q1 2023
Total underlying revenues	924	900	1,006	993	3,822	1,060
Exceptional items	2	-18	15	-31	-32	18
Total revenues	926	882	1,021	962	3,790	1,078
o/w Net interest income	459	454	521	642	2,076	626
o/w Net commission income	340	318	332	330	1,319	335
o/w Net fair value result	115	103	168	49	436	132
o/w Other income	12	7	-1	-59	-41	-15
o/w Dividend income	-	3	-	2	5	-
o/w from Net income hedge accounting	-9	-7	-2	-1	-18	-
o/w Other financial result	-2	-3	-2	-3	-10	-2
o/w At equity result	1	5	2	-	8	1
o/w Other income net	21	9	2	-57	-26	-14
Risk result	-286	-52	13	-121	-446	54
Operating expenses	532	504	497	627	2,160	514
Compulsory contributions	115	1	2	1	120	78
Operating result	-7	324	535	213	1,065	539
Total Assets	137,696	144,368	144,601	136,696	136,696	135,005
Liabilities	161,361	172,206	173,590	156,187	156,187	161,845
Average capital employed	10,034	9,967	9,959	10,182	10,040	10,393
RWA credit risk (end of period)	69,768	69,570	71,285	72,978	72,978	72,741
(end of period) RWA market risk	6,462	4,980	5,409	4,090	4,090	4,767
RWA operational risk (end of period)	4,311	4,244	4,299	4,534	4,534	4,474
RWA (end of period) continued operations	80,541	78,795	80,994	81,601	81,601	81,983
Cost/income (excl. contributions) (%) ratio compulsory	57.5%	57.2%	48.7%	65.2%	57.0%	47.7%
Cost/income ratio (incl. compulsory contributions) (%)	69.9%	57.3%	48.9%	65.3%	60.1%	55.0%
Operating on CET1 (RoCET) (%) return	-0.3%	13.0%	21.5%	8.4%	10.6%	20.8%
Operating (%) on tangible equity return	-0.3%	12.0%	19.8%	7.7%	9.8%	19.1%

Others & Consolidation

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	FY 2022	Q1 2023
Total underlying revenues	338	-110	-6	-72	151	99
Exceptional items	61	108	80	4	253	-13
Total revenues	399	-2	74	-68	403	86
o/w Net interest income	134	39	77	191	441	229
o/w Net commission income	-11	-9	-17	-9	-46	-11
o/w Net fair value result	183	13	41	-144	93	-170
o/w Other income	93	-44	-28	-107	-85	39
o/w Dividend income	-1	1	1	7	7	-1
o/w Net income from hedge accounting	22	-48	-25	-41	-93	-2
o/w Other financial result	33	-16	-12	6	11	16
o/w At equity result	-	-	-	-	-	-
o/w Other net income	39	20	8	-79	-11	26
Risk result	-106	34	-6	40	-38	6
Operating expenses	86	91	112	-20	268	104
Compulsory contributions	61	1	1	-	63	42
Operating result	147	-60	-45	-8	34	-54
Restructuring expenses	15	25	14	40	94	4
Pre-tax result	132	-84	-60	-48	-60	-58
Total Assets	213,305	216,390	221,905	169,983	169,983	190,123
Liabilities	154,928	152,274	155,911	110,947	110,947	126,907
Average capital employed	7,060	7,177	7,406	7,262	7,238	6,851
RWA credit risk (end of period)	32,858	35,066	32,642	27,797	27,797	30,268
RWA market risk (end of period)	3,063	3,152	3,525	2,394	2,394	2,223
RWA operational risk (end of period)	4,115	4,002	4,014	3,322	3,322	3,311
RWA (end of period)	40,036	42,220	40,181	33,513	33,513	35,802

Commerzbank Group | Exceptional revenue items

€m	Q1 2022	Q2 2022	Q3 2022	Q4 2022	FY 2022	Q1 2023
Exceptional Revenue Items	56	111	-181	-38	-52	13
o/w Net interest income	39	37	4	89	169	-7
o/w Net fair value result	17	48	84	-118	31	9
o/w Other income	-	27	-270	-9	-252	11
o/w FVA, CVA / DVA, AT1 FX effect (NII, NCI, NFVR)	17	48	84	-118	31	9
PSBC Germany	-6	22	-5	-4	7	-7
o/w Net interest income	-6	-5	-5	-4	-20	-7
o/w Net fair value result	-	1	-	-	-	-
o/w Other income	-	27	-	-	27	-

o/w Net interest income	-6	-5	-5	-4	-20	-7
o/w Net fair value result	-	1	-	-	-	-
o/w Other income	-	27	-	-	27	-
o/w FVA, CVA / DVA (NII, NFVR)	-	1	-	-	-	-
mBank	-1	-1	-271	-7	-279	14
o/w Net fair value result	-1	-1	-1	2	-1	3
o/w Other income	-	-	-270	-9	-278	11
o/w FVA, CVA / DVA (NII, NFVR)	-1	-1	-1	2	-1	3
CC	2	-18	15	-31	-32	18
o/w Net fair value result	2	-18	15	-31	-32	18
o/w FVA, CVA / DVA (NII, NFVR)	2	-18	15	-31	-32	18
O&C	61	108	80	4	253	-13
o/w Net interest income	45	42	9	93	189	-
o/w Net fair value result	16	66	70	-89	63	-13
o/w FVA, CVA / DVA, AT1 FX effect (NII, NCI, NFVR)	16	66	70	-89	63	-13

Description of Exceptional Revenue Items

2022		€m 2022	€m 2023	€m
Q1 PPA Consumer Finance (PSBC)	-6	Q4 TLTRO benefit (O&C)	93 Q1 PPA Consumer Finance (PSBC)	-7
Q1 TLTRO benefit (O&C)	45	Q4 Credit holidays in Poland (PSBC)	-9 Q1 Credit holidays in Poland (PSBC)	11
Q2 PPA Consumer Finance (PSBC)	-5
Q2 TLTRO benefit (O&C)	42
Q2 Prov. re judgement on pricing of accounts (PSBC)	27
Q3 PPA Consumer Finance (PSBC)	-5
Q3 TLTRO benefit (O&C)	9
Q3 Credit holidays in Poland (PSBC)	-270
Q4 PPA Consumer Finance (PSBC)	-4

Glossary – Key ratios

Key Ratio	Abbreviation Calculated for		Numerator	Denominator
				Group	Private and Small Business Customers and Corporate Clients Others & Consolidation
Cost/income ratio (excl. compulsory contributions) (%)	CIR (excl. compulsory contributions) (%)	Group as well as segments PSBC and CC	Operating expenses	Total revenues	Total revenues	n/a
Cost/income ratio (incl. compulsory contributions) (%)	CIR (incl. compulsory contributions) (%)	Group as well as segments PSBC and CC	Operating expenses and compulsory contributions	Total revenues	Total revenues	n/a
Operating return on CET1 (%)	Op. RoCET (%)	Group and segments (excl. O&C)	Operating profit	Average CET1¹	12.7% ² of the average RWAs (YTD: PSBC Germany €32.5bn, mBank €21.1bn, CC €81.7bn)	n/a (note: O&C contains the reconciliation to Group CET1)
Operating return on tangible equity (%)	Op. RoTE (%)	Group and segments (excl. O&C)	Operating profit	Average IFRS capital after deduction of intangible assets ¹	12.7% ² of the average RWAs plus average regulatory capital deductions (excluding intangible assets) (YTD: PSBC Germany €0.1bn, mBank €0.3bn, CC €0.9bn)	n/a (note: O&C contains the reconciliation to Group tangible equity)
Return on equity of net result (%)	Net RoE (%)	Group	Consolidated Result attributable to Commerzbank shareholders and investors in additional equity components after pay-out accrual (if applicable) and after deduction of potential (fully discretionary) AT1 coupon	Average IFRS capital without non controlling interests and without additional equity components ¹	n/a	n/a
Net return on tangible equity (%)	Net RoTE (%)	Group	Consolidated Result attributable to Commerzbank shareholders and investors in additional equity components after pay-out accrual (if applicable) and after deduction of potential (fully discretionary) AT1 coupon	Average IFRS capital without non controlling interests and without additional equity components after deduction of intangible assets (net of tax) ¹	n/a	n/a
Non-Performing Exposure ratio (%)	NPE ratio (%)	Group	Non-performing exposures	Total exposures according to EBA Risk Dashboard	n/a	n/a
Cost of Risk (bps)	CoR (bps)	Group	Risk Result	Exposure at Default	n/a	n/a
Cost of Risk on Loans (bps)	CoRL (bps)	Group	Risk Result	Loans and Advances [annual report note (25)]	n/a	n/a

Key Parameter	Calculated for	Calculation
Total underlying revenues	Group and segments	Total revenues excluding exceptional revenue items
Underlying Operating Performance	Group and segments	Operating result excluding exceptional revenue items and compulsory contributions

1) reduced by potential pay-out accrual and potential (fully discretionary) AT1 coupon

2) charge rate reflects current regulatory and market standard

For more information, please contact our IR team

mail: ir@commerzbank.com / internet: Commerzbank AG – Investor Relations

Disclaimer

This presentation contains forward-looking statements. Forwardlooking statements are statements that are not historical facts; they include, inter alia, statements about Commerzbank's beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates, projections and targets as they are currently available to the management of Commerzbank. Forward-looking statements therefore speak only as of the date they are made, and Commerzbank undertakes no obligation to update any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, among others, the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which Commerzbank derives a substantial portion of its revenues and in which it hold a substantial portion of its assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives and the reliability of its risk management policies.

In addition, this presentation contains financial and other information which has been derived from publicly available information disclosed by persons other than Commerzbank ("external data"). In particular, external data has been derived from industry and customer-related data and other calculations taken or derived from industry reports published by third parties, market research reports and commercial publications. Commercial publications generally state that the information they contain has originated from sources assumed to be reliable, but that the accuracy and completeness of such information is not guaranteed and that the calculations contained therein are based on a series of assumptions. The external data has not been independently verified by Commerzbank. Therefore, Commerzbank cannot assume any responsibility for the accuracy of the external data taken or derived from public sources.

Copies of this document are available upon request or can be downloaded from Quarterly Results – Commerzbank AG