Commerzbank AG — Investor Presentation 2022

Feb 17, 2022

Successful first transformation year – positive net result

Analyst conference – Q4 2021 / FY 2021 preliminary and unaudited results

17 February 2022 Commerzbank, Manfred Knof, CEO & Bettina Orlopp, CFO, Frankfurt All figures in this presentation are subject to rounding

Manfred Knof CEO

Commerzbank on track

Financial year 2021 better than expected –positive net result despite significant extraordinary burdens

Strategy implementation progressing well – major milestones reached

Positive outlook for 2022 – clear perspective to resume dividend payments

Strong delivery in 2021

Operating result includes €600m reserves for CHF loans and covers restructuring charges of €1.1bn

Revenues increased by 3%

Thorough risk management in pandemic – risk provisioning reduced by 67%

Costs actively reduced – cost target excluding Q2 one-off met

Major transformation milestones reached

Business model transformation

PSBC's first 3 advisory centers operational

CC's Mittelstand division with first 1,000 customers in digital direct bank coverage model

FTE reduction

6,000 FTE reduction of 10,000 FTE target already locked-in

Branch network optimisation

Reduction of ~250 domestic branches

Closure of 6 international locations and sale of 1 subsidiary signed

Capital efficiency

Low yielding client business (RWA efficiency <3%) in CC reduced from 34% to 29%

Leap forward on sustainability

Active support of clients in their green transformation

Key take-aways

✓

✓

✓ Delivered good financial performance in 2021

Delivered promised transformation progress in 2021

Confident to reach 2022 to 2024 targets

We expect a net result >€1bn and intend to pay a dividend for FY 2022

Capital return policy with attractive future pay-outs

Key elements

Dividend payment of 30% of net profits in 2022 intended

30% to 50% pay-out of net profits thereafter

Share buyback considered as part of pay-out ratio or additional payment

Capital Return Policy

• Commerzbank intends to propose the payment of a dividend with a pay-out ratio of 30% to 50% of the IFRS net profits*.
• If the targets for the financial year 2022 are achieved, Commerzbank intends to propose a dividend payment of 30% of the IFRS net profits* already for 2022.
• Prerequisite for a dividend is a CET1 ratio that is at least 200 basis points above the MDA after dividend payment.
• Subject to the further successful execution of Strategy 2024 and a regulatory approval, share buybacks can be considered as part of the pay-out ratio or as an additional payment.
• The dividend policy reflects the current targets of the management board and the supervisory board and may be amended in future. Every year, a prerequisite for a dividend payment is a corresponding proposal by the managing board and the supervisory board.
• A dividend needs the approval of the shareholders at the Annual General Meeting (AGM). Buy-backs can be implemented within the framework that has been approved by the AGM.

* after deduction of AT1 coupon payments and minority interests

Bettina Orlopp CFO

Q4 with good operating performance

Operating result of €141m in Q4 and €1,183m FY

Q4 net result of €421m includes tax gain of €199m

FY net result €430m

Increase in underlying NII by 5% YoY

Increase in underlying NCI by 10% YoY

CommerzVentures contributed €135m in Q4

Increase in provisions for CHF loans by €436m – total provisions at €899m

Q4 costs of €1,646m and FY costs of €6,706m in line with target excluding Q2 one-off

Q4 risk result of €313m and FY €570m

Overall level of Top Level Adjustment (TLA) increased slightly to €523m

NPE ratio at low 0.9%

CET1 ratio further strengthened to 13.6%

Buffer to MDA further increased to ~420bp

Strong operating result and CET1 ratio in 2021

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

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

Exceptional revenue items reflect TLTRO & participation

2020 (€m)			Revenues	2021 (€m)			Revenues
Q1	Hedging & valuation adjustments PPA Consumer Finance (PSBC)	-160 -13	-172	Q1	Hedging & valuation adjustments PPA Consumer Finance (PSBC) TLTRO benefit (O&C)	67 -9 126	184
Q2	Hedging & valuation adjustments PPA Consumer Finance (PSBC) Fine UK Financial Conduct Auth. (CC)	49 -12 -41	-5	Q2	Hedging & valuation adjustments PPA Consumer Finance (PSBC) TLTRO benefit (O&C) Prov. re judgement on pricing of acc. (PSBC)	10 -8 42 -66	-22
Q3	Hedging & valuation adjustments PPA Consumer Finance (PSBC)	-51 -11	-62	Q3	Hedging & valuation adjustments PPA Consumer Finance (PSBC) Prov. re judgement on pricing of acc. (PSBC)	32 -8 -33	-9
Q4	Hedging & valuation adjustments PPA Consumer Finance (PSBC)	-9 -10	-19	Q4	Hedging & valuation adjustments PPA Consumer Finance (PSBC) TLTRO benefit (O&C) Valuation of participation (PSBC)	31 -7 95 116	235
FY			-258	FY			388

17 February 2022

Commerzbank, Bettina Orlopp, CFO, Frankfurt 11

Revenues and adjusted revenues above 2020 level

Highlights

Positive trend in underlying customer business in 2021 drives improved adjusted revenues

CommerzVentures with second year of strong contributions (main contributions in 2021 from investments in Marqeta, Bought By Many and Mambu)

Significant increase of provisions for CHF loans at mBank – total provisions stand at €899m

Strong NCI from securities business

Underlying net commission income (€m)

Highlights Q4

NCI in PSBC (+12% YoY) reflects strong securities business in Germany continuing to benefit from increased securities volume in custody

Commission income in CC reflects increased contribution from payments and FX business

Increased underlying net interest income in Q4

Highlights Q4

Increased NII in PSBC Germany with higher contributions from the loan business and also deposits due to increased deposit pricing

mBank benefits from increased interest rates in Poland

Better NII in CC with higher contributions from deposits and stable contributions from loans

TLTRO benefits (€126m in Q1, €42m in Q2, €95m in Q4) reported as exceptional revenue items

Forward rates imply increasing NII

Change in NII vs. 2021 from EUR deposits at CC and PSBC Germany

(€m – based on forward curves as of 4 Feb. 2022)

Change in NII vs. 2021 at mBank

(€m – based on 225bp PLN reference rate as of 4 Feb. 2022)

Additional notes

In EUR constant deposit volumes and no deposit beta after leaving negative rates assumed in scenario calculation

Priced EUR deposits volumes assumed constant – charging reduced in line with rates level

In CC initially smaller net impact of forward curve on NII due to high volume of priced deposits

Sensitivity to USD rates is only minor due to low volume of modelled deposits

In mBank constant volumes and FX rate assumed in scenario calculation

In calculation no effects included for further 50bp increase of PLN reference rate on 9 Feb.

Deposit beta so far low in Poland

Group with good results in Q4 and FY 2021

Group operating result (€m)

Group P&L

in €m	Q4 2020	Q3 2021	Q4 2021	FY 2020	FY 2021
Revenues	2,029	2,006	2,099	8,186	8,459
Exceptional items	-19	-9	235	-258	388
Revenues excl. exceptional items	2,047	2,015	1,864	8,444	8,071
o/w Net interest income	1,154	1,146	1,211	4,996	4,617
o/w Net commission income	837	873	924	3,320	3,616
o/w Net fair value result	196	129	188	342	725
o/w Other income	-140	-132	-459	-213	-886
Risk result	-681	-22	-313	-1,748	-570
Operating expenses	1,609	1,485	1,581	6,160	6,239
Compulsory contributions	67	27	65	512	467
Operating result	-328	472	141	-233	1,183
Impairments on goodw ill and other intangible assets	1,578	-	-	1,578	-
Restructuring expenses	614	76	26	814	1,078
Pre-tax profit discontinued operations	-10	-	-	30	-
Pre-tax profit Commerzbank Group	-2,530	396	115	-2,597	105
Taxes on income	199	-6	-199	264	-248
Minority interests	-26	-1	-107	9	-77
Net result	-2,702	403	421	-2,870	430
CIR (excl. compulsory contributions) (%)	79.3	74.0	75.3	75.2	73.8
CIR (incl. compulsory contributions) (%)	82.6	75.4	78.4	81.5	79.3
Net RoTE (%)	-44.0	5.8	6.0	-11.7	1.0
Operating RoCET (%)	-5.4	7.9	2.4	-1.0	5.0

Highlights Q4

YoY increase in operating result driven by solid customer revenues and lower risk result

QoQ lower operating result due to risk result and increase of provisions for CHF loans in Poland

Underlying NII increased by 5% and underlying NCI by 10% YoY based on strong customer business

Other income mainly reflects provisions for CHF loans in Poland

NFV result benefits from investment valuations of CommerzVentures

Positive tax mainly due to improved outlook and respective DTAs

Strict cost management

Compulsory contributions (€m)

Highlights

Personnel expenses benefit from a ~1,200 net FTE reduction YoY to 38,298 – partly offset by wage adjustments and higher variable compensation. In addition, ~1,600 FTE left the bank on 1 January 2022 via voluntary programs

Decrease in administrative expenses for advertising, regular depreciation and travel

Reduced compulsory contributions due to usage of payment commitments

~€570m investment spending on digitalisation, IT infrastructure and regulatory topics

Total expenses burdened by one-time write-off for the discontinuation of securities outsourcing project in Q2

Risk result of €570m significantly below previous year

Risk result (€m)

Risk result divisional split

Risk Result in €m	Q4 2020	Q3 2021	Q4 2021	FY 2020	FY 2021
Private and Small Business Customers	-118	1	-194	-562	-319
Corporate Clients	-505	-29	-81	-1,081	-149
Others & Consolidation	-57	6	-38	-106	-101
Group	-681	-22	-313	-1,748	-570
NPE in €bn
Private and Small Business Customers	2.0	1.9	1.8	2.0	1.8
Corporate Clients	2.3	2.2	2.1	2.3	2.1
Others & Consolidation	0.4	0.2	0.2	0.4	0.2
Group	4.8	4.3	4.2	4.8	4.2
Group NPE ratio (in %)	1.0	0.8	0.9	1.0	0.9
Group CoR (bps)	37	7	12	37	12
Group CoR on Loans (CoRL) (bps)	68	13	22	68	22

Highlights Q4

Q4 risk result of €313m includes €99m IFRS9 parameter update and net €27m increase of Top Level Adjustment (TLA)

€187m risk result excluding these effects

TLA increased by €42m in PSBC and reduced by €14m in CC – in total €523m TLA available to cover future effects of pandemic

IFRS9 parameter update effect of €59m in PSBC, €21m in CC and €19m in O&C

Remaining risk result (excluding TLA and IFRS9 effects) of €74m in CC due to a few single cases – €93m in PSBC mainly due to mBank (€78m)

PSBC: good growth & expansion of deposit pricing

Highlights Q4

Increase in securities volume from inflow of €4bn net new money

Successful stabilisation of deposit volume at €147bn

German mortgage business up 7% YoY to €92bn Continued increase of priced deposits to €18bn

Consumer finance book at €3.8bn

17 February 2022

Increased revenues from customer business in PSBC

Segmental P&L PSBC

in €m	Q4 2020	Q3 2021	Q4 2021	FY 2020	FY 2021
Revenues	1,133	1,177	1,059	4,778	4,694
Exceptional items	-9	-43	109	-47	-14
Revenues excl. exceptional items	1,142	1,220	950	4,825	4,708
o/w Private Customers	682	734	765	2,788	2,959
o/w Small Business Customers	203	212	217	824	840
o/w mBank	220	223	-99	1,025	687
o/w Commerz Real	37	51	68	187	222
Risk result	-118	1	-194	-562	-319
Operating expenses	920	850	914	3,515	3,482
Compulsory contributions	63	27	64	331	318
Operating result	32	300	-113	370	575
RWA (end of period in €bn)	47.2	53.5	53.4	47.2	53.4
CIR (excl. compulsory contributions) (%)	81.2	72.3	86.4	73.6	74.2
CIR (incl. compulsory contributions) (%)	86.8	74.6	92.4	80.5	81.0
Operating return on equity (%)	2.2	18.8	-7.1	6.5	9.3
Provisions for CHF loans of mBank	-113	-95	-436	-229	-600
Operating result ex provisions for CHF loans	145	395	323	599	1,175

Highlights Q4

Excluding provisions for CHF loans, YoY 10% (€131m) increase in underlying revenues with 14% better revenues in the German operations due to strong securities business and loan growth

Net reduction of customer base in Germany by 67k in Q4 – customer and revenue churn below expectation

mBank YoY with strong growth in NCI (15%) and NII (25%) but burdened by high provisions for CHF loans – outstanding volume of CHF loans at €2.0bn and provisions at €899m

CC: ongoing active deposit management

Loan volume Corporates

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

Deposits (quarterly avg. €bn)

Highlights Q4

Quarterly average loan volume largely stable – increased demand for investment loans in Q4

Significant deposits' reduction driven by active YE deposit management in Mittelstand and Institutionals – in particular for FX and term deposits

Average RWA efficiency of corporates portfolio further improved to 5.2% (4.6% 2020)

CC with improved customer revenues

Segmental P&L CC

in €m	Q4 2020	Q3 2021	Q4 2021	FY 2020	FY 2021
Revenues	759	776	795	3,056	3,168
Exceptional items	12	15	12	-101	56
Revenues excl. exceptional items	747	761	782	3,157	3,113
o/w Mittelstand	415	437	462	1,717	1,771
o/w International Corporates	201	201	212	904	827
o/w Institutionals	132	135	130	526	511
o/w others	-2	-12	-21	9	5
Risk result	-505	-29	-81	-1,081	-149
Operating expenses	590	531	615	2,327	2,267
Compulsory contributions	2	-	1	113	96
Operating result	-339	216	97	-465	656
RWA (end of period in €bn)	88.5	79.2	81.0	88.5	81.0
CIR (excl. compulsory contributions) (%)	77.7	68.4	77.4	76.2	71.6
CIR (incl. compulsory contributions) (%)	78.1	68.4	77.6	79.8	74.6
Operating return on equity (%)	-12.4	8.9	4.1	-4.1	6.6

Highlights Q4

Mittelstand with improved revenues from lending, transaction banking and capital markets

International Corporates with improved transaction banking and capital markets revenues compensating reduced contributions from loan business in line with strategy

YoY €8bn lower RWA mainly driven by €4bn lower credit RWA and €2bn lower operational risk RWA

O&C result in line with expectations

Operating result

Segmental P&L O&C

in €m	Q4 2020	Q3 2021	Q4 2021	FY 2020	FY 2021
Revenues	137	53	246	353	597
Exceptional items	-22	19	114	-110	346
Revenues excl. exceptional items	158	34	132	463	250
o/w Net interest income	90	63	48	645	301
o/w Net commission income	-9	-18	-11	-38	-55
o/w Net fair value result	85	46	93	-100	273
o/w Other income	-8	-56	3	-44	-269
Risk result	-57	6	-38	-106	-101
Operating expenses	99	104	51	317	490
Compulsory contribution	1	-	-	68	53
Operating result	-21	-45	157	-139	-48
RWA (end of period in €bn)	42.9	42.6	40.8	42.9	40.8

Highlights Q4

Operating result driven by TLTRO and positive valuations at CommerzVentures

Lower underlying NII offset by better underlying NFV

Robust CET1 ratio of 13.6% and buffer to MDA of ~420bp

Highlights

Credit RWA €1.5bn lower QoQ driven by reduced volumes

YoY RWA reduction was driven by strategy related €4bn decrease in credit RWAs of CC

Increased capital in Q4 – positive contribution from net result partly offset by decreased other comprehensive income and increased capital deductions

Objectives and expectations for 2022

Note: Expectations are based on the assumption that there are no material additional provisions for the CHF loan portfolio at mBank in 2022

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

Appendix

2021 Strategy KPI	28
German economy	29
Corona and risk related information
KfW loan demand	30
Commerzbank's risk provisions related to stages	31
Retail, Travel related industries and Automotive & mechanical engineering	32-34
Residential mortgage business	35

Corporate responsibility

Renewable energy portfolio	36
Sustainable products target	37
ESG ratings	38

Commerzbank Group		P&L tables
Commerzbank financials at a glance	39
Key figures Commerzbank share	40
Loan and deposit volumes	41
Scenario: NII sensitivity	42
Funding & rating
Commerzbank's MREL requirements	43
Distance to MDA	44
Capital markets funding	45
Rating overview	46
Capital management
IAS 19: Pension obligations	47
FX impact on CET1 ratio	48

Commerzbank Group	50
Private and Small Business Customers	51
mBank	52
Corporate Clients	53
Others & Consolidation	54
Exceptional revenue items by segment	55
Glossary	56
Contacts & Financial calendar	57
Disclaimer	58

Group equity composition 49

2021 Strategy KPIs

	KPI	YE 2020	9M 2021	YE 2021	Target 2021
	Domestic locations (#)	~800 (thereof ~600 open to customers)	~800 (550 expected at YE)	~550 (all open to customers)	600
	Active digital banking users (%)	66	69	70	67
PSBC	Loan and securities volumes (GER €bn)	290	325	340	310
	Net FTE reduction1 vs. YE 2020 (#)	-	493 (~1,700 locked in)	1,728	1,100
	International locations exited (#)	-	4	6	3
CC	Digital banking users activated (%)	-	in preparation	24	10
	Portfolio with RWA efficiency < 3% (%)	34	30	29	32
	Net FTE reduction1 vs. YE 2020 (#)	-	244 (~400 locked in)	451	300
	IT capacity in nearshoring locations (%)	14	18	20	20
Operations & Head Office	Apps on cloud (%)	32	36	41	50 (~6M delayed)
	Reduction of external staff (#)		Reduction starts 2023
	Net FTE reduction1 vs. YE 2020 (#)	-	293 (~450 locked in)	585	100

1) FTE numbers as of 1 January 2022

German economy 2022 – Upswing stutters

2016 2017 2018 2019 2020 2021 2022e 2023e

Current development

The significant rise in Corona infection figures since last fall and the restrictions imposed again as a result have noticeably slowed down the German economy. After a strong recovery in Q2 and Q3 of last year, it contracted again in the final quarter of 2021.

Services, in particular, suffered from the latest two waves of infection. By contrast, the manufacturing sector has recently been able to increase its output again somewhat despite continuing supply bottlenecks. The increase was especially pronounced in the auto sector, although many auto makers continue to complain of a persistent shortage of intermediate products and raw materials.

Partly as a result of these supply bottlenecks, the inflation rate has risen sharply in recent months. In January, at 4.9%, it was still close to the 20-years high reached in the month before.

The situation on the labor market has improved further, with many companies creating new jobs again. However, despite a steady decline over the past year, the seasonally adjusted number of unemployed was still more than 100 thousand higher than before the crisis. In addition, there are probably still almost 900 thousand people working short-time.

Our expectation for 2022

In the first quarter of this year, the German economy may continue to contract, albeit only slightly. This is because the negative impact of the high infection figures on the service sector will probably last for a longer period. In addition, industrial production is unlikely to grow much due to continuing supply bottlenecks.

From spring onwards, however, the German economy is likely to pick up again strongly as the pandemic subsides for the usual seasonal reasons. In addition, the problems in the supply chains should gradually be overcome. Support will also come from the continued expansionary monetary and fiscal policy.

Real GDP is expected to return to its pre-crisis level by mid-year. On average for the year it is expected to increase by 3%.

Inflation will probably stay high for most of 2022. Energy prices will increase further, and more and more firms will hike prices because of the strong demand and rising input costs.

In the Eurozone, the inflation rate will probably stay high for the time being, too. As a consequence, we expect the ECB to terminate its asset purchases in the fall and to hike its deposit rate by a total of 50 basis points until the end of the year.

Continued moderate demand for KfW loans by customers

Government guaranteed loans (€bn Germany)

0.0 0.7 1.1 1.4 1.8 2.2 2.3 2.5 0.7 Jun 20 Mar 21 0.3 Apr 20 0.4 Sep 20 Dec 20 Jun 21 0.5 Sep 21 Dec 21 0.3 1.2 1.5 1.8 2.2 2.6 2.9 3.1 0.4 0.4 0.4 0.5 Approved Drawn KfW direct loans 1

0.6 0.7 0.9 0.9 0.9 0.9 0.9 3.9 0.7 1.3 1.8 2.0 2.2 2.2 2.2 3.1 3.3 3.3 3.2 3.2 3.5 3.8 Apr 20 0.2 Jun 20 Sep 20 Dec 20 4.5 Mar 21 Jun 21 Sep 21 Dec 21 4.1 5.3 5.9 6.0 6.3 6.6 6.8 PSBC CC

Highlights Q4

In Q4 continued moderate drawings of small business customers in PSBC for KfW loans

No increase in drawings in CC Application for new KfW loans possible until 30 April 2022

1) CBK share of KfW direct syndicated loans without CBK risk

Improved risk coverage in all stages

Exposure¹

(€bn, excluding mBank)

Risk provisions

(€m, excluding mBank)

Highlights Q4

Decrease of exposure in Q4 2021 mainly in stage 1

Increase of risk provisions in stage 2 and stage 3

After review and inclusion of secondary effects, overall level of TLA slightly increased to €523m

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)

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

Stage 1 Stage 2 Stage 3 TLA

17 February 2022

Retail industry

Portfolio increased by €1.2bn in Q4 – share of 1.6% of overall portfolio

• Overall stable sector due to high proportion of food retailing and drugstores (food retailing with 10-15% non food revenues). Top 10 borrower units represent 59% of sector EaD
• Retail industry: fierce predatory competition in all segments by price and investments in shop modernisation. Online is gaining market share at the expense of the stationary retailer. Since we seethe customers of the future as "hybrid", omnichannel can be the answer to the concept question
• In the current Omicron crisis situation: food retailing still winner due to stay-at-home effect and access restrictions of competitors in non food. Fashion: most severely affected. Winter and Christmas business were again affected in December. Due to 2G (plus) rules, shops remain open but the frequency decreases. For this reason sales decreases. Costs continue unchanged. Still home improvement/DIY/consumer electronics/sports benefit from "cocooning impact", shift in consumer preferences and working from home
• Liquidity: still satisfactory
• Future risks are rising prices for raw materials, energy and logistics costs; interruption of the supply chain and cyber risk attacks

Travel related industries

Portfolio slightly increased by €0.1bn in Q4 – share of only 0.9% of overall portfolio

• Airlines (€ 2.2bn): Portfolio consists of €1.8bn secured aircraft financing and €0.4bn corporate exposure. Corona has hit the airline industry in an unprecedented extent. The crisis has a sustainable impact, but signs of recovery in 2021 show that the general global trend for travel and mobility should be intact once the situation has improved. Full rebound is uncertain, but currently expected to take until 2024
• Cruise liners (€0.7bn): The cruise industry just restarted operations in summer 2021 from US ports with signs of quick recovery. However, the spread of Omicron resulted in headwinds for the industry. The three major cruise lines experience a slight drop in short term bookings, while bookings for Q2/2022 onwards appear to be unaffected and remain strong on pre-pandemic levels. Another no-sail order by the CDC is not to be expected. Though, single destinations in the Caribbean restricted their access for cruise ships. Cruise lines are rescheduling their itineraries accordingly. Cancellations occurred in some cases, mostly if an increased number of crew members got infected. However, cases on board remain a minority
• Hotels (€0.7bn): Most hotels have reopened since lift of lockdown. Recovery is expected through the implementation of 2G/3G-concepts and increasing vaccination rates. From Q2/Q3 return to pre-Corona level seems realistic for leisure hotels, while business hotels will suffer longer from negative Corona impact and existing project pipeline (oversupply)
• Tour operators (€0.4bn): High Corona impact, however partly mitigated by strong support from the state through KfW loans and non-repayable bridging aid. We are currently seeing a recovery in the market, which will nevertheless depend on the further course of the pandemic. Reaching the pre-Corona level is not expected until 2023 at the earliest

Automotive & mechanical engineering

Portfolio unchanged at €18.5bn – share of 3.9% of overall portfolio

Automotive (10.7bn): Dominating sub-sectors within portfolio are car parts suppliers (52% EAD) and original equipment manufacturers (OEM; 36% EAD). Major share of complete automotive EaD is rated investment grade (83%)

• Despite ongoing recovery of demand very challenging market environment, high backlog in vehicle production and temporary plant shutdowns, mainly due to global supply shortages for automotive semiconductors but also for other pre-products und raw materials (e.g. aluminum, magnesium, steel, copper and plastic derivatives), which leads to modified call-off orders
• Vulnerable supply chains, rising material prices, increased freight rates and also energy costs are hitting profitability with significant impact on liquidity, mainly at car part supplier side. Meanwhile, requirements caused by strong transformation process (switch from combustion engine to e-mobility), in which most of the market participants are in midst of, are remaining
• The overall disrupting impact on the whole production process threatens the recovery of the automotive sector, whose return to pre-crisis level is not expected before 2023

Mechanical engineering: Overall stable sector due to highly diversified portfolio with different impact of Corona induced crisis on portfolio subgroups. Biggest subgroup machine tools representing less than 10% of all client groups and top 10 clients approx. 20% of EaD

• Difficult market even before Corona in subsectors with high exposure to automotive sector but for sector as a whole no severe impact expected due to well-filled order books, improving order income in recent months and sufficient liquidity
• Market environment recovered from Q4/2020 onwards. However, shortage of raw materials are having a negative impact on the overall sector and threaten recovery

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

• Growing mortgage volume with unchanged risk quality:
• − 12/17: EaD €75.2bn RD 9bp
• − 12/18: EaD €81.0bn RD 9bp
• − 12/19: EaD €86.6bn RD 8bp
• − 12/20: EaD €95.1bn RD 7bp
• − 12/21: EaD €102.0bn RD 7bp
• Rating profile with a share of 92% in investment grade ratings

• Vintages of recent years developed more favorably so far and NPEs remain at a low level

• Due to risk-oriented selection very low risk density (RD)

• As a consequence of low interest rates, repayment rates remain on a very high level
• Average "Beleihungsauslauf" (BLA) in new business of 81% in Q4 2021. German BLA is more conservative than the internationally used LtV definition due to the application of the strict German Pfandbrief law

Risk parameters unchanged, impact of pandemic so far negligible

Development of renewable energy portfolio

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. 52% of portfolio in Germany

Renewable Energy portfolio

1) MLA = Mandated Lead Arranger

Sustainable products ~88% above FY 2020 level

PSBC ¹⁰³ 194 300 2020 2021 Target 2025 Sustainable products (€bn)

Above-average 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-average positions in terms of private & data security, financial product safety, human capital 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 24.1 / 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 environmental management, social, 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 Score 2, Governance QualityScore 3

Climate Change Rating

E D C B A

● Commerzbank's rating is above-average of

• the financial sector (C)
• Positioned as "Sector Leader Financials" in DACH region (ranked top 15% of financials in Germany, Austria and Switzerland)

Commerzbank financials at a glance

Group		Q4 2020	Q3 2021	Q4 2021	FY 2020	FY 2021
Total revenues	€m	2,029	2,006	2,099	8,186	8,459
Risk result	€m	-681	-22	-313	-1,748	-570
Personnel expenses	€m	903	886	862	3,500	3,464
Administrative expenses (excl. depreciation)	€m	466	379	492	1,712	1,686
Depreciation	€m	240	220	226	948	1,089
Compulsory contributions	€m	67	27	65	512	467
Operating result	€m	-328	472	141	-233	1,183
Net result	€m	-2,702	403	421	-2,870	430
Cost/income ratio (excl. compulsory contributions)	%	79.3	74.0	75.3	75.2	73.8
Cost/income ratio (incl. compulsory contributions)	%	82.6	75.4	78.4	81.5	79.3
Accrual for potential AT1 coupon distribution current year	€m	-40	-49	-49	-108	-182
Net RoE	%	-40.5	5.6	5.8	-10.7	1.0
Net RoTE	%	-44.0	5.8	6.0	-11.7	1.0
Total assets	€bn	507	541	473	507	473
Loans and advances (amortised cost)	€bn	261	265	268	261	268
RWA	€bn	179	175	175	179	175
CET1 ratio¹	%	13.2	13.5	13.6	13.2	13.6
Total capital ratio (with transitional provisions)¹	%	17.7	18.4	18.4	17.7	18.4
Leverage ratio (with transitional provisions)¹	%	4.9	4.6	5.2	4.9	5.2
NPE ratio	%	1.0	0.8	0.9	1.0	0.9
Group CoR	bps	37	7	12	37	12
Group CoR on Loans (CoRL)	bps	68	13	22	68	22
Full-time equivalents excl. junior staff (end of period)²		39,462	38,432	36,697	39,462	36,697

1) Capital reduced by dividend accrual if applicable and potential (fully discretionary) AT1 coupons

2) Q4 2021 and FY 2021: FTE numbers as of 1 January 2022

17 February 2022

Key figures Commerzbank share

Figures per share

(€)

	FY 2019	FY 2020	FY 2021
Number of shares issued (m)	1,252.40	1,252.40	1,252.40
Market capitalisation (€bn)	6.9	6.6	7.2
Net asset value per share (€)	21.381	19.801	20.48
Low/high Xetra intraday prices (€)	4.66/8.26	2.80/6.83	4.70/7.19

Operating result per share EPS

1) Adjustments due to restatements

Loan and deposit development

Highlights

Loan growth in PSBC driven by residential mortgage business and investment loans in Germany

No significant changes in deposit base in Germany while mBank shows slight increase

Increased loan volumes in CC across all sub-segments

Decrease in deposits mainly driven by Institutionals and Mittelstand

Significant NII potential in rising interest rate scenario

Scenario impact on NII from EUR deposits of CC and PSBC Germany (€m)

Highlights

Year 1 effect of ~€400m driven by short-end rates due to stock of overnight (excess) deposits – partially offset by reduced contributions from deposit pricing

Additional year 2-4 effects driven by higher reinvestment yield of modelled deposits used to refinance longer term loans

Note: constant deposit volumes assumed; offsetting effects of deposit pricing until rates turn positive incorporated; deposit beta of zero assumed in scenario

17 February 2022 Commerzbank, Bettina Orlopp, CFO, Frankfurt 42

Comfortable fulfilment of RWA and LRE MREL requirements

MREL Requirement

• Based on data as of 31 December 2021, Commerzbank fulfils the MREL RWA requirement1 of 23.13% plus M-MDA of 3.77% with a MREL ratio of 33.0% and the MREL subordination requirement of 13.62% plus M-MDA of 3.77% with a ratio of 27.4% of RWA
• Both, the MREL LRE ratio of 11.0% and MREL Subordination LRE ratio of 9.2% comfortably meet the requirement of 6.52%, each as of 31 December 2021
• The issuance strategy is consistent with both, RWA and LRE based MPE MREL requirements

• A new MREL requirement is expected within the next review cycle (H1 2022)

• 1) In December 2021, Commerzbank AG received its current MREL requirement calibrated based on data as of 31 Dec. 2019. 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
• 4) Non-covered / non-preferred deposits; preferred senior unsecured

17 February 2022 Commerzbank, Bettina Orlopp, CFO, Frankfurt 43

Commerzbank's current MDA

Distance to MDA based on SREP requirement (transitional) for Q4 2021 (%)

Highlights

418bp distance to MDA based on Q4 2021 CET1 ratio of 13.57% and SREP requirement for 2021

Further regulatory comments:

• Regulatory phase-out of remaining €226m grandfathered AT1 completed at the beginning of 2022
• Tier 2 with moderate maturities and issuance needs in 2022
• Well prepared for upcoming MDA increase due to an activation of CCyBs in UK (Dec 2022 – impact on institution-specific CCyB ~9bp) and Germany (Feb 2023 – impact on institution-specific CCyB ~40bp)
• Potential introduction of a 2% sectoral systemic risk buffer (sSyRB) on RWA from exposure secured by residential properties in Germany would lead to an institutionspecific sSyRB of up to ~20bp

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 €175.2bn as of Q4 2021. AT1 requirement of 1.875% and Tier 2 requirement of 2.5%

Capital markets funding – €3.6bn issued in 2021

Highlights

• Additional Tier 1 capital: €500m perp non-call April 2028 (call period starts October 2027) with 4.25% p.a. coupon
• Tier 2: €500m benchmark transaction 1,375% p.a. 10.25 years non-call 5.25 years (call period starts September 2026)
• Preferred senior: €750m benchmark transaction with maturity September 2025; €700m Floating rate note with maturity November 2023 and inaugural GBP 250m 3 years issuance
• mBank: €500m non-preferred senior green benchmark transaction 6 years non-call 5 years
• Funding requirements in 2022 impacted by ECB's TLTRO III and RWA optimization

Funding plan 2022 below €5bn

Group issuance activities 2021 (nominal values)

1) Based on balance sheet figures

Funding structure¹ (as of 31 December 2021)

Rating overview Commerzbank

As of 17 February 2022

Bank Ratings	S&P	Moody's
Counterparty Rating/Assessment1	A-	A1/ A1 (cr)
Deposit Rating2	BBB+ negative	A1 stable
Issuer Credit Rating (long-term debt)	BBB+ negative	A1 negative
Stand-alone Rating (financial strength)	bbb	baa2
Short-term debt	A-2	P-1
Product Ratings (unsecured issuances)
Preferred senior unsecured debt	BBB+ negative	A1 negative
Non-preferred senior unsecured debt	BBB-	Baa2
Subordinated debt (Tier 2)	BB+	Baa3
Additional Tier 1 (AT1)	BB-	Ba2
Sustainability assessments
Environment, Social, Governance	2, 2, 2	3, 4, 3

Credit impact score - 3

Last rating events

S&P:

Ratings have been confirmed in January 2022 Introduction of ESG factors in the classic rating approach in January 2022. Commerzbank received a "2" in each of the individual scores

Moody´s:

Introduction of ESG factors in the classic rating approach in December 2021. Commerzbank received an overall score of "CIS-3"

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

2) Includes corporate and institutional deposits

IAS 19: Development of pension obligations

Cumulated actuarial gains and losses (€m)

Explanation

The IAS19 discount rate increased significantly versus year-start partly due to rising market yields, partly due to model change for discount rate. The resulting OCI valuation gain in pension obligations was partly compensated by an OCI valuation loss from an upward adjustment of the actuarial inflation assumption (Rentendynamik) at year-end

On the asset side, the plan assets even achieved a small OCI valuation gain despite rising market yields. In total, positive net effect (after tax) of +€674m in YtD OCI

The discount rate is derived from an AA rated government bond basket, re-calibrated on corporate bond level, with average duration of 18 years

Funding ratio (plan assets vs. pension obligations) is 105% 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 (represent 96% of total pension obligations); model change for discount rate in Q1 2021

FX impact on CET1 ratio

QoQ change in FX capital position

Explanation

Marginal negative impact on CET1 ratio¹ : The increasing effect of currency translation reserve is slightly overcompensated by higher FX driven credit risk RWA

Increase in credit risk RWA from FX effects, mainly due to stronger USD and GBP, slight additional impact from PLN

Slightly higher currency translation reserve mainly due to increase from USD (USD +€67m, PLN +€13m, GBP +€10m)

FX rates	09/21	12/21
EUR / GBP	0.861	0.840
EUR / PLN	4.620	4.597
EUR / USD	1.158	1.133

1) Based on current CET1 ratio

2) Change in credit risk RWA solely based on FX not on possible volume effects since 09/21

Group equity composition

	Capital Q3 2021 EoP €bn	Capital Q4 2021 EoP €bn	Capital Q4 2021 Average €bn		P&L Q4 2021 €m	P&L FY 2021 €m		Ratios Q4 2021 %	Ratios FY 2021 %
Common equity tier 1 capital	23.7	23.8	23.8 1	Operating Result	141	1,183 →	Op. RoCET	2.4%	5.0%
DTA	0.5	0.8
Minority interests	0.4	0.4
Prudent Valuation	0.2	0.3
IRB shortfall	0.2	-
Instruments that are given recognition in AT1 Capital	3.1	3.1
Other regulatory adjustments	0.6	0.3
Tangible equity	28.7	28.7	28.9 1	Operating Result	141	1,183 →	Op. RoTE	2.0%	4.2%
Goodwill and other intangible assets (net of tax)	1.0	1.0	1.0
IFRS capital	29.7	29.6	29.9 1
Subscribed capital	1.3	1.3
Capital reserve	11.5	10.1
Retained earnings	13.2	14.8
t/o consolidated P&L	0.0	0.4
t/o cumulated accrual for dividend and potential AT1 coupons	-0.1	-0.2
Currency translation reserve	-0.5	-0.4
Revaluation reserve	0.0	-0.1		Consolidated P&L	421	430
Cash flow hedges	-0.0	-0.1		./. accrual for potential AT1 coupon distribution current year	-49	-182
IFRS capital attributable to Commerzbank shareholders	25.5	25.6	25.7 1	Consolidated P&L adjusted for RoE/RoTE	372	248 →	Net RoE	5.8%	1.0%
Tangible equity attributable to Commerzbank shareholders	24.5	24.6	24.8 1			→	Net RoTE	6.0%	1.0%
Additional equity components	3.1	3.1	2.6
Non-controlling interests	1.1	1.0	1.0

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

Commerzbank Group

€m	Q1 2020	Q2 2020	Q3 2020	Q4 2020	FY 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	FY 2021
Total underlying revenues	2,024	2,278	2,095	2,047	8,444	2,308	1,884	2,015	1,864	8,071
Exceptional items	-172	-5	-62	-19	-258	184	-22	-9	235	388
Total revenues	1,851	2,273	2,033	2,029	8,186	2,492	1,862	2,006	2,099	8,459
o/w Net interest income	1,320	1,277	1,226	1,151	4,975	1,254	1,173	1,122	1,300	4,849
o/w Net commission income	877	791	812	837	3,317	951	852	889	924	3,616
o/w Net fair value result	-304	163	25	182	66	360	125	160	334	980
o/w Other income	-42	42	-30	-142	-172	-73	-288	-165	-459	-985
o/w Dividend income	2	12	14	10	37	1	6	3	11	22
o/w Net income from hedge accounting	-70	135	88	55	207	-48	-4	-32	-12	-96
o/w Other financial result	13	2	-39	-41	-65	19	-2	5	6	27
o/w At equity result	2	3	-	2	6	-	2	2	2	6
o/w Other net income	12	-109	-94	-167	-357	-45	-290	-143	-466	-944
Risk result	-326	-469	-272	-681	-1,748	-149	-87	-22	-313	-570
Operating expenses	1,503	1,526	1,521	1,609	6,160	1,469	1,704	1,485	1,581	6,239
Compulsory contributions	301	73	72	67	512	336	39	27	65	467
Operating result	-278	205	168	-328	-233	538	32	472	141	1,183
Impairments on goodw ill and other intangible assets	-	-	-	1,578	1,578	-	-	-	-	-
Restructuring expenses	-	-	201	614	814	465	511	76	26	1,078
Pre-tax result discontinued operations	44	6	-11	-10	30	-	-	-	-	-
Pre-tax result Commerzbank Group	-234	211	-43	-2,530	-2,597	73	-478	396	115	105
Taxes on income	48	14	3	199	264	-83	40	-6	-199	-248
Minority Interests	8	13	15	-26	9	23	8	-1	-107	-77
Consolidated Result attributable to Commerzbank shareholders and investors in additional equity components	-291	183	-60	-2,702	-2,870	133	-527	403	421	430
Total Assets	516,958	550,366	544,030	506,613	506,613	537,778	543,643	541,258	473,044	473,044
o/w Discontinued operations	4,752	2,179	2,167	2,040	2,040	2,143	1,809	1,368	62	62
Average capital employed	24,269	24,577	24,974	24,318	24,499	23,684	23,800	23,813	23,839	23,785
RWA credit risk (end of period)	153,812	157,215	153,082	147,849	147,849	149,314	148,183	146,691	145,209	145,209
RWA market risk (end of period)	11,113	11,208	11,260	12,191	12,191	12,467	10,850	8,731	10,180	10,180
RWA operational risk (end of period)	18,178	18,056	18,732	18,287	18,287	16,690	18,555	19,795	19,799	19,799
RWA (end of period) continued operations	183,102	186,478	183,073	178,327	178,327	178,471	177,588	175,217	175,188	175,188
RWA (end of period) discontinued operations	690	574	263	253	253	-	-	-	-	-
RWA (end of period)	183,792	187,051	183,337	178,581	178,581	178,471	177,588	175,217	175,188	175,188
Cost/income ratio (excl. compulsory contributions) (%)	81.2%	67.1%	74.8%	79.3%	75.2%	59.0%	91.5%	74.0%	75.3%	73.8%
Cost/income ratio (incl. compulsory contributions) (%)	97.4%	70.4%	78.3%	82.6%	81.5%	72.5%	93.6%	75.4%	78.4%	79.3%
Operating return on CET1 (RoCET) (%)	-4.6%	3.3%	2.7%	-5.4%	-1.0%	9.1%	0.5%	7.9%	2.4%	5.0%
Operating return on tangible equity (%)	-4.1%	2.9%	2.3%	-4.6%	-0.8%	7.8%	0.5%	6.6%	1.9%	4.2%
Return on equity of net result (%)	-4.4%	2.3%	-1.3%	-40.5%	-10.7%	1.5%	-8.9%	5.6%	5.8%	1.0%
Net return on tangible equity (%)	-4.8%	2.6%	-1.5%	-44.0%	-11.7%	1.5%	-9.3%	5.8%	6.0%	1.0%

Private and Small Business Customers

€m	Q1 2020	Q2 2020	Q3 2020	Q4 2020	FY 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	FY 2021
Total underlying revenues	1,329	1,190	1,164	1,142	4,825	1,338	1,200	1,220	950	4,708
Exceptional items	-20	-7	-11	-9	-47	-9	-71	-43	109	-14
Total revenues	1,309	1,183	1,153	1,133	4,778	1,329	1,130	1,177	1,059	4,694
o/w Net interest income	681	630	637	630	2,578	615	614	657	709	2,596
o/w Net commission income	586	502	515	548	2,151	653	575	583	612	2,422
o/w Net fair value result	32	66	58	75	232	58	69	55	184	367
o/w Other income	10	-15	-57	-120	-182	2	-129	-118	-446	-691
o/w Dividend income	1	11	12	2	26	1	4	3	2	10
o/w Net income from hedge accounting	1	-	1	-2	-	-2	-	-2	1	-2
o/w Other financial result	6	5	-	19	30	19	-	-	1	20
o/w At equity result	-	-	-1	-1	-1	-	-	-	1	1
o/w Other net income	2	-32	-69	-138	-237	-17	-133	-119	-451	-720
Risk result	-161	-152	-130	-118	-562	-64	-62	1	-194	-319
Operating expenses	864	859	872	920	3,515	851	866	850	914	3,482
Compulsory contributions	137	64	67	63	331	163	63	27	64	318
Operating result	147	108	83	32	370	250	138	300	-113	575
Impairments on goodw ill and other intangible assets	-	-	-	1,578	1,578	-	-	-	-	-
Pre-tax result	147	108	83	-1,546	-1,209	250	138	300	-113	575
Total Assets	155,201	158,780	158,667	153,547	153,547	158,318	161,641	165,238	165,929	165,929
Liabilities	186,485	194,287	195,332	198,372	198,372	200,420	202,304	201,140	200,730	200,730
Average capital employed	5,641	5,674	5,697	5,717	5,680	5,828	6,185	6,371	6,408	6,175
RWA credit risk (end of period)	40,476	40,754	40,959	40,019	40,019	41,759	42,687	42,820	42,087	42,087
RWA market risk (end of period)	964	1,075	1,029	1,072	1,072	1,180	1,116	929	965	965
RWA operational risk (end of period)	5,517	5,394	6,138	6,079	6,079	7,852	9,348	9,756	10,346	10,346
RWA (end of period)	46,958	47,223	48,126	47,170	47,170	50,791	53,151	53,504	53,398	53,398
Cost/income ratio (excl. compulsory contributions) (%)	66.0%	72.6%	75.7%	81.2%	73.6%	64.1%	76.7%	72.3%	86.4%	74.2%
Cost/income ratio (incl. compulsory contributions) (%)	76.5%	78.0%	81.5%	86.8%	80.5%	76.4%	82.3%	74.6%	92.4%	81.0%
Operating return on CET1 (RoCET) (%)	10.4%	7.6%	5.8%	2.2%	6.5%	17.2%	8.9%	18.8%	-7.1%	9.3%
Operating return on tangible equity (%)	10.3%	7.6%	5.8%	2.2%	6.5%	17.1%	8.8%	18.5%	-6.8%	9.1%
Provisions for CHF loans of mBank	-3	-42	-71	-113	-229	-14	-55	-95	-436	-600
Operating result ex legal provisions on CHF loans	150	150	154	145	599	264	193	395	323	1,175

mBank | Part of Segment Private and Small Business Customers

€m	Q1 2020	Q2 2020	Q3 2020	Q4 2020	FY 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	FY 2021
Total underlying revenues	305	273	227	220	1,025	309	254	223	-99	687
Exceptional items	-7	5	-	1	-1	-	3	-2	-	1
Total revenues	299	278	227	221	1,024	309	257	220	-99	688
o/w Net interest income	214	190	179	179	762	170	180	185	223	759
o/w Net commission income	64	65	67	71	268	85	79	78	81	324
o/w Net fair value result	27	57	52	67	203	55	58	52	37	202
o/w Other income	-6	-34	-72	-96	-208	-1	-60	-95	-441	-597
o/w Dividend income	-	1	-	-	1	-	1	-	-	1
o/w Net income from hedge accounting	1	-	1	-2	-	-2	-	-2	1	-2
o/w Other financial result	-2	1	-1	20	19	19	-	-	-1	19
o/w At equity result	-	-	-	-	-	-	-	-	-	-
o/w Other net income	-5	-37	-72	-114	-228	-19	-61	-93	-442	-615
Risk result	-83	-77	-57	-57	-274	-33	-50	-41	-63	-187
Operating expenses	126	124	123	114	486	116	130	131	127	503
Compulsory contributions	75	38	38	36	187	64	38	40	41	183
Operating result	15	38	9	14	77	95	40	9	-330	-186
Total Assets	37,740	40,682	39,824	38,935	38,935	41,398	43,203	44,210	42,746	42,746
Liabilities	36,260	39,148	38,105	36,908	36,908	39,731	42,094	43,329	42,031	42,031
Average capital employed	2,303	2,292	2,319	2,291	2,302	2,361	2,620	2,754	2,747	2,604
RWA credit risk (end of period)	17,144	17,207	17,181	16,680	16,680	18,054	18,936	18,901	18,260	18,260
RWA market risk (end of period)	426	412	394	329	329	428	508	437	440	440
RWA operational risk (end of period)	1,384	1,562	1,753	1,805	1,805	2,652	3,544	3,774	3,865	3,865
RWA (end of period)	18,954	19,181	19,327	18,814	18,814	21,134	22,988	23,111	22,565	22,565
Cost/income ratio (excl. compulsory contributions) (%)	42.1%	44.7%	54.1%	51.6%	47.5%	37.6%	50.5%	59.5%	-	73.2%
Cost/income ratio (incl. compulsory contributions) (%)	67.3%	58.4%	70.7%	67.8%	65.7%	58.4%	65.3%	77.6%	-	99.9%
Operating return on CET1 (RoCET) (%)	2.6%	6.7%	1.6%	2.5%	3.3%	16.1%	6.0%	1.3%	-48.0%	-7.2%
Operating return on tangible equity (%)	2.6%	6.8%	1.7%	2.6%	3.4%	16.3%	6.0%	1.3%	-45.1%	-7.0%

Corporate Clients

€m	Q1 2020	Q2 2020	Q3 2020	Q4 2020	FY 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	FY 2021
Total underlying revenues	823	793	794	747	3,157	812	758	761	782	3,113
Exceptional items	-81	-12	-21	12	-101	17	11	15	12	56
Total revenues	743	781	773	759	3,056	828	769	776	795	3,168
o/w Net interest income	433	441	426	424	1,724	428	412	402	447	1,689
o/w Net commission income	300	300	309	298	1,207	312	289	325	323	1,248
o/w Net fair value result	-33	71	67	49	154	104	73	40	39	257
o/w Other income	43	-31	-29	-12	-29	-15	-5	9	-15	-26
o/w Dividend income	-	3	-	2	5	-	3	-1	3	5
o/w Net income from hedge accounting	6	4	1	1	12	-5	-	1	-	-4
o/w Other financial result	-3	-	-23	-13	-39	-6	1	-2	-	-7
o/w At equity result	2	2	1	2	8	-	2	2	1	6
o/w Other net income	39	-40	-8	-4	-14	-5	-10	9	-19	-26
Risk result	-165	-290	-120	-505	-1,081	-52	13	-29	-81	-149
Operating expenses	585	576	577	590	2,327	562	559	531	615	2,267
Compulsory contributions	99	7	4	2	113	114	-19	-	1	96
Operating result	-106	-92	72	-339	-465	100	242	216	97	656
Impairments on goodw ill and other intangible assets	-	-	-	-	-	-	-	-	-	-
Pre-tax result discontinued operations	44	6	-11	-10	30	-	-	-	-	-
Pre-tax result (total)	-62	-86	61	-349	-435	100	242	216	97	656
Total Assets	186,617	179,681	172,080	159,001	159,001	161,850	152,251	150,067	146,748	146,748
o/w Discontinued operations	4,752	2,179	2,167	2,040	2,040	2,143	1,809	1,368	62	62
Liabilities	187,411	185,377	186,891	171,086	171,086	181,159	180,282	178,151	136,715	136,715
o/w Discontinued operations	5,364	3,878	3,066	2,051	2,051	2,162	1,847	1,432	108	108
Average capital employed	11,330	11,611	11,355	10,904	11,280	10,395	9,839	9,732	9,570	9,891
RWA credit risk (end of period)	82,315	84,102	79,500	74,261	74,261	73,081	72,203	70,050	69,917	69,917
RWA market risk (end of period)	4,693	5,314	5,793	6,748	6,748	6,599	6,685	5,229	6,184	6,184
RWA operational risk (end of period)	7,575	7,700	7,668	7,242	7,242	4,535	4,077	3,876	4,880	4,880
RWA (end of period) continued operations	94,583	97,115	92,961	88,252	88,252	84,214	82,964	79,155	80,981	80,981
RWA (end of period) discontinued operations	690	574	263	253	253	-	-	-	-	-
Cost/income ratio (excl. compulsory contributions) (%)	78.7%	73.7%	74.6%	77.7%	76.2%	67.9%	72.6%	68.4%	77.4%	71.6%
Cost/income ratio (incl. compulsory contributions) (%)	92.1%	74.6%	75.2%	78.1%	79.8%	81.7%	70.2%	68.4%	77.6%	74.6%
Operating return on CET1 (RoCET) (%)	-3.7%	-3.2%	2.5%	-12.4%	-4.1%	3.8%	9.8%	8.9%	4.1%	6.6%
Operating return on tangible equity (%)	-3.6%	-3.0%	2.5%	-12.1%	-4.0%	3.6%	9.2%	8.3%	3.8%	6.2%

Others & Consolidation

€m	Q1 2020	Q2 2020	Q3 2020	Q4 2020	FY 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	FY 2021
Total underlying revenues	-129	295	138	158	463	159	-75	34	132	250
Exceptional items	-72	14	-31	-22	-110	176	38	19	114	346
Total revenues	-200	309	107	137	353	335	-37	53	246	597
o/w Net interest income	206	206	163	98	673	211	147	63	143	564
o/w Net commission income	-9	-11	-12	-9	-41	-13	-12	-18	-11	-55
o/w Net fair value result	-302	25	-100	58	-319	197	-18	65	111	355
o/w Other income	-96	89	56	-10	39	-60	-155	-56	3	-269
o/w Dividend income	-	-2	2	6	7	-	-	1	6	6
o/w Net income from hedge accounting	-77	131	85	56	195	-42	-5	-31	-13	-90
o/w Other financial result	10	-4	-15	-48	-56	5	-3	6	5	14
o/w At equity result	-	-	-	-	-	-	-	-	-	-
o/w Other net income	-29	-37	-17	-24	-107	-23	-147	-33	4	-199
Risk result	-	-27	-22	-57	-106	-32	-37	6	-38	-101
Operating expenses	54	92	72	99	317	56	279	104	51	490
Compulsory contributions	65	2	-	1	68	59	-6	-	-	53
Operating result	-319	188	13	-21	-139	188	-348	-45	157	-48
Restructuring expenses	-	-	201	614	814	465	511	76	26	1,078
Pre-tax profit continued operations	-319	188	-187	-635	-953	-277	-859	-121	131	-1,125
Total Assets	175,139	211,904	213,283	194,064	194,064	217,610	229,751	225,953	160,367	160,367
Liabilities	143,062	170,702	161,807	137,155	137,155	156,198	161,057	161,967	135,600	135,600
Average capital employed	7,298	7,293	7,922	7,697	7,539	7,462	7,776	7,710	7,861	7,718
RWA credit risk (end of period)	31,021	32,359	32,622	33,569	33,569	34,474	33,293	33,822	33,205	33,205
RWA market risk (end of period)	5,455	4,819	4,437	4,370	4,370	4,688	3,049	2,573	3,031	3,031
RWA operational risk (end of period)	5,086	4,962	4,926	4,966	4,966	4,303	5,131	6,163	4,572	4,572
RWA (end of period)	41,562	42,140	41,986	42,905	42,905	43,466	41,473	42,557	40,808	40,808

Commerzbank Group | Exceptional Revenue Items

Commerzbank Group				Exceptional Revenue Items
€m	Q1 2020	Q2 2020	Q3 2020	Q4 2020	FY 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	FY 2021
Exceptional Revenue Items	-172	-5	-62	-19	-258	184	-22	-9	235	388
o/w Net interest income	-1	-17	-	-3	-21	125	42	-24	89	232
o/w Net commission income	-	-1	-	-	-2	-8	-8	16	-	-
o/w Net fair value result	-160	-10	-92	-14	-276	67	10	32	146	255

	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY
€m	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021
Exceptional Revenue Items	-172	-5	-62	-19	-258	184	-22	-9	235	388
o/w Net commission income	-	-1	-	-	-2	-8	-8	16	-	-
o/w Net fair value result	-160	-10	-92	-14	-276	67	10	32	146	255
o/w Other income	-11	23	30	-1	41	-	-66	-33	-	-99
o/w FVA, CVA / DVA, AT1 FX effect, Other former ACR valuations¹ (NII, NCI, NFVR)	-160	49	-51	-9	-172	67	10	32	31	139
PSBC	-20	-7	-11	-9	-47	-9	-71	-43	109	-14
o/w Net interest income	-13	-12	-11	-10	-45	-9	-8	-8	-7	-32
o/w Net fair value result	-7	5	-	1	-2	-	3	-2	116	117
o/w Other income	-	-	-	-	-	-	-66	-33	-	-99
o/w FVA, CVA / DVA (NII, NFVR)	-7	5	-	1	-2	-	3	-2	-	1
CC	-81	-12	-21	12	-101	17	11	15	12	56
o/w Net interest income	-	-2	-2	-1	-4	8	8	-16	-	-
o/w Net commission income	-	-	-	-	-	-8	-8	16	-	-
o/w Net fair value result	-81	31	-18	13	-55	17	11	15	12	56
o/w Other income	-	-41	-	-	-41	-	-	-	-	-
o/w FVA, CVA / DVA (NII, NFVR)	-81	30	-21	12	-59	17	11	15	12	56
O&C	-72	14	-31	-22	-110	176	38	19	114	346
o/w Net interest income	11	-3	13	7	28	126	42	-	95	264
o/w Net commission income	-	-1	-	-	-2	-	-	-	-	-
o/w Net fair value result	-72	-46	-73	-27	-219	50	-4	19	18	83
o/w Other income	-11	65	30	-1	83	-	-	-	-	-
o/w FVA, CVA / DVA, AT1 FX effect, Other former ACR valuations¹ (NII, NCI, NFVR)	-72	14	-31	-22	-110	50	-4	19	18	83

Description of Exceptional Revenue Items

2020	€m	2021		€m 2021	€m
Q1 PPA Consumer Finance (PSBC)	-13	Q1 PPA Consumer Finance (PSBC)		-9 Q3 PPA Consumer Finance (PSBC)	-8
Q2 PPA Consumer Finance (PSBC)	-12	Q1 TLTRO benefit (O&C)		126 Q3 Prov. re judgement on pricing of accounts (PSBC)	-33
Q2 Fine UK Financial Conduct Authority (CC)	-41	Q1 NII change from consolidation of a securitisation (CC)		8 Q3 NII change from consolidation of a securitisation (CC)	-16
Q3 PPA Consumer Finance (PSBC)	-11	Q1 NCI change from consolidation of a securitisation (CC)		-8 Q3 NCI change from consolidation of a securitisation (CC)	16
Q4 PPA Consumer Finance (PSBC)	-10	Q2 PPA Consumer Finance (PSBC)		-8 Q4 PPA Consumer Finance (PSBC)	-7
		Q2 TLTRO benefit (O&C)		42 Q4 TLTRO benefit (O&C)	95
		Q2 Prov. re judgement on pricing of accounts (PSBC)		-66 Q4 Valuation of participation (PSBC)	116
		Q2 NII change from consolidation of a securitisation (CC)	8
		Q2 NCI change from consolidation of a securitisation (CC)	-8

1) From Q1 2021 onwards no longer reported as exceptional revenue items

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% ² of the average RWAs (YTD: PSBC €51.5bn, CC €82.4bn)	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 goodwill and other intangible assets ¹	12% ² of the average RWAs plus average regulatory capital deductions (excluding goodwill and other intangible assets) (YTD: PSBC €0.1bn, CC €0.7bn)	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 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 deduction of potential (fully discretionary) AT1 coupon	Average IFRS capital without non controlling interests and without additional equity components after deduction of goodwill and other 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 dividend accrual and potential (fully discretionary) AT1 coupon 2) charge rate reflects current regulatory and market standard

For more information, please contact our IR team

Christoph Wortig Head of Investor Relations P: +49 69 136 52668 M: christoph.wortig@ commerzbank.com

Ansgar Herkert Head of IR Communications

P: +49 69 136 44083 M: ansgar.herkert@ commerzbank.com

Investors and Financial Analysts

Michael H. Klein P: +49 69 136 24522 M: michael.klein@ commerzbank.com

Jutta Madjlessi P: +49 69 136 28696 M: jutta.madjlessi@ commerzbank.com

Rating Agency Relations Patricia Novak P: +49 69 136 46442 M: patricia.novak@ commerzbank.com

ESG

Yannik Meyer P: +49 69 136 25677 M: yannik.meyer@ commerzbank.com

Mail: ir@commerzbank.com / www.ir.commerzbank.com

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.

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