Commerzbank AG

Investor Presentation • Nov 6, 2024

Delivery ahead of plan - outlook improved

At a glance

	Q3 2024	$\begin{gathered} \text { vs } \ \text { Q3 } 23 \end{gathered}$	9M 2024	$\begin{gathered} \text { vs } \ 9 M 23 \end{gathered}$	Targets 2024
Revenues	€2,735m	$-1 \%$	€8,150m	$+1 \%$	NII increase from $€ 8.1$ bn to $€ 8.2$ bn NCI increase from $4 \%$ to $>5 \%$
Risk result	-€255m	$+182 \%$	-€529m	$+44 \%$	$<€ 800$ incl. usage of TLA
Net result	€642m	$-6 \%$	€1,926m	$+5 \%$	€2.4bn
Cost income ratio	$58 \%$	$+2 p p$	$59 \%$	$-1 p p$	$\sim 60 \%$
RoTE	$8.7 \%$	$-0.9 p p$	$8.8 \%$	$+0.2 p p$	$\geq 8 \%$
CET1 ratio	$14.8 \%$	$+0.2 p p$	$14.8 \%$	$+0.2 p p$	increase from $>14 \%$ to $~ 15 \%$
Capital return	Buyback of $€ 600$ n approved and applied for $\leq € 400$ m 2 nd tranche				$\geq 70 \%$

Our top priorities

Execution Strategy 2027

Development upgraded strategy
Handling current situation

Continued delivery on targets

9M earnings sustained on increased level based on strong client business and confirmed by good Q3 performance

Net RoTE

$\%$
9M 22
9M 23
9M 24

CET1 ratio

$\%$
13.8
14.6
14.8

9M 22
9M 23
9M 24

On track to reach net RoTE of at least 8\% for 2024

Strong capital ratio underpins significant capital return potential €600m share buyback approved and applied for $\leq € 400 \mathrm{~m} 2 \mathrm{nd}$ tranche

Updated Strategy 2027 delivers higher returns

Improved financials lead to...
Revenues
(€bn)

2024e
Net RoTE
(\%)
2024e
CIR
(\%)
2024e

2027
2024e
2027

2027
2024e

2024

Net Result
(€bn)

2025
2026
2027

1) 2024 including burdens from FX loans in Poland, without further potential burdens from Russian subsidiary
2) Potential share buyback as part of pay-out subject to approval by ECB and German Finance Agency

Full focus on strategy 2027 execution

Continued delivery in Q3

$\checkmark$ Expansion of offerings for ultra-high-net-worth individuals and family offices
$\checkmark$ Aquila Capital with strong sales start of first fund "AC One Planet" European long-term investment fund
$\checkmark$ Portfolio growth in Green Infrastructure Finance already exceeds record year 2023
$\checkmark$ Client self-onboarding on eFX platform allows new users to easily and quickly start trading
$\checkmark$ New "IT factory" in Malaysia successfully launched

Cornerstones for development of upgraded strategy

Capital Markets Day on 13 February 2025

Operating performance further improved in Q3 2024

Revenues (€m)	Q3 23	Q2 24	Q3 24
Revenues	2,759	2,668	2,735
Costs	1,649	1,599	1,594
Cost-income-ratio (CIR)	$56 \%$	$60 \%$	$58 \%$

Risk (€m)	Q3 23	Q2 24	Q3 24
	91	-199	-255
Risk result
Top-level adjustment (TLA)	435	339	242
Non-performing exposure (NPE) ratio	$1.0 \%$	$0.8 \%$	$0.9 \%$

Result (€m)	Q3 23	Q2 24	Q3 24
Operating result	1,116	870	886
Net result	684	538	642
Net RoTE	$9.6 \%$	$7.3 \%$	$8.7 \%$

Capital	Q3 23	Q2 24	Q3 24
CET1 ratio	14.6\%	14.8\%	14.8\%
RWA (€bn)	174	173	171

Revenues slightly above last quarter

Revenues

(€m)

9M 23: 8,052

Q1 23 Q2 23 Q3 23 Q4 23

Net interest income
Net commission income

Net fair value

Other Income (excl. FX loan prov.)
FX loan provisions
1947
915
92
51
51
347
2139
2139
841
831
67
23
23
234
2126
831
234
234
2126
234
234
234
9M 24: 8,150

Q1 24 Q2 24 Q3 24

Q3 Revenues maintained on high level - up 1.2\% vs 9M 23

Net interest income (NII) 5.5\% lower YoY in line with development of interest rates partially offset by volumes

Net commission income (NCI) up 7.6\% YoY mainly due to better securities business and increased activity level of corporate clients

Net fair value result (NFV) lower QoQ driven by FX valuation effect of USD AT1

Other income excluding provisions for FX loans improved Q2 was burdened by Russia related provisions

Q3 with 7.6\% YoY growth in commission income

Net commission income

( $€ \mathrm{~m})$

9M 23: 2,587

YtD NCI up 4.1\% with significantly improved revenue dynamic

Corporate Clients (CC) increased NCI +4.4\% QoQ with higher contribution from transaction banking, lending and FX trading more than compensating seasonally weaker bond business

Private and Small-Business Customers Germany (PSBC Germany) maintained NCI on same level QoQ with stable securities and payments business - up 8.3\% YoY mainly due to better securities business, including acquisition of Aquila Capital
mBank benefits among other effects from better cards business QoQ

Broad-based YoY growth of NCI

Net commission income PSBC Germany

Corporate Clients

Trade finance with YoY good growth despite sluggish German economy

In Capital Markets YoY growth from syndication and FX businesses

Private and Small-Business Customers Germany

YoY increased securities revenues due to volume growth and higher number of transactions as well as contribution from Aquila Capital

QoQ lower securities revenues due to less fees at Commerz Real

QoQ securities volume up $€ 4 \mathrm{bn}$ mainly due to market performance - net new money inflows offset by outflows due to closure of onvista bank

Resilient NII despite lower ECB rates

Net interest income

( $€ \mathrm{~m}$ )

YtD NII on same level as last year
Corporate Clients (CC) with QoQ lower NII contribution from deposits due to reduced ECB rates and increasing deposit beta at slightly lower volumes in current accounts

Private and Small-Business Customers Germany (PSBC Germany) with QoQ lower NII in line with reduced ECB rates at stable volumes
mBank with higher NII QoQ based on continued effective management of customer deposits and loan growth

Others \& Consolidation (O\&C) with higher NII QoQ mainly technically driven (day-count effects and consolidation items)

Loan growth in Mittelstand

Loan volume (Group ex mBank)

(Quarterly average in €bn)

CC $\square$ PSBC Germany

Institiutionals \& others
Internat. corp.
Mittelstand
other loans
(o/w consumer loans)
Mortgages

Deposit volume (Group ex mBank)

(Quarterly average in €bn)

CC with continued loan volume growth in Mittelstand despite low economic growth in home market

CC loan book reached €100bn
German mortgage business stable

245	244	247	252	261	270	269
39	39	31	32	37	38	38	CC term/call
70	66	64	62	59	58	56	CC sight
45	50	60	70	83	92	94	PSBC term/call/ saving deposits
105	98	92	86	83	82	81	PSBC sight
Q1 23	Q2 23	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24
16\%	20\%	26\%	30\%	35\%	39\%	40\%	Average beta

CC with ongoing trend of corporates shifting from sight deposits to interest bearing products

PSBC with still growing deposit volumes despite lower rates offered on call deposits

Beta stabilized at around $40 \%$

2024 NII outlook increased from $€ 8.1$ bn to $€ 8.2$ bn

Expected development of NII

$(\in b n)$

Expected offsetting NFV vs $2024^{1}$
$(\in b n)$

ECB deposit rates

Average ECB deposit rate expected at $3.8 \%$ in 2024 and in range $2.1 \%-2.8 \%$ in 2025 ( $€ 30 \mathrm{~m}$ annualised sensitivity to $+/-10 \mathrm{bp}$ in ECB rate)
Lower NII due to rates development expected to be largely offset by higher NFV

Deposit and loan volumes

Volumes stable in Q3 - in 2025 expected to be slightly higher and contributing $€ 100 \mathrm{~m}$ Deposit beta ${ }^{2}$
Q3 average deposit beta in Germany at 40\% reflecting mix shift in CC - average beta for 2024 expected at 39\% - in 2025 beta expected at same level ( $€ 80 \mathrm{~m}$ annualised sensitivity to $+/-1$ pp beta change)

Replication portfolio

Deposit replication portfolio at $€ 133$ bn; replication portfolios expected to contribute additional $€ 200 \mathrm{~m}$ in 2025 and a further $€ 500$ - $€ 600 \mathrm{~m}$ until 2027

mBank

NII 2025 expected $€ 200 \mathrm{~m}$ - € 300 m below 2024, but partly offset by higher NFV

Outlook 2027

Confirmed at $€ 8.4$ bn based on benefits from replication portfolio and expected growth in deposit and loan volumes as well as NII growth at mBank

1) Change in net fair value result due to assumed changes in interest rate levels in EUR and PLN
2) Deposit beta is the average interest pass-through rate to customers across interest bearing and non-interest bearing deposit products based on ECB deposit rate

Continued strict cost control

Costs

$(€ \mathrm{~m})$

Operating expenses $\square$ Compulsory contributions

Total Group costs below last year due to lower compulsory contribution

Operating expenses for Group ex mBank slightly higher than last year because of general salary increases, higher accruals for equity-based variable compensation and acquisition of Aquila Capital in June. These increases were partially offset by active cost management

Operating expenses for mBank rose as a result of investments in business growth and FX effects

Decreasing European bank levy in 2024 due to suspended contribution to Single Resolution Fund as target volume has been reached

In 2024 we expect total expenses of $€ 6.5$ bn which are the basis of our target CIR of $60 \%$. This includes a cost increase in Q4 due to further IT investments, ongoing growth in mBank and a final inflation compensation payment to employees

Risk result incl. -€97m collective provision for ESG risks

Risk result
(€m)

9M 23: -367

Around -€130m of overall -€255m risk result related to 3 larger single cases

Risk result includes around -€147m from methodology updates including introduction of collective staging to cover climate and environment risks that resulted in €16bn increase of stage 2 exposure and -€97m risk result

Partially offset by €94m TLA release due to reassessment. TLA reduction in PSBC (from €147m to €117m) and in CC (from $€ 187 \mathrm{~m}$ to $€ 124 \mathrm{~m}$ ). TLA of O\&C stable at $€ 1 \mathrm{~m}$

Remaining $€ 242 \mathrm{~m}$ TLA mainly available to cover expected secondary effects from geopolitical crises and uncertainties from inflation

Cost of risk at low 25bp and NPE-ratio at $0.9 \%$

Strong net result exceeds expectations

Q3 2024
( $€ \mathrm{~m})$

Operating result

( $€ \mathrm{~m})$

					2,879	2,841
	1,116	870	886
	Q3 23	Q2 24	Q3 24	9M 23	9M 24
Corporate Clients	645	552	412	1,637	1,623
PSBC Germany	238	211	251	885	985
mBank	89	147	203	175	432
Others \& Consolidation	84	$-139$	21	182	$-199$

CC: revenues holding up well despite lower rates

P\&L CC

$\mathbf{K m}$	Q3 29	Q2 24	Q3 24
Revenues	1,172	1,199	1,121
o/w Mittelstand	654	680	639
o/w International Corporates	288	282	263
o/w Institutionals	209	224	214
o/w others	21	13	5
Risk result	$-4$	$-121$	$-188$
Operating expenses	522	526	521
Compulsory contributions	-	1	1
Operating result	645	552	412
RWA (end of period in €bn)	83.3	81.4	78.7
CIR (incl. compulsory contributions) (\%)	44.6	43.9	46.5
Operating return on equity (\%)	24.6	21.5	16.4

8M 23	9M 24
3,378	3,541
1,910	1,976
803	841
609	670
55	55
-119	$-362$
1,551	1,554
72	2
1,637	1,623
83.3	78.7
48.0	43.9
20.8	21.2

YtD revenues up 4.8\%, but slightly lower operating result due to higher risk result

Revenues from deposits lower for all customer groups due to ECB rate cuts and increased deposit beta

All customer groups with good underlying customer business and improvement in fee income YoY

Trade finance with YoY good growth despite sluggish German economy

Better capital markets rates business led to higher NFV YoY
Risk result driven by 3 larger single cases

PSBC Germany with stable revenues

P\&L PSBC Germany

Km	Q3 29	Q2 21	Q3 24	9M 23	9M 24
Revenues	1,045	1,066	1,044	3,240	3,276
o/w Private Customers	782	804	791	2,385	2,482
o/w Small-Business Customers	227	224	206	678	663
o/w Commerce Real	36	38	46	178	131
Risk result	$-39$	$-10$	$-32$	$-139$	$-57$
Operating expenses	705	715	742	2,130	2,171
Compulsory contributions	4	31	19	85	64
Operating result	298	311	251	885	985
RWA (end of period in €bn)	30.8	31.2	30.9	30.8	30.9
CIR (incl. compulsory contributions) (\%)	67.8	69.9	72.9	68.4	68.2
Operating return on equity (\%)	29.9	31.2	25.4	29.1	33.0

NII decreased YoY due to lower ECB rates and higher deposit beta, compensated by commission income and valuation effects

YoY slight revenue growth in Private Customers. Growth in commission income more than compensating decrease in deposit business

Small-Business Customers YoY with stable commission business but lower revenues from deposits

Commerce Real with higher revenues YoY benefitting from positive valuation effects

Slightly lower customer base in Germany as a consequence of closing onvista bank and not transferring all customers

Higher costs include effect of consolidating Aquila Capital

mBank with strong underlying profitability

Operating result increased to €203m thanks to revenue growth despite ongoing booking of additional provisions for FX loans Increased interest margin on deposits and loan growth drive revenues

Volume of CHF loans before deductions at $€ 1.3 \mathrm{bn}$

Outstanding provisions for legal risk for CHF loans of €1.8bn (thereof €0.7bn for repaid loans as well as for legal fees)
So far $€ 1.6$ bn already paid out for court cases and settlements for the FX mortgage portfolio - almost exclusively for CHF loans
The number of new court cases has more than halved in Q3 vs. Q1; In addition, the number of total pending lawsuits has begun to significantly decline due to successful settlements with customers Lower but still significant burdens from FX loans expected in Q4

Others \& Consolidation with neutral result in Q3

NII lower YoY mainly due to ending of remuneration of minimum reserves at ECB since end of Q3 23

Lower NFV mainly due to USD AT1 FX effect

In Q2 other income was burdened by booking of Russia related provisions

CET1 ratio of $14.8 \%$ provides large 451 bp buffer to MDA

RWA development by risk types

(€bn | eop)

Market risk
Operational risk
Credit risk

Transition of CET1 ratio (\%)
Q3 2023
Q2 2024
14.6

Q2 2024
14.8

Capital
change
RWA
change
Q3 2024
Q1 24

Credit RWA in CC lower mainly from change in counterparty risk model following regulatory approval and reduction in undrawn credit lines

Lower market risk RWA also from regulatory approval of counterparty risk model

Reduced capital due to cumulative effects, especially negative FX reserve and increased deduction from prudential valuation

No inclusion of 9M net result in capital position

Capital distribution for 2024 in line with plan

1) Pay-out ratio based on net result after potential (fully discretionary) AT1 coupon payments; pay-out not exceeding net result after potential AT1 coupon payments

2024 NII, NCI and CET1 ratio targets raised

Revenues of $€ 10.9$ bn based on increase NII from $€ 8.1$ bn to $€ 8.2$ bn and raised growth in NCI from $4 \%$ to $>5 \%$

Cost-income-ratio of $\sim 60 \%$ and net RoTE of $\geq 8 \%$

Risk result $€ 800 \mathrm{~m}$ assuming usage of TLA

CET1 ratio target raised from $>14 \%$ to $~ 15 \%$

Net result $€ 2.4$ bn $\rightarrow$ pay-out ratio ${ }^{1} \geq 70 \%$
subject to future developments of burdens from Russia and FX loans in mBank

[^0]
[^0]: 1) Pay-out ratio based on and not exceeding net result after potential (fully discretionary) AT1 coupon payments; share buyback as part of pay-out subject to approval by ECB and German Finance Agency

Our path to sustainable shareholder value

Appendix

Overview Commerzbank Group ..... 26
Corporate Clients ..... 27
Private and Small-Business Customers ..... 28
mBank ..... 29
Financials at a glance ..... 30
Key figures Commerzbank share ..... 31
German Economy ..... 32
Exposure and risk related information
Russia net exposure ..... 33
Commerzbank's risk provisions related to ..... 34
stages
Corporate portfolio ..... 35
Commercial real estate ..... 36
Residential mortgage business ..... 37
mBank CHF mortgage loans ..... 38
Corporate responsibility
ESG ratings ..... 39
Sustainable products target ..... 40
Green Infrastructure Finance portfolio ..... 41
Green bonds ..... 42
Funding \& rating
Liquidity position / ratios ..... 43
Capital markets funding ..... $44-45$
Pfandbrief cover pools ..... $46-47$
MREL requirements ..... 48
Distance to MDA ..... 49
Rating overview ..... 50
Loan and deposit volumes ..... 51
Capital management
IAS 19: Pension obligations ..... 52
FX impact on CET1 ratio ..... 53
Capital Return Policy ..... 54
Group equity composition ..... 55
P\&L tables
Commerzbank Group ..... 56
Corporate Clients ..... 57
Private and Small-Business Customers ..... 58
PSBC Germany ..... 59
mBank ..... 60
Others \& Consolidation ..... 61
Exceptional revenue items by segment ..... 62
Balance Sheet ..... 63
Glossary ..... 64
Contacts \& financial calendar ..... 65
Disclaimer ..... 66

Overview Commerzbank Group

Updated

Strategy 2027

• $2^{\text {nd }}$ largest listed bank in Germany
• Member of German blue chip index DAX 40
• Approximately 37k FTE
• Market capitalisation $€ 19.3$ bn $^{1}$
• Total assets $€ 565$ bn

Customer segments

• Corporate Clients
• Private and Small-Business Customers
• Germany including subsidiaries
• mBank in Poland

Corporate Clients

German Corporate Clients

• Small and medium-sized enterprises (Mittelstand, over $€ 15 \mathrm{~m}$ turnover)
• Large customers with affinity for capital markets as well as public sector

International Clients

• International Large Corporates with connectivity to DACH and selected futureoriented sectors in Europe and worldwide
• International SME in Austria, Switzerland and Czech Republic
• Leading German multinational companies of all relevant sectors based on our sector expertise

Institutionals

• Financial Institutions (FIs)
• Selected Non-Bank Financial Institutions (NBFIs)
• (Sub-) Sovereigns

We are delivering service excellence for our corporate clients - in Germany and globally

No 1 in financing German Mittelstand based on trustful client relationships and strong expertise

Leading bank in processing German foreign trade finance with approximately $30 \%$ market share

Strong regional franchise in Germany, global presence in more than 40 countries worldwide

Excellence in supporting our clients with their transformation journey based on dedicated ESG advisory teams and tailored structured finance solutions for green infrastructure projects

Private and Small-Business Customers Germany

Private Customers

• Customers with daily banking needs
• Convenient standard banking products (e.g. current account, consumer finance)

Self-directed Private

Customers
comdirect

• Self-directed customers with high digital affinity
• Digital self-service offering in banking and brokerage

Small-Business

Customers

• Customers with an entrepreneurial background, under $€ 15 \mathrm{~m}$ turnover
• Our product portfolio is a onestop shop for private and professional needs

Wealth Management \& Private Banking

• Customers with higher need for individual and personal advice on site
• Product focus on lending and asset management solutions

We are the bank at our customers' side - optimising our market reach via two-brand strategy

One of the leading banks for private and smallbusiness customers in Germany with $>400 €$ bn assets under management (deposits and securities)
€uro Magazin voted Commerzbank best branch based bank and comdirect best direct bank in Germany

Strong direct banking capabilities and excellent remote advice for all customers with focus on scale and efficiency

Individually tailored advisory model with excellent solutions and personal advice for premium clients

mBank | Part of segment Private and Small-Business Customers

mBank

Private Customers

• Serving private customers across Poland, Czech Republic and Slovakia with state-of-the-art digital banking solutions
• Steady 2\% CAGR in private customer base over the last seven years
• Addressing especially highly digital-affine young customers

Corporate Clients

• Strong customer base of SME and large corporates
• Continuous CAGR of $+7 \%$ in number of corporate clients over the last seven years
• Preferred business partner of German corporates in Poland

As an innovative digital Bank, mBank is Poland's fifth largest universal banking group ${ }^{1}$

Serving approximately 5.7 m private customers and corporate clients across Poland (4.6m), Czech Republic and Slovakia (1.1m)
Beneficial demographic profile with average age of private customers of approximately 37 years

Leading mobile banking offer for individual client needs

Attractive mix of around 350 private customer service locations in Poland, Czech Republic and Slovakia and 43 branches for corporate clients in Poland

Commerzbank financials at a glance

Group		Q2 2023	Q3 2023	Q2 2024	Q3 2024	9M 2023	9M 2024
Total revenues	€m	2,629	2,755	2,668	2,735	8,052	8,150
Risk result	€m	$-208$	$-91$	$-199$	$-255$	$-367$	$-529$
Personnel expenses	€m	869	917	920	932	2,684	2,770
Administrative expenses (excl. depreciation)	€m	409	395	406	396	1,185	1,187
Depreciation	€m	203	193	198	201	581	593
Compulsory contributions	€m	52	45	75	64	357	230
Operating result	€m	888	1,116	870	886	2,879	2,841
Net result	€m	565	684	538	642	1,829	1,926
Cost/income ratio (incl. compulsory contributions)	\%	58.3	56.2	59.9	58.3	59.7	58.7
Accrual for potential AT1 coupon distribution current year	€m	$-48$	$-50$	$-49$	$-62$	$-146$	$-160$
Net RoE	\%	7.6	9.2	7.1	8.3	8.3	8.5
Net RoTE	\%	7.9	9.6	7.3	8.7	8.6	8.8
Total assets	€m	501,603	509,885	560,087	565,332	509,885	565,332
Deposits (amortised cost)	€m	363,122	367,763	395,204	393,075	367,763	393,075
Loans and advances (amortised cost)	€m	270,892	274,594	278,400	279,972	274,594	279,972
RWA	€m	173,977	173,626	172,887	170,865	173,626	170,865
CET1	€m	25,116	25,369	25,520	25,316	25,369	25,316
CET1 ratio	\%	14.4	14.6	14.8	14.8	14.6	14.8
Total capital ratio (with transitional provisions)	\%	19.0	19.2	19.8	19.8	19.2	19.8
Leverage ratio	\%	4.9	4.9	4.5	4.4	4.9	4.4
Liquidity coverage ratio (LCR)	\%	128.4	139.2	146.9	140.3	139.2	140.3
Net stable funding ratio (NSFR) ${ }^{1}$	\%	125.4	127.0	130.3		127.0
NPE ratio	\%	1.1	1.0	0.8	0.9	1.0	0.9
Group CoR on Loans (CoRL) (year-to-date)	bps	21	18	20	25	18	25
Full-time equivalents excl. junior staff (end of period)		35,935	36,257	36,730	36,767	36,257	36,767

1) NSFR as at the end of Q3 / 9M 2024 not yet available

Key figures Commerzbank share

Figures per share
(€)

FY 2021 FY 2022 FY 2023
Operating result per share ${ }^{1}$
EPS $^{1}$

	YE 2021	YE 2022	YE 2023	9M 2024
Number of shares issued (m)	$1,252.40$	$1,252.40$	$1,240.22$	$1,184.67$
Market capitalisation (€bn)	8.4	11.1	13.3	19.6
Net asset value per share (€)	20.50	21.60	23.33	25.14
Low/high Xetra intraday prices (€)	$4.70 / 7.19$	$5.17 / 9.51$	$8.31 / 12.01$	$10.15 / 16.61$

German economy to stage only modest recovery

ifo business climate index

(index, 2015=100)

Latest development

German real gross domestic product unexpectedly rose by $0.2 \%$ in the third quarter. However, the $0.2 \%$ increase was not enough to offset the decline in the second quarter. Therefore, the better description of the current situation is that the economy has been stagnating for more than two years.
The development of sentiment indicators in recent months gives little hope for a quick turnaround for the better. Although both purchasing managers' indices and the lfo business climate index rose in October, they remain at a very low level. It is clear that the dampening effect of the rate hikes by the ECB and many other western central banks over the past two years is only slowly receding. The same applies to the adverse effects of higher energy prices.
Due to the weak economy, the number of unemployed has increased in recent months. However, unemployment remains significantly lower than for most of the past 40 years. The inflation rate in October was $2.0 \%$, inline with the ECB's target. However, core inflation, excluding the often highly volatile energy and food prices, is still significantly higher at $2.9 \%$.

GDP $^{1}$

(change vs. previous year $|\%$ )

In 1999

Outlook for 2024/2025

In view of the continued weakness of leading indicators, a revival of economic activity is not to be expected until next year. It is obviously taking longer for the economy to adjust to higher interest rates. The adjustment of construction output to the significantly lower demand in the wake of higher financing costs is not yet complete.
However, a recovery can be expected in the coming year. The burden of interest rates should gradually decrease, especially since the ECB is now lowering interest rates again. In addition, rising real wages should boost private consumption. However, a strong upturn is not to be expected. The numerous structural problems are slowing down the German economy.
The inflation rate will probably increase again somewhat in the coming months, and the core inflation rate is also likely to remain above $2 \%$ in the coming year. This is because companies will continue to pass on at least part of the massive increase in their wage costs to their customers despite the weak growth.
Since June, the ECB has already lowered its most important key interest rate, the deposit rate, by 0.75 percentage points from $4.0 \%$ to $3.25 \%$. We are expecting the ECB rate down at $2.0 \%$ by the middle of next year, mainly because of the continued weakness of the economy.

Russia net exposure further reduced in Q3 2024

Russia exposure

	2022		2023			2024
Net exposure ( $€ \mathrm{~m}$ )	19 Feb	31 Dac	31 Mar	30 Jun	30 Sep	31 Dac	29 Mar	29 Jun	30 Sep
Corporates	621	261	217	184	161	148	116	81	51
- thereof at Eurasija	392	61	46	37	31	21	11	6	2
Banks	528	46	44	15	15	14	13	13	14
Sovereign (at Eurasija)	127	87	66	57	45	47	37	54	32
Pre-export finance	590	350	318	320	190	135	5	5	5
Total	1,866	744	645	576	411	344	171	153	102

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

Group exposure net of ECA and cash held at Commerzbank reduced to €102m

Additionally, Eurasija holds domestic RUB deposits of equivalent $€ 0.3 \mathrm{bn}$ at Russian financial institutions, mainly Central Bank of Russia

Consideration of ESG risk drives increase in stage 2

Stage 2 exposure increase of €20bn and additional risk provisions of $€ 102 \mathrm{~m}$ driven by introduction of collective staging to cover climate and environment risks

In stage 3 decrease of exposure and risk provisions driven by write-off of a fully provisioned large single case

Overall level of TLA decreased to €242m
TLA increases the effective coverage of our credit portfolio mainly in stage 2

[^0]
[^0]: 1) Exposure at Default relevant for IFRS 9 accounting (on- and off-balance exposures in the accounting categories AC and FVOCl)
2) Note: TLA is not assigned to stages, hence it is not included in the coverage ratios

Group's corporates portfolio well diversified

Corporates portfolio by sector

Overall performing portfolio (stage 1 and 2)

Corporates portfolio of $¬€ 140$ bn stands for $25 \%$ of overall group exposure. Portfolio size nearly unchanged compared to previous quarter
Overall still stable portfolio development that is closely monitored

Details on selected sectors

Automotive: For 2024 moderate development anticipated. Portfolio continuously under close monitoring with respect to individual business model and resilience potential
Chemicals/Plastics: MNC and large medium-sized corporates are predominantly well diversified and reasonably profitable; business models are sustainable and resilient. SMEs with less financial strength currently suffer from China exports and the related dumping prices
Construction/Metals: Construction/Metal portfolio broadly diversified. Weaker demand in the housing and automotive sectors is increasingly burdening small and medium-sized companies

Commercial Real Estate (asset-based)

Portfolio development

(€bn | EaD)
Investment grade share (in \%)

Top 5 asset classes 09/24
(€bn | EaD)
Investment grade share (in \%)

Top 5 asset classes 09/24
(€bn | EaD)
Investment grade share (in \%)

Location 09/24 ${ }^{1}$

(€bn | EaD Performing)

A-cities
B-cities
C-cities
D-cities
Other
Outside
Germany

Fixed interest period 09/24
(€bn | EaD)

Fixed interest period 09/24
(€bn | EaD)

Portfolio

• Portfolio amounts to $€ 9.8$ bn of which $€ 0.1$ bn is nonperforming exposure ( $\sim 1 \%$ of total portfolio)
• Sound rating profile with a high share of $79 \%$ investment grade
• EaD share IFRS9-stages: $68 \%$ in S1 (87\% 06/24), 31\% in S2 ( $9 \% 06 / 24$ ) and $1 \%$ in S3 (4\% 06/24). Significant reduction of stage 1 share after introduction of collective staging according to climate and environmental criteria (C\&E). In addition, largest S3 exposure has been written off
• Assets focus 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 $€ 6.8 \mathrm{bn}$ )
• Average LTV is $52 \%$ - largest asset class office with $51 \%$ LTV
• $60 \%$ of the portfolio are SPVs, thereof $27 \%$ with recourse to the sponsor
• Development risk with about $6.5 \%$ 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

German residential mortgage business \& property prices

Overall mortgage portfolio

Mortgage volume slightly declining in Q3/24 - risk quality remained stable so far:

EaD in €bn $\rightarrow$ RD in bps
Rating profile with a share of $93.7 \%$ in investment grade ratings (06/24: 93.6\%); poor rating classes $4 . x / 5 . x$ with $1.6 \%$ share only

NPE-ratio remains at a low level of $0.4 \%$ (coverage $87 \%)$

New business in Q3/24 with €2.0bn around 23\% lower than in previous quarter

Repayment rates unchanged at $2.42 \%$
Portfolio guidelines and observations for PD, LICV and repayment rates are continuously monitored. Compared to the drawn loan volume, the EaD (exposure at default) also considers undrawn commitments

Average "Beleihungsauslauf" (BLA) in new business of $81.4 \%$ in Q3/24 ( $81.8 \%$ in Q2). 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

Quality of residential real estate portfolio remains stable in a still challenging environment

mBank ${ }^{1}$ : FX-related legal risk coverage further strengthened

Decomposition of CHF loan contracts at mBank

Total value of legal provisions created for FX loans ( $€ \mathrm{~m}$ ) Cumulative value of all FX-related legal risk provisions Q1/18-Q3/24 is $€ 3.5 \mathrm{bn}$
Provision amount of $€ 1,861$ as of 09/24 includes $€ 1,789 \mathrm{~m}$ for CHF and $€ 72 \mathrm{~m}$ for other currencies

		1,903	1,913	1,950	1,861
	1,381	417	605	690	741	included in the bank's liabilities
$\begin{gathered} 899 \ 76 \ 823 \ \hline \end{gathered}$	1,229	1,486	1,507	1,590	1,150	deductions from gross loans
2021	2022	2023	03/24	06/24	09/24

Number of settlements (cumulative) with CHF borrowers

	1,800	13,321	15,168	17,018	19,519
	2022	2023	03/24	06/24	09/24

Number of CHF loan contracts in court (pending cases)

Number of new lawsuits in Q3/24 46\% lower than in Q4/23

		21,411	21,772	21,621
14,779	18,382	3,559	4,916	4,385	19,509
6,055	15,722	17,852	17,856	17,338	15,411
2021	2022	2023	03/24	06/24	09/24

1) Extract of mBank Investor presentation Q3 2024, PLN converted into EUR by end of quarter FX rates 6 November 2024

ESG ratings prove that we are on the right track

MSCI

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

SUSTAINALYTICS

ESG Risk Rating

Commerzbank is at medium risk of experiencing material financial impacts from ESG factors (score of 24.4 / 100 with 0 being the best)

ISS ESG $\triangleright$

ESG Corporate Rating

Rated in the ISS ESG prime segment and within the top 20\% of the industry group

Excellent ratings especially in the categories staff \& suppliers, environmental management, corporate governance and business ethics

ESG QualityScores

Commerzbank assigned with low ESG risks by ISS ESG QualityScores

• Social QualityScore 1,
• Environmental QualityScore 2,
• Governance QualityScore 3,
  

Climate Change Rating

Rated B in the 2023 CDP rating, which indicates that Commerzbank is taking coordinated action on climate issues

Excellent ratings and above industry average positions particularly in the categories emissions reduction initiatives and low carbon products, governance as well as risk management processes

Development of sustainable products in 9M 2024

Sustainable products
(€bn)

Advisory products
(no balance sheet impact, €bn)

Loan products

(with balance sheet impact, €bn)

Corporate Clients

• Accompanied ESG bond transactions (e.g. green and social bonds)*
• Sustainable investment solutions for corporate clients**
  

Private \& Small-Business Customers Germany ${ }^{1,2}$

• Asset management, securities advisory and brokerage**
• Commerz Real products**
• Retirement solutions*
  
• Green mortgages**
• KfW programmes**
  
• Flow value / ** Stock value

1) 2021 and 2022 numbers based on different method of calculation due to broader scope of included advisory products
2) Aquila Capital not included in figures

Development of Green Infrastructure Finance portfolio

Commerzbank AG has 3 green bonds outstanding with a total volume of €1.6bn

New Green Funding Framework from 2024¹

With the newly published Green Funding Framework, Commerzbank reaffirms its commitment to channel funding for the sustainable transformation of the economy.

As such, the new Green Funding Framework includes green buildings, i.e. residential mortgage loans as new additional green asset category.

Second Party Opinion received by Sustainalytics in August 2024:
"The Commerzbank Green Funding Framework is credible and impactful and aligned with the four core components of the ICMA Green Bond Principles 2021."

The Green Bond

The
Green Bond
Principles

Assigned assets for outstanding Green Bonds²
Allocation by country and technology

Comfortable liquidity position

LCR

$(\% \mid$ eop $)$

Highly liquid assets
(€bn | eop)

1) NSFR as at the end of Q3 2024 not yet available

Net stable funding ratio (NSFR) ${ }^{1}$

Total available stable funding | €bn
Total required stable funding | €bn

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 highly liquid assets and covers potential liquidity outflows according to the liquidity gap profile under stress

Funding plan very well progressed

Group funding structure ${ }^{1}$

Senior unsecured funding

Benchmarks / Highlights

• Pfandbriefe:

Four benchmark transactions with a total volume of $€ 4.6 \mathrm{bn}$ and maturities between 3 and 10 years

• Preferred senior:
  $€ 500 \mathrm{~m} 3 \mathrm{NC} 2$ floating rate note
• Non-preferred senior:
  $€ 750 \mathrm{~m} 7 \mathrm{NC} 6$ years,
  $€ 750 \mathrm{~m} 8 \mathrm{NC} 7$ years and
  $€ 500 \mathrm{~m} 11 \mathrm{NC} 10$ years ${ }^{2}$
• Tier 2:
  $€ 750 \mathrm{~m} 10 \mathrm{NC} 5.5$ years
• Additional Tier 1
  $€ 750 \mathrm{~m}$ PerpNC 7.8 years
  USD750m PerpNC 6.5 years ${ }^{2,3}$
• mBank:
  $€ 500 \mathrm{~m}$ Green preferred senior 6NC5 years

Group issuance activities 9M 2024
( $€$ bn | nominal values)

Preferred senior

Funding plan 2024 fulfilled early - activities continued in October

[^0]
[^0]: 1) Based on balance sheet figures
2) USD AT1 together with a public tender offer for outstanding USD AT 1
3) Settled in October 2024 (not included in charts)

Funding volume 2024 around $€ 10$ bn

Continued focus on diversification of funding

Well-balanced maturity profile

Mortgage Pfandbrief cover pool

Overview by property type

Overview by size

Cover pool details ${ }^{1}$

• Total assets:
  o/w cover loans:
  o/w further assets:
• Fixed rated assets:

98\%

• Weighted avg. LTV ratio:
  $51 \%$
• Outstanding Pfandbriefe:
  €29.2bn
• Fixed rated Pfandbriefe
  $83 \%$

• Cover surplus:
  €14.1bn
  (48\% nom.)

• Moody's rating:
  Aaa

Highlights

• German mortgages only
• $98 \%$ German residential mortgages, only $2 \%$ commercial
• Over $70 \%$ of the mortgages are "owner-occupied"
• Highly granular cover pool with $74 \%$ of the loans $€ 300 \mathrm{k}$ or smaller

Public Sector Pfandbrief cover pool

Borrower / guarantor \& country breakdown

Currency breakdown

Cover pool details ${ }^{1}$

• Total assets:
• $10.2 b n$
  o/w municipal loans :
  $€ 10.2 b n$
  o/w export finance loans :
  €2.6bn
• Fixed rated assets:
  $79 \%$
• Outstanding Pfandbriefe:
  €8.8bn
• Fixed rated Pfandbriefe:
  $60 \%$
• Cover surplus:
  €9.2bn
  (105\% nom.)
• Moody's rating:
  Aaa

Highlights

• Commerzbank utilises the public sector Pfandbrief to support its German municipal lending and guaranteed export finance business
• $>80 \%$ are assets from Germany
• $89 \%$ of the assets are EURdenominated

Comfortable fulfilment of RWA and LRE MREL requirements

MREL Requirements and M-MDA

Based on data as of 30 June 2024, Commerzbank fulfils its current MREL RWA requirement for resolution group A ${ }^{1}$ of $28.05 \%$ RWA with an MREL ratio of $33.3 \%$ RWA and the MREL subordination requirement of $22.68 \%$ RWA with a ratio of $28.9 \%$ RWA, both including the combined buffer requirement (CBR)

Both, the MREL LRE ratio of $8.9 \%$ and MREL subordination LRE ratio of $7.8 \%$ comfortably meet the requirement of $6.78 \%$
The issuance strategy is consistent with all RWA and LRE based MREL requirements

MREL RWA ratio (\%)

1) In May 2024, Commerzbank AG received its current MREL requirement calibrated based on data as of 31 December 2022. 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) Includes amortized amount (regulatory) of Tier 2 instruments with maturity $>1$ year
2) According to $\S 46 f$ KWG or non-preferred senior by contract

Commerzbank's MDA

451bp distance to MDA based on Q3 2024 CET1 ratio of $14.82 \%$ and 2023 SREP requirements
MDA decreased by 3bp compared to Q2 2024
Q3 2024 AT1 shortfall of 4bp - new AT1 issuance settled in July with regulatory recognition from October onwards. No shortfall expected at YE 2024
AT1 layer will continue to be managed to maintain appropriate distance to MDA

Based on the new SREP P2R we target a Tier 2 layer above 2.56\% in 2024 - Tier 2 with moderate maturities and issuance needs in 2024

1) Based on RWAs of €170.9bn as of Q3 2024. AT1 requirement of $1.922 \%$ and Tier 2 requirement of $2.563 \%$

Rating overview Commerzbank

As of 6 November 2024

Bank ratings	S\&P	Moody's
Counterparty rating/assessment ${ }^{1}$	A+	A1/A1 (cr)
Deposit rating ${ }^{2}$	A stable	A1 positive
Issuer credit rating (long-term debt)	A stable	A2 positive
Stand-alone rating (financial strength)	bbb+	baa2
Short-term debt	A-1	P-1
Product ratings (unsecured issuances)
Preferred senior unsecured debt	A stable	A2 positive
Non-preferred senior unsecured debt	BBB	Baa2
Subordinated debt (Tier 2)	BBB-	Baa3
Additional Tier 1 (AT1)	BB	Ba2
Product ratings (secured issuances)
Mortgage Pfandbriefe	-	Aaa
Public Sector Pfandbriefe	-	Aaa

Last rating events

• S\&P has raised Commerzbank's issuer credit rating by 1 notch to "A" in August 2024, the outlook is stable
• Moody's has raised the outlook of Commerzbank's issuer credit rating and deposit rating to positive in April 2024

Loan and deposit development

(€bn | quarterly average)

Corporate Clients

Private and Small-Business Customers

In CC, increase of loan volumes in Mittelstand and Institutionals
Deposit volumes are largely stable in Mittelstand and slightly decreased in International Corporates and Institutionals Increase in deposit volume at PSBC driven by mBank deposits

In PSBC Germany $>95 \%$ of deposits are insured ( $>65 \%$ statutory and more than $30 \%$ private insurance)
In CC almost $60 \%$ of deposits are insured ( $<5 \%$ statutory and $>55 \%$ private insurance)

IAS 19: Development of pension obligations

Cumulated actuarial gains and losses

( $€ \mathrm{~m}$ )

Pension obligations (gross)
Cumulated OCI effect ${ }^{1}$
Discount rate in $\%^{2}$

In Q3 24, the relevant market rates went slightly downwards, moving the IAS19 discount rate to $3.8 \%$ in Q3 versus $3.7 \%$ at year-start. YID the present-valued pension obligations (DBO) therefore still decreased, producing a YID liability gain in OCI

On the same market movement, pension assets produced a slight YID asset gain in OCI, with lower bond valuations being overcompensated by equity gains

Together, pension obligations and pension assets produced a YID net OCI gain of $+€ 79 \mathrm{~m}$ (after tax) on Group level

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

The funding ratio (plan assets vs. pension obligations) is 110\% across all Group plans

[^0]
[^0]: 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 German pension obligations (represents $97 \%$ of Group pension obligations)

FX impact on CET1 ratio

QoQ change in FX capital position

Marginal impact on CET1 ratio ${ }^{1}$ from decreasing effect of the currency translation reserve, slightly overcompensating lower FX driven credit risk RWA

Decrease in credit risk RWA from FX effects mainly due to weaker USD ( $€ 829 \mathrm{~m}$ ) and RUB ( $€ 56 \mathrm{~m}$ ), partly offset by stronger PLN ( $+€ 100 \mathrm{~m}$ ), GBP ( $+€ 72 \mathrm{~m}$ ) and other currencies

Lower currency translation reserve mainly due to decrease from USD ( $€ 105 \mathrm{~m}$ ) and RUB ( $€ 17 \mathrm{~m}$ ), partly offset by PLN ( $+€ 17 \mathrm{~m}$ ) and GBP ( $+€ 7 \mathrm{~m}$ )

FX rates ${ }^{2}$	$\mathbf{0 6 : 2 4}$	$\mathbf{0 9 : 2 4}$
EUR / GBP	0.846	0.835
EUR / PLN	4.309	4.279
EUR / USD	1.071	1.120
EUR / RUB	93.346	103.585

Commerzbank Capital Return Policy

Clear capital return plan with prudent capital buffer

Capital return 2022-24

Capital return 2022-2024 based on increasing pay-out ratios leading to a capital return of $\sim € 3 b n^{1}$

2022: 30\% (€0.4bn)
2023: 50\% (€1.0bn)
2024: $\geq 70 \%$
2024 return consists of share buyback ${ }^{2}$ applied for after H1 and Q3 2024 results as well as dividend to be approved at AGM in 2025

Capital return 2025-27

2025-2027 capital return with a pay-out ratio well above $50 \%$ but not more than the net result ${ }^{1}$; pay-out is depending on economic development and business opportunities

Return consists of share buyback ${ }^{2}$ and dividend approved at AGM of following year

Commerzbank aims for a steady development of the dividend with increasing results. Share buybacks will be applied for remaining capital to be returned within the pay-out ratio

CET1 ratio

Reaching and maintaining a prudent CET1 ratio of $13.5 \%$

CET1 ratio of at least 250bp above MDA after distribution prerequisite for dividend payment

Additional prerequisite for a share buyback is a CET1 ratio of at least $13.5 \%$ after distribution ${ }^{2}$

Updated with FY 2023 figures

1) Pay-out based on net result after potential (fully discretionary) AT1 coupon payments
2) 600 m share buyback already approved. And $\geq € 400 \mathrm{~m}$ 2nd tranche applied for after Q3 results - subject to approval by ECB and German Finance Agency

Group equity composition

1) P\&L reduced by pay-out accrual and accrual for potential (fully discretionary) AT1 coupons

Commerzbank Group

Km	Q1	Q2	Q3	9M	Q4	FY	Q1	Q2	Q3	9M
Total underlying revenues	2,655	2,621	2,727	8,003	2,434	10,438	2,719	2,815	2,753	8,287
Exceptional items	13	9	27	49	$-25$	23	28	$-147$	$-18$	$-136$
Total revenues	2,668	2,629	2,755	8,052	2,409	10,461	2,747	2,668	2,735	8,150
o/w Net interest income	1,947	2,130	2,166	6,242	2,126	8,368	2,126	2,078	2,048	6,251
o/w Net commission income	915	841	831	2,587	798	3,386	920	879	894	2,693
o/w Net fair value result	$-72$	$-17$	$-67$	$-157$	$-202$	$-359$	$-53$	$-4$	$-67$	$-124$
o/w Other income	$-122$	$-324$	$-175$	$-621$	$-313$	$-933$	$-246$	$-284$	$-140$	$-670$
o/w Dividend income	-	4	9	12	14	26	8	5	15	28
o/w Net income from hedge accounting	$-3$	10	$-8$	$-1$	40	39	$-12$	$-13$	43	18
o/w Other financial result	3	15	60	77	$-25$	52	45	$-6$	49	88
o/w At equity result	1	3	-	3	1	4	-	2	$-1$	1
o/w Other net income	$-123$	$-355$	$-235$	$-712$	$-342$	$-1,055$	$-287$	$-272$	$-246$	$-805$
Risk result	$-68$	$-208$	$-91$	$-367$	$-252$	$-618$	$-76$	$-199$	$-255$	$-529$
Operating expenses	1,464	1,481	1,504	4,449	1,557	6,006	1,496	1,524	1,530	4,550
Compulsory contributions	260	52	45	357	59	415	91	75	64	230
Operating result	875	888	1,116	2,879	542	3,421	1,084	870	886	2,841
Restructuring expenses	4	4	6	14	4	18	1	1	2	4
Pre-tax result Commerzbank Group	871	885	1,109	2,865	537	3,403	1,083	869	885	2,837
Taxes on income	279	338	405	1,022	166	1,188	322	289	197	807
Minority Interests	12	$-19$	20	14	$-24$	$-10$	14	42	46	103
Consolidated Result attributable to Commerzbank shareholders and investors in	580	565	684	1,829	395	2,224	747	538	642	1,926
additional equity components
Total Assets / Total Liabilities	497,357	501,603	509,885	509,885	517,166	517,166	551,977	560,087	565,332	565,332
Average capital employed	24,048	24,729	25,365	24,708	25,642	24,945	25,694	25,730	25,428	25,612
RWA credit risk (end of period)	142,866	144,802	144,128	144,128	144,044	144,044	142,739	142,682	141,257	141,257
RWA market risk (end of period)	7,588	8,326	8,701	8,701	8,280	8,280	7,766	7,629	7,032	7,032
RWA operational risk (end of period)	21,074	20,849	20,797	20,797	22,790	22,790	22,576	22,576	22,576	22,576
RWA (end of period)	171,528	173,977	173,626	173,626	175,114	175,114	173,081	172,887	170,865	170,865
Cost/income ratio (incl. compulsory contributions) (\%)	64.6\%	58.3\%	56.2\%	59.7\%	67.1\%	61.4\%	57.8\%	59.9\%	58.3\%	58.7\%
Operating return on CET1 (RoCET) (\%)	14.6\%	14.4\%	17.6\%	15.5\%	8.5\%	13.7\%	16.9\%	13.5\%	13.9\%	14.8\%
Operating return on tangible equity (\%)	11.8\%	11.8\%	14.6\%	12.7\%	7.0\%	11.3\%	14.1\%	11.3\%	11.3\%	12.2\%
Return on equity of net result (\%)	8.0\%	7.6\%	9.2\%	8.3\%	5.0\%	7.4\%	10.1\%	7.1\%	8.3\%	8.5\%
Net return on tangible equity (\%)	8.3\%	7.9\%	9.6\%	8.6\%	5.2\%	7.7\%	10.5\%	7.3\%	8.7\%	8.8\%

Corporate Clients

Km	Q1	Q2	Q3	9M	Q4	FY	Q1	Q2	Q3	9M
	3022	3023	3024	3023	3022	3023	3024	3024	3024	3024
Total underlying revenues	1,062	1,126	1,167	3,354	1,118	4,472	1,212	1,203	1,120	3,535
Exceptional items	18	1	5	24	$-11$	13	8	$-3$	1	6
Total revenues	1,080	1,127	1,172	3,370	1,107	4,485	1,221	1,199	1,121	3,541
o/w Net interest income	627	696	718	2,041	741	2,782	711	678	629	2,018
o/w Net commission income	335	321	327	983	300	1,283	360	330	345	1,036
o/w Net fair value result	132	128	129	389	75	463	152	171	148	470
o/w Other income	$-15$	$-18$	$-2$	$-34$	$-9$	$-44$	$-1$	20	$-1$	18
o/w Dividend income	-	2	-	3	2	4	-	2	-	2
o/w Net income from hedge accounting	-	$-1$	$-1$	$-2$	1	-	-	-	-	-
o/w Other financial result	$-2$	$-1$	2	$-1$	$-1$	$-2$	-	2	2	4
o/w At equity result	1	3	1	4	-	5	-	3	-	3
o/w Other net income	$-14$	$-21$	$-3$	$-38$	$-12$	$-50$	$-2$	13	$-4$	8
Risk result	54	$-169$	$-4$	$-119$	$-36$	$-155$	$-54$	$-121$	$-188$	$-362$
Operating expenses	514	514	522	1,551	561	2,112	507	526	521	1,554
Compulsory contributions	78	$-6$	-	72	-	73	-	1	1	2
Operating result	541	450	645	1,637	509	2,146	659	552	412	1,623
Total Assets	135,005	135,282	139,461	139,461	134,434	134,434	134,392	139,483	143,059	143,059
Total Liabilities	161,908	163,589	170,815	170,815	168,997	168,997	174,701	171,691	174,162	174,162
Average capital employed	10,393	10,512	10,508	10,474	10,521	10,481	10,378	10,273	10,025	10,213
RWA credit risk (end of period)	72,741	73,457	73,687	73,687	72,594	72,594	70,586	71,653	69,267	69,267
RWA market risk (end of period)	4,767	5,000	5,398	5,398	5,118	5,118	4,753	4,456	3,655	3,655
RWA operational risk (end of period)	4,474	4,271	4,168	4,168	5,122	5,122	5,287	5,258	5,817	5,817
RWA (end of period)	81,983	82,727	83,252	83,252	82,834	82,834	80,626	81,367	78,739	78,739
Cost/income ratio (incl. compulsory contributions) (\%)	54.8\%	45.1\%	44.6\%	48.0\%	50.7\%	48.7\%	41.6\%	43.9\%	46.5\%	43.9\%
Operating return on CET1 (RoCET) (\%)	20.8\%	17.1\%	24.6\%	20.8\%	19.4\%	20.5\%	25.4\%	21.5\%	16.4\%	21.2\%
Operating return on tangible equity (\%)	19.1\%	15.7\%	22.7\%	19.2\%	17.9\%	18.9\%	23.5\%	19.9\%	15.3\%	19.7\%

Km	Q1	Q2	Q3	9M	Q4	FY	Q1	Q2	Q3	9M
	2002	2003	2004	2003	2003	2003	2004	2004	2004	2004
Total underlying revenues	1,494	1,283	1,398	4,175	1,161	5,356	1,507	1,538	1,505	4,551
Exceptional items	7	$-7$	$-6$	$-6$	20	13	1	$-60$	24	$-35$
Total revenues	1,502	1,275	1,391	4,169	1,201	5,370	1,508	1,479	1,529	4,515
o/w Net interest income	1,091	1,118	1,157	3,366	1,018	4,384	1,244	1,177	1,145	3,566
o/w Net commission income	592	530	516	1,638	509	2,147	574	561	562	1,697
o/w Net fair value result	$-34$	$-45$	$-64$	$-144$	$-29$	$-173$	$-13$	$-23$	9	$-27$
o/w Other income	$-147$	$-328$	$-218$	$-692$	$-296$	$-988$	$-296$	$-236$	$-189$	$-721$
o/w Dividend income	-	1	10	11	7	18	10	2	16	28
o/w Net income from hedge accounting	-	$-2$	4	2	$-5$	$-3$	1	2	$-3$	1
o/w Other financial result	$-12$	$-5$	1	$-16$	29	14	2	$-54$	25	$-27$
o/w At equity result	-	-	$-1$	$-1$	-	$-1$	$-1$	$-1$	$-1$	$-2$
o/w Other net income	$-134$	$-321$	$-232$	$-688$	$-328$	$-1,016$	$-309$	$-186$	$-225$	$-720$
Risk result	$-128$	$-49$	$-94$	$-271$	$-201$	$-472$	$-26$	$-49$	$-76$	$-152$
Operating expenses	846	880	866	2,592	983	3,575	886	898	935	2,719
Compulsory contributions	140	62	45	246	57	303	91	74	63	228
Operating result	388	285	387	1,060	$-40$	1,020	506	457	454	1,417
Total Assets	172,230	173,963	176,152	176,152	179,698	179,698	178,399	181,355	184,386	184,386
Total Liabilities	208,599	211,592	215,700	215,700	228,338	228,338	236,511	242,863	241,897	241,897
Average capital employed	6,804	6,817	6,742	6,784	6,681	6,769	6,891	6,950	6,998	6,943
RWA credit risk (end of period)	39,857	40,042	39,300	39,300	39,703	39,703	41,845	41,566	42,343	42,343
RWA market risk (end of period)	598	683	691	691	777	777	700	823	995	995
RWA operational risk (end of period)	13,289	12,738	11,729	11,729	13,336	13,336	12,406	12,318	12,062	12,062
RWA (end of period)	53,744	53,463	51,720	51,720	53,816	53,816	54,952	54,707	55,401	55,401
Cost/income ratio (incl. compulsory contributions) (\%)	65.6\%	73.9\%	65.4\%	68.1\%	86.6\%	72.2\%	64.7\%	65.7\%	65.3\%	65.3\%
Operating return on CET1 (RoCET) (\%)	22.8\%	16.7\%	22.9\%	20.8\%	$-2.4 \%$	15.1\%	29.3\%	26.3\%	25.9\%	27.2\%
Operating return on tangible equity (\%)	21.8\%	16.0\%	22.1\%	20.0\%	$-2.3 \%$	14.5\%	28.5\%	25.8\%	25.8\%	26.7\%
Provisions for legal risks of FX loans of mBank	$-173$	$-347$	$-234$	$-754$	$-340$	$-1,094$	$-318$	$-240$	$-227$	$-785$
Operating result ex legal provisions on FX loans	561	632	621	1,814	300	2,114	823	697	681	2,201

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

Km	Q1	Q2	Q3	9M	Q4	FY	Q1	Q2	Q3	9M
	2022	2023	2023	2023	2023	2023	2024	2024	2024	2024
Total underlying revenues	1,153	1,055	1,051	3,258	878	4,136	1,167	1,066	1,044	3,276
Exceptional items	$-7$	$-6$	$-5$	$-18$	17	$-2$	-	-	-	-
Total revenues	1,146	1,049	1,045	3,240	894	4,134	1,167	1,066	1,044	3,276
o/w Net interest income	602	571	596	1,770	438	2,208	661	581	537	1,778
o/w Net commission income	511	450	436	1,396	437	1,834	489	474	472	1,435
o/w Net fair value result	8	2	$-8$	2	$-28$	$-26$	4	2	21	26
o/w Other income	24	26	21	72	47	119	13	9	14	36
o/w Dividend income	-	-	10	10	6	16	9	1	14	24
o/w Net income from hedge accounting	-	-	-	-	-	-	-	-	-	-
o/w Other financial result	-	-	-	-	25	26	-	2	-	2
o/w At equity result	-	-	$-1$	$-1$	-	$-1$	$-1$	$-1$	$-1$	$-2$
o/w Other net income	25	26	12	63	15	78	5	7	1	12
Risk result	$-91$	$-9$	$-39$	$-139$	$-92$	$-231$	$-15$	$-10$	$-32$	$-57$
Operating expenses	702	723	705	2,130	800	2,930	714	715	742	2,171
Compulsory contributions	64	18	4	85	15	100	15	31	19	64
Operating result	288	299	298	885	$-12$	873	423	311	251	985
Total Assets	126,025	126,286	127,621	127,621	127,630	127,630	126,711	128,131	129,047	129,047
Total Liabilities	162,810	164,297	167,908	167,908	176,725	178,725	185,172	190,089	186,958	186,958
Average capital employed	4,118	4,089	3,988	4,062	3,927	4,032	4,025	3,985	3,949	3,980
RWA credit risk (end of period)	23,522	23,359	23,261	23,261	23,078	23,078	24,364	23,444	23,328	23,328
RWA market risk (end of period)	247	311	281	281	326	326	330	405	551	551
RWA operational risk (end of period)	8,676	8,125	7,294	7,294	8,115	8,115	7,392	7,304	7,048	7,048
RWA (end of period)	32,445	31,795	30,837	30,837	31,520	31,520	32,086	31,153	30,927	30,927
Cost/income ratio (incl. compulsory contributions) (\%)	66.9\%	70.7\%	67.8\%	68.4\%	91.0\%	73.3\%	62.4\%	69.9\%	72.9\%	68.2\%
Operating return on CET1 (RoCET) (\%)	28.0\%	29.2\%	29.9\%	29.1\%	$-1.2 \%$	21.7\%	42.1\%	31.2\%	25.4\%	33.0\%
Operating return on tangible equity (\%)	27.7\%	28.7\%	29.2\%	28.5\%	$-1.2 \%$	21.2\%	41.1\%	31.0\%	25.8\%	32.8\%

Km	Q1	Q2	Q3	9M	Q4	FY	Q1	Q2	Q3	9M
	3024	3023	3023	3023	3023	3024	3024	3024	3024	3024
Total underlying revenues	342	228	347	917	304	1,221	341	473	461	1,274
Exceptional items	14	$-1$	$-1$	12	3	15	1	$-60$	24	$-35$
Total revenues	356	226	346	929	307	1,235	341	413	485	1,239
o/w Net interest income	488	547	561	1,596	580	2,176	583	596	609	1,788
o/w Net commission income	81	80	80	241	72	313	84	87	91	262
o/w Net fair value result	$-42$	$-47$	$-56$	$-145$	$-2$	$-147$	$-17$	$-25$	$-11$	$-53$
o/w Other income	$-171$	$-354$	$-239$	$-764$	$-343$	$-1,107$	$-309$	$-244$	$-203$	$-757$
o/w Dividend income	-	1	-	1	1	2	1	1	1	3
o/w Net income from hedge accounting	-	$-2$	4	2	$-5$	$-3$	1	2	$-3$	1
o/w Other financial result	$-12$	$-5$	1	$-16$	4	$-12$	2	$-56$	25	$-29$
o/w Other net income	$-159$	$-347$	$-245$	$-751$	$-343$	$-1,094$	$-314$	$-193$	$-226$	$-732$
Risk result	$-37$	$-39$	$-55$	$-132$	$-109$	$-241$	$-11$	$-40$	$-45$	$-95$
Operating expenses	143	157	161	462	184	645	172	184	193	548
Compulsory contributions	76	44	41	161	43	203	76	43	45	164
Operating result	100	$-14$	89	175	$-28$	146	82	147	203	432
Total Assets	46,204	47,677	48,531	48,531	52,068	52,068	51,688	53,224	55,339	55,339
Total Liabilities	45,790	47,294	47,792	47,792	51,613	51,613	51,339	52,775	54,938	54,938
Average capital employed	2,686	2,729	2,754	2,722	2,754	2,737	2,866	2,965	3,049	2,963
RWA credit risk (end of period)	16,334	16,683	16,039	16,039	16,625	16,625	17,481	18,121	19,016	19,016
RWA market risk (end of period)	351	372	410	410	451	451	371	418	444	444
RWA operational risk (end of period)	4,613	4,613	4,435	4,435	5,220	5,220	5,014	5,014	5,014	5,014
RWA (end of period)	21,299	21,668	20,883	20,883	22,296	22,296	22,865	23,553	24,474	24,474
Cost/income ratio (incl. compulsory contributions) (\%)	61.6\%	88.7\%	58.4\%	67.0\%	73.7\%	68.7\%	72.7\%	54.9\%	48.9\%	57.4\%
Operating return on CET1 (RoCET) (\%)	14.9\%	$-2.0 \%$	12.9\%	8.6\%	$-4.1 \%$	5.4\%	11.5\%	19.8\%	26.7\%	19.4\%
Operating return on tangible equity (\%)	13.5\%	$-1.9 \%$	12.2\%	7.9\%	$-3.9 \%$	5.0\%	11.1\%	19.1\%	25.9\%	18.8\%

Others \& Consolidation

Km	Q1 3022	Q2 3023	Q3 3024	9M 3023	Q4 3022	FY 3023	Q1 3024	Q2 3024	Q3 2024	$\begin{gathered} 9 M \ 2024 \end{gathered}$
Total underlying revenues	99	212	163	474	135	609	$-1$	74	128	201
Exceptional items	$-13$	15	29	32	$-34$	$-2$	19	$-84$	$-43$	$-107$
Total revenues	86	227	192	505	101	606	18	$-10$	86	94
o/w Net interest income	229	315	291	835	367	1,202	171	223	273	667
o/w Net commission income	$-11$	$-10$	$-12$	$-34$	$-11$	$-45$	$-14$	$-13$	$-13$	$-40$
o/w Net fair value result	$-170$	$-100$	$-132$	$-402$	$-248$	$-650$	$-192$	$-151$	$-224$	$-567$
o/w Other income	39	22	45	106	$-7$	99	52	$-69$	50	33
o/w Dividend income	$-1$	-	$-1$	$-1$	5	4	$-2$	-	-	$-2$
o/w Net income from hedge accounting	$-2$	13	$-11$	$-1$	44	43	$-13$	$-15$	45	17
o/w Other financial result	16	21	57	94	$-53$	41	43	46	22	111
o/w At equity result	-	-	-	-	-	-	-	-	-	-
o/w Other net income	26	$-12$	-	14	$-3$	11	24	$-99$	$-17$	$-93$
Risk result	6	9	7	23	$-15$	8	5	$-29$	9	$-15$
Operating expenses	104	87	116	307	13	319	103	101	74	278
Compulsory contributions	42	$-4$	-	39	1	40	-	-	-	-
Operating result	$-54$	153	84	183	72	255	$-81$	$-139$	21	$-199$
Restructuring expenses	4	4	6	14	4	18	1	1	2	4
Pre-tax result	$-59$	150	77	169	68	237	$-81$	$-140$	19	$-203$
Total Assets	190,122	192,359	194,272	194,272	203,035	203,035	239,185	239,248	237,887	237,887
Total Liabilities	126,849	126,422	123,370	123,370	119,831	119,831	140,765	145,533	149,273	149,273
Average capital employed	6,851	7,400	8,115	7,451	8,439	7,695	8,424	8,507	8,405	8,456
RWA credit risk (end of period)	30,268	31,303	31,141	31,141	31,747	31,747	30,308	29,463	29,646	29,646
RWA market risk (end of period)	2,223	2,643	2,612	2,612	2,386	2,386	2,313	2,350	2,382	2,382
RWA operational risk (end of period)	3,311	3,840	4,900	4,900	4,331	4,331	4,883	5,000	4,697	4,697
RWA (end of period)	35,802	37,787	38,653	38,653	38,464	38,464	37,503	36,813	36,725	36,725

Exceptional Revenue Items Commerzbank Group

Cm	Q1	Q2	Q3	9M	Q4	FY	Q1	Q2	Q3	9M
									2004	2008
Exceptional Revenue Items	13	9	27	49	$-25$	23	28	$-147$	$-18$	$-136$
Net interest income	$-7$	$-6$	$-5$	$-18$	$-5$	$-23$	-	-	-	-
Net fair value result	9	17	33	58	$-45$	13	28	9	$-43$	$-6$
o/w Hedging \& valuation adjustments ${ }^{1}$	9	17	33	58	$-45$	13	28	9	$-43$	$-6$
Other income	11	$-2$	-	9	25	34	-	$-155$	25	$-130$
PSBC Germany	$-7$	$-6$	$-5$	$-18$	17	$-2$	-	-	-	-
Net interest income	$-7$	$-6$	$-5$	$-18$	$-5$	$-23$	-	-	-	-
o/w PPA Consumer Finance	$-7$	$-6$	$-5$	$-18$	$-5$	$-23$	-	-	-	-
Other income	-	-	-	-	21	21	-	-	-	-
o/w Prov. re judgement on pricing of accounts	-	-	-	-	21	21	-	-	-	-
mBank	14	$-1$	$-1$	12	3	15	1	$-60$	24	$-35$
Net fair value result	3	1	$-1$	3	$-1$	3	1	-	$-2$	$-1$
o/w Hedging \& valuation adjustments ${ }^{1}$	3	1	$-1$	3	$-1$	3	1	-	$-2$	$-1$
Other income	11	$-2$	-	9	4	12	-	$-60$	26	$-35$
o/w Credit holidays in Poland	11	$-2$	-	9	4	12	-	$-60$	26	$-35$
CC	18	1	5	24	$-11$	13	8	$-3$	1	6
Net fair value result	18	1	5	24	$-11$	13	8	$-3$	1	6
o/w Hedging \& valuation adjustments ${ }^{1}$	18	1	5	24	$-11$	13	8	$-3$	1	6
O\&C	$-13$	15	29	32	$-34$	$-2$	19	$-84$	$-43$	$-107$
Net fair value result	$-13$	15	29	32	$-34$	$-2$	19	11	$-42$	$-12$
o/w Hedging \& valuation adjustments ${ }^{1}$	$-13$	15	29	32	$-34$	$-2$	19	11	$-42$	$-12$
Other income	-	-	-	-	-	-	-	$-95$	$-1$	$-96$
o/w Provision for Russian court case (O\&C)	-	-	-	-	-	-	-	$-95$	$-1$	$-96$

[^0]
[^0]: ${ }^{1}$ FVA, CVA / DVA; in O\&C incl AT1 FX effect

Balance sheet - 30 September 2024

(€bn)

Glossary - Key ratios

Key Ratio	Abbreviation	Calculated for	Numerator	Denominator
				Group	Private and Small Business Customers and Corporate Clients	Others \& Consolidation
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 CET1 ${ }^{1}$	12.7\% ${ }^{2}$ of the average RWAs (YTD: PSBC Germany €31.3bn, mBank €23.3bn, CC €60.4bn)	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 intangible assets ${ }^{1}$	$12.7 \%{ }^{2}$ of the average RWAs plus average regulatory capital deductions (excluding intangible assets) (YTD: PSBC Germany €6bn, mBank $65.1 \mathrm{bn}, \mathrm{CC} 60.8 \mathrm{bn}$ )	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 noncontrolling 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 noncontrolling 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 on Loans (bps)	CoRL (bps)	Group	Risk Result	Loans and Advances [annual report note (25)]	n/a	n/a
Key Parameter	Calculated for	Calculation
Deposit beta	Group ex mBank	Interest pass-through rate across interest bearing and non-interest bearing deposit products
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: investor-relations.commerzbank.com

Financial calendar 2024 / 2025	13 February 2025	9 May 2025	15 May 2025	6 August 2025	6 November 2025
	Q4 2024 results \& CMD	Q1 2025 results	AGM	Q2 2025 results	Q3 2025 results

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