Commerzbank AG

Investor Presentation • Aug 7, 2024

Strong business momentum outlook confirmed

Analyst conference - Q2/H1 2024
Updates after conference call:
MREL, LCB ratio, HOLA/level 1

At a glance

	G2 2024	$\begin{gathered} \text { vs } \ \text { Q2 } 23 \end{gathered}$	H1 2024	$\begin{gathered} \text { vs } \ \text { H1 } 23 \end{gathered}$	Targets 2024
Revenues	€2,668m	$+1 \%$	€5,415m	$+2 \%$	Net interest income $¬ 8.1 \mathrm{bn}$ Net commission income 4\% growth
Risk result	-€199m	$-4 \%$	-€274m	$-1 \%$	$<€ 800 \mathrm{~m}$ incl. usage of TLA
Net result	€538m	$-5 \%$	€1,285m	$+12 \%$	Above last year
Cost income ratio	$60 \%$	$+2 p p$	$59 \%$	$-3 p p$	$\sim 60 \%$
RoTE	7.3\%	$-0.5 p p$	8.9\%	$+0.8 p p$	8\%
CET1 ratio	14.8\%	$+0.3 p p$	14.8\%	$+0.3 p p$	$>14 \%$
Capital return	Applied for approval of first buy-back tranche				$\geq 70 \%$

Manfred Knof CEO

Strong business momentum in 2024

Increased earnings based on strong client business despite burdens outside ongoing business

RoTE
$(\%)$
$5.4 \quad 8.1$
$\frac{5.4}{8.1}$
$\frac{8.1}{8.9}$

CET1 ratio
$(\%)$
$13.7 \quad 14.4$
14.8

H1 22 H1 23 H1 24

Improved return profile targeting RoTE of at least 8\% for 2024 subject to further development of legal provisioning needs

Strong capital ratio underpins significant capital return potential

Strong performance in a dynamic macro environment

Delayed pick-up of German GDP

Wage inflation requires high cost discipline and could impact rates trajectory

Pick-up in investment loan demand from corporate clients, but still from a low base

Customer-centric business model with high asset quality risk result driven by single cases

Delivering on management priorities for 2024

Ensure delivery of targeted capital return

Grow
fee income

Strict performance \& execution management

Strengthen customer
loyality

Improve employee satisfaction

Applied for first tranche of next buyback with H1 results

Continued good progress in Q2 - Aquila Capital acquisition closed in June

Continuous improvement process delivering on complexity reduction

Successful launch of small merchant focused mobile digital payment service by Commerz Globalpay (JV with Global Payments)

Multi-year wage increases for all employees based on collective bargaining agreement

Key take-aways from H1 2024

Moving Forward

We had a very strong H1 2024

We confirm our outlook for 2024

We target a pay-out ratio ${ }^{1}$ of at least $70 \%$

Bettina Orlopp CFO

Strong Q2 operating result of $€ 0.9$ bn despite burdens of $€ 0.4$ bn

Revenues (€m)	Q2 23	Q1 24	Q2 24
Revenues	2,629	2,747	2,668
Costs	1,533	1,588	1,599
Cost-income-ratio (CIR)	$56 \%$	$56 \%$	$60 \%$

Risk (€m)	Q2 23	Q1 24	Q2 24
	208	-76	-199
Risk result
Top-level adjustment (TLA)	456	423	336
Non-performing exposure (NPE) ratio	$1.1 \%$	$0.8 \%$	$0.8 \%$

Result (€m)	Q2 23	Q1 24	Q2 24
Operating result	888	1,084	870
Net result	565	747	538
RoTE	$7.9 \%$	$10.5 \%$	$7.3 \%$

Capital	Q2 23	Q1 24	Q2 24
CET1 ratio	$14.4 \%$	$14.9 \%$	$14.8 \%$
RWA (€bn)	174	173	173

Revenue growth driven by strong customer business

Revenues

(€m)

H1 23: 5,297
H2 23: 5,164
H1 24: 5,415

Q1 24
Q2 24

Net interest income
Net commission income

Net fair value

Other Income (excl. FX loan prov.)
FX loan provisions
$1,947 \quad 2,130 \quad 2,166 \quad 2,136$
$915 \quad 841 \quad 831 \quad 798$
$72 \quad-17 \quad-67 \quad-202$
$54 \quad 23 \quad 60 \quad 28$
$31 \quad-347 \quad-234 \quad-340$

Q2 Revenues up 1.5\% YoY - solid revenue growth based on high level of client activity in both customer segments more than compensated $€ 395 \mathrm{~m}$ burdens from FX loan provisions, Credit Holidays in Poland and a Russia-related court case

Net interest income (NII) 2\% lower YoY and QoQ with volume growth partially offsetting higher pass-through rate (deposit beta)

Net commission income (NCI) up 4.5\% YoY mainly due to better securities business and increased activity level of corporate clients

Net fair value result (NFV) reflects partial offset of NII - in Corporate Clients good contribution from capital markets business

Other income excluding provisions for FX loans reflects burdens from Credit Holidays and Russia, partially compensated by positive contributions from legacy positions

NII maintained at high level despite ECB rate cut

Net interest income

$(€ \mathrm{~m})$

Corporate Clients (CC) growth of investment loans - QoQ lower NII contribution from deposits due to increasing deposit beta at stable volumes

Private and Small-Business Customers Germany (PSBC Germany) with ongoing growth in call deposits QoQ at positive margins partially offsetting higher beta. Additionally, early repayment of mortgages and day-count effects have lead to lower NII in PSBC, offset in O\&C
mBank with higher NII QoQ based on continued effective deposit margin management and loan growth

Others \& Consolidation (O\&C) with higher NII QoQ mainly reflecting other side of the effects from early repayment of mortgages and day-count in PSBC

Growth in loan volumes and call deposits

Loan volume (Group ex mBank)

(Quarterly average in $€$ bn)

Deposit volume (Group ex mBank)

(Quarterly average in $€$ bn)

CC $\square$ PSBC Germany

219	244	247	252	261	270
22	30	31	34	37	38	CC term/call
70	66	64	62	59	58	CC sight
45	50	60	70	83	92	PSBC term/call/ saving deposits
105	98	92	86	83	82	PSBC sight
Q1 23	Q2 23	Q3 23	Q4 23	Q1 24	Q2 24
$18 \%$	$20 \%$	$25 \%$	$30 \%$	$35 \%$	$39 \%$	Average beta

CC with growth in investment loans across client base
German mortgage business stable with new business above last quarter and up 23\% YoY

Consumer finance book stable at $€ 3.1$ bn

CC largely stable deposit volume with ongoing shift from sight to term and call deposits

Strong growth in PSBC deposit volume driven by inflows into call accounts and reduced outflow of sight deposits

NII outlook $-\epsilon 8.1$ bn confirmed with upside potential

Development of NII ${ }^{1}$
$(\epsilon b n)$

FY 23

ECB deposit rates

Average ECB deposit rate expected at $3.8 \%$ in 2024
( $\sim 45 \mathrm{~m}$ annualized sensitivity to $+/-10$ bps in ECB rate)

Deposit volume

Deposit volume increased by $\sim 9$ bn in Q 2 due to strong inflow of call money - in line with lower rates offered to customers softer trend expected in the next quarters

Deposit beta ${ }^{2}$

Q2 average deposit beta in Germany at 39\% reflecting strong inflow of call money and mix shift in CC - average beta for 2024 expected at 39\% subject to volume development ( $\sim 90 \mathrm{~m}$ annualized sensitivity to $+/-1$ pp beta change)

Replication portfolio

Deposit replication portfolio increased by $€ 10$ bn to $€ 133$ bn; replication portfolios expected to contribute additional $\sim 400 \mathrm{~m}$ in 2024 vs 2023; a larger replication portfolio supports future NII while reducing 2024 results

mBank

NII expected significantly above 2023 level

1) Outlook based on forward rates as of end July 2024
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

Growth in fee business - on track to reach FY 4\% target

Net commission income

(€m)

Promising 4.5\% growth of fee income year on year

Corporate Clients (CC) with good contribution mainly from the syndicated business leading to $2.7 \%$ higher NCI YoY

Private and Small-Business Customers Germany (PSBC Germany) with 5.4\% higher NCI YoY driven by the securities business
mBank has increased margins and benefits from FX effects YoY

Broad-based growth of NCI year on year

Net commission income Corporate Clients

(€m)

Net commission income PSBC Germany

(€m)

Corporate Clients

In Capital Markets YoY strong growth from DCM business (bond issuance and syndications), more than offsetting slightly weaker FX business

Trade finance with YoY slight increase

Private and Small-Business Customers Germany

YoY increased securities revenues from volume growth and higher number of transactions

QoQ securities volume up €3bn with €1.1bn from net new money in Q2

Payments business nearly stable YoY

Costs continue to be on track

Costs
(€m)

Operating expenses $\square$ Compulsory contributions

Total Group costs below last year due to lower compulsory contribution

Operating expenses for Group ex mBank are slightly higher than last year because of general salary increases in Q3 2023. 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

Risk result on 2023 level - guidance 2024 unchanged

Risk result
(€m)
H1 23: -276
H2 23: -342

Cost of risk on
loans
$1.1 \%$
$1.1 \%$
$1.0 \%$
$0.8 \%$
$0.8 \%$
$0.8 \%$
$0.8 \%$
Non-performing
exposure ratio
Top-level
adjustment
(€m)

H1 24: -274
Q1 24 Q2 24

-68

Cost of risk remains at low 20bp and NPE-ratio at $0.8 \%$

Overall $€ 199 \mathrm{~m}$ risk result driven by single cases

Therein around $€ 110 \mathrm{~m}$ from methodology updates including introduction of collective staging that resulted in $€ 15$ bn increase of stage 2 exposure and $€ 34 \mathrm{~m}$ risk result

Partially offset by $€ 87 \mathrm{~m}$ TLA release due to re-calculation. Therein TLA reduction in PSBC (from $€ 169 \mathrm{~m}$ to $€ 147 \mathrm{~m}$ ) and in CC (from $€ 252 \mathrm{~m}$ to $€ 187 \mathrm{~m}$ ); TLA of O\&C stable at $€ 2 \mathrm{~m}$

Remaining $€ 336 \mathrm{~m}$ TLA available to cover expected secondary effects from geopolitical crises, uncertainties from inflation, and the impact of the current restrictive monetary policy

Convincing performance of customer segments

CC: strong revenues from all client groups

Operating result

$(\mathrm{€m})$

Q2 23

Q3 23

Q4 23

Q1 24

Q2 24

P\&L CC

	Q1 23	Q2 23	Q1 24	Q2 24
Revenues	1,080	1,127	1,221	1,199
o/w Mittelstand	603	652	657	678
o/w International Corporates	249	267	295	283
o/w Institutionals	193	208	232	224
o/w others	34	-	37	14
Risk result	54	$-169$	$-54$	$-121$
Operating expenses	514	514	507	526
Compulsory contributions	78	$-6$	-	1
Operating result	541	450	660	551
RWA (end of period in €bn)	82.0	82.7	80.6	81.4
CIR (incl. compulsory contributions) (\%)	54.8	45.1	41.6	43.9
Operating return on equity (\%)	20.8	17.1	25.4	21.5

11 23	H1 24
2,207	2,420
1,256	1,336
516	578
401	456
34	51
-115	$-175$
1,028	1,033
72	1
992	1,211
82.7	81.4
49.9	42.7
19.0	23.4

Mittelstand with growth in syndicated finance YoY; growth QoQ mainly from financial markets business and syndicated finance

International Corporates with good business development YoY; QoQ lower revenues mainly due to seasonal capital markets business

Institutionals benefits from YoY improved bond business
RWA increased 1\% QoQ mainly due to higher credit risk RWA from loan growth

Good business momentum in PSBC Germany

Operating result

$(\epsilon \mathrm{m})$

P\&L PSBC Germany

$\epsilon$ m	Q1 23	Q2 23	Q1 24	Q2 24	H1 23	H1.24
Revenues	1,146	1,050	1,166	1,067	2,196	2,233
o/w Private Customers	834	769	885	804	1,602	1,689
o/w Small-Business Customers	229	222	234	225	451	459
o/w Commerce Real	83	59	47	38	142	85
Risk result	$-91$	$-9$	$-15$	$-10$	$-100$	$-25$
Operating expenses	702	723	714	715	1,426	1,428
Compulsory contributions	64	18	15	31	82	46
Operating result	289	299	423	311	588	734
RWA (end of period in $\epsilon$ bn)	32.4	31.8	32.1	31.2	31.8	31.2
CIR (incl. compulsory contributions) (\%)	66.9	70.6	62.4	69.9	68.7	66.0
Operating return on equity (\%)	28.0	29.3	42.0	31.3	28.7	36.8

YoY 4.5\% revenue growth in Private Customers. Good deposit growth in comdirect and with retail customers. Securities business of comdirect benefits from increased transactions while wealth management mainly benefits from increased securities volumes

Small-Business Customers with YoY stable customer activity
Commerce Real with better commission income YoY - Q2 23 benefitted from one-off revaluation effects

Stable customer base in Germany

mBank with excellent customer business

Operating result

$(\epsilon \mathrm{m})$

excluding provisions for legal risks of FX loans and credit holidays:

262	335	323	308	400	447
P\&L mBank
Em		Q1 23	Q2 23	Q1 24	Q2 24
Revenues		356	226	341	413
Risk result		$-37$	$-39$	$-11$	$-40$
Operating expenses		143	157	172	184
Compulsory contributions		76	44	76	43
Operating result		100	$-14$	82	147
RWA (end of period in €bn)		21.3	21.7	22.9	23.6
CIR (incl. compulsory contributions) (\%)		61.6	88.7	72.7	54.9
Operating return on equity (\%)		14.9	$-2.0$	11.5	19.8
Provisions for legal risks of FX loans of mBank		$-173$	$-347$	$-318$	$-240$
Credit holidays in Poland		11	$-2$	-	$-60$

Operating result excluding additional provisions for FX loans and credit holidays increased to record $€ 447 \mathrm{~m}$ with record interest margins on deposits

Volume of FX loans before deductions at $€ 1.5 \mathrm{bn}$
Outstanding provisions for legal risk of €1.95bn (thereof €0.7bn for repaid loans as well as for legal fees)
So far $€ 1.25$ bn already paid out for court cases and settlements
The number of new court cases has significantly declined over the last two quarters also due to ongoing successful settlements with customers

Lower but still significant burdens from FX loans expected in H2

Others \& Consolidation's result reflects one-offs

Operating result
( $€ \mathrm{~m})$

P\&L O\&C

$\mathbf{6 m}$	Q1 23	Q2 23	Q1 24	Q2 24
Revenues	86	226	18	-10
o/w Net interest income	229	315	171	223
o/w Net commission income	-12	-11	-14	-13
o/w Net fair value result	-170	-100	-192	-151
o/w Other income	39	22	53	-69
Risk result	6	9	5	-29
Operating expenses	104	87	103	101
Compulsory contribution	42	-4	-	-
Operating result	$\mathbf{- 5 5}$	$\mathbf{1 5 3}$	$\mathbf{- 8 1}$	$\mathbf{- 1 3 9}$
RWA (end of period in $€ \mathrm{bn}$ )	35.8	37.8	37.5	36.8

H1 23	H1 24
312	8
544	394
-22	-26
-270	-343
60	-17
15	-24
191	204
39	-
98	-220
37.8	36.8

NII lower YoY due to ending of remuneration of minimum reserves at ECB since end of Q3 23 and effects from adjustments to the replication portfolio in Q4 23

YoY lower NFV mainly due to basis effects from derivatives and residual valuation effects after application of hedge accounting

Other income includes $€ 95 \mathrm{~m}$ Russia related burden

Risk result in O\&C due to single legacy case

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

RWA development by risk types
( $\epsilon$ bn $\mid$ eop)

Market risk
Operational risk
Credit risk

Transition of CET1 ratio (\%)

Credit RWA overall stable with higher RWA in CC and mBank offset by O\&C and PSBC Germany

Capital driven by first-time consolidation of Aquila Capital in June

No inclusion of net result in capital position in H1 2024

Increased capital distribution for 2024

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

Unchanged 2024 targets

NII $€ 8.1$ bn and $4 \%$ growth in NCI

Cost-income-ratio of $\sim 60 \%$

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

CET1 ratio $>14 \%$

Net result above last year $\rightarrow$ 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

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
Glossary ..... 63
Contacts \& financial calendar ..... 64
Disclaimer ..... 65

Overview Commerzbank Group

Moving Forward

• Strategy 2027 -
  
• $2^{\text {nd }}$ largest listed bank in Germany
• Member of German blue chip index DAX 40
• Approximately 37k FTE
• Market capitalisation $~ € 16 b n^{1}$
• Total assets $~ € 560 b n$

Customer segments

• Corporate Clients
• Private and Small-Business Customers
• Germany including Commerz Real
• 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 Germany
• Austria and Switzerland (DACH) and selected future-oriented sectors as well as leading German multinational companies

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)

0

commdirect

• Self-directed customers with high digital affinity
• Excellent brokerage product portfolio for beginners to professionals

Small-Business Customers

• Customers with an entrepreneurial background under $€ 15 \mathrm{~m}$ turnover
• Our product portfolio is a one-stop 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 - addressing needs via our two-brand strategy

One of the leading banks for private and smallbusiness customers in Germany with approximately 11 m customers
€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

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 $+8 \%$ 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

Page has been updated 2 Sep 2024

Group		Q1 2023	Q2 2023	O1 2024	Q2 2024
Total revenues	€m	2,668	2,629	2,747	2,668
Risk result	€m	$-68$	$-208$	$-76$	$-199$
Personnel expenses	€m	899	869	918	920
Administrative expenses (excl. depreciation)	€m	381	409	385	406
Depreciation	€m	185	203	193	198
Compulsory contributions	€m	260	52	91	75
Operating result	€m	875	888	1,084	870
Net result	€m	580	565	747	538
Cost/income ratio (incl. compulsory contributions)	\%	64.6	58.3	57.8	59.9
Accrual for potential AT1 coupon distribution current year	€m	$-48$	$-48$	$-49$	$-48$
Net RoE	\%	8.0	7.6	10.1	7.1
Net RoTE	\%	8.3	7.9	10.5	7.3
Total assets	€m	497,357	501,603	551,977	560,087
Deposits (amortised cost)	€m	363,235	363,122	390,279	395,204
Loans and advances (amortised cost)	€m	269,405	270,892	273,966	278,400
RWA	€m	171,528	173,977	173,081	172,887
CET1	€m	24,368	25,116	25,769	25,520
CET1 ratio	\%	14.2	14.4	14.9	14.8
Total capital ratio (with transitional provisions)	\%	18.9	19.0	19.5	19.8
Leverage ratio	\%	4.8	4.9	4.6	4.5
Liquidity coverage ratio (LCR) 1	\%	139.1	128.4	144.9	147.0
Net stable funding ratio (NSFR)	\%	127.2	125.4	131.5	130.3
NPE ratio	\%	1.1	1.1	0.8	0.8
Group CoR on Loans (CoRL) (year-to-date)	bps	10	21	11	20
Full-time equivalents excl. junior staff (end of period)		35,971	35,935	36,508	36,730

H1 2023
H1 2024
5,297
5,415
$-276$
$-274$
1,767
1,838
790
791
388
391
312
166
1,764
1,954
1,145
1,285
61.5
58.8
$-97$
$-97$
7.8
8.6
8.1
8.9
501,603
501,603
363,122
270,892
270,892
270,892
173,977
25,116
25,520
14.4
14.8
19.0
19.8
4.9
4.5
128.4
147.0
125.4
130.3
1.1
0.8
21
20
35,935
36,730

[^0]
[^0]: 1) LCR ratio as of 30.06.2024 updated to $147 \%$ from $149 \%$ due to correction of a double consideration of new issuances

Key figures Commerzbank share

Figures per share
$(\epsilon)$

	YE 2021	YE 2022	YE 2023	G2 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	16.8
Net asset value per share (€)	20.50	21.60	23.33	24.64
Low/high Xetra intraday prices (€)	$4.70 / 7.19$	$5.17 / 9.51$	$8.31 / 12.01$	$10.15 / 15.83$

Operating result per share ${ }^{1}$
EPS $^{1}$

[^0]
[^0]: 1) Based on average number of outstanding shares in the period

German economy expected to stay weak

ifo Business Climate index

(index, 2015=100)

Latest development

The German economy remains weak. After rising slightly in the first quarter, real gross domestic product fell again slightly in the second quarter. Apart from these short-term fluctuations, economic output has been stagnating for more than two years.
The recent decline in sentiment indicators has put a noticeable damper on hopes of an economic upturn in the second half of the year. The dampening effect of the interest rate hikes implemented by the ECB and many other Western central banks over the past two years is clearly only slowly diminishing. The same applies to the impact of higher energy prices.
The number of unemployed people has risen in recent months due to the weak economy. However, unemployment remains significantly lower than it has been for most of the past 40 years.
The inflation rate has only been just above the ECB target of $2 \%$ for several months. However, excluding the often highly volatile energy and food prices, the core inflation rate is still significantly higher at just under $3 \%$.

GDP $^{1}$

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

Outlook for 2024

In view of the recent fall in leading indicators, it is increasingly likely that the weak trend of the German economy will continue well into the second half of the year. It will obviously take longer for the economy to adjust to the higher interest rates. The adjustment of construction output to the significantly lower demand due to higher financing costs is therefore unlikely to be complete.
However, a recovery can be expected in the coming year. This is because the burden from high interest rates should then gradually ease and rising real wages should boost private consumption. Nonetheless, a strong upturn is not to be expected. This is because numerous structural problems are slowing down the German economy and financial policy is likely to be rather restrictive.
Following an initial step in June, the ECB is likely to cut interest rates further, albeit at a fairly cautious pace and to a lesser extent than at the start of previous recovery phases. After all, it will become increasingly clear in the coming months that the inflation problem has not yet been solved. In fact, both in Germany and in the eurozone as a whole, service prices will continue to rise strongly as a result of rapidly increasing wage costs. The core inflation rate is therefore likely to stabilize at well above $2 \%$ and prevent the ECB from easing its monetary policy.

Russia net exposure reduced to $€ 153$ m in Q2 2024

Russia exposure

	2022		2023			2024
Net exposure ( $€ \mathrm{~m}$ )	18 Feb	31 Dec	31 Mar	30 Jun	30 Sep	31 Dec	28 Mar	28 Jun
Corporates	621	261	217	184	161	148	116	81
- thereof at Eurasija	392	61	46	37	31	21	11	6
Banks	528	46	44	15	15	14	13	13
Sovereign (at Eurasija)	127	87	66	57	45	47	37	54
Pre-export finance	590	350	318	320	190	135	5	5
Total	1,866	744	645	576	411	344	171	153

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 $€ 153 \mathrm{~m}$

Additionally, Eurasija holds domestic RUB deposits of equivalent $€ 0.3$ bn at Russian financial institutions, mainly Central Bank of Russia
$€ 95 \mathrm{~m}$ legal provision booked for court case in Russia

Overall exposure with adequate risk provisions including TLA

Exposure $^{1}$

$(\in b n)$

Significant exposure increase of $€ 15$ bn in stage 2 driven by introduction of collective staging

Risk provisions (€m)
3,802	3,733	3,872	3,893	4,005
456	435	453	423	336
2,031	2,246	2,255	4,354	2,516	TLA
					Stage 3
					Stage 2
648	704	834	727	796
357	343	339	303	355
Q2 23	Q3 23	Q4 23	Q1 24	Q2 24
41.7\%	42.9\%	47.5\%	47.9\%	47.0\%
3.3\%	2.9\%	3.2\%	2.8\%	1.9\%
0.1\%	0.1\%	0.1\%	0.1\%	0.1\%

Overall level of TLA decreased to €336m
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 $A C$ and $F V O C I$; figures of previous quarters partly adjusted)
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 $€ 139$ 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: Suppliers are a major part of our portfolio and are expected to successfully manage the current challenges. The very strong OEM profit levels in 2022 and 2023 have weakened in 2024 as expected
Chemicals/Plastics: Our customers are predominantly well diversified (geographically, from the product side and customer markets) and the business models sustainable and resilient
Construction/Metals: Construction and metal portfolio diversified with high proportion of borrowers with investment grade ratings
Energy/Environment: Stable sector. Increase of expected loss and risk density due to rating downgrade of a single customer in Q2

Commercial Real Estate (asset-based)

Portfolio development

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

Top 5 asset classes 06/24
(€bn | EaD)
Investment grade share (in \%)

Location 06/24 ${ }^{1}$

(€bn | EaD Performing)

A-cities B-cities C-cities D-cities
B-cities
Germany

Fixed interest period 06/24
(€bn | EaD)

83\%	82	$71 \%$	$70 \%$	$77 \%$
3.5	3.1	1.6	0.8	0.3
		0.8	0.2	0.3
Office	Residential	Retail	Logistics / Production	Hotels / Tourism

Performing NPE
Group ex mBank (mBank CRE exposure €2.2bn)

1) City categories according to Bulwiengesa. Category A represents the seven most attractive and liquid real estate cities in Germany
2) Until further notice or variable interest rate

7 August 2024

Portfolio

• Portfolio amounts to 9.6 €bn of which 0.3 €bn is non- performing exposure ( 3\% of total portfolio)
• Sound rating profile with a high share of $79 \%$ with investment grade quality
• EaD share IFRS9-stages: 87\% in S1 (89\% 03/24), $9 \%$ in S2 (7\% 03/24) and $4 \%$ in S3 (4\% 03/24)
• Assets focused on most attractive A-cities. Over $99 \%$ of financed objects are located in Germany
• Offices and residential with the highest share of the portfolio (together 6.5 €bn)
• Average LTV is $52 \%$ - largest asset class office with $51 \%$ LTV
• Nearly $50 \%$ of the portfolio with full or partial recourse to the sponsor or borrower
• 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 nearly unchanged in Q2/24 - risk quality remained stable so far:

Rating profile with a share of $93.6 \%$ in investment grade ratings (03/24: 92.9\%); poor rating classes $4 . x / 5 . x$ with $1.3 \%$ share only

Vintages of recent years developed more favorably so far; NPE-ratio remains at a low level of less than $0.4 \%$ (coverage $88 \%$ )

New business in Q2/24 with €2.5bn around 11\% higher than in previous quarter

Repayment rates slightly down from $2.49 \%$ to $2.42 \%$

Portfolio guidelines and observations for PD, LtCV 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 $81.8 \%$ in Q2/24 ( $81.9 \%$ in Q1). German BLA is more conservative than the internationally used LIV 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 ${ }^{1}$ : CHF-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-Q2/24 is $€ 3.2 \mathrm{~m}$
Provision amount as of 06/24 includes $€ 1,901 \mathrm{~m}$ for CHF and $€ 49 \mathrm{~m}$ for other currencies

Number of settlements (cumulative)
All active loan holders have received settlement proposals

1,800	13,321	15,166	17,016
2022	2023	03/24	06/24

Number of CHF loan contracts in court (pending cases)
Number of new cases in Q2/24
$37 \%$ lower than in Q4/23

	14,779	18,382	21,411	21,772	21,621
8,472	2,005	15,722	17,852	17,856	17,338
7,643	12,714
2020	2021	2022	2023	03/24	06/24

1) Extract of mBank Investor presentation Q2 2024, PLN converted into EUR by end of quarter FX rates

[^0]repaid contracts
active contracts

[^0]: 7 August 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

15

10
8
7
6
5
4
3
2
1

ISS

ESG QualityScores

Commerzbank assigned with low ESG risks by ISS ESG QualityScores

• Social QualityScore 2,
• Governance QualityScore 3,
• Environmental QualityScore 4

4CDP

Climate Change Rating
Rated B, 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

Good development of sustainable products in H1 2024

Sustainable products

$(\epsilon b n)$

Advisory products
(no balance sheet impact, $\epsilon$ bn)

Co

Corporate Clients

• Accompanied ESG bond transactions (e.g. green and social bonds)*

• Sustainable investment solutions for corporate clients**
  

• Green infrastructure finance portfolio**

• Sustainability-linked loans*
• KfW sustainability-linked programmes*
  

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

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

Development of Green Infrastructure Finance portfolio

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

Commerzbank Green Bond Framework ${ }^{1}$

SUSTAINALYTICS

The Green Bond

Commerzbank

Green Bond Framework

SUSTAINALYTICS

SUSTAINALYTICS

Commerzbank, Bettina Orlopp, CFO, Frankfurt

Wind Onshore Wind Offshore PV

Germany USA GB Netherlands Finland Belgium Sweden France Spain Italy

Comfortable liquidity position

LCR

$(\% \mid$ eop $)$

Highly liquid assets
( $\epsilon$ bn $\mid$ eop)

1) LCR ratio as of Q2 2024 updated to $147 \%$ from $149 \%$ due to correction of a double consideration of new issuances
2) HQLA / level 1 as of Q2 2024 updated to 128.0 from 128.1 due to correction of issuer categorisation

Net stable funding ratio (NSFR)

Liquidity risk management

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

[^0]
[^0]: 1) LCR ratio as of Q2 2024 updated to $147 \%$ from $149 \%$ due to correction of a double consideration of new issuances

Funding plan very well progressed

Group funding structure ${ }^{1}$

Benchmarks / highlights

• Pfandbriefe:

€2bn dual tranche Pfandbriefe with
3 and 7 years maturities,
€1bn 10 year Mortgage-Pfandbrief

• Preferred senior:
  €500m 3NC2 Floating Rate Note
• Non-preferred senior:
  €750m 7NC6 year benchmark
• Tier 2:
  €750m 10NC5.5 year benchmark
• Various private placements of secured and unsecured funding
• Issuances in July 2024 (not included in figures): $€ 750 \mathrm{~m}$ Additional Tier 1 PerpNC 7.8 years and $€ 750 \mathrm{~m}$ Non-preferred senior 8NC7 benchmark

Issuance activities H1 2024
(€bn | nominal values)

Funding plan 2024 around €10bn, already 80\% are executed

[^0]
[^0]: 1) Based on balance sheet figures

Expected funding volume 2024 around $€ 10$ bn

Continued focus on diversification of funding

Group maturities until $2028^{2}$
(€bn)

2024
2025
2026
2027
2028

Well-balanced maturity profile

Mortgage Pfandbrief cover pool (06/2024)

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:
• Outstanding Pfandbriefe:

651\%

• Fixed rated Pfandbriefe

650.6 bn

• Cover surplus:

Aaa

Highlights

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

Public Sector Pfandbrief cover pool (06/2024)

Borrower / guarantor \& country breakdown

Currency breakdown

Cover pool details ${ }^{1}$

• Total assets:
  o/w municipal loans :
  o/w export finance loans :
• Fixed rated assets:
• Outstanding Pfandbriefe:
• Fixed rated Pfandbriefe:
• Euro
  $=$ USD
• GBP
• CHF
• $776.9 \mathrm{bn}$
  €9.1bn
  €2.6bn
  $77 \%$
  €9.2bn
  $62 \%$
• $\quad$ Cover surplus:
• Moody's rating:

Highlights

• Commerzbank utilises the public sector Pfandbrief to support its German municipal lending and guaranteed export finance business.
• $>75 \%$ are assets from Germany
• $89 \%$ of the assets are EURdenominated

Comfortable fulfilment of RWA and LRE MREL requirements

Page has been updated 12 August 2024

MREL Requirements and M-MDA

Based on data as of 30 June 2024, Commerzbank fulfils its current MREL RWA requirement for resolution group $\mathrm{A}^{1}$ 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

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

Distance to MDA

(\%)

442bps distance to MDA based on Q2 2024 CET1 ratio of $14.76 \%$ and 2023 SREP requirements
MDA unchanged compared to Q1 2024
Q2 2024 AT1 shortfall of 6bps - settlement of new AT1 in July
Well prepared for small MDA increase until YE 2024 due to upcoming increase of CCyB 2bps
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 €172.9bn as of Q2 2024. AT1 requirement of $1.922 \%$ and Tier 2 requirement of $2.563 \%$

Rating overview Commerzbank

As of 7 August 2024

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

Last rating events

Moody's has raised the outlook of Commerzbank's issuer credit rating and deposit rating to positive in April 2024

The outlook for the issuer credit rating was set to positive in November 2023 by S\&P Global as the bank reached key milestones in its transformation and realignment of its business model and achieved an improvement in profitability

1) Includes parts of client business (i.e. counterparty for derivatives)
2) Includes corporate and institutional deposits

Loan and deposit development

(€bn | quarterly average)

Corporate Clients

Private and Small-Business Customers

In CC, increase of loan volumes in all client groups
Deposit volumes increased in International Corporates and decreased in Mittelstand

Increase in deposit volume at PSBC Germany driven by call money

In PSBC Germany $>95 \%$ of deposits are insured ( $>65 \%$ statutory and almost $30 \%$ 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

$(\epsilon \mathrm{m})$

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

In Q2 24, the relevant market rates went upwards, moving the IAS19 discount rate to $4.0 \%$ in Q2 versus $3.7 \%$ at year-start. The present-valued pension obligations (DBO) therefore decreased, producing a YtD liability gain in OCI

On the same rates movement, pension assets produced a YtD asset loss in OCI due to lower bond valuations, which was partly compensated by equity gains

Together, pension obligations and pension assets produced a YtD net OCI gain of $+€ 89 \mathrm{~m}$ (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 109\% 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

Positive impact on CET1 ratio ${ }^{1}$ since increasing effect of the currency translation reserve slightly overcompensates higher FX driven credit risk RWA

Slight increase in credit risk RWA from FX effects mainly due to stronger USD ( $+€ 181 \mathrm{~m}$ ), GBP ( $+€ 62 \mathrm{~m}$ ), RUB ( $+€ 43 \mathrm{~m}$ ) and PLN ( $+€ 10 \mathrm{~m}$ ), partly offset by other currencies

Higher currency translation reserve mainly due to increase from USD ( $+€ 21 \mathrm{~m}$ ), RUB ( $+€ 18 \mathrm{~m}$ ), GBP ( $+€ 6 \mathrm{~m}$ ) and PLN ( $+€ 2 \mathrm{~m}$ )

FX rates $^{2}$	03:24	06:24
EUR / GBP	0.855	0.846
EUR / PLN	4.312	4.309
EUR / USD	1.081	1.071
EUR / RUB	100.402	93.346

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 2024 results and dividend 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 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 ${ }^{2}$

Group equity composition

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

Commerzbank Group

Km	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1
	(in)	(in)	(in)	(in)	(in)	(in)	(in)	(in)	(in)
Total underlying revenues	2,655	2,621	5,276	2,727	2,434	10,438	2,719	2,815	5,534
Exceptional items	13	9	21	27	$-25$	23	28	$-147$	$-118$
Total revenues	2,668	2,629	5,297	2,755	2,409	10,461	2,747	2,668	5,415
o/w Net interest income	1,947	2,130	4,076	2,166	2,126	8,368	2,126	2,078	4,204
o/w Net commission income	915	841	1,756	831	798	3,386	920	879	1,799
o/w Net fair value result	$-72$	$-17$	$-90$	$-67$	$-202$	$-359$	$-53$	$-4$	$-58$
o/w Other income	$-122$	$-324$	$-446$	$-175$	$-313$	$-933$	$-246$	$-284$	$-530$
o/w Dividend income	-	4	3	9	14	26	8	5	13
o/w Net income from hedge accounting	$-3$	10	7	$-8$	40	39	$-12$	$-13$	$-25$
o/w Other financial result	3	15	18	60	$-25$	52	45	$-6$	39
o/w At equity result	1	3	3	-	1	4	-	2	2
o/w Other net income	$-123$	$-355$	$-477$	$-235$	$-342$	$-1,055$	$-287$	$-272$	$-559$
Risk result	$-68$	$-208$	$-276$	$-91$	$-252$	$-618$	$-76$	$-199$	$-274$
Operating expenses	1,464	1,481	2,945	1,504	1,557	6,006	1,496	1,524	3,021
Compulsory contributions	260	52	312	45	59	415	91	75	166
Operating result	875	888	1,764	1,116	542	3,421	1,084	870	1,954
Restructuring expenses	4	4	8	6	4	18	1	1	2
Pre-tax result Commerzbank Group	871	885	1,756	1,109	537	3,403	1,083	869	1,953
Taxes on income	279	338	617	405	166	1,188	322	289	611
Minority Interests	12	$-19$	$-6$	20	$-24$	$-10$	14	42	57
Consolidated Result attributable to Commerzbank shareholders and investors in additional equity components	580	565	1,145	684	395	2,224	747	538	1,285
Total Assets / Total Liabilities	497,357	501,603	501,603	509,885	517,166	517,166	551,977	560,087	560,087
Average capital employed	24,048	24,729	24,391	25,365	25,642	24,945	25,694	25,730	25,704
RWA credit risk (end of period)	142,866	144,802	144,802	144,128	144,044	144,044	142,739	142,682	142,682
RWA market risk (end of period)	7,588	8,326	8,326	8,701	8,280	8,280	7,766	7,629	7,629
RWA operational risk (end of period)	21,074	20,849	20,849	20,797	22,790	22,790	22,576	22,576	22,576
RWA (end of period)	171,528	173,977	173,977	173,626	175,114	175,114	173,081	172,887	172,887
Cost/income ratio (incl. compulsory contributions) (\%)	64.6\%	58.3\%	61.5\%	56.2\%	67.1\%	61.4\%	57.8\%	59.9\%	58.8\%
Operating return on CET1 (RoCET) (\%)	14.6\%	14.4\%	14.5\%	17.6\%	8.5\%	13.7\%	16.9\%	13.5\%	15.2\%
Operating return on tangible equity (\%)	11.8\%	11.8\%	11.8\%	14.6\%	7.0\%	11.3\%	14.1\%	11.3\%	12.7\%
Return on equity of net result (\%)	8.0\%	7.6\%	7.8\%	9.2\%	5.0\%	7.4\%	10.1\%	7.1\%	8.6\%
Net return on tangible equity (\%)	8.3\%	7.9\%	8.1\%	9.6\%	5.2\%	7.7\%	10.5\%	7.3\%	8.9\%

Corporate Clients

Km	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1
	2023	2024	2025	2023	2023	2023	2024	2024	2024
Total underlying revenues	1,082	1,128	2,188	1,167	1,718	4,473	1,213	1,202	2,415
Exceptional Items	18	1	19	5	$-11$	13	8	$-3$	5
Total revenues	1,080	1,127	2,207	1,172	1,107	4,485	1,221	1,199	2,420
o/w Net interest income	627	696	1,323	718	741	2,782	710	678	1,389
o/w Net commission income	335	321	656	327	301	1,284	361	330	690
o/w Net fair value result	132	128	260	129	75	463	152	171	322
o/w Other income	$-15$	$-18$	$-32$	$-2$	$-9$	$-44$	$-1$	20	19
o/w Dividend income	-	2	3	-	2	4	-	2	2
o/w Net income from hedge accounting	-	$-1$	$-1$	$-1$	1	-	-	-	-
o/w Other financial result	$-2$	$-1$	$-3$	2	$-1$	$-2$	-	2	2
o/w At equity result	1	3	4	1	-	5	-	3	3
o/w Other net income	$-14$	$-21$	$-35$	$-3$	$-12$	$-50$	$-2$	13	12
Risk result	54	$-169$	$-115$	$-4$	$-36$	$-155$	$-54$	$-121$	$-175$
Operating expenses	514	514	1,028	522	561	2,111	507	526	1,033
Compulsory contributions	78	$-6$	72	-	-	73	-	1	1
Operating result	541	450	992	645	510	2,147	660	551	1,211
Total Assets	135,005	135,282	135,282	139,461	134,434	134,434	134,392	139,483	139,483
Total Liabilities	161,963	163,647	163,647	170,865	169,048	169,048	174,751	171,786	171,786
Average capital employed	10,393	10,512	10,458	10,508	10,521	10,481	10,378	10,273	10,338
RWA credit risk (end of period)	72,741	73,457	73,457	73,687	72,594	72,594	70,586	71,653	71,653
RWA market risk (end of period)	4,767	5,000	5,000	5,398	5,118	5,118	4,753	4,456	4,456
RWA operational risk (end of period)	4,474	4,271	4,271	4,168	5,122	5,122	5,287	5,258	5,258
RWA (end of period)	81,983	82,727	82,727	83,252	82,834	82,834	80,626	81,367	81,367
Cost/income ratio (incl. compulsory contributions) (\%)	54.8\%	45.1\%	49.9\%	44.6\%	50.7\%	48.7\%	41.6\%	43.9\%	42.7\%
Operating return on CET1 (RoCET) (\%)	20.8\%	17.1\%	19.0\%	24.6\%	19.4\%	20.5\%	25.4\%	21.5\%	23.4\%
Operating return on tangible equity (\%)	19.1\%	15.7\%	17.4\%	22.8\%	17.9\%	18.9\%	23.5\%	19.9\%	21.7\%

Private and Small-Business Customers

Km	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1
	2024	2024	2024	2024	2024	2024	2024	2024	2024
Total underlying revenues	1,495	1,284	2,778	1,399	1,162	5,359	1,507	1,539	3,046
Exceptional items	7	$-7$	-	$-6$	20	13	1	$-60$	$-59$
Total revenues	1,502	1,276	2,778	1,392	1,202	5,372	1,508	1,479	2,987
o/w Net interest income	1,091	1,119	2,209	1,157	1,018	4,384	1,244	1,177	2,421
o/w Net commission income	592	531	1,123	517	510	2,149	573	562	1,135
o/w Net fair value result	$-34$	$-45$	$-80$	$-64$	$-29$	$-173$	$-13$	$-23$	$-36$
o/w Other income	$-147$	$-328$	$-474$	$-218$	$-296$	$-988$	$-296$	$-236$	$-532$
o/w Dividend income	-	1	1	10	7	18	10	2	12
o/w Net income from hedge accounting	-	$-2$	$-3$	4	$-5$	$-3$	1	2	4
o/w Other financial result	$-12$	$-5$	$-17$	1	29	14	2	$-54$	$-52$
o/w At equity result	-	-	$-1$	$-1$	-	$-1$	$-1$	$-1$	$-1$
o/w Other net income	$-134$	$-321$	$-456$	$-232$	$-328$	$-1,016$	$-309$	$-186$	$-495$
Risk result	$-128$	$-49$	$-177$	$-94$	$-201$	$-472$	$-26$	$-49$	$-75$
Operating expenses	846	880	1,726	866	983	3,575	886	898	1,784
Compulsory contributions	140	62	201	45	57	303	91	74	165
Operating result	389	285	674	387	$-39$	1,022	505	458	963
Total Assets	172,230	173,963	173,963	176,152	179,698	179,698	178,399	181,355	181,355
Total Liabilities	208,616	211,608	211,608	215,713	228,351	228,351	236,525	243,088	243,088
Average capital employed	6,804	6,817	6,808	6,742	6,681	6,769	6,891	6,950	6,912
RWA credit risk (end of period)	39,857	40,042	40,042	39,300	39,703	39,703	41,845	41,566	41,566
RWA market risk (end of period)	598	683	683	691	777	777	700	823	823
RWA operational risk (end of period)	13,289	12,738	12,738	11,729	13,336	13,336	12,406	12,318	12,318
RWA (end of period)	53,744	53,463	53,463	51,720	53,816	53,816	54,952	54,707	54,707
Cost/income ratio (incl. compulsory contributions) (\%)	$65.6 \%$	$73.8 \%$	$69.4 \%$	$65.4 \%$	$86.6 \%$	$72.2 \%$	$64.8 \%$	$65.7 \%$	$65.2 \%$
Operating return on CET1 (RoCET) (\%)	$22.8 \%$	$16.7 \%$	$19.8 \%$	$23.0 \%$	$-2.3 \%$	$15.1 \%$	$29.3 \%$	$26.4 \%$	$27.9 \%$
Operating return on tangible equity (\%)	$21.8 \%$	$16.1 \%$	$18.9 \%$	$22.1 \%$	$-2.3 \%$	$14.5 \%$	$28.5 \%$	$25.9 \%$	$27.2 \%$
Provisions for legal risks of FX loans of mBank	$-173$	$-347$	$-520$	$-234$	$-340$	$-1,094$	$-318$	$-240$	$-558$
Operating result ex legal provisions on FX loans	562	632	1,194	622	301	2,117	823	698	1,521

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

Km	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1
	2022	2023	2024	2025	2026	2028	2024	2024	2024
Total underlying revenues	1,153	1,056	2,209	1,051	878	4,138	1,166	1,067	2,233
Exceptional items	$-7$	$-6$	$-13$	$-5$	17	$-2$	-	-	-
Total revenues	1,146	1,050	2,196	1,046	895	4,137	1,166	1,067	2,233
o/w Net interest income	603	571	1,174	596	438	2,208	661	581	1,242
o/w Net commission income	511	450	962	436	438	1,836	489	475	964
o/w Net fair value result	8	2	10	$-8$	$-28$	$-26$	4	2	5
o/w Other income	24	26	50	21	47	119	13	9	22
o/w Dividend income	-	-	-	10	6	16	9	1	10
o/w Net income from hedge accounting	-	-	-	-	-	-	-	-	-
o/w Other financial result	-	-	-	-	25	26	-	2	2
o/w At equity result	-	-	$-1$	$-1$	-	$-1$	$-1$	$-1$	$-1$
o/w Other net income	25	26	51	12	15	78	5	7	12
Risk result	$-91$	$-9$	$-100$	$-39$	$-92$	$-231$	$-15$	$-10$	$-25$
Operating expenses	702	723	1,426	705	800	2,930	714	715	1,428
Compulsory contributions	64	18	82	4	15	100	15	31	46
Operating result	289	299	588	299	$-11$	876	423	311	734
Total Assets	126,025	126,286	126,286	127,621	127,630	127,630	126,711	128,131	128,131
Total Liabilities	162,826	164,313	164,313	167,921	176,738	176,738	185,188	190,297	190,297
Average capital employed	4,118	4,089	4,101	3,988	3,927	4,032	4,025	3,985	3,995
RWA credit risk (end of period)	23,522	23,359	23,359	23,261	23,078	23,078	24,364	23,444	23,444
RWA market risk (end of period)	247	311	311	281	326	326	330	405	405
RWA operational risk (end of period)	8,676	8,125	8,125	7,294	8,115	8,115	7,392	7,304	7,304
RWA (end of period)	32,445	31,795	31,795	30,837	31,520	31,520	32,086	31,153	31,153
Cost/income ratio (incl. compulsory contributions) (\%)	66.9\%	70.6\%	68.7\%	67.7\%	91.0\%	73.2\%	62.4\%	69.9\%	66.0\%
Operating return on CET1 (RoCET) (\%)	28.0\%	29.3\%	28.7\%	30.0\%	$-1.1 \%$	21.7\%	42.0\%	31.3\%	36.8\%
Operating return on tangible equity (\%)	27.7\%	28.7\%	28.2\%	29.3\%	$-1.1 \%$	21.3\%	41.0\%	31.0\%	36.2\%

mBank | Part of segment Private and Small-Business Customers

Km	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1
	3024	3028	3023	3022	3028	3023	3024	3024	3024
Total underlying revenues	342	228	570	347	304	1,221	341	473	813
Exceptional items	14	$-1$	13	$-1$	3	15	1	$-60$	$-59$
Total revenues	356	226	582	346	307	1,235	341	413	754
o/w Net interest income	488	547	1,035	561	580	2,176	583	596	1,179
o/w Net commission income	81	80	161	80	72	313	84	87	171
o/w Net fair value result	$-42$	$-47$	$-89$	$-56$	$-2$	$-147$	$-17$	$-25$	$-42$
o/w Other income	$-171$	$-354$	$-525$	$-239$	$-343$	$-1,107$	$-309$	$-244$	$-554$
o/w Dividend income	-	1	1	-	1	2	1	1	2
o/w Net income from hedge accounting	-	$-2$	$-3$	4	$-5$	$-3$	1	2	4
o/w Other financial result	$-12$	$-5$	$-17$	1	4	$-12$	2	$-56$	$-54$
o/w At equity result	-	-	-	-	-	-	-	-	-
o/w Other net income	$-159$	$-347$	$-506$	$-245$	$-343$	$-1,094$	$-314$	$-193$	$-506$
Risk result	$-37$	$-39$	$-76$	$-55$	$-109$	$-241$	$-11$	$-40$	$-51$
Operating expenses	143	157	301	161	184	645	172	184	355
Compulsory contributions	76	44	120	41	43	203	76	43	119
Operating result	100	$-14$	86	89	$-28$	146	82	147	229
Total Assets	46,204	47,677	47,677	48,531	52,068	52,068	51,688	53,224	53,224
Total Liabilities	45,790	47,294	47,294	47,792	51,613	51,613	51,339	52,791	52,791
Average capital employed	2,686	2,729	2,708	2,754	2,754	2,737	2,866	2,965	2,917
RWA credit risk (end of period)	16,334	16,683	16,683	16,039	16,625	16,625	17,481	18,121	18,121
RWA market risk (end of period)	351	372	372	410	451	451	371	418	418
RWA operational risk (end of period)	4,613	4,613	4,613	4,435	5,220	5,220	5,014	5,014	5,014
RWA (end of period)	21,299	21,668	21,668	20,883	22,296	22,296	22,865	23,553	23,553
Cost/income ratio (incl. compulsory contributions) (\%)	$61.6 \%$	$88.7 \%$	$72.1 \%$	$58.4 \%$	$73.7 \%$	$68.7 \%$	$72.7 \%$	$54.9 \%$	$62.9 \%$
Operating return on CET1 (RoCET) (\%)	$14.9 \%$	$-2.0 \%$	$6.3 \%$	$12.9 \%$	$-4.1 \%$	$5.4 \%$	$11.5 \%$	$19.8 \%$	$15.7 \%$
Operating return on tangible equity (\%)	$13.5 \%$	$-1.9 \%$	$5.8 \%$	$12.2 \%$	$-3.9 \%$	$5.0 \%$	$11.1 \%$	$19.1 \%$	$15.2 \%$

Others \& Consolidation

Km	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1
	2023	2024	2024	2024	2024	2023	2024	2024	2024
Total underlying revenues	98	211	310	162	134	606	$-1$	74	73
Exceptional items	$-13$	15	2	29	$-34$	$-2$	19	$-84$	$-64$
Total revenues	86	226	312	191	100	603	18	$-10$	8
o/w Net interest income	229	315	544	291	367	1,202	171	223	394
o/w Net commission income	$-12$	$-11$	$-22$	$-13$	$-12$	$-48$	$-14$	$-13$	$-26$
o/w Net fair value result	$-170$	$-100$	$-270$	$-132$	$-248$	$-650$	$-192$	$-151$	$-343$
o/w Other income	39	22	61	45	$-7$	99	52	$-69$	$-17$
o/w Dividend income	$-1$	-	-	$-1$	5	4	$-2$	-	$-1$
o/w Net income from hedge accounting	$-2$	13	10	$-11$	44	43	$-13$	$-15$	$-28$
o/w Other financial result	16	21	37	57	$-53$	41	43	46	89
o/w At equity result	-	-	-	-	-	-	-	-	-
o/w Other net income	26	$-12$	13	-	$-3$	11	24	$-99$	$-76$
Risk result	6	9	15	7	$-15$	8	5	$-29$	$-24$
Operating expenses	104	87	191	116	13	320	103	101	204
Compulsory contributions	42	$-4$	39	-	1	40	-	-	-
Operating result	$-55$	153	98	83	71	252	$-81$	$-139$	$-220$
Restructuring expenses	4	4	8	6	4	18	1	1	2
Pre-tax result	$-59$	149	90	77	67	234	$-81$	$-140$	$-222$
Total Assets	190,122	192,359	192,359	194,272	203,035	203,035	239,185	239,248	239,248
Total Liabilities	126,778	126,348	126,348	123,307	119,767	119,767	140,701	145,213	145,213
Average capital employed	6,851	7,400	7,124	8,115	8,439	7,695	8,424	8,507	8,453
RWA credit risk (end of period)	30,268	31,303	31,303	31,141	31,747	31,747	30,308	29,463	29,463
RWA market risk (end of period)	2,223	2,643	2,643	2,612	2,386	2,386	2,313	2,350	2,350
RWA operational risk (end of period)	3,311	3,840	3,840	4,900	4,331	4,331	4,883	5,000	5,000
RWA (end of period)	35,802	37,787	37,787	38,653	38,464	38,464	37,503	36,813	36,813

Exceptional Revenue Items Commerzbank Group

Km	Q1	Q2	H1	Q3	Q4	FV	Q1	Q2	H1
	2024	2025	2026	2027	2028	2029	2024	2025	2026
Exceptional Revenue Items	13	9	21	27	$-25$	23	28	$-147$	$-118$
Net interest income	$-7$	$-6$	$-13$	$-5$	$-5$	$-23$	-	-	-
Net fair value result	9	17	25	33	$-45$	13	28	9	37
o/w Hedging \& valuation adjustments ${ }^{1}$	9	17	25	33	$-45$	13	28	9	37
Other income	11	$-2$	9	-	25	34	-	$-155$	$-155$
PSBC Germany	$-7$	$-6$	$-13$	$-5$	17	$-2$	-	-	-
Net interest income	$-7$	$-6$	$-13$	$-5$	$-5$	$-23$	-	-	-
o/w PPA Consumer Finance	$-7$	$-6$	$-13$	$-5$	$-5$	$-23$	-	-	-
Other income	-	-	-	-	21	21	-	-	-
o/w Prov. re judgement on pricing of accounts	-	-	-	-	21	21	-	-	-
mBank	14	$-1$	13	$-1$	3	15	1	$-60$	$-59$
Net fair value result	3	1	4	$-1$	$-1$	3	1	-	1
o/w Hedging \& valuation adjustments ${ }^{1}$	3	1	4	$-1$	$-1$	3	1	-	1
Other income	11	$-2$	9	-	4	12	-	$-60$	$-60$
o/w Credit holidays in Poland	11	$-2$	9	-	4	12	-	$-60$	$-60$
CC	18	1	19	5	$-11$	13	8	$-3$	5
Net fair value result	18	1	19	5	$-11$	13	8	$-3$	5
o/w Hedging \& valuation adjustments ${ }^{1}$	18	1	19	5	$-11$	13	8	$-3$	5
O\&C	$-13$	15	2	29	$-34$	$-2$	19	$-84$	$-64$
Net fair value result	$-13$	15	2	29	$-34$	$-2$	19	11	30
o/w Hedging \& valuation adjustments ${ }^{1}$	$-13$	15	2	29	$-34$	$-2$	19	11	30
Other income	-	-	-	-	-	-	-	$-95$	$-95$
o/w Provision for Russian court case (O\&C)	-	-	-	-	-	-	-	$-95$	$-95$

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

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 €31.5bn, mBank 623bn, CC €81.4bn)	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 60,1bn, mBank 60,1bn, CC 60,8bn)	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

[^0]
[^0]: 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	6 November 2024	13 February 2025	9 May 2025	6 August 2025
	Q3 2024 results	Q4 2024 results	Q1 2025 results	Q2 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.

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