Commerzbank Stock

Commerzbank AG (Commerzbank) offers a comprehensive portfolio of financial services.

Commerzbank is the leading bank for SMEs (the Mittelstand) and a partner to some 26,000 corporate client groups and almost 11 million private and small-business customers in Germany. The bank offers a comprehensive portfolio of financial services in two business segments - Private and Small-Business Customers and Corporate Clients.

In its corporate client business, Commerzbank focuses on German SMEs, large companies and institutional customers. In international business, the bank supports customers who have business links with Germany and companies in selected future-oriented sectors. In the Private and Small-Business Customers segment, the bank serves its customers through the Commerzbank and comdirect brands: via online and mobile channels, in the advisory centre and in person at a local level. The Polish subsidiary mBank is an innovative digital bank. It serves around 5.7 million private and small-business customers, mainly in Poland but also in the Czech Republic and Slovakia.

On the domestic market, Commerzbank is headquartered in Frankfurt am Main, from where it manages its branch network and its advisory centre serving all customer groups. Following the merger with comdirect Bank AG, which will continue as a brand of Commerzbank Aktiengesellschaft, Commerz Real AG is the most significant domestic subsidiary. Outside of Germany, following the sale of Commerzbank Zrt., Budapest, Commerzbank has 4 material subsidiaries, operational foreign branches and representative offices in just under 40 countries and was represented in all major financial centres, such as London, New York, Tokyo and Singapore. However, the focus of the bank's international activities is on Europe.

Segments

Private and Small-Business Customers

The Private and Small-Business Customers segment comprises Commerzbank's German business - online and mobile, in the advisory centre and in person at local level - along with the comdirect brand, Commerz Real and the mBank Group. With just under 11 million customers in Germany and roughly 5.7 million customers in Poland, the Czech Republic and Slovakia, Commerzbank is one of the leading banks for private and small business customers in these markets.

Corporate Clients

The Corporate Clients segment comprises four reporting areas. The Mittelstand, International Corporates and Institutionals divisions are responsible for business with the company's core customers: the Mittelstand division covers Mittelstand (SME) customers and domestic large corporates with the relevant products they require. The International Corporates division looks after corporate clients headquartered abroad and large German multinational companies. The Institutionals division is responsible for managing relationships with banks in Germany and abroad, as well as those with central banks and selected non-bank financial institutions (NBFIs), such as insurance companies and pension funds.

The segment offers customers the complete range of products of an international full-service bank, from traditional credit products and individually tailored financing solutions to cash management and trade finance, investment and hedging products and customised capital market solutions. The Others division handles all business that either has a cross-segment risk management function or falls outside the strategic focus of the Corporate Clients segment. This mainly relates to assets transferred from the former run-off segments and effects from hedging positions.

Commerzbank continues to focus on German SMEs, large companies and institutional customers. Investments will be centred in particular on expanding digital services and on administrative matters to further improve the customer experience for the company's corporate clients. The company also offers its international customers a global platform via which they can use applications, such as realtime foreign exchange trading (FX Live Trader/Live Confirm), payment transactions (Global Payment Plus), self-service features (trade finance and master data management) and external digital services.

IT & Operations

Commerzbank will continue the ongoing optimisation of its IT structure in 2023, with further significant investments in the expansion of cloud technology and the digitalisation of the workplace environment.

Commerzbank therefore remains on track with the digitalisation and streamlining of its business. On the IT side, the bank will also focus on modernising the IT architecture and putting the technological base on a more professional footing. The digitalisation of the product range will also continue. In addition to digital account management and the expansion of functions in the online portals, the focus is on account access via APIs (application programming interfaces), virtual accounts and expanded SWIFT services. The company is also anticipating a growing need for investments in connection with the implementation of regulatory requirements.

Regulatory Environment

At the European level, Commerzbank is following, among other things, the implementation of Basel 4, initiatives by the European Commission to introduce a European deposit insurance scheme and to create a capital markets union, the European Green Deal and the EBA initiative to revise the internal risk models.

History

Commerzbank AG was founded in 1870. The company was incorporated in 1952.