Deutsche Bank Annual Report 2003 - Segmental Results of Operations


2003	Corporate and Investment Bank			Private Clients and Asset			Corporate	Total
				Management			Invest-	Manage-
							ments	ment
in € m. (except percentages)	Corporate	Global	Total	Asset	Private &	Total		Reporting
	Banking &	Trans-		and	Business
	Securities	action		Wealth	Clients
		Banking		Manage-
				ment
Net revenues¹	11,710	2,469	14,180	3,841	4,385	8,226	(916)	21,490
Provision for loan losses	750	2	752	2	322	325	36	1,113
Provision for off-balance sheet positions	8	(53)	(45)	(3)	(1)	(3)	(2)	(50)
Total provision for credit losses	759	(51)	707	(1)	322	321	35	1,063
Operating cost base²	8,226	1,735	9,961	3,092	3,606	6,698	681	17,340
Policyholder benefits and claims	–	–	–	21	–	21	–	21
Minority interest	13	–	13	13	2	15	(31)	(3)
Restructuring activities	(23)	(6)	(29)	–	–	–	–	(29)
Goodwill impairment	–	–	–	–	–	–	114	114
Total noninterest expenses⁴	8,216	1,729	9,946	3,126	3,607	6,734	763	17,442
Income (loss) before income taxes⁵	2,735	791	3,527	715	456	1,172	(1,714)	2,984
Add (deduct)
Net (gains) losses from business sold/held for sale	–	(583)	(583)	(55)	4	(51)	141	(494)
Significant equity pick-ups/net (gains) losses from investments	–	–	–	–	–	–	938	938
Net (gains) losses on securities available for sale/industrial holdings including hedging	–	–	–	–	–	–	184	184
Net (gains) losses on the sale	–	–	–	–	–	–	107	107
of premises	–	–	–	–	–	–	107	107
Restructuring activities	(23)	(6)	(29)	–	–	–	–	(29)
Goodwill impairment	–	–	–	–	–	–	114	114
Underlying pre-tax profit (loss)	2,712	202	2,914	660	459	1,119	(232)	3,802
Cost/income ratio in %	70	70	70	81	82	82	N/M	81
Underlying cost/income ratio	70	92	73	82	82	82	150	78
in %	70	92	73	82	82	82	150	78
Assets^{3, 6}	693,414	16,709	681,722	48,138	78,477	124,606	18,987	795,818
Expenditures for additions to long-lived assets	391	99	490	36	47	82	141	713
Risk-weighted positions	127,449	10,166	137,615	12,170	51,244	63,414	13,019	214,048
(BIS risk positions)	127,449	10,166	137,615	12,170	51,244	63,414	13,019	214,048
Average active equity⁷	12,849	1,409	14,258	6,324	1,521	7,844	5,236	27,338
Return on average active equity in %	21	56	25	11	30	15	(33)	11
Underlying return on average	21	14	20	10	30	14	(4)	14
active equity in %	21	14	20	10	30	14	(4)	14
¹Includes:
Net interest revenues	2,502	642	3,144	290	2,377	2,666	142	5,952
Net revenues from external customers	11,601	2,602	14,202	4,053	4,092	8,145	(963)	21,384
Net intersegment revenues	110	(133)	(23)	(212)	294	82	47	106
Net income (loss) from equity method	163	(1)	163	166	–	166	(757)	(428)
investments	163	(1)	163	166	–	166	(757)	(428)
²Includes:
Depreciation, depletion and amortization	386	100	486	81	136	218	65	769
Severance payments	192	66	258	79	314	393	20	671
³Includes:
Equity method investments	1,889	37	1,927	380	30	410	3,511	5,848


⁴	Excludes provision for off-balance sheet positions (reclassified to provision for credit losses).
⁵	Before cumulative effect of accounting changes.
⁶	The sum of corporate divisions does not necessarily equal the total of the corresponding group division because of consolidation items between corporate divisions, which are to be eliminated on group division level. The same approach holds true for the sum of group divisions compared to Total Management Reporting.
⁷	For management reporting purposes goodwill and other intangible assets with indefinite lives are explicitly assigned to the respective divisions. Average active equity is first allocated to divisions according to goodwill and intangible assets, remaining average active equity is allocated to the divisions in proportion to the economic capital calculated for them.
	N/M – Not meaningful.


2002	Corporate and Investment Bank			Private Clients and Asset			Corporate	Total
				Management			Invest-	Manage-
							ments	ment
in € m. (except percentages)	Corporate	Global	Total	Asset	Private &	Total		Reporting
in € m. (except percentages)	Banking &	Trans-		and	Business
	Securities	action		Wealth	Clients
		Banking		Manage-ment
Net revenues¹	11,164	2,612	13,776	3,747	5,772	9,518	3,000	26,295
Provision for loan losses	1,706	6	1,712	23	201	224	155	2,091
Provision for off-balance sheet positions	83	(52)	31	–	(1)	(1)	(11)	18
Total provision for credit losses	1,788	(46)	1,742	23	200	223	144	2,110
Operating cost base²	8,710	2,200	10,909	3,243	3,880	7,123	1,228	19,260
Policyholder benefits and claims	–	–	–	35	650	685	–	685
Minority interest	8	–	8	25	7	32	3	43
Restructuring activities	316	26	342	–	240	240	1	583
Goodwill impairment	–	–	–	–	–	–	62	62
Total noninterest expenses⁴	9,034	2,226	11,259	3,303	4,777	8,080	1,293	20,632
Income (loss) before income taxes⁵	342	433	774	421	794	1,215	1,563	3,553
Add (deduct)
Net (gains) losses from business sold/held for sale	–	–	–	(8)	(503)	(511)	(18)	(529)
Significant equity pick-ups/net (gains) losses from investments	–	–	–	–	–	–	1,197	1,197
Net (gains) losses on securities available for sale/industrial holdings including hedging	–	–	–	–	–	–	(3,659)	(3,659)
Change in measurement of other inherent loss allowance	200	–	200	–	–	–	–	200
Restructuring activities	316	26	342	–	240	240	1	583
Goodwill impairment	–	–	–	–	–	–	62	62
Underlying pre-tax profit (loss)	858	458	1,316	413	532	945	(855)	1,406
Cost/income ratio in %	81	85	82	88	83	85	43	78
Underlying cost/income ratio	78	84	79	88	84	86	N/M	85
in %		84	79	88	84	86	N/M	85
Assets^{3, 6}	629,975	25,098	642,127	37,642	74,039	109,394	26,536	750,238
Expenditures for additions to long-lived assets	374	104	478	199	44	244	332	1,054
Risk-weighted positions	142,211	12,949	155,160	11,800	47,690	59,490	19,219	233,870
(BIS risk positions)		12,949	155,160	11,800	47,690	59,490	19,219	233,870
Average active equity⁷	14,798	2,073	16,871	6,337	1,513	7,850	6,522	31,243
Return on average active equity in %	2	21	5	7	52	15	24	11
Underlying return on average active	6	22	8	7	35	12	(13)	5
equity in %		22	8	7	35	12	(13)	5
¹Includes:
Net interest revenues	3,519	874	4,393	92	2,653	2,745	44	7,181
Net revenues from external customers	11,120	2,736	13,856	3,879	5,536	9,416	2,909	26,181
Net intersegment revenues	43	(124)	(80)	(133)	236	103	91	114
Net income (loss) from equity method investments	(32)	1	(31)	141	20	162	(1,034)	(903)
		1	(31)	141	20	162	(1,034)	(903)
²Includes:
Depreciation, depletion and amortization	474	143	617	103	224	327	132	1,076
Severance payments	242	18	260	87	49	136	19	416
³Includes:
Equity method investments	571	38	609	1,154	19	1,173	3,944	5,725


⁴	Excludes provision for off-balance sheet positions (reclassified to provision for credit losses).
⁵	Before cumulative effect of accounting changes.
⁶	The sum of corporate divisions does not necessarily equal the total of the corresponding group division because of consolidation items between corporate divisions, which are to be eliminated on group division level. The same approach holds true for the sum of group divisions compared to Total Management Reporting.
⁷	For management reporting purposes goodwill and other intangible assets with indefinite lives are explicitly assigned to the respective divisions. Average active equity is first allocated to divisions according to goodwill and intangible assets, remaining average active equity is allocated to the divisions in proportion to the economic capital calculated for them.
	N/M – Not meaningful.


2001	Corporate and Investment Bank			Private Clients and Asset			Corporate	Total
				Management			Invest-	Manage-
							ments	ment
in € m. (except percentages)	Corporate	Global	Total	Asset and	Private &	Total		Reporting
	Banking &	Transaction		Wealth	Business
	Securities	Banking		Manage-	Clients
				ment
Net revenues¹	14,019	2,943	16,963	3,247	7,759	11,006	1,923	29,892
Provision for loan losses	630	(19)	611	12	193	205	199	1,015
Provision for off-balance sheet positions	5	(34)	(29)	–	–	–	3	(26)
Total provision for credit losses	636	(53)	582	12	193	205	201	988
Operating cost base²	10,850	2,447	13,297	3,004	4,742	7,746	1,365	22,408
Policyholder benefits and claims	–	–	–	48	2,898	2,946	–	2,946
Minority interest	13	2	15	36	18	54	18	86
Restructuring activities	176	37	213	61	20	81	–	294
Goodwill amortization	425	66	490	197	36	233	135	858
Total noninterest expenses⁴	11,463	2,552	14,016	3,346	7,715	11,060	1,517	26,593
Income (loss) before income taxes⁵	1,920	444	2,365	(110)	(149)	(259)	204	2,310
Add (deduct)
Net (gains) losses from business sold/held for sale	(180)	–	(180)	–	–	–	80	(100)
Significant equity pick-ups/net (gains) losses from investments	–	–	–	–	–	–	1,292	1,292
Net (gains) losses on securities available for sale/industrial holdings including hedging	–	–	–	–	–	–	(2,259)	(2,259)
Net (gains) losses on the sale	–	–	–	–	–	–	(233)	(233)
of premises	–	–	–	–	–	–	(233)	(233)
Restructuring activities	176	37	213	61	20	81	–	294
Goodwill amortization	425	66	490	197	36	233	135	858
Underlying pre-tax profit (loss)	2,341	548	2,889	147	(92)	55	(781)	2,163
Cost/income ratio in %	82	87	83	103	99	100	79	89
Underlying cost/income ratio	78	83	79	94	98	96	170	87
in %	78	83	79	94	98	96	170	87
Assets^{3, 6}	661,019	23,562	673,720	36,017	96,419	131,573	121,006	898,046
Expenditures for additions to	648	115	763	31	113	144	133	1,040
long-lived assets	648	115	763	31	113	144	133	1,040
Risk-weighted positions	166,400	18,256	184,656	14,393	45,360	59,753	56,202	300,612
(BIS risk positions)	166,400	18,256	184,656	14,393	45,360	59,753	56,202	300,612
Average active equity⁷	15,534	2,681	18,216	4,043	1,615	5,659	6,904	30,778
Return on average active equity	12	17	13	(3)	(9)	(5)	3	8
in %	12	17	13	(3)	(9)	(5)	3	8
Underlying return on average active equity in %	15	20	16	4	(6)	1	(11)	7
¹ Includes:
Net interest revenues	3,744	1,012	4,756	154	3,369	3,523	108	8,386
Net revenues from external customers	14,053	3,005	17,058	3,473	7,437	10,910	1,801	29,769
Net intersegment revenues	(33)	(62)	(95)	(226)	322	96	122	123
Net income (loss) from equity method investments	(27)	–	(27)	(11)	3	(8)	(341)	(376)
²Includes:
Depreciation, depletion and amortization	485	138	623	91	318	410	84	1,117
Severance payments	259	42	302	33	72	105	13	420
³ Includes:
Equity method investments	1,094	–	1,094	1,021	126	1,147	2,885	5,126


⁴	Excludes provision for off-balance sheet positions (reclassified to provision for credit losses).
⁵	Before cumulative effect of accounting changes.
⁶	The sum of corporate divisions does not necessarily equal the total of the corresponding group division because of consolidation items between corporate divisions, which are to be eliminated on group division level. The same approach holds true for the sum of group divisions compared to Total Management Reporting.
⁷	For management reporting purposes goodwill and other intangible assets with indefinite lives are explicitly assigned to the respective divisions. Average active equity is first allocated to divisions according to goodwill and intangible assets, remaining average active equity is allocated to the divisions in proportion to the economic capital calculated for them.