The following table sets forth the results of our Asset and Wealth Management Corporate Division for the years ended December 31, 2003 and 2002, in accordance with our management reporting systems.
| 2003 increase (decrease) from 2002 | ||||
| in € m. (except where indicated) | 2003 | 2002 | in € | in % |
| Portfolio /fund management (AM) | 2,195 | 2,165 | 30 | 1 |
| Portfolio/fund management (PWM) | 281 | 338 | (57) | (17) |
| Total Portfolio/fund management | 2,476 | 2,503 | (27) | (1) |
| Brokerage | 654 | 680 | (26) | (4) |
| Loans/deposits | 128 | 167 | (38) | (23) |
| Payments, account & remaining financial services | 12 | 9 | 3 | 35 |
| Other | 570 | 388 | 182 | 47 |
| Total net revenues | 3,841 | 3,747 | 94 | 3 |
| Provision for loan losses | 2 | 23 | (21) | (90) |
| Provision for off-balance sheet positions | (3) | – | (3) | N/M |
| Total provision for credit losses | (1) | 23 | (24) | (103) |
| Operating cost base | 3,092 | 3,243 | (151) | (5) |
| Policyholder benefits and claims | 21 | 35 | (14) | (40) |
| Minority interest | 13 | 25 | (12) | (47) |
| Restructuring activities | – | – | – | – |
| Goodwill impairment | – | – | – | – |
| Total noninterest expenses1 | 3,126 | 3,303 | (176) | (5) |
| Therein: Severance payments | 79 | 87 | (8) | (9) |
| Income (loss) before income taxes | 715 | 421 | 294 | 70 |
| Add (deduct) | ||||
| Net (gains)/losses from businesses sold/held for sale | (55) | (8) | (47) | N/M |
| Goodwill impairment | – | – | – | – |
| Restructuring activities | – | – | – | – |
| Underlying pre-tax profit | 660 | 413 | 247 | 60 |
| Cost/income ratio in % | 81% | 88% | (7) ppt | (8) |
| Underlying cost/income ratio in % | 82% | 88% | (5) ppt | (6) |
| Assets | 48,138 | 37,642 | 10,496 | 28 |
| Risk-weighted positions (BIS risk positions) | 12,170 | 11,800 | 370 | 3 |
| Average active equity2 | 6,324 | 6,337 | (13) | – |
| Return on average active equity in % | 11% | 7% | 5 ppt | 70 |
| Underlying return on average active equity in % | 10% | 7% | 4 ppt | 60 |
| Invested assets (in € bn.) | 729 | 880 | (151) | (17) |
| AM – Asset Management | |
| PWM – Private Wealth Management | |
| N/M – Not meaningful | |
| ppt – percentage points | |
| 1 | Excludes provision for off-balance sheet positions (reclassified to provision for credit losses). |
| 2 | See Note [28] to the consolidated financial statements for a description of how average active equity is allocated to the divisions. |
Income before income taxes of our Asset and Wealth Management Corporate Division was € 715 million for the year ended December 31, 2003. Included in the increase of € 294 million compared to 2002 was a net gain of € 55 million from the sale of most of our Passive Asset Management business to Northern Trust Corporation on January 31, 2003. Lower noninterest expenses as well as higher revenues from our alternative investment business mainly drove the remaining increase of € 239 million, or 57%, compared to 2002.