Provision for credit losses increased to € 322 million in 2003 reflecting the impact of the difficult economic environment in Germany on the individual financial situation of some of our customers and falling real estate values in Germany.
Noninterest expenses were € 3.6 billion in 2003, a decrease of € 410 million, or 10%, as compared to 2002. Expenses for integration and reorganization measures masked the business-driven development of our noninterest expenses in both years. In 2002, we recorded charges of € 289 million in total, which comprised € 240 million expenses for restructuring activities as well as € 48 million expenses for severance payments. In 2003, when no charges for restructuring activities were recognized, severance payments increased to € 314 million. Excluding restructuring charges and severance payments, noninterest expenses amounted to € 3.3 billion in 2003 and to € 3.7 billion in 2002. This significant decrease of € 434 million, or 12%, reflected headcount reductions of approximately 10% subsequent to the aforementioned reorganization measures, the lower pension expenses as well as savings in all major expenses categories, with IT expenses and occupancy expenses being the most material contributors.
The cost/income ratio was 82% in 2003. This significant improvement by 7 percentage points compared to 2002 reflected our reduced noninterest expenses as described above.
Invested assets in 2003 were € 143 billion, an increase of € 12 billion compared to 2002 as equity markets improved towards year-end.