Set forth below are the reconciliations of non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures. Definitions of such non-GAAP financial measures and of the adjustments made to the most directly comparable U.S. GAAP financial measures to obtain them, as well as the reasons for their use, are set forth in note [28] to the consolidated financial statements. While such definitions and reasons refer to our business segments, they are generally applicable to the Group as a whole.
| in € m. | 2003 | 2002 |
| Reconciliation of reported to underlying net revenues | ||
| Reported net revenues | 21,268 | 26,547 |
| Add (deduct) | ||
| Net (gains)/losses on securities available for sale /industrial holdings including hedging | 184 | (3,659) |
| Significant equity pick-ups/net (gains)/losses from investments1 | 938 | 1,197 |
| Net (gains)/losses from businesses sold/held for sale | (494) | (571) |
| Net losses on the sale of premises | 107 | – |
| Policyholder benefits and claims2 | (110) | (759) |
| Underlying revenues3 | 21,892 | 22,755 |
| Reconciliation of reported provision for loan losses to total provision for credit losses | ||
| Reported provision for loan losses | 1,113 | 2,091 |
| Provision for off-balance sheet positions4 | (50) | 17 |
| Total provision for credit losses5 | 1,063 | 2,108 |
| Change in measurement of other inherent loss allowance | – | (200) |
| Total provision for credit losses3, 6 | 1,063 | 1,908 |
| Reconciliation of noninterest expenses to operating cost base | ||
| Reported noninterest expenses | 17,399 | 20,907 |
| Add (deduct) | ||
| Restructuring activities | 29 | (583) |
| Goodwill impairment | (114) | (62) |
| Minority interest | 3 | (45) |
| Policyholder benefits and claims2 | (110) | (759) |
| Provision for off-balance sheet positions4 | 50 | (17) |
| Operating cost base3 | 17,257 | 19,442 |
| 1 | Includes net gains/losses from significant equity method investments and other significant investments. |
| 2 | Policyholder benefits and claims are reclassified from “Noninterest expenses” to “Underlying revenues”. |
| 3 | For the year ended December 31, 2003, underlying revenues, total provision for credit losses and operating cost base decreased 4%, 44% and 11%, respectively. Reported net revenues, provision for loan losses and noninterest expenses decreased 20%, 47% and 17%, respectively. |
| 4 | Provision for off-balance sheet positions is reclassified from “Noninterest expenses” to “Total provision for credit losses”. |
| 5 | Includes change in measurement of other inherent loss allowance. |
| 6 | Excludes change in measurement of other inherent loss allowance. |
| in € m. | 2003 | 2002 |
| Reconciliation of income before income taxes to underlying pre-tax profit | ||
| Income before income taxes | 2,756 | 3,549 |
| Add (deduct) | ||
| Net (gains)/losses from businesses sold/held for sale | (494) | (571) |
| Significant equity pick ups/net (gains)/losses from investments | 938 | 1,197 |
| Net (gains)/losses on securities available for sale/industrial holdings including hedging | 184 | (3,659) |
| Net losses on the sale of premises | 107 | – |
| Restructuring activities | (29) | 583 |
| Goodwill impairment | 114 | 62 |
| Change in measurement of other inherent loss allowance | – | 200 |
| Underlying pre-tax profit1 | 3,575 | 1,360 |
| Reconciliation of average total shareholders’ equity to average active equity | ||
| Average total shareholders’ equity | 28,940 | 36,789 |
| Average unrealized net gains on securities available for sale, net of applicable tax effects | (810) | (4,842) |
| Average dividends | (756) | (701) |
| Average active equity1 | 27,374 | 31,246 |
| Pre-tax return on average total shareholders’ equity 2 | 10% | 10% |
| Underlying pre-tax return on average active equity3 | 13% | 4% |
| 1 | For the year ended December 31, 2003, underlying pre-tax profit and average active equity increased (decreased) 163% and (12) %, respectively. Income before income taxes and average total shareholders’ equity decreased 22% and 21%, respectively. |
| 2 | Income before income taxes divided by average total shareholders’ equity. |
| 3 | Underlying pre-tax profit divided by average active equity. |