Fresh Ideas. The depth of our relationship at every level is what distinguishes Deutsche Bank from its peers. From the Chairman through the associate level, Vornado can turn to Deutsche Bank people as our strategic money and banking partners for our largest transactions.
Steven Roth, Chairman of the Board and Chief Executive Officer, Michael Fascitelli, President and rustee, Vornado Realty Trust, New York
The Corporate Investments Group Division encompasses our industrial holdings, other holdings and real estate for the Bank’s own use, private equity and venture capital.
In 2004, we took advantage of a more favourable market environment to reduce further our holdings and our exposure. At the end of 2004 € 5.5 billion of Corporate Investment’s assets related to industrial holdings, € 1.2 billion to private equity, and € 5.0 billion to other corporate investments including our 37.7% stake in Eurohypo AG and our 33.9% stake in Atradius N.V.
Since 2002, we have been steadily reducing non-core holdings and investments, and thereby reducing the risks associated with these assets. Against this background, we have with effect from January 1, 2005 aligned operating units which were previously managed separately, and streamlined the management structure of Corporate Investments.
Income before income taxes 2004
In 2004 Corporate Investments continued the reduction of investments that are not part of our core business activity and reported income before income taxes of € 185 million. The improved result compared to 2003 was essentially due to net charges of € 1.4 billion from our industrial holdings, other investments, non-core businesses and buildings in 2003. Revenues in 2004 included net gains of € 382 million from comparable assets. The decline of noninterest expenses by € 347 million was primarily attributable to the disposal of non-core business in 2003.
Corporate Investments1
| in € m. | 2004 | 2003 |
| Net revenues | 621 | (921) |
| Total provision for credit losses | 19 | 35 |
| Noninterest expenses | 416 | 763 |
| Income before income taxes | 185 | (1,719) |
| Return on equity (pre-tax) in % | 5 | (35) |
| BIS risk positions | 10,242 | 13,019 |
| Assets | 16,442 | 18,987 |
| 1 | Excerpts from segment reporting, for notes and other detailed information, see Financial Report 2004 (Management Report). |
