Part of the Consolidated Financial Statements as of 31 December 2007, which were audited by KPMG Deutsche Treuhand AG.

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Consumer Credit Exposure

The table below presents our total consumer credit (Glossary)exposure, consumer loan delinquencies in terms of loans that are 90 days or more past due, and net credit costs, which are the net provisions charged during the period, after recoveries. Loans 90 days or more past due and net credit costs are both expressed as a percentage of total exposure.

 

Total exposure
(in € m.)

90 days or more past due as a % of total (Glossary)exposure

Net credit costs as a %
of total exposure

 

Dec 31,
2007

Dec 31,
2006

Dec 31,
2007

Dec 31,
2006

Dec 31,
2007

Dec 31,
2006

1

Includes (Glossary)IFRS impaired loans amounting to € 1.1 billion as of December 31, 2007 and € 1.1 billion as of December 31, 2006.

Consumer credit exposure Germany:

56,504

53,446

1.68 %

1.90 %

0.64 %

0.59 %

Consumer and small business financing

14,489

12,261

1.96 %

2.21 %

1.76 %

1.53 %

Mortgage lending

42,015

41,185

1.58 %

1.80 %

0.26 %

0.31 %

Consumer credit exposure outside Germany

23,864

20,253

1.24 %

1.04 %

0.55 %

0.38 %

Total consumer credit exposure1

80,368

73,699

1.55 %

1.66 %

0.62 %

0.53 %

The volume of our consumer credit exposure rose by € 6.7 billion, or 9%, from 2006 to 2007, driven both by the volume growth of our (Glossary)portfolio outside Germany (up € 3.6 billion) with strong growth in Italy (up € 1.7 billion), Spain (up € 1.0 billion) and Poland (up € 608 million) as well as in Germany due to the first time consolidation of Berliner Bank (up € 1.7 billion). Total net credit costs as a percentage of total exposure increased overall compared to 2006 reflecting our strategy to invest in higher margin consumer finance business. In Germany the increase in net credit costs for the consumer and small business finance was driven by the loans acquired in the norisbank and Berliner Bank acquisitions and was only partially offset by a reduction in mortgage lending. Outside Germany the increase in net credit costs was driven mainly by our consumer finance business in Italy. Loans delinquent by 90 days or more decreased in Germany, from 1.90% to 1.68% reflecting the business growth and our disciplined risk management. The higher percentage of delinquent loans outside Germany was predominantly driven by our mortgage business in Spain.