back
We define our credit 
exposure as all transactions where losses might occur due to the fact that counterparties may not fulfill their contractual payment obligations. We calculate the gross amount of the exposure without taking into account any collateral, other credit enhancement or credit risk mitigating transactions. In the tables below, we show details about several of our main credit exposure categories, namely loans, commitments, contingent liabilities and over-the-counter (“OTC”) derivatives:
- “Loans” are net loans as reported on our balance sheet at amortized cost but before deduction of our allowance for loan losses.
- “Commitments” consist of the undrawn portion of irrevocable lending-related commitments.
- “Contingent Liabilities” consist of financial and performance guarantees, standby letters of credit and indemnity agreements.
- “OTC Derivatives” are our credit exposures from over-the-counter derivative transactions that we have entered into, after netting. On our balance sheet, these are included in trading assets or, for derivatives qualifying for hedge accounting, in other assets, in either case before netting.
Although we consider them in monitoring our credit exposures, the following are not included in the tables below: cash and due from banks, interest-earning deposits with banks, and accrued interestreceivables, amounting to € 37.8 billion at December 31, 2007 and € 32.3 billion at December 31, 2006, forward committed repurchase and reverse repurchase agreements of € 56.3 billion at December 31, 2007 and € 33.2 billion at December 31, 2006, “tradable assets” which include bonds, loans and other fixed-income products that are in our trading assets as well as in securities available for sale, of € 457.7 billion at December 31, 2007 and € 395.8 billion at December 31, 2006 as well as loans designated at fair value, of € 21.5 billion at December 31, 2007 and € 6.2 billion at December 31, 2006.
The following table breaks down several of our main credit exposure categories by geographical region. For this table, we have allocated exposures to regions based on the country of domicile of our counterparties, irrespective of any affiliations the counterparties may have with corporate groups domiciled elsewhere.
|
Credit risk profile by region |
Loans1 |
Irrevocable Lending Commitments2 |
Contingent liabilities |
OTC derivatives3 |
Total | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
in € m. |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, | |||||||||
| |||||||||||||||||||
|
Eastern Europe |
4,334 |
2,608 |
1,694 |
1,273 |
1,479 |
827 |
989 |
742 |
8,496 |
5,450 | |||||||||
|
Western Europe |
141,572 |
131,830 |
47,948 |
52,902 |
29,021 |
28,212 |
47,956 |
29,328 |
266,496 |
242,272 | |||||||||
|
Africa |
747 |
616 |
224 |
117 |
801 |
355 |
595 |
437 |
2,366 |
1,525 | |||||||||
|
Asia/Pacific |
15,006 |
12,591 |
9,688 |
10,753 |
5,672 |
3,331 |
8,887 |
7,334 |
39,253 |
34,009 | |||||||||
|
North America |
37,087 |
30,937 |
68,495 |
75,552 |
12,407 |
10,013 |
37,776 |
19,145 |
155,766 |
135,647 | |||||||||
|
Central and South America |
1,754 |
1,538 |
375 |
628 |
480 |
308 |
1,035 |
973 |
3,643 |
3,447 | |||||||||
|
Other4 |
97 |
74 |
87 |
107 |
46 |
– |
643 |
253 |
873 |
434 | |||||||||
|
Total |
200,597 |
180,194 |
128,511 |
141,331 |
49,905 |
43,047 |
97,881 |
58,212 |
476,894 |
422,784 | |||||||||
The following table breaks down several of our main credit exposure categories according to the industry sectors of our counterparties.
|
Credit risk profile by industry sector |
Loans1 |
Irrevocable Lending Commitments2 |
Contingent liabilities |
Total | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
in € m. |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, |
Dec 31, | |||||||||
| |||||||||||||||||||
|
Banks and insurance |
12,850 |
12,364 |
28,286 |
35,726 |
11,005 |
8,216 |
61,052 |
37,457 |
113,193 |
93,764 | |||||||||
|
Manufacturing |
16,067 |
13,727 |
24,271 |
24,364 |
11,508 |
9,658 |
3,608 |
2,645 |
55,454 |
50,394 | |||||||||
|
Households |
70,863 |
69,583 |
3,784 |
3,730 |
1,724 |
1,228 |
1,497 |
780 |
77,867 |
75,321 | |||||||||
|
Public sector |
5,086 |
4,153 |
1,023 |
2,411 |
888 |
686 |
5,553 |
4,231 |
12,550 |
11,481 | |||||||||
|
Wholesale and retail trade |
8,916 |
10,515 |
5,840 |
5,373 |
3,496 |
2,533 |
854 |
809 |
19,105 |
19,230 | |||||||||
|
Commercial real estate activities |
16,476 |
14,042 |
3,144 |
3,560 |
1,902 |
1,933 |
461 |
540 |
21,983 |
20,075 | |||||||||
|
Other4 |
70,339 |
55,810 |
62,162 |
66,166 |
19,383 |
18,792 |
24,857 |
11,750 |
176,740 |
152,519 | |||||||||
|
Total |
200,597 |
180,194 |
128,511 |
141,331 |
49,905 |
43,047 |
97,881 |
58,212 |
476,894 |
422,784 | |||||||||
Our loans, irrevocable lending commitments, contingent liabilities and OTC derivatives-related credit exposure to our ten largest counterparties accounts for 6% of our aggregated total credit exposure in these categories as of December 31, 2007. Our top ten counterparty exposures are typically with well-rated counterparties or relate to structured trades which show high levels of collateralization.
We also classify our credit exposure under two broad headings: corporate credit exposure and consumer credit exposure.
- Our corporate credit exposure consists of all exposures not defined as consumer credit exposure.
- Our consumer credit exposure consists of our smaller-balance standardized homogeneous loans, primarily in Germany, Italy and Spain, which include personal loans, residential and nonresidential mortgage loans, overdrafts and loans to self-employed and small business customers of our private and retail business.
