Global Transaction Banking Corporate Division (GTB)


in € m.

Three months ended

Change
in %

Six months ended

Change
in %

Jun 30, 2010

Jun 30, 2009

Jun 30, 2010

Jun 30, 2009

N/M – Not meaningful

Net revenues

1,070

654

64

1,706

1,320

29

Provision for credit losses

32

8

N/M

28

9

N/M

Noninterest expenses

560

459

22

1,081

897

20

Noncontrolling interests

N/M

N/M

Income before income taxes

478

187

155

597

414

44

2010 to 2009 Three Months Comparison

GTB’s second quarter performance was positively impacted by the first time consolidation of the commercial banking activities acquired from ABN AMRO in the Netherlands. This led to additional net revenues of € 338 million, including a € 208 million gain representing provisional negative goodwill, provision for credit losses of € 19 million as well as € 104 million noninterest expenses including integration costs.

GTB’s net revenues were € 1.1 billion in the second quarter 2010, an increase of € 416 million, or 64 %, compared to the second quarter 2009. Excluding the impact of the aforementioned acquisition, the increase was predominantly attributable to continuing growth in Trade Finance, driven by increased demand for financing products in Germany and Asia Pacific. Trust & Securities Services generated strong fee growth, primarily in the custody business, offsetting the impact of the continuing low interest rate environment, which also impacted Cash Management adversely.

In provision for credit losses, GTB recorded a net charge of € 32 million. The increase of € 24 million compared to the second quarter 2009 included € 19 million in relation to the aforementioned commercial banking activities acquired from ABN AMRO in the second quarter 2010.

Noninterest expenses were € 560 million in the second quarter 2010, up € 102 million, or 22 %, compared to the second quarter 2009. The increase was mainly driven by integration costs and the first time consolidation of the business acquired from ABN AMRO, while other noninterest expenses remained almost flat.

Income before income taxes was € 478 million for the quarter, an increase of € 291 million, or 155 %, compared to the prior year quarter.

2010 to 2009 Six Months Comparison

GTB’s six months’ performance was also positively impacted by the aforementioned first time consolidation of the commercial banking activities acquired from ABN AMRO in the Netherlands.

GTB generated net revenues of € 1.7 billion in the first six months of 2010, an increase of € 386 million, or 29 %, compared to the first six months 2009. Excluding the impact of the aforementioned acquisition, the improvement was predominantly attributable to continuing growth in Trade Finance, driven by increased demand for more complex financing products in Germany, Asia Pacific and Americas. Trust & Securities Services generated strong fee growth, primarily in the custody business, offsetting the impact of the continuing low interest rate environment, which also impacted Cash Management adversely.

In provision for credit losses, GTB recorded a net charge of € 28 million. The increase of € 19 million compared to the first six months of 2009 related primarily to the business acquired from ABN AMRO in the second quarter 2010.

Noninterest expenses were € 1.1 billion in the first six months of 2010, up € 184 million, or 20 %, compared to the first six months of 2009. The increase was mainly driven by integration costs and the first time consolidation of the aforementioned acquisition and an impairment of intangible assets relating to the client portfolio of an acquired domestic custody services business. In addition, higher performance-related and regulatory costs contributed to this increase.

Income before income taxes was € 597 million for the first six months, an increase of € 183 million, or 44 %, compared to the prior year period.

Service Functions

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