Private & Business Clients Corporate Division (PBC)


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

1,444

1,414

2

2,857

2,795

2

Provision for credit losses

171

217

(21)

340

382

(11)

Noninterest expenses

1,040

1,141

(9)

2,093

2,152

(3)

Noncontrolling interests

0

0

175

0

0

N/M

Income before income taxes

233

55

N/M

423

262

61

2010 to 2009 Three Months Comparison

Net revenues in the second quarter 2010 were € 1.4 billion, up € 30 million, or 2 %, compared to the second quarter 2009. Credit products revenues increased € 24 million, or 4 %, compared to the second quarter 2009, driven by improved revenues from higher mortgage volumes, partly offset by lower sales of credit related insurance products. Revenues from deposits and payment services were a record for a quarter and increased by € 27 million, or 6 %, compared to the second quarter 2009, driven by increased deposit margins. Advisory/brokerage revenues were up by € 6 million, or 3 %, mainly due to higher sales of pension related insurance products. Revenues from discretionary portfolio management/fund management increased by € 12 million, or 17 %, benefiting from more stable revenue flows. Revenues from other products decreased by € 39 million, or 33 %, compared to the same period last year. This development was mainly driven by the expected normalization of results from PBC’s asset and liability management function, partly offset by dividend income related to the investment in Hua Xia Bank Co. Ltd.

Provision for credit losses was € 171 million in the second quarter 2010, down € 47 million, or 21 %, compared to the same quarter last year. Measures taken on portfolio and country level led to significant reductions in provision for credit losses throughout all major portfolios, partially offset by increases in our Consumer Finance Business in Poland.

Noninterest expenses were € 1.0 billion in the second quarter 2010, a decrease of € 101 million, or 9 %, compared to the second quarter 2009. The prior year quarter included severance payments of € 150 million resulting from measures to improve platform efficiency. The decrease was partly offset by expenses for strategic projects in the second quarter 2010.

Income before income taxes was € 233 million in the quarter, an increase of € 178 million compared to the second quarter 2009.

Invested assets were € 192 billion as of June 30, 2010, down by € 5 billion compared to March 31, 2010, reflecting € 3 billion related to market depreciation and € 2 billion of outflows.

PBC’s total number of clients was 14.5 million, an increase of net 18,000 during the second quarter 2010.

2010 to 2009 Six Months Comparison

Net revenues in the first half of 2010 were € 2.9 billion, up € 61 million, or 2 %, compared to the first half of 2009. Credit products revenues increased € 33 million, or 3 %, compared to the first six months of 2009, driven by higher revenues related to mortgages, partly offset by lower sales of credit related insurance products. Deposits and payment services increased by € 67 million, or 8 %, driven by the widening of deposit margins. Advisory/brokerage revenues decreased slightly by € 5 million, or 1 %, mainly due to lower sales of closed-end funds. This decline was more than offset by an increase of € 63 million, or 57 %, in revenues from discretionary portfolio management/fund management, benefiting from more stable revenue flows. Revenues from other products decreased by € 98 million, or 38 %, compared to the same period last year. This development was mainly driven by the expected normalization of results from PBC’s asset and liability management function and a gain on the disposal of an available for sale security position in the prior year period.

Provision for credit losses was € 340 million in the first half of 2010, down € 41 million, or 11 %, compared to the first half year 2009. Measures taken on portfolio and country level led to a significant reduction of net credit costs in Spain and India, partially offset by increases in our Consumer Finance business in Poland. Revised parameter and model assumptions in 2009 led to a one-time release of loan loss allowance of € 60 million in the first quarter 2009 as well as a lower level of provisions for credit losses of € 28 million for the first quarter 2010.

Noninterest expenses were € 2.1 billion in the first six months of 2010, a decrease of € 58 million, or 3 %, compared to the first six months of 2009. The first half 2009 included severance payments resulting from measures to improve platform efficiency. Noninterest expenses in the first six months of 2010 included expenses of € 18 million for strategic projects.

Income before income taxes was € 423 million in the first six months of 2010, an increase of € 161 million, or 61 %, compared to the first half year of 2009.

Invested assets were € 192 billion as of June 30, 2010, down by € 2 billion compared to December 31, 2009, with € 2 billion outflows, mainly related to maturities of time deposits, and € 1 billion due to market depreciation.

During the first six months of 2010, PBC’s total number of clients decreased by net 65,000, in particular related to the aforementioned maturities in time deposits.

Service Functions

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