Consolidated Results of Operations

Income before income taxes in the first quarter 2011 was € 3.0 billion and included negative results of € 518 million in total in Corporate Investments (CI) and Consolidation & Adjustments (C&A). The operating divisions Corporate & Investment Bank (CIB) and Private Clients and Asset Management (PCAM) reported in the quarter an income before income taxes of € 3.5 billion in total, which compares to our € 10 billion target for the full year 2011.

Net Revenues in the first quarter 2011 were € 10.5 billion, up € 1.5 billion, or 16 %, versus the first quarter 2010 as a result of revenues from businesses acquired in 2010, namely, Postbank, Sal. Oppenheim and the commercial banking activities acquired from ABN AMRO in the Netherlands.

In CIB, net revenues were slightly up in the first quarter 2011 to € 6.7 billion versus € 6.6 billion in the first quarter 2010. PCAM net revenues were € 4.1 billion in the first quarter 2011, including a € 263 million positive impact related to our stake in Hua Xia Bank, for which equity method accounting was applied as a consequence of the last substantive regulatory approval received to increase our stake, compared to revenues of € 2.2 billion in the first quarter 2010. Revenues in C&A were negative € 476 million in the first quarter 2011, versus negative € 91 million in the first quarter last year.

Provision for credit losses was € 373 million in the quarter, an increase of 42 %, from € 262 million in the first quarter 2010. The increase was attributable to Postbank, which contributed € 206 million. The Postbank provisions excluded releases of loan loss allowance recorded prior to consolidation amounting to € 117 million, which were shown as interest and similar income. Excluding Postbank, provision for credit losses was down € 96 million, a 37 % reduction on a like for like basis, reflecting the overall favorable economic environment, a further reduction from IAS 39 reclassified assets and a positive impact as a result of a portfolio sale in PBC.

Noninterest expenses were € 7.1 billion in the quarter an increase of € 1.1 billion, or 19 %, compared to the first quarter 2010. Of the increase, € 877 million related to the consolidation of acquisitions made throughout the year in 2010. Also contributing to the increase were higher compensation-related costs, which were partly related to the accelerated recognition of deferred compensation for employees eligible for career retirement, as well as higher operating costs from our consolidated investments in CI.

Income before income taxes was € 3.0 billion in the quarter, up € 228 million versus the first quarter 2010. A better year on year performance in CIB and PCAM of € 647 million in total was partly offset by decreases of € 230 million from CI and of € 188 million from C&A.

Net income for the first quarter 2011 was € 2.1 billion compared to € 1.8 billion in the first quarter 2010. Diluted earnings per share were € 2.13 in the first quarter 2011, versus € 2.43 in the first quarter 2010. Income tax expense was € 891 million in the first quarter 2011. The effective tax rate of 29.5% in the current quarter benefited from the partial tax exemption of net gains following a change in the accounting method applied to our stake in Hua Xia Bank. Income tax expense in the first quarter 2010 was € 1.0 billion. The effective tax rate of 36.4% in the first quarter last year was adversely affected by the geographic mix of income and the non-tax deductible bank payroll tax in the U.K.

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