Net Interest Income


in € m.

 

 

 

2012 increase (decrease)
from 2011

2011 increase (decrease)
from 2010

(unless stated otherwise)

2012

2011

2010

in € m.

in %

in € m.

in %

ppt – Percentage points

1

Average balances for each year are calculated in general based upon month-end balances.

2

Gross interest yield is the average interest rate earned on our average interest-earning assets.

3

Gross interest rate paid is the average interest rate paid on our average interest-bearing liabilities.

4

Net interest spread is the difference between the average interest rate earned on average interest-earning assets and the average interest rate paid on average interest-bearing liabilities.

5

Net interest margin is net interest income expressed as a percentage of average interest-earning assets.

Total interest and similar income

32,242

34,878

28,779

(2,636)

(8)

6,099

21

Total interest expenses

16,351

17,433

13,196

(1,083)

(6)

4,237

32

Net interest income

15,891

17,445

15,583

(1,554)

(9)

1,862

12

Average interest-earning assets1

1,241,791

1,174,201

993,780

67,590

6

180,421

18

Average interest-bearing liabilities1

1,120,540

1,078,721

933,537

41,819

4

145,184

16

Gross interest yield2

2.61 %

2.97 %

2.90 %

(0.36) ppt

(12)

0.07 ppt

2

Gross interest rate paid3

1.48 %

1.62 %

1.41 %

(0.14) ppt

(9)

0.21 ppt

15

Net interest spread4

1.14 %

1.35 %

1.48 %

(0.21) ppt

(16)

(0.13) ppt

(9)

Net interest margin5

1.28 %

1.49 %

1.57 %

(0.21) ppt

(14)

(0.08) ppt

(5)

The decrease in net interest income in 2012 of € 1.6 billion, or 9 %, to € 15.9 billion compared to € 17.4 billion in 2011, was primarily driven by lower interest income on CB&S trading assets resulting from a lower interest rate environment and reduced asset volumes as well as by lower net interest income in the NCOU due to a reduced asset base as a result of de-risking. The remaining decline was further impacted by lower interest income in PBC based on a decrease of Purchase Price Allocation (PPA) effects, following the acquisition of Postbank. These developments contributed to a tightening of our net interest spread by 21 basis points and to a decline in our net interest margin by 21 basis points.

The development of our net interest income is also impacted by the accounting treatment of some of our hedging-related derivative transactions. We entered into nontrading derivative transactions primarily as economic hedges of the interest rate risks of our nontrading interest-earning assets and interest-bearing liabilities. Some of these derivatives qualify as hedges for accounting purposes while others do not. When derivative transactions qualify as hedges of interest rate risks for accounting purposes, the interest arising from the derivatives is reported in interest income and expense, where it offsets interest flows from the hedged items. When derivatives do not qualify for hedge accounting treatment, the interest flows that arise from those derivatives will appear in trading income.

You should read the following discussion and analysis in conjunction with the consolidated financial statements.