Corporate Banking & Securities Corporate Division


in € m.

 

 

 

2012 increase (decrease)
from 2011

2011 increase (decrease)
from 2010

(unless stated otherwise)

2012

2011

2010

in € m.

in %

in € m.

in %

N/M – Not meaningful

1

Segment assets represent consolidated view, i.e. the amounts do not include intersegment balances.

2

See Note 05 “Business Segments and Related Information” to the consolidated financial statements for a description of how average active equity is allocated to the divisions.

Net revenues:

 

 

 

 

 

 

 

Sales & Trading (debt and other products)

9,181

8,520

9,844

661

8

(1,324)

(13)

Sales & Trading (equity)

2,288

2,235

2,875

53

2

(640)

(22)

Origination (debt)

1,417

1,056

1,200

361

34

(144)

(12)

Origination (equity)

518

559

706

(41)

(7)

(147)

(21)

Advisory

590

621

573

(31)

(5)

48

8

Loan products

1,107

1,158

1,146

(51)

(4)

12

1

Other products

547

(39)

(62)

586

N/M

23

(37)

Total net revenues

15,648

14,109

16,282

1,539

11

(2,173)

(13)

Provision for credit losses

121

90

19

31

34

71

N/M

Total noninterest expenses

12,637

10,341

10,920

2,296

22

(579)

(5)

therein:

 

 

 

 

 

 

 

Restructuring activities

246

246

N/M

N/M

Impairment of intangible assets

1,174

1,174

N/M

N/M

Noncontrolling interests

17

21

21

(4)

(19)

Income (loss) before income taxes

2,874

3,657

5,321

(783)

(21)

(1,664)

(31)

Cost/income ratio

81 %

73 %

67 %

8 ppt

6 ppt

Assets1

1,475,090

1,591,863

1,314,556

(116,773)

(7)

277,307

21

Risk-weighted assets

124,939

155,302

139,216

(30,363)

(20)

16,086

12

Average active equity2

18,236

14,389

13,320

3,847

27

1,069

8

Pre-tax return on average active equity

16 %

25 %

40 %

(9) ppt

(15) ppt

For the full year 2012, Sales & Trading (debt and other products) net revenues were € 9.2 billion, an increase of € 661 million, or 8 %, despite a negative impact of € 186 million relating to Credit Valuation Adjustments (CVAs) in the fourth quarter 2012 due to a refinement in the calculation methodology and RWA mitigation. Revenues in Rates and Credit Flow Trading were significantly higher than the prior year, driven by significantly higher Flow Credit revenues reflecting improved credit market conditions, and by higher Rates revenues reflecting strong client activity, particularly in Europe. Revenues in Structured Finance were higher than the prior year, reflecting a strong client demand, particularly for CMBS products. In contrast, despite increased volumes, Foreign Exchange revenues were lower than the prior year as a result of margin compression. Revenues in Money Markets were lower than the prior year due to lower volatility. In Commodities and RMBS, revenues were lower compared to 2011. Revenues in Emerging Markets were in line with the prior year.

Sales & Trading (equity) generated revenues of € 2.3 billion in 2012, a slight increase compared to the prior year. Equity Derivatives revenues were significantly higher than the prior year which was negatively impacted by volatile market conditions. Equity Trading revenues were in line with the prior year with market share gains offsetting more difficult market conditions. In Prime Finance, revenues were lower than the prior year driven by lower margins.

Origination and Advisory revenues increased to € 2.5 billion, up € 289 million compared to the full year 2011. Deutsche Bank was ranked number five globally, by share of Corporate Finance fees, and number one in Europe. In Advisory revenues were down in comparison to the prior year. Deutsche Bank was ranked number six globally and number two in Europe. Debt Origination revenues increased due to corporate debt issuance, while Equity Origination revenues decreased, reflecting an industry wide decline in IPO activity in the first half of 2012. Deutsche Bank was ranked number five globally for Equity Origination, and number two in Europe. (All ranks from Dealogic unless otherwise stated).

For the full year 2012, net revenues from Other products were € 547 million, compared to negative € 39 million in 2011. The increase was driven by € 516 million relating to the impact of a refinement in the calculation methodology of the Debt Valuation Adjustment (DVA) on certain derivative liabilities.

Noninterest expenses were € 12.6 billion, a substantial increase of € 2.3 billion compared to € 10.3 billion for the full year 2011. Approximately half of the increase related to the impairment of intangible assets. The increase also included € 315 million cost-to-achieve related to OpEx. Additionally, noninterest expenses were impacted by adverse foreign exchange rate movements and higher litigation related charges. These increases were partially offset by the absence of a specific charge of € 310 million for a German VAT claim in the prior year, and lower non-performance related compensation costs reflecting the implementation of OpEx.