Credit Exposure from Lending


Our lending businesses are subject to credit risk management processes, both at origination and on an ongoing basis. An overview of these processes is described in the credit risk section of this Risk Report.

Loan book categories segregated into a lower, medium and higher risk bucket

 

Dec 31, 2012

Dec 31, 20111

in € m.

Total

thereof: Non-Core

Total

thereof: Non-Core

1

Amounts for December 31, 2011 reflect the new business division structure established in 2012.

2

Thereof vendor financing on loans sold in Leveraged Finance amounting to € 3.0 billion and in Commercial Real Estate amounting to € 1.3 billion as of December 31, 2012 (€ 5.0 billion and € 1.6 billion as of December 31, 2011, respectively).

3

Includes loans from CMBS securitizations.

4

Loans mainly relate to CPSG.

5

Includes other smaller loans predominately in our CB&S business division.

Lower risk bucket:

 

 

 

 

PBC Mortgages

151,078

8,579

145,511

9,457

Investment-Grade/German Mid-Cap

42,906

3,356

49,657

3,986

GTB

58,882

57,876

PWM

30,666

1,106

28,832

1,194

PBC small corporates

18,745

1,833

19,116

1,146

Government collateralized/structured transactions

1,149

3,615

2,450

Corporate Investments

2,464

2,464

6,707

6,707

Sub-total lower risk bucket

305,890

17,338

311,314

24,940

Moderate risk bucket:

 

 

 

 

PBC Consumer Finance

20,316

1,303

18,996

1,266

Asset Finance (Deutsche Bank sponsored conduits)

14,786

6,395

17,651

8,365

Collateralized hedged structured transactions

13,176

3,642

15,012

5,136

Financing of pipeline assets2

4,312

1,316

6,619

1,639

Sub-total moderate risk bucket

52,590

12,656

58,278

16,406

Higher risk bucket:

 

 

 

 

Commercial Real Estate3

27,285

14,784

28,398

16,473

Leveraged Finance4

5,095

744

5,019

1,318

Other5

11,115

4,336

13,667

5,584

Sub-total higher risk bucket

43,495

19,864

47,084

23,375

Total loan book

401,975

49,858

416,676

64,721

The majority of our low risk exposures is associated with our PBC retail banking activities. 76 % of our loan book at December 31, 2012 was in the low risk category, broadly in line with the prior year end.

Our higher risk bucket predominantly relates to commercial real estate exposures. Our credit risk management approach puts strong emphasis specifically on the portfolios we deem to be of higher risk. Portfolio strategies and credit monitoring controls are in place for these portfolios. The overall commercial real estate exposures decreased by € 1.1 billion at December 31, 2012.

Impaired loans and allowance for loan losses for our higher-risk loan bucket

 

Dec 31, 2012

Dec 31, 20111

 

Total

thereof: Non-Core

Total

thereof: Non-Core

in € m.

Impaired loans

Allowance for loan losses

Impaired loans

Allowance for loan losses

Impaired loans

Allowance for loan losses

Impaired loans

Allowance for loan losses

1

Amounts for December 31, 2011 reflect the new business division structure established in 2012. 2011 numbers adjusted.

Commercial Real Estate

2,065

554

1,318

353

2,225

360

1,457

226

Leveraged Finance

64

81

4

3

158

148

93

85

Other

576

160

539

134

626

180

599

143

Total

2,705

795

1,861

490

3,009

688

2,149

454

The above decrease in impaired loans in our higher risk loan bucket was driven by a reduction in larger commercial real estate loans in relation to Postbank which only had small impairment charges due to fair value adjustments at consolidation.

The increase in allowance for loan losses with regard to commercial real estate was primarily caused by increased provisions for existing impaired loans in relation to Postbank.

Key figures comparison

Compare key figures of the past years. more