Reconciliation of Segmental Results of Operations to Consolidated Results of Operations


The following table presents a reconciliation of the total results of operations and total assets of the Group’s business segments under management reporting systems to the consolidated financial statements for the years ended December 31, 2012, 2011 and 2010, respectively.

 

2012

2011

2010

in € m.

Total Management Reporting

Consoli-
dation & Adjustments

Total Consolidated

Total Management Reporting

Consoli-
dation & Adjustments

Total Consolidated

Total Management Reporting

Consoli-
dation & Adjustments

Total Consolidated

1

Net interest income and noninterest income.

2

Starting 2012, segment assets represent consolidated view, i.e. the amounts do not include intersegment balances. Prior periods were adjusted accordingly.

3

The increase in Average Active Equity in C&A reflects the capital build up the bank is undertaking in light of increasing external capital requirements under the Basel 3 framework.

Net revenues1

34,719

(978)

33,741

33,266

(38)

33,228

28,944

(377)

28,567

Provision for credit losses

1,721

0

1,721

1,840

(1)

1,839

1,273

0

1,274

Noninterest expenses

30,619

617

31,236

25,746

253

25,999

23,308

10

23,318

Noncontrolling interests

66

(66)

213

(213)

24

(24)

Income (loss) before income taxes

2,313

(1,529)

784

5,466

(77)

5,390

4,339

(363)

3,975

Assets2

2,000,744

11,585

2,012,329

2,151,260

12,843

2,164,103

1,893,785

11,844

1,905,630

Risk-weighted assets

317,472

16,133

333,605

379,362

1,884

381,246

343,522

2,683

346,204

Average active equity3

49,191

5,929

55,120

46,599

3,850

50,449

33,505

7,848

41,353

In 2012, the main components of net revenues in C&A were:

  • Timing differences of approximately negative € 715 million related to positions which were measured at fair value for management reporting purposes and measured at amortized cost under IFRS. These effects will reverse over the life time of the positions. The negative effect included approximately € 305 million related to economically hedged positions which resulted from the reversal of prior period interest rate effects and from changes in interest rates in both euro and U.S. dollar. Approximately € 290 million were attributable to a narrowing of mid- to long-term spreads on the mark-to-market valuation of U.S. dollar/euro basis swaps related to the Group’s funding. In addition, the narrowing of credit spreads on Group’s own debt contributed mark-to-market losses of approximately € 115 million to the result in C&A.
  • Hedging of net investments in certain foreign operations decreased net revenues by approximately € 345 million.
  • The remainder of net revenues was mainly due to net interest income which was not allocated to the business segments and items outside the management responsibility of the business segments. Such items include net funding expenses on non-divisionalized assets/liabilities, e.g. deferred tax assets/liabilities, and net interest income related to tax refunds and accruals.

Noninterest expenses included litigation related charges of approximately € 360 million as well as bank levies of € 213 million, primarily related to Germany, partly offset by the UK due to a credit resulting from a double taxation agreement.

Noncontrolling interests are deducted from income before income taxes of the divisions and reversed in C&A. The decrease in 2012 compared to 2011 was mainly due to Postbank.

Assets in C&A reflect corporate assets, such as deferred tax assets or central clearing accounts, outside the management responsibility of the business segments.

Risk-weighted assets in C&A reflect corporate assets outside the management responsibility of the business segments, primarily those corporate assets related to the Group’s pension schemes. The main driver for the increase of risk-weighted assets was the reclassification of risk-weighted assets related to gross pension fund assets in 2012 to C&A.

Average active equity assigned to C&A reflects the residual amount of equity that is not allocated to the segments as described in the “Measurement of Segment Profit or Loss” section of this Note.

In 2011 and in 2010, the main components of net revenues in C&A were:

  • Timing differences from different accounting methods used for management reporting and IFRS amounted to approximately positive € 25 million and negative € 210 million in 2011 and 2010, respectively. In 2011, the result was essentially related to two partly offsetting effects. The widening of the credit spread of the Group’s own debt resulted in a mark-to market gain. Economically hedged short-term positions as well as economically hedged debt issuance trades resulted in a net loss, mainly driven by movements in interest rates in both euro and U.S. dollar. In 2010, the latter was the main driver for the mark-to market loss.
  • Hedging of net investments in certain foreign operations decreased net revenues by approximately € 215 million and € 245 million, respectively.
  • The remainder of net revenues was due to net interest income which was not allocated to the business segments and items outside the management responsibility of the business segments. Such items include net funding expenses on non-divisionalized assets/liabilities, e.g. deferred tax assets/liabilities, and net interest income related to tax refunds and accruals.

Noninterest expenses in 2011 were driven by bank levies of € 247 million, primarily related to Germany and the UK. In 2010, they included the receipt of insurance payments which were partly offset by charges for litigation provisions as well as other items outside the management responsibility of the business segments.

The increase in noncontrolling interests in 2011 compared to 2010 was mainly due to Postbank.