20 – Allowance for Credit Losses


The allowance for credit losses consists of an allowance for loan losses and an allowance for off-balance sheet positions.

Breakdown of the movements in the Group’s allowance for loan losses

 

2012

2011

2010

in € m.

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Allowance, beginning of year

2,011

2,150

4,162

1,643

1,653

3,296

2,029

1,313

3,343

Provision for loan losses

1,115

613

1,728

907

925

1,832

562

751

1,313

Net charge-offs:

(762)

(324)

(1,086)

(512)

(385)

(897)

(896)

(404)

(1,300)

Charge-offs

(798)

(483)

(1,281)

(553)

(512)

(1,065)

(934)

(509)

(1,443)

Recoveries

36

158

195

41

127

168

38

104

143

Changes in the group of consolidated companies

(0)

(0)

Exchange rate changes/other

(98)

(9)

(107)

(26)

(43)

(69)

(53)

(6)

(60)

Allowance, end of year

2,266

2,430

4,696

2,011

2,150

4,162

1,643

1,653

3,296

Activity in the Group’s allowance for off-balance sheet positions (contingent liabilities and lending commitments)

 

2012

2011

2010

in € m.

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Allowance, beginning of year

127

98

225

108

110

218

83

124

207

Provision for off-balance sheet positions

(7)

0

(7)

19

(12)

7

(18)

(21)

(39)

Usage

Changes in the group of consolidated companies

(0)

0

0

42

42

Exchange rate changes/other

(2)

(1)

(3)

(0)

0

0

1

7

8

Allowance, end of year

118

97

215

127

98

225

108

110

218

In 2010 the Group recorded changes in the group of consolidated companies for off-balance sheet allowances following the consolidation of acquisitions amounting to € 34 million for Postbank Group and € 8 million for Sal. Oppenheim/BHF-BANK.