24 – Leases


The Group is lessee under lease arrangements covering property and equipment.

Finance Lease Commitments

Most of the Group’s finance lease arrangements are made under usual terms and conditions. The Group has one significant lease contract that includes a bargain purchase option to acquire the building at expiration of the leasing contract.

Net Carrying Value of Leasing Assets Held under finance leases

in € m.

Dec 31, 2012

Dec 31, 2011

Land and buildings

90

86

Furniture and equipment

2

1

Other

1

Net carrying value

92

88

Future Minimum Lease Payments Required under the Group’s Finance Leases

in € m.

Dec 31, 2012

Dec 31, 2011

1

The contingent rent is based on market interest rates, such as three months EURIBOR; below a certain rate the Group receives a rebate.

Future minimum lease payments:

 

 

not later than one year

10

10

later than one year and not later than five years

37

39

later than five years

10

4

Total future minimum lease payments

57

53

less: Future interest charges

15

7

Present value of finance lease commitments

42

46

Future minimum lease payments to be received

11

14

Contingent rent recognized in the income statement1

1

1

Operating Lease Commitments

The Group leases the majority of its offices and branches under long-term agreements. Most of the lease contracts are made under usual terms and conditions, which means they include options to extend the lease by a defined amount of time, price adjustment clauses and escalation clauses in line with general office rental market conditions. However the lease agreements do not include any clauses that impose any restriction on the Group’s ability to pay dividends, engage in debt financing transactions or enter into further lease agreements. The Group has one significant lease contract which contains five options to extend the lease each for a period of five years and there is no purchase option in this specific lease.

Future Minimum Lease Payments Required under the Group’s Operating Leases

in € m.

Dec 31, 2012

Dec 31, 2011

Future minimum rental payments:

 

 

not later than one year

880

891

later than one year and not later than five years

2,426

2,572

later than five years

1,745

2,246

Total future minimum rental payments

5,051

5,709

less: Future minimum rentals to be received

190

204

Net future minimum rental payments

4,861

5,505

As of December 31, 2012 the total future minimum rental payments included € 451 million for the Group headquarters in Frankfurt am Main that was sold and leased back on December 1, 2011. The Group entered into a 181 months leaseback arrangement for the entire facility in connection with the transaction.

In 2012, the rental payments for lease and sublease agreements amounted to € 852 million. This included charges of € 860 million for minimum lease payments and € 22 million for contingent rents as well as € 30 million related to sublease rentals received.