26 – Non-Current Assets and Disposal Groups Held for Sale


Within the balance sheet, non-current assets and disposal groups held for sale are included in Other assets and Other liabilities.

in € m.

Dec 31, 2012

Dec 31, 2011

Cash, due and deposits from banks, Central bank funds sold and securities purchased under resale agreements

0

Trading assets, Derivatives, Financial assets designated at fair value though P&L

2,012

Financial assets available for sale

4

115

Loans

Property and equipment

2

41

Other assets

101

198

Total assets classified as held for sale

107

2,366

 

 

 

Deposits, Central bank funds purchased and securities sold under resale agreements

Trading liabilities, Derivatives, Financial liabilities designated at fair value though P&L

Long-term debt

Other liabilities

78

1,669

Total liabilities classified as held for sale

78

1,669

As of December 31, 2012 and December 31, 2011, there were no unrealized net gains (losses) relating to non-current assets and disposal groups classified as held for sale included in Accumulated other comprehensive income.

Non-Current Assets and Disposal Groups Held for Sale as of December 31, 2012

In the fourth quarter 2012, the Group classified a wholly owned subsidiary as a disposal group held for sale. The entity belongs to the Corporate Division GTB and provides merchant acquiring services to multi-national clients of the Group. Pursuant to the sales agreement reached with the acquirer, the unit is expected to be sold within one year. The classification of the disposal group to the held for sale category did not lead to an impairment loss.

In the third quarter 2012, the Group classified several disposal groups, mainly consisting of foreclosures, as held for sale within the Corporate Division CB&S. All assets are expected to be sold within one year. The classification as held for sale did not result in an impairment loss.

Within the Corporate Division AWM, the Group had also classified a disposal group, mainly consisting of real estate fund units, as held for sale. The disposal of the unit closed in the first quarter 2013. The classification as held for sale had led to an impairment loss of € 1 million, which was recognized in Other income in the second quarter 2012.

BHF-BANK

On September 20, 2012, the Group announced that it has reached an agreement with Kleinwort Benson Group, a wholly owned subsidiary of RHJ International, on the sale of BHF-BANK AG. The transaction is subject to regulatory approvals. Closing is not expected to occur before the publication of this report. Given the uncertainty created by outstanding substantive approvals, the Group does not consider held for sale classification appropriate as of year-end 2012 and will not reclassify the disposal group as held for sale until such approvals are given.

Disposals in 2012

Division

Disposal

Financial impact1

Date of the disposal

1

Impairment losses and reversals of impairment losses are included in Other income.

Former Corporate Investments

The exposure in Actavis mainly consisted of € 4.0 billion in loans and € 33 million in equity method investments.

As a result of the substantial progress towards an agreement for a third party to acquire Actavis, the Group recognized an impairment loss of € 257 million in the first quarter 2012, before its classification as held for sale. The classification as held for sale did not result in any additional impairment loss. Ongoing negotiations with the buyer may result in an adjustment to the contractual purchase price.

Fourth quarter 2012

Former Corporate Investments

Several buildings held as property and equipment.

None.

In 2012

Corporate Banking & Securities

A disposal group mainly including traded loans, mortgage servicing rights and financial guarantees.

An impairment loss of € 22 million was recorded in 2011.

First quarter 2012

Asset & Wealth Management

Several disposal groups and several assets previously acquired as part of the acquisition of the Sal. Oppenheim Group.

None.

In 2012

Change in Classification in 2012

Division

Change in classification

Financial impact1

Date and reason for change in classification

1

Impairment losses and reversals of impairment losses are included in Other income.

Corporate Banking & Securities

An investment in an associate.

The classification of the investment as held for sale led to an initial impairment loss of € 2 million in 2011 and, due to a change in the fair value less cost to sell, to a reversal of that impairment loss of € 2 million in the first quarter 2012.

Second quarter 2012, as despite attempts to sell there have not been any buyers.

Non-Current Assets and Disposal Groups Held for Sale as of December 31, 2011

Division

Non-current assets and disposal groups held for sale

Financial impact1

Additional information

1

Impairment losses and reversals of impairment losses are included in Other income.

Corporate Banking & Securities

A disposal group, mainly consisting of traded loans, mortgage servicing rights and financial guarantees.

An impairment loss of € 22 million was recorded in 2011.

Disposals in 2012

Corporate Banking & Securities

An investment in an associate and several disposal groups.

The classification as held for sale of the investment in an associate led to an impairment loss of € 2 million in 2011. All other classifications did not result in any impairment loss.

Change in Classification in 2012

Asset & Wealth Management

Several disposal groups, mainly including property and equipment.

None.

Disposals in 2012

Disposals in 2011

Division

Disposal

Financial impact1

Date of the disposal

1

Impairment losses and reversals of impairment losses are included in Other income.

Former Corporate Investments

The Group headquarters in Frankfurt am Main.

The classification of property and equipment of € 592 million as held for sale in the first quarter 2011 resulted in an initial impairment loss of € 34 million, with an additional impairment loss of € 13 million recorded in the second quarter 2011. On final settlement in the fourth quarter 2011 and after adjustments for retained assets, the Group sold assets of € 528 million, resulting in an impairment loss of € 37 million equal to a reversal of € 10 million compared to the total impairment losses previously incurred in the first half 2011.

Fourth quarter 2011

Corporate Banking & Securities

An investment in an associate, a subsidiary that mainly included a German real estate investment property asset and several disposal groups.

None.

In 2011

Asset & Wealth Management

A subsidiary and several assets (previously acquired as part of the acquisition of the Sal. Oppenheim Group).

None.

In 2011

Private & Business Clients

A non-core business activity.

The classification as a disposal group with related goodwill of € 5 million resulted in an impairment loss of € 3 million in 2011.

Second quarter 2011

Private & Business Clients

Postbank’s Indian subsidiary Deutsche Postbank Home Finance Ltd.

None.

First quarter 2011

Change in Classification in 2011

Division

Change in classification

Financial impact1

Date and reason for the change in classification

1

Impairment losses and reversals of impairment losses are included in Other income.

Former Corporate Investments

BHF-BANK

None.

Second quarter 2011, because negotiations ended.