06 – Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss


Net Interest Income

in € m.

2012

2011

2010

Interest and similar income:

 

 

 

Interest-earning deposits with banks

919

794

691

Central bank funds sold and securities purchased under resale agreements

762

977

446

Securities borrowed

203

155

133

Financial assets at fair value through profit or loss

14,124

15,376

15,589

Interest income on financial assets available for sale

1,449

935

700

Dividend income on financial assets available for sale

138

148

137

Loans

13,662

14,914

10,222

Other

985

1,579

861

Total interest and similar income

32,242

34,878

28,779

Interest expense:

 

 

 

Interest-bearing deposits

5,725

6,779

3,800

Central bank funds purchased and securities sold under repurchase agreements

315

426

301

Securities loaned

421

343

278

Financial liabilities at fair value through profit or loss

6,637

6,515

6,019

Other short-term borrowings

342

479

375

Long-term debt

1,929

1,835

1,490

Trust preferred securities

842

813

781

Other

140

243

152

Total interest expense

16,351

17,433

13,196

Net interest income

15,891

17,445

15,583

Interest income recorded on impaired financial assets was € 100 million, € 83 million and € 146 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss

in € m.

2012

2011

2010

1

Includes € 167 million, € (20) million and € 39 million from securitization structures for the years ended December 31, 2012, 2011 and 2010, respectively. Fair value movements on related instruments of € 97 million, € (108) million and € 163 million for December 31, 2012, 2011 and 2010, respectively, are reported within trading income. Both are reported under Sales & Trading (debt and other products). The total of these gains and losses represents the Group’s share of the losses in these consolidated securitization structures.

Trading income:

 

 

 

Sales & Trading (equity)

1,601

(1,404)

133

Sales & Trading (debt and other products)

4,630

4,379

4,982

Total Sales & Trading

6,230

2,975

5,115

Other trading income

(669)

(226)

(1,457)

Total trading income

5,561

2,749

3,658

Net gains (losses) on financial assets/liabilities designated at fair value through profit or loss:

 

 

 

Breakdown by financial asset/liability category:

 

 

 

Securities purchased/sold under resale/repurchase agreements

14

(20)

35

Securities borrowed/loaned

(1)

(0)

Loans and loan commitments

738

(894)

(331)

Deposits

(56)

(368)

(13)

Long-term debt1

(698)

1,772

83

Other financial assets/liabilities designated at fair value through profit or loss

41

(181)

(78)

Total net gains (losses) on financial assets/liabilities designated at fair value through profit or loss

38

309

(304)

Total net gains (losses) on financial assets/liabilities at fair value through profit or loss

5,599

3,058

3,354

Combined net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss

in € m.

2012

2011

2010

1

Includes the net interest spread on loans as well as the fair value changes of credit default swaps and loans designated at fair value through profit or loss.

2

Includes net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss of origination, advisory and other products.

Net interest income

15,891

17,445

15,583

Net gains (losses) on financial assets/liabilities at fair value through profit or loss

5,599

3,058

3,354

Total net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss

21,490

20,503

18,937

Net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss by Corporate Division/product:

 

 

 

Sales & Trading (equity)

1,738

1,504

2,151

Sales & Trading (debt and other products)

8,212

8,107

9,102

Total Sales & Trading

9,951

9,611

11,253

Loan products1

337

353

171

Remaining products

1,015

535

353

Corporate Banking & Securities2

11,303

10,499

11,777

Global Transaction Banking

1,869

1,842

1,451

Asset & Wealth Management

1,451

991

1,179

Private & Business Clients

6,221

6,623

3,875

Non-Core Operations Unit

277

588

321

Consolidation & Adjustments

370

(40)

333

Total net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss

21,490

20,503

18,937

The Group’s trading and risk management businesses include significant activities in interest rate instruments and related derivatives. Under IFRS, interest and similar income earned from trading instruments and financial instruments designated at fair value through profit or loss (e.g., coupon and dividend income), and the costs of funding net trading positions, are part of net interest income. The Group’s trading activities can periodically shift income between net interest income and net gains (losses) of financial assets/liabilities at fair value through profit or loss depending on a variety of factors, including risk management strategies. In order to provide a more business-focused presentation, the Group combines net interest income and net gains (losses) of financial assets/liabilities at fair value through profit or loss by business division and by product within CB&S.