Starting December 31, 2011, the calculation of the Group’s capital and capital ratios incorporates the amended capital requirements for trading book and securitization positions following the Capital Requirements Directive 3, also known as “Basel 2.5”, as implemented in the German Banking Act and the Solvency Regulation (“Solvabilitätsverordnung”). The following table presents the risk-weighted assets, regulatory capital and capital adequacy ratios for the Group of companies consolidated for regulatory purposes excluding transitional items pursuant to section 64h (3) of the German Banking Act.
|
in € m. |
Jun 30, 2012 |
Dec 31, 2011 |
|
255,799 |
262,460 | |
|
65,004 |
68,091 | |
|
51,832 |
50,695 | |
|
Total risk-weighted assets |
372,635 |
381,246 |
|
Core Tier 1 capital |
37,833 |
36,313 |
|
Additional Tier 1 capital |
12,785 |
12,734 |
|
Tier 1 capital |
50,618 |
49,047 |
|
Tier 2 capital |
5,406 |
6,179 |
|
Tier 3 capital |
− |
− |
|
Total regulatory capital |
56,024 |
55,226 |
|
Core Tier 1 capital ratio |
10.2 % |
9.5 % |
|
Tier 1 capital ratio |
13.6 % |
12.9 % |
|
Total capital ratio |
15.0 % |
14.5 % |
The following table presents a summary of the components of the Group’s Tier 1 and Tier 2 capital excluding transitional items pursuant to section 64h (3) of the German Banking Act.
|
in € m. |
Jun 30, 2012 |
Dec 31, 2011 | ||
| ||||
|
Tier 1 capital: |
|
| ||
|
Core Tier 1 capital: |
|
| ||
|
Common shares |
2,380 |
2,380 | ||
|
Additional paid-in capital |
23,593 |
23,695 | ||
|
Retained earnings, common shares in treasury, equity classified as obligation to purchase common shares, foreign currency translation, noncontrolling interests |
30,815 |
29,400 | ||
|
Items to be fully deducted from Tier 1 capital pursuant to Section 10 (2a) KWG (inter alia goodwill and intangible assets) |
(14,551) |
(14,459) | ||
|
Items to be partly deducted from Tier 1 capital pursuant to Section 10 (6) and (6a) KWG: |
|
| ||
|
Deductible investments in banking, financial and insurance entities |
(1,434) |
(1,332) | ||
|
Securitization positions not included in risk-weighted assets |
(2,493) |
(2,863) | ||
|
Excess of expected losses over risk provisions |
(477) |
(508) | ||
|
Items to be partly deducted from Tier 1 capital pursuant to Section 10 (6) and (6a) KWG |
(4,404) |
(4,703) | ||
|
Core Tier 1 capital |
37,833 |
36,313 | ||
|
Additional Tier 1 capital: |
|
| ||
|
Noncumulative trust preferred securities1 |
12,785 |
12,734 | ||
|
Additional Tier 1 capital |
12,785 |
12,734 | ||
|
Total Tier 1 capital |
50,618 |
49,047 | ||
|
Tier 2 capital: |
|
| ||
|
Unrealized gains on listed securities (45 % eligible) |
65 |
70 | ||
|
Profit participation rights |
1,150 |
1,150 | ||
|
Cumulative trust preferred securities |
292 |
294 | ||
|
Qualified subordinated liabilities |
8,303 |
9,368 | ||
|
Items to be partly deducted from Tier 1 capital pursuant to Section 10 (6) and (6a) KWG |
(4,404) |
(4,703) | ||
|
Total Tier 2 capital |
5,406 |
6,179 | ||
Basel 2.5 requires the deduction of goodwill from Tier 1 capital. However, for a transitional period, section 64h (3) of the German Banking Act allows the partial inclusion of certain goodwill components in Tier 1 capital. While such goodwill components are not included in the regulatory capital and capital adequacy ratios shown above, the Group makes use of this transition rule in its capital adequacy reporting to the German regulatory authorities.
As of June 30, 2012, the transitional item amounted to € 274 million compared to € 319 million as of December 31, 2011. In the Group’s reporting to the German regulatory authorities, the Tier 1 capital, total regulatory capital and the total risk-weighted assets shown above were increased by this amount. Correspondingly, the Group’s reported Tier 1 and total capital ratios including this item were 13.6 % and 15.1 %, respectively, at the end of the second quarter compared to 12.9 % and 14.6 % on December 31, 2011.
