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

in € m.

 

 

 

2013 increase (decrease)
from 2012

2012 increase (decrease)
from 2011

(unless stated otherwise)

2013

2012

2011

in € m.

in %

in € m.

in %

N/M – Not meaningful

CB&S – Sales & Trading (equity)

1,125

991

312

133

13

679

N/M

CB&S – Sales & Trading (debt and other products)

2,544

4,508

4,348

(1,964)

(44)

160

4

Non-Core Operations Unit

(535)

(1,257)

(1,564)

722

(57)

307

(20)

Other

684

1,367

(372)

(682)

(50)

1,739

N/M

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

3,817

5,608

2,724

(1,791)

(32)

2,884

106

2013

Net gains on financial assets/liabilities at fair value through profit or loss decreased by € 1.8 billion to € 3.8 billion for the full year 2013. The main driver for this development was a decrease of € 2.0 billion in Sales & Trading (debt and other products), which was primarily driven by lower client activity coupled with a challenging trading environment and market uncertainty impacting Rates and Commodities, as well as by lower revenues in Foreign Exchange due to lower volatility and margin compression. In addition, the decrease was significantly driven by a fall of € 682 million in Other, mainly reflecting the non-recurrence of a prior year refinement in the calculation methodology of the Debt Valuation Adjustment (DVA) on certain derivative liabilities in CB&S, the deconsolidation of funds in DeAWM offset by increases in other revenues categories and C&A. The increase of € 722 million in NCOU was due to a decrease in net losses on financial assets/liabilities at fair value through profit or loss, mainly driven by a smaller asset base as a result of an accelerated de-risking strategy and fair value movements on some of our non-core assets. The increase of € 133 million in net gains on financial assets/liabilities at fair value through profit or loss in Sales & Trading (equity) was due to increased client activity and an improved market environment resulting in higher revenues from equity trading.

2012

Net gains on financial assets/liabilities at fair value through profit or loss increased by € 2.9 billion to € 5.6 billion for the full year 2012. The majority of the increase arose outside our Sales & Trading business. Special factors were mainly gains on products held at fair value in CB&S related to the aforementioned DVA on certain derivative liabilities, a decrease of fair value losses at Abbey Life in DeAWM and higher net gains in Consolidation & Adjustments (C&A) related to U.S. dollar/euro basis swaps designated as net investment hedges for capital investments in US entities. The increase of € 679 million of net gains on financial assets/liabilities at fair value through profit or loss in Sales & Trading (equity) was due to volatile market conditions leading to an increase in client trading activities and resulting in higher revenues from equity derivatives as well as higher fair value gains in Prime Finance. The increase of € 160 million on net gains on financial assets/liabilities at fair value through profit or loss in Sales & Trading (debt and other products) was mainly driven by higher Flow Credit revenues reflecting improved credit market conditions and higher Rates revenues driven by strong client activity. This was partially offset by lower revenues in Money Markets due to reduced volatility. The NCOU showed a decrease in net losses due to a smaller asset base as a result of de-risking activity and fair value movements on the non-core assets particularly in credit spreads.