Net Interest Income

in € m.

 

 

 

2013 increase (decrease)
from 2012

2012 increase (decrease)
from 2011

(unless stated otherwise)

2013

2012

2011

in € m.

in %

in € m.

in %

ppt – Percentage points

1

Average balances for each year are calculated in general based upon month-end balances.

2

Gross interest yield is the average interest rate earned on our average interest-earning assets.

3

Gross interest rate paid is the average interest rate paid on our average interest-bearing liabilities.

4

Net interest spread is the difference between the average interest rate earned on average interest-earning assets and the average interest rate paid on average interest-bearing liabilities.

5

Net interest margin is net interest income expressed as a percentage of average interest-earning assets.

Total interest and similar income

25,601

31,593

34,366

(5,992)

(19)

(2,773)

(8)

Total interest expenses

10,768

15,619

16,921

(4,851)

(31)

(1,302)

(8)

Net interest income

14,834

15,975

17,445

(1,141)

(7)

(1,470)

(8)

Average interest-earning assets1

1,136,662

1,250,002

1,174,201

(113,340)

(9)

75,801

6

Average interest-bearing liabilities1

979,245

1,119,374

1,078,721

(140,129)

(13)

40,653

4

Gross interest yield2

2.25 %

2.53 %

2.93 %

(0.28) ppt

(11)

(0.40) ppt

(14)

Gross interest rate paid3

1.10 %

1.40 %

1.57 %

(0.30) ppt

(21)

(0.17) ppt

(11)

Net interest spread4

1.15 %

1.13 %

1.36 %

0.02 ppt

2

(0.23) ppt

(17)

Net interest margin5

1.31 %

1.28 %

1.49 %

0.03 ppt

2

(0.21) ppt

(14)

2013

The decrease in net interest income in 2013 of € 1.1 billion, or 7 %, to € 14.8 billion compared to € 16.0 billion in 2012, was primarily driven by lower interest income on trading assets in CB&S, due to lower client activity reflecting lower liquidity and ongoing market uncertainty. Another main driver to the decline in net interest income was the accelerated de-risking strategy in NCOU. In PBC, slightly reduced margins and a strategic deposit volume reduction in Postbank also impacted net interest income in 2013. Overall, the net interest spread increased by 2 basis points, following an almost parallel decline in gross interest yield and gross interest rate paid. The net interest margin improved by 3 basis points, mainly due to margin improvements in Germany.

The development of our net interest income is also impacted by the accounting treatment of some of our hedging-related derivative transactions. We entered into nontrading derivative transactions primarily as economic hedges of the interest rate risks of our nontrading interest-earning assets and interest-bearing liabilities. Some of these derivatives qualify as hedges for accounting purposes while others do not. When derivative transactions qualify as hedges of interest rate risks for accounting purposes, the interest arising from the derivatives is reported in interest income and expense, where it offsets interest flows from the hedged items. When derivatives do not qualify for hedge accounting treatment, the interest flows that arise from those derivatives will appear in trading income. The same accounting policy has been applied for the periods ended December 31, 2013, 2012 and 2011.

2012

The decrease in net interest income in 2012 of € 1.5 billion, or 8 %, to € 16.0 billion compared to € 17.4 billion in 2011, was primarily driven by lower interest income from CB&S trading assets resulting from a lower interest rate environment and reduced asset volumes. Additionally the reduced asset base of NCOU as a result of de-risking lead to falls in interest income. The remaining decline was further impacted by lower interest income in PBC based on a decrease of purchase price allocation (PPA) effects, following the acquisition of Postbank. These developments contributed to a tightening of our net interest spread by 23 basis points and to a decline in our net interest margin by 21 basis points.