Noninterest Expenses

in Mio €

 

 

 

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

 

 

 

 

 

 

 

1 includes:

 

 

 

 

 

 

 

 

2013

2012

2011

in € m.

in %

in € m.

in %

IT costs

3,074

2,547

2,194

527

21

353

16

Occupancy, furniture and equipment expenses

2,073

2,115

2,072

(42)

(2)

43

2

Professional service fees

1,804

1,852

1,621

(48)

(3)

231

14

Communication and data services

865

907

849

(42)

(5)

58

7

Travel and representation expenses

441

518

539

(77)

(15)

(21)

(4)

Payment, clearing and custodian services

569

609

504

(40)

(7)

105

21

Marketing expenses

314

362

410

(48)

(13)

(48)

(12)

Consolidated investments

797

760

652

37

5

108

17

Other expenses2

5,189

5,347

3,815

(158)

(3)

1,532

40

Total general and administrative expenses

15,126

15,017

12,657

110

1

2,360

19

N/M – Not meaningful

 

 

 

 

 

 

 

2 Includes litigation related expenses of € 3.0 billion in 2013 and of € 2.6 billion in 2012. 2011 included specific charges in CB&S (€ 655 million litigation related expenses and a specific charge of € 310 million relating to the impairment of a German VAT claim) and the first time consideration of € 247 million for the German and UK bank levies.

Compensation and benefits

12,329

13,490

13,135

(1,160)

(9)

355

3

General and administrative expenses1

15,126

15,017

12,657

110

1

2,360

19

Policyholder benefits and claims

460

414

207

46

11

207

100

Impairment of intangible assets

79

1,886

0

(1,808)

(96)

1,886

N/M

Restructuring activities

399

394

0

5

1

394

N/M

Total noninterest expenses

28,394

31,201

25,999

(2,807)

(9)

5,202

20

Compensation and benefits

2013

Compensation and benefits decreased by € 1.2 billion, or 9 %, to € 12.3 billion in 2013 compared to € 13.5 billion in 2012. The reduction was driven by lower compensation and benefits, reflecting a reduced deferred award amortization due to lower deferred grants awarded and positive effects from the ongoing implementation of OpEx.

2012

In the full year 2012, compensation and benefits were up by € 355 million, or 3 %, compared to 2011. Half of the increase in 2012 was attributable to Variable Compensation mainly due to a decrease in the deferral rate from 61 % to 47 % which led to an increase of the cash bonus component. This was partly offset by deferred award amortization based on a reduced deferred compensation charge for employees eligible for career retirement. The other significant driver of the increase was the negative impact of FX translation.

General and administrative expenses

2013

General and administration expenses increased by € 110 million, or 1 %, from € 15.0 billion in 2012 to € 15.1 billion in 2013. The increase was primarily driven by higher litigation expenses as well as higher IT costs resulting from higher cost-to-achieve and project ramp-up costs in 2013. Partly offsetting was the non-recurrence of turnaround measures taken in the Netherlands in 2012. In addition, professional service fees, communication, travel and representation expenses as well as marketing expenses decreased.

2012

General and administration expenses increased by € 2.4 billion, or 19 %, from € 12.7 billion in 2011 to € 15.0 billion in 2012. The main driver for the increase were new litigation provisions as well as items related to the turnaround measures in the Bank’s commercial banking activities in the Netherlands; both shown in other expenses. Further increases resulted from higher IT costs, including the write-down of the technology platform NPP, higher depreciation on IT, and the new Magellan platform in PBC. Professional service fees increased due to higher legal costs relating to litigations and costs related to the strategic review in DeAWM. Higher costs in consolidated investments were driven by The Cosmopolitan of Las Vegas and Maher Terminals.

Policyholder benefits and claims

2013

Policyholder benefits and claims increased by € 46 million from € 414 million in 2012 to € 460 million in 2013 and are solely driven by insurance-related charges regarding the Abbey Life business. These charges are offset by net gains on financial assets/liabilities at fair value through profit or loss on policyholder benefits and claims.

2012

Policyholder benefits and claims in 2012 were € 414 million, an increase of € 207 million compared to the prior year and were solely driven by insurance-related charges regarding the Abbey Life business.

Impairment of intangible assets

2013

In 2013 the impairment charges on goodwill and intangibles of € 79 million were mainly attributable to the commercial banking activities in the Netherlands. Similar as in 2012, these charges incurred in respect of the further execution of the turn-around measures as part of the Strategy 2015+.

2012

In 2012, impairment charges on goodwill and other intangible assets were € 1.9 billion. They included impairments of € 1.2 billion for CB&S prior to re-segmentation. Post segmentation reviews resulted in a further € 421 million of goodwill impairments in the newly established NCOU. Impairments of other intangible assets included € 202 million in DeAWM and € 73 million in GTB relating to commercial banking activities in the Netherlands. There was no charge for impairment of intangible assets in 2011.

Restructuring

2013

In 2013, restructuring expenses of € 399 million resulted from our OpEx Programm and were virtually unchanged to the prior year.

2012

Restructuring activities were € 394 million in 2012. Restructuring activities in 2012 led to lower Salary and Benefit costs in the fourth quarter 2012. There were no such costs in 2011.