Consolidation & Adjustments

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

1

Net interest income and noninterest income.

2

Assets in C&A reflect corporate assets, such as deferred tax assets or central clearing accounts, outside the management responsibility of the business segments.

3

Risk-weighted assets in C&A reflect corporate assets outside the management responsibility of the business segments, primarily those corporate assets related to the Group’s pension schemes. The decrease of risk-weighted assets in 2013 was primarily driven by the de-risking initiatives in our pension assets. The main driver for the increase of risk-weighted assets in 2012 in comparison to 2011 was the reclassification of risk-weighted assets related to gross pension fund assets in 2012 to C&A.

4

Average active equity assigned to C&A reflects the residual amount of equity that is not allocated to the segments as described in Note 4 “Business Segments and Related Information”.

Net revenues1

(929)

(975)

(39)

46

(5)

(936)

N/M

Provision for credit losses

0

0

(1)

0

N/M

1

N/M

Total noninterest expenses

830

582

252

247

42

330

131

Noncontrolling interests

(15)

(65)

(213)

49

(76)

148

(69)

Income (loss) before income taxes

(1,744)

(1,493)

(77)

(251)

17

(1,416)

N/M

Assets2

10,372

11,577

12,843

(1,205)

(10)

(1,266)

(10)

Risk-weighted assets3

10,832

16,133

1,884

(5,300)

(33)

14,249

N/M

Average active equity4

0

0

3,850

0

18

(3,850)

N/M

2013

In 2013, C&A net revenues of negative € 929 million included negative € 330 million related to spreads for capital instruments and a € 276 million loss due to the first time inclusion of a FVA on internal uncollateralized derivatives between Treasury and CB&S. Also included were timing differences of negative € 249 million related to positions which were measured at fair value for management reporting purposes and measured at amortized cost under IFRS. These effects will reverse over the life time of the positions. Compared to 2012, these effects were significantly less negative primarily reflecting decreased EUR/USD basis risk movements and amortization back through P&L of prior years’ losses.

Noninterest expenses of € 830 million were up 42 % compared to prior year mainly due to litigation related charges, including € 528 million related to settlement with Kirch Group. Partly offsetting was a correction of historical internal cost allocation in 2013. Noninterest expenses in 2013 also included bank levy related charges of € 197 million.

The decrease in noncontrolling interests, which are deducted from income before income taxes of the divisions and reversed in C&A, was mainly due to Postbank.

Loss before income taxes was € 1.7 billion in 2013, compared to € 1.5 billion in 2012. The increase was primarily driven by the settlement with Kirch Group and the aforementioned loss due to the first time inclusion of a FVA. Partly offsetting were lower negative effects from valuation and timing differences and lower noninterest expenses.

2012

In 2012 and in 2011, net revenues in C&A included timing differences from different accounting methods used for management reporting and IFRS of negative € 715 million and positive € 25 million in 2012 and 2011, respectively. In 2012, a negative effect of € 305 million related to economically hedged positions which resulted from the reversal of prior period interest rate effects and from changes in interest rates in both euro and U.S. dollar. Approximately € 290 million were attributable to a narrowing of mid- to long-term spreads on the mark-to-market valuation of U.S. dollar/euro basis swaps related to the Group’s funding. In addition, the narrowing of credit spreads on Group’s own debt contributed mark-to-market losses of approximately € 115 million to the 2012 result in C&A. In 2011, the result was largely caused by two partly offsetting effects. The widening of the credit spread of the Group’s own debt resulted in a mark-to market gain. Economically hedged short-term positions as well as economically hedged debt issuance trades resulted in a net loss, mainly driven by movements in interest rates in both euro and U.S. dollar.

The remainder of net revenues reflected negative € 291 million related to spreads for capital instruments, net interest income which was not allocated to the business segments and items outside the management responsibility of the business segments. Such items include net funding expenses on non-divisionalized assets/lia-bilities, e.g. deferred tax assets/liabilities, and net interest income related to tax refunds and accruals.

Noninterest expenses in 2012 were driven by litigation related charges of € 360 million as well as bank levies of € 213 million, primarily related to Germany. These were partly offset by a credit from the UK, resulting from a double taxation agreement. In 2011, main drivers were bank levy related charges of € 247 million, primarily related to Germany and the UK.

The decrease in noncontrolling interests in 2012 compared to 2011 was mainly due to Postbank.

Loss before income taxes was € 1.5 billion in 2012, compared to € 77 million in 2011, primarily reflecting timing differences from different accounting methods used for management reporting and IFRS and litigation-related charges.