Deutsche Asset & Wealth Management Corporate Division

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

Segment assets represent consolidated view, i.e., the amounts do not include intersegment balances.

2

See Note 4 “Business Segments and Related Information” to the consolidated financial statements for a description of how average active equity is allocated to the divisions.

Net revenues:

 

 

 

 

 

 

 

Management Fees and other recurring revenues

2,453

2,301

2,315

151

7

(14)

(1)

Performance and trans. fees and other non recurring revenues

917

884

927

34

4

(43)

(5)

Net Interest Income

545

496

348

48

10

148

43

Other product revenues

327

369

510

(42)

(11)

(141)

(28)

Mark-to-market movements on policyholder positions in Abbey Life

494

420

178

74

18

242

136

Total net revenues

4,735

4,470

4,278

266

6

192

4

Provision for credit losses

23

18

16

5

29

2

13

Total noninterest expenses

3,929

4,297

3,321

(368)

(9)

976

29

thereof:

 

 

 

 

 

 

 

Policyholder benefits and claims

460

414

207

46

11

207

100

Restructuring activities

170

104

0

66

63

104

N/M

Impairment of intangible assets

14

202

0

(188)

(93)

202

N/M

Noncontrolling interests

1

1

0

0

60

1

N/M

Income (loss) before income taxes

782

154

941

628

N/M

(787)

(84)

Cost/income ratio

83 %

96 %

78 %

N/M

(13) ppt

N/M

19 ppt

Assets1

72,613

78,103

68,848

(5,490)

(7)

9,255

13

Risk-weighted assets

12,553

12,429

14,625

124

1

(2,196)

(15)

Average active equity2

5,855

5,907

5,656

(52)

(1)

251

4

Pre-tax return on average active equity

13 %

3 %

17 %

N/M

11 ppt

N/M

(14) ppt

Additional information

in € bn.

 

 

 

2013 increase (decrease)
from 2012

2012 increase (decrease)
from 2011

1

We define invested assets as (a) assets we hold on behalf of customers for investment purposes and/or (b) client assets that are managed by us. We manage invested assets on a discretionary or advisory basis, or these assets are deposited with us.

(unless stated otherwise)

2013

2012

2011

in € bn.

in %

in € bn.

in %

Invested assets1

923

920

897

3

0

23

3

Net new money

(13)

(25)

(20)

12

(48)

(5)

25

2013

In 2013, DeAWM benefitted from the increase in equity and bond markets. In addition, DeAWM’s initiative to improve its operating platform delivered cost efficiencies.

In DeAWM net revenues for full year 2013 were € 4.7 billion, an increase of € 266 million, or 6 %, compared to 2012.

Management Fees and other recurring revenues increased by € 151 million, or 7 %, due to an increase of the average assets under management for the year following the positive market conditions and margin improvements coming from a favorable shift in product mix from growth in Alternatives and private clients. Mark-to-market movements on policyholder positions in Abbey Life increased by € 74 million, or 18 % versus 2012, largely offset in noninterest expenses. Net interest income increased by € 48 million, or 10 %, due to strong growth in lending revenues for securitized loans and commercial mortgages. Performance and transaction fees and other non recurring revenues were up € 34 million, or 4 %, driven by higher performance fees across Alternatives and actively managed funds. Other product revenues decreased compared to 2012 by € 42 million, or 11 % mainly due to a gain on the sale of Value Retail business in the prior year.

Provision for credit losses increased by € 5.0 million, or 29 %, compared to 2012 mainly resulting from a specific client lending provision in Switzerland.

Noninterest expenses were down € 368 million, or 9 %, compared to 2012 mainly due to headcount reductions related to OpEx in 2013 as well as Scudder and IT related impairments in 2012, partly offset by the aforementioned effect related to Abbey Life.

Income before income taxes was € 782 million in 2013, an increase of € 628 million compared to 2012. This reflects a solid revenue performance, impairments taken in 2012 as well as our progress made on OpEx in 2013.

Invested assets in DeAWM were € 923 billion as of December 31¸ 2013, an increase of € 3 billion versus December 31, 2012, mainly driven by market appreciation of € 40 billion, partly offset by foreign currency effects, outflows and other movements. Net outflows were primarily driven by low margin institutional clients partially offset by € 11 billion inflows from private clients.

2012

Net revenues increased slightly by € 192 million, or 4 %, compared to € 4.3 billion in 2011. Revenues in Mark-to-market movements on policyholder positions in Abbey Life increased by € 242 million, or 136 %, offset in noninterest expenses.

Net interest income revenues increased by € 148 million, or 43 % reflecting various product initiatives targeting stable funding. Other product revenues decreased compared to 2011 by € 141 million, or 28 % driven by one off gains on sales in 2011 in RREEF and reduced demand for hedge fund products. Performance and transaction fees and other non recurring revenues decreased by € 43 million, or 5 % due to decreased client activity. Management Fees and other recurring revenues decreased slightly by € 14 million, or 1 %.

Provision for credit losses increased by € 2.0 million, or 13 %, compared to 2011 mainly resulting from US lending businesses.

Noninterest expenses were up € 976 million, or 29 %, compared to 2011 mainly due to the aforementioned effect related to Abbey Life, € 202 million of impairments related to Scudder, € 90 million of IT-related impairments, € 104 million in costs-to-achieve related to OpEx, costs incurred from the strategic review and litigation-related charges.

Income before income taxes was € 154 million in 2012, a decrease of € 787 million compared to 2011. Higher revenues were more than offset by increased costs due to aforementioned restructuring activities as well as impairment.

Invested assets in DeAWM were € 920 billion as of December 31, 2012, an increase of € 23 billion versus December 31, 2011, mainly driven by market appreciation of € 55 billion, offset by outflows of € 25 billion and foreign currency movements of € 7 billion. The private bank attracted inflows of € 15 billion for the year offset by outflows in asset management, particularly from the institutional business which was impacted by the strategic review.