Global Transaction Banking 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:

 

 

 

 

 

 

 

Transaction services

4,069

4,200

3,816

(130)

(3)

384

10

Other products

0

0

0

0

N/M

0

N/M

Total net revenues

4,069

4,200

3,816

(130)

(3)

384

10

Provision for credit losses

315

208

198

107

52

10

5

Total noninterest expenses

2,648

3,326

2,588

(679)

(20)

738

29

thereof:

 

 

 

 

 

 

 

Restructuring activities

54

40

0

13

33

40

N/M

Impairment of intangible assets

57

73

0

(16)

(22)

73

N/M

Noncontrolling interests

0

0

0

0

N/M

0

N/M

Income (loss) before income taxes

1,107

665

1,029

441

66

(364)

(35)

Cost/income ratio

65 %

79 %

68 %

N/M

(14) ppt

N/M

11 ppt

Assets1

97,240

87,997

97,423

9,243

11

(9,426)

(10)

Risk-weighted assets

36,811

34,976

35,127

1,835

5

(151)

0

Average active equity2

5,082

4,133

3,811

949

23

322

8

Pre-tax return on average active equity

22 %

16 %

27 %

N/M

6 ppt

N/M

(11) ppt

2013

GTB’s profitability increased in 2013 compared to 2012 despite challenging market conditions. The results in 2013 and 2012 included specific items related to the execution of the Strategy 2015+. Both periods comprised cost-to-achieve related to the Operational Excellence (OpEx) Programm as well as an impairment of an intangible asset. In addition, 2012 included a litigation-related charge as well as the settlement of the credit protection received from the seller as part of the turn-around measures of the commercial banking activities in the Netherlands.

Net revenues decreased by € 130 million, or 3 %, compared to 2012. 2012 included a settlement payment related to the aforementioned turn-around measures in the Netherlands. 2013 contained a gain from the sale of Deutsche Card Services. Throughout 2013, the macroeconomic environment proved to be challenging with persistent low interest rates in core markets, and competitive pressures on margins. Furthermore, foreign exchange movements compared to 2012 adversely impacted GTB’s result reported in Euro. Despite the above headwinds and specific items, revenues increased versus 2012 with growth materializing in APAC and the Americas. Net revenues in Trade Finance were stable benefiting from strong volumes which offset the impact from the competitive margin environment. Trust & Securities Services showed a robust performance in this market environment based on higher volumes. Revenues in Cash management benefited from strong transaction volumes and client balances.

Provision for credit losses increased by € 107 million, or 52 %, versus 2012. The increase was primarily driven by a single client credit event in Trade Finance, partly offset by lower provisions in the commercial banking activities in the Netherlands.

Noninterest expenses decreased by € 679 million, or 20 %, compared to 2012, mainly driven by the non-recurrence of the aforementioned litigation-related charge as well as lower turn-around charges in the Netherlands. Cost-to-achieve related to the OpEx Programm of € 109 million increased by € 68 million versus 2012. Excluding these charges, noninterest expenses were lower than in 2012 due to the non-recurrence of integration costs of the commercial banking activities in the Netherlands as well as the continued focus on cost management. This was partly offset by an increase in expenses related to higher business activity and the execution of the Strategy 2015+.

Income before income taxes increased by € 441 million, or 66 %, compared to 2012 due to specific items incurred in 2012.

2012

GTB’s results in 2012 included specific items as mentioned before.

Net revenues increased significantly by € 384 million, or 10 %, compared to 2011. 2012 included a settlement payment related to the aforementioned turn-around measures in the Netherlands. Despite this specific item, revenues increased driven by a strong performance across products and regions benefiting from strong volumes while interest rate levels continued to be low. Trade Finance profited from high demand for international trade and financing products. Trust & Securities Services grew on the back of higher fee income especially in the Corporate Trust business in the U.S. Cash Management benefited from a sustained “flight-to-quality” trend, resulting in strong transaction volumes and higher deposit balances, as well as from liquidity management.

Provision for credit losses increased by € 10 million, or 5 %, versus 2011, which was driven by the commercial banking activities acquired in the Netherlands. This was partly offset by lower provisions in the Trade Finance business.

Noninterest expenses were up € 738 million, or 29 %, compared to 2011, mainly driven by the aforementioned turn-around measures as well as the litigation-related charge. Excluding these charges, noninterest expenses were above 2011 reflecting higher expenses related to compensation and to higher business activity. This was partly offset by the non-recurrence of higher amortization of an upfront premium paid for credit protection received in 2011.

Income before income taxes decreased by € 364 million, or 35 %, compared to 2011. The decrease resulted from the aforementioned turn-around measures as well as the litigation-related charge.