Non-Core Operations Unit 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

867

1,054

877

(187)

(18)

177

20

thereof:

 

 

 

 

 

 

 

Net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss

83

275

588

(191)

(70)

(313)

(53)

Provision for credit losses

818

634

391

184

29

243

62

Total noninterest expenses

3,358

3,312

2,561

47

1

751

29

thereof

 

 

 

 

 

 

 

Policyholder benefits and claims

0

0

0

0

N/M

0

N/M

Restructuring activities

7

4

0

3

61

4

N/M

Impairment of intangible assets1

0

421

0

(421)

N/M

421

N/M

Noncontrolling interests

(3)

31

14

(34)

N/M

17

121

Income (loss) before income taxes2

(3,306)

(2,923)

(2,089)

(383)

13

(834)

40

Cost/income ratio

N/M

N/M

N/M

N/M

N/M

N/M

N/M

Assets

54,224

97,451

134,812

(43,227)

(44)

(37,361)

(28)

Risk-weighted assets

48,483

80,317

103,812

(31,834)

(40)

(23,495)

(23)

Average active equity

9,833

11,920

11,447

(2,087)

(18)

473

4

Pre-tax return on average active equity

(34 %)

(25 %)

(18 %)

N/M

(9) ppt

N/M

(6) ppt

2013

During 2013, NCOU has accelerated its de-risking strategy and was accretive to capital in the period. Asset sales included disposals of capital intensive wholesale products including investments that had been transferred from Postbank, such as two separate commercial real estate portfolios. Asset de-risking in 2013 has delivered net gains of € 454 million, reflecting an approach focused on identifying capital accretive transactions in constructive market conditions.

Net revenues decreased by € 187 million, or 18 % compared to 2012 driven by portfolio revenues which have fallen as asset reductions have occurred. In 2013 such specific items included € 197 million loss related to the expected sale of BHF-BANK, € 171 million negative effect from the first-time application of Funding Valuation Adjustment (FVA), mortgage repurchase costs of € 122 million and the impact from various impairments. The net gains generated in the period on disposals were offset by lower portfolio revenues which have fallen as asset reductions have occurred. Net revenues in 2012 included negative effects related to an impairment of € 257 million to our previously held exposure in Actavis Group, refinements of the CVA methodology of € 203 million and mortgage repurchase costs of € 233 million.

Provision for credit losses increased by € 184 million, or 29 % in comparison to 2012, mainly due to specific credit events seen across portfolios including exposure to European Commercial Real Estate.

Noninterest expenses increased by € 47 million, compared to 2012. The movement includes higher litigation related costs offset by the non-recurrence of the impairment of intangible assets of € 421 million reported in the prior year.

The loss before income taxes was € 3.3 billion, an increase of € 383 million compared to the prior year. Lower revenues and higher credit losses were the main drivers, but each period was impacted by the timing and nature of specific items.

The CRR/CRD 4 pro forma fully loaded RWA equivalent capital demand has declined during 2013 by € 48 billion, which underlines the firm’s commitment to de-risking the Bank.

2012

Net revenues increased by € 177 million, or 20 %, compared to 2011. In 2012 specific items included negative effects related to refinements of the CVA methodology of € 203 million, mortgage repurchase costs of € 233 million, losses from sales of capital intensive securitization positions and a number of impairments. Revenues in 2011 were impacted by impairment charges of € 457 million related to Actavis Group as well as impairments on Greek Government bonds.

Provision for credit losses increased by € 243 million, or 62 %, in comparison to 2011 mainly due to higher provisions in relation to IAS 39 reclassified assets.

Noninterest expenses increased by € 751 million, or 29 %, compared to 2011. The increase was mainly driven by specific items such as litigation charges, settlement costs and impairments. While 2012 included € 421 million impairment of intangible assets, 2011 was impacted by a € 135 million property related impairment charge, € 97 million related to BHF-BANK and additional settlement costs.

The loss before income taxes was € 2.9 billion, an increase of € 834 million compared to 2011. The main driver was specific items leading to higher noninterest expenses for the period.