Private & Business Clients 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.

3

Contains the major core business activities of Postbank AG as well as BHW and norisbank.

Net revenues:

 

 

 

 

 

 

 

Global credit products

3,183

3,102

3,022

81

3

80

3

Deposits

2,977

3,131

3,166

(155)

(5)

(35)

(1)

Payments, cards & account products

1,022

1,023

991

(2)

0

32

3

Investment & insurance products

1,212

1,146

1,257

66

6

(111)

(9)

Other products

1,156

1,136

1,961

20

2

(825)

(42)

Total net revenues

9,550

9,540

10,397

10

0

(857)

(8)

Provision for credit losses

719

781

1,185

(62)

(8)

(404)

(34)

Total noninterest expenses

7,276

7,224

7,132

52

1

92

1

thereof:

 

 

 

 

 

 

 

Impairment of intangible assets

7

15

0

(8)

(54)

15

N/M

Noncontrolling interests

0

16

178

(15)

(97)

(162)

(91)

Income (loss) before income taxes

1,555

1,519

1,902

35

2

(383)

(20)

Cost/income ratio

76 %

76 %

69 %

N/M

0 ppt

N/M

7 ppt

Assets1

265,359

282,427

269,986

(17,068)

(6)

12,441

5

Risk-weighted assets

73,001

72,695

78,637

306

0

(5,942)

(8)

Average active equity2

13,976

12,177

12,081

1,799

15

96

1

Pre-tax return on average active equity

11 %

12 %

16 %

N/M

(1) ppt

N/M

(3) ppt

 

 

 

 

 

 

 

 

Breakdown of PBC by business

 

 

 

 

 

 

 

Private & Commercial Banking:

 

 

 

 

 

 

 

Net revenues

3,704

3,741

3,716

(37)

(1)

25

1

Provision for credit losses

128

174

252

(46)

(26)

(78)

(31)

Noninterest expenses

3,237

3,098

2,942

139

4

156

5

Income before income taxes

339

468

522

(129)

(28)

(54)

(10)

 

 

 

 

 

 

 

 

Advisory Banking International:

 

 

 

 

 

 

 

Net revenues

2,052

1,971

1,996

81

4

(25)

(1)

Provision for credit losses

248

211

176

37

17

35

20

Noninterest expenses

1,139

1,217

1,195

(78)

(6)

22

2

Income before income taxes

666

543

626

122

22

(83)

(13)

 

 

 

 

 

 

 

 

Postbank:3

 

 

 

 

 

 

 

Net revenues

3,794

3,828

4,685

(34)

(1)

(857)

(18)

Provision for credit losses

343

395

758

(52)

(13)

(363)

(48)

Noninterest expenses

2,900

2,910

2,995

(10)

0

(85)

(3)

Noncontrolling interests

0

15

178

(15)

(97)

(163)

(92)

Income before income taxes

550

508

754

42

8

(246)

(33)

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

282

293

296

(11)

(4)

(3)

(1)

Net new money

(15)

(10)

8

(6)

58

(18)

N/M

2013

Despite a challenging environment PBC delivered a stable operating performance. The low interest rate and the muted client investment activity in Germany remain challenging, while the lending environment remains benign with provision for credit losses below the prior years. European markets, in which we operate besides Germany, were marked by a reduced credit activity that has been compensated with increased business in Investment Products. The turmoils in the Chinese and Indian financial markets, observed in the last months of 2013, have not materially impacted our operations in these countries.

Net revenues increased slightly by € 10 million as compared to 2012. Higher revenues from credit products, investment & insurance products and other products were compensated by lower revenues from deposits, related to the ongoing low interest rate environment and higher negative impact from purchase price allocation on Postbank. Revenues from credit products increased by € 81 million, or 3 %, mainly reflecting mortgage volume growth in Private & Commercial Banking and higher consumer finance margins in Advisory Banking International. Revenues from investment & insurance products increased by € 66 million, or 6 %, driven by higher transaction volumes in Advisory Banking International and higher revenues from discretionary portfolio management in Private & Commercial Banking. Revenues from other products increased by € 20 million, or 2 %, benefitting from the performance of Hua Xia Bank, partly offset by several, mainly Postbank related, one-off items. Net revenues from payments, cards and accounts remained stable.

Provision for credit losses was € 719 million, down 8 % from € 781 million for 2012, driven by Private & Commercial Banking and Postbank, reflecting an improved portfolio quality and credit environment in Germany. Additionally, a credit of € 86 million (2012: € 94 million) was recorded in other interest income representing increases in the credit quality of Postbank loans recorded at fair value on initial consolidation by the Group. Advisory Banking International had an increase in provisions for credit losses, mainly caused by a difficult credit environment in Italy.

Noninterest expenses increased by € 52 million, or 1 %, compared to 2012 due to higher costs-to-achieve of € 108 million, related to Postbank integration and to OpEx, as well as higher cost allocations from Infrastructure functions, which were mostly counterbalanced by savings, mainly driven by realization of synergies from Postbank.

Income before income taxes increased by € 35 million, or 2 %, versus 2012, despite higher costs-to-achieve of € 108 million.

Invested assets were down by € 11 billion mainly driven by € 15 billion net outflows, mostly in deposits, partly offset by € 4 billion market appreciation.

2012

Net revenues decreased by € 857 million, or 8 %, versus 2011, mainly driven by the non-recurrence of a positive one-time effect of € 263 million related to our stake in Hua Xia Bank in 2011 and negative impact from purchase price allocation on Postbank. The remaining revenue decrease in other products was related to a low interest rate environment and lower revenues from investment securities due to a targeted accelerated reduction of risk positions. Net revenues from investment & insurance products decreased by € 111 million, or 9 %, mainly in Private & Commercial Banking, driven by muted client investment activity. Net revenues from credit products increased by € 80 million, or 3 %, mainly in Advisory Banking International, driven by both higher margins and volumes. Net revenues from deposits decreased slightly by € 35 million, or 1 %, driven by lower margins. Net revenues from payments, cards and accounts increased by € 32 million, or 3 %.

Provision for credit losses was € 781 million, down from € 1,185 million for 2011, mainly driven by Postbank. Additionally, a credit of € 94 million (2011: € 402 million) was recorded in other interest income representing increases in the credit quality of Postbank loans recorded at fair value on initial consolidation by the Group. Excluding Postbank, provision for credit losses further decreased, primarily attributable to lower provisions in Private & Commercial Banking reflecting an improved portfolio quality.

Noninterest expenses increased by € 92 million, or 1 %, compared to 2011 due to higher costs-to-achieve of € 134 million, related to Postbank integration and to OpEx.

Income before income taxes decreased by € 383 million, or 20 %, versus 2011, reflecting an increase in costs-to-achieve of € 134 million.

Invested assets were down mainly driven by € 10 billion net outflows, mostly in deposits, partly offset by € 7 billion in market appreciation.