Segment Results of Operations

The following is a discussion of the results of our business segments. See Note 4 “Business Segments and Related Information” to the consolidated financial statements for information regarding:

  • changes in the format of our segment disclosure;
  • the framework of our management reporting systems and
  • definitions of non-GAAP financial measures that are used with respect to each segment.

The criterion for segmentation into divisions is our organizational structure as it existed at December 31, 2013. Segment results were prepared in accordance with our management reporting systems.

2013

in € m.
(unless stated otherwise)

Corporate Banking & Securities

Global Transaction Banking

Deutsche Asset & Wealth Management

Private & Business Clients

Non-Core Operations Unit

Total Management Reporting

Consoli-
dation & Adjustments

Total Consolidated

N/M – Not meaningful

3

Starting 2012, segment assets represent consolidated view, i.e.,the amounts do not include intersegment balances. Prior periods were adjusted accordingly.

4

Includes revenues in Abbey Life related to Policyholder benefits and claims of € 494 million offset in expenses.

5

Effective July 1, 2013, the definition of active equity has been aligned to the CRR/CRD 4 framework. Under the revised definition, shareholders’ equity is adjusted only for dividend accruals, the figures for 2013 and 2012 were adjusted to reflect this effect.

6

The post-tax return on average active equity at the Group level reflects the reported effective tax rate for the Group, which was 53 % for the year ended December 31, 2013. For the post-tax return on average active equity of the segments, the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so that the segment tax rates were 42 % for the year ended December 31, 2013.

Net revenues1

13,623

4,069

4,7354

9,550

867

32,844

(929)

31,915

Provision for credit losses

190

315

23

719

818

2,064

0

2,065

Total noninterest expenses

10,353

2,648

3,929

7,276

3,358

27,564

830

28,394

thereof:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

2

0

0

0

2

5

18

23

Severance payments

27

8

5

225

13

278

25

303

Policyholder benefits and claims

0

0

460

0

0

460

0

460

Restructuring activities

147

54

170

22

7

399

0

399

Impairment of intangible assets

0

57

14

7

0

79

0

79

Noncontrolling interests

16

0

1

0

(3)

15

(15)

0

Income (loss) before income taxes

3,063

1,107

782

1,555

(3,306)

3,200

(1,744)

1,456

Cost/income ratio

76 %

65 %

83 %

76 %

N/M

84 %

N/M

89 %

Assets2,3

1,111,592

97,240

72,613

265,359

54,224

1,601,029

10,372

1,611,400

Expenditures for additions to long-lived assets

12

9

7

176

0

203

539

742

Risk-weighted assets

118,689

36,811

12,553

73,001

48,483

289,537

10,832

300,369

Average active equity5

20,687

5,082

5,855

13,976

9,833

55,434

0

55,434

Pre-tax return on average active equity

15 %

22 %

13 %

11 %

(34) %

6 %

N/M

3 %

Post-tax return on average active equity6

9 %

13 %

8 %

6 %

(20) %

3 %

N/M

1 %

1 Includes:

 

 

 

 

 

 

 

 

Net interest income

5,409

1,930

988

5,963

619

14,909

(76)

14,834

Net income (loss) from equity method investments

77

3

18

375

(105)

368

1

369

2 Includes:

 

 

 

 

 

 

 

 

Equity method investments

628

48

143

2,563

171

3,554

28

3,581

2012

in € m.
(unless stated otherwise)

Corporate Banking & Securities

Global Transaction Banking

Deutsche Asset & Wealth Management

Private & Business Clients

Non-Core Operations Unit

Total Management Reporting

Consoli-
dation & Adjustments

Total Consolidated

N/M – Not meaningful

3

Starting 2012, segment assets represent consolidated view, i.e.,the amounts do not include intersegment balances. Prior periods were adjusted accordingly.

4

Includes revenues in Abbey Life related to Policyholder benefits and claims of € 420 million offset in expenses.

5

Effective July 1, 2013, the definition of active equity has been aligned to the CRR/CRD 4 framework. Under the revised definition, shareholders’ equity is adjusted only for dividend accruals, the figures for 2013 and 2012 were adjusted to reflect this effect.

6

The post-tax return on average active equity at the Group level reflects the reported effective tax rate for the Group, which was 61 % for the year ended December 31, 2012. For the post-tax return on average active equity of the segments, the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so that the segment tax rates were 35 % for the year ended December 31, 2012.

Net revenues1

15,448

4,200

4,4704

9,540

1,054

34,711

(975)

33,736

Provision for credit losses

81

208

18

781

634

1,721

0

1,721

Total noninterest expenses

12,459

3,326

4,297

7,224

3,312

30,618

582

31,201

thereof:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

5

0

0

0

2

8

17

25

Severance payments

167

24

42

249

3

486

58

543

Policyholder benefits and claims

0

0

414

0

0

414

0

414

Restructuring activities

244

40

104

0

4

392

0

394

Impairment of intangible assets

1,174

73

202

15

421

1,886

0

1,886

Noncontrolling interests

17

0

1

16

31

65

(65)

0

Income (loss) before income taxes

2,891

665

154

1,519

(2,923)

2,307

(1,493)

814

Cost/income ratio

81 %

79 %

96 %

76 %

N/M

88 %

N/M

92 %

Assets2,3

1,464,721

87,997

78,103

282,427

97,451

2,010,699

11,577

2,022,275

Expenditures for additions to long-lived assets

15

1

1

140

0

157

477

634

Risk-weighted assets

117,056

34,976

12,429

72,695

80,317

317,472

16,133

333,605

Average active equity5

20,790

4,133

5,907

12,177

11,920

54,927

0

54,927

Pre-tax return on average active equity

14 %

16 %

3 %

12 %

(25) %

4 %

N/M

1 %

Post-tax return on average active equity6

9 %

10 %

2 %

8 %

(16) %

3 %

N/M

1 %

1 Includes:

 

 

 

 

 

 

 

 

Net interest income

5,208

1,964

1,033

6,115

1,531

15,851

123

15,975

Net income (loss) from equity method investments

131

5

6

312

(295)

159

4

163

2 Includes:

 

 

 

 

 

 

 

 

Equity method investments

751

46

131

2,303

307

3,538

39

3,577

2011

in € m.
(unless stated otherwise)

Corporate Banking & Securities

Global Transaction Banking

Deutsche Asset & Wealth Management

Private & Business Clients

Non-Core Operations Unit

Total Management Reporting

Consoli-
dation & Adjustments

Total Consolidated

N/M – Not meaningful

3

Includes a net positive impact of € 236 million related to the stake in Hua Xia Bank (PBC).

4

Includes revenues in Abbey Life related to Policyholder benefits and claims of € 178 million offset in expenses.

5

Starting 2012, segment assets represent consolidated view, i.e.,the amounts do not include intersegment balances. Prior periods were adjusted accordingly.

6

The post-tax return on average active equity at the Group level reflects the reported effective tax rate for the Group, which was 20 % for the year ended December 31, 2011. For the post-tax return on average active equity of the segments, the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so that the segment tax rates were 30 % for the year ended December 31, 2011.

Net revenues1

13,899

3,816

4,2784

10,397

877

33,267

(39)

33,228

Provision for credit losses

50

198

16

1,185

391

1,840

(1)

1,839

Total noninterest expenses

10,144

2,588

3,321

7,132

2,561

25,747

252

25,999

thereof:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

35

6

24

129

272

466

442

908

Severance payments

79

14

29

218

60

401

102

503

Policyholder benefits and claims

0

0

207

0

0

207

0

207

Restructuring activities

0

0

0

0

0

0

0

0

Impairment of intangible assets

0

0

0

0

0

0

0

0

Noncontrolling interests

22

0

0

178

14

213

(213)

0

Income (loss) before income taxes

3,684

1,029

941

1,9023

(2,089)

5,467

(77)

5,390

Cost/income ratio

73 %

68 %

78 %

69 %

N/M

77 %

N/M

78 %

Assets2,5

1,580,190

97,423

68,848

269,986

134,812

2,151,260

12,843

2,164,103

Expenditures for additions to long-lived assets

43

7

37

181

98

366

487

853

Risk-weighted assets

147,161

35,127

14,625

78,637

103,812

379,361

1,884

381,246

Average active equity

13,604

3,811

5,656

12,081

11,447

46,599

3,850

50,449

Pre-tax return on average active equity

27 %

27 %

17 %

16 %

(18) %

12 %

(2) %

10 %

Post-tax return on average active equity6

19 %

19 %

12 %

11 %

(13) %

8 %

N/M

8 %

1 Includes:

 

 

 

 

 

 

 

 

Net interest income

5,787

1,906

805

6,594

2,152

17,244

201

17,445

Net income (loss) from equity method investments

23

2

41

140

(472)

(266)

2

(264)

2 Includes:

 

 

 

 

 

 

 

 

Equity method investments

731

43

154

2,043

751

3,722

38

3,759