38 – Related Party Transactions

Parties are considered to be related if one party has the ability to directly or indirectly control the other party or exercise significant influence over the other party in making financial or operational decisions. The Group’s related parties include:

  • key management personnel, close family members of key management personnel and entities which are controlled, significantly influenced by, or for which significant voting power is held by key management personnel or their close family members,
  • subsidiaries, joint ventures and associates and their respective subsidiaries, and
  • post-employment benefit plans for the benefit of Deutsche Bank employees.

The Group has several business relationships with related parties. Transactions with such parties are made in the ordinary course of business and on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other parties. These transactions also did not involve more than the normal risk of collectibility or present other unfavorable features.

Transactions with Key Management Personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of Deutsche Bank, directly or indirectly. The Group considers the members of the Management Board and of the Supervisory Board of the parent company to constitute key management personnel for purposes of IAS 24.

Compensation expense of key management personnel

in € m.

2013

2012

2011

Short-term employee benefits

18

17

14

Post-employment benefits

3

3

3

Other long-term benefits

6

14

6

Termination benefits

0

15

0

Share-based payment

8

16

5

Total

35

65

28

The above mentioned table does not contain compensation that employee representatives and former board members on the Supervisory Board have received. The aggregated compensation paid to such members for their services as employees of Deutsche Bank or status as former employees (retirement, pension and deferred compensation) amounted up to € 1 million as of December 31, 2013, € 1.6 million as of December 31, 2012 and € 2 million as of December 31, 2011.

Among the Group’s transactions with key management personnel as of December 31, 2013 were loans and commitments of € 4 million and deposits of € 12 million. As of December 31, 2012, the Group’s transactions with key management personnel were loans and commitment of € 7 million and deposits of € 13 million.

In addition, the Group provides banking services, such as payment and account services as well as investment advice, to key management personnel and their close family members.

Transactions with Subsidiaries, Joint Ventures and Associates

Transactions between Deutsche Bank AG and its subsidiaries meet the definition of related party transactions. If these transactions are eliminated on consolidation, they are not disclosed as related party transactions. Transactions between the Group and its associated companies and joint ventures and their respective subsidiaries also qualify as related party transactions.

Loans

in € m.

2013

2012

1

The increase in repayments during 2012 is mainly related to the sale of a restructured loan transaction in Europe.

2

In the second quarter of 2013, some entities were fully consolidated for the first time, which were formerly classified as equity method investments. Therefore loans made to these investments were eliminated on consolidation. Consequently related provisions and allowances for loan losses reduced at the same time.

3

Loans past due were € 2 million as of December 31, 2013 and € 3 million as of December 31, 2012. For the above loans the Group held collateral of € 73 million and € 570 million as of December 31, 2013 and December 31, 2012, respectively.

Loans outstanding, beginning of year

918

5,151

Loans issued during the year

528

436

Loan repayment during the year

676

4,6101

Changes in the group of consolidated companies

(397)2

0

Exchange rate changes/other

(16)

(58)

Loans outstanding, end of year3

357

918

Other credit risk related transactions:

 

 

Allowance for loan losses

6

47

Provision for loan losses

0

47

Guarantees and commitments

54

55

Deposits

in € m.

2013

2012

1

The deposits are unsecured.

Deposits outstanding, beginning of year

245

247

Deposits received during the year

105

284

Deposits repaid during the year

179

284

Changes in the group of consolidated companies

(3)

(3)

Exchange rate changes/other

(2)

1

Deposits outstanding, end of year1

167

245

Other Transactions

Trading assets and positive market values from derivative financial transactions with associated companies amounted to € 130 million as of December 31, 2013 and € 110 million as of December 31, 2012. Trading liabilities and negative market values from derivative financial transactions with associated companies amounted to € 1 million as of December 31, 2013 and € 4 million as of December 31, 2012.

Other transactions with related parties also reflected the following:

Xchanging etb GmbH: On September 2, 2013, Deutsche Bank AG announced that it completed the purchase of the remaining 51 % of the shares in its joint venture Xchanging etb GmbH (“Xetb”), which is the holding company of Xchanging Transaction Bank GmbH (“XTB”). Prior to the acquisition, Deutsche Bank and XTB were parties in a joint service contract arrangement for the provision of securities processing services to Deutsche Bank.

Starting with the change of control, all transactions are eliminated on consolidation and are therefore not disclosed as a related party transaction.

For further details on the acquisition, please refer to Note 3 “Acquisitions and Dispositions”.

Hua Xia Bank: The Group holds a stake of 19.99 % in Hua Xia Bank and has accounted for this associate under the equity method since February 11, 2011. In 2006, Deutsche Bank and Hua Xia Bank jointly established a credit card business cooperation combining the international know-how of Deutsche Bank AG in the credit card business and local expertise of Hua Xia Bank. A provision has been recognized for the cooperation with an amount of € 48 million as per December 31, 2013. This provision captures the Group’s estimated obligation from the cooperation. Further details are included in Note 17 “Equity Method Investments”.

Transactions with Pension Plans

Under IFRS, certain post-employment benefit plans are considered related parties. The Group has business relationships with a number of its pension plans pursuant to which it provides financial services to these plans, including investment management services. The Group’s pension funds may hold or trade Deutsche Bank shares or securities.

Transactions with related party pension plans

in € m.

2013

2012

Equity shares issued by the Group held in plan assets

2

7

Other assets

29

0

Fees paid from plan assets to asset managers of the Group

39

38

Market value of derivatives with a counterparty of the Group

(419)

(242)

Notional amount of derivatives with a counterparty of the Group

13,851

14,251