20 – Allowance for Credit Losses

The allowance for credit losses consists of an allowance for loan losses and an allowance for off-balance sheet positions.

Breakdown of the movements in the Group’s allowance for loan losses

 

2013

20121

2011

in € m.

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

1

Allowance, beginning of year 2012 differs from Allowance, end of year 2011 due to changes in consolidation rules according to IFRS10.

Allowance, beginning of year

2,266

2,426

4,692

2,011

2,147

4,158

1,643

1,653

3,296

Provision for loan losses

1,377

683

2,060

1,115

613

1,728

907

925

1,832

Net charge-offs:

(701)

(352)

(1,053)

(762)

(324)

(1,086)

(512)

(385)

(897)

Charge-offs

(730)

(485)

(1,215)

(798)

(483)

(1,281)

(553)

(512)

(1,065)

Recoveries

30

132

162

36

158

195

41

127

168

Changes in the group of consolidated companies

0

0

0

0

0

0

0

0

0

Exchange rate changes/other

(85)

(25)

(110)

(98)

(9)

(107)

(26)

(43)

(69)

Allowance, end of year

2,857

2,732

5,589

2,266

2,426

4,692

2,011

2,150

4,162

Activity in the Group’s allowance for off-balance sheet positions (contingent liabilities and lending commitments)

 

2013

2012

2011

in € m.

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Allowance, beginning of year

118

97

215

127

98

225

108

110

218

Provision for off-balance sheet positions

(15)

21

5

(7)

0

(7)

19

(12)

7

Usage

0

0

0

0

0

0

0

0

0

Changes in the group of consolidated companies

0

0

0

0

0

0

0

0

0

Exchange rate changes/other

0

(3)

(4)

(2)

(1)

(3)

0

0

0

Allowance, end of year

102

114

216

118

97

215

127

98

225