5 – Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss

Net Interest Income

in € m.

2013

2012

2011

1

Prior periods have been restated. For further detail please refer to Note 1 “Significant Accounting Policies and Critical Accounting Estimates” of this report.

2

For 2012 and 2011, interest expense of € 780 million and € 821 million, respectively, was reclassified from interest-bearing deposits to long-term debt.

Interest and similar income:

 

 

 

Interest-earning deposits with banks

759

928

794

Central bank funds sold and securities purchased under resale agreements

412

762

977

Securities borrowed1

(375)

(519)

(358)

Interest income on financial assets available for sale

1,312

1,449

935

Dividend income on financial assets available for sale

81

141

148

Loans

11,941

13,658

14,914

Other

741

986

1,579

Total Interest and similar income not at fair value through profit or loss

14,872

17,404

18,990

Financial assets at fair value through profit or loss

10,729

14,189

15,376

Total interest and similar income1

25,601

31,593

34,366

Interest expense:

 

 

 

Interest-bearing deposits2

3,360

4,946

5,958

Central bank funds purchased and securities sold under repurchase agreements

186

315

426

Securities loaned1

(216)

(301)

(169)

Other short-term borrowings

285

342

479

Long-term debt2

1,568

2,686

2,656

Trust preferred securities

849

842

813

Other

200

140

243

Total Interest expense not at fair value through profit or loss

6,232

8,971

10,406

Financial liabilities at fair value through profit or loss

4,535

6,648

6,515

Total interest expense1

10,768

15,619

16,921

Net interest income

14,834

15,975

17,445

Interest income recorded on impaired financial assets was € 76 million, € 100 million and € 83 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss

in € m.

2013

2012

2011

1

Prior periods have been restated. For further detail please refer to Note 1 “Significant Accounting Policies and Critical Accounting Estimates” of this report.

2

Includes € (86) million, € (94) million and € (68) million from securitization structures for the years ended December 31, 2013, 2012 and 2011, respectively. Prior period comparatives were restated. Fair value movements on related instruments of € 390 million, € 358 million and € (60) million for December 31, 2013, 2012 and 2011, respectively, are reported within trading income. Prior period comparatives were restated. Both are reported under Sales & Trading (debt and other products). The total of these gains and losses represents the Group’s share of the losses in these consolidated securitization structures.

Trading income:

 

 

 

Sales & Trading (equity)

1,573

1,594

(1,404)

Sales & Trading (debt and other products)

2,465

4,810

4,389

Total Sales & Trading

4,039

6,404

2,985

Other trading income

(377)

(1,205)

(847)

Total trading income1

3,662

5,199

2,138

Net gains (losses) on financial assets/liabilities designated at fair value through profit or loss:

 

 

 

Breakdown by financial asset/liability category:

 

 

 

Securities purchased/sold under resale/repurchase agreements

31

14

(20)

Securities borrowed/loaned

0

(1)

0

Loans and loan commitments

(46)

739

(894)

Deposits

73

(56)

(368)

Long-term debt2

133

(328)

1,772

Other financial assets/liabilities designated at fair value through profit or loss

(35)

41

96

Total net gains (losses) on financial assets/liabilities designated at fair value through profit or loss

155

409

586

Total net gains (losses) on financial assets/liabilities at fair value through profit or loss

3,817

5,608

2,724

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

in € m.

2013

2012

2011

1

Includes the net interest spread on loans as well as the fair value changes of credit default swaps and loans designated at fair value through profit or loss.

2

Includes net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss of origination, advisory and other products.

Net interest income

14,834

15,975

17,445

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

3,817

5,608

2,724

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

18,651

21,583

20,169

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

 

 

 

Sales & Trading (equity)

2,129

1,732

1,504

Sales & Trading (debt and other products)

6,230

8,226

8,121

Total Sales & Trading

8,359

9,958

9,625

Loan products1

599

182

185

Remaining products2

72

589

199

Corporate Banking & Securities

9,030

10,729

10,010

Global Transaction Banking

1,984

2,016

1,996

Deutsche Asset & Wealth Management

1,568

1,974

991

Private & Business Clients

5,966

6,220

6,625

Non-Core Operations Unit

83

275

588

Consolidation & Adjustments

19

369

(42)

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

18,651

21,583

20,169

The Group’s trading and risk management businesses include significant activities in interest rate instruments and related derivatives. Under IFRS, interest and similar income earned from trading instruments and financial instruments designated at fair value through profit or loss (i.e., coupon and dividend income), and the costs of funding net trading positions, are part of net interest income. The Group’s trading activities can periodically drive income to either net interest income or to net gains (losses) of financial assets/liabilities at fair value through profit or loss depending on a variety of factors, including risk management strategies. In order to provide a more business-focused presentation, the Group combines net interest income and net gains (losses) of financial assets/liabilities at fair value through profit or loss by business division and by product within CB&S.