Internal Capital Adequacy


As the primary measure of our Internal Capital Adequacy Assessment Process (ICAAP) we assess our internal capital adequacy based on our “gone concern approach” as the ratio of our total capital supply divided by our total capital demand as shown in the table below. In the first quarter 2013 our capital supply definition was aligned with Basel 3 capital framework by discontinuing the adjustment for unrealized gains/losses on cash flow hedges and inclusion of the debt valuation adjustments. The prior year information has been changed accordingly.

Internal Capital Adequacy

in € m.
(unless stated otherwise)

Mar 31, 2013

Dec 31, 2012

1

Includes deduction of fair value gains on own credit-effect relating to own liabilities designated under the fair value option as well as the debt valuation adjustments.

2

Includes fair value adjustments for assets reclassified in accordance with IAS 39 and for banking book assets where no matched funding is available.

3

Includes noncontrolling interest up to the economic capital requirement for each subsidiary.

4

Tier 2 capital instruments excluding items to be partly deducted from Tier 2 capital pursuant to Section 10 (6) and (6a) KWG, unrealized gains on listed securities (45% eligible) and certain haircut-amounts that only apply under regulatory capital assessment.

Capital Supply

 

 

Shareholders’ Equity

55,820

54,001

Fair Value gains on own debt and debt valuation adjustments, subject to own credit risk1

(684)

(569)

Deferred Tax Assets

(7,585)

(7,712)

Fair Value adjustments for financial assets reclassified to loans2

(1,052)

(1,992)

Noncontrolling Interests3

Hybrid Tier 1 capital instruments

12,618

12,526

Tier 2 capital instruments4

10,090

11,646

Capital Supply

69,207

67,900

 

 

 

Capital Demand

 

 

Economic Capital Requirement

27,454

28,741

Intangible Assets

14,342

14,219

Capital Demand

41,796

42,960

 

 

 

Internal Capital Adequacy Ratio

166 %

158 %

A ratio of more than 100 % signifies that the total capital supply is sufficient to cover the capital demand determined by the risk positions. This ratio was 166 % as of March 31, 2013, compared to 158 % as of December 31, 2012. The increase in capital supply driven by higher shareholders’ equity and the decrease in the observed capital demand due to lower economic capital requirement described above determined the development in favor of the ratio. The shareholders’ equity increase by € 1.8 billion mainly reflected the net income of the first quarter 2013.