Management Report

Operating and Financial Review

The following discussion and analysis should be read in conjunction with the consolidated financial statements and the related notes to them. Our Operating and Financial Review includes qualitative and quantitative disclosures on Segmental Results of Operations and Entity Wide disclosures on Net Revenue Components as required by International Financial Reporting Standard (IFRS) 8, “Operating Segments”. This information, which forms part of and is incorporated by reference into the financial statements of this report, is marked by a bracket in the margins throughout this Operating and Financial Review. For additional Business Segment disclosure under IFRS 8 please refer to Note 4 “Business Segments and Related Information” of the Consolidated Financial Statements.

The Group at a glance

 

 

 

2014

2013

1

To reflect the capital increase 2014, the historical share prices until and including June 5, 2014 (last trading day cum rights) have been adjusted with retroactive effect by multiplication with the correcting factor of 0.9538 (R-Factor).

2

All periods have been adjusted in order to reflect the effect of the bonus component of subscription rights issued in June 2014 in connection with the capital increase.

3

Total noninterest expenses as a percentage of total net interest income before provision for credit losses plus noninterest income.

4

Compensation and benefits as a percentage of total net interest income before provision for credit losses plus noninterest income.

5

Noncompensation noninterest expenses, which are defined as total noninterest expenses less compensation and benefits, as a percentage of total net interest income before provision for credit losses plus noninterest income.

6

Figures presented for 2014 are based on the transitional rules (“CRR/CRD 4”) and the full application (“CRR/CRD 4 fully loaded”) of the CRR/CRD 4 framework. Figures presented for 2013 are based on “Basel 2.5”. The capital ratios relate the respective capital to risk-weighted assets. Until 2013 transitional items pursuant to the former Section 64h (3) of the German Banking Act are excluded.

 

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

The calculation of the regulatory capital numbers and ratios presented in this report include the proposal of the Management Board to the Supervisory Board and Annual General Meeting of a dividend payment of € 0.75 per share.

Share price at period end1

€ 24.99

€ 33.07

Share price high1

€ 38.15

€ 36.94

Share price low1

€ 22.66

€ 28.05

Basic earnings per share2

€ 1.34

€ 0.64

Diluted earnings per share2

€ 1.31

€ 0.62

Average shares outstanding, in m., basic2

1,242

1,045

Average shares outstanding, in m., diluted2

1,269

1,073

Pre-tax return on average shareholders’ equity

5.0 %

2.6 %

Pre-tax return on average active equity

5.1 %

2.6 %

Post-tax return on average shareholders’ equity

2.7 %

1.2 %

Post-tax return on average active equity

2.7 %

1.2 %

Cost/income ratio3

86.7 %

89.0 %

Compensation ratio4

39.2 %

38.6 %

Noncompensation ratio5

47.5 %

50.3 %

in € m.

 

 

Total net revenues

31,949

31,915

Provision for credit losses

1,134

2,065

Total noninterest expenses

27,699

28,394

Income before income taxes

3,116

1,456

Net income

1,691

681

 

Dec 31, 2014 in € bn.

Dec 31, 2013 in € bn.

Total assets

1,709

1,611

Total Shareholders’ equity

68.4

54.7

Book value per basic share outstanding

€ 49.32

€ 50.802

Tangible book value per basic share outstanding

€ 38.53

€ 37.872

Common Equity Tier 1 capital ratio (CRR/CRD 4)6

15.2 %

12.8 %

Common Equity Tier 1 capital ratio (CRR/CRD 4 fully loaded)6

11.7 %

12.8 %

Tier 1 capital ratio (CRR/CRD 4)6

16.1 %

16.9 %

Tier 1 capital ratio (CRR/CRD 4 fully loaded)6

12.9 %

16.9 %

Number

 

 

Branches

2,814

2,907

thereof in Germany

1,845

1,924

Employees (full-time equivalent)

98,138

98,254

thereof in Germany

45,392

46,377

Long-term rating

 

 

Moody’s Investors Service

A3

A2

Standard & Poor’s

A

A

Fitch Ratings

A+

A+


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