Noninterest Expenses

in € m.

 

 

 

2014 increase (decrease)
from 2013

2013 increase (decrease)
from 2012

(unless stated otherwise)

2014

2013

2012

in € m.

in %

in € m.

in %

2

Includes litigation related expenses of € 1.6 billion in 2014, € 3.0 billion in 2013 and of € 2.6 billion in 2012.

Compensation and benefits

12,512

12,329

13,490

183

1

(1,160)

(9)

General and administrative expenses1

14,654

15,126

15,017

(472)

(3)

110

1

Policyholder benefits and claims

289

460

414

(172)

(37)

46

11

Impairment of intangible assets

111

79

1,886

33

42

(1,808)

(96)

Restructuring activities

133

399

394

(267)

(67)

5

1

Total noninterest expenses

27,699

28,394

31,201

(695)

(2)

(2,807)

(9)

1 includes:

 

 

 

 

 

 

 

 

2014

2013

2012

in € m.

in %

in € m.

in %

IT costs

3,333

3,074

2,547

259

8

527

21

Occupancy, furniture and equipment expenses

1,978

2,073

2,115

(95)

(5)

(42)

(2)

Professional service fees2

2,029

1,772

1,887

256

14

(115)

(6)

Communication and data services2

725

706

756

18

3

(50)

(7)

Travel and representation expenses2

500

496

579

4

1

(84)

(14)

Banking and transaction charges2

660

743

1,274

(83)

(11)

(532)

(42)

Marketing expenses

313

314

362

0

0

(48)

(13)

Consolidated investments

811

797

760

14

2

37

5

Other expenses2,3

4,305

5,151

4,736

(846)

(16)

415

9

Total general and administrative expenses

14,654

15,126

15,017

(472)

(3)

110

1

Compensation and benefits

2014

Compensation and benefits increased by € 183 million, or 1 %, to € 12.5 billion in 2014 compared to € 12.3 billion in 2013. This primarily reflects higher fixed compensation costs to comply with regulatory requirements, driven significantly by CB&S, as well as strategic hires in our business and control functions. This increase was partly offset by positive effects from the ongoing implementation of OpEx across our Core businesses.

2013

Compensation and benefits decreased by € 1.2 billion, or 9 %, to € 12.3 billion in 2013 compared to € 13.5 billion in 2012. The reduction reflected a reduced deferred award amortization due to lower deferred grants awarded and positive effects from the ongoing implementation of OpEx.

General and administrative expenses

2014

General and administrative expenses decreased by € 472 million, or 3 %, to 14.7 billion in 2014 compared to € 15.1 billion in 2013. The decrease was primarily driven by lower litigation costs of € 1.6 billion compared to € 3.0 billion in 2013 as well as savings from the OpEx program. The decrease was partly offset by higher expenses from regulatory requirements, investments in our Core businesses and charges in relation to loan processing fees in PBC.

2013

General and administrative expenses increased by € 110 million, or 1 %, from € 15.0 billion in 2012 to € 15.1 billion in 2013. The increase was primarily driven by higher litigation expenses as well as higher IT costs resulting from cost-to-achieve and project ramp-up costs in 2013. Partly offsetting was the non-recurrence of turnaround measures taken in the Netherlands in 2012. In addition, professional service fees, communication, travel and representation expenses as well as marketing expenses decreased.

Policyholder benefits and claims

2014

Policyholder benefits and claims decreased by € 172 million from € 460 million in 2013 to € 289 million in 2014 and were solely driven by insurance-related charges regarding the Abbey Life business. These charges are offset by net gains on financial assets/liabilities at fair value through profit or loss on policyholder benefits and claims.

2013

Policyholder benefits and claims increased by € 46 million from € 414 million in 2012 to € 460 million in 2013 and were solely driven by insurance-related charges regarding the Abbey Life business. These charges are offset by net gains on financial assets/liabilities at fair value through profit or loss on policyholder benefits and claims.

Impairment of intangible assets

2014

In 2014, the impairment charges on goodwill and intangibles of € 111 million were mainly attributable to a € 194 million impairment to our Maher Terminal investment, with a partial offset from a write-up on Scudder of € 84 million.

2013

In 2013 the impairment charges on goodwill and intangibles of € 79 million were mainly attributable to the commercial banking activities in the Netherlands. As in 2012, these charges were incurred in respect of the further execution of the turn-around measures as part of the Strategy 2015+.

Restructuring

2014

Restructuring expenses from our OpEx program decreased by € 267 million, or 67 %, to € 133 million in 2014 compared to € 399 million in 2013.

2013

In 2013, restructuring expenses of € 399 million resulted from our OpEx program and were virtually unchanged to the prior year.