Segment Results of Operations

The following is a discussion of the results of our business segments. See Note 4 “Business Segments and Related Information” to the consolidated financial statements for information regarding:

  • changes in the format of our segment disclosure;
  • the framework of our management reporting systems and
  • definitions of non-GAAP financial measures that are used with respect to each segment.

The criterion for segmentation into divisions is our organizational structure as it existed at December 31, 2014. Segment results were prepared in accordance with our management reporting systems.

2014

in € m.
(unless stated otherwise)

Corporate Banking & Securities

Private & Business Clients

Global Transaction Banking

Deutsche Asset & Wealth Management

Non-Core Operations Unit

Total Management Reporting

Consoli­dation & Adjustments

Total Consoli­dated

N/M – Not meaningful

3

Risk weighted assets and capital ratios are based upon CRR/CRD 4 fully-loaded since January 1, 2014.

4

The post-tax return on average active equity at the Group level reflects the reported effective tax rate for the Group, which was 46 % for the year ended December 31, 2014. For the post-tax return on average active equity of the segments, the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so that the segment tax rates were 34 % for the year ended December 31, 2014.

Net revenues1

13,742

9,639

4,146

4,708

211

32,446

(497)

31,949

Provision for credit losses

103

622

156

(7)

259

1,133

1

1,134

Total noninterest expenses

10,348

7,682

2,791

3,685

2,804

27,310

389

27,699

thereof:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

2

0

0

0

0

2

117

120

Severance payments

46

134

11

10

5

207

36

242

Policyholder benefits and claims

0

0

0

289

0

289

0

289

Restructuring activities

112

9

10

(3)

4

133

0

133

Impairment of intangible assets

0

0

0

(83)

194

111

0

111

Noncontrolling interests

25

1

0

4

(2)

28

(28)

0

Income (loss) before income taxes

3,266

1,335

1,198

1,027

(2,851)

3,975

(859)

3,116

Cost/income ratio

75 %

80 %

67 %

78 %

N/M

84 %

N/M

87 %

Assets2

1,213,612

258,381

106,252

81,132

38,853

1,698,230

10,474

1,708,703

Expenditures for additions to long-lived assets

0

108

0

1

0

109

517

626

Risk-weighted assets3

175,561

79,571

43,265

16,597

58,538

373,532

20,437

393,969

Average active equity

24,204

14,420

5,860

6,454

7,649

58,588

2,037

60,624

Pre-tax return on average active equity

13 %

9 %

20 %

16 %

(37) %

7 %

N/M

5 %

Post-tax return on average active equity4

9 %

6 %

14 %

11 %

(25) %

N/M

N/M

3 %

1 Includes:

 

 

 

 

 

 

 

 

Net interest income

5,451

5,887

1,875

1,052

90

14,355

(83)

14,272

Net income (loss) from equity method investments

128

431

3

22

34

617

2

619

2 Includes:

 

 

 

 

 

 

 

 

Equity method investments

521

3,154

50

163

170

4,058

85

4,143

2013

in € m.
(unless stated otherwise)

Corporate Banking & Securities

Private & Business Clients

Global Transaction Banking

Deutsche Asset & Wealth Management

Non-Core Operations Unit

Total Management Reporting

Consoli­dation & Adjustments

Total Consoli­dated

N/M – Not meaningful

3

Effective July 1, 2013, the definition of active equity has been aligned to the CRR/CRD 4 framework. Under the revised definition, shareholders’ equity is adjusted only for dividend accruals; the figures for 2013 were adjusted to reflect this effect.

4

The post-tax return on average active equity at the Group level reflects the reported effective tax rate for the Group, which was 53 % for the year ended December 31, 2013. For the post-tax return on average active equity of the segments, the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so that the segment tax rates were 42 % for the year ended December 31, 2013.

Net revenues1

13,526

9,550

4,069

4,735

964

32,844

(929)

31,915

Provision for credit losses

189

719

315

23

818

2,064

0

2,065

Total noninterest expenses

10,162

7,276

2,648

3,929

3,550

27,564

830

28,394

thereof:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

2

0

0

0

2

5

18

23

Severance payments

26

224

8

5

14

278

25

303

Policyholder benefits and claims

0

0

0

460

0

460

0

460

Restructuring activities

130

22

54

170

25

399

0

399

Impairment of intangible assets

0

7

57

14

0

79

0

79

Noncontrolling interests

16

0

0

1

(3)

15

(15)

0

Income (loss) before income taxes

3,158

1,555

1,107

782

(3,402)

3,200

(1,744)

1,456

Cost/income ratio

75 %

76 %

65 %

83 %

N/M

84 %

N/M

89 %

Assets2

1,102,007

265,360

97,240

72,613

63,810

1,601,029

10,371

1,611,400

Expenditures for additions to long-lived assets

12

176

9

7

0

203

539

742

Risk-weighted assets (Basel 2.5)

114,729

73,001

36,811

12,553

52,443

289,537

10,832

300,369

Average active equity3

20,161

13,976

5,136

5,864

10,296

55,434

0

55,434

Pre-tax return on average active equity

16 %

11 %

22 %

13 %

(33) %

6 %

N/M

3 %

Post-tax return on average active equity4

9 %

6 %

13 %

8 %

(19) %

N/M

N/M

1 %

1 Includes:

 

 

 

 

 

 

 

 

Net interest income

5,409

5,963

1,930

988

618

14,909

(76)

14,834

Net income (loss) from equity method investments

78

375

3

18

(106)

368

1

369

2 Includes:

 

 

 

 

 

 

 

 

Equity method investments

628

2,563

48

143

171

3,554

28

3,581

2012

in € m.
(unless stated otherwise)

Corporate Banking & Securities

Private & Business Clients

Global Transaction Banking

Deutsche Asset & Wealth Management

Non-Core Operations Unit

Total Management Reporting

Consoli­dation & Adjustments

Total Consoli­dated

N/M – Not meaningful

3

Effective July 1, 2013, the definition of active equity has been aligned to the CRR/CRD 4 framework. Under the revised definition, shareholders’ equity is adjusted only for dividend accruals; the figures for 2012 were adjusted to reflect this effect.

4

The post-tax return on average active equity at the Group level reflects the reported effective tax rate for the Group, which was 61 % for the year ended December 31, 2012. For the post-tax return on average active equity of the segments, the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so that the segment tax rates were 35 % for the year ended December 31, 2012.

Net revenues1

15,073

9,540

4,200

4,472

1,427

34,711

(975)

33,736

Provision for credit losses

81

781

208

18

634

1,721

0

1,721

Total noninterest expenses

12,071

7,224

3,327

4,299

3,697

30,618

582

31,201

thereof:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

5

0

0

0

2

8

17

25

Severance payments

164

249

24

42

4

484

59

543

Policyholder benefits and claims

0

0

0

414

0

414

0

414

Restructuring activities

236

0

40

104

12

392

0

394

Impairment of intangible assets

1,174

15

73

202

421

1,886

0

1,886

Noncontrolling interests

17

16

0

1

31

65

(65)

0

Income (loss) before income taxes

2,904

1,519

664

154

(2,935)

2,307

(1,493)

814

Cost/income ratio

80 %

76 %

79 %

96 %

N/M

88 %

N/M

92 %

Assets2

1,448,924

282,428

87,997

78,103

113,247

2,010,699

11,576

2,022,275

Expenditures for additions to long-lived assets

15

140

1

1

0

157

477

634

Risk-weighted assets (Basel 2.5)

112,630

72,695

34,976

12,429

84,743

317,472

16,133

333,605

Average active equity3

20,213

12,177

4,181

5,916

12,440

54,927

0

54,927

Pre-tax return on average active equity

14 %

12 %

16 %

3 %

(24) %

4 %

N/M

1 %

Post-tax return on average active equity4

9 %

8 %

10 %

2 %

(15) %

N/M

N/M

0 %

1 Includes:

 

 

 

 

 

 

 

 

Net interest income

5,244

6,115

1,964

1,033

1,496

15,851

123

15,975

Net income (loss) from equity method investments

131

312

5

6

(295)

159

4

163

2 Includes:

 

 

 

 

 

 

 

 

Equity method investments

750

2,303

46

131

307

3,538

39

3,577