Equity Investments Held (unaudited)

The following section on Equity Investments Held presents specific disclosures in relation to Pillar 3. Per regulation it is not required to audit Pillar 3 disclosures. As such this section is labeled unaudited.

The tables below present IFRS classifications and the gains (losses) for equity investments held. These equity investments principally constitute equity positions in the regulatory banking book or capital deductions according to CRR. However, the following aspects need to be considered when comparing the equity investments held – presented below – with the equity position in the regulatory banking book:

  • Equity investments held by entities, which are consolidated for IFRS purposes but not consolidated for regulatory purposes, are included in the tables.
  • Collective investment undertakings, which are shown as IFRS, are treated differently for regulatory purposes and are not included in the tables.
  • Entities holding equity investments which are considered for regulatory purposes but not consolidated according to IFRS, do not provide IFRS balance sheet and profit or loss information, and are excluded from these tables. The regulatory exposure value (“EAD”) of these excluded equity investments amounted to € 13 million as of December 31, 2014, and € 176 million as of December 31, 2013.
  • Other positions like equity underlyings resulting from derivative transactions or certain subordinated bonds which from a regulatory point of view are also assigned to the exposure class “Equity in the banking book” are excluded from the tables. Their EAD amounted to € 304 million as of December 31, 2014, and € 167 million as of December 31, 2013.
  • The regulatory equity position includes € 1.9 billion EAD as of December 31, 2014, and € 3.3 billion EAD as of December 31, 2013, in respect of equity investments which are Group-internal from an IFRS perspective.
  • “Non-exchange-traded positions” combine private equity exposures in sufficiently diversified portfolios and other exposures according to Article 447 (c) CRR.

Equity Investments According to IFRS Classification

 

Carrying value

in € m.

Dec 31, 2014

Dec 31, 2013

1

Comparatives have been restated by € 2.6 billion to show participating interest as exchange-traded positions if applicable.

Financial assets available for sale – equity instruments

1,928

1,226

Exchange-traded positions

291

327

Non-exchange-traded positions

1,637

899

Equity method investments

4,134

3,574

Exchange-traded positions

3,181

2,6161

Non-exchange-traded positions

953

9581

Financial assets designated at fair value through profit or loss – equity instruments

2

119

Exchange-traded positions

0

0

Non-exchange-traded positions

2

119

Total equity investments

6,064

4,919

Type and nature of these equity investments predominantly relate to investments as described in the “Investment Risk” section of this report.

A slight difference between the carrying value of the investment positions and their fair value was only observable for the exchange-traded equity method investments, which had a carrying value of € 3.2 billion and a fair value of € 3.2 billion as of December 31, 2014 compared with € 2.6 billion and a fair value of € 1.9 billion as of December 31, 2013.

Realized Gains (Losses) in the Reporting Period and Unrealized Gains (Losses) at Year-end from Equity Investments

in € m.

2014

2013

Gains and losses on disposal

202

97

Impairments

(54)

(110)

Pro-rata share of net income (loss)

569

433

Total realized gains (losses) from equity investments

716

420

 

 

 

 

Dec 31, 2014

Dec 31, 2013

Unrealized revaluation gains (losses)

658

424

Difference between carrying value and fair value

46

(682)

Total unrealized gains (losses) from equity investments

704

(258)

For AFS equity investments, the components considered are realized gains and losses from sales and liquidations as well as unrealized revaluation gains and losses and impairments. For equity method investments, the gain and loss elements consist of realized gains and losses from sales and liquidations, pro-rata share of net income (loss), impairments and unrealized revaluation gains (losses) in form of the differences between carrying amounts and fair values. In this respect, the realized gains (losses) on disposals, the impairments and the pro-rata share of net income (loss) are referring to the reporting period 2014 and 2013 whereas the unrealized revaluation gains (losses) as well as the difference between the carrying values and the fair values for the at equity investments represent the amounts as of December 31, 2014, and December 31, 2013.