20 – Allowance for Credit Losses

The allowance for credit losses consists of an allowance for loan losses and an allowance for off-balance sheet positions.

Breakdown of the movements in the Group’s allowance for loan losses

 

2014

2013

2012

in € m.

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Allowance, beginning of year

2,857

2,732

5,589

2,266

2,426

4,692

2,011

2,147

4,158

Provision for loan losses

499

631

1,129

1,377

683

2,060

1,115

613

1,728

Net charge-offs:

(997)

(512)

(1,509)

(701)

(352)

(1,053)

(762)

(324)

(1,086)

Charge-offs

(1,037)

(613)

(1,650)

(730)

(485)

(1,215)

(798)

(483)

(1,281)

Recoveries

40

101

141

30

132

162

36

158

195

Other Changes

5

(2)

3

(85)

(25)

(110)

(98)

(9)

(108)

Allowance, end of year

2,364

2,849

5,212

2,857

2,732

5,589

2,266

2,426

4,692

Activity in the Group’s allowance for off-balance sheet positions (contingent liabilities and lending commitments)

 

2014

2013

2012

in € m.

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Individually assessed

Collectively assessed

Total

Allowance, beginning of year

102

114

216

118

97

215

127

98

225

Provision for off-balance sheet positions

(13)

18

4

(15)

21

5

(7)

0

(7)

Usage

0

0

0

0

0

0

0

0

0

Other changes

(4)

10

6

0

(3)

(4)

(2)

(1)

(3)

Allowance, end of year

85

141

226

102

114

216

118

97

215