05 – Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss

Net Interest Income

in € m.

2014

2013

2012

1

Prior periods have been restated. For further details please refer to Note 1 “Significant Accounting Policies and Critical Accounting Estimates” of this report.

2

For 2012, interest expense of € 780 million was reclassified from interest-bearing deposits to long-term debt.

Interest and similar income:

 

 

 

Interest-earning deposits with banks

683

759

928

Central bank funds sold and securities purchased under resale agreements

408

412

762

Securities borrowed1

(313)

(375)

(519)

Interest income on financial assets available for sale

1,341

1,312

1,449

Dividend income on financial assets available for sale

97

81

141

Loans

11,820

11,941

13,658

Other

1,161

741

986

Total Interest and similar income not at fair value through profit or loss

15,196

14,872

17,404

Financial assets at fair value through profit or loss

9,805

10,729

14,189

Total interest and similar income1

25,001

25,601

31,593

Interest expense:

 

 

 

Interest-bearing deposits2

3,210

3,360

4,946

Central bank funds purchased and securities sold under repurchase agreements

160

186

315

Securities loaned1

(157)

(216)

(301)

Other short-term borrowings

214

285

342

Long-term debt2

1,882

1,568

2,686

Trust preferred securities

785

849

842

Other

371

200

140

Total Interest expense not at fair value through profit or loss

6,465

6,232

8,971

Financial liabilities at fair value through profit or loss

4,264

4,535

6,648

Total interest expense1

10,729

10,768

15,619

Net interest income

14,272

14,834

15,975

Interest income recorded on impaired financial assets was € 94 million, € 76 million and € 100 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss

in € m.

2014

2013

2012

1

Prior periods have been restated. For further detail please refer to Note 1 “Significant Accounting Policies and Critical Accounting Estimates” of this report.

2

Includes € 48 million, € (86) million and € (94) million from securitization structures for the years ended December 31, 2014, 2013 and 2012, respectively. Prior period comparatives were restated. Fair value movements on related instruments of € (315) million, € 390 million and € 358 million for December 31, 2014, 2013 and 2012, respectively, are reported within trading income. Prior period comparatives were restated. Both are reported under Sales & Trading (debt and other products). The total of these gains and losses represents the Group’s share of the losses in these consolidated securitization structures.

Trading income:

 

 

 

Sales & Trading (equity)

1,686

1,573

1,594

Sales & Trading (debt and other products)

2,583

2,465

4,810

Total Sales & Trading

4,269

4,039

6,404

Other trading income

137

(377)

(1,205)

Total trading income1

4,407

3,662

5,199

Net gains (losses) on financial assets/liabilities designated at fair value through profit or loss:

 

 

 

Breakdown by financial asset/liability category:

 

 

 

Securities purchased/sold under resale/repurchase agreements

(15)

31

14

Securities borrowed/loaned

0

0

(1)

Loans and loan commitments

(20)

(46)

739

Deposits

(1)

73

(56)

Long-term debt2

(538)

133

(328)

Other financial assets/liabilities designated at fair value through profit or loss

467

(35)

41

Total net gains (losses) on financial assets/liabilities designated at fair value through profit or loss

(108)

155

409

Total net gains (losses) on financial assets/liabilities at fair value through profit or loss

4,299

3,817

5,608

Combined Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss

in € m.

2014

2013

2012

1

Includes the net interest spread on loans as well as the fair value changes of credit default swaps and loans designated at fair value through profit or loss.

2

Includes net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss of origination, advisory and other products.

Net interest income

14,272

14,834

15,975

Net gains (losses) on financial assets/liabilities at fair value through profit or loss

4,299

3,817

5,608

Total net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss

18,570

18,651

21,583

Net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss by Corporate Division/product:

 

 

 

Sales & Trading (equity)

2,314

2,129

1,732

Sales & Trading (debt and other products)

6,685

6,069

7,851

Total Sales & Trading

8,998

8,197

9,582

Loan products1

695

599

182

Remaining products2

(61)

72

589

Corporate Banking & Securities

9,632

8,869

10,353

Private & Business Clients

5,962

5,966

6,220

Global Transaction Banking

2,232

1,984

2,016

Deutsche Asset & Wealth Management

1,505

1,568

1,974

Non-Core Operations Unit

(573)

245

650

Consolidation & Adjustments

(187)

19

369

Total net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss

18,570

18,651

21,583

The Group’s trading and risk management businesses include significant activities in interest rate instruments and related derivatives. Under IFRS, interest and similar income earned from trading instruments and financial instruments designated at fair value through profit or loss (i.e., coupon and dividend income), and the costs of funding net trading positions, are part of net interest income. The Group’s trading activities can periodically drive income to either net interest income or to net gains (losses) of financial assets/liabilities at fair value through profit or loss depending on a variety of factors, including risk management strategies. In order to provide a more business-focused presentation, the Group combines net interest income and net gains (losses) of financial assets/liabilities at fair value through profit or loss by business division and by product within CB&S.