Movements in Assets
The overall increase of € 54 billion (or 3 %) as of June 30, 2014, compared to December 31, 2013, was primarily driven by a € 56 billion growth in brokerage and securities related receivables, following the seasonality pattern we typically observe of lower year-end levels versus higher volumes over the course of the year.
Loans increased by € 11 billion, with exposure increases in CB&S and GTB partly being offset by managed reductions in our NCOU.
Cash and due from banks as well as interest-earning deposits with banks increased in the same period by € 4 billion and € 6 billion, respectively. This was primarily driven by deposit growth and proceeds from our recent equity issuances.
These increases were partially offset by a € 20 billion reduction in positive market values from derivative financial instruments during the same period, primarily related to foreign exchange and equity products.
Foreign exchange rate movements (included in the figures above), in particular the strengthening of the Pound Sterling, the US dollar, the Japanese yen and the Australian dollar versus the euro, contributed € 12 billion to the increase of our balance sheet in the first six months of 2014.
Movements in Liabilities
As of June 30, 2014, total liabilities increased by € 41 billion (or 3 %) compared to year-end 2013.
Brokerage and securities related payables were up € 42 billion compared to December 31, 2013, while negative market values from derivative financial instruments declined by € 12 billion, primarily due to the same reasons driving the movements in brokerage and securities related receivables and positive market values from derivative financial instruments as outlined above.
Deposits were up by € 10 billion, driven by increases in our funding through transaction banking and, to a lesser extent, unsecured wholesale.
Central bank funds purchased, securities sold under repurchase agreements and securities loaned, under both accrual and fair value accounting, have increased by € 9 billion in total, primarily stemming from increased client activity and term secured financing of CB&S inventory.
Long-term debt increased by € 7 billion, primarily from higher funding activities which exceeded the amount of debt that matured in the first half of the year.