Movements in Assets
The overall increase of € 98 billion (or 6 %) as of September 30, 2014, compared to December 31, 2013 was primarily driven by a € 67 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, and a € 51 billion increase in positive market values from derivative financial instruments during the period, largely related to foreign exchange and interest rate products, despite significant activity in trade restructuring to reduce mark-to-market and novation of trades.
The overall balance sheet increases include € 70 billion due to foreign exchange rate movements, in particular the significant strengthening of the U.S. dollar versus the euro during the third quarter, which accounted for € 51 billion of the increase.
Loans increased by € 19 billion, with exposure increases in CB&S, Deutsche AWM 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 € 1 billion, respectively, primarily driven by deposit growth.
Central bank funds sold, securities purchased under resale agreements and securities borrowed, under both accrual and fair value accounting, have decreased by € 34 billion in total, as a result of the adoption of IAS 32 R in 2014, allowing the offsetting of financial assets and financial liabilities for bilateral reverse repos and repos under certain conditions, and from managed reductions in our secured financing provided to clients.
Trading assets decreased by € 14 billion, primarily driven by debt securities, slightly being offset by an increase in equity securities.
Movements in Liabilities
As of September 30, 2014, total liabilities increased by € 83 billion (or 5 %) compared to year-end 2013. Similar to the asset side, these increases largely reflect the impact of foreign exchange rate movements during the year.
Negative market values from derivative financial instruments increased by € 56 billion and brokerage and securities related payables were up by € 51 billion compared to December 31, 2013, primarily due to the same reasons driving the movements in positive market values from derivative financial instruments and brokerage and securities related receivables as outlined above.
Deposits were up by € 15 billion, with increases in our funding through transaction banking and retail partly being offset by lower volumes from unsecured wholesale.
Long-term debt increased by € 13 billion, primarily from higher funding activities which exceeded the amount of debt that matured in the first nine months of the year.
Central bank funds purchased, securities sold under repurchase agreements and securities loaned, under both accrual and fair value accounting, have decreased by € 34 billion in total, due to the adoption of IAS 32 R in 2014, allowing the offsetting of financial assets and financial liabilities for bilateral reverse repos and repos under certain conditions, and from reductions in secured funding of highly liquid inventory.
Other short-term borrowings were down by € 9 billion, primarily due to lower issuances in CB&S and, to a lesser extent, in GTB.
Trading liabilities decreased by € 8 billion, primarily driven by debt securities, slightly offset by an increase in equity securities.