Deutsche Bank

Annual Report 2016

Net Interest Income

in € m.

 

 

 

2016 increase
(decrease)
from 2015

2015 increase
(decrease)
from 2014

(unless stated otherwise)

2016

2015

2014

in € m.

in %

in € m.

in %

ppt – Percentage points

1

Average balances for each year are calculated in general based upon month-end balances.

2

Gross interest yield is the average interest rate earned on our average interest-earning assets.

3

Gross interest rate paid is the average interest rate paid on our average interest-bearing liabilities.

4

Net interest spread is the difference between the average interest rate earned on average interest-earning assets and the average interest rate paid on average interest-bearing liabilities.

5

Net interest margin is net interest income expressed as a percentage of average interest-earning assets.

Total interest and similar income

25,636

25,967

25,001

(331)

(1)

966

4

Total interest expenses

10,929

10,086

10,729

843

8

(643)

(6)

Net interest income

14,707

15,881

14,272

(1,175)

(7)

1,610

11

Average interest-earning assets1

1,033,172

1,031,827

1,040,908

1,345

0

(9,080)

(1)

Average interest-bearing liabilities1

812,578

816,793

855,105

(4,215)

(1)

(38,312)

(4)

Gross interest yield2

2.39 %

2.52 %

2.40 %

(0.13) ppt

(5)

0.12 ppt

5

Gross interest rate paid3

1.23 %

1.23 %

1.25 %

0.00 ppt

0

(0.02) ppt

(2)

Net interest spread4

1.16 %

1.28 %

1.14 %

(0.12) ppt

(9)

0.14 ppt

12

Net interest margin5

1.42 %

1.54 %

1.37 %

(0.12) ppt

(8)

0.17 ppt

12

2016

Net interest income was € 14.7 billion in 2016 compared to € 15.9 billion in 2015. The decrease of € 1.2 billion, or 7 %, was mainly driven by higher interest expenses and lower interest income. Net interest income in GM was lower and included lower revenues from Prime Finance due to reduced client balances. Higher interest expenses in GM included the impact of higher cost of funding. Interest income in CIB declined due to margin compression, the low interest rate environment, depressed trade volume and internal strategic perimeter decisions as part of our targets originally announced in October 2015. Both, the net interest spread and the net interest margin declined by 12 basis points in 2016 as compared to prior year.

2015

The increase in net interest income in 2015 of € 1.6 billion, or 11 %, to € 15.9 billion compared to € 14.3 billion in 2014, was primarily driven by higher interest income on trading assets in GM, mainly from strong client activity and increased client balances. Also contributing to the increase were favorable foreign exchange rate movements and organic growth in Deutsche AM. Overall, the net interest spread increased by 14 basis points and the net interest margin improved by 17 basis points primarily driven by lower interest related volume, an increase in interest income and a decrease in interest expenses in 2015 as compared to prior year.