Deutsche Bank Annual Report 2016 - Consolidation & Adjustments

in € m.

2016 increase (decrease)
from 2015

2015 increase (decrease)
from 2014

(unless stated otherwise)

2016

2015

2014

in € m.

in %

in € m.

in %

N/M – Not meaningful
1	Net interest income and noninterest income.
2	Assets in C&A reflect residual Treasury assets not allocated to the business segments as well as Corporate assets, such as deferred tax assets and central clearing accounts, outside the management responsibility of the business segments.
3	Risk weighted assets are based upon CRR/CRD 4 fully-loaded. Risk-weighted assets in C&A reflect Treasury and Corporate assets outside the management responsibility of the business segments, primarily the Group’s deferred tax assets.
4	Average shareholders’ equity assigned to C&A reflects the residual amount of equity that is not allocated to the segments as described in Note 4 “Business Segments and Related Information”.

Net revenues¹

(479)

184

(26)

(663)

N/M

210

N/M

Provision for credit losses

Noninterest expenses

Compensation and benefits

3,861

4,052

3,522

(191)

(5)

530

General and administrative expenses

(3,756)

(3,073)

(3,287)

(683)

214

(7)

Policyholder benefits and claims

N/M

Impairment of goodwill and other intangible assets

(0)

N/M

Restructuring activities

(0)

N/M

(1)

(94)

Total noninterest expenses

106

980

237

(874)

(89)

743

N/M

Noncontrolling interests

(46)

(27)

(28)

(19)

(4)

Income (loss) before income taxes

(541)

(770)

(236)

229

(30)

(535)

N/M

Assets²

40,959

26,092

22,163

14,867

3,930

Risk-weighted assets³

15,706

12,780

21,506

2,926

(8,726)

(41)

Average shareholders' equity⁴

1,361

143

(1,323)

(97)

1,218

N/M

2016

In 2016, C&A net revenues of negative € 479 million were mainly due to negative € 252 million in valuation and timing differences of the Treasury portfolio. The main negative driver, in valuations and timing differences, was changes in interest rates offset by the widening of our own credit spread and movements in cross currency basis spreads. Net revenues also included negative € 127 million related to the foreign exchange revaluation of proceeds from GBP denominated AT1 issuance; additionally, revenues include negative € 126 million from municipal bonds taxable equivalent which is reported by the business and balanced out via C&A. These negative effects were partly offset by a positive result of € 71 million from FVA on internal uncollateralized intercompany derivatives due to a tightening of funding spreads.

Noninterest expenses of € 106 million were mainly driven by € 137 million costs associated with the preparation for deconsolidation of Postbank, partly offset by € 30 million related to tax recoveries.

Loss before income taxes was € 541 million in 2016 compared to a loss of € 770 million in 2015, primarily as the fourth quarter 2015 included a negative impact of € 358 million from litigation costs related to infrastructure functions reallocated from Global Markets to C&A.

2015

In 2015, C&A net revenues of € 184 million included € 221 million of Treasury revenues which were offset in noninterest expenses as Treasury allocates revenues and costs to business segments. C&A revenues also included negative € 146 million in valuation and timing differences driven by a narrowing of our own credit spread, and a narrowing of the basis spread between EUR/USD, as well as an impact from a change in valuation methodology for debt held at fair value. Revenues also included negative € 130 million resulting from the Postbank squeeze out. These negative effects were partly offset by a positive € 72 million from FVA on internal uncollateralized intercompany derivatives.

Noninterest expenses of € 980 million were mainly driven by € 358 million of litigation costs related to infrastructure functions as well as € 68 million of costs associated with the preparation for deconsolidation of Postbank including a related real estate transfer tax. Noninterest expenses also include a € 54 million provision for compensation-related costs.

Loss before income taxes was at € 770 million in 2015 compared to a loss of € 236 million in 2014. The development was primarily driven by litigation costs related to infrastructure functions.