Deutsche Bank

Annual Report 2017

Net Interest Income

in € m.

 

 

 

2017 increase
(decrease)
from 2016

2016 increase
(decrease)
from 2015

(unless stated otherwise)

2017

2016

2015

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

24,092

25,636

25,967

(1,544)

(6)

(331)

(1)

Total interest expenses

11,714

10,929

10,086

785

7

843

8

Net interest income

12,378

14,707

15,881

(2,329)

(16)

(1,174)

(7)

Average interest-earning assets1

1,021,697

1,033,172

1,031,827

(11,475)

(1)

1,345

0

Average interest-bearing liabilities1

790,488

812,578

816,793

(22,090)

(3)

(4,215)

(1)

Gross interest yield2

2.24 %

2.39 %

2.52 %

(0.15) ppt

(6)

(0.13) ppt

(5)

Gross interest rate paid3

1.32 %

1.23 %

1.23 %

0.09 ppt

7

0.00 ppt

0

Net interest spread4

0.91 %

1.16 %

1.28 %

(0.25) ppt

(22)

(0.12) ppt

(9)

Net interest margin5

1.21 %

1.42 %

1.54 %

(0.21) ppt

(15)

(0.12) ppt

(8)

2017

Net interest income was € 12.4 billion in 2017 compared to € 14.7 billion in 2016, a decrease of € 2.3 billion, or 16 %. The main drivers for decline in net interest income were perimeter changes including the sale of Abbey Life, PCS and the disposal of assets within the Non-Core Operations Unit (NCOU) in 2016, as well as higher funding costs and overall portfolio effects resulting in a shift towards lower interest yielding asset classes, mainly euro deposits with central banks. These effects were partially offset by interest income of € 116 million related to government grants under the Targeted Longer-Term Refinancing Operations II (TLTRO II) program. Overall, our net interest margin declined by 21 basis points in 2017 as compared to the prior year.

2016

Net interest income was € 14.7 billion in 2016 compared to € 15.9 billion in 2015, a decrease of € 1.2 billion, or 7 %. The decrease in net interest income was mainly driven by margin compression, the low interest rate environment, depressed trade volumes, reduced client balances and strategic perimeter decisions as well as higher funding costs. Both the net interest spread and the net interest margin declined by 12 basis points in 2016 as compared to prior year.