in € m. |
|
|
|
2017 increase |
2016 increase |
||||
(unless stated otherwise) |
2017 |
2016 |
2015 |
in € m. |
in % |
in € m. |
in % |
||
|
|||||||||
Compensation and benefits |
12,253 |
11,874 |
13,293 |
380 |
3 |
(1,419) |
(11) |
||
General and administrative expenses1 |
11,973 |
15,454 |
18,632 |
(3,481) |
(23) |
(3,178) |
(17) |
||
Policyholder benefits and claims |
0 |
374 |
256 |
(374) |
(100) |
117 |
46 |
||
Impairment of goodwill and other intangible assets |
21 |
1,256 |
5,776 |
(1,235) |
(98) |
(4,520) |
(78) |
||
Restructuring activities |
447 |
484 |
710 |
(37) |
(8) |
(226) |
(32) |
||
Total noninterest expenses |
24,695 |
29,442 |
38,667 |
(4,747) |
(16) |
(9,225) |
(24) |
||
N/M – Not meaningful |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
1 includes: |
|
|
|
|
|
|
|
||
IT costs |
3,798 |
3,872 |
3,664 |
(74) |
(2) |
208 |
6 |
||
Occupancy, furniture and equipment expenses |
1,849 |
1,972 |
1,944 |
(123) |
(6) |
28 |
1 |
||
Professional service fees |
1,769 |
2,305 |
2,283 |
(536) |
(23) |
22 |
1 |
||
Communication and data services |
686 |
761 |
807 |
(75) |
(10) |
(46) |
(6) |
||
Travel and representation expenses |
405 |
450 |
505 |
(45) |
(10) |
(56) |
(11) |
||
Banking and transaction charges |
744 |
664 |
598 |
80 |
12 |
66 |
11 |
||
Marketing expenses |
309 |
285 |
294 |
24 |
8 |
(9) |
(3) |
||
Consolidated investments |
0 |
334 |
406 |
(334) |
N/M |
(72) |
(18) |
||
Other expenses2 |
2,414 |
4,812 |
8,129 |
(2,398) |
(50) |
(3,317) |
(41) |
||
Total general and administrative expenses |
11,973 |
15,454 |
18,632 |
(3,481) |
(23) |
(3,178) |
(17) |
||
Compensation and benefits
2017
Compensation and benefits increased by € 380 million, or 3 %, to € 12.3 billion in 2017 compared to € 11.9 billion in 2016. The increase was primarily driven by higher variable compensation, reflecting the return to normal compensation programs in 2017. This increase was partly offset by a decrease in salaries, due to lower headcount and favorable foreign exchange movements, by reduced cost for amortization of prior years’ deferrals and by lower severance expense.
2016
Compensation and benefits decreased by € 1.4 billion, or 11 %, to € 11.9 billion in 2016 compared to € 13.3 billion in 2015, primarily due to significantly limited 2016 variable compensation.
General and administrative expenses
2017
General and administrative expenses decreased by € 3.5 billion, or 23 %, to € 12.0 billion in 2017 compared to € 15.5 billion in 2016. The decrease was mainly due to a € 2.2 billion reduction in litigation charges compared to 2016. Professional service fees declined by € 536 million driven by lower legal fees and reduced business consulting cost.
2016
General and administrative expenses decreased by € 3.2 billion, or 17 %, to € 15.5 billion in 2016 compared to € 18.6 billion in 2015. The decrease was mainly due to a € 2.8 billion reduction in litigation charges compared to 2015. Effects from favorable foreign exchange rate movements as well as reductions in various expense positions were partially offset by higher IT cost, including higher depreciation for self-developed software.
Policyholder benefits and claims
2017
No policyholder benefits and claims were reported for 2017 following the sale of Abbey Life business at the end of 2016.
2016
Policyholder benefits and claims increased by € 117 million, or 46 %, from € 256 million in 2015 to € 374 million in 2016 and were solely driven by higher policyholder benefits and claims recorded in the Abbey Life business. These charges were offset by net gains on financial assets/liabilities at fair value through profit or loss on policyholder benefits and claims.
Impairment of goodwill and other intangible assets
2017
Impairment charges on goodwill and other intangible assets decreased from € 1.3 billion in 2016 to € 21 million in 2017, primarily due to the non-recurrence of prior year charges. The 2016 charge reflected an impairment of € 1.0 billion in Deutsche AM, triggered by the sale of Abbey Life and an impairment of € 285 million in CIB following the transfer of certain businesses from Deutsche AM.
2016
Impairment charges on goodwill and other intangible assets decreased by € 4.5 billion, or 78 %, to € 1.3 billion in 2016, from € 5.8 billion in 2015. The decline as compared to 2015 was primarily due to the absence of 2015 charges, notably € 3.6 billion in PCB and € 2.2 billion in CIB.
Restructuring
2017
Restructuring expenses amounted to € 447 million in 2017 compared to € 484 million in 2016. Restructuring charges for 2017 are primarily related to the planned merger of Private and Commercial Clients Germany and Postbank.
2016
Restructuring expenses were € 484 million in 2016 compared to € 710 million in 2015 due to execution of strategic measures.
Income Tax Expense
2017
Income tax expense in 2017 was € 2.0 billion (2016: € 546 million). The effective tax rate of 160 % (2016: negative 67 %) was mainly impacted by a one-time charge of € 1.4 billion resulting from the U.S. tax reform and other changes in the recognition and measurement of deferred tax assets.
2016
Income tax expense in 2016 was € 546 million (2015: € 675 million). The effective tax rate of negative 67 % (2015: negative 11 %) was mainly impacted by non-tax deductible goodwill impairment and litigation charges.
Net income (loss)
2017
The 2017 result was a net loss of € 735 million, driven by the aforementioned one-time tax charge attributable to the re-measurement of U.S. Deferred Tax Assets as a result of the U.S. tax reform, compared to a net loss of € 1.4 billion in 2016.
2016
The 2016 result was a net loss of € 1.4 billion as compared to a net loss of € 6.8 billion in 2015.