Deutsche Bank
Annual Report 2017

Deutsche Bank

Annual Report 2017

Consolidation & Adjustments

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Consolidation & Adjustments

in € m.

 

 

 

2017 increase
(decrease)
from 2016

2016 increase
(decrease)
from 2015

(unless stated otherwise)

2017

2016

2015

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 in December 2015 represents the difference between the spot values of the segments for the period end and the average Group amount.

Net revenues1

(488)

(471)

179

(16)

3

(650)

N/M

Provision for credit losses

(0)

(0)

(0)

0

(19)

(0)

N/M

Noninterest expenses

 

 

 

 

 

 

 

Compensation and benefits

3,223

3,101

3,279

122

4

(178)

(5)

General and administrative expenses

(3,000)

(2,979)

(2,299)

(21)

1

(679)

30

Policyholder benefits and claims

0

0

0

0

N/M

0

N/M

Impairment of goodwill and other intangible assets

0

(0)

0

0

N/M

(0)

N/M

Restructuring activities

(0)

(7)

(3)

6

(98)

(3)

99

Total noninterest expenses

223

116

976

107

93

(860)

(88)

Noncontrolling interests

(16)

(46)

(27)

30

(65)

(19)

70

Income (loss) before income taxes

(695)

(541)

(770)

(153)

28

229

(30)

Assets2

6,586

40,959

26,305

(34,373)

(84)

14,654

56

Risk-weighted assets3

16,734

15,706

12,780

1,028

7

2,926

23

Average shareholders' equity4

99

0

6,377

99

N/M

(6,377)

N/M

2017

Loss before income taxes in C&A was € 695 million in 2017 compared to a loss of € 541 million in the prior year period, an increase of € 153 million, or 28 %. 2017 was impacted by € 213 million of currency translation adjustment realization and losses on sale from the disposal of non-strategic subsidiaries including in Argentina and Uruguay. Maintaining funding and liquidity buffers in excess of business-based liquidity requirements resulted in negative € 114 million (2016: negative € 42 million). Foreign exchange revaluation of proceeds from GBP denominated AT1 issuance was negative € 26 million (2016: negative € 127 million). Valuation and timing differences included a negative € 164 million in the debt issuance portfolio related to the tightening of our own credit spread. This was offset by a positive impact of € 104 million from interest rate related items, primarily driven by adjustments related to Group cash flow hedging programs. In 2016, valuation and timing differences included negative € 252 million from the Treasury portfolio, mainly driven by movement of interest rates and cross-currency basis spreads. Litigation costs amounted to € 112 million in 2017, an increase of € 130 million compared to prior year. 2016 litigation costs benefitted from a € 73 million insurance recovery.

2016

Loss before income taxes was € 541 million in 2016 compared to a loss of € 770 million in 2015, a decrease of € 229 million, or 30 %, primarily as fourth quarter 2015 included a negative impact of € 358 million from litigation costs related to infrastructure functions reallocated from the Corporate & Investment Bank to C&A. Additionally, 2015 included negative € 146 million valuation and timing differences driven by a narrowing of our credit spreads as well as negative € 130 million resulting from the Postbank squeeze out. In 2016, valuation and timing differences included negative € 252 million from the Treasury portfolio, mainly driven by movement of interest rates and cross-currency basis spreads. Net revenues also included negative € 127 million related to the foreign exchange revaluation of proceeds from GBP-denominated AT1 issuance (2015: € 50 million).