Deutsche Bank

Annual Report 2017

Segment Results of Operations

The following is a discussion of the results of our business segments. See Note 4 “Business Segments and Related Information” to the consolidated financial statements for information regarding:

  • changes in the format of our segment disclosure and
  • the framework of our management reporting systems.

The criterion for segmentation into divisions is our organizational structure as it existed at December 31, 2017. Prior period comparatives were restated due to changes in the divisional structure. Segment results were prepared in accordance with our management reporting systems.

2017

 

 

 

 

 

 

2017

in € m.
(unless stated otherwise)

Corporate & Invest­ment Bank

Private & Commercial Bank

Deutsche Asset Manage­ment

Non-Core Oper­ations Unit

Consoli­dation & Adjust­ments

Total Consolidated

N/M – Not meaningful

3

Risk-weighted assets and capital ratios are based upon CRR/CRD 4 fully-loaded.

4

The post-tax return on average tangible shareholders’ equity and average shareholders’ equity at the Group level reflects the reported effective tax rate for the Group, which was 160 % for the year ended December 31, 2017. For the post-tax return on average tangible shareholders’ equity and average shareholders’ equity of the segments, the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so that the segment tax rates were 33 % for the year ended December 31, 2017.

Net revenues1

14,226

10,178

2,532

(488)

26,447

Provision for credit losses

213

313

(1)

(0)

525

Noninterest expenses

 

 

 

 

 

 

Compensation and benefits

4,273

3,979

778

3,223

12,253

General and administrative expenses

8,782

5,166

1,025

(3,000)

11,973

Policyholder benefits and claims

0

0

0

0

0

Impairment of goodwill and other intangible assets

6

12

3

0

21

Restructuring activities

82

360

6

(0)

447

Total noninterest expenses

13,143

9,518

1,811

223

24,695

Noncontrolling interests

26

(12)

1

(16)

0

Income (loss) before income taxes

843

359

720

(695)

1,228

Cost/income ratio

92 %

94 %

72 %

N/M

93 %

Assets2

1,127,028

333,069

8,050

6,586

1,474,732

Additions to non-current assets

125

551

60

1,067

1,803

Risk-weighted assets3

231,574

87,472

8,432

16,734

344,212

CRD 4 leverage exposure measure (spot value at reporting date)

1,029,946

344,087

2,870

17,983

1,394,886

Average shareholders' equity

44,169

14,934

4,725

99

63,926

Post-tax return on average tangible shareholders’ equity4

1 %

2 %

54 %

N/M

(1) %

Post-tax return on average shareholders’ equity4

1 %

2 %

10 %

N/M

(1) %

 

 

 

 

 

 

 

1 includes:

 

 

 

 

 

 

Net interest income

4,532

5,876

(19)

1,989

12,378

Net income (loss) from equity method investments

81

3

44

9

137

2 includes:

 

 

 

 

 

 

Equity method investments

553

91

211

10

866

2016

 

 

 

 

 

 

2016

in € m.
(unless stated otherwise)

Corporate & Invest­ment Bank

Private & Commercial Bank

Deutsche Asset Manage­ment

Non-Core Oper­ations Unit

Consoli­dation & Adjust­ments

Total Consolidated

N/M – Not meaningful

3

Risk-weighted assets and capital ratios are based upon CRR/CRD 4 fully-loaded.

4

The post-tax return on average tangible shareholders’ equity and average shareholders’ equity at the Group level reflects the reported effective tax rate for the Group, which was (67) % for the year ended December 31, 2016. For the post-tax return on average tangible shareholders’ equity and average shareholders’ equity of the segments, the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so that the segment tax rates were 35 % for the year ended December 31, 2016.

Net revenues1

16,763

11,090

3,015

(382)

(471)

30,014

Provision for credit losses

816

439

1

128

(0)

1,383

Noninterest expenses

 

 

 

 

 

 

Compensation and benefits

3,955

4,042

708

68

3,101

11,874

General and administrative expenses

9,655

5,029

1,071

2,678

(2,979)

15,454

Policyholder benefits and claims

0

0

374

0

0

374

Impairment of goodwill and other intangible assets

285

0

1,021

(49)

(0)

1,256

Restructuring activities

299

141

47

4

(7)

484

Total noninterest expenses

14,193

9,212

3,220

2,701

116

29,442

Noncontrolling interests

49

0

0

(4)

(46)

0

Income (loss) before income taxes

1,705

1,439

(206)

(3,207)

(541)

(810)

Cost/income ratio

85 %

83 %

107 %

N/M

N/M

98 %

Assets2

1,201,894

329,869

12,300

5,523

40,959

1,590,546

Additions to non-current assets

22

480

1

0

1,517

2,019

Risk-weighted assets3

237,596

86,082

8,960

9,174

15,706

357,518

CRD 4 leverage exposure measure (spot value at reporting date)

954,203

342,424

3,126

7,882

40,018

1,347,653

Average shareholders' equity

40,518

15,018

4,864

1,682

0

62,082

Post-tax return on average tangible shareholders’ equity4

3 %

7 %

N/M

N/M

N/M

(3) %

Post-tax return on average shareholders’ equity4

3 %

6 %

(3) %

N/M

N/M

(2) %

 

 

 

 

 

 

 

1 includes:

 

 

 

 

 

 

Net interest income

6,314

6,201

326

142

1,724

14,707

Net income (loss) from equity method investments

138

5

44

269

(1)

455

2 includes:

 

 

 

 

 

 

Equity method investments

698

23

203

98

4

1,027

2015

 

 

 

 

 

 

2015

in € m.
(unless stated otherwise)

Corporate & Invest­ment Bank

Private & Commercial Bank

Deutsche Asset Manage­ment

Non-Core Oper­ations Unit

Consoli­dation & Adjust­ments

Total Consolidated

N/M – Not meaningful

3

Risk-weighted assets and capital ratios are based upon CRR/CRD 4 fully-loaded.

4

The post-tax return on average tangible shareholders’ equity and average shareholders’ equity at the Group level reflects the reported effective tax rate for the Group, which was (11) % for the year ended December 31, 2015. For the post-tax return on average tangible shareholders’ equity and average shareholders’ equity of the segments, the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so that the segment tax rates were 35 % for the year ended December 31, 2015.

Net revenues1

18,899

10,637

3,016

794

179

33,525

Provision for credit losses

393

511

1

51

(0)

956

Noninterest expenses

 

 

 

 

 

 

Compensation and benefits

4,897

4,161

870

86

3,279

13,293

General and administrative expenses

11,662

5,139

1,209

2,921

(2,299)

18,632

Policyholder benefits and claims

0

0

256

0

0

256

Impairment of goodwill and other intangible assets

2,168

3,608

0

0

0

5,776

Restructuring activities

129

586

(2)

(1)

(3)

710

Total noninterest expenses

18,856

13,495

2,334

3,006

976

38,667

Noncontrolling interests

26

0

(0)

1

(27)

0

Income (loss) before income taxes

(376)

(3,370)

682

(2,264)

(770)

(6,097)

Cost/income ratio

100 %

127 %

77 %

N/M

N/M

115 %

Assets2

1,236,770

312,732

30,316

23,007

26,305

1,629,130

Additions to non-current assets

3

280

2

3

1,251

1,539

Risk-weighted assets3

247,423

92,857

10,757

32,896

12,780

396,714

CRD 4 leverage exposure measure (spot value at reporting date)

1,007,791

329,902

5,354

36,553

15,587

1,395,188

Average shareholders' equity

39,258

14,333

5,352

3,735

6,377

69,055

Post-tax return on average tangible shareholders’ equity4

(1) %

(17) %

145 %

N/M

N/M

(12) %

Post-tax return on average shareholders’ equity4

(1) %

(15) %

8 %

N/M

N/M

(10) %

 

 

 

 

 

 

 

1 includes:

 

 

 

 

 

 

Net interest income

7,498

6,415

449

272

1,248

15,881

Net income (loss) from equity method investments

68

40

34

20

2

164

2 includes:

 

 

 

 

 

 

Equity method investments

650

21

182

166

(6)

1,013