SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank
Annual Report 2010 on Form 20-F
Related Party Transactions
Item 7: Major Shareholders and Related Party Transactions 116
We have business relationships with a number of the companies in which we own significant equity interests.
We also have business relationships with a number of companies where members of our Management Board
also hold positions on boards of directors. Our business relationships with these companies cover many of the
financial services we provide to our clients generally. For more detailed information, refer to Note 37 “Related
Party Transactions” of the consolidated financial statements.
We believe that we conduct all of our business with these companies on terms equivalent to those that would
prevail if we did not have equity holdings in them or management members in common, and that we have
conducted business with these companies on that basis in 2010 and prior years. None of these transactions is
or was material to us.
Among our business with related party companies in 2010, there have been and currently are loans, guarantees
and commitments, which totaled € 4.7 billion (including loans of € 4.3 billion) as of January 31, 2011. The increase
compared to January 31, 2010 was principally driven by the restructuring of a Leveraged Finance exposure
with a single counterparty. Following the restructuring, we held an equity method investment and loans amounting
to € 3.5 billion. All these credit exposures
— were made in the ordinary course of business,
— were made on substantially the same terms, including interest rates and collateral, as those prevailing at the
time for comparable transactions with other persons, and
— did not involve more than the normal risk of collectability or present other unfavorable features compared to
loans to nonrelated parties.
We have not conducted material business with parties that fall outside of the definition of related parties, but
with whom we or our related parties have a relationship that enables the parties to negotiate terms of material
transactions that may not be available from other, more clearly independent, parties on an arm’s-length basis.
Related Party Nonaccrual Loans
In addition to our other shareholdings, we hold acquired equity interests in some of our clients arising from our
efforts to protect our then-outstanding lending exposures to them.
Nonaccrual loans to related parties which may exhibit more than normal risk of collectability or present other
unfavorable features compared to performing loans increased by € 473 million to € 505 million, from January
31, 2010. The largest problem loan amount outstanding during the period from January 1, 2010 to January 31,
2011 was € 508 million. The following table presents an overview of the nonaccrual loans we hold of some of
our related parties as of January 31, 2011.