SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank
Annual Report 2010 on Form 20-F
Item 11: Quantitative and Qualitative Disclosures about Credit, Market and Other Risk 151
The following table summarizes the level of impaired loans and the established allowance for loan losses for
our higher-risk loan bucket.
in € m. Impaired loans
Dec 31, 2010 Dec 31, 2009
Allowance for
loan losses Impaired loans
Allowance for
loan losses
Commercial Real Estate 421 297 460 274
CF Leveraged Finance 336 180 2,122 815
Other 798 466 934 377
Total 1,555 943 3,516 1,466
The above reduction of impaired loans and allowances for loan losses in relation to our higher risk loan bucket
was primarily driven by the restructuring of a single counterparty relationship in the leveraged finance portfolio
of our Corporate Finance business.
Credit Exposure Classification
We also classify our credit exposure under two broad headings: consumer credit exposure and corporate credit
exposure.
— Our consumer credit exposure consists of our smaller-balance standardized homogeneous loans, primarily
in Germany, Italy and Spain, which include personal loans, residential and nonresidential mortgage loans,
overdrafts and loans to self-employed and small business customers of our private and retail business.
— Our corporate credit exposure consists of all exposures not defined as consumer credit exposure.
Corporate Credit Exposure
The following table breaks down several of our main corporate credit exposure categories according to the
creditworthiness categories of our counterparties.
Corporate credit exposure credit
risk profile
by creditworthiness category Loans 1
in € m.
Dec 31,
2010
Dec 31,
2009
Irrevocable lending
commitments 2
Dec 31,
2010
Dec 31,
2009
Contingent liabilities OTC derivatives 3 Total
AAA–AA 62,603 28,134 23,068 22,211 7,334 6,573 23,967 23,966 116,972 80,884
A 48,467 29,634 31,945 22,758 21,318 13,231 16,724 13,793 118,454 79,416
BBB 56,096 46,889 36,542 28,814 20,391 15,753 8,408 7,600 121,437 99,056
BB 44,809 43,401 22,083 23,031 11,547 9,860 7,905 12,785 86,344 89,077
B 12,594 9,090 7,775 5,935 5,454 4,290 2,960 1,952 28,783 21,267
CCC and below 17,425 14,633 2,467 1,376 2,012 2,476 2,341 4,444 24,245 22,929
Total 241,994 171,781 123,880 104,125 68,056 52,183 62,305 64,540 496,235 392,629
Dec 31,
2010
Dec 31,
2009
Dec 31,
2010
Dec 31,
2009
1 Includes impaired loans mainly in category CCC and below amounting to € 3.6 billion as of December 31, 2010 and € 4.9 billion as of December 31, 2009.
2 Includes irrevocable lending commitments related to consumer credit exposure of € 4.5 billion as of December 31, 2010 and € 2.9 billion as of December 31, 2009.
3 Includes the effect of netting agreements and cash collateral received where applicable.
This table reflects an increase in our corporate loan book and irrevocable lending commitments which was
predominantly driven by the inclusion of Postbank exposures. The portion of our corporate loan book carrying
an investment-grade rating increased from 61 % as of December 31, 2009 to 69 % as of December 31, 2010,
reflecting the first time inclusion of Postbank exposures as well as improvements in counterparty ratings as
counterparties recover from the credit crisis and as a result of our proactive risk management activities. The
loan exposure shown in the table above does not take into account any collateral, other credit enhancement or
credit risk mitigating transactions. After consideration of such credit mitigants, we believe that our loan book is
well-diversified. The marginal decrease in our OTC derivatives exposure, particularly in our creditworthiness
category “BB”, was predominantly driven by tighter risk reduction activities. The OTC derivatives exposure
Dec 31,
2010
Dec 31,
2009