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 157
Dec 31, 2009 Impaired loans Nonimpaired problem loans
Problem
loans
in € m. German Non-German Total German Non-German Total Total
Individually assessed 758 4,145 4,903 304 1,037 1,341 6,244
Nonaccrual loans
Loans 90 days or more past due
707 4,027 4,734 200 1,003 1,203 5,937
and still accruing – – – 50 5 55 55
Troubled debt restructurings 51 118 169 54 29 83 252
Collectively assessed 907 1,391 2,298 274 97 371 2,669
Nonaccrual loans
Loans 90 days or more past due
905 1,281 2,186 – – – 2,186
and still accruing – – – 260 6 266 266
Troubled debt restructurings 2 110 112 14 91 105 217
Total problem loans
thereof: IAS 39 reclassified
1,665 5,536 7,201 578 1,134 1,712 8,913
problem loans 28 2,750 2,778 – 159 159 2,937
Our total problem loans decreased by € 478 million or 5 % during 2010 due to € 1.4 billion of charge-offs, partly
offset by a € 716 million gross increase of problem loans and a € 248 million increase as a result of exchange
rate movements.
The decrease in our total problem loans was driven by a restructuring of loans for a single counterparty stemming
from a failed syndication which were among the loans reclassified in accordance with IAS 39. This led to a
reduction of € 1.4 billion in impaired loans, thereof € 545 million due to charge-offs. After the restructuring we
continued to provide both senior and subordinate debt financing, but held certain noncontrolling rights, consents
and vetoes over the financial and operating decisions of the company. We accounted for the subordinated
financing arrangement as an equity method investment, and it was not disclosed as a problem loan.
Individually assessed impaired loans decreased by overall € 1.4 billion due to charge-offs of € 934 million and
gross decreases of € 609 million, partly offset by € 191 million exchange rate movements. The main reason for
the overall reduction of individually assessed impaired loans was the aforementioned restructuring. Our collectively
assessed impaired loans increased by € 415 million. These increases were driven by our acquisition of
Postbank as well as by increases in our portfolios in Italy and Poland. Gross increases in collectively assessed
impaired loans of € 909 million and € 15 million exchange rate movements were partially offset by € 509 million
charge-offs.
These effects led to a total decrease in impaired loans by € 937 million or 13 %, while nonimpaired problem
loans increased by € 459 million due to a number of loans designated as defaulted, but for which we did not
expect to incur a loss, mainly due to collateralization.
Our problem loans included € 2.2 billion of problem loans among the loans reclassified to loans and receivables
in accordance with IAS 39. For these loans we recorded charge-offs of € 607 million and gross decreases in
problem loans of € 219 million, partially offset by a € 101 million increase as a result of exchange rate
movements.