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 180
In 2010 we continued to focus on increasing our stable core funding components, while maintaining access to
short-term wholesale funding markets, albeit on a relatively low level. The volume of discretionary wholesale
funding is well diversified across products (e.g. CD, CP as well as term, call and overnight deposits) and tenors.
The acquisition of Postbank significantly increased the volume of our most stable funding sources. Postbank’s
status as a regulated bank and publicly traded company, however, may limit our access to its liquidity.
The overall volume of discretionary wholesale funding and secured funding fluctuated between reporting dates
based on our underlying business activities. Higher volumes, primarily in secured funding transactions, are
largely driven by increased client related securities financing activities as well as intra quarter growth in liquid
trading inventories. The growth in discretionary wholesale funding during the year 2010 is mainly a reflection of
the growth in cash and liquid trading assets within our Corporate Banking & Securities Corporate Division.
To avoid any unwanted reliance on these short-term funding sources, and to ensure a sound funding profile at
the short end, which complies with the defined risk tolerance, we have implemented limit structures (across
tenor) to these funding sources, which are derived from our stress testing analysis.
The following chart shows the composition of our external funding sources (on a consolidated basis with the
contribution from Postbank separately identified) that contribute to the liquidity risk position as of December 31,
2010 and December 31, 2009, both in euro billion and as a percentage of our total external funding sources.
Composition of external funding sources
In € bn.
300
225
150
75
0
42
180
164
169
153
11
120
100
108
21% 21% 26% 20% 12% 13% 10% 15% 10% 7% 19% 21% 3% 3%
Capital Markets
and Equity
111
Retail Transaction
Banking
118
Other
Customers*
December 31, 2010: Deutsche Bank € 897 billion, Postbank € 178 billion: total €1,075 billion
December 31, 2009: total € 777 billion
7
97
51
Discretionary
Wholesale
6
196
165
Secured Funding
and Shorts
* Other includes fiduciary, self-funding structures (e.g. X-markets), margin / Prime Brokerage cash balances (shown on a net basis).
** Includes ABCP-Conduits.
29
26
Financing
Vehicles**
Note: Reconciliation to total balance sheet: Derivatives & settlement balances EUR 706 billion (EUR 620 billion), add-back for netting effect for
Margin & Prime Brokerage cash balances (shown on a net basis) EUR 61 billion (EUR 51 billion), other non-funding liabilities EUR 63 billion (EUR 53 billion)
for December 31, 2010 and December 31, 2009 respectively; figures may not add up due to rounding.