SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank
Annual Report 2010 on Form 20-F
Dec 31, 2009
in € m. On demand
Item 11: Quantitative and Qualitative Disclosures about Credit, Market and Other Risk 185
Due within
3 months
Due between
3 and 12
months
Due between
1 and 5 years
Due after
5 years
Noninterest bearing deposits 51,731 – – – –
Interest bearing deposits 117,960 126,598 14,649 21,362 11,987
Trading liabilities 1 64,501 – – – –
Negative market values from derivative financial instruments 1 576,973 – – – –
Financial liabilities designated at fair value through profit or loss 64,920 33,785 4,806 5,797 4,826
Investment contract liabilities 2 – 514 806 1,247 4,710
Negative market values from derivative financial instruments
qualifying for hedge accounting 3 946 – 10 392 2,455
Central bank funds purchased 3,824 1,884 – – –
Securities sold under repurchase agreements 1,349 38,292 104 37 5
Securities loaned 5,028 54 16 – 466
Other short-term borrowings 24,830 17,370 632 – –
Long-term debt 1,856 2,044 20,373 67,837 41,011
Trust preferred securities – – 746 3,991 5,840
Other financial liabilities 120,731 6,705 375 233 60
Off-balance sheet loan commitments 63,662 – – – –
Financial guarantees 21,719 – – – –
Total 4 1,120,030 227,246 42,517 100,896 71,360
1 Trading liabilities and derivatives not qualifying for hedge accounting balances are recorded at fair value. We believe that this best represents the cash flow that would
have to be paid if these positions had to be closed out. Trading liabilities and derivatives not qualifying for hedge accounting balances are shown within on demand
which management believes most accurately reflects the short-term nature of trading activities. The contractual maturity of the instruments may however extend over
significantly longer periods.
2 These are investment contracts where the policy terms and conditions result in their redemption value equaling fair value. See Note 39 “Insurance and Investment
Contracts” for more detail on these contracts.
3 Derivatives designated for hedge accounting are recorded at fair value and are shown in the time bucket at which the hedged relationship is expected to terminate.
4 The balances in the table do not agree to the numbers in the Group balance sheet as the cash flows included in the table are undiscounted. This analysis represents
the worst case scenario for the Group if they were required to repay all liabilities earlier than expected. We believe that the likelihood of such an event occurring is
remote. Interest cash flows have been excluded from the table.
Capital Management
Our Treasury function manages our capital at Group level and locally in each region, except that Postbank
manages its capital on a group level and locally on its own. The allocation of financial resources, in general,
and capital, in particular, favors business portfolios with the highest positive impact on our profitability and
shareholder value. As a result, Treasury periodically reallocates capital among business portfolios.
Treasury implements our capital strategy, which itself is developed by the Capital and Risk Committee and
approved by the Management Board, including the issuance and repurchase of shares. We are committed to
maintain our sound capitalization. Overall capital demand and supply are constantly monitored and adjusted, if
necessary, to meet the need for capital from various perspectives. These include book equity based on IFRS
accounting standards, regulatory capital and economic capital. Since October 2008, our target for the Tier 1
capital ratio continued to be at 10 % or above.