SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Financial Statements F-71
Annual Report 2010 on Form 20-F 05 – Business Segments and Related Information
The financial impact on the business segments for 2010 was as follows:
— GTB (€ 106 million), AWM (€ 16 million) and PBC (€ 1 million) received additional funding benefit.
— CB&S (€ 93 million) and CI (€ 30 million) received additional funding costs.
The financial impact on the business segments for 2009 was as follows:
— GTB (€ 160 million), AWM (€ 32 million) and PBC (€ 4 million) received additional funding benefit.
— CB&S (€ 167 million) and CI (€ 30 million) received additional funding costs.
Management uses certain measures for equity and related ratios as part of its internal reporting system because
it believes that these measures provide it with a more useful indication of the financial performance of the
business segments. The Group discloses such measures to provide investors and analysts with further insight
into how management operates the Group’s businesses and to enable them to better understand the Group’s
results. These measures include:
— Average Active Equity: The Group calculates active equity to facilitate comparison to its peers. The Group
uses average active equity to calculate several ratios. However, active equity is not a measure provided for
in IFRS and therefore the Group’s ratios based on average active equity should not be compared to other
companies’ ratios without considering the differences in the calculation. The items for which the average
shareholders’ equity is adjusted are average accumulated other comprehensive income excluding foreign
currency translation (all components net of applicable taxes) as well as average dividends, for which a
proposal is accrued on a quarterly basis and which are paid after the approval by the Annual General
Meeting following each year. Tax rates applied in the calculation of average active equity are those used in
the financial statements for the individual items and not an average overall tax rate. The Group’s average
active equity is allocated to the business segments and to C&A in proportion to their economic risk exposures,
which consist of economic capital, goodwill and unamortized other intangible assets. The total amount allocated
is the higher of the Group’s overall economic risk exposure or regulatory capital demand. In 2008, this
demand for regulatory capital was derived by assuming a Tier 1 ratio of 8.5 %. In 2009 and 2010, the Group
derived its internal demand for regulatory capital assuming a Tier 1 ratio of 10.0 %. If the Group’s average
active equity exceeds the higher of the overall economic risk exposure or the regulatory capital demand, this
surplus is assigned to C&A.
— Return on Average Active Equity in % is defined as income before income taxes less noncontrolling interest
as a percentage of average active equity. These returns, which are based on average active equity, should
not be compared to those of other companies without considering the differences in the calculation of such
ratios.