SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Balance Sheet F-104
Annual Report 2010 on Form 20-F 15 – Fair Value of Financial Instruments not carried at Fair Value
The following table presents the estimated fair value of the Group’s financial instruments which are not carried
at fair value in the balance sheet.
Dec 31, 2010 Dec 31, 2009
in € m. Carrying value Fair value Carrying value Fair value
Financial assets:
Cash and due from banks 17,157 17,157 9,346 9,346
Interest-earning deposits with banks 92,377 92,378 47,233 47,236
Central bank funds sold and securities purchased under resale
agreements 20,365 20,310 6,820 6,820
Securities borrowed 28,916 28,916 43,509 43,509
Loans 407,729 401,813 258,105 249,661
Other assets 1 116,589 116,565 105,004 104,995
Financial liabilities:
Deposits 533,984 534,442 344,220 344,700
Central bank funds purchased and securities sold under
repurchase agreements 27,922 27,954 45,495 45,511
Securities loaned 3,276 3,276 5,564 5,564
Other short-term borrowings 64,990 64,912 42,897 42,833
Other liabilities 1 135,389 135,386 127,777 127,789
Long-term debt 169,660 168,211 131,782 132,577
Trust preferred securities 12,250 11,462 10,577 9,518
1 Only includes financial assets or financial liabilities.
Amounts in this table are generally presented on a gross basis, in line with the Group’s accounting policy
regarding offsetting of financial instruments as described in Note 01 “Significant Accounting Policies”.
The acquisition of Postbank contributed to the increase in the amount of financial assets and liabilities not carried
at fair value since December 31, 2009. Postbank’s contribution was primarily related to its loans, deposits and longterm
debt that were recognized at fair value on the Group's balance sheet on acquisition date. As of December 31,
2010, the carrying value of these financial instruments was € 129.4 billion, € 131.6 billion and € 33.5 billion
respectively. As there has been no material change in the fair value of Postbank’s loans since acquisition date,
the Group estimated the fair value to be equal to the carrying value at December 31, 2010. As of December 31,
2010 the Group estimated that the fair value of deposits is equal to the carrying value and the fair value of longterm
debt is € 48 million lower than the carrying value.
Loans: The difference between fair value and carrying value does not reflect the economic benefits and costs
that the Group expects to receive from these instruments. The difference arose predominantly due to an increase
in expected default rates and reduction in liquidity as implied from market pricing since initial recognition. These
reductions in fair value are partially offset by an increase in fair value due to interest rate movements on fixed
rate instruments.
Long-term debt and trust preferred securities: The difference between fair value and carrying value is due to the
effect of changes in the rates at which the Group could issue debt with similar maturity and subordination at the
balance sheet date compared to when the instrument was issued.