SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Balance Sheet F-108
Annual Report 2010 on Form 20-F 18 – Loans
18 –
Loans
The following are the principal components of loans by industry classification.
in € m. Dec 31, 2010 Dec 31, 2009
Banks and insurance 38,798 22,002
Manufacturing 20,748 17,314
Households (excluding mortgages) 35,115 27,002
Households – mortgages 132,235 58,673
Public sector 24,113 9,572
Wholesale and retail trade 13,637 10,938
Commercial real estate activities 44,120 28,959
Lease financing 2,321 2,078
Fund management activities 27,964 26,462
Other 72,841 59,698
Gross loans 411,892 262,698
(Deferred expense)/unearned income 867 1,250
Loans less (deferred expense)/unearned income 411,025 261,448
Less: Allowance for loan losses 3,296 3,343
Total loans 407,729 258,105
Commitments and Contingent Liabilities
The table below summarizes the contractual amounts of the Group’s irrevocable lending-related commitments
and contingent liabilities. Contingent liabilities mainly consist of financial and performance guarantees, standby
letters of credit and indemnity agreements. The contractual amount of these commitments is the maximum
amount at risk for the Group if the customer fails to meet its obligations. Probable losses under these contracts
are recognized as provisions.
in € m. Dec 31, 2010 Dec 31, 2009
Irrevocable lending commitments 123,881 104,125
Contingent liabilities 68,055 52,183
Total 191,936 156,308
Commitments and contingent liabilities stated above do not represent expected future cash flows as many of
these contracts will expire without being drawn. The Group may require collateral to mitigate the credit risk of
commitments and contingent liabilities.
Government Assistance
In the course of its business, the Group regularly applies for and receives government support by means of
Export Credit Agency (“ECA”) guarantees covering transfer and default risks for the financing of exports and
investments into Emerging Markets and, to a lesser extent, developed markets for Structured Trade & Export
Finance business. Almost all export-oriented states have established such ECAs to support their domestic
exporters. The ECAs act in the name and on behalf of the government of their respective country and are either
constituted directly as governmental departments or organized as private companies vested with the official
mandate of the government to act on its behalf. Terms and conditions of such ECA guarantees granted for shortterm,
mid-term and long-term financings are quite comparable due to the fact that most of the ECAs act within
the scope of the Organisation for Economic Cooperation and Development (“OECD”) consensus rules. The
OECD consensus rules, an intergovernmental agreement of the OECD member states, define benchmarks to
ensure that a fair competition between different exporting nations will take place.