SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Supplemental Financial Information (Unaudited) S-11
Annual Report 2010 on Form 20-F
loss provisions in the Group’s collectively assessed exposure amounted to € 751 million, reflecting a significant
reduction of the Group’s net credit costs in Spain and India partially offset by increases in Poland, which is
lower than the € 808 million recorded in the prior year, which was predominately driven by the challenging
credit environment in Spain and Poland during 2009.
The Group’s individually assessed loan loss allowance was € 1.6 billion as of December 31, 2010. The
€ 386 million decrease in 2010 comprises net provisions of € 562 million (including the aforementioned impact
from IAS 39 reclassifications), net charge-offs of € 896 million and a € 52 million decrease from currency
translation and unwinding effects.
The Group’s collectively assessed loan loss allowance totaled € 1.7 billion as of December 31, 2010, representing
an increase of € 339 million against the level reported for the end of 2009 (€ 1.3 billion). Movements in this
component comprised a € 751 million provision, being partially offset by € 404 million net charge-offs and a
€ 8 million net decrease from currency translation and unwinding effects.
The Group’s allowance for loan losses as of December 31, 2009 was € 3.3 billion, a 72 % increase from the
€ 1.9 billion reported for the end of 2008. The increase in the Group’s allowance was principally due to provisions
substantially exceeding charge-offs.
The Group’s gross charge-offs were € 1.2 billion in 2009. Of the charge-offs for 2009, € 637 million were related
to the Group’s corporate credit exposure, of which € 414 million were related to assets which had been reclassified
in accordance with IAS 39 in the Group’s U.S. and U.K. portfolios, and € 419 million to the consumer credit
exposure, mainly driven by the Group’s German portfolios.
The Group’s provision for loan losses in 2009 was € 2.6 billion, principally driven by € 1.8 billion for its corporate
credit exposures, of which € 1.3 billion of new provisions were established relating to assets which had been
reclassified in accordance with IAS 39, relating predominately to exposures in Leveraged Finance. The remaining
increase reflected impairment charges taken on a number of exposures in the Americas and in
Europe on the back of the overall deteriorating credit environment. Loan loss provisions for PCAM amounted to
€ 805 million, predominately reflecting a more challenging credit environment in Spain and Poland. Provisions
in 2009 were positively impacted by changes in certain parameter and model assumptions, which reduced
provisions by € 87 million in CIB and € 146 million in PCAM.
The Group’s individually assessed loan loss allowance was € 2.0 billion as of December 31, 2009. The
€ 1.1 billion increase in 2009 is comprised of net provisions of € 1.8 billion (including the aforementioned
impact from IAS 39 reclassifications), net charge-offs of € 637 million and a € 100 million decrease from
currency translation and unwinding effects.
The Group’s collectively assessed loan loss allowance totaled € 1.3 billion as of December 31, 2009, representing
an increase of € 353 million against the level reported for the end of 2008 (€ 961 million). Movements in this
component include a € 808 million provision, including a positive impact by changes in certain parameter and
model assumptions which reduced provision by € 87 million, being offset by € 419 million net charge-offs and
a € 36 million net decrease from currency translation and unwinding effects.
The Group’s allowance for loan losses as of December 31, 2008 was € 1.9 billion, a 14 % increase from the
€ 1.7 billion reported for the end of 2007. The increase in the Group’s allowance was principally due to provisions
exceeding the Group’s charge-offs.