SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Supplemental Financial Information (Unaudited) S-12
Annual Report 2010 on Form 20-F
The Group’s gross charge-offs were € 990 million in 2008. Of the charge-offs for 2008, € 626 million were
related to the Group’s consumer credit exposure, and € 364 million to the Group’s corporate credit exposure,
mainly driven by the Group’s German and U.S. portfolios.
The Group’s provision for loan losses in 2008 was € 1.1 billion, principally driven by the consumer credit exposure
as a result of the deteriorating credit conditions in Spain, higher delinquencies in Germany and Italy, as well as
organic growth in Poland. For the Group’s corporate credit exposures, € 257 million new provisions were
established in the second half of 2008 relating to assets which had been reclassified in accordance with IAS 39.
Additional loan loss provisions within this portfolio were required on mainly European loans, reflecting the
deterioration in credit conditions.
The Group’s individually assessed loan loss allowance was € 977 million as of December 31, 2008. The
€ 47 million increase in 2008 is comprised of net provisions of € 382 million (including the aforementioned
impact from IAS 39 reclassifications), net charge-offs of € 301 million and a € 34 million decrease from
currency translation and unwinding effects.
The Group’s collectively assessed loan loss allowance totaled € 961 million as of December 31, 2008, representing
an increase of € 186 million against the level reported for the end of 2007 (€ 775 million). Movements
in this component include a € 702 million provision being offset by € 477 million net charge-offs, and a € 39 million
net reduction due to exchange rate movements and unwinding effects. Given this increase, the Group’s collectively
assessed loan loss allowance is almost at the same level as the individually assessed loan loss
allowance.
The Group’s allowance for loan losses as of December 31, 2007 was € 1.7 billion, virtually unchanged from the
level reported at the end of 2006.
The Group’s gross charge-offs amounted to € 752 million in 2007, an increase of € 20 million, or 3 %, from 2006.
Of the charge-offs for 2007, € 244 million were related to the Group’s corporate credit exposure, and € 508 million
were related to the Group’s consumer credit exposure.
The Group’s provision for loan losses in 2007 was € 651 million, up € 299 million, or 85 %, primarily related to a
single counterparty relationship in the Group’s Corporate & Investment Bank Group Division and the Group’s
consumer finance growth strategy. In 2007, the Group’s total loan loss provision was principally driven by the
Group’s smaller-balance standardized homogeneous loan portfolio.
The Group’s individually assessed loan loss allowance was € 930 million as of December 31, 2007, a decrease
of € 55 million, or 6 %, from 2006. The change is comprised of net charge-offs of € 149 million, a decrease of
€ 52 million as a result of exchange rate changes and unwinding effects and a provision of € 146 million, an
increase of € 130 million over the previous year. The individually assessed loan loss allowance was the largest
component of the Group’s total allowance for loan losses.
The Group’s collectively assessed loan loss allowance totaled € 775 million as of December 31, 2007, a
€ 91 million increase from the level at the end of 2006, almost fully driven by the Group’s smaller-balance
standardized homogeneous loan portfolio.
The Group’s allowance for loan losses as of December 31, 2006 was € 1.7 billion, a 9 % decrease from the
€ 1.8 billion reported for the beginning of 2006. The reduction in the Group’s allowance was principally due to
charge-offs exceeding the Group’s provisions.