SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank
Annual Report 2010 on Form 20-F
Item 5: Operating and Financial Review and Prospects 58
Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through
Profit or Loss
Our trading and risk management businesses include significant activities in interest rate instruments and
related derivatives. Under IFRS, interest and similar income earned from trading instruments and financial
instruments designated at fair value through profit or loss (e.g., coupon and dividend income), and the costs of
funding net trading positions are part of net interest income. Our trading activities can periodically shift income
between net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or
loss depending on a variety of factors, including risk management strategies.
In order to provide a more business-focused discussion, the following table presents net interest income and
net gains (losses) on financial assets/liabilities at fair value through profit or loss by group division and by product
within the Corporate & Investment Bank.
in € m.
(unless stated otherwise) 2010 2009 2008
2010 increase (decrease)
from 2009
2009 increase (decrease)
from 2008
in € m. in % in € m. in %
Net interest income 15,583 12,459 12,453 3,124 25 6 0
Total net gains (losses) on financial assets/
liabilities at fair value through profit or loss 3,354 7,109 (9,992) (3,755) (53) 17,101 N/M
Total net interest income and net gains
(losses) on financial assets/liabilities
at fair value through profit or loss 18,937 19,568 2,461 (631) (3) 17,107 N/M
Breakdown by Group Division/CIB product: 1
Sales & Trading (equity) 2,266 2,047 (1,895) 218 11 3,942 N/M
Sales & Trading (debt and other products) 9,204 9,725 409 (521) (5) 9,315 N/M
Total Sales & Trading 11,469 11,772 (1,486) (302) (3) 13,258 N/M
Loan products 2 778 777 922 1 0 (145) (16)
Transaction services 1,497 1,180 1,368 317 27 (188) (14)
Remaining products 3 336 240 (1,821) 97 40 2,061 N/M
Total Corporate & Investment Bank 14,081 13,969 (1,017) 112 1 14,986 N/M
Private Clients and Asset Management 4,708 4,157 3,861 550 13 297 8
Corporate Investments (184) 793 (172) (977) N/M 965 N/M
Consolidation & Adjustments 331 649 (211) (317) (49) 859 N/M
Total net interest income and net gains
(losses) on financial assets/liabilities
at fair value through profit or loss 18,937 19,568 2,461 (631) (3) 17,107 N/M
N/M – Not meaningful
1 This breakdown reflects net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss only. For a discussion of the group
divisions’ total revenues by product please refer to “Results of Operations by Segment”.
2 Includes the net interest spread on loans as well as the fair value changes of credit default swaps and loans designated at fair value through profit or loss.
3 Includes net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss of origination, advisory and other products.
Corporate & Investment Bank (CIB). Combined net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss from Sales & Trading were € 11.5 billion in 2010, compared to
€ 11.8 billion in 2009. The main driver for the decrease were lower revenues in Money Markets and Rates mainly
due to lower bid-offer spreads and subdued client activity as a result of sovereign risk concerns. In addition, net
interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss were down
in Emerging Markets, due to less favorable market conditions compared to 2009. Partly offsetting these decreases
were lower mark-downs from legacy positions and lower trading losses in Equity Derivatives in 2010 compared
to 2009. Loan products were virtually unchanged, while in Transaction services, combined net interest