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 59
income and net gains (losses) on financial assets/liabilities at fair value through profit or loss increased by
€ 317 million. This increase was attributable to growth across all businesses in Global Transaction Banking
(including the aforementioned acquisition). Remaining products increased by € 97 million, mainly in Origination
& Advisory.
Private Clients and Asset Management (PCAM). Combined net interest income and net gains (losses) on
financial assets/liabilities at fair value through profit or loss were € 4.7 billion in 2010, an increase of € 550 million,
or 13 %, compared to 2009. The increase was mainly driven by the first-time consolidation of Postbank. In
addition, the increase included higher net interest income from Credit products as well as from Deposits and
Payment services.
Corporate Investments (CI). Combined net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss were negative € 184 million in 2010, compared to positive
€ 793 million in 2009. The development primarily reflects the non-recurrence of gains recorded in 2009
related to our minority stake in Postbank.
Consolidation & Adjustments. Combined net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss were € 331 million in 2010, compared to € 649 million in 2009. The
main reason for the decrease were gains recorded in 2009 from derivative contracts used to hedge effects on
shareholders’ equity, resulting from obligations under share-based compensation plans, and higher net interest
income on non-divisionalized assets and liabilities, including taxes.
Provision for Credit Losses
Provision for credit losses was € 1.3 billion in 2010, versus € 2.6 billion in 2009. The provision in CIB was
€ 488 million, versus € 1.8 billion in the prior year, primarily reflecting a significant decrease in the provision for
assets reclassified in accordance with IAS 39. The provision in PCAM was € 789 million, including € 56 million
from Postbank. Excluding Postbank, the provision was € 733 million, versus € 806 million in the prior year. The
development was influenced by measures taken on portfolio and country level. Provision for credit losses in
2009 was positively impacted by changes in certain parameter and model assumptions, which reduced the
provision by € 87 million in CIB and by € 146 million in PCAM.
For further information on the provision for loan losses see “Item 11: Quantitative and Qualitative Disclosures
about Credit, Market and Other Risk – Credit Risk – Movements in the Allowance for Loan Losses”.