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 61
Other income (loss). Total Other income (loss) was a gain of € 764 million in 2010 versus a loss of € 183 million
in 2009. The development was mainly driven by significantly reduced impairments on The Cosmopolitan of Las
Vegas, higher results from derivatives qualifying for hedge accounting and a gain representing negative goodwill
related to the commercial banking activities acquired from ABN AMRO in the Netherlands.
Noninterest Expenses
The following table sets forth information on our noninterest expenses.
in € m.
(unless stated otherwise) 2010 2009 2008
2010 increase (decrease)
from 2009
2009 increase (decrease)
from 2008
in € m. in % in € m. in %
Compensation and benefits 12,671 11,310 9,606 1,361 12 1,704 18
General and administrative expenses 1 10,133 8,402 8,339 1,731 21 63 1
Policyholder benefits and claims 485 542 (252) (57) (11) 794 N/M
Impairment of intangible assets 29 (134) 585 163 N/M (719) N/M
Restructuring activities – – – – N/M – N/M
Total noninterest expenses 23,318 20,120 18,278 3,198 16 1,842 10
N/M – Not meaningful
1
includes:
2010 2009 2008 in € m. in % in € m. in %
IT costs
Occupancy, furniture and equipment
2,274 1,759 1,818 515 29 (59) (3)
expenses 1,665 1,457 1,434 208 14 23 2
Professional service fees 1,616 1,088 1,164 528 49 (76) (7)
Communication and data services 785 672 698 113 17 (26) (4)
Travel and representation expenses 558 408 504 150 37 (96) (19)
Payment, clearing and custodian services 418 406 415 12 3 (9) (2)
Marketing expenses 341 278 373 63 23 (95) (25)
Other expenses 2,476 2,334 1,933 142 6 401 21
Total general and administrative expenses 10,133 8,402 8,339 1,731 21 63 1
Compensation and benefits. In the full year 2010, compensation and benefits were up by € 1.4 billion, or 12 %,
compared to 2009. The increase included € 660 million related to the acquisitions in 2010. In addition, the
increase reflected higher amortization expenses for deferred compensation consequent to changes in compensation
structures, mainly with respect to an increase in the proportion of deferred compensation, including
the impact of accelerated amortization for employees eligible for career retirement.
General and administrative expenses. General and administrative expenses increased by € 1.7 billion versus
2009, reflecting € 1.0 billion from the acquisitions in 2010 including higher professional service fees. The remainder
of the increase was due to the impact of foreign exchange movements as well as to higher investment
spend in our IT platform and in business growth in 2010. The increase also included higher operating costs
related to our consolidated investments, particularly The Cosmopolitan of Las Vegas property, which commenced
operations in December 2010. General and administrative expenses in 2009 included € 316 million from a legal
settlement with Huntsman Corp. and € 200 million related to our offer to repurchase certain products from private
investors.
Policyholder benefits and claims. Policyholder benefits and claims in 2010 were € 485 million, a decrease of
€ 57 million compared to the prior year, resulting primarily from our Abbey Life business. These insurancerelated
charges are offset by related net gains on financial assets/liabilities at fair value through profit or loss.
Impairment of intangible assets. In 2010, an impairment charge of € 29 million on intangible assets relating to
the client portfolio of an acquired domestic custody services business was recorded in GTB. In 2009, a rever