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 62
sal of an impairment charge on intangible assets of € 291 million was recorded in AM, related to DWS Investments
in the U.S. (formerly DWS Scudder). This positive effect was partly offset by goodwill impairment
charges of € 151 million, which were related to a consolidated RREEF infrastructure investment.
Income Tax Expense
The income tax expense of € 1.6 billion recorded for 2010 was impacted by the Postbank related charge of
€ 2.3 billion, which did not have a corresponding tax benefit. This was partly offset by improved U.S. income
tax positions and a favorable geographic mix of income. By contrast, income tax expense in 2009 of € 244 million
benefited from the recognition of previously unrecognized deferred tax assets in the U.S and favorable outcomes
of tax audit settlements. The effective tax rates were 41.4 % in 2010 and 4.7 % in 2009.
Results of Operations by Segment (2010 vs. 2009)
The following is a discussion of the results of our business segments. See Note 05 “Business Segments and
Related Information” to the consolidated financial statements for information regarding
— our organizational structure;
— effects of significant acquisitions and divestitures on segmental results;
— changes in the format of our segment disclosure;
— the framework of our management reporting systems;
— consolidating and other adjustments to the total results of operations of our business segments, and
— definitions of non-GAAP financial measures that are used with respect to each segment.
The criterion for segmentation into divisions is our organizational structure as it existed at December 31, 2010.
Segment results were prepared in accordance with our management reporting systems.
2010
in € m.
(unless stated otherwise)
Corporate &
Investment
Bank
Private
Clients and
Asset
Management
Corporate
Investments
Total
Management
Reporting
Consolidation
&
Adjustments
Total
Consolidated
Net revenues 20,929 1 10,043 (2,020) 2
28,953 (386) 28,567
Provision for credit losses 488 789 (4) 1,273 0 1,274
Total noninterest expenses
therein:
14,422 8,258 637 23,318 1 23,318
Policyholder benefits and claims 486 (0) – 485 – 485
Impairment of intangible assets 29 – – 29 – 29
Restructuring activities – – – – – –
Noncontrolling interests 20 6 (2) 24 (24) –
Income (loss) before income taxes 5,999 989 (2,649) 4,339 (363) 3,975
Cost/income ratio 69 % 82 % N/M 81 % N/M 82 %
Assets 3 1,519,983 412,477 17,766 1,894,282 11,348 1,905,630
Average active equity 4 18,644 10,635 4,168 33,446 7,907 41,353
Pre-tax return on average active equity 5 N/M – Not meaningful
32 % 9 % (64) % 13 % N/M 10 %
1 Includes a gain from the recognition of negative goodwill related to the acquisition of the commercial banking activities of ABN AMRO in the Netherlands of
€ 208 million as reported in the second quarter 2010 which is excluded from the Group’s target definition.
2 Includes a charge related to the investment in Deutsche Postbank AG of € 2,338 million, which is excluded from the Group’s target definition.
3 The sum of corporate divisions does not necessarily equal the total of the corresponding group division because of consolidation items between corporate divisions,
which are to be eliminated on group division level. The same approach holds true for the sum of group divisions compared to ‘Total Consolidated’.
4 For management reporting purposes goodwill and other intangible assets with indefinite lives are explicitly assigned to the respective divisions. Average active equity
is first allocated to divisions according to goodwill and intangible assets; remaining average active equity is allocated to divisions in proportion to the economic capital
calculated for them.
5 For the calculation of pre-tax return on average active equity please refer to Note 05 “Business Segments and Related Information”. For ‘Total consolidated’, pre-tax
return on average shareholders’ equity is 10 %.