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 68
Global Transaction Banking Corporate Division
The following table sets forth the results of our Global Transaction Banking Corporate Division (GTB) for the
years ended December 31, 2010, 2009 and 2008, in accordance with our management reporting systems.
in € m.
(unless stated otherwise) 2010 2009 2008
Net revenues:
Transaction services 3,223 2,609 2,784
Other products 216 – –
Total net revenues 3,439 2,609 2,784
Provision for credit losses 140 27 5
Total noninterest expenses 2,394 1,788 1,646
therein:
Restructuring activities – – –
Impairment on intangible assets 29
Noncontrolling interests – – –
Income (loss) before income taxes 905 795 1,132
Cost/income ratio 70 % 69 % 59 %
Assets 71,877 47,414 49,469
Average active equity 1 1,548 1,160 1,081
Pre-tax return on average active equity 58 % 68 % 105 %
1 See Note 05 “Business Segments and Related Information” to the consolidated financial statements for a description of how average active equity is allocated to the
divisions.
Comparison between 2010 and 2009
GTB’s net revenues were a record € 3.4 billion, an increase of 32 %, or € 830 million, compared to 2009. Even
excluding the impact of the commercial banking activities acquired from ABN AMRO in the Netherlands, which
included a gain of € 216 million related to negative goodwill resulting from the first-time consolidation of the
acquired activities in 2010, GTB generated record revenues. This strong performance was predominantly attributable
to growth in fee income in Trust & Securities Services, Trade Finance, and Cash Management offsetting
the impact of the continuing low interest rate environment, mainly affecting the latter business. Trust & Securities
Services benefitted from positive business momentum, especially in Asia in the fourth quarter.
Provision for credit losses was € 140 million. The increase of € 113 million versus 2009 was primarily related to
the commercial banking activities acquired from ABN AMRO.
Noninterest expenses were € 2.4 billion, an increase of 34 %, or € 606 million, compared to 2009. The increase
was mainly driven by operating and integration costs related to the commercial banking activities acquired from
ABN AMRO, and significant severance expenses of € 130 million in the fourth quarter related to specific measures
associated with the realignment of infrastructure areas and sales units.