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 70
Asset and Wealth Management Corporate Division
The following table sets forth the results of our Asset and Wealth Management Corporate Division (AWM) 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:
Discretionary portfolio/fund management (AM) 1,733 1,562 1,859
Discretionary portfolio/fund management (PWM) 515 264 320
Total discretionary portfolio/fund management 2,247 1,826 2,179
Advisory/brokerage 857 689 878
Credit products 383 255 166
Deposits and payment services 138 169 191
Other products 282 (255) (159)
Total net revenues 3,907 2,685 3,254
Provision for credit losses 43 17 15
Total noninterest expenses 3,765 2,475 3,793
therein:
Policyholder benefits and claims – – 18
Impairment of intangible assets – (291) 580
Restructuring activities – – –
Noncontrolling interests (1) (7) (20)
Income (loss) before income taxes 100 200 (534)
Cost/income ratio 96 % 92 % 117 %
Assets 65,508 43,761 50,473
Average active equity 1 6,737 4,791 4,870
Pre-tax return on average active equity 1 % 4 % (11) %
Invested assets 2 (in € bn.) 873 686 628
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.
2 We define invested assets as (a) assets we hold on behalf of customers for investment purposes and/or (b) client assets that are managed by us. We manage
invested assets on a discretionary or advisory basis, or these assets are deposited with us.
Comparison between 2010 and 2009
For the year 2010, AWM reported net revenues of € 3.9 billion, up € 1.2 billion, or 46 %, compared to 2009. The
increase included € 646 million attributable to the acquisition of Sal. Oppenheim/BHF-BANK in Private Wealth
Management (PWM), which are reflected in revenues from discretionary portfolio management/fund management
(up € 250 million or 95 %), credit products (up € 128 million, or 50 %) and other products (up € 537 million from
negative € 255 million in 2009). Revenues in AWM also grew due to higher asset based fees and performance
fees in Asset Management’s (AM) discretionary portfolio management/fund management (up € 171 million, or
11 %). In addition, Advisory/brokerage revenues (up € 168 million, or 24 %) benefitted from higher client activity
and an improved market environment. Deposits and payment services revenues decreased by € 31 million, or
18 %, mainly reflecting lower margins.
Provision for credit losses was € 43 million in 2010, an increase of € 27 million compared to 2009, mainly attributable
Sal. Oppenheim/BHF-BANK.
Noninterest expenses in 2010 were € 3.8 billion, an increase of € 1.3 billion, or 52 %, compared to 2009. This
development included the reversal of an impairment charge on intangible assets of € 291 million in AM in 2009,
which related to DWS Investments in the U.S. (formerly DWS Scudder). In addition, noninterest expenses in 2010
included € 986 million related to Sal. Oppenheim/BHF-BANK.