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 71
Invested assets in AWM were € 873 billion at December 31, 2010, an increase of € 188 billion compared to
December 31, 2009. The increase included € 112 billion from the acquisition of Sal. Oppenheim/BHF-BANK
(€ 68 billion related to Sal. Oppenheim and € 45 billion related to BHF-BANK). The remaining increase was
mainly driven by market appreciation and the weakening of the Euro. AWM recorded in 2010 net outflows of
€ 2.5 billion, mainly driven by cash outflows in the Americas, which were largely offset by inflows in Europe and
in insurance in the Americas.
Private & Business Clients Corporate Division
The following table sets forth the results of our Private & Business Clients Corporate Division (PBC) 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 313 257 255
Advisory/brokerage 887 841 1,167
Credit products 2,325 2,350 2,065
Deposits and payment services 1,891 1,706 1,777
Other products 720 422 513
Total net revenues 6,136 5,576 5,777
Provision for credit losses 746 790 653
Total noninterest expenses 4,493 4,328 4,178
therein:
Restructuring activities – – –
Noncontrolling interests 8 0 0
Income (loss) before income taxes 890 458 945
Cost/income ratio 73 % 78 % 72 %
Assets 346,998 131,014 138,350
Average active equity 1 3,897 3,617 3,445
Pre-tax return on average active equity 23 % 13 % 27 %
Invested assets 2 (in € bn.) 306 194 189
Loan volume (in € bn.) 255 96 91
Deposit volume (in € bn.) 229 109 118
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
Net revenues were € 6.1 billion, up € 560 million, or 10 %, versus 2009. Revenues in 2010 included the first-time
consolidation of Postbank, which began on December 3, 2010. This resulted in additional net revenues of
€ 414 million, recorded in the interim in revenues from other products. Thus, Postbank was the main contributor
for the increase of € 298 million, or 71 %, in revenues from other products, partly offset by lower revenues from
PBC’s Asset and liability management function. Revenues from discretionary portfolio management/fund management
revenues increased by € 56 million, or 22 %, and Advisory/brokerage revenues by € 46 million, or 5 %.
Both products benefited from increased activity of retail investors in more favorable market conditions, as well
as higher revenues related to insurance products sales. Credit products revenues were down by € 25 million or
1 % driven by lower margins. Deposits and payment services revenues increased by € 185 million, or 11 %,
mainly driven by improved deposit margins.
Provision for credit losses was € 746 million, of which € 56 million related to Postbank. Excluding Postbank,
provision for credit losses decreased by € 100 million, or 13 %, compared to 2009, mainly attributable to measures
taken on portfolio and country level.