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 78
Noninterest expenses in 2009 were € 2.5 billion, a decrease of € 1.3 billion, or 35 %, compared to 2008. This
development included the reversal of an impairment charge on intangible assets of € 291 million in AM, related
to DWS Investments in the U.S. (formerly DWS Scudder), which had been taken in 2008. In addition, noninterest
expenses in 2008 were negatively affected by a goodwill impairment of € 270 million in a consolidated RREEF
infrastructure investment (transferred to Corporate Investments in 2009). Higher severance payments compared
to 2008, reflecting our continued efforts to reposition our platform, were partly offset by the non-recurrence of
an € 98 million provision related to the obligation to repurchase Auction Rate Preferred (“ARP”) securities/Auction
Rate Securities (“ARS”) at par from retail clients following a settlement in the U.S. in 2008.
Invested assets in AWM were € 686 billion at December 31, 2009, an increase of € 58 billion compared to
December 31, 2008. In AM, invested assets increased by € 33 billion mainly due to market appreciation and
net new money of € 9 billion. Invested assets in PWM increased by € 25 billion, also predominantly resulting
from market appreciation and net new money of € 7 billion.
Private & Business Clients Corporate Division
Net revenues were € 5.6 billion, down € 201 million, or 3 %, versus 2008. Discretionary portfolio/fund management
revenues remained virtually unchanged compared to 2008. Advisory/brokerage revenues decreased by
€ 326 million, or 28 %, mainly reflecting wariness on the part of retail investors in the wake of market turbulence
in the fourth quarter 2008. Credit products revenues increased by € 285 million, or 14 %, resulting from higher
loan volumes and margins, partly offset by lower deposit margins. Deposits and payment services revenues
decreased by € 71 million, or 4 %, mainly driven by lower revenues related to insurance products sales. Revenues
from Other products of € 422 million in 2009 decreased by € 91 million, or 18 %, mainly driven by the nonrecurrence
of a post-IPO dividend income from a co-operation partner and subsequent gains related to the
disposal of a business, both recorded in 2008.
Provision for credit losses was € 790 million, an increase of € 136 million, or 21 %, compared to 2008. This
development reflects the continued deterioration of the credit environment in Spain and Poland, and generally
higher credit costs in the other regions, partly offset by releases and lower provisions of € 146 million in 2009
related to certain revised parameter and model assumptions.
Noninterest expenses of € 4.3 billion were € 150 million, or 4 %, higher than in 2008. This increase was predominantly
driven by higher severance payments of € 192 million, up from € 84 million in 2008, related to measures
to improve our efficiency.
Invested assets were € 194 billion as of December 31, 2009, an increase of € 5 billion compared to December
31, 2008, mainly driven by market appreciation, amounting to € 10 billion, partly offset by outflows reflecting
maturities in time deposits, which were acquired in the fourth quarter of 2008.
The number of clients in PBC was 14.6 million at year end 2009, unchanged compared to December 31, 2008.
Corporate Investments Group Division
Net revenues were € 1.0 billion, a decrease of € 245 million compared to 2008. Net revenues in 2009 included
three significant components which were related to Postbank: mark-to-market gains of € 476 million from our
derivatives related to the acquisition of shares, mark-to-market gains of € 352 million from the put/call options
to increase our investment and a positive equity pick-up of € 200 million. In addition, net revenues in 2009
included mark-to-market gains of € 83 million from our option to increase our share in Hua Xia Bank Co. Ltd.
and gains of € 302 million from the sale of industrial holdings (mainly related to Daimler AG and Linde AG).
These positive items were partly offset by impairment charges of € 302 million on our industrial holdings and