entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 29
Financial Report 2010 Operating and Financial Review
Also, interest-earning deposits with banks almost doubled from year-end 2009 to year-end 2010, primarily to
support our liquidity reserve.
Total liabilities were up by € 393 billion to € 1,855 billion.
The main driver of the growth in total liabilities were deposits, which increased by € 190 billion, significantly
impacted by our acquisitions adding € 146 billion or 77 % to this position.
Negative market values from derivatives were up by € 70 billion, also primarily driven by currency translation
effects and new acquisitions.
Equity
As of December 31, 2010, total equity was € 50.4 billion, an increase of € 12.4 billion, or 33 %, compared to
€ 38.0 billion as of December 31, 2009. The main factors contributing to this development were a capital
increase of € 10.1 billion (after expenses of approximately € 0.1 billion), net income attributable to Deutsche
Bank shareholders of € 2.3 billion and net gains recognized in accumulated other comprehensive income of
€ 1.2 billion, partly offset by cash dividends paid of € 465 million and an increase in of € 403 million in our treasury
shares which are deducted from equity. The aforementioned net gains recognized in accumulated other
comprehensive income were mainly driven by positive effects from exchange rate changes of € 1.2 billion
(especially in the U.S. dollar).
Regulatory Capital
Total regulatory capital (Tier 1 and 2 capital) reported under Basel II was € 48.7 billion at the end of 2010 compared
to € 37.9 billion at the end of 2009, reflecting primarily the completion of the € 10.2 billion capital increase
in the fourth quarter and our acquisitions in 2010. Tier 1 capital increased to € 42.6 billion at the end of 2010
versus € 34.4 billion at the end of 2009. As of 31 December 2010, Core Tier 1 capital increased to € 30.0 billion
from € 23.8 billion in 2009.
Update on Key Credit Market Exposures
The following is an update on the development of certain credit positions (including protection purchased from
monoline insurers) of those CB&S businesses on which we have previously provided additional risk disclosures.
These positions were those that significantly impacted the performance of CB&S during the recent financial
crisis. In addition to these CB&S positions, we have also provided information about positions acquired from
Postbank where relevant.