entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 75
Financial Report 2010 Risk Report
Consumer Credit Exposure
The table below presents our total consumer credit exposure, consumer loan delinquencies in terms of loans
that are 90 days or more past due, and net credit costs, which are the net provisions charged during the period,
after recoveries. Loans 90 days or more past due and net credit costs are both expressed as a percentage of
total exposure. Regardless of the past due status of the individual loans, in terms of credit quality the mortgage
lending and loans to small business customers within the consumer credit exposure are allocated to our lower
risk bucket while the consumer finance business is allocated to the moderate risk bucket. This credit risk quality
aspect is also reflected by our net credit costs expressed as a percentage of the total exposure supporting them,
which is the main credit risk management instrument for these exposures.
Total exposure
in € m.
Total exposure
excluding Postbank
in € m.
90 days or more past due
as a % of total exposure
excluding Postbank
Net credit costs
as a % of total exposure
excluding Postbank
Dec 31, 2010 Dec 31, 2010 Dec 31, 2009 Dec 31, 2010 Dec 31, 2009 Dec 31, 2010 Dec 31, 2009
Consumer credit exposure
Germany:
Consumer and small business
130,317 60,706 59,804 1.77 % 1.73 % 0.56 % 0.55 %
financing 19,055 12,733 13,556 3.16 % 2.72 % 1.92 % 1.69 %
Mortgage lending
Consumer credit exposure
111,262 47,973 46,248 1.41 % 1.44 % 0.20 % 0.22 %
outside Germany 38,713 33,027 29,864 3.84 % 3.37 % 0.86 % 1.27 %
Total consumer credit exposure 1 169,030 93,733 89,668 2.50 % 2.28 % 0.66 % 0.79 %
1 Includes impaired loans amounting to € 2.7 billion as of December 31, 2010 and € 2.3 billion as of December 31, 2009.
The volume of our consumer credit exposure increased due to the consolidation of Postbank by € 75.3 billion
or 89 %, mainly in German mortgage lending. As loans were consolidated at their fair values representing our
expected future cash flows, no consolidated loans were considered 90 days or more past due as of December
31, 2010. The net credit cost incurred on Postbank consumer credit loans since consolidation date were insignificant
compared to the consolidated loan volume. The volume of our consumer credit exposure excluding
Postbank rose by € 4 billion, or 4.5 %, from year end 2009 to December 31, 2010, driven by volume growth in
Germany (up € 902 million), Poland (up € 1,034 million), Italy (up € 949 million) and Portugal (up € 547 million),
mainly within mortgage lending. Measures taken on portfolio and country level lead to significant reduction of
net credit costs in Spain and India, partially offset by increases in our consumer finance business in Poland.
Revised parameter and model assumptions in 2009 led to a one-time release of loan loss allowance of € 60 million
in the first quarter 2009 as well as a lower level of provisions for credit losses of € 28 million for the first quarter
2010.