entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 85
Financial Report 2010 Risk Report
The following table sets forth a breakdown of the movements in our allowance for loan losses specifically for
charge-offs and recoveries, including, with respect to our German loan portfolio, by industry classifications for
the periods specified. The breakdown between German and non-German borrowers is based on the country of
domicile of our borrowers.
in € m.
(unless stated otherwise) 2010 2009
Balance, beginning of year 3,343 1,938
Charge-offs:
German:
Banks and insurance (5) (2)
Fund management activities – –
Manufacturing (43) (43)
Wholesale and retail trade (32) (23)
Households (excluding mortgages) (338) (340)
Households – mortgages (26) (23)
Commercial real estate activities (22) (6)
Public sector – –
Other (49) (72)
German total (515) (509)
Non-German total (928) (713)
Total charge-offs (1,443) (1,222)
Recoveries:
German:
Banks and insurance 1 1
Fund management activities – –
Manufacturing 14 11
Wholesale and retail trade 6 7
Households (excluding mortgages) 63 83
Households – mortgages 4 1
Commercial real estate activities 4 7
Public sector – –
Other 20 25
German total 112 135
Non-German total 31 31
Total recoveries 143 166
Net charge-offs (1,300) (1,056)
Provision for loan losses 1,313 2,597
Other changes (e.g. exchange rate changes, changes in the group of consolidated companies) (60) (137)
Balance, end of year 3,296 3,343
Percentage of total net charge-offs to average loans for the year 0.45 % 0.39 %
Our allowance for loan losses as of December 31, 2010 was € 3.3 billion, a 1 % decrease from prior year end.
The decrease in our allowance was principally due to charge-offs, reductions resulting from currency translation
and unwinding effects exceeding our provisions.
Our net charge-offs amounted to € 1.3 billion in 2010. Of the charge-offs for 2010, € 896 million were related to
our corporate credit exposure, of which € 607 million were related to assets which had been reclassified in
accordance with IAS 39 in our United Kingdom and Asia-Pacific portfolios, and € 404 million to our consumer
credit exposure, mainly driven by our German portfolios.