entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 117
Financial Report 2010 Risk Report
Operational risk economic capital usage increased by € 189 million, or 5 %, to € 3.7 billion as of December 31,
2010. The increase is fully explained by acquisitions.
Our economic capital usage for business risk, consisting of a strategic risk and a tax risk component, totaled
€ 1.1 billion as of December 31, 2010. The strategic risk economic capital usage increase of € 450 million was
primarily attributable to the Postbank acquisition resulting in an economic capital usage of € 400 million.
The diversification effect of the economic capital usage across credit, market and operational risk increased by
€ 368 million, or 12 %, as of December 31, 2010.
The table below shows the economic capital usage of our business segments for the dates specified.
in € m. Dec 31, 2010 Dec 31, 2009
Corporate & Investment Bank 16,119 11,974
Corporate Banking & Securities 14,828 11,242
Global Transaction Banking 1,291 732
Private Clients and Asset Management 9,394 4,434
Asset and Wealth Management 2,717 1,878
Private & Business Clients 6,677 2,556
Corporate Investments 902 4,641
Consolidation & Adjustments 762 (253)
Total economic capital usage 27,178 20,796
The future allocation of economic capital may change to reflect refinements in our risk measurement methodology.
A primary measure we use to assess our risk bearing capacity is a ratio of our active book equity divided by
the economic capital usage (shown in the above table) plus goodwill and intangibles (€ 42.8 billion and
€ 31.0 billion as of December 31, 2010 and 2009, respectively). Active book equity, which was € 48.4 billion
and € 36.4 billion as of December 31, 2010 and 2009, respectively, is calculated by adjusting total shareholders’
equity for unrealized net gains (losses) on financial assets available for sale and on cash flow hedges as
well as for accrued future dividends (for a reconciliation, please refer to Note 36 “Regulatory Capital” of the
consolidated financial statements). A ratio of more than 100 % signifies that the active book equity adequately
covers the aforementioned risk positions. This ratio was 113 % as of December 31, 2010, compared to 118 %
as of December 31, 2009, as effects from the increase in economic capital and goodwill overcompensated the
increase of active book equity, which was primarily attributable to the capital raise related to Postbank, retained
earnings and foreign exchange effects.