entire - Deutsche Bank Annual Report 2012

Deutsche Bank
Annual Review 2010
I
International Financial Reporting
Standards ( IFRS )
Financial Reporting Rules of the International
Accounting Standards Board to
ensure globally transparent and comparable
accounting and disclosure. Main
objective is to present information that is
useful in making economic decis ions,
mainly for investors.
Investment banking
Generic term for capital market-oriented
business. This primarily includes the
issuing and trading of securities and their
derivatives, interest and currency
manage ment, corporate fi nance, M & A
advisory, structured fi nance and
private equity.
Investor relations
Investor relations describes the systematic
and continuous two-way communication
between companies and both current and
potential providers of capital. Information
is supplied on major corporate events,
fi nancial results, business strategy and
the capital market’s expectations of
management. One objective of investor
relations activities is to ensure that a
company’s equity is appropriately valued
by the market.
L
Leveraged buy-out
Debt-fi nanced purchase of all or parts of
a company or specifi c activities of a
company. Interest and principal payments
are fi nanced from the acquired company’s
future revenues.
04 – Further Information
Glossary
M
Management buyout
Purchase of a company’s entire outstanding
shares by its management,
thereby ending the company’s listing.
Mezzanine
Flexible, mixed form of fi nancing
comprising equity and debt capital.
Mortgage-backed securities ( MBS )
Securities backed by mortgage loans.
Sub-categories are residential mort gagebacked
securities ( RMBS ) and commercial
mortgage-backed securities ( CMBS ).
O
Option
Right to purchase ( call option ) or sell ( put
option ) a specifi c asset ( e.g. security or
foreign exchange ) from or to a counterparty
( option seller ) at a predetermined
price on or before a specifi c future date.
OTC derivatives
Nonstandardized fi nancial instruments
( derivatives ) not traded on a stock
exchange, but directly between market
participants ( over the counter ).
P
Portfolio
Part or all of one or all categories of assets
( e.g. securities, loans, equity invest ments
or real estate ). Portfolios are formed
primarily to diversify risk.
Portfolio management
Management and administration of a
portfolio of securities for a client. This
can involve the continous review of the
portfolio and, if agreed with the client,
purchases and sales.
Pre-tax return on average active equity
Income before income tax expense
attributable to Deutsche Bank shareholders
( annualized ), which is defi ned
as income before income taxes less
minority interest, as a percentage of
average active equity.
Prime services / brokerage
Suite of products including clearing
and settlement, custody, reporting and
fi nancing of positions for institutional
investors.
69
Private equity
Equity investment in non-listed companies.
Examples are venture capital and buyout
funds.
Q
Quantitative investments
Portfolios of equities, bonds as well as
hedge funds. Portfolios are managed in
a systematic and regulated framework
applying fundamental investment
principles. The choice of investment is
determined by the processing of large
data volumes while applying quantitative
methods and techniques.
R
Rating
External: standardized evaluation of issuers’
credit standing and debt instruments,
carried out by specialized agencies.
Internal: detailed risk assessment of every
exposure associated with an obligor.