entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 10
Financial Report 2010 Operating and Financial Review
Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss
The following table sets forth data related to our Net gains (losses) on financial assets/liabilities at fair value
through profit or loss.
in € m.
(unless stated otherwise) 2010 2009
2010 increase (decrease)
from 2009
in € m. in %
CIB – Sales & Trading (equity) 451 1,125 (674) (60)
CIB – Sales & Trading (debt and other products) 2,912 4,130 (1,218) (29)
Other (9) 1,854 (1,863) N/M
Total net gains (losses) on financial assets/
liabilities at fair value through profit or loss 3,354 7,109 (3,755) (53)
N/M – Not meaningful
Net gains on financial assets/liabilities at fair value through profit or loss decreased by € 3.8 billion, particularly
offset by increases in net interest income. In Sales & Trading (debt and other products), Net gains on financial
assets/liabilities at fair value through profit or loss were € 2.9 billion in 2010, compared to € 4.1 billion in 2009.
This decrease was mainly driven by Money Markets, Rates and Emerging Markets due to less favorable market
conditions compared to 2009. Partly offsetting were lower mark-downs from legacy positions in Credit Trading. In
Sales & Trading (equity), net gains (losses) on financial assets/liabilities at fair value through profit or loss were
gains of € 451 million in 2010, compared to € 1.1 billion in 2009. This decline was mainly driven by Cash Trading,
as client activity decreased, partly offset by lower trading losses in Equity derivatives. In other products, net
gains on financial assets/liabilities at fair value through profit or loss in 2010 were negative € 9 million, compared
to positive € 1.9 billion in 2009. The decrease reflects higher gains related to our stake in Postbank recognized
in CI in 2009, gains from derivative contracts used to hedge effects on shareholders’ equity, resulting
from obligations under share-based compensation plans, recorded in C&A in 2009, and mark-to-market losses
on new loans and loan commitments held at fair value from Loan Products in CIB.
Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through
Profit or Loss
Our trading and risk management businesses include significant activities in interest rate instruments and related
derivatives. Under IFRS, interest and similar income earned from trading instruments and financial instruments
designated at fair value through profit or loss (e.g., coupon and dividend income), and the costs of funding net
trading positions are part of net interest income. Our trading activities can periodically shift income between net
interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss depending
on a variety of factors, including risk management strategies.
In order to provide a more business-focused discussion, the following table presents net interest income and
net gains (losses) on financial assets/liabilities at fair value through profit or loss by group division and by product
within the Corporate & Investment Bank.