entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 14
Financial Report 2010 Operating and Financial Review
Noninterest Expenses
The following table sets forth information on our noninterest expenses.
2010 increase (decrease)
from 2009
in € m.
(unless stated otherwise) 2010 2009 in € m. in %
Compensation and benefits 12,671 11,310 1,361 12
General and administrative expenses 1 10,133 8,402 1,731 21
Policyholder benefits and claims 485 542 (57) (11)
Impairment of intangible assets 29 (134) 163 N/M
Restructuring activities – – – N/M
Total noninterest expenses 23,318 20,120 3,198 16
N/M – Not meaningful
1 includes:
2010 2009 in € m. in %
IT costs 2,274 1,759 515 29
Occupancy, furniture and equipment expenses 1,665 1,457 208 14
Professional service fees 1,616 1,088 528 49
Communication and data services 785 672 113 17
Travel and representation expenses 558 408 150 37
Payment, clearing and custodian services 418 406 12 3
Marketing expenses 341 278 63 23
Other expenses 2,476 2,334 142 6
Total general and administrative expenses 10,133 8,402 1,731 21
Compensation and benefits. In the full year 2010, compensation and benefits were up by € 1.4 billion, or 12 %,
compared to 2009. The increase included € 660 million related to the acquisitions in 2010. In addition, the
increase reflected higher amortization expenses for deferred compensation consequent to changes in compensation
structures, mainly with respect to an increase in the proportion of deferred compensation, including
the impact of accelerated amortization for employees eligible for career retirement.
General and administrative expenses. General and administrative expenses increased by € 1.7 billion versus
2009, reflecting € 1.0 billion from the acquisitions in 2010 including higher professional service fees. The
remainder of the increase was due to the impact of foreign exchange movements as well as to higher investment
spend in our IT platform and in business growth in 2010. The increase also included higher operating
costs related to our consolidated investments, particularly The Cosmopolitan of Las Vegas property, which
commenced operations in December 2010. General and administrative expenses in 2009 included € 316 million
from a legal settlement with Huntsman Corp. and € 200 million related to our offer to repurchase certain products
from private investors.
Policyholder benefits and claims. Policyholder benefits and claims in 2010 were € 485 million, a decrease of
€ 57 million compared to the prior year, resulting primarily from our Abbey Life business. These insurance-related
charges are offset by related net gains on financial assets/liabilities at fair value through profit or loss.