Notes to the income statement - comdirect bank AG

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Notes to the income statement
27 Net interest income
€ thousand 2011 2010 Change
in %
Interest income from fixed-income securities
held in the “available-for-sale” portfolio 115,205 113,535 1.5
Interest income from credit and money market transactions 152,576 96,711 57.8
Operating income from investments,
shares and other variable-yield securities 1,309 1,034 26.6
Interest income and similar income 269,090 211,280 27.4
Interest expenses for deposits 117,779 109,136 7.9
Balance of interest from derivative hedging instruments 394 63 525.4
Other interest expenses 70 7 900.0
Interest expenses 118,243 109,206 8.3
Total 150,847 102,074 47.8
Interest income and interest expenses for financial instruments measured in accordance with IAS 39 “At fair value
through profit or loss – sub-category: held for trading”, are reported under trading result (see note (31) Trading
result).
28 Provisions for possible loan losses
€ thousand Allowance Reversal Direct
writedowns
Provisions for possible loan losses for on-balance
Income
received on
writtendown
claims
sheet lending transactions 1,423 1,012 783 35 – 1,159
Claims on customers 1,423 994 783 35 – 1,177
– Significant lending business 0 4 0 0 4
– Non-significant lending business 1,423 990 783 35 – 1,181
Claims on banks 0 18 0 0 18
Provisions for credit risks 799 627 0 0 – 172
Total 2,222 1,639 783 35 – 1,331
Total
2011
€ thousand Allowance Reversal Direct
writedowns
Provisions for possible loan losses for on-balance
Income
received on
writtendown
claims
sheet lending transactions 1,453 1,768 788 12 – 461
Claims on customers 1,426 1,768 788 12 – 434
– Significant lending business 4 0 0 0 – 4
– Non-significant lending business 1,422 1,768 788 12 – 430
Claims on banks 27 0 0 0 – 27
Provisions for credit risks 805 1,012 0 0 207
Total 2,258 2,780 788 12 – 255
Total
2010

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29 Net commission income
€ thousand 2011 2010 Change
in %
Securities transactions 165,975 158,104 5.0
Payment transactions 9,600 7,957 20.6
Other commission 7,010 6,711 4.5
Total 182,585 172,772 5.7
30 Result from hedge accounting
The results shown from underlying and hedging instruments only include measurement effects from effective fair
value hedges.
€ thousand 2011 2010 Change
in %
Results from hedging instruments – 2,493 100 – 2,593.0
Results from hedged assets 2,542 – 122 – 2,183.6
Total 49 – 22 – 322.7
comdirect bank reports these in line with the hedge accounting regulations under IAS 39. Individual bonds
(hedged items) in the balance sheet line item “financial investments” are hedged against fluctuations in fair
value due to changes in market rates using interest rate swaps (hedging instruments).
31 Trading result
€ thousand 2011 2010 Change
in %
Result from interest rate related transactions – 1,128 0 –
Trading result – 1,128 0 –
All financial instruments in the trading portfolio are measured at fair value. The trading result includes all interest
income, interest expenses and measurement results for financial instruments measured in accordance with IAS
39 in the category “At fair value through profit or loss – sub-category: held for trading”.

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32 Result from financial investments
The disposal results and gains and losses from impairments and recoveries in the “available-for-sale” securities
portfolio and holdings in subsidiaries which have not been consolidated are shown in the result from financial
investments.
€ thousand 2011 2010 Change
in %
Disposal gains 3,415 14,453 – 76.4
Disposal losses – 6,518 – 4,120 58.2
Impairment – 2,886 – 414 597.1
Total – 5,989 9,919 – 160.4
Of impairments, €1,702 thousand (2010: €0) relates to bonds and other fixed-income securities and €1,184 thousand
(2010: €414 thousand) to shares and other non-fixed income securities.
33 Administrative expenses
The comdirect group’s administrative expenses consist of personnel expenses, other administrative expenses and
depreciation of office furniture and equipment as well as on intangible assets.
Personnel expenses
€ thousand 2011 2010 Change
in %
Wages and salaries 56,674 52,266 8.4
Compulsory social security contributions 9,115 8,816 3.4
Expenses for pensions and other employee benefits 1,676 1,481 13.2
Total 67,465 62,563 7.8
The item “wages and salaries” includes share-based payments (IFRS 2) totalling €2,013 thousand (2010: €1,521
thousand).
Breakdown of expenses for pensions and other employee benefits
€ thousand 2011 2010 Change
in %
Company pension scheme 1,406 1,409 – 0.2
Expenses for early retirement 248 52 376.9
Contributions to Versicherungsverein
des Bankgewerbes a.G. (BVV) 22 20 10.0
Total 1,676 1,481 13.2

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Other administrative expenses
€ thousand 2011 2010 Change
in %
Marketing expenses 57,208 53,021 7.9
Communication expenses 6,450 4,353 48.2
Consulting expenses 10,832 7,334 47.7
Expenses for external services 36,467 30,258 20.5
Sundry administrative expenses 36,920 38,438 – 3.9
Total 147,877 133,404 10.8
Sundry administrative expenses includes rental and lease payments for business premises as well as contributions
to the Deposit Protection Fund of €13,607 thousand.
Depreciation of office furniture and equipment and intangible assets
€ thousand 2011 2010 Change
in %
Office furniture and equipment 4,050 4,669 – 13.3
Intangible assets 12,682 9,392 35.0
Total 16,732 14,061 19.0
The depreciation on intangible assets includes an unexpected depreciation of €2,076 thousand.
34 Other operating result
€ thousand 2011 2010 Change
in %
Other operating income 20,910 14,217 47.1
Interest from tax refunds 9,232 0 –
Income from writing-back of provisions and accruals 4,079 4,619 – 11.7
Income from service level agreements 3,060 5,345 – 42.8
Project grants 1,267 1,899 – 33.3
Insurance payments 660 0 –
Income from other accounting period 892 830 7.5
Income from recoverable input taxes 581 195 197.9
Sundry income items 1,139 1,329 – 14.3
Other operating expenses 5,793 7,803 – 25.8
Goodwill payments and price differences in security
transactions 709 933 – 24.0
Non-income-related taxes including interest from
previous years 664 493 34.7
Losses on the disposal of fixed assets 0 109 – 100.0
Loan loss provisions and write-downs outside retail lending 682 99 588.9
Sundry expense items 3,738 6,169 – 39.4
Total 15,117 6,414 135.7
Due to a detailed presentation, the previous figures were adjusted accordingly.

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35 Taxes on income
€ thousand 2011 2010 Change
in %
Current taxes on income current year 30,641 21,031 45.7
Current taxes on income from previous years – 31,703 – 496 6,291.7
Deferred taxes – 2,625 705 – 472.3
Total – 3,687 21,240 – 117.4
Reconciliation of taxes on income
€ thousand 2011 2010
Profit from ordinary activities of comdirect bank AG and ebase GmbH 108,076 80,874
multiplied by the respective income tax rate for the company
= Calculated income tax paid in financial year 28,223 21,180
Effect of tax-free income from financial investments – 78 – 38
Effect of losses from financial investments; not tax deductible 750 308
Effect of taxes from previous years recognised in the financial year – 32,875 – 342
Other effects 293 132
Total – 3,687 21,240
The tax income from previous years results from a positive ruling in appeal proceedings upheld with regard to the
recognition of write-downs to the going concern value of shares in foreign subsidiaries in financial year 2001.
The income tax rate selected as a basis for the reconciliation is composed of the corporation income tax rate of
15.0% applicable in Germany, plus a solidarity surcharge of 5.5% and a rate for trade earnings tax of 10.15% for
comdirect bank AG (Quickborn location) and 12.25% for ebase GmbH (Aschheim location).
As in the previous year, this produces an income tax rate of around 25.98% for comdirect bank AG and around
27.73% for ebase GmbH.