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valuation. By contrast, the fixed-income securities, equity instruments<br />

and other assets held for trading contained <strong>with</strong>in the balance sheet<br />

item assets held for trading purposes fell by a total of €14.8 billion.<br />

Loans and receivables <strong>with</strong> customers fell by €2.8 billion, to<br />

€136.6 billion, compared <strong>with</strong> year-end 2010. This decline is attributable<br />

to lower volumes of mortgage loans, the reduction of reclassified<br />

securities, the decrease in impaired assets and lower other loans and<br />

receivables. There was a €2.1 billion decline in loans and receivables<br />

<strong>with</strong> banks to €44.3 billion as a result of the significant decline in<br />

repurchase agreements and the lower holdings of reclassified securities<br />

while bonds increased. Hedging derivatives rose year-on-year by<br />

€1.1 billion to €5.3 billion.<br />

On the liabilities side, the financial liabilities held for trading rose by<br />

€13.7 billion, to €140.8 billion, compared <strong>with</strong> year-end 2010. In the<br />

process, the negative fair values from derivative financial instruments<br />

rose as a result of market conditions by €30.0 billion in line <strong>with</strong><br />

the items on the assets side while repurchase agreements fell by<br />

€10.3 billion. In addition, debt securities decreased by €6.0 billion, to<br />

€42.7 billion, on account of issues due and deposits from customers<br />

by €1.1 billion, to €107.4 billion. Within deposits from customers,<br />

there was a decrease particularly in other liabilities due to a decline in<br />

time deposits, savings deposits and repurchase agreements (reverse<br />

repos). Deposits from banks rose by €6.0 billion, to €57.9 billion,<br />

primarily as a result of a substantial increase in volumes of reverse<br />

repos while time deposits declined. As a result of the transfer of<br />

liabilities under the sale of parts of the private banking business of<br />

UniCredit Luxembourg S.A. to DZ Privatbank S.A. at the beginning<br />

of the year, there was a decline of €0.6 billion in the balance sheet<br />

item “Liabilities of disposal groups held for sale”.<br />

At €23.3 billion, shareholders’ equity had declined by €352 million,<br />

or 1.5%, compared <strong>with</strong> year-end 2010. Alongside lower other<br />

reserves (down €96 million), this can be attributed to the profit of 2010<br />

available for distribution (€1,270 million) disbursed in the second<br />

quarter of 2011 that could not be fully offset by the consolidated<br />

profit of €1,017 million generated in the 2011 financial year.<br />

Risk-weighted assets, key capital ratios<br />

and liquidity of HVB Group<br />

The total risk-weighted assets, including market risk and operational<br />

risk, amounted to €127.4 billion at 31 December 2011 (31 December<br />

2010: €124.5 billion). The total risk-weighted assets of HVB<br />

Group increased by €2.9 billion compared <strong>with</strong> year-end 2010. This<br />

rise is attributable to the decline of €19.4 billion in risk-weighted<br />

assets for credit risk while there was an increase of €20.1 billion in<br />

risk-weighted assets for market risk and of €2.2 billion for operational<br />

risk. The risk-weighted assets for credit risks of HVB Group determined<br />

on the basis of Basel II (German Banking Act/Solvency Regulation –<br />

KWG/SolvV) by applying partial use amounted to €92.4 billion at<br />

31 December 2011 (including counterparty default risk in the trading<br />

book). At 31 December 2010, these risk-weighted assets amounted<br />

to €111.8 billion.<br />

The reduction of €19.4 billion in risk-weighted assets for credit risk<br />

is chiefly attributable to a significant decline of €6.9 billion in riskweighted<br />

assets at UniCredit Luxembourg S.A. (notably on account<br />

of changing the method applied from the standard approach to partial<br />

use) and a decline of €12.4 billion in credit risk-weighted assets in<br />

the banking book of UniCredit Bank AG.<br />

The risk-weighted asset equivalents for operational risk rose by<br />

€2.2 billion mainly in the first quarter of 2011. We refer to the<br />

description in the Risk Report (operational risk section) for an<br />

explanation of the measurement methods for operational risk.<br />

The significant increase of €20.1 billion in risk-weighted assets for<br />

market risk is predominantly due to the regulatory requirements<br />

introduced or expanded on 31 December 2011 <strong>with</strong>in the framework<br />

of the “CRD3” regarding the determination of market risk.<br />

HypoVereinsbank · 2011 Annual Report 35

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