Meeting real needs with concrete solutions. - Investor Relations ...

valuation. By contrast, the fixed-income securities, equity instruments
and other assets held for trading contained within the balance sheet
item assets held for trading purposes fell by a total of €14.8 billion.
Loans and receivables with customers fell by €2.8 billion, to
€136.6 billion, compared with year-end 2010. This decline is attributable
to lower volumes of mortgage loans, the reduction of reclassified
securities, the decrease in impaired assets and lower other loans and
receivables. There was a €2.1 billion decline in loans and receivables
with banks to €44.3 billion as a result of the significant decline in
repurchase agreements and the lower holdings of reclassified securities
while bonds increased. Hedging derivatives rose year-on-year by
€1.1 billion to €5.3 billion.
On the liabilities side, the financial liabilities held for trading rose by
€13.7 billion, to €140.8 billion, compared with year-end 2010. In the
process, the negative fair values from derivative financial instruments
rose as a result of market conditions by €30.0 billion in line with
the items on the assets side while repurchase agreements fell by
€10.3 billion. In addition, debt securities decreased by €6.0 billion, to
€42.7 billion, on account of issues due and deposits from customers
by €1.1 billion, to €107.4 billion. Within deposits from customers,
there was a decrease particularly in other liabilities due to a decline in
time deposits, savings deposits and repurchase agreements (reverse
repos). Deposits from banks rose by €6.0 billion, to €57.9 billion,
primarily as a result of a substantial increase in volumes of reverse
repos while time deposits declined. As a result of the transfer of
liabilities under the sale of parts of the private banking business of
UniCredit Luxembourg S.A. to DZ Privatbank S.A. at the beginning
of the year, there was a decline of €0.6 billion in the balance sheet
item “Liabilities of disposal groups held for sale”.
At €23.3 billion, shareholders’ equity had declined by €352 million,
or 1.5%, compared with year-end 2010. Alongside lower other
reserves (down €96 million), this can be attributed to the profit of 2010
available for distribution (€1,270 million) disbursed in the second
quarter of 2011 that could not be fully offset by the consolidated
profit of €1,017 million generated in the 2011 financial year.
Risk-weighted assets, key capital ratios
and liquidity of HVB Group
The total risk-weighted assets, including market risk and operational
risk, amounted to €127.4 billion at 31 December 2011 (31 December
2010: €124.5 billion). The total risk-weighted assets of HVB
Group increased by €2.9 billion compared with year-end 2010. This
rise is attributable to the decline of €19.4 billion in risk-weighted
assets for credit risk while there was an increase of €20.1 billion in
risk-weighted assets for market risk and of €2.2 billion for operational
risk. The risk-weighted assets for credit risks of HVB Group determined
on the basis of Basel II (German Banking Act/Solvency Regulation –
KWG/SolvV) by applying partial use amounted to €92.4 billion at
31 December 2011 (including counterparty default risk in the trading
book). At 31 December 2010, these risk-weighted assets amounted
to €111.8 billion.
The reduction of €19.4 billion in risk-weighted assets for credit risk
is chiefly attributable to a significant decline of €6.9 billion in riskweighted
assets at UniCredit Luxembourg S.A. (notably on account
of changing the method applied from the standard approach to partial
use) and a decline of €12.4 billion in credit risk-weighted assets in
the banking book of UniCredit Bank AG.
The risk-weighted asset equivalents for operational risk rose by
€2.2 billion mainly in the first quarter of 2011. We refer to the
description in the Risk Report (operational risk section) for an
explanation of the measurement methods for operational risk.
The significant increase of €20.1 billion in risk-weighted assets for
market risk is predominantly due to the regulatory requirements
introduced or expanded on 31 December 2011 within the framework
of the “CRD3” regarding the determination of market risk.
HypoVereinsbank · 2011 Annual Report 35