B Disclosure of interests in other entities

Transcription

1 244 DZ BANK ANNUAL REPORT B Disclosure of interests in other entities PROPORTION OF THE DZ BANK GROUP S ACTIVITIES AND CASH FLOW ATTRIBUTABLE TO NON CONTROLLING INTERESTS» 29 INVESTMENTS IN SUBSIDIARIES In the DZ BANK Group, material non-controlling interests in the capital and net income exist in the following subsidiaries: R+V Versicherung subgroup 1,691 1,646 Bausparkasse Schwäbisch Hall subgroup DZ BANK Perpetual Funding Private Issuer (Jersey) Limited 500 DZ BANK Capital Funding Trust II DZ BANK Perpetual Funding Issuer (Jersey) Limited DZ BANK Capital Funding Trust III DZ BANK Capital Funding Trust I DZ PRIVATBANK Union Asset Management Holding subgroup Other Total 4,722 5,338 R+V VERSICHERUNG he R+V Group is a subgroup of the DZ BANK Group that, with its individual companies, ofers all types of insurance in all of the non-life, life, and health insurance sectors. It also takes on inward reinsurance business in the international market. R+V Versicherung AG, Wiesbaden, (R+V) is the parent company of the R+V subgroup. R+V is headquartered in Wiesbaden. DZ BANK directly holds 77.0 percent of the shares in R+V (December 31, : 74.9 percent). he share of voting rights equals the shareholding. Non-controlling interests account for 23.0 percent of the share of voting rights and the shareholding (December 31, : 25.1 percent) percent (December 31, : 15.8 percent) is held by WGZ BANK AG Westdeutsche Genossenschafts-Zentralbank, Düsseldorf, (WGZ BANK) and 6.1 percent (December 31, : 6.2 percent) by local cooperative banks. he other 1.9 percent (December 31, : 3.1 percent) is held by other entities in the cooperative sector. he net income for the year attributable to non-controlling interests was 136 million (: 191 million); this includes the net income for the year attributable to the non-controlling interests within the R+V subgroup of 38 million (: 37 million). he carrying amount of the non-controlling interests within the DZ BANK Group was 1,691 million (December 31, : 1,646 million), of which 517 million was attributable to the non-controlling

2 DZ BANK ANNUAL REPORT 245 interests within the R+V subgroup (December 31, : 472 million). DZ BANK has con cluded a proit-transfer agreement with R+V. his guarantees an annual cash settlement of 9.95 per non-par-value share (after corporation tax and ancillary taxes) for the outside share holders of R+V until the end of the 2016 inancial year. Guaranteed dividends of 31 million were paid to outside shareholders of R+V in (: 33 million). In the R+V subgroup, dividends of 7 million were paid to non-controlling interests (: 7 million). Aggregated inancial information for the R+V subgroup: Assets 90,280 85,663 Liabilities 84,467 80,175 Premiums earned 14,418 13,927 Net profit Other comprehensive income / loss Total comprehensive income 234 1,089 BAUSPARKASSE SCHWÄBISCH HALL Bausparkasse Schwäbisch Hall AG Bausparkasse der Volksbanken und Raifeisenbanken, Schwäbisch Hall (BSH) is the parent company of the BSH subgroup. BSH is headquartered in Schwäbisch Hall. DZ BANK directly holds 81.9 percent of the shares in BSH (December 31, : 81.8 percent). he share of voting rights equals the shareholding. Non-controlling interests account for 18.1 percent of the share of voting rights and the shareholding (December 31, : 18.2 percent) percent (December 31, : 15.0 percent) is held by WGZ BANK. he other 3.1 percent (December 31, : 3.2 percent) is mainly held by primary banks. he net income for the year attributable to non-controlling interests was 60 million (: 57 million); this includes the net income for the year attributable to the non-controlling interests within the BSH subgroup of 11 million (: 10 million). he carrying amount of the non-controlling interests within the DZ BANK Group was 948 million (December 31, : 897 million), of which 79 million was attributable to non-controlling interests within the BSH subgroup (December 31, : 76 million). DZ BANK has concluded a proit-transfer agreement with BSH. his guarantees a cash settlement of per nonpar-value share (after corporation tax and ancillary taxes) for the outside shareholders of BSH until the end of the inancial year. Guaranteed dividends of 16 million were paid to outside shareholders of BSH in (: 16 million). In the BSH subgroup, dividends of 4 million were paid to non-controlling interests (: 3 million).

3 246 DZ BANK ANNUAL REPORT Aggregated inancial information for the BSH subgroup: Assets 61,217 57,648 Liabilities 56,345 52,975 Interest income and fee and commission income 1,819 1,862 Net profit Other comprehensive income 8 56 Total comprehensive income Cash flow DZ BANK CAPITAL FUNDING TRUST I, II AND III, DZ BANK PERPETUAL FUNDING ISSUER (JERSEY) LIMITED, AND DZ BANK PERPETUAL FUNDING PRIVATE ISSUER (JERSEY) LIMITED DZ BANK has established companies in Delaware, USA and Jersey, Channel Islands in order to increase own in accordance with section 10a of the German Banking Act (KWG). he business activities of these companies are limited to the issuance of openended equity instruments without redemption incentives. hese equity instruments that have been issued are held by non-voting non-controlling interests in the DZ BANK Group. he companies in question are: DZ BANK Capital Funding Trust I, Wilmington, Delaware, DZ BANK Capital Funding Trust II, Wilmington, Delaware, DZ BANK Capital Funding Trust III, Wilmington, Delaware, DZ BANK Perpetual Funding Issuer (Jersey) Limited, St. Helier, Jersey, DZ BANK Perpetual Funding Private Issuer (Jersey) Limited, St. Helier, Jersey. DZ BANK Perpetual Funding Private Issuer (Jersey) Limited was deconsolidated on the balance sheet date. he companies were established at their current registered oice. he Delaware companies are headquartered in New York, USA. he Channel Islands companies are headquartered in Frankfurt am Main. Virtually 100 percent of the issued share capital of each of the companies is attributable to non-voting non-controlling interests, while the voting rights in the companies are securitized in only a small proportion of the capital. As a result, virtually all of the proits and losses of the companies are attributable to the non-controlling interests. he companies net income for the year is shown in the following table:

4 DZ BANK ANNUAL REPORT 247 DZ BANK Capital Funding Trust I 8 8 DZ BANK Capital Funding Trust II 8 9 DZ BANK Capital Funding Trust III 5 6 DZ BANK Perpetual Funding Issuer (Jersey) Limited DZ BANK Perpetual Funding Private Issuer (Jersey) Limited Distributions of dividends to the non-controlling interests generally take the form of a variable or ixed-rate coupon whose actual payment is not subject to a contractual obligation. he dividends paid to the non-controlling interests in the inancial year are shown in the following table: DZ BANK Capital Funding Trust I 8 8 DZ BANK Capital Funding Trust II 8 9 DZ BANK Capital Funding Trust III 5 6 DZ BANK Perpetual Funding Issuer (Jersey) Limited DZ BANK Perpetual Funding Private Issuer (Jersey) Limited Aggregated inancial information for the DZ BANK Capital Funding Trust companies and the DZ BANK Perpetual Funding Issuer companies: Non-current assets 1,410 2,160 Liabilities Interest income and fee and commission income Net profit Total comprehensive income DZ PRIVATBANK DZ PRIVATBANK S.A., Luxembourg-Strassen, Luxembourg, (DZ PRIVATBANK S.A.), with its headquarters in Luxembourg and its wholly owned subsidiaries DZ PRIVATBANK (Schweiz) AG, Zurich, Switzerland, DZ PRIVATBANK Singapore Ltd., Singapore, Singapore, Europäische Genossenschaftsbank S.A., Luxembourg-Strassen, Luxembourg, IPConcept (Luxemburg) S.A., Luxembourg-Strassen, Luxembourg, and IPConcept (Schweiz) AG, Zurich, Switzerland, is the cooperative center of excellence for private banking of the local cooperative banks in Germany.

5 248 DZ BANK ANNUAL REPORT DZ BANK directly holds 70.5 percent (December 31, : 70.0 percent) of the shares in DZ PRIVATBANK S.A. he share of voting rights equals the shareholding. Within the proportion held by non-controlling interests, 19.0 percent (December 31, : 19.0 percent) is attributable to WGZ BANK. he other non-controlling interests are held by local cooperative banks and cooperative investors. here was no net income for the year attributable to the non-controlling interests (: 14 million). he carrying amount of the non-controlling interests was 270 million (Dec - ember 31, : 284 million). he dividend distributed to the non-controlling interests came to 13 million during the reporting period (: 14 million). Aggregated inancial information for the DZ PRIVATBANK subgroup: Assets 17,496 14,785 Liabilities 16,480 13,769 Interest income and fee and commission income Net profit Other comprehensive income / loss 12-1 Total comprehensive income Cash flow 1, UNION ASSET MANAGEMENT HOLDING Union Asset Management Holding AG, Frankfurt am Main, (UMH) is the parent company of the UMH subgroup. UMH is headquartered in Frankfurt am Main. Other major locations are Hamburg and Luxembourg. DZ BANK s aggregated shareholding of the shares in UMH is 78.8 percent (December 31, : 78.7 percent). he share of voting rights equals the aggregated shareholding percent is attributable to the non-controlling interests (December 31, : 21.3 percent) percent (December 31, : 17.7 percent) is held directly by WGZ BANK. he other 3.5 percent (December 31, : 3.6 percent) is held by other entities in the cooperative sector. he proportion held indirectly by DZ BANK is 73.7 percent (December 31, : 73.5 percent). he carrying amount of the non-controlling interests within the DZ BANK Group was 283 million (December 31, : 242 million) and related to the multiplicative share of the capital of UMH. Of this amount, 14 million was attributable to non-controlling interests within the UMH subgroup (December 31, : 9 million). he net income for the year attributable to non-controlling interests was 103 million (: 96 million); this includes the net income for the year attributable to the non-controlling interests within the UMH subgroup of 7 million (: 6 million). he dividend distributed to the non-controlling interests came to a total of 68 million during the reporting period (: 55 million). 4 million of this amount was paid as dividends to non-controlling interests in the UMH subgroup (: 4 million).

6 DZ BANK ANNUAL REPORT 249 Aggregated inancial information for the UMH subgroup: Assets 2,072 1,840 Liabilities Interest income and fee and commission income 1,968 1,700 Net profit Other comprehensive income / loss Total comprehensive income NATURE AND EXTENT OF SIGNIFICANT RESTRICTIONS National regulatory requirements, contractual provisions, and provisions of company law restrict the DZ BANK Group s ability to transfer assets within the group. Owing to a reassessment of the nature and extent of signiicant restrictions, the prior-year amounts have been restated. Where these restrictions can be speciically assigned to individual line items on the balance sheet, the carrying amounts of the assets and liabilities subject to restrictions on the balance sheet date are shown in the following table: Assets 74,732 70,721 Loans and advances to customers 4,174 4,944 Investments held by insurance companies 70,552 65,770 Other assets 6 7 Liabilities 119, ,392 Deposits from banks 1,690 1,583 Deposits from customers 50,926 48,343 Provisions Insurance liabilities 65,879 61,886 NATURE OF THE RISKS ASSOCIATED WITH INTERESTS IN CONSOLIDATED STRUCTURED ENTITIES Risks arising from interests in consolidated structured entities largely result from loans to fully consolidated, some of which are extended in the form of junior loans.

7 250 DZ BANK ANNUAL REPORT NATURE, EXTENT, AND FINANCIAL EFFECTS OF INTERESTS IN JOINT ARRANGEMENTS ČESKOMORAVSKÁ STAVEBNÍ SPOŘITELNA Českomoravská stavební spořitelna, a.s., (ČMSS) is a joint venture between BSH and the Czech Republic s largest bank, Československá obchodní banka, a.s. (ČSOB). ČMSS is headquartered in Prague, Czech Republic. It is one of Europe s largest building societies. ČMSS is a leading provider of home savings and home inance products in the Czech Republic, with 1.5 million customers. BSH s shareholding was 45.0 percent on the balance sheet date, as it had been at December 31,. he other 55.0 percent is held by ČSOB (December 31, : 55.0 percent). In the DZ BANK Group, the interests in ČMSS are accounted for using the equity method. ČMSS paid a dividend of 19 million to BSH in (: 23 million).» 30 INTERESTS IN JOINT ARRANGEMENTS AND ASSOCIATES Aggregated inancial information for ČMSS: Current assets 993 1,111 of which: cash and cash equivalents Non-current assets 4,672 4,835 Current liabilities 1,321 1,196 of which: financial liabilities 1,224 1,153 Non-current liabilities 3,994 4,407 of which: financial liabilities 3,980 4,335 Interest income Interest expense Fee and commission income Fee and commission expenses Administrative expenses Income taxes Profit from continuing operations, net of tax Other comprehensive income 6 1 Total comprehensive income Reconciliation from the aggregated inancial information to the carrying amount of the interests in ČMSS: Total net assets Share of net assets Carrying amount under the equity method

8 DZ BANK ANNUAL REPORT 251 PRVÁ STAVEBNÁ SPORITEĽŇA Prvá stavebná sporiteľňa a.s. (PSS) is a joint venture between BSH and its partners Raifeisen Bausparkasse Wien, Slovenská sporiteľňa, and Erste Bank, Vienna, Austria. PSS is headquartered in Bratislava, Slovakia. It is the market leader for building society operations in Slovakia, with around 760,000 customers. BSH s shareholding in PSS was 32.5 percent on the balance sheet date, as it had been at December 31,. In the DZ BANK Group, the interests in PSS are accounted for using the equity method. PSS paid a dividend of 7 million to BSH in (: 8 million). Aggregated inancial information for PSS: Current assets of which: cash and cash equivalents 19 Non-current assets 2,250 2,195 Current liabilities of which: financial liabilities Non-current liabilities 1,852 1,810 of which: financial liabilities 1,832 1,791 Interest income Interest expense Fee and commission income Fee and commission expenses -1-2 Administrative expenses Income taxes -8-7 Profit from continuing operations, net of tax Other comprehensive income 3 16 Total comprehensive income Reconciliation from the aggregated inancial information to the carrying amount of the interests in PSS: Total net assets Share of net assets Carrying amount under the equity method 85 84

9 252 DZ BANK ANNUAL REPORT ZHONG DE ZUH FANG CHU XU YIN HANG (SINO-GERMAN-BAUSPARKASSE) Zhong De Zuh Fang Chu Xu Yin Hang (Sino-German-Bausparkasse) (SGB) is a joint venture between BSH and China Construction Bank Corporation, Beijing, China. SGB is headquartered in Tianjin, China. Its business activities are concentrated in the regions of Tianjin (population of approx. 13 million) and Chongqing (population of approx. 30 million). BSH s shareholding in this Chinese building society was 24.9 percent on the balance sheet date, as it had been at December 31,. In the DZ BANK Group, the interests in SGB are accounted for using the equity method. he equity method is applied to SGB on the basis of inancial statements prepared in accordance with Chinese Accounting Standards. SGB did not pay a dividend in, as had been the case in the previous year. Aggregated inancial information for SGB: Current assets of which: cash and cash equivalents Non-current assets 3,159 2,512 Current liabilities 2,945 2,495 of which: financial liabilities 2,902 2,461 Non-current liabilities of which: financial liabilities Interest income Interest expense Fee and commission income Fee and commission expenses Administrative expenses Income taxes -9-8 Profit from continuing operations, net of tax Other comprehensive income Total comprehensive income Reconciliation from the aggregated inancial information to the carrying amount of the interests in SGB: Total net assets Share of net assets Cumulative impairment losses on the carrying amount of the investment Carrying amount under the equity method 81 76

10 DZ BANK ANNUAL REPORT 253 DEUTSCHE WERTPAPIERSERVICE BANK Deutsche WertpapierService Bank AG, Frankfurt am Main, (dwpbank) is a joint venture of DZ BANK and is included in the DZ BANK Group s inancial statements using the equity method. dwpbank is headquartered in Frankfurt am Main. Its capital is divided into 20,000,000 voting registered shares with transfer restrictions. DZ BANK holds a 50.0 percent stake in dwpbank, as it did in the previous year. he equity method is applied to dwpbank on the basis of inancial statements prepared in accordance with HGB. he shares in dwpbank are not traded in an active market. dwpbank paid a dividend of 1 million to DZ BANK in (: 2 million). Aggregated inancial information for dwpbank: Assets Liabilities of which: financial liabilities dwpbank only has a small amount of cash and cash equivalents. Interest income 4 4 Interest expense -1-1 Fee and commission income Fee and commission expenses Administrative expenses Income taxes -6-4 Profit from continuing operations, net of tax 11 1 Total comprehensive income 11 1 Reconciliation from the aggregated inancial information to the carrying amount of the interests in dwpbank: Total net assets Share of net assets Capitalization of goodwill Carrying amount under the equity method

11 254 DZ BANK ANNUAL REPORT VB-LEASING INTERNATIONAL VB-Leasing International Holding GmbH, Vienna, Austria, (VBLI) is a joint venture of VR LEASING and is included in the DZ BANK Group s inancial statements using the equity method. VBLI is headquartered in Vienna, Austria. he company focuses on holding equipment leasing companies in central and eastern Europe. VR LEASING s shareholding in VBLI was 50.0 percent on the balance sheet date, as it had been at December 31,. VBLI paid a dividend of 65 million to VR LEASING in (: 9 million). Aggregated inancial information for VBLI: Current assets Non-current assets Current liabilities of which: financial liabilities Non-current liabilities of which: financial liabilities Interest income Interest expense Fee and commission income 1 5 Fee and commission expenses -1 Administrative expenses Income taxes Profit (loss) from continuing operations, net of tax 2-7 Other comprehensive income / loss Total comprehensive income / loss -5 3 Reconciliation from the aggregated inancial information to the carrying amount of the interests in VBLI: Total net assets Share of net assets Cumulative impairment losses on the carrying amount of the investment Carrying amount under the equity method 9 65

12 DZ BANK ANNUAL REPORT 255 OTHER JOINT VENTURES he carrying amount of the equity-accounted joint ventures that, individually, are not material totaled 138 million on the balance sheet date (December 31, : 127 million). Aggregated inancial information for equity-accounted joint ventures that, individually, are not material: Share of profit from continuing operations, net of tax 4 12 Share of total comprehensive income 4 12 NATURE, EXTENT, AND FINANCIAL EFFECTS OF INVESTMENTS IN ASSOCIATES EQUENS Equens SE, Utrecht, Netherlands, (Equens) is one of Europe s biggest providers of payments processing services. It is located in Germany, the Netherlands, Italy, the United Kingdom, and Finland and covers the entire European market. Equens is headquartered in Utrecht, Netherlands. As it had been a year earlier, DZ BANK was the company s largest shareholder on the balance sheet date with a stake of 31.1 percent. Equens is accounted for under the equity method in the consolidated inancial statements. Its shares are not quoted in an active market. Equens did not pay a dividend to DZ BANK in (: no dividend). Aggregated inancial information for Equens: Current assets of which: cash and cash equivalents Non-current assets Current liabilities of which: financial liabilities 1 11 Non-current liabilities Revenue Administrative expenses Income taxes -2 1 Loss from continuing operations, net of tax -4-7 Profit from discontinued operations, net of tax 1 Other comprehensive income / loss 27-6 Total comprehensive income / loss 24-13

13 256 DZ BANK ANNUAL REPORT Reconciliation from the aggregated inancial information to the carrying amount of the interests in Equens: Total net assets Share of net assets Capitalization of goodwill Cumulative impairment losses on the carrying amount of the investment Carrying amount under the equity method CASSA CENTRALE BANCA Cassa Centrale Banca Credito Cooperativo del Nord Est S.p.A., Trento, Italy, (CC Banca) is a cooperative central institution for more than 100 regional cooperative banks in northeast Italy (Trento, Veneto, Friuli Venezia). It is headquartered in Trento. CC Banca assists the UMH subgroup and the R+V subgroup with their Italian activities. he investment also supports pan-european collaboration in the cooperative sector. DZ BANK holds 25.0 percent of the shares in CC Banca (as it had in the previous year) and has 26.5 per cent of the voting rights. he shares in CC Banca are not quoted in an active market. In the DZ BANK Group, the interests are accounted for using the equity method. CC Banca paid a dividend of 2 million to DZ BANK in (: 2 million). Aggregated inancial information for CC Banca: Assets 5,524 8,468 of which: cash and cash equivalents Liabilities 5,272 8,231 of which: financial liabilities 5,084 8,010 Interest income Interest expense Fee and commission income Fee and commission expenses Administrative expenses Income taxes Profit from continuing operations, net of tax Total comprehensive income 15 19

14 DZ BANK ANNUAL REPORT 257 Reconciliation from the aggregated inancial information to the carrying amount of the interests in CC Banca: Total net assets Share of net assets Capitalization of goodwill 4 4 Cumulative impairment losses on the carrying amount of the investment Carrying amount under the equity method OTHER ASSOCIATES he carrying amount of the equity-accounted associates that, individually, are not material totaled 254 million on the balance sheet date (December 31, : 214 million). Aggregated inancial information for equity-accounted associates that, individually, are not material: Share of profit from continuing operations, net of tax 6 6 Share of profit from discontinued operations, net of tax 1 Share of other comprehensive income / loss -5 Share of total comprehensive income 1 7 Structured entities are entities that have been designed so that voting rights or similar rights are not the dominant factor in deciding who controls the entity. he DZ BANK Group distinguishes between the following types of interests in unconsolidated structured entities, based on their design and the related risks: Interests in investment issued by the DZ BANK Group, Interests in investment not issued by the DZ BANK Group, Interests in securitization vehicles, Interests in asset-leasing vehicles.» 31 INTERESTS IN UNCONSOLIDATED STRUCTURED ENTITIES INTERESTS IN INVESTMENT FUNDS ISSUED BY THE DZ BANK GROUP he interests in the investment issued by the DZ BANK Group largely comprise investment issued by entities in the Union Investment Group in accordance with the contractual

15 258 DZ BANK ANNUAL REPORT form model without voting rights and, to a lesser extent, those that are structured as a company with a separate legal personality. he number and volume of investment issued and managed by the UMH subgroup can be broken down as follows: Volume Number Volume Number Mutual 136, , of which: guarantee 7, , Special 80, , of which: guarantee Total 216, , of which: guarantee 7, , Furthermore, DVB Bank SE, Frankfurt am Main, (DVB) makes subordinated loans available to fully consolidated for the purpose of transport inance. In turn, these make subordinated loans or direct equity investments available to unconsolidated entities. he maximum exposure of the investment issued and managed by the DZ BANK Group is shown in the following tables as a gross value, excluding deduction of available collateral: AS AT DECEMBER 31, Mutual of which: guarantee Special of which: guarantee Assets 1,242 1,729 2,971 Loans and advances to customers Investments 1, ,288 Investments held by insurance companies 90 1,297 1,387 Other assets Non-current assets and disposal groups classified as held for sale Liabilities Derivatives used for hedging (negative fair values) Net exposure recognized on the balance sheet 1, ,729 2,968 Contingent liabilities Financial guarantee contracts, loan commitments and other obligations 7,359 7, ,363 Financial guarantee contracts Loan commitments Other obligations 7,359 7, ,363 Actual maximum exposure 8,598 7,356 1,733 10,331 Total

16 DZ BANK ANNUAL REPORT 259 AS AT DECEMBER 31, Mutual of which: guarantee Special of which: guarantee Assets 1, ,852 Loans and advances to customers Investments 1, ,190 Investments held by insurance companies Other assets Non-current assets and disposal groups classified as held for sale Liabilities Derivatives used for hedging (negative fair values) Net exposure recognized on the balance sheet 1, ,850 Contingent liabilities Financial guarantee contracts, loan commitments and other obligations 9,648 9, ,659 Financial guarantee contracts Loan commitments Other obligations 9,648 9, ,659 Actual maximum exposure 10,810 9, ,509 Total Regarding the disclosure of the maximum exposure, it must be noted that the Other obligations line item in the table above includes not only 4 million (December 31, : 11 mil lion) from outstanding subscription obligations in respect of a special real estate fund, but also market price guarantees in the amount of the nominal amounts of the guarantee commitments for guarantee of 7,361 million (December 31, : 9,650 million), less negative fair values of 3 million (December 31, : 2 million) recognized as a liability for the put options embedded in these products. he maximum exposure for market price guarantees for the guarantee does not represent the economic risk of this product type because the economic risk also has to relect these guarantee net assets on the balance sheet date and the management model used with these products to safeguard the minimum payment commitments. he beneit under a market price guarantee is triggered if the fair value of the afected units does not reach the speciied guaranteed level on particular dates. As at the balance sheet date, the UMH subgroup managed guarantee with a volume of 7,847 million (December 31, : 10,271 million) (net asset value) and whose minimum payment commitments had a nominal amount of 7,361 million (December 31, : 9,650 million). he put options embedded in the guarantee were measured at 3 million on the balance sheet date (December 31, : 2 million) and are reported as derivatives (negative fair values) under equity and liabilities on the balance sheet. he interests in the investment issued and managed by the DZ BANK Group resulted in losses of 15 million in the reporting year (: losses of 5 million). Calculation of the losses sufered by each investment fund excluded distributions relating to this fund in.

17 260 DZ BANK ANNUAL REPORT In the year under review, losses that only impacted on other comprehensive income / loss amounted to 5 million (: no losses). Furthermore, 3 million (: 5 million) was added to allowances for losses on loans and advances. he revenue generated from investment issued by the DZ BANK Group was as follows: Mutual of which: guarantee Special of which: guarantee Total Interest income and current income and expense Fee and commission income 1, ,603 Gains and losses on investments held by insurance companies and other insurance company gains and losses Other gains and losses on valuation of financial instruments Total 1, ,636 Mutual of which: guarantee Special of which: guarantee Total Interest income and current income and expense Fee and commission income 1, ,402 Gains and losses on investments held by insurance companies and other insurance company gains and losses Other gains and losses on valuation of financial instruments Total 1, ,445 INTERESTS IN INVESTMENT FUNDS NOT ISSUED BY THE DZ BANK GROUP he interests in the investment not issued by the DZ BANK Group above all com prise investment managed by entities in the Union Investment Group within the scope of their own decision-making powers that have been issued by entities outside the DZ BANK Group and parts of such investment. heir total volume amounted to 27,269 million (December 31, : 24,289 million). he DZ BANK Group also extends loans to investment in order to generate interest income.

18 DZ BANK ANNUAL REPORT 261 In addition, there were investment issued by entities outside the group in connection with unit-linked life insurance amounting to 7,351 million (December 31, : 2,088 million) that, however, do not result in a maximum exposure. he maximum exposure arising from the investment not issued by the DZ BANK Group is shown as a gross value, excluding deduction of available collateral. he following assets and liabilities have been recognized on the DZ BANK Group s balance sheet in connection with interests in investment not issued by the DZ BANK Group: Assets 2,026 1,816 Loans and advances to customers 2,026 1,816 Investments Liabilities Net exposure recognized on the balance sheet 2,026 1,816 Contingent liabilities Financial guarantee contracts, loan commitments and other obligations 69 Financial guarantee contracts Loan commitments 69 Other obligations Maximum exposure 2,095 1,816 he revenue generated from interests in investment not issued by the DZ BANK Group was as follows: Interest income Fee and commission income Total INTERESTS IN SECURITIZATION VEHICLES he interests in securitization vehicles are interests in vehicles where the DZ BANK Group s involvement goes beyond that of an investor. he assets and liabilities listed below have been recognized on the DZ BANK Group s balance sheet in connection with these interests. here is also an additional exposure from contingent liabilities and from inancial guarantee contracts, loan commitments, and other obligations, which are shown at their nominal amounts. hey only include inancial guarantee contracts, loan commitments, and other obligations for which no liability or contingent liability has been recognized. he maximum exposure is determined as a gross value, excluding deduction of available collateral.

19 262 DZ BANK ANNUAL REPORT Assets 904 1,132 Loans and advances to customers Financial assets held for trading Investments Liabilities 1 Net exposure recognized on the balance sheet 903 1,132 Contingent liabilities Financial guarantee contracts, loan commitments and other obligations 2,556 2,151 Financial guarantee contracts Loan commitments 2,556 2,151 Other obligations Maximum exposure 3,459 3,283 he revenue generated from interests in securitization vehicles was as follows: Interest income 7 8 Fee and commission income Gains and losses on trading activities and gains and losses on investments Total he material interests in securitization vehicles comprise the two multi-seller ABCP programs: CORAL and AUTOBAHN. DZ BANK acts as sponsor and program agent for both programs. It is also the program administrator for AUTOBAHN. As sponsor, DZ BANK was involved in setting up the structured entities and provides various services for them. Under the CORAL program, customers of the bank sell assets to separate special-purpose entities. he assets purchased essentially consist of trade receivables, loans, and lease receivables. Under the AUTOBAHN program, assets of North American customers are sold to specially established special-purpose entities and funded through the issuing company by means of ABCP issues. he special-purpose entities are unconsolidated structured entities. Owing to the cellular structure of the transactions, there are no investee companies to be assessed. DZ BANK does not have control over the individual silos because it acts as agent and not as principal. he purchase of the assets is funded using liquidity lines and by issuing money marketlinked ABCPs. DZ BANK is a liquidity agent for the program, which involves making liquidity facilities available. In, DZ BANK did not provide either of the programs with any non-contractual support. Moreover, it currently has no intention to provide inancial or other support. Because the ABCP programs are fully supported programs, DZ BANK bears all the default risk. DZ BANK did not incur any losses during the reporting period.

20 DZ BANK ANNUAL REPORT 263 INTERESTS IN ASSET-LEASING VEHICLES he interests in asset-leasing vehicles comprise shares in limited partnerships and voting rights, other than the shares in limited partnerships, in partnerships established by VR LEASING for the purpose of real estate leasing ( asset-leasing vehicles ), in which the asset, and the funding occasionally provided by the DZ BANK Group, are placed. he assets and liabilities listed below have been recognized on the DZ BANK Group s balance sheet in connection with the interests in real estate asset-leasing vehicles. here is also an additional exposure from contingent liabilities and from inancial guarantee contracts, loan commitments, and other obligations, which are shown at their nominal amounts. hey only include inancial guarantee contracts, loan commitments, and other obligations for which no liability or contingent liability has been recognized. he actual maximum exposure is determined as a gross value, excluding deduction of any collateral available. Assets 4 3 Loans and advances to customers 4 3 Liabilities 5 6 Deposits from customers 5 6 Net exposure recognized on the balance sheet -1-3 Contingent liabilities Financial guarantee contracts, loan commitments and other obligations 2 3 Financial guarantee contracts 2 3 Loan commitments Other obligations Maximum exposure 1 he interest income and current income and expense generated from interests in asset-leasing vehicles totaled 5 million (: 3 million). here are guarantees to asset-leasing vehicles of 1 million (December 31, : 1 million). he DZ BANK Group sponsors an unconsolidated structured entity within the meaning of IFRS 12 if it was involved in establishing the structured entity or if the structured entity is linked by name to DZ BANK or a subsidiary within the DZ BANK Group and there are no interests, within the meaning of IFRS 12, in the structured entity. Based on this deinition, there are currently no sponsoring arrangements for unconsolidated structured entities in the DZ BANK Group.» 32 SPONSORING ARRANGEMENTS FOR UNCONSOLIDATED STRUCTURED ENTITIES