Notes to the Consolidated Income Statement

Transcription

1 309 Deutsche Bank Consolidated Statement of Income 269 Notes to the Annual Report 206 Consolidated Statement of Consolidated Financial Statements 275 Comprehensive Income 270 Notes to the Consolidated Balance Sheet 27 Consolidated Income Statement 309 Consolidated Statement of Notes to the Consolidated Balance Sheet 35 Changes in Equity 272 Additional Notes 382 Consolidated Statement of Cash Flows 274 Confirmations 44 Notes to the Consolidated Income Statement 05 Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss Net Interest Income Interest and similar income: Interest-earning deposits with banks Central bank funds sold and securities purchased under resale agreements Interest income on financial assets available for sale,33,292,34 Dividend income on financial assets available for sale Loans 2,3 2,29,820 Interest income on securities held to maturity Other, Total Interest and similar income not at fair value through profit or loss 6,357 5,470 5,96 Financial assets at fair value through profit or loss 9,279 0,496 9,805 Total interest and similar income 25,636 25,967 25,00 Interest expense: Interest-bearing deposits 2,583 2,764 3,20 Central bank funds purchased and securities sold under repurchase agreements Other short-term borrowings Long-term debt,759,480,882 Trust preferred securities Other, Total Interest expense not at fair value through profit or loss 6,295 5,552 6,465 Financial liabilities at fair value through profit or loss 4,634 4,534 4,264 Total interest expense 0,929 0,086 0,729 Net interest income 4,707 5,88 4,272 Interest income recorded on impaired financial assets was 63 million, 67 million and 94 million for the years ended December 3, 206, 205 and 204, respectively.

2 Deutsche Bank 2 Consolidated Financial Statements 30 Annual Report 206 Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss Trading income: Sales & Trading (equity) ,25 Sales & Trading (debt and other products) 3,462 4,08 3,203 Total Sales & Trading 4,07 4,649 5,329 Other trading income (3,524) (775) (922) Total trading income 547 3,874 4,407 Net gains (losses) on financial assets/liabilities designated at fair value through profit or loss: Breakdown by financial asset/liability category: Securities purchased/sold under resale/repurchase agreements (3) 3 (5) Securities borrowed/loaned 0 0 Loans and loan commitments (09) (453) (20) Deposits (28) 0 () Long-term debt (538) Other financial assets/liabilities designated at fair value through profit or loss 69 (344) 467 Total net gains (losses) on financial assets/liabilities designated at fair value through profit or loss 854 (32) (08) Total net gains (losses) on financial assets/liabilities at fair value through profit or loss,40 3,842 4,299 Includes 0 million, (0.5) million and 48 million from securitization structures for the years ended December 3, 206, 205 and 204, respectively. Fair value movements on related instruments of 0 million, 0.8 million and (35) million for December 3, 206, 205 and 204, respectively, are reported within trading income. The total of these gains and losses represents the Group s share of the losses in these consolidated securitization structures. Combined Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss Net interest income 4,707 5,88 4,272 Trading income 547 3,874 4,407 Net gains (losses) on financial assets/liabilities designated at fair value through profit or loss 854 (32) (08) Total net gains (losses) on financial assets/liabilities at fair value through profit or loss,40 3,842 4,299 Total net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss 6,08 9,723 8,570 Sales & Trading (equity),979 2,887 2,639 Sales & Trading (debt and other products) 7,452 8,25 7,328 Total Sales & Trading 9,43,02 9,967 Other (204) (360) (785) Global Markets 9,227 0,742 9,82 Corporate & Investment Banking 2,090 2,25,969 Private, Wealth & Commercial Clients 3,877 3,862 3,973 Deutsche Asset Management Postbank 2,75 2,36 2,65 Non-Core Operations Unit (,26) (353) (30) Consolidation & Adjustments (363) 685,93 Total net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss 6,08 9,723 8,570 Trading income includes gains and losses from derivatives not qualifying for hedge accounting. The Group s trading and risk management businesses include significant activities in interest rate instruments and related derivatives. Under IFRS, interest and similar income earned from trading instruments and financial instruments designated at fair value through profit or loss (i.e., coupon and dividend income), and the costs of funding net trading positions, are part of net interest income. The Group s trading activities can periodically drive income to either net interest income or to net gains (losses) of financial assets/liabilities at fair value through profit or loss depending on a variety of factors, including risk management strategies. The above table combines net interest income and net gains (losses) of financial assets/liabilities at fair value through profit or loss by business division and by product within Global Markets.

3 3 Deutsche Bank Consolidated Statement of Income 269 Notes to the Annual Report 206 Consolidated Statement of Consolidated Financial Statements 275 Comprehensive Income 270 Notes to the Consolidated Balance Sheet 27 Consolidated Income Statement 309 Consolidated Statement of Notes to the Consolidated Balance Sheet 35 Changes in Equity 272 Additional Notes 382 Consolidated Statement of Cash Flows 274 Confirmations Commissions and Fee Income Commission and fee income and expense: Commission and fee income 4,999 6,42 5,746 Commission and fee expense 3,255 3,647 3,337 Net commissions and fee income,744 2,765 2,409 Net commissions and fee income: Net commissions and fees from fiduciary activities 4,287 4,480 3,745 Net commissions, brokers fees, mark-ups on securities underwriting and other securities activities 3,305 4,34 4,033 Net fees for other customer services 4,52 4,5 4,632 Net commissions and fee income,744 2,765 2, Net Gains (Losses) on Financial Assets Available for Sale Net gains (losses) on financial assets available for sale: Net gains (losses) on debt securities: Net gains (losses) from disposal Impairments () (0) 9 Net gains (losses) on equity securities: Net gains (losses) from disposal/remeasurement Impairments (7) (52) (2) Net gains (losses) on loans: 6 52 (9) Net gains (losses) from disposal Impairments (5) (3) (25) Reversal of impairments Net gains (losses) on other equity interests: 339 (2) Net gains (losses) from disposal Impairments (9) (3) (2) Total net gains (losses) on financial assets available for sale Please also refer to Note 6 Financial Assets Available for Sale of this report.

4 Deutsche Bank 2 Consolidated Financial Statements 32 Annual Report Other Income Other income: Net income from investment properties Net gains (losses) on disposal of investment properties (45) (8) 5 Net gains (losses) on disposal of consolidated subsidiaries (3) (24) 8 Net gains (losses) on disposal of loans (28) 237 (2) Insurance premiums Net income (loss) from hedge relationships qualifying for hedge accounting (370) (90) (,349) Consolidated investments Remaining other income, Total other income (loss), Net of reinsurance premiums paid. The development is primarily driven by Abbey Life Assurance Company Limited. 2 Includes net gains of 744 million, 237 million and million for the years ended December 3, 206, 205 and 204, respectively, that are related to noncurrent assets and disposal groups held for sale. 09 General and Administrative Expenses General and administrative expenses: IT costs 3,872 3,664 3,333 Occupancy, furniture and equipment expenses,972,944,978 Professional service fees 2,305 2,283 2,029 Communication and data services Travel and representation expenses Banking and transaction charges Marketing expenses Consolidated investments Other expenses 4,82 8,29 4,305 Total general and administrative expenses 5,454 8,632 4,654 Includes litigation related expenses of 2.4 billion in 206, 5.2 billion in 205 and.6 billion in 204. See Note 30 Provisions, for more detail on litigation. 0 Restructuring Restructuring forms part of the Group s targets originally announced in October 205. It contains initiatives to reposition Investment Banking, reshape the retail business, rationalize the geographic footprint and transform the operating model with the aim of achieving net savings of.0 to.5 billion by 208. Restructuring expense is comprised of termination benefits, additional expenses covering the acceleration of deferred compensation awards not yet amortized due to the discontinuation of employment and contract termination costs related to real estate.

5 33 Deutsche Bank Consolidated Statement of Income 269 Notes to the Annual Report 206 Consolidated Statement of Consolidated Financial Statements 275 Comprehensive Income 270 Notes to the Consolidated Balance Sheet 27 Consolidated Income Statement 309 Consolidated Statement of Notes to the Consolidated Balance Sheet 35 Changes in Equity 272 Additional Notes 382 Consolidated Statement of Cash Flows 274 Confirmations 44 Global Markets (27) (89) (92) Corporate & Investment Banking (65) (39) (29) Private, Wealth & Commercial Clients (4) (585) (9) Deutsche Asset Management (47) 2 3 Non-Core Operations Unit (4) (4) Consolidation & Adjustments 0 0 () Total Net Restructuring Charges (484) (70) (33) The majority of the net restructuring expense 206 relates to Infrastructure functions which are allocated to the business divisions whereas Infrastructure staff affected by the restructuring programs are shown separately in the table below. Restructuring Staff related (49) (663) (24) thereof: Termination Benefits (432) (602) (94) Retention Acceleration (54) (6) (29) Social Security (5) (0) () Restructuring Non Staff related 7 (46) (9) Total Net Restructuring Charges (484) (70) (33) Provisions for restructuring amounted to 74 million and 65 million as of December 3, 206 and December 3, 205, respectively. The majority of the current provisions for restructuring are expected to be utilized in the next two years. During 206,,45 full-time equivalent staff was reduced through restructuring (205: 662). Full-time equivalent staff Global Markets Corporate & Investment Banking Private, Wealth & Commercial Clients Deutsche Asset Management 0 22 Non-Core Operations Unit 0 Infrastructure/Regional Management Total full-time equivalent staff, Earnings per Share Basic earnings per share amounts are computed by dividing net income (loss) attributable to Deutsche Bank shareholders by the average number of common shares outstanding during the year. The average number of common shares outstanding is defined as the average number of common shares issued, reduced by the average number of shares in treasury and by the average number of shares that will be acquired under physically-settled forward purchase contracts, and increased by undistributed vested shares awarded under deferred share plans. Diluted earnings per share assumes the conversion into common shares of outstanding securities or other contracts to issue common stock, such as share options, convertible debt, unvested deferred share awards and forward contracts. The aforementioned instruments are only included in the calculation of diluted earnings per share if they are dilutive in the respective reporting period.

6 Deutsche Bank 2 Consolidated Financial Statements 34 Annual Report 206 Computation of basic and diluted earnings per share Net income (loss) attributable to Deutsche Bank shareholders numerator for basic earnings per share (,678) (7,022),663 Effect of dilutive securities: Forwards and options Convertible debt Net income (loss) attributable to Deutsche Bank shareholders after assumed conversions numerator for diluted earnings per share (,678) (7,022),663 Number of shares in million Weighted-average shares outstanding denominator for basic earnings per share,388.,387.9,24.9 Effect of dilutive securities: Forwards Employee stock compensation options Deferred shares Other (including trading options) Dilutive potential common shares Adjusted weighted-average shares after assumed conversions denominator for diluted earnings per share,388.,387.9,269.5 Earnings were adjusted by 276 and 228 million net of tax for the coupons paid on Additional Tier Notes in April 206 and April 205. Earnings per share in Basic earnings per share (.2) (5.06).34 Diluted earnings per share (.2) (5.06).3 On June 25, 204, Deutsche Bank AG completed a capital increase with subscription rights. As the subscription price of the new shares was lower than the market price of the existing shares, the capital increase included a bonus element. According to IAS 33, the bonus element is the result of an implicit change in the number of shares outstanding for all periods prior to the capital increase without a fully proportionate change in resources. As a consequence, the weighted average number of shares outstanding has been adjusted retrospectively. Due to the net loss situation for 206 and 205 potentially dilutive shares are generally not considered for the earnings per share calculation, because to do so would have been anti-dilutive and hence decreased the net loss per share. Instruments outstanding and not included in the calculation of diluted earnings per share Number of shares in m Call options sold Employee stock compensation options Deferred shares Not included in the calculation of diluted earnings per share, because to do so would have been anti-dilutive.