Deutsche Bank reported net income of EUR 4.3 billion for the full year 2011

Autor: Bancherul.ro
2012-02-02 16:54

Deutsche Bank press release:
- Fourth quarter net income of EUR 186 million
- Income before income taxes (IBIT) was EUR 5.4 billion in
2011, after impairments of EUR 0.6 billion in the Corporate
Investment division
- CIB and PCAM IBIT at EUR 6.6 billion, after EUR 1.0
billion specific charges in CB&S and EUR 0.2 billion special
net negative impacts in PBC
- Record IBIT in classic banking businesses of EUR 3.7
billion
- Record Group revenues of EUR 33 billion
- Pre-tax return on average active equity of 10%
- Basel 2.5 Core Tier 1 capital ratio of 9.5%; above EBA
requirement ahead of time
- Liquidity reserves of EUR 219 billion
- Cash dividend recommendation of EUR 0.75 per share

Corporate & Investment Bank (CIB): Resilient 2011
performance despite difficult market conditions and low
levels of industry wide activity

- IBIT of EUR 4.0 billion after EUR 0.7 billion specific
charges mainly related to litigation and a charge of EUR 0.3
billion relating to an impairment of a German VAT claim
- #1 Global Fixed Income market share, #1 US Fixed Income
market share (source: Greenwich Associates), #1 Global Prime
Brokerage (source: Global Custodian), #1 EMEA Corporate
Finance fees (source: Dealogic)
- Sales & Trading revenues of EUR 11 billion reflect solid
performance, despite lower client activity and high market
volatility during the second half of the year, validating
the success of our recalibrated model
- Origination and Advisory impacted by lower market issuance
levels
- Global Transaction Banking (GTB) generated record full
year revenues of EUR 3.6 billion and IBIT of EUR 1.1 billion
driven by strong results across all businesses

Private Clients and Asset Management (PCAM): Record full
year IBIT of EUR 2.5 billion

- Private & Business Clients (PBC) record IBIT of EUR 1.8
billion. Revenues in PBC include a negative impact of EUR
0.5 billion related to impairments on Greek government bonds
as well as a positive one-time impact of EUR 0.3 billion
related to our stake in Hua Xia Bank, driven by the
application of equity method accounting
- Asset and Wealth Management (AWM) IBIT of EUR 767 million,
more than triple the previous year's performance,
reflecting the successful integration of Sal. Oppenheim and
the benefits of efficiency measures

Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today reported
preliminary unaudited figures for the fourth quarter and the
full year 2011. For the year 2011, net income was EUR 4.3
billion versus EUR 2.3 billion in 2010. Diluted earnings per
share were EUR 4.30 compared with EUR 2.92 for the year
ended December 31, 2010. Per the group's target
definition, which excludes significant gains and charges,
pre-tax return on average active equity was 9.8% in 2011
compared to 14.7% in 2010.

The Management Board and Supervisory Board will propose a
cash dividend of EUR 0.75 per share for 2011 at the annual
general meeting.

Dr. Josef Ackermann, Chairman of the Management Board said:
"Once again, Deutsche Bank has proved its ability to deliver
substantial earnings in challenging conditions. In 2011, our
classic banking business produced record earnings, thus
counterbalancing the impact of weak markets in investment
banking. We also significantly strengthened our capital
base, boosted our liquidity reserves and reinforced our
funding position. All in all, we have built an excellent
platform to continue on the successful path of recent
years."

Group Results of Operation

Net revenues for the quarter were EUR 6.9 billion, down 7%
from the record fourth quarter revenues of EUR 7.4 billion
in 2010.

In CIB, net revenues were down 26% in the fourth quarter
2011 to EUR 3.4 billion versus EUR 4.6 billion in the fourth
quarter 2010. The fourth quarter 2011 featured continued
market uncertainty and lack of investor risk appetite
leading to subdued market activity. The European sovereign
debt crisis had a particularly marked effect on activity
levels in Europe, where Deutsche Bank has a substantial
portion of its business.

PCAM net revenues were EUR 3.5 billion in the fourth quarter
2011, up 22% compared to revenues of EUR 2.8 billion in the
fourth quarter 2010. The increase primarily reflects the
full quarter revenue contribution from Postbank. In 2010
Postbank was only fully consolidated for the month of
December. In the fourth quarter 2011 revenues were impacted
by impairments of EUR 144 million on Greek government bonds
and lower revenues from investment products in Asset
Management and Private Wealth Management due to a more
challenging market environment.

Net revenues for the full year 2011 were EUR 33.2 billion,
up EUR 4.7 billion, or 16% versus the full year 2010. The
increase is mainly a result of revenues from businesses
acquired in 2010, namely Postbank and, to a lesser extent,
Sal. Oppenheim and the commercial banking activities
acquired from ABN AMRO in the Netherlands.

Provision for credit losses was EUR 540 million in the
quarter, versus EUR 406 million in the fourth quarter 2010.
The increase was mainly attributable to the full quarter
inclusion of Postbank, which contributed EUR 178 million for
the quarter. This number excludes releases from Postbank
related loan loss allowances recorded prior to consolidation
of EUR 91 million. The impact of such releases is reported
as net interest income on the group level. Excluding
Postbank, provisions for credit losses were up EUR 13
million versus the prior year quarter driven by an increase
in provisions for IAS 39 reclassified assets being partially
offset by improved performance in the Private & Business
Clients Advisory Banking Germany and International credit
portfolios.

Provision for credit losses was EUR 1.8 billion for the full
year 2011 versus EUR 1.3 billion in 2010. The increase was
mainly attributable to Postbank, which contributed EUR 761
million for the year. This number excludes releases from
Postbank related loan loss allowances recorded prior to
consolidation of EUR 402 million. Excluding Postbank,
provisions were down EUR 139 million primarily reflecting
improved performance in the Private & Business Clients
Advisory Banking Germany and International.

Noninterest expenses were EUR 6.7 billion in the quarter, an
increase of EUR 395 million, or 6%, compared to EUR 6.3
billion in the fourth quarter 2010. General and
administrative expenses increased in the fourth quarter 2011
to EUR 3.7 billion versus EUR 3.1 billion in the fourth
quarter 2010. Consolidation effects from acquisitions were
responsible for approximately EUR 240 million of this
increase. General and administrative expenses in the fourth
quarter 2011 also reflected approximately EUR 380 million of
litigation related expenses in CB&S, charges for the UK and
German bank levies of EUR 154 million in C&A and an
impairment charge related to the Cosmopolitan Resort of EUR
135 million in CI. These increases were partially offset by
efficiency gains related to the Complexity Reduction
Program. Compensation and benefits expenses of EUR 2.8
billion in the fourth quarter 2011 decreased by 9% compared
to EUR 3.1 billion in the fourth quarter 2010. Lower
performance related compensation expenses were partially
offset by increases in salaries and benefits due to
consolidation effects from acquisitions.

For the full year 2011, noninterest expenses were EUR 26.0
billion, an increase of EUR 2.7 billion, or 11%, versus EUR
23.3 billion for the full year 2010. EUR 2.9 billion, the
entirety of the increase, were attributable to acquisitions,
most notably the full year consolidation of Postbank and to
a lesser extent the commercial banking operations of ABN
AMRO in the Netherlands and Sal. Oppenheim. Excluding
consolidation effects, noninterest expenses were slightly
down. Lower performance related compensation expenses and
efficiency gains from the Complexity Reduction Program and
the CIB integration program as well as lower policyholder
benefits and claims (mainly Abbey Life) were partly offset
by higher specific charges in CB&S (EUR 655 million
litigation related expenses and a specific charge of EUR 310
million relating to the impairment of a German VAT claim),
increased costs from Corporate Investments and the first
time consideration of the German and UK bank levies. The
complexity reduction program successfully achieved
incremental savings of approximately EUR 550 million which
is well above the EUR 500 million incremental savings
planned for 2011. Moreover the increased savings were
achieved with a EUR 40 million under spend of the planned
EUR 190 million cost-to-achieve.

Loss before income taxes was EUR 351 million in the fourth
quarter 2011 compared to income before income taxes of EUR
707 million in the fourth quarter 2010. The result reflects
the extreme market conditions due to the sovereign debt
crisis and the subsequent slowdown in client activity,
mainly impacting CB&S.

Income before income taxes was EUR 5.4 billion for the full
year 2011, an increase of EUR 1.4 billion compared to the
full year 2010. Each of our classic banking businesses
increased pre-tax profit versus full year 2010.

Net income for the fourth quarter 2011 was EUR 186 million
compared to a net income of EUR 605 million in the fourth
quarter 2010. In the current quarter a tax benefit of EUR
537 million was recorded versus an income tax expense of EUR
102 million for the fourth quarter 2010. The tax benefit
recorded in the current quarter primarily benefited from
changes in the recognition and measurement of deferred taxes
and a favorable geographic mix of income. The income tax
expense in the fourth quarter 2010 mainly benefited from
improved U.S. income tax positions.

Net income in the full year 2011 was EUR 4.3 billion versus
EUR 2.3 billion in 2010. In 2011, income tax expense was EUR
1.1 billion, which led to an effective tax rate of 20%
compared to an income tax expense of EUR 1.6 billion and an
effective tax rate of 41% in 2010. The current year's
effective tax rate primarily benefited from changes in the
recognition and measurement of deferred taxes, a favorable
geographic mix of income and the partial tax exemption of
net gains related to our stake in Hua Xia Bank. The prior
year's effective tax rate of 41% was impacted by a
Postbank related charge of EUR 2.3 billion which did not
result in a tax benefit.

Core Tier 1 capital ratio was 9.5% at the end of the fourth
quarter and the Tier 1 capital ratio was 12.9% in each case
applying the Basle 2.5 rules. During the fourth quarter,
risk weighted assets increased by EUR 44 billion including a
EUR 54 billion increase in relation to the implementation of
the Basel 2.5 requirements. Other notable movements included
a EUR 23 billion reduction in credit risk weighted assets
and a EUR 14 billion increase in risk weighted assets from
operational risk principally due to a new safety margin
taken to cover unforeseen legal risks from the financial
crisis. Core Tier 1 capital increased from EUR 34 billion to
EUR 36 billion including a EUR 0.9 billion Basel 2.5 effect
of lower capital deductions in relation to trading book
securitization positions now reflected as risk weighted
assets.

Total assets were EUR 2,164 billion at year end 2011 versus
EUR 1,906 billion at year end 2010. On an adjusted basis,
which reflects netting of derivatives and certain other
balances, total assets were EUR 1,267 billion, a year over
year increase of EUR 57 billion, predominately driven by
increases in interest earning deposits with banks and
foreign exchange effects. The leverage ratio, as per our
target definition, improved to 21 from 23 at the end of 2010
driven by increased adjusted equity predominately from
retained earnings.

Segment Results of Operations

Corporate & Investment Bank Group Division (CIB)

Corporate Banking & Securities Corporate Division (CB&S)

Current quarter performance was severely impacted by ongoing
concerns around the European sovereign crisis and an overall
uncertain macroeconomic environment. This resulted in
significantly reduced client activity across the industry
and a decline in volumes across many products.

Sales & Trading (debt and other products) net revenues were
EUR 1.0 billion in the fourth quarter 2011, a decrease of
EUR 569 million, or 35%, compared to the fourth quarter
2010. Credit revenues were significantly lower in both flow
and client solutions, reflecting weakened credit markets,
lower client volumes and reduced liquidity. RMBS and
Commodities revenues were also significantly lower due to
subdued levels of activity and a less favorable environment.
Emerging Markets revenues were higher despite the difficult
market environment and Money Markets revenues were
significantly higher benefitting from volatile markets.
Revenues in Foreign Exchange and Rates were in line with the
prior year quarter reflecting strong client activity, with
record client volumes for a fourth quarter in Foreign
Exchange. During the quarter, Deutsche Bank won a number of
International Financing Review (IFR) Awards, including Bond
House of the Year.

For the full year 2011, Sales & Trading (debt and other
products) net revenues were EUR 8.6 billion, a decrease of
EUR 1.3 billion, or 14%, compared to the full year 2010
which included charges related to Ocala Funding LLC of EUR
360 million. Revenues in Credit were significantly lower
than the prior year, predominantly in Flow Credit,
reflecting weakened credit markets, lower client volumes
across the industry, and reduced liquidity especially in the
latter half of the year. However absolute performance in
client solutions was strong reflecting demand for
restructuring capabilities. Deutsche Bank was voted Credit
Derivatives House of the Year by IFR and Risk magazines.
Rates and Emerging Markets revenues were lower than the
prior year primarily due to lower flow client volumes as a
result of market uncertainty, although Deutsche Bank was
ranked number one in Interest Rate Derivatives globally for
the second consecutive year (source: Greenwich Associates)
and was awarded Interest Rate Derivatives House of the Year
by Risk magazine. RMBS revenues were significantly higher
than the prior year as a result of a successful business
realignment and the absence of prior year losses. Money
Markets revenues were higher than the prior year, driven by
strong client activity and volatile markets. Foreign
Exchange revenues were very strong, with record annual
client volumes offsetting lower margins and Deutsche Bank
was ranked #1 by the Euromoney FX Survey by market share for
the seventh consecutive year. Commodities delivered record
annual revenues despite a challenging environment,
reflecting successful strategic investment. Deutsche Bank
was awarded Most Innovative Commodity House by The Banker
magazine. During 2011, Deutsche Bank was also ranked number
one in Global and U.S. Fixed Income for the second
consecutive year (source: Greenwich Associates).

Sales & Trading (equity) generated net revenues of EUR 539
million in the fourth quarter 2011, a decrease of EUR 333
million, or 38%, compared to the fourth quarter 2010,
reflecting more challenging market conditions and lower
levels of client activity. Cash Trading revenues were lower
than 2010 due to the deterioration in sentiment in equity
markets particularly in Europe, although market share
increased in the U.S. (source Bloomberg). Equity Derivatives
revenues were significantly lower reflecting reduced client
activity and volatile market conditions while Prime Finance
revenues were lower reflecting reduced levels of client
leverage.

For the full year, Sales & Trading (equity) generated
revenues of EUR 2.4 billion, a decrease of EUR 686 million,
or 22%, compared to 2010. This development reflects a more
difficult market environment, with higher volatility and
declining markets impacting client sentiment and activity,
especially in Europe, which accounts for a high proportion
of our business. Cash Trading revenues were lower than 2010
due to the impact of the deterioration in equity markets
during 2011 and lower client activity in Europe. Deutsche
Bank increased its cash equities market share in the U.S.
according to Greenwich Associates, which is a result of
strategic investments, and was ranked number one in European
Research (source: Institutional Investor). Equity
Derivatives revenues were lower as a result of a more
challenging environment and lower client activity, although
record revenues were achieved in the U.S.. Prime Finance
revenues were slightly lower reflecting reduced levels of
client leverage, partially offset by our strong market
position. During 2011, Deutsche Bank was ranked #1 Global
Prime Broker (source: Global Custodian) for the fourth
consecutive year.

Origination and Advisory generated revenues of EUR 430
million in the fourth quarter 2011, a decrease of EUR 380
million, or 47%, compared to the fourth quarter 2010.
Advisory revenues were EUR 172 million, a decrease of EUR 9
million, or 5%, compared to the prior year quarter. Debt
Origination revenues of EUR 191 million, and Equity
Origination revenues of EUR 67 million were significantly
lower than the fourth quarter 2010, down 35% and 80%
respectively, reflecting considerably reduced levels of
market issuance.

For the full year, Origination and Advisory generated
revenues of EUR 2.2 billion in 2011, a decrease of EUR 244
million, or 10%, compared to full year 2010. Deutsche Bank
ended the year ranked #6 globally according to Dealogic,
very close to the number five ranked firm, and ranked the
clear number one in EMEA for a second consecutive year.
Deutsche Bank was also ranked number four in Asia, up from
number six in the prior year. Advisory revenues were EUR 621
million, an increase of EUR 48 million, or 8%, compared to
2010, and Deutsche Bank was ranked #2 in EMEA and #4 in
crossborder M&A. Debt Origination revenues were EUR 1.1
billion, a decrease of EUR 144 million, or 12%, compared to
2010. Deutsche Bank was ranked #3 in High Yield and #2 in
the All International Bonds league table (source: Thomson
Reuters). Equity Origination revenues were EUR 559 million,
a decrease of EUR 147 million, or 21%, compared to 2010.
Deutsche Bank was ranked #1 in EMEA. All ranks sourced from
Dealogic unless stated.

Loan products revenues were EUR 344 million in the fourth
quarter 2011, an increase of EUR 61 million, or 22%, on the
prior year quarter. For the full year, revenues were EUR 1.5
billion in 2011, a decrease of EUR 78 million, or 5%, from
last year. The decrease was mainly driven by the transfer of
a single loan exposure to Corporate Investments at the
beginning of 2011.

Net revenues from Other products were EUR 106 million in the
fourth quarter 2011, a decrease of EUR 29 million from the
prior year quarter. For the full year, revenues were EUR 138
million in 2011, compared to EUR 449 million in 2010. The
decrease was mainly driven by lower mark-to-market gains on
investments held to back insurance policyholder claims in
Abbey Life, which are offset in noninterest expenses.

In provision for credit losses CB&S recorded a net charge of
EUR 145 million in the fourth quarter 2011, compared to a
net charge of EUR 89 million in the prior year quarter. For
the full year, CB&S recorded a net charge of EUR 304 million
in 2011, compared to a net charge of EUR 375 million in
2010.

Noninterest expenses were EUR 2.7 billion in the fourth
quarter 2011, a decrease of EUR 284 million, or 9%, compared
to the fourth quarter 2010. This decrease was primarily
driven by lower performance related compensation expenses
and the non-recurrence of integration related severance
expenses included in the prior year quarter, partly offset
by specific charges of approximately EUR 380 million, mainly
related to litigation. For the full year, noninterest
expenses were EUR 11.7 billion in 2011, a decrease of EUR
472 million compared to 2010. This decrease was primarily
driven by lower performance related compensation expenses,
efficiency savings and the impact of the aforementioned
effects from Abbey Life, partly offset by EUR 655 million of
specific charges, mainly related to litigation and a
specific charge of EUR 310 million relating to the
impairment of a German VAT claim.

Loss before income taxes in CB&S was EUR 422 million in the
fourth quarter 2011, compared to a profit of EUR 603 million
in the prior year quarter. For the full year, income before
income taxes was EUR 2.9 billion in 2011, compared to EUR
5.0 billion in the prior year.

Global Transaction Banking Corporate Division (GTB)

In the fourth quarter 2011, GTB generated net revenues of
EUR 929 million, an increase of EUR 62 million, or 7%,
compared to the fourth quarter 2010. Most businesses
generated higher revenues than in the prior year quarter.
Cash Management improved fee income predominantly on the
back of increased payment volumes and FX transactions. Trade
Finance generated stronger net interest revenues from
substantial growth in financing products.

For the full year, GTB's net revenues were a record EUR
3.6 billion, an increase of 7%, or EUR 229 million, compared
to 2010 which included EUR 216 million related to negative
goodwill from the acquisition of the commercial banking
activities in the Netherlands. This increase was driven by a
record performance across all businesses with growth in fee
and interest income. Trust & Securities Services profited
from improved market conditions in the custody and
depositary receipt business. Trade Finance further
capitalized on high demand for international trade products
and financing. In Cash Management, revenues increased on the
basis of higher fees from strong payment volumes as well as
higher net interest income mainly driven by slightly
improved interest rate levels in Asia and the euro area
compared to the prior year period.

GTB's provision for credit losses was EUR 64 million in
the fourth quarter 2011, an increase of EUR 10 million
compared to the prior year quarter, reflecting specific
Trade Finance related items in Europe. For the full year,
provision for credit losses was EUR 158 million. The net
increase of EUR 45 million versus 2010 was mainly related to
the commercial banking activities acquired in the
Netherlands.

Noninterest expenses were EUR 581 million in the fourth
quarter 2011, down EUR 115 million, or 17%, compared to the
fourth quarter 2010. The decrease was mainly driven by the
non-recurrence of significant severance charges of EUR 130
million in the prior year quarter which related to specific
measures associated with the realignment of infrastructure
areas and sales units. This was partially offset by higher
expenses related to the amortization of an upfront premium
paid for credit protection received in the aforementioned
acquisition in the fourth quarter 2011.

For the full year, GTB's noninterest expenses were EUR 2.3
billion, a slight increase compared to 2010. The increase
was driven by the aforementioned acquisition in the second
quarter 2010 including amortization costs for the credit
protection and higher insurance related expenses. These
factors were partially offset by the non-recurrence of the
aforementioned severance charges. The prior year included
the impact of an impairment of intangible assets.

Income before income taxes was EUR 284 million for the
quarter, an increase of EUR 167 million, or 144%, compared
to the prior year quarter. For the full year, income before
income taxes was EUR 1.1 billion, an increase of EUR 158
million, or 16%, compared to EUR 965 million for 2010.

Private Clients and Asset Management Group Division (PCAM)

Asset and Wealth Management Corporate Division (AWM)

AWM recorded net revenues of EUR 909 million in the fourth
quarter 2011, down EUR 101 million, or 10%, compared to the
fourth quarter last year. Revenues in Private Wealth
Management (PWM) decreased by EUR 95 million, primarily
driven by non-recurring items in the fourth quarter 2010
related to Sal. Oppenheim. Furthermore, negative market
conditions and low client activities resulted in lower
revenues across the businesses mostly impacting
discretionary portfolio management / fund management and
advisory / brokerage products. In Asset Management (AM), net
revenues declined by EUR 6 million compared to the fourth
quarter 2010. Revenues from discretionary portfolio
management/fund management were down by EUR 58 million due
to lower asset based fees and performance fees resulting
from negative market conditions and flows. This decrease was
partly offset by EUR 52 million higher revenues in AM's
other products, primarily due to gains on sales of RREEF
investments.

For the full year 2011, net revenues in AWM were EUR 3.8
billion, up EUR 88 million, or 2%, versus 2010. In PWM,
revenues increased by EUR 51 million. Revenues from other
products were EUR 244 million in 2011 compared to EUR 179
million in the previous year. This increase mainly resulted
from effects related to the wind-down of various non-core
businesses in Sal. Oppenheim in 2010. Revenues from deposits
and payment services were up EUR 19 million versus 2010,
mainly due to higher deposit volumes driven by dedicated
product initiatives. Discretionary portfolio management/fund
management revenues decreased by EUR 28 million driven by
reduced asset based fees and lower performance fees
resulting from negative market conditions in the second half
of 2011. PWM's revenues from advisory/brokerage and from
credit products were essentially unchanged versus the
previous year. In AM, revenues increased by EUR 37 million,
primarily driven by EUR 83 million gains on sales in 2011,
mainly related to RREEF investments reported in revenues
from other products. Partly offsetting were lower revenues
from discretionary portfolio management/fund management
driven by weak market conditions and flows.

Provision for credit losses was EUR 11 million in the fourth
quarter 2011, essentially in line with the same quarter last
year. For the full year, provision for credit losses was EUR
55 million, up EUR 16 million compared to 2010, primarily
attributable to Sal. Oppenheim.

Noninterest expenses were EUR 733 million in the fourth
quarter 2011, down EUR 204 million, or 22%, compared to the
fourth quarter 2010. In PWM, noninterest expenses decreased
by EUR 164 million, mainly driven by the non-recurrence of
integration costs related to Sal. Oppenheim in the fourth
quarter 2010. AM's noninterest expenses declined by EUR 40
million, driven by measures to improve platform efficiency.

For the full year 2011, noninterest expenses were EUR 2.9
billion, a decrease of EUR 485 million, or 14%, compared to
2010. In PWM, noninterest expenses decreased by EUR 344
million, mainly driven by benefits in 2011 resulting from
the successful integration of Sal. Oppenheim. In AM,
non-interest expenses declined by EUR 141 million mainly
reflecting the impact of measures to improve platform
efficiency.

AWM recorded in the fourth quarter 2011 income before income
taxes of EUR 165 million, compared to EUR 59 million in the
fourth quarter 2010. The increase included EUR 71 million in
PWM and EUR 35 million in AM.

For the full year 2011, AWM recorded income before income
taxes of EUR 767 million versus EUR 210 million in 2010. The
increase included EUR 378 million in PWM and EUR 179 million
in AM.

Invested Assets in AWM were EUR 813 billion as of 31
December 2011, up EUR 33 billion compared to September 30,
2011. During the fourth quarter 2011, invested assets in PWM
increased by EUR 5 billion, mainly driven by foreign
currency movements in the fourth quarter 2011, partly offset
by net outflows of EUR 3 billion resulting from certain
customer relationships. In AM, invested assets were up EUR
28 billion, including net inflows of EUR 8 billion, mainly
in the cash business. The increase also reflected EUR 10
billion from foreign currency movements and EUR 9 billion
from market appreciation.

From a full year perspective, AWM's invested assets
decreased by EUR 13 billion, thereof EUR 7 billion in PWM
and EUR 6 billion in AM. The decline in PWM included an
impact of EUR 13 billion due to market depreciation, partly
offset by EUR 4 billion net new assets, mainly in Asia and
Germany. The decrease in AM included EUR 13 billion net
outflows. Outflows in the cash and equity business,
reflecting investor uncertainty, were partly offset by
inflows in higher margin products. Partly compensating the
overall net outflows in AM were EUR 7 billion due to foreign
currency movements.

Private & Business Clients Corporate Division (PBC)

Net revenues in the fourth quarter 2011 were EUR 2.6
billion, up EUR 731 million, or 40%, compared to the fourth
quarter 2010. The improvement was attributable to revenues
from other products which increased EUR 767 million compared
to the fourth quarter 2010. This increase was mainly driven
by the consolidation of Postbank, which began on December 3,
2010 and contributed EUR 720 million to the improvement in
revenues, after impairments of EUR 135 million on Greek
government bonds in the fourth quarter 2011. The remaining
increase in revenues from other products in PBC mostly
related to our equity method investment in Hua Xia Bank.
PBC's revenues from advisory / brokerage revenues were
down by EUR 25 million, or 11%, compared to the fourth
quarter 2010 primarily in Advisory Banking Germany. Revenues
from discretionary portfolio management/fund management
decreased by EUR 25 million, or 34%. Revenues in both
product categories were affected by the difficult market
conditions in the fourth quarter 2011. Revenues from
deposits and payment services were EUR 513 million,
essentially unchanged compared to the fourth quarter 2010.
Negative effects from lower margins were offset by the
positive impact of higher volumes. Credit product revenues
increased by EUR 15 million, compared to the fourth quarter
2010, driven by higher commercial and consumer loan revenues
in Advisory Banking International as well as higher revenues
from mortgages in Germany.

For the full year 2011, net revenues were EUR 10.6 billion,
up EUR 4.5 billion, or 73%, versus 2010. This development
was mainly attributable to the aforementioned consolidation
of Postbank, which contributed EUR 4.2 billion. PBC's
revenues in 2011 were impacted by EUR 527 million
impairments on Greek government bonds, of which EUR 465
million were in Postbank and EUR 62 million were in Advisory
Banking Germany. The remaining increase in PBC's revenues
included a one-time positive impact of EUR 263 million
related to our stake in Hua Xia Bank, driven by the
application of equity method accounting upon receiving all
substantive regulatory approvals to increase our stake, and
higher deposit and payment revenues of EUR 124 million
resulting from increased deposit volumes.

Provision for credit losses was EUR 311 million in the
fourth quarter 2011, of which EUR 178 million related to
Postbank. This number excludes releases from Postbank
related loan loss allowance recorded prior to consolidation
of EUR 91 million. The impact of such releases is reported
as net interest income. Excluding Postbank, provisions for
credit losses were EUR 133 million, down EUR 51 million
compared to the same quarter last year. This decrease was
driven by lower provisions of EUR 31 million in Advisory
Banking Germany, mainly in the consumer finance and
mortgages business, and of EUR 20 million in Advisory
Banking International.

For the full year 2011, provision for credit losses was EUR
1.3 billion, of which EUR 761 million related to Postbank.
This number excludes aforementioned releases of EUR 402
million for the full year. Excluding Postbank, provisions
for credit losses were EUR 548 million, down EUR 142 million
compared to 2010. The decrease was driven by both Advisory
Banking Germany and Advisory Banking International, mainly
Poland.

Noninterest expenses were EUR 2.0 billion in the fourth
quarter 2011, an increase of EUR 629 million, or 46%,
compared to the fourth quarter 2010. The increase included
EUR 553 million related to the consolidation of Postbank.
Excluding Postbank and costs related to Postbank integration
reflected in Advisory Banking Germany, noninterest expenses
were up EUR 46 million, or 4%, including a provision taken
for a credit card joint venture with Hua Xia Bank.

For the full year, noninterest expenses were EUR 7.3
billion, an increase of EUR 2.8 billion, or 63%, compared to
2010. The increase was predominantly driven by the
aforementioned consolidation of Postbank. Excluding the
Postbank related increase, noninterest expenses were down by
EUR 64 million, mainly resulting from measures to reduce
complexity and to improve platform efficiency.

Income before income taxes was EUR 227 million in the fourth
quarter, an increase of EUR 5 million compared to the fourth
quarter 2010. The contribution of Consumer Banking Germany
to income before income taxes was EUR 90 million in the
fourth quarter 2011, after a negative impact of EUR 108
million related to Greek government bonds (impairment charge
of EUR 135 million, net of noncontrolling interests at
segment level of EUR 26 million). Income before income taxes
in Consumer Banking Germany was EUR 72 million in the fourth
quarter 2010. Advisory Banking Germany contributed EUR 85
million (compared to EUR 140 million in the fourth quarter
2010) and Advisory Banking International contributed EUR 51
million (compared to EUR 11 million in the fourth quarter
2010), respectively.

For the full year 2011, income before income taxes was EUR
1.8 billion, an increase of EUR 892 million compared to
2010. Consumer Banking Germany contributed EUR 643 million
to income before income taxes in 2011, after a negative
impact of EUR 373 million related to Greek government bonds
(the aforementioned impairment charge of EUR 465 million,
net of noncontrolling interests at segment level of EUR 92
million), and EUR 72 million in 2010. Advisory Banking
Germany contributed EUR 572 million and EUR 663 million to
income before income taxes in 2011 and 2010, respectively.
Income before income taxes in Advisory Banking International
was EUR 567 million in 2011 and EUR 155 million in 2010.

Invested assets were EUR 304 billion as of December 31,
2011, essentially unchanged compared to September 30, 2011,
with EUR 2 billion net outflows, primarily in deposits, and
EUR 3 billion due to market appreciation offsetting each
other. For the full year 2011, invested assets remained
virtually unchanged. This was mainly driven by EUR 9 billion
due to market depreciation, partly offset by EUR 8 billion
net inflows, mainly in deposits.

PBC's total number of clients was 28.6 million, of which
14.1 million related to Postbank.

Corporate Investments Group Division (CI)

Net revenues in the fourth quarter 2011 were negative EUR
193 million, after an impairment charge of EUR 407 million
related to our interest in the generic pharmaceutical group
Actavis. Net revenues also included revenues from our
consolidated investments in BHF-BANK, Maher Terminals and
The Cosmopolitan of Las Vegas and from our interest in
Actavis. In the comparison period 2010, net revenues were
negative EUR 40 million.

For the full year, net revenues were EUR 394 million.
Recurring revenues from our aforementioned positions were
partly offset by impairment charges of EUR 457 million
related to Actavis (of which EUR 50 million were recorded in
the first nine months of 2011). In the full year 2010,
CI's revenues of negative EUR 1.8 billion mainly included
a Postbank related charge of EUR 2.3 billion.

Noninterest expenses were EUR 520 million in the fourth
quarter 2011 versus EUR 343 million in the fourth quarter
2010. The increase compared to the prior year quarter mainly
related to The Cosmopolitan of Las Vegas, for which an
impairment charge of EUR 135 million on the property was
recorded in the fourth quarter 2011. Also contributing to
the increase was our investment in BHF-BANK, including
special items of EUR 97 million.
For the full year, noninterest expenses were EUR 1.5 billion
versus EUR 967 million in the prior year. The increase was
essentially due to The Cosmopolitan of Las Vegas and was
mainly related to the start of its operations at the end of
2010 and to a lesser extent to the aforementioned impairment
charge on the property.

CI recorded a loss before income taxes of EUR 722 million in
the fourth quarter 2011, compared to a loss before income
taxes of EUR 390 million in the same period 2010.

For the full year 2011, loss before income taxes amounted to
EUR 1.1 billion compared to a loss before income taxes of
EUR 2.8 billion in the prior year.

Consolidation & Adjustments (C&A)

Income before income taxes in C&A was EUR 117 million in the
fourth quarter 2011 compared to EUR 98 million in the fourth
quarter 2010. Results in the current quarter included
positive effects from different accounting methods used for
management reporting and IFRS, driven by movements of Euro
and U.S. dollar short-term interest-rates, and from a
reversal of interest accruals related to income tax
liabilities and provisions. In the fourth quarter 2011 these
positive effects were partly offset by charges for bank
levies of EUR 154 million, which in this quarter were mainly
related to the UK.

For the full year 2011, loss before income taxes was EUR 77
million, compared to a loss of EUR 363 million in the prior
year. The loss in 2011 included net positive effects from
different accounting methods used for management reporting
and IFRS, whereas these effects were negative in the prior
year. In addition, 2011 included charges for bank levies of
EUR 247 million, primarily related to Germany and the UK.
These were nearly offset by noncontrolling interests, which
are deducted from income before income taxes of the
divisions and reversed in C&A.

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