Deutsche Bank Annual Report 2011 on Form 20-F i As filed with the Securities and Exchange Commission on March 20, 2012 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C 20549 Form 20-F x REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 or ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report……………………………… Commission file number 1-15242 Deutsche Bank Aktiengesellschaft (Exact name of Registrant as specified in its charter) Deutsche Bank Corporation (Translation of Registrant’s name into English) Federal Republic of Germany (Jurisdiction of incorporation or organization) Taunusanlage 12, 60325 Frankfurt am Main, Germany (Address of principal executive offices) Karin Dohm, +49-69-910-33529, karin.dohm@db.com, Taunusanlage 12, 60325 Frankfurt am Main, Germany (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act See following page Securities registered or to be registered pursuant to Section 12(g) of the Act NONE (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act NONE (Title of Class) Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: Ordinary Shares, no par value 904,610,641 (as of December 31, 2011) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act Yes x No If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Yes No x Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days Yes x No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files) Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or non-accelerated filer See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one): Large accelerated filer x Accelerated filer Non-accelerated filer Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: U.S GAAP International Financial Reporting Standards Other x as issued by the International Accounting Standards Board If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes No x Deutsche Bank Annual Report 2011 on Form 20-F ii i Securities registered or to be registered pursuant to Section 12(b) of the Act (as of February 29, 2012) Title of each class Ordinary shares, no par value 6.375 % Noncumulative Trust Preferred Securities of Deutsche Bank Capital Funding Trust VIII 6.375 % Noncumulative Company Preferred Securities of Deutsche Bank Capital Funding LLC VIII* Subordinated Guarantees of Deutsche Bank AG in connection with Capital Securities* 6.55 % Trust Preferred Securities of Deutsche Bank Contingent Capital Trust II 6.55 % Company Preferred Securities of Deutsche Bank Contingent Capital LLC II* Subordinated Guarantees of Deutsche Bank AG in connection with Capital Securities* 6.625 % Noncumulative Trust Preferred Securities of Deutsche Bank Capital Funding Trust IX 6.625 % Noncumulative Company Preferred Securities of Deutsch Bank Capital Funding LLC IX* Subordinated Guarantees of Deutsche Bank AG in connection with Capital Securities* 7.350 % Noncumulative Trust Preferred Securities of Deutsche Bank Capital Funding Trust X 7.350 % Noncumulative Company Preferred Securities of Deutsche Bank Capital Funding LLC X* Subordinated Guarantees of Deutsche Bank AG in connection with Capital Securities* 7.60 % Trust Preferred Securities of Deutsche Bank Contingent Capital Trust III 7.60 % Company Preferred Securities of Deutsche Bank Contingent Capital LLC III* Subordinated Guarantees of Deutsche Bank AG in connection with Capital Securities* 8.05 % Trust Preferred Securities of Deutsche Bank Contingent Capital Trust V 8.05 % Company Preferred Securities of Deutsche Bank Contingent Capital LLC V* Subordinated Guarantees of Deutsche Bank AG in connection with Capital Securities* DB Agriculture Short Exchange Traded Notes due April 1, 2038 DB Agriculture Long Exchange Traded Notes due April 1, 2038 DB Agriculture Double Short Exchange Traded Notes due April 1, 2038 DB Agriculture Double Long Exchange Traded Notes due April 1, 2038 DB Commodity Short Exchange Traded Notes due April 1, 2038 DB Commodity Long Exchange Traded Notes due April 1, 2038 DB Commodity Double Long Exchange Traded Notes due April 1, 2038 DB Commodity Double Short Exchange Traded Notes due April 1, 2038 DB Gold Double Long Exchange Traded notes due February 15, 2038 DB Gold Double Short Exchange Traded notes due February 15, 2038 DB Gold Short Exchange Traded notes due February 15, 2038 ELEMENTS “Dogs of the Dow” Linked to the Dow Jones High Yield Select 10 Total Return Index due November 14, 2022 ELEMENTS Linked to the Morningstar® Wide Moat Focus(SM) Total Return Index due October 24, 2022 PowerShares DB Base Metals Short Exchange Traded Notes due June 1, 2038 PowerShares DB Base Metals Long Exchange Traded Notes due June 1, 2038 PowerShares DB Base Metals Double Short Exchange Traded Notes due June 1, 2038 PowerShares DB Base Metals Double Long Exchange Traded Notes due June 1, 2038 PowerShares DB Crude Oil Short Exchange Traded Notes due June 1, 2038 PowerShares DB Crude Oil Long Exchange Traded Notes due June 1, 2038 PowerShares DB Crude Oil Double Short Exchange Traded Notes due June 1, 2038 PowerShares DB German Bund Futures Exchange Traded Notes due March 31, 2021 PowerShares DB Italian Treasury Bond Futures Exchange Traded Notes due March 31, 2021 PowerShares DB Japanese Govt Bond Futures Exchange Traded Notes due March 31, 2021 PowerShares DB Inverse Japanese Govt Bond Futures Exchange Traded Notes due November 30, 2021 PowerShares DB US Deflation Exchange Traded Notes due November 30, 2021 PowerShares DB US Inflation Exchange Traded Notes due November 30, 2021 PowerShares DB 3x German Bund Futures Exchange Traded Notes due March 31, 2021 PowerShares DB 3x Italian Treasury Bond Futures Exchange Traded Notes due March 31, 2021 PowerShares DB 3x Japanese Govt Bond Futures Exchange Traded Notes due March 31, 2021 PowerShares DB 3x Inverse Japanese Govt Bond Futures Exchange Traded Notes due November 30, 2021 PowerShares DB 3x Long US Dollar Index Futures Exchange Traded Notes due June 30, 2031 PowerShares DB 3x Short US Dollar Index Futures Exchange Traded Notes due June 30, 2031 PowerShares DB 3x Long 25+ Year Treasury Bond Exchange Traded Notes due May 31, 2040 PowerShares DB 3x Short 25+ Year Treasury Bond Exchange Traded Notes due May 31, 2040 * For listing purpose only, not for trading Name of each exchange on which registered New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca NYSE Arca Deutsche Bank Annual Report 2011 on Form 20-F Table of Contents Table of Contents – ii iii PART I – Item 1: Identity of Directors, Senior Management and Advisers – Item 2: Offer Statistics and Expected Timetable – Item 3: Key Information – Selected Financial Data – Dividends – Exchange Rate and Currency Information – Capitalization and Indebtedness – Reasons for the Offer and Use of Proceeds – Risk Factors – Item 4: Information on the Company – 22 History and Development of the Company – 22 Business Overview – 24 Our Group Divisions – 28 Corporate & Investment Bank Group Division – 28 Corporate Banking & Securities Corporate Division – 29 Global Transaction Banking Corporate Division – 30 Private Clients and Asset Management Group Division – 31 Corporate Investments Group Division – 38 Infrastructure and Regional Management – 40 The Competitive Environment – 40 Regulation and Supervision – 43 Organizational Structure – 56 Property and Equipment – 57 Information Required by Industry Guide – 57 Item 4A: Unresolved Staff Comments – 57 Item 5: Operating and Financial Review and Prospects – 58 Overview – 58 Significant Accounting Policies and Critical Accounting Estimates – 58 Recently Adopted Accounting Pronouncements and New Accounting Pronouncements – 58 Operating Results (2011 vs 2010) – 59 Results of Operations by Segment (2011 vs 2010) – 69 Group Divisions – 72 Operating Results (2010 vs 2009) – 80 Results of Operations by Segment (2010 vs 2009) – 83 Liquidity and Capital Resources – 89 Post-Employment Benefit Plans – 89 Update on Key Credit Market Exposures – 89 Special Purpose Entities – 93 Tabular Disclosure of Contractual Obligations – 98 Research and Development, Patents and Licenses – 98 Item 6: Directors, Senior Management and Employees – 99 Directors and Senior Management – 99 Board Practices of the Management Board – 111 Group Executive Committee – 111 Compensation – 112 Expense for Long-Term Incentive Components – 128 Employees – 128 Share Ownership – 130 Item 7: Major Shareholders and Related Party Transactions – 133 Major Shareholders – 133 Related Party Transactions – 134 Interests of Experts and Counsel – 136 iii ii Deutsche Bank Annual Report 2011 on Form 20-F Item 8: Financial Information – 137 Consolidated Statements and Other Financial Information – 137 Significant Changes – 141 Item 9: The Offer and Listing – 142 Offer and Listing Details – 142 Plan of Distribution – 144 Selling Shareholders – 144 Dilution – 144 Expenses of the Issue – 144 Item 10: Additional Information – 145 Share Capital – 145 Memorandum and Articles of Association – 145 Material Contracts – 148 Exchange Controls – 148 Taxation – 149 Dividends and Paying Agents – 152 Statement by Experts – 152 Documents on Display – 153 Subsidiary Information Test – 153 Item 11: Quantitative and Qualitative Disclosures about Credit, Market and Other Risk – 154 Risk Management Executive Summary – 154 Risk Management Principles – 156 Risk Strategy and Appetite – 160 Risk Inventory – 161 Risk Management Tools – 163 Credit Risk – 166 Market Risk – 200 Operational Risk – 217 Liquidity Risk at Deutsche Bank Group (excluding Postbank) – 221 Capital Management – 228 Balance Sheet Management – 231 Overall Risk Position – 232 Item 12: Description of Securities other than Equity Securities – 234 PART II – 235 Item 13: Defaults, Dividend Arrearages and Delinquencies – 235 Item 14: Material Modifications to the Rights of Security Holders and Use of Proceeds – 235 Item 15: Controls and Procedures – 235 Disclosure Controls and Procedures – 235 Management’s Annual Report on Internal Control over Financial Reporting – 235 Report of Independent Registered Public Accounting Firm – 236 Change in Internal Control over Financial Reporting – 237 Item 16A: Audit Committee Financial Expert – 238 Item 16B: Code of Ethics – 238 Item 16C: Principal Accountant Fees and Services – 238 Item 16D: Exemptions from the Listing Standards for Audit Committees – 240 Item 16E: Purchases of Equity Securities by the Issuer and Affiliated Purchasers – 240 Item 16F: Change in Registrant’s Certifying Accountant – 241 Item 16G: Corporate Governance – 242 Item 16H: Mine Safety Disclosure – 245 PART III – 246 Item 17: Financial Statements – 246 Item 18: Financial Statements – 246 Item 19: Exhibits – 247 Signatures – 248 Financial Statements – F-2 Supplemental Financial Information – S-1 iv iii Deutsche Bank Annual Report 2011 on Form 20-F Deutsche Bank Aktiengesellschaft, which we also call Deutsche Bank AG, is a stock corporation organized under the laws of the Federal Republic of Germany Unless otherwise specified or required by the context, in this document, references to “we”, “us”, “our”, “the Group” and “Deutsche Bank Group” are to Deutsche Bank Aktiengesellschaft and its consolidated subsidiaries Due to rounding, numbers presented throughout this document may not add up precisely to the totals we provide and percentages may not precisely reflect the absolute figures Our registered address is Taunusanlage 12, 60325 Frankfurt am Main, Germany, and our telephone number is +49-69-910-00 Cautionary Statement Regarding Forward-Looking Statements We make certain forward-looking statements in this document with respect to our financial condition and results of operations In this document, forward-looking statements include, among others, statements relating to: — the potential development and impact on us of economic and business conditions and the legal and regulatory environment to which we are subject; — the implementation of our strategic initiatives and other responses thereto; — the development of aspects of our results of operations; — our expectations of the impact of risks that affect our business, including the risks of losses on our trading processes and credit exposures; and — other statements relating to our future business development and economic performance In addition, we may from time to time make forward-looking statements in our periodic reports to the United States Securities and Exchange Commission on Form 6-K, annual and interim reports, invitations to Annual General Meetings and other information sent to shareholders, offering circulars and prospectuses, press releases and other written materials Our Management Board, Supervisory Board, officers and employees may also make oral forward-looking statements to third parties, including financial analysts Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations We use words such as “believe”, “anticipate”, “expect”, “intend”, “seek”, “estimate”, “project”, “should”, “potential”, “reasonably possible”, “plan”, “aim” and similar expressions to identify forward-looking statements By their very nature, forward-looking statements involve risks and uncertainties, both general and specific We base these statements on our current plans, estimates, projections and expectations You should therefore not place too much reliance on them Our forward-looking statements speak only as of the date we make them, and we undertake no obligation to update any of them in light of new information or future events We caution you that a number of important factors could cause our actual results to differ materially from those we describe in any forward-looking statement These factors include, among others, the following: — the potential development and impact on us of economic and business conditions; — other changes in general economic and business conditions; — changes and volatility in currency exchange rates, interest rates and asset prices; — changes in governmental policy and regulation, including measures taken in response to economic, business, political and social conditions; — changes in our competitive environment; — the success of our acquisitions, divestitures, mergers and strategic alliances; v iv Deutsche Bank Annual Report 2011 on Form 20-F vi v — our success in implementing our strategic initiatives and other responses to economic and business conditions and the legal and regulatory environment and realizing the benefits anticipated therefrom; and — other factors, including those we refer to in “Item 3: Key Information – Risk Factors” and elsewhere in this document and others to which we not refer Use of Non-GAAP Financial Measures This document and other documents we have published or may publish contain non-GAAP financial measures Non-GAAP financial measures are measures of our historical or future performance, financial position or cash flows that contain adjustments that exclude or include amounts that are included or excluded, as the case may be, from the most directly comparable measure calculated and presented in accordance with IFRS in our financial statements We refer to the definitions of certain adjustments as “target definitions” because we have in the past used and may in the future use the non-GAAP financial measures based on them to measure our financial targets Examples of our non-GAAP financial measures, and the most directly comparable IFRS financial measures, are as follows: Non-GAAP Financial Measure Most Directly Comparable IFRS Financial Measure IBIT attributable to Deutsche Bank shareholders (target definition) Average active equity Pre-tax return on average active equity Pre-tax return on average active equity (target definition) Total assets adjusted Total equity adjusted Leverage ratio (target definition) (total assets adjusted to total equity adjusted) Income (loss) before income taxes Average shareholders’ equity Pre-tax return on average shareholders’ equity Pre-tax return on average shareholders’ equity Total assets Total equity Leverage ratio (total assets to total equity) For descriptions of these non-GAAP financial measures and the adjustments made to the most directly comparable IFRS financial measures to obtain them, please refer (i) for the leverage ratio (target definition), as well as the total assets adjusted and total equity adjusted figures used in its calculation, to “Item 11: Quantitative and Qualitative Disclosures about Credit, Market and Other Risk – Balance Sheet Management”, and (ii) for the other non-GAAP financial measures listed above, to pages S-16 through S-18 of the supplemental financial information, which are incorporated by reference herein Our target definition of IBIT attributable to Deutsche Bank shareholders excludes significant gains (such as gains from the sale of industrial holdings, businesses or premises) and charges (such as charges from restructuring, goodwill impairment or litigation) if we believe they are not indicative of the future performance of our core businesses When used with respect to future periods, our non-GAAP financial measures are also forward-looking statements We cannot predict or quantify the levels of the most directly comparable IFRS financial measures (listed in the table above) that would correspond to these non-GAAP financial measures for future periods This is because neither the magnitude of such IFRS financial measures, nor the magnitude of the adjustments to be used to calculate the related non-GAAP financial measures from such IFRS financial measures, can be predicted Such adjustments, if any, will relate to specific, currently unknown, events and in most cases can be positive or negative, so that it is not possible to predict whether, for a future period, the non-GAAP financial measure will be greater than or less than the related IFRS financial measure Use of Internet Addresses This document contains inactive textual addresses of Internet websites operated by us and third parties Reference to such websites is made for informational purposes only, and information found at such websites is not incorporated by reference into this document Deutsche Bank Annual Report 2011 on Form 20-F Item 3: Key Information PART I Item 1: Identity of Directors, Senior Management and Advisers Not required because this document is filed as an annual report Item 2: Offer Statistics and Expected Timetable Not required because this document is filed as an annual report Item 3: Key Information Selected Financial Data We have derived the data we present in the tables below from our audited consolidated financial statements for the years presented You should read all of the data in the tables below together with the consolidated financial statements and notes included in “Item 18: Financial Statements” and the information we provide in “Item 5: Operating and Financial Review and Prospects.” Except where we have indicated otherwise, we have prepared all of the consolidated financial information in this document in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and as endorsed by the European Union (“EU”) Our group division and segment data come from our management reporting systems and are not in all cases prepared in accordance with IFRS For a discussion of the major differences between our management reporting systems and our consolidated financial statements under IFRS, see Note 05 “Business Segments and Related Information” Deutsche Bank Annual Report 2011 on Form 20-F Item 3: Key Information Income Statement Data 2011 Net interest income Provision for credit losses Net interest income after provision for credit losses Commissions and fee income Net gains (losses) on financial assets/liabilities at fair value through profit or loss Other noninterest income (loss) Total net revenues Compensation and benefits General and administrative expenses Policyholder benefits and claims Impairment of intangible assets Restructuring activities Total noninterest expenses Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Net income (loss) attributable to noncontrolling interests Net income (loss) attributable to Deutsche Bank shareholders 2011 2010 2009 2008 2007 in U.S.$ m in € m in € m in € m in € m in € m 22,572 2,379 20,193 14,937 17,445 1,839 15,606 11,544 15,583 1,274 14,309 10,669 12,459 2,630 9,829 8,911 12,453 1,076 11,377 9,741 8,849 612 8,237 12,282 3,957 1,528 42,994 16,995 16,377 268 3,058 1,181 33,228 13,135 12,657 207 3,354 (1,039) 28,567 12,671 10,133 485 29 7,109 (527) 27,952 11,310 8,402 542 (134) (9,992) 1,411 13,613 9,606 8,339 (252) 585 33,640 6,974 1,377 5,597 251 25,999 5,390 1,064 4,326 194 23,318 3,975 1,645 2,330 20 20,120 5,202 244 4,958 (15) 18,278 (5,741) (1,845) (3,896) (61) 7,175 2,523 30,829 13,122 8,038 193 128 (13) 21,468 8,749 2,239 6,510 36 5,346 4,132 2,310 4,973 (3,835) 6,474 in U.S.$ Basic earnings per share 2,3 Diluted earnings per share 2,4 Dividends paid per share 5 in € in € in € 5.76 5.56 0.97 4.45 4.30 0.75 3.07 2.92 0.75 7.21 6.94 0.50 in € (6.87) (6.87) 4.50 in € 12.29 11.80 4.00 Amounts in this column are unaudited We have translated the amounts solely for your convenience at a rate of U.S.$ 1.2939 per €, the euro foreign exchange reference rate for U.S dollars published by the European Central Bank (ECB) for December 30, 2011 The number of average basic and diluted shares outstanding has been adjusted for all periods before October 6, 2010 to reflect the effect of the bonus element of the subscription rights issue in connection with the capital increase We calculate basic earnings per share for each period by dividing our net income (loss) by the weighted-average number of common shares outstanding We calculate diluted earnings per share for each period by dividing our net income (loss) by the weighted-average number of common shares outstanding after assumed conversions Dividends we declared and paid in the year Balance Sheet Data 2011 Total assets Loans Deposits Long-term debt Common shares Total shareholders’ equity Tier capital Regulatory capital 3 2011 2010 2009 2008 2007 in U.S.$ m in € m in € m in € m in € m in € m 2,800,133 533,752 778,578 211,444 3,079 69,081 63,462 71,457 2,164,103 412,514 601,730 163,416 2,380 53,390 49,047 55,226 1,905,630 407,729 533,984 169,660 2,380 48,819 42,565 48,688 1,500,664 258,105 344,220 131,782 1,589 36,647 34,406 37,929 2,202,423 269,281 395,553 133,856 1,461 30,703 31,094 37,396 1,925,003 198,892 457,946 126,703 1,358 37,893 28,320 38,049 Amounts in this column are unaudited We have translated the amounts solely for your convenience at a rate of U.S.$ 1.2939 per €, the euro foreign exchange reference rate for U.S dollars published by the European Central Bank (ECB) for December 30, 2011 The initial acquisition accounting for ABN AMRO, which was finalized at March 31, 2011, resulted in a retrospective adjustment of retained earnings of € (24) million for December 31, 2010 Capital amounts for 2011 are based on the amended capital requirements for trading book and securitization positions following the Capital Requirements Directive 3, also known as “Basel 2.5”, as implemented in the German Banking Act and the Solvency Regulation (“Solvabilitätsverordnung”) Capital amounts presented for 2010, 2009 and 2008 are pursuant to the revised capital framework presented by the Basel Committee in 2004 (“Basel 2”) as adopted into German law by the German Banking Act and the Solvency Regulation Capital amounts presented for 2007 are based on the Basel framework Excludes transitional items pursuant to Section 64h (3) of the German Banking Act Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) S-8 Loans 90 days or more Past Due and still accruing The following table presents the exposure of loans carried at amortized cost which were 90 days or more past due and still accruing for the last five years in € m German Non-German Total loans 90 days or more past due and still accruing Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 403 147 288 14 310 11 183 18 199 21 550 302 321 201 220 Impaired Loans The following table presents a breakdown of the Group’s IFRS impaired loans by region based on the country of domicile of the counterparties for the last five years in € m Germany Western Europe (excluding Germany) Eastern Europe North America Central and South America Asia/Pacific Africa Other Total impaired loans Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 3,224 2,006 1,665 1,573 1,774 4,585 241 1,074 40 270 0 9,434 2,594 267 1,150 43 182 23 3,702 151 1,395 85 157 27 19 7,201 1,204 54 544 234 72 745 12 75 33 6,265 3,682 2,645 The following table presents a breakdown of the Group’s IFRS impaired loans by industry sector of the counterparties for the last five years in € m Banks and insurance Fund management activities Manufacturing Wholesale and retail trade Households Commercial real estate activities Public sector Other Total impaired loans Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 91 917 778 462 3,010 2,806 1,370 9,434 81 841 742 312 1,973 969 101 848 698 346 1,659 960 45 2,544 7,201 156 645 427 200 1,209 172 118 755 3,682 78 467 453 224 850 307 1,347 6,265 266 2,645 Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) S-9 Interest Revenue of Impaired Loans The following table shows the approximate effect on interest revenue of IFRS impaired loans It shows the gross interest income that would have been recorded during the reporting period, if those loans had been current in accordance with their original terms and had been outstanding throughout the reporting period or since their origination, if the Group only held them for part of the reporting period It also shows the amount of interest income on those loans that was included in net income for the reporting period in € m 2011 German loans: Gross amount of interest that would have been recorded at original rate Less interest, net of reversals, recognized in interest revenue Reduction of interest revenue Non-German loans: Gross amount of interest that would have been recorded at original rate Less interest, net of reversals, recognized in interest revenue Reduction of interest revenue Total reduction of interest revenue 136 95 40 142 65 78 118 Renegotiated Loans The following table presents a breakdown of the Group’s renegotiated loans representing the Group’s troubled debt restructurings for the last five years in € m Renegotiated loans considered nonimpaired German Non-German Total renegotiated loans considered nonimpaired Renegotiated loans considered impaired German Non-German Total renegotiated loans considered impaired Renegotiated loans German Non-German Total renegotiated loans Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 114 950 1,064 65 753 818 69 119 188 71 80 23 20 43 252 1,102 1,354 96 301 397 53 228 281 51 13 64 27 23 50 366 2,052 2,418 160 1,055 1,215 121 348 469 122 22 144 49 44 93 Nonimpaired Nonaccrual Loans The following table presents the Group’s nonimpaired nonaccrual loans for the last five years in € m Total nonimpaired nonaccrual loans Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 457 1,051 1,203 592 198 Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) S-10 Foreign Outstandings The following tables list only those countries for which the cross-border outstandings exceeded 0.75 % of the Group’s total assets as of December 31, 2011, 2010 and 2009 As of December 31, 2011, there were no outstandings that exceeded 0.75 % of total assets in any country currently facing debt restructuring or liquidity problems that the Group expects would materially impact the country’s ability to service its obligations Dec 31, 2011 in € m United States Great Britain Luxembourg France Italy Netherlands Japan Spain Cayman Islands Switzerland Ireland Banks and other financial institutions Governments and Official institutions 8,101 19,311 6,740 7,255 5,886 2,915 1,968 7,600 511 2,413 1,574 29,006 8,544 2,608 13,378 10,580 6,050 4,663 2,769 170 1,021 468 Other 83,270 58,385 37,459 14,583 7,558 19,349 9,003 6,339 13,856 10,598 13,082 Commitments Net local country claim 10,922 3,659 2,035 7,257 412 4,293 329 1,122 914 3,091 844 321,974 17,160 Commitments Net local country claim 8,882 2,049 2,131 7,041 903 319 3,407 1,423 3,207 792 612 219,247 3,111 Commitments Net local country claim 8,157 2,472 2,050 5,591 847 1,093 4,851 252 1,986 1,106 515 397,219 6,516 605 131 8,867 111 16,586 9,964 2,687 689 663 Total Percent 453,273 107,059 48,841 42,603 33,303 32,717 32,549 27,794 18,139 17,812 16,631 20.95 % 4.95 % 2.26 % 1.97 % 1.54 % 1.51 % 1.50 % 1.28 % 0.84 % 0.82 % 0.77 % Other includes commercial and industrial, insurance and other loans Dec 31, 2010 in € m United States Great Britain Luxembourg France Italy Japan Netherlands Spain Switzerland Cayman Islands Ireland Banks and other financial institutions Governments and Official institutions 15,843 24,894 7,522 11,170 8,251 1,678 6,835 10,149 3,546 420 2,727 22,252 6,257 1,656 12,337 14,577 5,051 5,142 3,706 722 950 Other 99,468 41,990 40,577 16,694 6,358 12,884 16,966 6,666 11,893 13,919 12,042 9,536 15,816 9,607 678 4,676 Total Percent 365,692 78,301 51,886 47,242 39,625 35,748 32,350 31,551 20,046 19,807 16,332 19.19 % 4.11 % 2.72 % 2.48 % 2.08 % 1.88 % 1.70 % 1.66 % 1.05 % 1.04 % 0.86 % Other includes commercial and industrial, insurance and other loans Dec 31, 2009 in € m United States Great Britain Luxembourg France Italy Spain Netherlands Japan Switzerland Cayman Islands Ireland Banks and other financial institutions Governments and Official institutions 6,605 10,132 5,865 4,666 5,380 6,366 3,240 1,501 2,479 161 1,239 13,361 18,654 2,752 3,478 4,815 2,055 1,741 1,305 1,576 81 619 Other includes commercial and industrial, insurance and other loans Other 102,981 16,219 31,043 19,319 12,023 8,011 13,938 13,971 9,427 10,763 9,151 7,014 7,539 5,946 274 506 49 Total Percent 528,323 53,993 42,315 33,054 30,079 25,064 23,770 22,975 15,742 12,617 11,573 35.21 % 3.60 % 2.82 % 2.20 % 2.00 % 1.67 % 1.58 % 1.53 % 1.05 % 0.84 % 0.77 % Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) S-11 Allowance for Loan Losses The following table presents a breakdown of the movements in the Group’s allowance for loan losses for the periods specified in € m (unless stated otherwise) Balance, beginning of year Charge-offs: German: Banks and insurance Manufacturing Wholesale and retail trade Households (excluding mortgages) Households – mortgages Commercial real estate activities Public sector Other German total Non-German total Total charge-offs Recoveries: German: Banks and insurance Manufacturing Wholesale and retail trade Households (excluding mortgages) Households – mortgages Commercial real estate activities Public sector Other German total Non-German total Total recoveries Net charge-offs Provision for loan losses Other changes (e.g exchange rate changes, changes in the group of consolidated companies) Balance, end of year Percentage of total net charge-offs to average loans for the year 2011 2010 2009 2008 2007 3,296 3,343 1,938 1,705 1,670 (2) (93) (26) (273) (26) (13) (0) (112) (546) (519) (1,065) (5) (43) (32) (338) (26) (22) (2) (43) (23) (340) (23) (6) (2) (53) (41) (330) (32) (19) (1) (58) (28) (287) (26) (41) (49) (515) (928) (1,443) (72) (509) (713) (1,222) (127) (604) (386) (990) (76) (518) (234) (752) 14 81 21 10 63 18 93 17 142 26 168 (897) 1,832 20 112 31 143 (1,300) 1,313 25 135 31 166 (1,056) 2,597 41 157 55 212 (778) 1,084 49 153 72 225 (527) 651 (69) 4,162 (60) 3,296 (137) 3,343 (74) 1,938 (88) 1,705 0.22 % 14 63 4 0.45 % 11 83 0.39 % 0.33 % 0.28 % The Group’s allowance for loan losses as of December 31, 2011 was € 4.2 billion, a 26 % increase from prior year end The increase in the Group’s allowance was principally due to increased new provisions following the first full year consolidation of Postbank and lower net charge-offs compared to the prior year The Group’s net charge-offs amounted to € 897 million in 2011 Of the charge-offs for 2011, € 512 million were related to the Group’s corporate credit exposure, of which € 224 million were related to assets which had been reclassified in accordance with IAS 39 in the Group’s North Americas and UK portfolios, and € 385 million to the Group’s consumer credit exposure, mainly driven by Deutsche Bank’s German portfolios The Group’s provision for loan losses in 2011 was € 1.8 billion, principally driven by € 907 million for its corporate credit exposures, of which € 188 million of new provisions were established relating to assets which had been reclassified in accordance with IAS 39 in Markets and Corporate Finance The remaining increase reflected impairment charges taken on a number of exposures in the Americas and in Europe in an overall challenging global economic credit environment Loan loss provisions in the Group’s collectively assessed Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) exposure amounted to € 925 million, a 23 % increase from prior year end This increase in the Group’s provisions for loan losses was driven by Postbank, which’s risk cost are for the first time reflected for a full year in the Group’s accounts Excluding Postbank, the loan loss provisions in the Group’s collectively assessed exposure was reduced due to the Group’s retail business in Germany which contributed lower provisions, despite the challenging economic environment The Group’s individually assessed loan loss allowance was € 2.0 billion as of December 31, 2011 The € 368 million increase in 2011 comprises net provisions of € 907 million (including the aforementioned impact from IAS 39 reclassifications), net charge-offs of € 512 million and a € 26 million decrease from currency translation and unwinding effects The Group’s collectively assessed loan loss allowance totaled € 2.2 billion as of December 31, 2011, representing an increase of € 497 million against the level reported for the end of 2010 (€ 1.7 billion) Movements in this component comprised a € 925 million provision, being partially offset by € 385 million net charge-offs and a € 43 million net decrease from currency translation and unwinding effects The Group’s allowance for loan losses as of December 31, 2010 was € 3.3 billion, a % decrease from prior year end The decrease in the Group’s allowance was principally due to charge-offs, reductions resulting from currency translation and unwinding effects exceeding the Group’s provisions The Group’s net charge-offs amounted to € 1.3 billion in 2010 Of the charge-offs for 2010, € 896 million were related to the Group’s corporate credit exposure, of which € 607 million were related to assets which had been reclassified in accordance with IAS 39 in the Group’s United Kingdom and Asia/Pacific portfolios, and € 404 million to the Group’s consumer credit exposure, mainly driven by the Group’s German portfolios The Group’s provision for loan losses in 2010 was € 1.3 billion, principally driven by € 562 million for the Group’s corporate credit exposures, of which € 278 million of new provisions were established relating to assets which had been reclassified in accordance with IAS 39, relating predominantly to exposures in Corporate Banking & Securities The remaining increase reflected impairment charges taken on a number of exposures in the Americas and in Europe in an overall favorable global economic credit environment Loan loss provisions in the Group’s collectively assessed exposure amounted to € 751 million, reflecting a significant reduction of the Group’s net credit costs in Spain and India partially offset by increases in Poland, which is lower than the € 808 million recorded in the prior year, which was predominantly driven by the challenging credit environment in Spain and Poland during 2009 The Group’s individually assessed loan loss allowance was € 1.6 billion as of December 31, 2010 The € 386 million decrease in 2010 comprises net provisions of € 562 million (including the aforementioned impact from IAS 39 reclassifications), net charge-offs of € 896 million and a € 53 million decrease from currency translation and unwinding effects The Group’s collectively assessed loan loss allowance totaled € 1.7 billion as of December 31, 2010, representing an increase of € 339 million against the level reported for the end of 2009 (€ 1.3 billion) Movements in this component comprised a € 751 million provision, being partially offset by € 404 million net charge-offs and a € million net decrease from currency translation and unwinding effects The Group’s allowance for loan losses as of December 31, 2009 was € 3.3 billion, a 72 % increase from the € 1.9 billion reported for the end of 2008 The increase in the Group’s allowance was principally due to provisions substantially exceeding charge-offs S-12 Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) The Group’s gross charge-offs were € 1.2 billion in 2009 Of the charge-offs for 2009, € 637 million were related to the Group’s corporate credit exposure, of which € 414 million were related to assets which had been reclassified in accordance with IAS 39 in the Group’s U.S and U.K portfolios, and € 419 million to the consumer credit exposure, mainly driven by the Group’s German portfolios The Group’s provision for loan losses in 2009 was € 2.6 billion, principally driven by € 1.8 billion for its corporate credit exposures, of which € 1.3 billion of new provisions were established relating to assets which had been reclassified in accordance with IAS 39, relating predominantly to exposures in Leveraged Finance The remaining increase reflected impairment charges taken on a number of exposures in the Americas and in Europe on the back of the overall deteriorating credit environment Loan loss provisions for PCAM amounted to € 805 million, predominantly reflecting a more challenging credit environment in Spain and Poland Provisions in 2009 were positively impacted by changes in certain parameter and model assumptions, which reduced provisions by € 87 million in CIB and € 146 million in PCAM The Group’s individually assessed loan loss allowance was € 2.0 billion as of December 31, 2009 The € 1.1 billion increase in 2009 is comprised of net provisions of € 1.8 billion (including the aforementioned impact from IAS 39 reclassifications), net charge-offs of € 637 million and a € 100 million decrease from currency translation and unwinding effects The Group’s collectively assessed loan loss allowance totaled € 1.3 billion as of December 31, 2009, representing an increase of € 353 million against the level reported for the end of 2008 (€ 961 million) Movements in this component include a € 808 million provision, including a positive impact by changes in certain parameter and model assumptions which reduced provision by € 87 million, being offset by € 419 million net charge-offs and a € 36 million net decrease from currency translation and unwinding effects The Group’s allowance for loan losses as of December 31, 2008 was € 1.9 billion, a 14 % increase from the € 1.7 billion reported for the end of 2007 The increase in the Group’s allowance was principally due to provisions exceeding the Group’s charge-offs The Group’s gross charge-offs were € 990 million in 2008 Of the charge-offs for 2008, € 626 million were related to the Group’s consumer credit exposure, and € 364 million to the Group’s corporate credit exposure, mainly driven by the Group’s German and U.S portfolios The Group’s provision for loan losses in 2008 was € 1.1 billion, principally driven by the consumer credit exposure as a result of the deteriorating credit conditions in Spain, higher delinquencies in Germany and Italy, as well as organic growth in Poland For the Group’s corporate credit exposures, € 257 million new provisions were established in the second half of 2008 relating to assets which had been reclassified in accordance with IAS 39 Additional loan loss provisions within this portfolio were required on mainly European loans, reflecting the deterioration in credit conditions The Group’s individually assessed loan loss allowance was € 977 million as of December 31, 2008 The € 47 million increase in 2008 is comprised of net provisions of € 382 million (including the aforementioned impact from IAS 39 reclassifications), net charge-offs of € 301 million and a € 34 million decrease from currency translation and unwinding effects S-13 Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) S-14 The Group’s collectively assessed loan loss allowance totaled € 961 million as of December 31, 2008, representing an increase of € 186 million against the level reported for the end of 2007 (€ 775 million) Movements in this component include a € 702 million provision being offset by € 477 million net charge-offs, and a € 39 million net reduction due to exchange rate movements and unwinding effects Given this increase, the Group’s collectively assessed loan loss allowance is almost at the same level as the individually assessed loan loss allowance The Group’s allowance for loan losses as of December 31, 2007 was € 1.7 billion, virtually unchanged from the level reported at the end of 2006 The Group’s gross charge-offs amounted to € 752 million in 2007, an increase of € 20 million, or %, from 2006 Of the charge-offs for 2007, € 244 million were related to the Group’s corporate credit exposure, and € 508 million were related to the Group’s consumer credit exposure The Group’s provision for loan losses in 2007 was € 651 million, up € 299 million, or 85 %, primarily related to a single counterparty relationship in the Group’s Corporate & Investment Bank Group Division and the Group’s consumer finance growth strategy In 2007, the Group’s total loan loss provision was principally driven by the Group’s smaller-balance standardized homogeneous loan portfolio The Group’s individually assessed loan loss allowance was € 930 million as of December 31, 2007, a decrease of € 55 million, or %, from 2006 The change is comprised of net charge-offs of € 149 million, a decrease of € 52 million as a result of exchange rate changes and unwinding effects and a provision of € 146 million, an increase of € 130 million over the previous year The individually assessed loan loss allowance was the largest component of the Group’s total allowance for loan losses The Group’s collectively assessed loan loss allowance totaled € 775 million as of December 31, 2007, a € 91 million increase from the level at the end of 2006, almost fully driven by the Group’s smaller-balance standardized homogeneous loan portfolio The following table presents an analysis of the changes in the non-German component of the allowance for loan losses As of December 31, 2011, 60 % of the Group’s total allowance was attributable to non-German clients compared to 69 % as of December 31, 2010 in € m Balance, beginning of year Provision for loan losses Net charge-offs Charge-offs Recoveries Other changes (e.g exchange rate changes, changes in the group of consolidated companies) Balance, end of year 2011 2010 2009 2008 2007 2,284 751 (493) (519) 26 2,391 820 (897) (928) 31 995 2,182 (682) (713) 31 615 752 (330) (385) 55 504 316 (162) (234) 72 (33) 2,509 (30) 2,284 (104) 2,391 (42) 995 (43) 615 Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) S-15 The following table presents the components of the Group’s allowance for loan losses by industry of the borrower, and the percentage of its total loan portfolio accounted for by those industry classifications, on the dates specified The breakdown between German and non-German borrowers is based on the location of the borrowers in € m (unless stated otherwise) German: Individually assessed loan loss allowance: Banks and insurance Manufacturing Households (excluding mortgages) Households – mortgages Public sector Wholesale and retail trade Commercial real estate activities Other Individually assessed loan loss allowance German total Collectively assessed loan loss allowance German total Non-German: Individually assessed loan loss allowance Collectively assessed loan loss allowance Non-German total Total allowance for loan losses Total individually assessed loan loss allowance Total collectively assessed loan loss allowance Total allowance for loan losses Dec 31, 2011 13 252 78 12 112 241 124 832 821 1,653 1,179 1,327 2,507 4,162 2,011 2,150 4,162 2% 2% 4% 26 % 3% 1% 5% 4% 48 % 52 % 100 % Dec 31, 2010 236 42 95 46 135 559 453 1,012 1,084 1,200 2,284 3,296 1,643 1,653 3,296 3% 2% 4% 25 % 5% 1% 5% 5% 50 % 50 % 100 % Dec 31, 2009 199 18 95 55 126 498 454 952 1,532 859 2,391 3,343 2,030 1,313 3,343 Dec 31, 2008 4% 3% 5% 15 % 2% 1% 5% 5% 165 21 81 60 146 479 464 943 40 % 499 496 995 1,938 977 961 1,938 60 % 100 % 5% 3% 5% 13 % 2% 1% 5% 5% 39 % 61 % 100 % Deposits The amount of other time deposits in the amount of U.S.$ 100,000 or more in offices in Germany was € 35.7 billion as of December 31, 2011 thereof with maturities within three months € 24.0 billion, after three months but within six months € 1.8 billion, after six months but within one year € 1.1 billion and after one year € 9.0 billion There were no certificates of deposits in offices in Germany as of December 31, 2011 The amount of certificates of deposits and other time deposits in the amount of U.S.$ 100,000 or more issued by non-German offices was € 59.9 billion as of December 31, 2011 Total deposits by foreign depositors in German offices were € 49.0 billion, € 33.2 billion and € 32.3 billion as of December 31, 2011, 2010 and 2009 respectively Return on Equity and Assets 2011 Return on average shareholders’ equity (post-tax) Return on average total assets (post-tax) Equity to assets ratio Dividend payout ratio: Basic earnings per share Diluted earnings per share 2010 2009 8.17 % 0.20 % 2.47 % 5.54 % 0.12 % 2.21 % 14.62 % 0.26 % 1.78 % 17 % 17 % 24 % 26 % 10 % 11 % Net income (loss) attributable to Deutsche Bank shareholders as a percentage of average shareholders’ equity Net income (loss) attributable to Deutsche Bank shareholders as a percentage of average total assets Average shareholders’ equity as a percentage of average total assets for each year Dividends paid per share in respect of each year as a percentage of the Group’s basic and diluted earnings per share for that year Dec 31, 2007 176 24 88 127 189 4% 6% 17 % 2% 2% 5% 6% 609 481 1,090 42 % 321 294 615 1,705 930 775 1,705 58 % 100 % Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) S-16 Short-Term Borrowings Short-term borrowings are borrowings with an original maturity of one year or less The following table presents certain information relating to the categories of the Group’s short-term borrowings The Group calculated the average balances based upon month-end balances in € m (unless stated otherwise) Central bank funds purchased and securities sold under repurchase agreements: Balance, end of year Average balance Maximum balance at any month-end Weighted-average interest rate during the year Weighted-average interest rate on year-end balance Securities loaned: Balance, end of year Average balance Maximum balance at any month-end Weighted-average interest rate during the year Weighted-average interest rate on year-end balance Commercial paper: Balance, end of year Average balance Maximum balance at any month-end Weighted-average interest rate during the year Weighted-average interest rate on year-end balance Other: Balance, end of year Average balance Maximum balance at any month-end Weighted-average interest rate during the year Weighted-average interest rate on year-end balance Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 35,311 54,442 70,007 0.78 % 0.44 % 27,922 51,951 75,113 0.58 % 0.99 % 45,495 77,131 123,673 0.36 % 0.77 % 8,089 8,179 13,829 4.20 % 1.17 % 3,276 8,776 13,965 3.17 % 1.57 % 5,564 4,073 9,403 6.60 % 2.58 % 30,807 28,905 32,500 0.52 % 0.34 % 31,322 24,234 31,322 0.40 % 0.52 % 20,906 24,805 30,857 0.82 % 0.91 % 34,549 35,975 39,455 0.91 % 0.37 % 33,668 31,253 38,130 0.89 % 0.31 % 21,991 22,711 28,377 2.62 % 2.01 % Non-GAAP Financial Measures Target Definitions As discussed on page v, this document and other documents the Group has published or may publish contain non-GAAP financial measures Non-GAAP financial measures are measures of the Group’s historical or future performance, financial position or cash flows that contain adjustments that exclude or include amounts that are included or excluded, as the case may be, from the most directly comparable measure calculated and presented in accordance with IFRS in the Group’s financial statements The Group refers to the definitions of certain adjustments as “target definitions” because the Group has in the past used and may in the future use the non-GAAP financial measures based on them to measure its financial targets The Group’s non-GAAP financial measures that relate to earnings use target definitions that adjust IFRS financial measures to exclude certain significant gains (such as gains from the sale of industrial holdings, businesses or premises) and certain significant charges (such as charges from restructuring, impairments of intangible assets or litigation) if such gains or charges are not indicative of the future performance of the Group’s core businesses Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) S-17 Pre-Tax Return on Average Active Equity (Target Definition) The over-the-cycle pre-tax return on average active equity non-GAAP financial measure is based on IBIT attributable to Deutsche Bank shareholders (target definition), as a percentage of the Group’s average active equity, both as defined below IBIT attributable to Deutsche Bank Shareholders (Target Definition): The IBIT attributable to Deutsche Bank shareholders non-GAAP financial measure is based on income (loss) before income taxes attributable to Deutsche Bank shareholders (i.e., excluding pre-tax noncontrolling interests), adjusted for certain significant gains and charges as follows: 2011 increase (decrease) from 2010 in € m Income (loss) before income taxes (IBIT) Less pre-tax noncontrolling interests IBIT attributable to Deutsche Bank shareholders Add (deduct): Certain significant gains (net of related expenses) Certain significant charges IBIT attributable to the Deutsche Bank shareholders (target definition) 2011 2010 5,390 (209) 5,181 3,975 (24) 3,951 (236) 4,944 (208) 2,338 6,082 2009 5,202 10 5,212 (236) 138 5,114 2010 increase (decrease) from 2009 in € m in % in € m in % 1,414 (185) 1,229 36 N/M 31 (1,227) (34) (1,261) (24) N/M (24) (29) (2,338) 14 N/M 29 2,200 (12) N/M (1,138) (19) 968 19 N/M – Not meaningful Positive impact of € 236 million related to Deutsche Bank’s stake in Hua Xia Bank (PBC) for which equity method accounting was applied The amount is based on its presentation in the first quarter 2011 It includes a gross gain of € 263 million, which was in part reduced by anticipated cost components Gain from the recognition of negative goodwill related to the acquisition of the commercial banking activities of ABN AMRO in the Netherlands of € 208 million as reported in the second quarter 2010 Gain from the sale of industrial holdings (Daimler AG) of € 236 million Charge related to the investment in Deutsche Postbank AG (Corporate Investments) of € 2,338 million Reversal of impairment of intangible assets (Asset Management) of € 291 million (the related impairment had been recorded in 2008), impairment charge of € 278 million on industrial holdings and an impairment of intangible assets (Corporate Investments) of € 151 million Average Active Equity: The Group calculates active equity to make comparisons to its competitors easier and refers to active equity in several ratios However, active equity is not a measure provided for in IFRS and you should not compare the Group’s ratios based on average active equity to other companies’ ratios without considering the differences in the calculation The items for which the Group adjusts the average shareholders’ equity are average accumulated other comprehensive income (loss) excluding foreign currency translation (all components net of applicable taxes), as well as average dividends, for which a proposal is accrued on a quarterly basis and which are paid after the approval by the Annual General Meeting following each year Tax rates applied in the calculation of average active equity are those used in the financial statements for the individual items and not an average overall tax rate 2011 increase (decrease) from 2010 in € m (unless stated otherwise) Average shareholders’ equity Add (deduct): Average accumulated other comprehensive income excluding foreign currency translation, net of applicable tax1 Average dividend accruals Average active equity 2010 increase (decrease) from 2009 2011 2010 2009 in € m in % in € m in % 50,547 41,712 34,016 8,835 21 7,696 23 519 (617) 50,449 102 (461) 41,353 884 (287) 34,613 417 (156) 9,096 (782) (174) 6,740 (88) 61 19 N/M 34 22 The tax effect on average accumulated other comprehensive income excluding foreign currency translation was € (360) million, € (400) million and € (695) million for the years ended December 31, 2011, 2010 and 2009, respectively Deutsche Bank Annual Report 2011 on Form 20-F Supplemental Financial Information (Unaudited) S-18 Pre-tax return on average active equity (target definition) is presented below For comparison, also presented are the pre-tax return on average shareholders’ equity, which is defined as IBIT attributable to Deutsche Bank shareholders (i.e., excluding pre-tax noncontrolling interests), as a percentage of average shareholders’ equity, and the pre-tax return on average active equity, which is defined as IBIT attributable to Deutsche Bank shareholders (i.e., excluding pre-tax noncontrolling interests), as a percentage of average active equity in % (unless stated otherwise) Pre-tax return on average active equity (target definition) Pre-tax return on average shareholders’ equity Pre-tax return on average active equity 2011 2010 2009 2011 increase (decrease) from 2010 9.8 % 10.2 % 10.3 % 14.7 % 9.5 % 9.6 % 14.8 % 15.3 % 15.1 % (4.9) ppt 0.7 ppt 0.7 ppt 2010 increase (decrease) from 2009 (0.1) ppt (5.8) ppt (5.5) ppt Leverage Ratio (Target Definition) As part of its balance sheet management, the Group uses an adjusted leverage ratio, which is calculated using a target definition for which adjustments are made to reported IFRS total assets and total equity Such adjusted measures, which are non-GAAP financial measures, are described in “Item 11: Quantitative and Qualitative Disclosures about Credit, Market and Other Risk – Balance Sheet Management” Deutsche Bank Annual Report 2011 on Form 20-F (This page intentionally left blank) Deutsche Bank Annual Report 2011 on Form 20-F (This page intentionally left blank) Imprint Deutsche Bank Aktiengesellschaft Taunusanlage 12 60262 Frankfurt am Main Germany Telephone: +49 69 91 00 deutsche.bank@db.com 2012 April 26, 2012 Interim Report as of March 31, 2011 May 31, 2012 Annual General Meeting in the Festhalle Frankfurt am Main (Exhibition Center) June 1, 2012 Dividend payment July 31, 2012 Interim Report as of June 30, 2012 October 30, 2012 Interim Report as of September 30, 2012 2013 January 31, 2013 March 21, 2013 Annual Report 2012 and Form 20-F April 30, 2013 Interim Report as of March 31, 2013 May 23, 2013 Annual General Meeting in the Festhalle Frankfurt am Main (Exhibition Center) May 24, 2013 Dividend payment July 30, 2013 Interim Report as of June 30, 2013 October 29, 2013 Interim Report as of September 30, 2013 ... Bank Annual Report 2011 on Form 20-F Item 3: Key Information Adverse economic conditions have caused and may in the future cause us to incur higher credit losses Adverse economic conditions such... reforming market infrastructures See “Item 4: Information on the Company – The Competitive Environment – Regulatory Reform.” 16 Deutsche Bank Annual Report 2011 on Form 20-F Item 3: Key Information... adverse effects on our business or the price of our securities 21 Deutsche Bank Annual Report 2011 on Form 20-F Item 4: Information on the Company Item 4: Information on the Company History and Development