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					Deutsche Bank - Annual Report 2010
Goodwill by Segment

                                                          Corporate               Global
                                                          Banking &          Transaction Asset and Wealth                  Private &     Corporate
in € m.                                                   Securities            Banking      Management             Business Clients   Investments     Total
Balance as of January 1, 2009                                 3,128                   456                  2,975               974              –     7,533
Purchase accounting adjustments                                   –                     –                      –                 –              –         –
Goodwill acquired during the year                                 2                     1                      –                 –              –         3
Transfers                                                         –                     –                  (306)                 –            306         –
Reclassification from (to) ‘held for
sale’                                                           (14)                     –                     –                  –             –      (14)
Goodwill related to dispositions
without being classified as ‘held for
sale’                                                              –                     –                     –                  –             –         –
                   1
Impairment losses                                                  –                     –                     –                  –         (151)     (151)
Exchange rate changes/other                                     (11)                   (4)                    46                  –            18        49
Balance as of
December 31, 2009                                             3,105                   453                  2,715               974            173     7,420
Gross amount of goodwill                                      3,109                   453                  2,715               974            849     8,100
Accumulated impairment losses                                    (4)                    –                       –                –          (676)     (680)
Balance as of January 1, 2010                                 3,105                   453                  2,715               974            173     7,420
Purchase accounting adjustments                                    –                    5                     (4)                –              –         1
Goodwill acquired during the year                                  2                    –                    844             2,049              –     2,895
Transfers                                                          –                    3                     (3)                –              –         –
Reclassification from (to) ‘held for
sale’                                                               –                    –                  (20)                  –             –      (20)
Goodwill related to dispositions
without being classified as ‘held for
sale’                                                              –                    –                     –                   –             –        –
Impairment losses                                                  –                    –                     –                   –             –        –
Exchange rate changes/other                                      225                   26                   192                   2            21      466
Balance as of
December 31, 2010                                             3,332                   487                  3,724             3,025            194    10,762
Gross amount of goodwill                                      3,337                   487                  3,724             3,025            903    11,476
Accumulated impairment losses                                    (5)                    –                      –                 –          (709)     (714)
1 Impairment losses of goodwill are recorded as impairment of intangible assets in the income statement.
Deutsche Bank - Annual Report 2010
Carrying Amounts of Goodwill

                               Corporate         Global
                               Banking &    Transaction         Asset   Private Wealth          Private &     Corporate              Total
                               Securities      Banking    Management     Management      Business Clients   Investments   Others   Goodwill
As of
December 31, 2009
in € m.                           3,105            453         1,788              927                974            –       174      7,420
in %                               42%             6%           24%              12%                13%           N/M       2%       100%
As of
December 31, 2010
in € m.                           3,332            487         1,988            1,736              3,025            –       194    10,762
in %                               31%             5%           18%              16%                28%           N/M       2%      100%
N/M – not meaningful
Deutsche Bank - Annual Report 2010
Primary Cash Generating Unit – Description of key assumptions

                                                                                                                  Management’s approach to determining the values assigned to key          Uncertainty associated with key assumption and potential
Primary cash-generating unit           Description of key assumptions                                             assumptions                                                              events/circumstances that could have a negative effect
                                       - Cost savings in light of Group-wide infrastructure efficiency increase   - The key assumptions have been based on a combination of internal       - Uncertainty around regulation and its potential implications not yet
                                       and Complexity Reduction Program                                           and external studies (consulting firms, research)                        anticipated
                                       - Successful integration of the investment bank                            - Management estimates concerning CIB integration and cost reduction     - Unforeseen macroeconomic environment leading to slowdown in
                                       - Robust, possibly increasing trading volumes and margins                  program are also based on progress made to date across various           activity
Corporate Banking & Securities         - Focus on flow products and benefiting from leading client market         initiatives                                                              - Attrition and loss of key talent in certain sectors and resurgence of
                                       shares                                                                                                                                              competition
                                       - Increased focus on EM Debt, commodities and electronic trading                                                                                    - Cost savings are not achieved to the extent planned
                                       - Corporate Finance fee pools continue to recover

                                       - Cost savings in light of Group-wide infrastructure efficiency increase   - The key assumptions have been based on a combination of internal       - Unexpected weak recovery of the world economy and its impact on
                                       and Complexity Reduction Program                                           and external sources                                                     trade volumes, interest rate and foreign exchange rates
                                       - Capitalize on synergies resulting from CIB integration                   - Macroeconomic trends are supported by studies while internal growth    - Delay in implementation of efficiency measures
                                       - Stable macroeconomic environment                                         plans and impact from efficiency initiatives have been based on          - Uncertainty around regulation and its potential implications not yet
                                       - Interest rate levels                                                     management/high level business case assumptions                          anticipated
                                       - Recovery in international trade volumes, cross-border payments and
Global Transaction Banking
                                       corporate actions
                                       - Deepening relationships with Complex Corporates and Institutional
                                       Clients in existing regions while pushing further growth in Asia
                                       - Successful integration of parts of ABN AMRO’s corporate and
                                       commercial banking activities in the Netherlands

                                       - Cost savings in light of Group-wide infrastructure efficiency increase   - Equity Markets growth assumptions are based on internal studies       - Reoccurrence of market volatility
                                       and Complexity Reduction Program as well as re-engineered AM               from DB Research                                                        - Investors continue to retreat to cash or simpler, lower fee products
                                       platform                                                                   - Other business growth and efficiency assumptions are based on         - Cost savings are not achieved to the extent planned
                                       - Market appetite to regain prior year losses stimulating alternative      business management input validated by internal independent function
                                       assets investments                                                         - Platform cost reductions are derived from analysis of competitors and
                                       - Growing allocations into alternative assets                              trend analyses within PCAM
                                       - Continuing recovery in equity and real estate markets
Asset Management
                                       - Ongoing Growing wealth in emerging economies and Sovereign
                                       wealth Funds
                                       - Ongoing shift from state pension to private retirement funding and
                                       benefiting from product innovation
                                       - Outsourcing of investment management mandates by insurance
                                       companies
                                       - Increased interest and appetite for Climate Change investments
                                       - Cost savings in light of Group-wide infrastructure efficiency increase   - Complexity Reduction expectations based on internal input              - Unfavorable fiscal policy for off-shore banking
                                       and Complexity Reduction Program                                           - Macroeconomic data and market data (e.g. asset classes recovery)       - Uncertainties in Euro and USD zone and overall unstable foreign
                                       - Market appetite to regain prior year losses stimulating alternative      based on DB Research input                                               exchange environment
                                       assets investments                                                         - Growth potential across markets based on external sources (strategy    - Volatility in emerging markets
                                       - Continuing recovery in equity and real estate markets                    consultancies) and historical performance
                                       - Growing wealth pools in mature and emerging markets                      - Sal. Oppenheim targets based on separate integration analyses and
                                       - Market share increases in fragmented competitive environment             strategy
Private Wealth Management
                                       - Asset gathering and allocation shifts
                                       - benefiting from home Market leadership
                                       - Positive results from Sal. Oppenheim integration
                                       - Organic growth in Asia/Pacific with hiring and intensified cooperation
                                       with CIB
                                       - Complexity reductions and efficiency improvements by enforcing a
                                       global PWM platform
                                       - Cost savings in light of Group-wide infrastructure efficiency increase   - All assumptions regarding PBC’s future development are backed with     - Sharp drop in economic growth
                                       and Complexity Reduction Program                                           respective projects and initiatives                                      - Continued low interest rates
                                       - Leading position in home market, Germany, strong position in other       - All initiatives were based on a business case developed by             - Risk that synergies related to Postbank acquisition do not realize or
                                       European markets and growth options in key Asian countries                 management validated by internal and external data                       realize later than foreseen
                                       - Achievement of synergies between Deutsche Bank and Postbank on                                                                                    - Costs to achieve the synergies are higher than foreseen
                                       revenue and cost side
Private & Business Clients
                                       - Market share gains in Germany via customer and volume gains using
                                       the strong advisory proposition
                                       - Benefiting from branch network expansion in India and stake increase
                                       in Hua Xia Bank in China
Deutsche Bank - Annual Report 2010
Primary Cash Generating Units

                                                                                                                   Discount rate (pre-tax)
                                                                                                               2010                  2009
Corporate & Investment Bank
Corporate Banking & Securities                                                                          139.00%                    N/A1
Global Transaction Banking                                                                              117.00%                 125.00%
Private Clients and Asset Management
Asset Management                                                                                        125.00%                 135.00%
Private Wealth Management                                                                               122.00%                 132.00%
Private & Business Clients                                                                              131.00%                 131.00%
N/A – Not applicable
1 Respective pre-tax discount rates in 2009 were 14.7 % for Global Markets and 14.5 % for Corporate Finance.

				
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posted:3/30/2011
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