D Balance sheet disclosures
15. Cash and cash equivalents
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Cash on hand | 8.674 | 8.102 |
| Balances with central banks | 78.747 | 67.067 |
| Total | 87.421 | 75.169 |
16. Loans and advances to banks and customers
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Loans and advances to banks | 22,439 | 18,800 |
| Repayable on demand | 10,696 | 8,419 |
| Other loans and advances | 11,743 | 10,381 |
| Mortgage loans and other loans secured by mortgages on real estate | 45 | 60 |
| Local authority loans | 5,671 | 5,814 |
| Other loans and advances | 6,027 | 4,507 |
| Loans and advances to customers | 844,552 | 794,916 |
| Mortgage loans and other loans secured by mortgages on real estate | 338,172 | 325,468 |
| Local authority loans | 31,319 | 31,699 |
| Home savings loans advanced by building society | 50,372 | 45,454 |
| Finance leases | 1,548 | 2,017 |
| Other loans and advances | 423,141 | 390,278 |
17. Hedging instruments (positive and negative fair values)
The positive fair values of hedging instruments amount to €201 million (2018: €883 million), the negative fair values of hedging instruments amount to €5,383 million (2018: €5,962 million). Both positive and negative fair values of hedging instruments exclusively result from derivative hedging instruments for fair value hedges.
18. Financial assets held for trading
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Derivatives (positive fair values) | 19,291 | 15,647 |
| Interest-linked contracts | 17,063 | 13,773 |
| Currency-linked contracts | 1,270 | 1,194 |
| Share- and index-linked contracts | 554 | 403 |
| Credit derivatives | 374 | 225 |
| Other contracts | 30 | 52 |
| Securities | 13,641 | 11,790 |
| Bonds and other fixed##income securities | 12,421 | 10,788 |
| Shares and other variable-yield securities | 1,220 | 1,002 |
| Loans and advances | 11,080 | 9,714 |
| Inventories and trade receivables | 322 | 349 |
| Other assets held for trading | 1 | – |
| Total | 44,335 | 37,500 |
19. Finanzanlagen
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Securities | 244,336 | 234,813 |
| Bonds and other fixed-income securities | 177,788 | 171,621 |
| Shares and other variable-yield securities | 66,548 | 63,192 |
| Investments in subsidiaries | 1,882 | 1,618 |
| Equity investments | 2,291 | 2,652 |
| Investments in joint ventures | 293 | 462 |
| Investments in associates | 201 | 289 |
| Other shareholdings | 1,797 | 1,901 |
| Total | 248,509 | 239,083 |
20. Loss allowances for cash and cash equivalents
Risikovorsorge für Barreserve
€ million
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | |
|---|---|---|---|---|---|
| Balance as at Jan. 1, 2019 | – | – | – | – | – |
| Additions | 3 | – | – | – | 3 |
| Reversals | –2 | – | – | – | –2 |
| Balance as at Dec. 31, 2019 | 1 | – | – | – | 1 |
Loss allowances for loans and advances to banks
€ million
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | |
|---|---|---|---|---|---|
| Balance as at Jan. 1, 2018 | 202 | 16 | 22 | – | 240 |
| Additions | 15 | 12 | 3 | – | 30 |
| Reversals | –2 | – | – | – | –53 |
| Balance as at Jan. 1, 2019 | 200 | 14 | 3 | – | 217 |
| Additions | 80 | 2 | 4 | – | 86 |
| Reversals | –23 | –1 | –3 | – | –27 |
| Balance as at Dec. 31, 2019 | 257 | 15 | 4 | – | 276 |
Loss allowances for loans and advances to customers
€ million
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | |
|---|---|---|---|---|---|
| Balance as at Jan. 1, 2018 | 955 | 1,903 | 6,389 | 11 | 9,258 |
| Additions | 310 | 798 | 2,159 | 18 | 3,285 |
| Utilizations | – | –1 | –1,129 | – | –1,130 |
| Reversals | –461 | –337 | –2,024 | –25 | –2,847 |
| Other changes | 149 | –211 | 74 | –1 | 11 |
| Balance as at Jan. 1, 2019 | 953 | 2,152 | 5,469 | 3 | 8,577 |
| Additions | 527 | 967 | 2,263 | 12 | 3,769 |
| Utilizations | – | –1 | –940 | –1 | –942 |
| Reversals | –485 | –571 | –1,850 | –12 | –2,918 |
| Other changes | 128 | –215 | 245 | – | 158 |
| Balance as at Dec. 31, 2019 | 1,123 | 2,332 | 5,187 | 2 | 8,644 |
Loss allowances for investments
€ million
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | |
|---|---|---|---|---|---|
| Balance as at Jan. 1, 2018 | 57 | 125 | 24 | – | 206 |
| Additions | 41 | 86 | 1 | – | 128 |
| Utilizations | – | – | –1 | – | –1 |
| Reversals | –31 | –102 | –8 | – | –141 |
| Other changes | –1 | 2 | 1 | – | 2 |
| Balance as at Jan, 1, 2019 | 66 | 111 | 17 | – | 194 |
| Additions | 26 | 96 | 1 | – | 123 |
| Reversals | –7 | –113 | – | – | –120 |
| Other changes | 5 | –5 | – | – | – |
| Balance as at Dec. 31, 2019 | 90 | 89 | 18 | – | 197 |
Loss allowances for other assets
€ million
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | |
|---|---|---|---|---|---|
| Balance as at Jan. 1, 2019 | – | – | – | – | – |
| Additions | 1 | – | – | – | 1 |
| Balance as at Dec. 31, 2019 | 1 | – | – | – | 1 |
21. Investments held by insurance companies
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Investment property | 3,558 | 2,842 |
| Investments in subsidiaries, joint ventures and associates | 803 | 776 |
| Mortgage loans | 9,749 | 9,307 |
| Promissory notes and loans | 7,003 | 7,083 |
| Registered bonds | 8,643 | 9,076 |
| Other loans | 716 | 653 |
| Variable-yield securities | 11,300 | 9,186 |
| Fixed-income securities | 55,551 | 48,764 |
| Derivatives (positive fair values) | 417 | 168 |
| Loss allowances | –3 | –4 |
| Deposits with ceding insurers and other investments | 449 | 294 |
| Assets related to unit-linked contracts | 14,368 | 11,710 |
| Total | 112,554 | 99,855 |
22. Property, plant and equipment, investment property, and right-of-use assets
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Land and buildings | 6,681 | 6,693 |
| Office furniture and equipment | 1,341 | 1,361 |
| Assets subject to operating leases | 17 | 72 |
| Investment property | 238 | 258 |
| Other fixed assets | 4,679 | 3,857 |
| Right-of-use assets | 277 | – |
| Total | 13,233 | 12,241 |
23. Income tax assets and liabilities
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Income tax assets | 3,972 | 4,359 |
| Current income tax assets | 835 | 909 |
| Deferred tax assets | 3,137 | 3,450 |
| Income tax liabilities | 1,511 | 1,408 |
| Current income tax liabilities | 735 | 856 |
| Deferred tax liabilities | 776 | 552 |
€ million
| Deferred tax assets | Deferred tax liabilities | |||
|---|---|---|---|---|
| Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
| Tax loss carryforwards | 43 | 39 | ||
| Loans and advances to banks and customers | 51 | 130 | 1,115 | 1,1251 |
| Financial assets and liabilities held for trading, and hedging instruments (positive and negative fair values) | 837 | 7641 | 169 | 197 |
| Investments | 19 | 3181 | 840 | 4001 |
| Loss allowances | 1,095 | 900 | 5 | 2 |
| Investments held by insurance companies | 115 | 123 | 1,150 | 641 |
| Deposits from banks and customers | 1,021 | 1,0531 | 174 | 239 |
| Debt certificates issued including bonds | 177 | 151 | – | 4 |
| Provisions | 2,489 | 2,1761 | 89 | 751 |
| Insurance liabilities | 77 | 78 | 115 | 195 |
| Other balance sheet items | 271 | 192 | 177 | 148 |
| Total (gross) | 6,195 | 5,924 | 3,834 | 3,026 |
| Netting of deferred tax assets and deferred tax liabilities | –3,058 | –2,4741 | –3,058 | –2,4741 |
| Total (net) | 3,137 | 3,450 | 776 | 552 |
1 amount adjusted.
Deferred tax assets and liabilities are recognized for temporary differences in respect of the balance sheet items shown in the table as well as for tax loss carryforwards.
24. Other assets
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Other assets held by insurance companies | 3,759 | 3,372 |
| Goodwill | 69 | 59 |
| Other intangible assets | 672 | 551 |
| Prepaid expenses | 209 | 184 |
| Other receivables | 4,194 | 3,560 |
| Non-current assets and disposal groups classified as held for sale | 517 | 7,133 |
| Fair value changes of the hedged items in portfolio hedges of interest-rate risk | 5,740 | 4,000 |
| Residual other assets | 831 | 500 |
| Total | 15,991 | 19,359 |
The breakdown of other assets held by insurance companies is as follows:
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Intangible assets | 157 | 140 |
| Reinsurers’ share of insurance liabilities | 130 | 139 |
| Provision for unearned premiums | 11 | 6 |
| Benefit reserves | 38 | 36 |
| Provisions for claims outstanding | 81 | 97 |
| Receivables | 1,593 | 1,650 |
| Receivables arising out of direct insurance operations | 422 | 450 |
| Receivables arising out of reinsurance operations | 282 | 271 |
| Other receivables | 889 | 929 |
| Credit balances with banks, checks and cash on hand | 826 | 409 |
| Residual other assets | 1,055 | 1,036 |
| Property, plant and equipment | 425 | 379 |
| Prepaid expenses | 67 | 34 |
| Remaining assets held by insurance companies | 563 | 623 |
| Loss allowances | –2 | –2 |
| Total | 3,759 | 3,372 |
Property, plant and equipment includes right-of-use assets in the amount of €56 million.
25. Deposits from banks and customers
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Deposits from banks | 119,955 | 119,300 |
| Repayable on demand | 10,123 | 10,733 |
| With agreed maturity or notice period | 109,832 | 108,567 |
| Deposits from customers | 880,398 | 842,420 |
| Savings deposits and home savings deposits | 250,503 | 246,029 |
| Savings deposits with agreed notice period of three months | 179,856 | 177,790 |
| Savings deposits with agreed notice period of more than three months | 7,421 | 8,242 |
| Home savings deposits | 63,226 | 59,997 |
| Other deposits from customers | 629,895 | 596,391 |
| Repayable on demand | 527,650 | 488,884 |
| With agreed maturity or notice period | 102,245 | 107,507 |
26. Debt certificates issued including bonds
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Bonds issued | 43,249 | 43,110 |
| Mortgage Pfandbriefe | 38,542 | 33,737 |
| Public sector Pfandbriefe | 2,358 | 2,683 |
| Other bonds | 2,349 | 6,690 |
| Other debt certificates issued | 36,361 | 13,001 |
| Total | 79,610 | 56,111 |
27. Financial liabilities held for trading
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Derivatives (negative fair values) | 18,901 | 16,080 |
| Interest-linked contracts | 15,768 | 12,100 |
| Currency-linked contracts | 1,772 | 1,975 |
| Share- and index-linked contracts | 1,181 | 1,853 |
| Credit derivatives | 75 | 74 |
| Other contracts | 105 | 78 |
| Short positions | 1,128 | 1,102 |
| Bonds issued including share- and index- and other debt certificates | 22,261 | 20,250 |
| Liabilities | 6,866 | 4,966 |
| Liabilities from commodities transactions and commodity lending | 46 | 53 |
| Total | 49,202 | 42,451 |
28. Provisions
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Provisions for defined benefit plans | 7,934 | 7,407 |
| Provisions for loan commitments | 240 | 222 |
| Provisions for financial guarantee contracts | 151 | 137 |
| Other provisions for loans and advances | 33 | 39 |
| Provisions relating to building society operations | 1,406 | 1,072 |
| Residual provisions | 3,540 | 3,488 |
| Total | 13,304 | 12,365 |
Funding status of defined benefit obligations
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Present value of defined benefit obligations not funded by plan assets | 7,374 | 6,831 |
| Present value of defined benefit obligations funded by plan assets | 3,025 | 2,732 |
| Present value of defined benefit obligations | 10,399 | 9,563 |
| Less fair value of plan assets | –2,466 | –2,158 |
| Defined benefit obligations (net) | 7,933 | 7,405 |
| Recognized surplus | 1 | 2 |
| Provisions for defined benefit plans | 7,934 | 7,407 |
Changes in the present value of the defined benefit obligations
| 2019 € million | 2018 € million | |
|---|---|---|
| Present value of defined benefit obligations as at Jan. 1 | 9,563 | 9,646 |
| Current service cost | 110 | 109 |
| Interest expense | 168 | 169 |
| Pension benefits paid including plan settlements | –357 | –354 |
| Actuarial gains (–)/losses (+) | 906 | –34 |
| Other changes | 9 | 27 |
| Present value of defined benefit obligations as at Dec. 31 | 10,399 | 9,563 |
Changes in plan assets
| 2019 € million | 2018 € million | |
|---|---|---|
| Fair value of plan assets as at Jan. 1 | 2,158 | 2,016 |
| Interest income | 38 | 37 |
| Contributions to plan assets | 139 | 231 |
| Pension benefits paid | –70 | –69 |
| Return on plan assets (excluding interest income) | 196 | –65 |
| Other changes | 5 | 8 |
| Fair value of plan assets as at Dec. 31 | 2,466 | 2,158 |
Actuarial assumptions used for defined benefit obligations
| Dec. 31, 2019 (percent) | Dec. 31, 2018 (percent) | |
|---|---|---|
| Weighted discount rate | 1.00 | 1.75 |
| Weighted salary increase | 1.99 | 1.98 |
| Weighted pension increase | 1.88 | 1.92 |
29. Insurance liabilities
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Provision for unearned premiums | 1,188 | 1,171 |
| Benefit reserve | 65,502 | 61,709 |
| Provision for claims outstanding | 13,415 | 12,079 |
| Provision for premium refunds | 12,149 | 8,283 |
| Other insurance liabilities | 59 | 64 |
| Reserve for unit-linked insurance contracts | 12,033 | 9,946 |
| Total | 104,346 | 93,252 |
Change in provision for unearned premiums
| 2019 € million | 2018 € million | |
|---|---|---|
| Balance as at Jan. 1 | 1,171 | 1,169 |
| Additions | 1,252 | 1,235 |
| Utilizations/reversals | –1,241 | –1,228 |
| Changes attributable to currency translation | 6 | –5 |
| Balance as at Dec. 31 | 1,188 | 1,171 |
Change in benefit reserve
| 2019 € million | 2018 € million | |
|---|---|---|
| Balance as at Jan. 1 | 61,709 | 58,670 |
| Additions | 7,095 | 5,876 |
| Interest component | 1,015 | 1,045 |
| Utilizations/reversals | –4,318 | –3,882 |
| Changes attributable to currency translation | 1 | – |
| Balance as at Dec. 31 | 65,502 | 61,709 |
Supplementary change-in-discount-rate reserves totaling €3,957 million have been recognized for policies with a discount rate in excess of the reference rate specified in the German Regulation on the Principles Underlying the Calculation of the Premium Reserve (DeckRV) (December 31, 2018: €3,306 million).
Change in the provision for claims outstanding
| 2019 € million | 2018 € million | |
|---|---|---|
| Balance as at Jan. 1 | 12,079 | 11,064 |
| Claims expenses | 7,504 | 6,650 |
| Less payments | –6,276 | –5,630 |
| Changes attributable to currency translation | 108 | –5 |
| Balance as at Dec. 31 | 13,415 | 12,079 |
Change in the provision for premium refunds
| 2019 € million | 2018 € million | |
|---|---|---|
| Balance as at Jan. 1 | 8,283 | 10,140 |
| Additions | 689 | 878 |
| Utilizations/reversals | –794 | –705 |
| Changes resulting from unrealized gains and losses on investments (through other comprehensive income) | 2,850 | –1,488 |
| Changes resulting from other remeasurements (through profit or loss) | 1,116 | –542 |
| Changes attributable to currency translation | 5 | – |
| Balance as at Dec. 31 | 12,149 | 8,283 |
The breakdown of maturities for insurance liabilities is shown in the following tables:
Balance as at Dec. 31, 2019
€ million
| ≤ 1 year | > 1 year – 5 years | > 5 years | Indefinite | |
|---|---|---|---|---|
| Provision for unearned premiums | 983 | 168 | 37 | – |
| Benefit reserve | 1,749 | 5,998 | 13,181 | 44,574 |
| Provision for claims outstanding | 4,868 | 4,918 | 3,629 | – |
| Provision for premium refunds | 843 | 685 | 734 | 9,887 |
| Other insurance liabilities | 37 | 10 | 8 | 4 |
| Total | 8,480 | 11,779 | 17,589 | 54,465 |
Balance as at Dec. 31, 2018
€ million
| ≤ 1 year | > 1 year – 5 years | > 5 years | Indefinite | |
|---|---|---|---|---|
| Provision for unearned premiums | 950 | 166 | 55 | – |
| Benefit reserve | 1,810 | 6,178 | 13,050 | 40,671 |
| Provision for claims outstanding | 4,388 | 4,301 | 3,390 | – |
| Provision for premium refunds | 833 | 644 | 713 | 6,093 |
| Other insurance liabilities | 41 | 13 | 7 | 3 |
| Total | 8,022 | 11,302 | 17,215 | 46,767 |
30. Other liabilities
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Other liabilities of insurance companies | 6,780 | 5,806 |
| Other liabilities and accruals | 2,589 | 2,462 |
| Liabilities included in disposal groups | 1 | 281 |
| Fair value changes of the hedged items in portfolio hedges of interest-rate risk | 311 | 329 |
| Lease liabilities | 277 | |
| Residual other liabilities | 717 | 586 |
| Total | 10,675 | 9,464 |
The breakdown of other liabilities held by insurance companies is as follows:
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Residual provisions | 428 | 373 |
| Provisions for employee benefits | 389 | 336 |
| Provisions for share-based payment transactions | 3 | 2 |
| Other provisions | 36 | 35 |
| Payables and residual other liabilities | 6,352 | 5,433 |
| Subordinated capital | 89 | 87 |
| Deposits received from reinsurers | 41 | 43 |
| Payables arising out of direct insurance operations | 1,464 | 1,500 |
| Payables arising out of reinsurance operations | 442 | 342 |
| Debt certificates issued including bonds | 31 | 30 |
| Deposits from banks | 581 | 580 |
| Derivatives (negative fair values) | 20 | 11 |
| Liabilities from capitalization transactions | 2,751 | 2,086 |
| Lease liabilities from insurance business | 63 | |
| Other liabilities | 284 | 120 |
| Residual other liabilities | 586 | 634 |
| Total | 6,780 | 5,806 |
31. Subordinated capital
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Subordinated liabilities | 3,544 | 2,566 |
| Profit-sharing rights | 134 | 161 |
| Share capital repayable on demand | 13 | 13 |
| Total | 3,691 | 2,740 |
32. Equity
Breakdown of subscribed capital:
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Cooperative shares | 12,695 | 12,085 |
| Share capital | 167 | 178 |
| Capital of silent partners | 57 | 69 |
| Total | 12,919 | 12,332 |
The capital reserves comprise the amounts by which the notional value of the shares of the corporations included in the consolidated financial statements was exceeded upon the issuance of the shares.
Retained earnings contain the undistributed equity earned by the companies included in the consolidated financial statements as well as the gains and losses arising on remeasurements of defined benefit plans after taking into account deferred taxes.
Reserve from other comprehensive income consists of the following items:
| No reclassification to the income statement | Reclassification to the income statement | ||||
|---|---|---|---|---|---|
| Reserve from equity instruments for which the fair value OCI option has been exercised | Reserve from gains and losses on financial liabilities for which the fair value option has been exercised, attributable to changes in own credit risk | Reserve from debt instruments measured at fair value through other comprehensive income | Cash flow hedge reserve | Currency translation reserve | |
| € million | |||||
| Equity as at Jan. 1, 2018 | 465 | – | 724 | 5 | 46 |
| Other comprehensive income/loss | 1 | 22 | –413 | –5 | 28 |
| Total comprehensive income | 1 | 22 | –413 | –5 | 28 |
| Changes in the scope of consolidation | – | – | – | 1 | 11 |
| Acquisition/disposal of non-controlling interests | 5 | – | 6 | – | – |
| Reclassifications within equity | –33 | – | – | – | – |
| Equity as at Dec. 31, 2018 | 438 | 22 | 317 | 1 | 85 |
| Other comprehensive income/loss | 406 | –62 | 1,061 | – | 8 |
| Total comprehensive income | 406 | –62 | 1,061 | – | 8 |
| Changes in the scope of consolidation | – | – | – | – | –7 |
| Acquisition/disposal of non-controlling interests | –285 | – | – | – | – |
| Reclassifications within equity | – | – | – | – | – |
| Equity as at Dec. 31, 2019 | 559 | –40 | 1,378 | 1 | 86 |