Financial position and performance

Financial position

DVB’s total assets increased by 14.0% to €22.0 billion (2010: €19.3 billion).

Liabilities on the statement of financial position

Deposits from other banks fell by 27.8%, to €5.2 billion. Deposits from customers rose slightly to €4.5 billion. Securitised liabilities were up by 84.9% as at the reporting date, from €5.3 billion to €9.8 billion, whilst subordinated liabilities declined by 20.0% to €0.4 billion (previous year: €0.5 billion).

Development of own funds

Own funds as defined by the German Banking Act (Kreditwesengesetz – “KWG”) totalled €1,304.4 million, a decline of 0.4% over the previous year (2010: €1,309.0 million).

Own funds as defined by the KWG (€ mn)
2011
2010
%
Issued and fully paid ordinary shares
112.4
113.1
–0.6
Capital reserve plus other reserves eligible for inclusion
272.7
291.2
–6.4
Special items for general banking risks (section 340g of the HGB)
766.3
677.2
13.2
Other components of tier 1 capital
54.8
53.2
3.0
Items deducted from tier 1 capital
(section 10 (2a) sentence 2 of the KWG)

–3.9

–3.6

8.3
Items deducted from tier 1 capital
(sections 10 (6 and 6a) of the KWG)

–23.5

–26.0

–9.6
Total tier 1 capital
1,178.8
1,105.1
6.7
Total tier 2 capital before deductions and eligible tier 3 capital
149.1
229.9
–35.1
Items deducted from tier 2 capital
–23.5
–26.0
–9.6
Tier 2 capital and eligible tier 3 capital
125.6
203.9
–38.4
Net adjusted available capital plus eligible tier 3 capital 1)
1,304.4
1,309.0
–0.4
  • 1) Taking into account reserves and transfer to reserves from net profit
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Total tier 1 capital in accordance with section 10 (2a) of the KWG

Tier 1 capital, as defined in section 10 (2a) of the KWG, increased by 6.7% in 2011, to €1,178.8 million (2010: €1,105.1 million). Reserves increased by a total of 7.3%, from €968.4 million to €1,039.0 million.

Tier 2 capital in accordance with section 10 (2b) of the KWG, and eligible tier 3 capital in accordance with section 10 (2c) of the KWG

Tier 2 capital decreased by 38.4%, to €125.6 million (previous year: €203.9 million). The eligible subordinated liabilities declined by €80.8 million or 35.1%, to €149.1 million, owing to maturing liabilities. The regulatory capital requirements under Basel II were fulfilled at all times in the year under review. To ensure compliance with the Basel I floor rule pursuant to section 339 (5a) of the SolvV (which was once again extended), DVB raised an additional US$80 million in subordinated funds (as defined in section 10 (5a) of the KWG) in January 2012, until the profit to be retained from the results 2011 has been confirmed and recognised.

Financial position and performance

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