Deutsche Bank today published its Annual Report for the financial year 2007, consisting of both the Annual Review and the Financial Report.
The Annual Review provides information about Deutsche Bank’s structure, core businesses, capital market performance, human resources and social responsibility activities. The Financial Report contains the audited consolidated financial statements for the financial year 2007, which for the first time have been prepared according to International Financial Reporting Standards (IFRS).
Deutsche Bank is also publishing its Form 20-F, which will be filed with the U.S. Securities and Exchange Commission (SEC) later today.
“In our 2007 Annual Report, we provide a comprehensive view of Deutsche Bank’s business, our financial performance and our exposures in key areas affected by current market conditions. This underlines our commitment to provide transparency for all those who have a stake in Deutsche Bank’s success: our shareholders, our clients, our people, and the wider communities in which we operate,” says Josef Ackermann, chairman of the management board, Deutsche Bank.
The Financial Report includes detailed information on financial instruments according to IFRS 7 requirements. This encompasses risks arising from financial instruments as well as information on how the fair value of financial instruments is determined. Note 12 includes information on those instruments which are valued using valuation techniques with unobservable parameters, frequently referred to as “level 3” assets.
Deutsche Bank also provides added transparency on those of its risk positions that have been principally affected by the crisis in the credit markets, including its exposures to subprime CDOs, other US mortgage businesses, monoline insurers, commercial real estate and leveraged finance. The group also provides a detailed description of its off-balance sheet exposures arising from arrangements with unconsolidated special purpose entities. This includes information on exposures to Group-sponsored and third-party asset-backed commercial paper conduits.
The Financial Report also contains a Compensation Report. In 2007 the total compensation paid to the Management Board was 33.18 million. Total compensation paid to Josef Ackermann, chairman of the management board, was 13.98 million.