149 Mrd. Euro
- Supporting the advisory process in the savings banks
- Multichannel solutions
- Supporting private pension plans and wealth creation
149 Mrd. Euro
- Saving banks
- Financial institutions
- Non-profit organisations
- Public sector
- Family Offices
- Pension funds
- Fundamental management of funds
- Quantitative management of funds and ETFs
- Asset management and property funds of funds
- Real Estate andcredit funds
- Capital Marktets
Interim Financial Report 2019
Additional Tier 1 bond (AT1 bond)
Non-cumulative, fixed-interest bearer bond issued by DekaBank as Additional Tier 1 capital with subsequent adjustment of its interest rate and an unlimited term. If the Common Equity Tier 1 capital ratio falls below a set minimum, the nominal and redemption values of the bearer bond may be reduced in specific circumstances.
External fund which is managed by a capital management company (Kapitalverwaltungsgesellschaft – KVG) of the Deka Group. For advisory mandates, the KVG acts only as an adviser, i.e. the external management company must verify compliance with investment restrictions in advance. For management mandates, however, investment decisions are made, verified and implemented by the KVG of the Deka Group.
Cost/income ratio (CIR)
The CIR is a productivity indicator, providing information about the amount that has to be spent in order to earn €1 in profit. In the Deka Group, this indictor is calculated from the ratio of total expenses (excluding restructuring expenses) to total income (excl. risk provisions in the lending and securities business) in the financial year.
As a key management indicator, together with economic risk, the economic result forms the basis for risk/return management in the Deka Group and is, in principle, determined in accordance with accounting and measurement policies of IFRS. As well as the total of profit or loss before tax, the economic result also includes changes in the revaluation reserve before tax as well as the interest and currency related valuation result from financial instruments recognised at amortised cost, which are not recognised in the income statement under IFRS but are relevant for assessing financial performance. The interest expense in respect of AT1 bonds (Additional Tier 1 capital), which is recognised directly in equity, is also included in the economic result. Furthermore, the economic result takes into account potential future charges that are considered possible in the future but that are not yet permitted to be recognised under IFRS due to the fact that accurate details are not yet available. The economic result is therefore a control variable on an accrual basis whose high level of transparency enables recipients of the external financial reporting to consider the company from the management perspective.
Fully loaded (regulatory ratio)
Ratio calculated by applying the set of regulations stipulated in the Capital Requirements Regulation (CRR)/Capital Requirements Directive IV (CRD IV) in full, i.e. without taking account of the applicable transitional provisions.
Fund assets (according to BVI)
Fund assets according to BVI comprise the fund assets of the mutual and special funds and asset management funds as well as the master fund. Direct investments in co-operation partner funds, the proportion of products for fund-based asset management attributable to cooperation partners, third party funds and liquidity as well as the advisory/management and asset management mandates are not included.
Internal capital essentially consists of equity capital according to IFRS (excluding minority interests) along with a net income contribution for a year and the net income accrued according to IFRS. There are various adjustment items to take account of balance sheet items that do not reflect the concept of economic value. A deductible item for risks from pension obligations also directly reduces internal capital.
Net funds inflow (according to BVI)
Difference between the funds inflow from the sale of units and the outflow from the redemption of units. Unlike net sales, this figure does not include the funds of cooperation partners or advisory/management and asset management mandates. However, the net sales from own investments are taken into account in the net funds inflow.
Performance indicator of sales success in asset management and certificate sales. This figure essentially consists of total direct sales of mutual and special funds, fund-based asset management, funds of partner organisations, master funds and advisory/management mandates, ETFs and certificates. Sales generated through proprietary investment activities are not taken into account. Redemptions and maturities are not taken into account for certificates, since in the certificates business the impact on earnings primarily occurs at the time of issue.
Payments to the alliance partners
Payments made by the Deka Group to the savings banks and Landesbanken. These include the transfer of the front-end load from the sale of funds as well as the corresponding sales performance compensation, asset management fee and sales commission. The payments to the alliance partners also include the portions of certificate commission that are passed on.
Phase in (regulatory ratio)
Ratio calculated by applying the set of regulations stipulated in the Capital Requirements Regulation (CRR)/Capital Requirements Directive (CRD IV) and taking account of the applicable transitional provisions.
Return on equity (RoE)
Return on equity at the Deka Group is calculated as the return on balance sheet equity. It corresponds to the annualised economic result relative to the average balance sheet equity including atypical silent capital contributions, without additional Common Equity Tier 1 capital (AT1) and adjusted for intangible assets. Average balance sheet equity is calculated using the figures for the end of the previous year and the most recent quarterly financial statements (accumulated profit in the course of the year taken into account).
Revaluation reserves are a component of IFRS equity on the balance sheet. They include revaluations of net liabilities arising from defined benefit obligations (actuarial gains and losses), the effects of fair value measurement on financial instruments in the FVOCI category – through other comprehensive income – changes in the fair value of liabilities that result from changes in own credit risk and the effective portion of the change in fair value of hedging instruments arising from cash flow hedges, taking into account deferred taxes associated with these items.
The risk appetite for profit-affecting risks is defined as the allocated risk capital (allocation) in the course of the risk-bearing capacity analysis. The maximum risk appetite (i.e. the upper limit) corresponds to the risk capacity minus a management buffer. The management buffer and risk appetite are both set by the Board of Management. The corresponding utilisation ratios for risk capacity, risk appetite and allocated risk capital may not exceed 100%.
The risk capacity for profit-affecting risks is set in the course of the risk-bearing capacity analysis from the economic perspective, while taking due account of risk concentration. It represents the upper limit of acceptable risk and corresponds to the Deka Group’s total internal capital.
Total customer assets
Total customer assets essentially comprise the income-relevant volume of mutual and special fund products (including ETFs), direct investments in cooperation partner funds, the portion of fund-based asset management activities attributable to cooperation partner funds, third-party funds and liquidity, master funds as well as advisory/management mandates and certificates.
The Deka Group is the fully-fledged securities service provider for the savings banks. Its services comprise investments, asset management and support for the savings banks throughout the entire investment and advisory process for securities-related business. In addition, the Deka Group offers comprehensive advice and solutions to the savings banks and other institutional customers for their investment, liquidity, funding and risk management requirements.