Implementation of new strategy with significant impact on 2012 results
Update on Strategy 2015+
- Management proceeds with implementation of new strategy, including establishing Non-Core Operations Unit (NCOU) and executing Operational Excellence Program (OpEx).
- Actions taken are reflected in specific accounting effects, notably impairments of goodwill and other intangible assets and further specific charges. The results were also impacted by significant litigation related charges. Together, these items resulted in a EUR 2.6 billion loss before income taxes in 4Q2012.
- 4Q2012 income before income taxes (IBIT), after adjusting for the impairments of goodwill and other intangible assets and significant litigation related charges, which together amount to EUR 2.9 billion, was EUR 0.3 billion, to which the Core Bank contributed EUR 1.0 billion.
- 2012 IBIT, after adjusting for the aforementioned charges, which together amount to EUR 3.5 billion for the full year, was EUR 4.9 billion, to which the Core Bank contributed EUR 6.5 billion.
- At the same time management has accelerated capital formation and de-risking, which resulted in a pro-forma Basel 3 fully-loaded Core Tier 1 capital ratio of 8.0% at 31 December 2012. Management now aims to achieve 8.5% as of 31 March 2013.
- OpEx on track with EUR 0.4 billion of savings realized in second half of 2012
- Implementation of a clear framework for a deep long-term cultural change
- Creation of sustainable and respected compensation practices
- Full year variable compensation relative to revenues decreased to longtime low of 9%
- Cash dividend of EUR 0.75 per share recommended
Full year 2012 results
- IBIT was EUR 1.4 billion (2011: EUR 5.4 billion), net income was EUR 0.7 billion (2011: EUR 4.3 billion)
- Revenues were EUR 33.7 billion, up from EUR 33.2 billion in 2011
- Noninterest expenses of EUR 30.6 billion, which was an increase of EUR 4.6 billion, were significantly impacted by EUR 1.9 billion impairments of goodwill and other intangible assets, EUR 1.6 billion of significant litigation related charges, and further specific items
- Pre-tax return on average active equity (RoE) of 2.4% in 2012 (2011: 10.3%)
- Cost/income ratio of 90.8% (2011: 78.2%)
- Basel 2.5 Core Tier 1 ratio at 11.6% as of 31 Dec 2012 (2011: 9.5%)
Fourth quarter 2012 results
- Loss before income taxes was EUR 2.6 billion (4Q2011: loss before income taxes of EUR 0.4 billion), net loss was EUR 2.2 billion (4Q2011: net profit of EUR 0.2 billion)
- Revenues were EUR 7.9 billion, up 14% versus 4Q2011 (EUR 6.9 billion)
- Noninterest expenses of EUR 10.0 billion, which was an increase of EUR 3.3 billion, were significantly impacted by EUR 1.9 billion impairments of goodwill and other intangible assets, EUR 1.0 billion of significant litigation related charges, and further specific items
Press Information Financial Summary and Consolidated Statements of Income 4Q12SpeechPresentation