DHL 2003 Annual Report Download - page 118
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The maturity structure of receivables and other securities from financial services (gross of the allowance for losses on loans and advances)
is as follows:
and €17,464 million to building finance (previous year: €15,221 mil-
lion). €8 million was withdrawn from (previous year: €22 million
taken to) the revaluation reserve for losses on the measurement of
unhedged purchased available-for-sale loans to customers. A gain
of €8 million (previous year: €23 million) carried in the revaluation
reserve was reversed to income in the period under review from the
disposal of available-for-sale loans to customers. Valuation allowances
of €221 million (previous year: €185 million) were recognized for
originated loans to customers in the year under review.
The allowance for losses on loans and advances is recognized
in accordance with IAS 39.109 and covers all identifiable credit and
country risks. Global valuation allowances were recognized for the
potential credit risk on the basis of historical amounts.
€7,707 million of loans and advances to other banks are
payable on demand (previous year: €1,354 million). €2 million was
withdrawn from (previous year: €11 million taken to) the revaluation
reserve for losses on the measurement of unhedged purchased
available-for-sale loans to other banks. A gain of €0.3 million (pre-
vious year: €2 million) carried in the revaluation reserve was
reversed to income in the period under review from the disposal
of available-for-sale loans to other banks. No valuation allowances
were recognized in the year under review for originated loans to
other banks (previous year: €2 million).
Of the loans and advances to customers, €13,825 million is
attributable to public-sector loans (previous year: €17,794 million),
Maturities
in €m Less than 1 year 1 to 5 years More than 5 years Total
2002 2003 2002 2003 2002 2003 2002 2003
Loans and advances to other banks 20,863 22,312 7,883 5,985 9,028 5,774 37,774 34,071
Loans and advances to customers 5,899 6,591 17,125 18,232 20,854 18,407 43,878 43,230
Trading assets/Hedging derivatives 5,614 3,894 5,960 7,030 842 2,496 12,416 13,420
Investment securities 7,422 4,300 24,241 19,642 12,498 14,862 44,161 38,804
39,798 37,097 55,209 50,889 43,222 41,539 138,229 129,525
Change in loan loss allowance
in €m Specific risks Country risks Potential risks Total
2002 2003 2002 2003 2002 2003 2002 2003
Opening balance at Jan. 1 561 538 9 7 51 43 621 588
Change in consolidated group 00000000
Additions 1852212000187221
Utilization 133 97 000013397
Reversal 70 82 24878093
Currency translation differences –5 –21 –2 –1 0 0 –7 –22
Closing balance at Dec. 31 538 559 7 2 43 36 588 597
The allowance for losses on loans and advances changed as follows in fiscal year 2003:
€33 million (previous year: €29 million) of nonperforming
loans and advances was written off directly and charged to income
in the year under review. Recoveries on loans previously written off
amounted to €7 million (previous year: €1 million).
Trading assets relate to trading in bonds and other fixed-
income securities, equities and other non-fixed-income securities,
foreign currencies, as well as derivatives that do not satisfy the IAS
39 criteria for hedge accounting. €11,345 million (previous year:
€10,083 million) of the bonds and other fixed-income securities and
€21 million (previous year: €19 million) of the equities and other
non-fixed-income securities relate to securities listed on a stock
exchange.
Hedges with positive fair values that qualify for hedge
accounting under IAS 39 are composed of the items shown in the
table on the right.
Hedging derivatives (fair value hedges)
in €m 2002 2003
Assets
Hedging derivatives on loans to other banks
Originated loans 6 5
Hedging derivatives on loans to customers
Originated loans 7 9
Hedging derivatives on investment securities
Bonds and other fixed-income securities 8 7
Equities and other non-fixed-income securities 4 1
25 22
Liabilities
Deposits from other banks 64 63
Amounts due to customers 54 63
Securitized liabilities 969 672
Subordinated liabilities 9 12
1,096 810
1,121 832