DHL 2004 Annual Report Download - page 104

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100
The allowance for losses on loans and advances changed as follows in fiscal year 2004:
Change in loan loss allowance
Specific risks Potential risks Total
in € m
2003 2004 2003 2004 2003 2004
Opening balance at January 1 545 561 43 36 588 597
Changes in consolidated group 000000
Additions 221 220 0 4 221 224
Utilization 97 94 0 0 97 94
Reversal 86 55 7 0 93 55
Currency translation differences – 22 – 5 0 0 – 22 – 5
Closing balance at December 31 561 627 36 40 597 667
The maturity structure of receivables and other securities from financial services (gross of the allowance for losses on loans and advances)
is as follows:
Maturities
Less than 1 year 1 to 5 years More than 5 years Total
in € m
2003 2004 2003 2004 2003 2004 2003 2004
Loans and advances to other banks 22,312 15,116 5,985 7,487 5,774 1,239 34,071 23,842
Loans and advances to customers 6,591 8,726 18,232 19,040 18,407 19,864 43,230 47,630
Trading assets / hedging derivatives 3,894 3,024 7,030 5,484 2,496 2,160 13,420 10,668
Investment securities 4,300 3,173 19,642 11,028 14,862 29,335 38,804 43,536
37,097 30,039 50,889 43,039 41,539 52,598 129,525 125,676
from) the revaluation reserve for losses on the measurement of
unhedged purchased available-for-sale loans and advances to cus-
tomers. A gain of € 6 million (previous year: € 8 million) reported in
the revaluation reserve was reversed to income in the period under
review from the disposal of available-for-sale loans and advances
to customers. Valuation allowances of € 224 million (previous year:
€ 221 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.
€ 2,188 million of loans and advances to other banks are payable on
demand (previous year: € 7,707 million). € 8 million was taken to
(previous year: € 2 million withdrawn from) the revaluation reserve
for losses on the measurement of unhedged purchased available-
for-sale loans and advances to other banks. € 0.2 million was added
to the revaluation reserve and recognized in income in the period
under review from the disposal of available-for-sale loans to other
banks (previous year: disposal of € 0.3 million).
Of the loans and advances to customers, €11,027 million is
attributable to public-sector loans (previous year: €13,825 million),
and € 22,306 million to building loans (previous year: €17,464 mil-
lion). € 2 million was taken to (previous year: € 8 million withdrawn
€13 million (previous year: € 33 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 €1 million (previous year: € 7 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. € 6,719 million (previous year:
€11,345 million) of the bonds and other fixed-income securities
and € 82 million (previous year: € 21 million) of the equities and
other non-fixed-income securities relate to securities listed on a
stock exchange.