DHL 2004 Annual Report Download - page 121

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117
Consolidated Financial Statements
Notes
With regard to risk capital allocation, the Deutsche Postbank
group was and is able to grant its business divisions sufficient
leeway to grow their business in line with the group’s strategy. No
risks that could impair Postbank’s development or even jeopardize
its continued existence have been identified.
Risk-weighted assets and capital ratio
The Deutsche Postbank group has undertaken to fulfill the capital
adequacy requirements set out in the respective framework issued
by the Basel Committee on Banking Supervision. This requires
credit institutions to maintain capital of at least 8% of their risk-
weighted assets (capital ratio). At least 4% of risk assets must con-
sist of tier 1 capital (tier 1 ratio). The Bank’s regulatory own funds
consist of tier 1, tier 2 and tier 3 capital. Tier 1 capital primarily
consists of issued capital, reserves and hybrid capital components.
Tier 2 capital is primarily composed of profit participation certifi-
cates and subordinated long-term liabilities.
The own funds of the Deutsche Postbank group in accor-
dance with the Basel Capital Accord were as follows at December
31, 2004:
Own funds of the
Deutsche Postbank group
2003
1) 2004
Risk-weighted assets in € m 45,820 50,043
Market risk positions in € m 3,600 5,938
Positions for which capital
charges are required in € m 45,420 55,981
Core (tier 1) capital in € m 3,819 4,231
thereof hybrid capital instruments in € m 51 635
Supplementary (tier 2) capital in € m 1,366 1,862
Profit participation certificates in € m 166 359
Subordinated liabilities in € m 1,164 1,247
Other components in € m 36 256
Tier 3 capital in € m – –
Eligible own funds in € m 5,185 6,093
Tier 1 ratio in % 8.3 8.5
Capital ratio in % 10.5 10.9
1) Based on internal calculations
45.1.2 Derivatives
The Deutsche Postbank group uses derivatives primarily to hedge
positions as part of its asset/liability management policy. Deriva-
tives are also used for trading.
The notional amounts represent the gross volume of all sales
and purchases. The notional amount is a reference value for deter-
mining reciprocally agreed settlement payments; it does not repre-
sent recognizable receivables or liabilities.
The derivatives portfolio is classified by economic purpose as follows:
Derivatives
Notional amounts Positive fair values Negative fair values
in € m
2003 2004 2003 2004 2003 2004
Trading derivatives 169,185 224,044 901 2,754 1,645 2,651
Hedging derivatives 34,059 39,203 832 973 1,814 2,245
Total 203,244 263,247 1,733 3,727 3,459 4,896
Additional Information Consolidated Financial Statements