Int. banking report

BANK
PERFORMANCE
ANALYSIS
29-04-2019
Università Politecnica delle Marche
International Economics and Bussiness
International Banking Report
Authored by: Luca Ricci Pacifici
Serial number: 1091432

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BANK PERFORMANCE ANALYSIS
“German banks have low profitability, Benelux banks
instead are above the EU average. EU banks improved
their capital requirements”

3
Table of Contents
BANK PERFORMANCE ANALYSIS............................................................................................................................... 2
1. Introduction ...............................................................................................................................................5
2. Financial analysis........................................................................................................................................6
2.1 Overview......................................................................................................................................................... 6
2.1.1 Wider Economy.............................................................................................................................................. 6
2.1.2 Banking sector performance .......................................................................................................................... 7
2.1.3 German banking sector .................................................................................................................................. 8
2.1.4 Benelux banking sector .................................................................................................................................. 9
2.2 Methodology ................................................................................................................................................ 11
2.3 Ratios............................................................................................................................................................ 12
3 Financial Reporting in Banks...................................................................................................................... 16
3.2 Deutsche Bank.............................................................................................................................................. 16
2.1.1 Consolidated balance sheet ......................................................................................................................... 17
2.1.2 Consolidated Simplified Income Statement................................................................................................. 19
2.1.3 Ratios............................................................................................................................................................ 20
2.1.4 Risk – Capital ratios ...................................................................................................................................... 21
3.3 Commerzbank............................................................................................................................................... 22
2.2.3 Ratios............................................................................................................................................................ 26
2.2.4 Risk – Capital ratios ...................................................................................................................................... 27
3.4 ING Group..................................................................................................................................................... 28
2.3.3 Ratios............................................................................................................................................................ 32
2.3.4 Risk – Capital Ratios...................................................................................................................................... 33
3.5 KBC Group..................................................................................................................................................... 34
2.4.3 Ratios............................................................................................................................................................ 38
2.4.4 Risk – Capital Ratios...................................................................................................................................... 39
4 Comparative Analysis................................................................................................................................ 40
5 Conclusion................................................................................................................................................ 47

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6. References ................................................................................................................................................... 48
7. Appendix ..................................................................................................................................................... 50

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1. Introduction
For several reasons the development of a banking system is an essential factor for the development
of the whole country economy. The international banking system is today connected globally and
most of banks in their history commenced to compete internationally bringing them in a position
where they all compete in the development of every country globally. This evolution of the
international scenario brought new challenges.
Banks represent the bridge from the Monetary Institutions that regulate the money flow and the real
economy, meeting the different needs for the different economic characters.
The well-being of a bank is essential otherwise we would risk to paralyze the economy because
companies to invest require credits. To give credits these banks need to find the capitals required to
lend.
We need to remember that banks are also companies that need to make a profit and if the conditions
in which they operate are not optimal, they could move their core business from the important
meeting between demand and offer to the search of new source of profitability. This is the key of a
well-being of a financial system.
In this term it is natural understanding that the wealth of a banking system is essential for the well-
being of the whole economical system.
The new challenges of the banking system in the last years questioned the profitability models of
some of the most important banks, especially the German banking system through his most
representative bank, showed to be the most affected by this issue.
A good starting point is to examine the most representatives banks of different countries, focusing
the attention on the most important values. In order to reach this goal the tools that we have are the
principal key metrics and ratios.

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2. Financial analysis
2.1 Overview
2.1.1 Wider Economy
After the financial crisis of 2008 that already gave his first signs the previous years, the European
financial system was very affected, but the biggest strike of this crisis arrived in Europe in the
following years due to the response slowness and blindness of the entire European economic system.
It is very important to underline that the financial crisis commenced as a crisis of the private sector
produced by the greed of financial institutes that with blind complicity of regulators institutes
increased a speculative bubble, creating and exchanging financial products created ad hoc, those
were completely disconnected from the real economy and almost fully hidden from controls.
The Euro zone was then affected by two financial recessions, some particular countries like Italy,
Spain, Portugal and Greece suffered a third recession since the European governance decided to use
growth model based on austerity. To contrast the effects of the global crisis, the other financial
powers like USA, UK and Canada used instead the classic model based on spending, managing to
strongly pick up the economy before Europe.
The last ten years had a particular importance for the financial field and despite the late response of
the financial governance the authorities showed the banks limits and commenced a process that
brought to stronger rules for the system stability.
In 2018 the Euro area grew of 1.8 % thanks to a generous monetary policy of the European central
bank (ECB). This outcome was obtained also thanks to the global economic situation and to the
robust domestic demand despite the global political and geopolitical uncertainty. We remember that
in 2016 the American election brought to the presidency the outsider Donald Trump that today with
his administration threats the global commerce with heavy duties, still in 2016 Brexit unsettled the
EU as London is one of the most important financial center in Europe, despite what we thought most
financial institute brought their base outside the UK but are still lots the financial capitals.
In 2019 the forecasts give a smaller growth but still positive being confirmed the quantitative easing
and this is supported by a strong domestic demand that remains a key factor for the Euro area
growth. The other important factor are the investments that are the only carriers for the creations of
new employments.
In the last years we saw a huge expansion of the Chinese economy that travel an economic growth of
about 6%. As we will see in this report the Chinese investments in Europe played a very important
role, in fact Chinese banks that brought this expansiveness project acquired important shares in
European banks.
China is also very important for the EU economy with an innovative project of the “new silk way”
which will bring a fast exchange between the Asian colossus and the old continent.

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2.1.2 Banking sector performance
After last ten years events European banks built a solid capital position and largely worked on balance
sheets. The CET1 from December 2011 is doubled, the TIER1 and the total capital also continued a
positive trend.
Analyzing the banks funding we observed that the share of deposit liabilities over total assets passed
from 47,3% in 2007 to 53,4% ten years later.
Analyzing the amount of total assets held by EU banks we observe a contraction for the third
consecutive year.
Considering that ECB maintained also in 2019 the low interest rates policy, the real challenge for the
financial sector moved on banks profitability.
The ROE of Euro zone banks in 2108 slightly went over 5% maintaining a positive trend. The response
of the big financial institutes to the new challenges brought by the digitalization, in order to continue
with a profitability search, brings in one hand to the research of new services and financial tools and
in the other hand to the rationalization of operating expenses.
The effect of this spending review was the closure of many branches and subsidiaries with the
following decrease on the number of employees.
Source: European Central Bank, Statistics Data Warehouse 2019
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
14,00%
16,00%
2006 2008 2010 2012 2014 2016 2018
ROE EU-28

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2.1.3 German banking sector
The German Banking system is founded on the so called “three pillars” system which are made of
private commercial banks, public sector banks and cooperative banks. The strength of this system is
on the fact that each banks is structured in a different way and provide the needs for the different
customers.
The private banks play a key role for the German economy especially for the exports sector, these big
private banks represent more than 40% of the total assets.
We can distinguish two types of private banks: the normal smaller ones and the big banks which
operates in an international scale, these include Deutsche Bank (21,4% of market share) and
Commerzbank (6,59% of market share).
The public sector banks represent slightly more of the 25% of the total assets, these banks in the last
few years increased their services and differentiate their core business, competing with private
banks. Their evolution passed mainly by saving banks till offering services of investment banks and
investments funds. The characteristic that make them different from the other European public banks
is the greater level of involvement of the public institutions.
The cooperative banks are mainly owned by their depositors which makes easier the match between
savings and borrowings, the owners represent nearly the 50% of their clients and the rest of them are
the same of private banks, this is because the German cooperative banks offer banking services to
the general public.
Public and cooperative banks have in common that both operate more on a regional scale.
In Germany from 2000 the number of banks is decreased by nearly 50% and this is due to the
globalization process, the challenge brought by the IT evolution in the banking sector and the always
increasing capital requirements.

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2.1.4 Benelux banking sector
The first institution of Benelux was signed in 1944 in which Belgium, Netherlands and Luxemburg
become a fundamental pillar of the European financial economy.
The purpose of that agreement was to help an economical interaction which lead those three little
countries to count on a population of 27,5 million. This union led to the establishment of a solid
financial institution.
Belgium
The Belgian banking sector is essential for the financing of the economy and the companies. The
volume of loans offered to the non-financial companies touched his highest level in 2017 thanks to
the accommodating European monetary policy.
The number of the financial groups in Belgium is 87 of which only 16% have a main Belgian
ownership.
In the end of 2017, the number of branch banks was 3195 with 994 billion of assets.
After the 2008 financial crisis the Belgian banking sector worked mainly on his improvement. The
cost-to-income ratio fell from 72,1% in 2012 to 58,2% in 2017. The ROE was maintained on 10% in the
last 10 years. The liquidity coverage ratio remained stable on 140,1% and the CET1 ratio was
maintained on 18,3%.
Among the biggest challenge of the Belgian banking sector there is the improvement of the digital
services that brought big investments to the digital banking and applications.
Netherlands
The Dutch economy in 2018 remained strong with a GDP growth of 3%. The growth was mainly based
on the improvement of his international economy and exports.
This banking sector is relatively competitive thanks to the low interest rates which make the entrance
barriers fairly low.
The total amount of offered loans is decreased and this is what makes it different from Belgium, this
is due to the decreased demands. The reason of this reduction was the improvements of the financial
condition of companies that prefer flexible types of financing as leasing and factoring.
In the last years the capital position of Dutch banks is improving from the last financial crisis, from
2018 the CET1 has basically doubled, passing from 9,6% to 18,4%.
Luxembourg
The economy of Luxemburg is almost mainly based on the services sector that exceeds the 80% of
GDP. From the abolition of the banking secret of 2015 the financial services industry and specifically
the banking sector plays a key role in the economy. The economic growth is 4% in 2018 with an
unemployment rate below 6%.
More than half of banks based in Luxemburg are from other countries and only 5 of the 97
Luxemburg banks are originally from Luxemburg. This makes Luxemburg the country with the highest
rate of internationalization in the European banking system.
In the last years the number of banks is decreased due to merges and acquisitions favoring the
biggest banking groups. Peculiar is that 7 Chinese banks brought their European base banks in

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Luxemburg among these the biggest world bank ICBC Bank of China. Aside the Chinese other counties
biggest groups brought their legal base in Luxemburg.
The favorable fiscal policies of Luxemburg played a key role in bringing the legal base of the main
global companies that entered the European economy. It is important to underline that among these
we can see the main digital and e-commerce companies like Facebook, Paypal, Amazon and Airb&b.
Luxemburg has the highest GDP pro-capite in the world, it represents the second biggest investment
funds center in the world after USA with about 4,187 Euro billions of assets.

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2.2 Methodology
The purpose of this project is the understanding of national banking systems analyzing two of the
most representative banks
To reach the goal for this report I followed the scheme of the performance analysis calculating the
key-metrics and ratios of the four banks I studied. I closely examined the annual reports of years
2015, 2016, 2017 and 2018.
The analysis of the annual reports allowed me to understand the core business of those banks, their
shareholders and their mission.
The study commences with the analysis of their financial statements composed by balance sheets,
income statements, statements of change in equity and statements of cash flows.
From these documents I extracted the values that allowed me to calculate the ratios. The choice of
these ratios comes from the nature of the banks that are mainly universal banks. These offer services
like private baking, corporate banking, investment banking, wealth management and insurance.
To better understand the values and to put them in a macro environment I’ve studied the wider
economy sector and I’ve extrapolated indicators from ECB about the European, the Benelux and the
German banking system
I studied:
• Liquidity ratio
• Profitability ratio
• Efficiency ratio
• Market ratio
• Financial risk ratio
• Capital adequacy ratio
In the next chapter I will explain how I calculated those ratios, in the following one I will present each
bank with a small historic background explanation and I will show their balance sheets, their
simplified income statements and their key-metrics and ratios.
At the end I will create a comparison between banks and I will explain my conclusions.

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2.3 Ratios
Liquidity Ratio:
Cash Position Indicator:
A cash position represents the amount of cash that a bank has on its books at a specific point in time.
• The formula is Cash/ Total asset
Capacity Ratio:
It measures the ability to pay off the liabilities through their asset.
• The formula is Total liabilities/total asset
Profitability ratio:
It measures the income or operating success of a company for a given period of time.
Return on common equity:
It shows how many dollars of net income the company earned for each dollar invested by the owners.
• The formula is net income/average common stockholder’s equity
Return on total assets:
It is a measure of profitability generated through the assets.
• The formula is Net income / total assets
Net interest margin ratio:
Net interest margin is a performance metric that examines how successful a
firm's investment decisions are compared to its debt situations.
• The formula is (Interest income - Interest expense)/Total Asset

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Net non-interest Margin Ratio:
It is a measure of the difference between the non- interest income generated by banks or other financial
institutions and the amount of non-interest paid out to their lenders.
• The formula is (Non-Interest Income - non-Interest expense)/Total asset
Cost-to-Income Ratio:
• The formula is (Non-interest expenses / (Net interest income + non-interest income)
Net Operating Margin Ratio:
Operating margin is a margin ratio used to measure a company's pricing strategy and operating
efficiency.
• The formula is (operating revenue-operating expenses)/total asset
Net Profit Margin Ratio:
Net profit margin is the ratio of net profits to revenues for a company or business segment.
• The formula is- Net income/operating revenue
Earnings per share:
A measure of the net income earned on each share of common stock.
• The formula is- net income/no of shares outstanding
Dividend per Share:
Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary
share outstanding.
• The formula is- Dividend for common stockholders/number of common stockholders
outstanding

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Efficiency Ratio:
The efficiency ratio is typically used to analyze how well a company uses its assets and liabilities
internally.
Asset Utilization Ratio:
It measures how efficiently a bank can utilize their assets.
• The formula is operating revenue/total asset
Tax Management Efficiency Ratio:
Tax management efficiency is an attempt to minimize tax liability when given many different financial
decisions.
• The formula is Net income /Earnings before tax
Market Ratio:
The market ratio is a ratio used to find the value of a company by comparing the book value of a firm
to its market value.
P/E Ratio:
The price-earnings ratio (P/E Ratio) is the ratio for valuing a company that measures its current
share price relative to its per share earnings.
• The formula is Market price/Earnings per share
Book Value per Share:
Book value is calculated by looking at the firm's historical cost, or accounting value.

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Financial Risk Ratio:
Financial risk is the possibility that shareholders will lose money when they invest in a company that
has debt, if the company's cash flow proves inadequate to meet its financial obligations.
Equity Multiplier:
It measures the financial leverage also.
• The formula is Total asset/total equity
Capital adequacy Ratio
The capital adequacy ratio (CAR) is a measure of a bank's capital. It is expressed as a percentage of a
bank's risk weighted credit exposures. Also known as capital-to-risk weighted assets ratio (CRAR), it is
used to protect depositors and promote the stability and efficiency of financial system.
• The formula is Tier 1 capital + tier 2 capital / Risk weighted assets

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3 Financial Reporting in Banks
3.2 Deutsche Bank
Deutsche Bank is a German multinational bank, founded in Berlin in 1870 with its headquarters in
Frankfurt am Main.
DB is one of the biggest European banks in terms of total assets with 1,348 bln €, has a large presence
in Europe and in all the most important global financial center all over the world.
Its principal services are:
• Retail Banking
• Corporate Banking
• Investment Banking
• Financial Advisory
• Asset and Wealth Management
In 2017 Deutsche Bank was ranked the 1st largest bank in Germany in terms of total assets, having
21.48% of the domestic market share and ranked as 15th largest bank in the world.
Since May 2017 the biggest shareholder is Chinese conglomerate HNA Group, which owns 10% of its
shares.
In November 2018, the bank had raided in its HQ by polices officers in connection with investigations
about Panama papers and money laundering. This was now the first scandal in recent year since was
implied in taxes frauds, Libor scandal and many other scandals.

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2.1.1 Consolidated balance sheet
Deutsche Bank - Consolidated balance sheet
in € million 2018 2017 2016 2015
Assets
Cash and cash equivalent 188.731 225.655 181.364 96.940
Interbank balances 8.881 9.265 11.606 12.842
Central bank funds sold and securities purchased under resale
agreements 8.222 9.971 16.287 22.456
Securities borrowed 3.396 16.732 20.081 33.557
Total financial assets at FVPL 573.344 636.970 743.781 820.883
Trading assets 152.738 184.661 171.044 196.035
Derivatives 320.058 361.032 485.150 515.594
Mandatory FVPL 100.444 - - -
Designated FVPL 104 91.276 87.587 109.253
Financial assets at fair value through other comprehensive income 51.182 - - -
Financial assets available for sale - 49.397 56.228 73.583
Equity method investments 879 866 1.027 1.013
Loans at amortized cost 400.297 401.699 408.909 427.749
Securities held to maturity - 3.170 3.206 -
Property and equipment 2.421 2.663 2.804 2.846
Goodwill and other intangible assets 9.141 8.839 8.982 10.078
Other assets 93.444 101.491 126.045 118.137
Asset for current tax 970 1.215 1.559 1.285
Deferred tax assets 7.230 6.799 8.666 7.762
Total assets 1.348.137 1.474.732 1.590.546 1.629.130

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Liabilities
Deposits 564.405 581.873 550.204 566.974
Central bank funds purchased and securities sold under repurchase
agreements 4.867 18.105 25.740 9.803
Securities loaned 3.359 6.688 3.598 3.270
Total financial liabilities at FVPL 415.680 478.636 581.971 599.754
Trading liabilities 59.924 71.462 57.029 52.034
Derivatives 301.487 342.726 463.858 494.076
Designated FVPL 53.757 63.874 60.492 44.852
Investment contract liabilities 512 574 592 8.522
Other short-term borrowings 14.158 18.411 17.295 28.010
Other liabilities 117.513 132.208 155.440 175.005
Provisions 2.711 4.158 10.973 9.207
Liabilities for current tax 944 1.001 1.329 1.699
Deferred tax liabilities 512 346 486 746
Long-term debt 152.083 159.715 172.316 160.016
Trust preferred securities 3.168 5.491 6.373 7.020
Obligation to purchase common shares - - - -
Total liabilities 1.279.400 1.406.633 1.525.727 1.629.130
Equity
Common share 5.291 5.291 3.531 3.531
Additional paid-in capital 40.252 39.918 33.765 33.572
Retained earnings 16.714 17.454 18.987 21.182
Common shares in treasury, at cost
-
15
-
9 -
-
10
Equity classified as obligation to purchase common shares - - - -
Accumulated other comprehensive income (loss), net of tax 253 520 3.550 4.404
Shareholders' equity 62.495 63.174 59.833 62.678
Additional equity component 4.675 4.675 4.669 4.675
Non-controlling interests 1.568 250 316 270
Total equity 68.738 68.099 64.819 67.624
Total liabilities and equity 1.348.137 1.474.732 1.590.546 1.629.130

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2.1.2 Consolidated Simplified Income Statement
Deutsche Bank - Consolidated simplified income statement
in € million 2018 2017 2016 2015
Interest Income 24.793 23.542 25.143 25.697
Interest expense - 11.601 - 11.164 - 10.436 - 10.086
Net Interest Income 13.192 12.378 14.707 15.611
Provision for losses (PLL) - 525 - 525 - 1.383 - 956
Net Interest Income after PLL 12.667 11.853 13.324 14.655
Non-interest income 12.124 14.070 15.307 17.644
Non-interest expenses - 23.461 - 24.695 - 29.442 - 38.667
Net non-interest income - 11.337 - 10.625 - 14.135 - 21.023
Pre-tax net operating profit 1.330 1.228 - 811 - 6.368
Securities gains (losses) - - - -
Profit before taxes 1.330 1.228 - 810 - 6.097
Taxes - 989 - 1.963 - 546 - 675
Extraordinary items (net) - - - -
Net profit 341 - 735 - 1.356 - 6.772
Cash dividends 267 - 751 - 1.402 - 6.794
Retained profits 75 15 45 21

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2.1.3 Ratios
RATIOS
Liquidity Ratio 2015 2016 2017 2018
CPI Cash Position Indicator (Cash/TA) 5,95% 11,40% 15,30% 14,00%
CR Capacity Ratio (TL/TA) 95,85% 95,92% 95,38% 94,90%
Profitability ratio 2015 2016 2017 2018
ROE Return On Equity -10,01% -2,09% -1,08% 0,50%
ROE Return On Equity (Du Pont Model) -10,01% -2,09% -1,08% 0,50%
ROA Return On Assets -0,42% -0,09% -0,05% 0,03%
ROA Return On Assets (Du Pont Model) -0,42% -0,09% -0,05% 0,03%
EM Equity Multiplier 2409% 2454% 2166% 1961%
AU Asset Utilization ratio 2,04% 1,89% 1,79% 1,88%
NIM Net Interest Margin 0,96% 0,92% 0,84% 0,98%
Nn-
IM Net non-Interest Margin 1,29% 0,89% 0,72% 0,84%
C/I Cost to Income ratio 116,27% 98,09% 93,37% 92,67%
NOM Net Operating Margin -0,33% 0,04% 0,12% 0,14%
NPM Net Profit Margin -20,36% -4,52% -2,78% 1,35%
ASO Average shares outstanding - 1.568,6 2.094,9 2.105,2
SP Share Price 22,53 € 17,25 € 15,88 € 6,97 €
EPS Earnings Per Share -4,52 - 1,08 - 0,53 - 0,01
P/B Price to Book value 0,50 0,40 0,53 0,23
DPS Dividend Per Share 0,84 € - € 0,18 € 0,11 €
Efficiency ratio 2015 2016 2017 2018
TMER Tax Management Efficiency Ratio 111,07% 167,41% -59,85% 25,64%
Financial Risk ratio 2015 2016 2017 2018
Capital Adequacy ratio 2015 2016 2017 2018
CAR Capital adequacy ratio 15,37% 16,64% 18,39% 17,51%
CR Capacity Ratio 95,85% 95,92% 95,38% 94,90%

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2.1.4 Risk – Capital ratios
RISK - CAPITAL RATIOS
RWA 2015 2016 2017 2018
(fully loaded) 396.714 357.518 344.000 350.000
(phased-in) 397.382 356.235 - -
Total regulatory capital
(fully loaded) 60.976 59.502 63.250 61.292
(phased-in) 64.522 62.158 64.016 61.292
Total Capital ratio
(fully loaded) 15,40% 16,60% 18,40% 17,50%
(phased-in) 16,20% 17,40% 18,60% 17,50%
Tier 1
(fully loaded) 48.651 46.829 52.921 52.082
(phased-in) 58.222 55.486 57.631 55.091
Tier 1 capital ratio
(fully loaded) 12,30% 13,10% 15,40% 14,90%
(phased-in) 14,70% 15,60% 16,80% 15,70%
Tier 2
(fully loaded) 12.325 12.673 10.329 9.211
(phased-in) 6.299 6.672 6.384 6.202
CET1
(fully loaded) 44.101 42.279 48.300 47.486
(phased-in) 52.429 47.782 50.808 47.486
CET1 ratio
(fully loaded) 11,10% 11,80% 14,00% 13,60%
(phased-in) 13,20% 13,40% 14,80% 13,60%
Leverage exposure
(fully loaded) 1.395.000 1.348.000 1.395.000 1.273.000
(phased-in) - - - -
Leverage ratio
(fully loaded) 3,50% 3,50% 3,80% 4,10%
(phased-in) - - 4,10% 4,30%

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3.3 Commerzbank
Commerzbank is one of the major German banks operating as a universal bank, its headquarter in in
Frankfurt am Main, founded in 1870 in Hamburg.
The bank is present in more than 50 countries around the world and in 2019 was the second largest
bank in Germany with 462 bln € of total assets.
Principal services:
• Retail Banking
• Privat Banking and Wealth Management
• Corporate Banking
• Investment Banking
Its domestic market share in 2017 was 6.59% and in 2017 was the 3rd largest bank in German,
becoming the 2nd in 2019.

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Commerzbank - Consolidated balance sheet
in € million 2018 2017 2016 2015
Assets
Cash on hand and cash on demand 53.914 55.733 34.802 28.509
Claims on banks - - 58.529 71.810
Claims on customers - - 212.848 218.875
Financial assets
Amortised cost 279.137 - - -
Loans and Receivables - 265.712 - -
FV OCI 26.659 - - -
Available for sale - 31.155 -
FV option - 23.745 - -
Mandatorily FVPL 34.073 - - -
Held for trading 42.501 63.666 88.862 114.684
Financial investments - - 70.180 81.939
Value adjustment on portfolio FV hedges 199 153 310 284
Derivative hedging instruments 1.457 1.464 2.075 3.031
Holdings in companies accounted for using equity
method 173 181 180 735
Intangible assets 3.246 3.312 3.047 3.525
Fixed assets 1.547 1.600 1.723 1.437
Investment properties 13 16 16 106
Non-current assets held for sale and disposal groups 13.433 78 1.188 846
Current tax assets 783 767 629 512
Other assets 2.119 1.961 3.012 3.512
Total assets 462.369 452.493 480.450 532.641

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Liabilities
Deposits from bank - - 66.948 83.154
Deposits from customer - - 250.920 257.615
Financial liabilities FVPL
Amortised cost 346.668 341.260 - -
FV option 21.949 14.940 - -
Held for trading 43.404 56.484 71.644 86.443
Securitised liabilities - - 38.494 40.605
Value adjustment on portfolio FV hedges 532 491 1.001 1.137
Derivative hedging instruments 1.462 2.255 3.080 7.406
Provisions 3.153 3.291 3.436 3.326
Current tax liabilities 472 673 574 401
Liabilities of disposal groups held for sale 12.914 - - 1.073
Subordinated debt instrument - - 10.969 11.858
Total liabilities 432.958 422.452 450.810 502.234
Equity
Subscribed capital 1.252 1.252 1.252 1.552
Capital reserve 17.192 17.192 17.192 17.192
Other reserves
-
278
-
817
-
1.015
-
781
Non-controlling interests 1.200 1.164 1.027 1.004
Total equity 29.411 30.041 29.640 30.407
Total liabilities and equity 462.369 452.493 480.450 532.641

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Commerzbank - Consolidated simplified income statement
in € million 2018 2017 2016 2015
Interest Income 8.670 8.423 9.848 11.616
Provision for losses (PLL) - - 781 - 900 - 696
Pre-tax net operating profit 805 - 770 - 21 1.303
Securities gains (losses) 440 1.265 664 492
Pofit before taxes 1.245 495 643 1.795
Taxes - 268 - 245 - 261 - 618
Extraordinary items (net) - 10 - - -
Net profit 967 250 382 1.177
Cash dividends 865 156 279 1.062

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2.2.3 Ratios
RATIOS
ROE Return On Equity 3,87% 1,29% 0,83% 3,29%
ROE Return On Equity (Du Pont Model) 3,87% 1,29% 0,83% 3,29%
ROA Return On Assets 0,22% 0,08% 0,06% 0,21%
ROA Return On Assets (Du Pont Model) 0,22% 0,08% 0,06% 0,21%
Nn-IM Net non-Interest Margin 0,71% 0,87% 0,93% 0,85%
NOM Net Operating Margin 0,38% 0,18% 0,00% 0,17%
NPM Net Profit Margin 11,87% 4,08% 2,89% 11,59%
ASO Average shares outstanding 1.252,40 1.252,40 1.252,40 1.252,40
SP Share Price - € - € - € - €
EPS Earnings Per Share 0,22 0,12 0,10 0,69
P/B Price to Book value - - - -
DPS Dividend Per Share - - - -
TMER Tax Management Efficiency Ratio 65,57% 59,41% 50,51% 77,67%
CAR Capital adequacy ratio - - - -

27
2.2.4 Risk – Capital ratios
RWA 2015 2016 2017 2018
(fully loaded) 198.200 190.500 171.019 180.498
(phased-in) - - 171.369 180.498
(fully loaded) - - - -
(phased-in) - - - -
Total Capital ratio
(fully loaded) 0,00% 0,00% 17,50% 15,90%
(phased-in) 16,50% 16,90% 18,30% 16,90%
Tier 1
(fully loaded) - - 24.039 23.206
(phased-in) - - 25.985 24.110
(fully loaded) 13,80% 13,90% 15,20% 13,40%
(phased-in) - - - -
Tier 2
(fully loaded) - - 5.808 5.564
(phased-in) - 5.404 5.389
CET1
(fully loaded) - - 24.039 23.206
(phased-in) - - 25.607 23.206
CET1 ratio
(fully loaded) 13,80% 13,90% 14,10% 12,90%
(phased-in) 12,00% 12,30% 14,90% 12,90%
Leverage exposure
(fully loaded) - - - 486.335
(phased-in) - - - 486.335 €
Leverage ratio
(fully loaded) - - 5,50% 5,00%
(phased-in) - - 5,10% 4,80%

28
3.4 ING Group
ING Group is a Dutch multinational banking and financial services corporation with its headquarter
based in Amsterdam.
Principal services:
• Retail Banking
• Private Banking
• Commercial Banking
• Insurance
ING in 2017 was ranked the 1st largest bank in Netherlands with 846 bln € of total asset and the other
banks are close to its quota It was also the 4th bank in Belgium with 10.26% of market share.
ING Group expanded its international business through several acquisition, expanding its business
overseas.
History of merge and acquisition:
In 2008, after the financial crisis ING took a capital injection from the Dutch government, increasing
its capital ratio above 8%. This resulted as a sale of several businesses around the world.
In September 2018, after its involvement in money laundering scandal, paid a sanction of 775 € mln.

29
ING Group - Consolidated balance sheet
in € million 2018 2017 2016 2015
Assets
Cash and balances with central banks 49.987 21.989 18.144 21.458
Loans and advances to bank 30.422 28.811 28.858 29.988
Financial assets FVPL
Trading assets 50.152 116.748 114.504 131.467
Non-trading derivatives 2.664 2.231 2.490 3.347
Designated FVPL 2.887 4.242 5.099 3.234
Mandatorily FVPL 64.783 - -
Investments - 79.073
available for sale 82.912 87.000
held to maturity 8.751 7.826
Financial assets FV through other comprehensive
income 31.223 -
Securities at amortised cost 47.276 -
Loans and advances to customers 592.196 574.535 863.660 700.807
Investments in associates and joint ventures 1.203 1.088 1.141 962
Intangible assets 1.839 1.469 1.484 1.567
Current tax assets 202 324 314 322
Deferred tax assets 841 818 1.000 814
Other assets 8.433 13.087 14.722 12.261
Asset held for sale 1.262 - - 2.153
Total assets 887.030 846.216 845.081 1.005.233

30
Liabilities
Deposits from bank 37.330 36.821 31.964 33.813
Deposits from customer 555.812 539.799 522.942 664.241
Financial liabilities FVPL
Trading liabilities 3.125 73.596 83.167 88.807
Non-trading liabilities 2.299 2.331 3.541 4.257
Designated FVPL 59.179 11.215 12.266 12.616
Current tax liabilities 822 750 546 590
Provisions 1.011 1.713 2.028 964
Debt securities in issue 119.751 96.086 103.234 121.289
Subordinated loans 13.724 15.968 17.223 16.411
Equity
Share capital and share premium 17.088 17.045 16.989 16.982
Other reserves 3.586 4.362 5.897 5.759
Non-controlling interests 803 715 606 638
Total equity 51.735 51.121 50.399 48.470
Total liabilities and equity 887.030 846.216 845.081 1.005.233

31
ING Group - Consolidated simplified income statement
in € million 2018 2017 2016 2015
Interest Income 27.766 43.958 44.182 46.321
Provision for losses (PLL) - 656 - 676 - 974 - 1.347
Pre-tax net operating profit 5.532 6.448 4.348 4.766
Securities gains (losses) 1.306 820 1.555 1.406
Profit before taxes 6.838 7.268 5.903 6.172
Taxes - 2.027 - 2.281 - 1.618 - 1.637
Extraordinary items (net) - - 441 - 122
Net profit 4.811 4.987 4.726 4.413
Cash dividends 4.703 4.905 4.651 4.010

32
2.3.3 Ratios
RATIOS
ASO Average shares outstanding 3.870,2 3.877,9 3.884,8 3.890,0
SP Share Price - € 13,37 € 15,33 € 9,41 €
P/B Price to Book value - 1,04 1,47 0,72
DPS Dividend Per Share 0,65 0,66 0,67 0,68

33
2.3.4 Risk – Capital Ratios
RWA 2015 2016 2017 2018
(fully loaded) 321.151 314.325 309.887 314.149
(phased-in) 321.135 314.325 309.887 314.149
(fully loaded) 56.034 61.871 59.298 57.943
(phased-in) 54.325 60.765 57.410 57.801
Total Capital ratio
(fully loaded) 17,45% 19,68% 19,14% 18,44%
(phased-in) 16,92% 17,45% 18,53% 18,40%
Tier 1
(fully loaded) 47.362 52.274 50.729 50.831
(phased-in) 46.412 51.364 50.326 50.878
(fully loaded) 14,75% 16,63% 16,37% 16,18%
(phased-in) 14,45% 16,34% 16,24% 16,20%
Tier 2
(fully loaded) - - 11.086 8.248
(phased-in) - - 11.086 8.248
CET1
(fully loaded) 40.788 44.568 45.550 45.443
(phased-in) 41.554 44.466 45.581 45.493
CET1 ratio
(fully loaded) 12,70% 14,18% 14,70% 14,47%
(phased-in) 12,94% 14,15% 14,71% 14,48%
Leverage exposure
(fully loaded) 1.073.174 1.093.922 - -
(phased-in) 1.071.518 1.093.011 - -
Leverage ratio
(fully loaded) 4,40% 4,80% 4,70% 4,40%
(phased-in) 4,30% 4,70% - -

34
3.5 KBC Group
KBC Group is a Belgian universal multi-channel bank insurer founded in 2005. Its historical root came
from The Catholic Volksbank van Leuven, founded in 1889. The history of KBC bank is the result of
many different merges and acquisitions counting also Bremen Vorschussverein and Algemeene
Banvereeniging.
Over the past 20 years KBC built up a strong presence in many East European countries but after the
2008’s crisis proceeded with several disinvestment focusing its core business in six countries:
Belgium, The Czech Republic, Slovakia, Hungary, Bulgaria and Ireland.
The KBC service is typical of Retail Banking but it’s a modern universal bank. In 2017 with its 256 bln €
of total assets is the 1st largest bank in Belgium with a market share of 22.72% of domestic market.

35
KBC Group - Consolidated balance sheet
in € million 2018 2017 2016 2015
Assets
Cash and cash equivalent 18.691 29.727 20.148 7.038
Financial assets 256.916 254.753 246.836 23.746
Held for trading - 7.431 9.683 10.385
Designated FVPL - 14.484 14.185 16.514
Available for sale - 34.156 36.708 35.670
Loans and receivables - 167.458 152.152 141.305
Held to maturity - 30.979 33.697 32.958
Amortised cost 216.792 - - -
Fair value through OCI 18.279 - - -
FVPL 21.663 - - -
-of which held for trading 6.426 - - -
Hedging derivatives 183 245 410 541
Reinsurers' share in technical provisions, insurance 120 131 110 127
FV adjustment of the hedged items in portfolio hedge of interest
rate risk 64
-
78 202 105
Tax assets 1.549 1.625 2.312 2.336
Asset for current tax 92 82 66 107
Non-current assets held for sale 14 21 8 15
Investments in associated companies and joint ventures 215 240 212 207
Investment property - - 426 438
Goodwill and other intangible assets 1.330 1.205 999 959
Other assets 1.610 1.512 1.496 1.487
Total assets 283.808 292.342 275.200 252.356

36
Liabilities
Financial liabilities 242.626 251.260 234.300 -
Amortised cost 220.671 227.944 - -
FVPL 20.844 22.032 - -
-of which held for trading 5.834 6.998 - -
Hedging derivatives 1.111 1.284 - -
Technical provisions, before reinsurance 18.324 18.641 550.204 566.974
FV adjustment of the hedged items in portfolio hedge of interest
rate risk
-
79
-
86 25.740 9.803
Tax liabilities 380 582 3.598 3.270
Current tax liabilities 133 148 581.971 599.754
Deferred tax liabilities 247 434 17.295 28.010
Liabilities associated with disposal groups - - 155.440 175.005
Provisions 235 399 10.973 9.207
Equity
Common share 5.291 5.291 3.531 3.531
Additional paid-in capital 40.252 39.918 33.765 33.572
Common shares in treasury, at cost
-
15
-
9 -
-
10
Equity classified as obligation to purchase common shares - - - -
Accumulated other comprehensive income (loss), net of tax 253 520 3.550 4.404
Additional equity component 2.400 1.400 1.400 1.400
Total equity 19.633 18.803 17.357 15.811
Total liabilities and equity 283.808 292.342 275.200 252.356

37
KBC Group - Consolidated simplified income statement
in € million 2018 2017 2016 2015
Interest Income 6.996 6.337 6.642 7.150
Provision for losses (PLL) - - - -
Pre-tax net operating profit 3.070 2.612 2.360 2.129
Securities gains (losses) 240 1.055 729 406
Profit before taxes 3.310 3.667 3.089 2.535
Taxes - 740 - 1.093 - 662 104
Extraordinary items (net) - 1 - -
Net profit 2.570 2.575 2.427 2.639
Cash dividends 2.570 2.575 2.427 2.639
Retained profits - - - -

38
2.4.3 Ratios
RATIOS
ASO Average shares outstanding 418,1 418,4 418,6 416,2
SP Share Price 57,70 € 58,80 € 71,10 € 56,70 €
P/B Price to Book value 1,67 1,54 1,71 1,37
DPS Dividend Per Share - 2,80 3,00 3,50

39
2.4.4 Risk – Capital Ratios
RWA 2015 2016 2017 2018
(fully loaded) 89.067 87.782 92.410 94.875
(phased-in) - - - -
(fully loaded) 16.936 17.571 18.706 18.217
(phased-in) 17.305 17.887 18.725 18.217
Total Capital ratio
(fully loaded) 19,00% 20,00% 20,20% 19,20%
(phased-in) 19,80% 20,60% 20,40% 19,20%
Tier 1
(fully loaded) 14.647 15.286 16.504 16.150
(phased-in) 14.691 15.473 16.549 16.150
(fully loaded) 16,40% 17,40% 17,90% 17,00%
(phased-in) 16,80% 17,80% 18,00% 17,00%
Tier 2
(fully loaded) 2.289 2.285 2.202 2.067
(phased-in) 2.614 2.414 2.176 2.067
CET1
(fully loaded) 13.247 13.886 15.104 15.150
(phased-in) 13.242 14.033 15.131 15.150
CET1 ratio
(fully loaded) 14,90% 15,80% 16,30% 16,00%
(phased-in) 15,20% 16,20% 16,50% 16,00%
Leverage exposure
(fully loaded) 233.675 251.891 272.373 266.594
(phased-in) - - - -
Leverage ratio
(fully loaded) 6,30% 6,10% 6,10% 6,10%
(phased-in) - - - -

40
4 Comparative Analysis
After the analysis of the banks report several considerations can be done.
For this comparative analysis I took in consideration the variation, considering the four years subject
of analysis, using both absolute and percentual values to better understand which bank gains better
results.
Following a right order, the first step of the analysis begin by the Balance sheets. (Table 1, in
appendix)
• Total Asset: the only one bank that obtained an increasing on this value is KBC Group
with a +12.46%.
Source: Annual Reports 2015-2018, Deutsche Bank, Commerzbank, ING Group, KBC Group
-
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
1.800.000
2015 2016 2017 2018
Total Asset in € mln
DEUTSCHE BANK COMMERZBANK ING Group KBC Group

41
Continuing the analysis more information can be obtained form the income statement to evaluate
better the performance during the last 4 years. (Table 2, in appendix)
• Net Interest Margin: ING is the first bank with a + 10.79%, followed by KBC with a +
5.38%, a negative result is showed form the German banks with a mean close to -16%.
• Total Revenue: As the NIM the first bank is ING with a + 10.77% followed by KBC with a
+5.98%, German banks confirm problems with -15.81% for CB and a heavy -23.87% for DB.
-
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
2015 2016 2017 2018
Net Interest Margin in € mln
DEUTSCHE BANK COMMERZBANK
ING Group KBC Group
-
5.000
10.000
15.000
20.000
25.000
30.000
35.000
2015 2016 2017 2018
Total Revenue in € mln
ING Group KBC Group

42
• Operating Expenses: DB open the ranking with a reduction of -39.33%, due to a policy
of reducing expecially banches and employes, the only one with positive mark is ING with a
+16.36%
• Net Operating Income: This is a very important value that sum up the operating result
for the whole 4 years and show a notable result the Benelux banks. We see an increasing of
the operating profitability, expecially KBC with a +44% and low, but still growth for ING.
German banks show different result with an half NOI for CB but with an important variation
for DB that, coming from -4.412 € ml., gain a +1.855 € mln.
• Net Profit: Despite NOI, Net Profit shows the final result for the financial years and
represents similar values except a negative variation for KBC by -2.61%. Nothing compared to
DB that after several years, gains a positive value in absolute term with a +341 € mln. This
index shows all the efforts made by DB.
(8.000)
(6.000)
(4.000)
(2.000)
-
2.000
4.000
6.000
2015 2016 2017 2018
Net Profit in € mln
DEUTSCHE BANK COMMERZBANK ING Group KBC Group

43
Liquidity Ratio: German banks improve the ratio between cash and cash equivalent on total
asset by about 3 times more, followed buy KBC and ING with a positive increase of about the double.
The capacity ratio stopped to a mean of 95% for each of the 4 banks. (Table 3, in appendix)
Profitability Ratio
ROE: This ratio shows different trends and different values, again in term of profitability growth DB
shows the best result form a -10% in 2015 to a little more than 0%. It’s far form the other banks that
apart of CB, with a slight decrease to a +3.29%, travel to a values of +9.30% with a +0.205 of increase
for ING and to a +13.09% for KBC also if the value is in decrease.
To better understand the profitability of the banks I compared the values with the respective banking
systems and with the EU-28 zone. The result is coherent considering that German banks’ ROE is
increasing little to a value of 2.70% and below the mean of EU-28 with more than 5.7%. Benelux
banks’ ROE are instead above the EU-28 with a mean close to 8%. (Table 4, in appendix)
Source: Annual Reports 2015-2018, Deutsche Bank, Commerzbank, ING Group, KBC Group, European Central Bank,
Statistics Data Warehouse
-15,00%
-10,00%
-5,00%
0,00%
5,00%
10,00%
15,00%
20,00%
Return on Equity
2015 2016 2017 2018

44
ROA: The same consideration of ROE can be done for the ROA. German banks are below EU-28 and
Benelux bank are above. The four banks follow the same trend with little positive value for DB and CB
of 0.03% and 0.21%. ING and KBC show results of 0.54% and 0.91%. (Table 4, in appendix)
Share Price: The top of the ranking is reserved to a KBC bank that show an increase of the value
and however a good price with more than 50€. A decline instead is for DB that the last 10 years has
seen a dramatic fallen to less than 8€. The major shareholder of DB, a Chinese colossus, announced a
massive sale of shares and a resolution of its role if the value will go down 7 €. Many analyst’
forecasts this happen very soon. This is the biggest challenge for the first German bank.
Earnings per Share:
-0,50%
0,00%
0,50%
1,00%
1,50%
Return on Asset
2015 2016 2017 2018
-6
-4
-2
0
2
4
6
8
2015 2016 2017 2018
Earnings per share
ING Group KBC Group

45
Dividend per Share:
Capital Adequacy ratio: All of four banks show an improvement on this value, being above
the minimum requirements of the authorities. (Table 5, in appendix)
- €
0,50 €
1,00 €
1,50 €
2,00 €
2,50 €
3,00 €
3,50 €
4,00 €
2015 2016 2017 2018
Dividend per share
DEUTSCHE BANK ING Group KBC Group
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
40,00%
45,00%
RWA fully loaded as a & of Total Asset
2015 2016 2017 2018

46
Tier1 and CET1 ratio: Assuming a good position in terms of regulation, German banks show to
be below the mean of EU-28, in contrast with Benelux banks but of them are above minimum
requirements. It’s important to say that Benelux values are driven by the exceptional performance of
Luxembourg. (Table 6 and 7, in appendix)
0,00% 5,00% 10,00% 15,00% 20,00% 25,00% 30,00%
DEUTSCHE BANK
COMMERZBANK
ING Group
KBC Group
Germany
Belgium
Luxembourg
Netherlands
EU-28
Tier 1 Capital Ratio
2018 2017 2016 2015
0,00% 5,00% 10,00% 15,00% 20,00% 25,00% 30,00%
DEUTSCHE BANK
COMMERZBANK
ING Group
KBC Group
German
Belgium
Luxembourg
Netherlands
EU-28
CET1 ratio
2018 2017 2016 2015

47
5 Conclusion
The study brought me to some final considerations. We can consider in fact four banks which are the
most representative of their respective banking system.
Deutsche Bank and Commerzbank show difficulties on gaining profitability but in the same time their
effort on solve this important issue is repaid in visible betterments. ROE and ROA, but also the Net
Income and C/I are lined up with the German system. Relatively speaking, Deutsche Bank comes out
as the worst bank but it is the group with the biggest growth. German banking system show
difficulties on the side of shareholders’. EPS and DPS are lower than the other system and the
forecast are not so good.
Speaking about Benelux banking system is not an easy task, being composed by three different
countries with different economic patterns. One of the characteristic that link all those systems are
the ratios analyzed above. We can consider however Netherlands as a perfect synthesis of the three
countries.
The study of ING and KBC that are the most representative Benelux banks taugh us that this financial
system shows good results in term of profitability and a special attention for their shareholders. KBC
comes out as the best from this point of view.
This analysis compared to the entire European banking system put Benelux system largely above the
average, but also shows a healthy system strongly capitalized.
Germany, instead, showed to have suffered more the changes happened in the last years and deserve
a particular attention, mainly because those banks are bigger compared to the Belgian ones.
The positive data that comes out at the end of this study is that both system worked a lot and very
well from the point of view of the potential capital.

48
6. References
Bibliography
• Annual Report 2015-2018, Deutsche Bank
• Annual Report 2015-2018, Commerzbank
• Annual Report 2015-2018, ING Group
• Annual Report 2015-2018, KBC Group
• The performance of German credit institutions in 2017, Deutsche Bundesbank, Monthly
Report, September 2018 29
• The German Banking System: Characteristics and Challenges, House of finance, Patrick Behr
and Reinhard H. Schmidt, November 2015
• European bank performance: The deposit conundrum, Deutsche Bank, 18 November 2016
• European bank performance: Weak start to the year, but no disaster, Deutsche Bank Report,
June 21, 2016
• European bank recovery continues, but balance sheet growth is still lacking, Deutsche Bank
Report, December 15, 2017
• European banks: The truth is in the numbers – progress in 2015, Deutsche Bank Report, March
17, 2016
• Performance Analysis of the German Banking Sector before and throughout the recent
Financial Crisis 2001-2015, Antonios Serafeimidis, March 2018, Hellenic International
University
• European bank performance, 10 years after the crisis, Deutsche Bank Report, London, 21
March 2018
• European banks: Non-performing loans, negative rates & regulation, Deutsche Bank Report,
Nicosia, 1 December 2016
• European bank profits rise to post-crisis peak despite lower revenues in 2018 - capital ratios
down for the first time, Deutsche Bank Report, February 28, 2019
• RISK ASSESSMENT OF THE EUROPEAN BANKING SYSTEM, European Banking Authority,
December 2018
• BELGIUM: FINANCIAL SYSTEM STABILITY ASSESSMENT, International Monetary Fund, IMF
Country Report no. 18/67, Washington, D. C., November 21, 2018
• Statistical Data Warehouse, European Central Bank

49
Sitography
• National Bank of Belgium, https://www.nbb.be/en
• De Nederlandsche Bank, https://www.dnb.nl/
• Dundesbank, https://www.bundesbank.de/en
• European Central Bank, http://sdw.ecb.europa.eu/home.do
• European Banking Authority, https://www.abe-eba.eu/
• Commisision de Surveillance du Sectour Financier, http://supervisory-disclosure.cssf.lu/
• http://sdw.ecb.europa.eu/home.do
• https://alfred.stlouisfed.org/
• https://www.ft.com/
• https://www.economist.com/

50
7. Appendix
Table 1
Balance sheet 2015 2018 2015 2018
TA Total Assets 1.629.130 1.348.137 -17,25% 532.641 462.369 -13,19%
Ch Cash and cash equivalent 96.940 188.731 94,69% 28.509 53.914 89,11%
TL Total Liabilities 1.561.506 1.279.400 -18,07% 502.234 432.958 -13,79%
TSE Total Shareholders' Equity 62.678 62.495 -0,29% 29.403 28.211 -4,05%
TE Total Equity 67.624 68.737 1,65% 30.407 29.411 -3,28%
TLSE Total Liabilities and Shareholders' Equity 1.624.184 1.341.895 -17,38% 531.637 461.169 -13,25%
ING Group KBC Group
Balance sheet 2015 2018 2015 2018
TA Total Assets 1.005.233 887.030 -11,76% 252.356 283.808 12,46%
Ch Cash and cash equivalent 21.458 49.987 132,95% 7.038 18.691 165,57%
TL Total Liabilities 956.763 835.295 -12,70% 236.545 264.175 11,68%
TSE Total Shareholders' Equity 47.832 50.932 6,48% 14.411 17.233 19,58%
TE Total Equity 48.470 51.735 6,74% 15.811 19.633 24,17%
TLSE Total Liabilities and Shareholders' Equity 1.004.595 886.227 -11,78% 250.956 281.408 12,13%
Table 2
Income Statement 2015 2018 2015 2018
NII Net Interest Income 15.611 13.192 -15,50% 5.779 4.748
-
17,84%
TR Total Revenue 33.255 25.316 -23,87% 9.913 8.346
-
15,81%
TOE Total Operating Expenses 38.667 23.461 -39,33% 7.914 7.541 -4,71%
PBP Profit Before Provisions - 5.816 866 - 1.873 967
-
48,37%
NOI Net Operating Income - 5.412 1.855 - 1.999 805
-
59,73%
ING Group KBC Group
Income Statement 2015 2018 2015 2018
NII Net Interest Income 12.561 13.916 10,79% 4.311 4.543 5,38%
TR Total Revenue 16.532 18.312 10,77% 9.646 10.223 5,98%
TOE Total Operating Expenses 10.419 12.124 16,36% 7.517 7.153 -4,84%
PBP Profit Before Provisions 5.760 5.467 -5,09% 2.639 2.570 -2,61%
NOI Net Operating Income 6.113 6.188 1,23% 2.129 3.070 44,20%

51
Table 3
Liquidity Ratio
Cash position indicator 2015 2016 2017 2018
DEUTSCHE BANK 5,95% 11,40% 15,30% 14,00%
COMMERZBANK 5,35% 7,24% 12,32% 11,66%
ING Group 2,13% 2,15% 2,60% 5,64%
KBC Group 2,79% 7,32% 10,17% 6,59%
Capacity ratio 2015 2016 2017 2018
DEUTSCHE BANK 95,85% 95,92% 95,38% 94,90%
COMMERZBANK 94,29% 93,83% 93,36% 93,64%
ING Group 95,18% 94,04% 93,96% 94,17%
KBC Group 93,73% 93,69% 93,91% 93,08%
Table 4
Profitability ratio
ROE 2015 2016 2017 2018
DEUTSCHE BANK -10,01% -2,09% -1,08% 0,50%
COMMERZBANK 3,87% 1,29% 0,83% 3,29%
ING Group 9,10% 8,04% 9,36% 9,30%
KBC Group 16,69% 13,98% 13,69% 13,09%
Germany 1,72% 2,12% 2,73% -
Belgium 12,24% 11,03% 10,41% -
Luxembourg 5,41% 5,16% 5,64% -
Netherlands 7,55% 7,64% 9,12% -
EU-28 5,57% 5,29% 5,79% -
ROA 2015 2016 2017 2018
DEUTSCHE BANK -0,42% -0,09% -0,05% 0,03%
COMMERZBANK 0,22% 0,08% 0,06% 0,21%
ING Group 0,44% 0,48% 0,57% 0,54%
KBC Group 1,05% 0,88% 0,88% 0,91%
Germany 0,09% 0,11% 0,19% -
Belgium 0,71% 0,64% 0,66% -
Luxembourg 0,70% 0,69% 0,74% -
Netherlands 0,42% 0,43% 0,55% -
EU-28 0,36% 0,38% 0,44% -

52
Table 5
RWA (fully loaded) in % of Total
Asset 2015 2016 2017 2018
DEUTSCHE BANK 24,35% 22,48% 23,33% 25,96%
COMMERZBANK 37,21% 39,65% 37,79% 39,04%
ING Group 31,95% 37,19% 36,62% 35,42%
KBC Group 35,29% 31,90% 31,61% 33,43%
Germany 37,83% 38,25% 38,83% -
Belgium 31,04% 29,73% 31,54% -
Luxembourg 36,42% 36,81% 38,51% -
Netherlands 31,33% 30,75% 30,97% -
EU-28 33,61% 32,79% 33,91% -
Table 6
Tier 1 capital ratio (fully loaded) 2015 2016 2017 2018
DEUTSCHE BANK 12,30% 13,10% 15,40% 14,90%
COMMERZBANK 13,80% 13,90% 15,20% 13,40%
ING Group 14,75% 16,63% 16,37% 16,18%
KBC Group 16,40% 17,40% 17,90% 17,00%
Germany 15,28% 15,54% 16,38% -
Belgium 17,00% 17,76% 17,00% -
Luxembourg 27,63% 28,42% 27,26% -
Netherlands 16,19% 17,74% 18,42% -
EU-28 16,60% 17,73% 17,15% -
Table 7
CET1 ratio (fully loaded) 2015 2016 2017 2018
DEUTSCHE BANK 11,10% 11,80% 14,00% 13,60%
COMMERZBANK 13,80% 13,90% 14,10% 12,90%
ING Group 12,70% 14,18% 14,70% 14,47%
KBC Group 14,90% 15,80% 16,30% 16,00%
German 14,74% 14,93% 15,84% -
Belgium 15,99% 16,76% 16,05% -
Luxembourg 27,19% 28,00% 26,88% -
Netherlands 14,37% 15,49% 16,61% -
EU-28 16,24% 17,42% 16,59% -

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