Prospectus - Notowania

as per the accounting standards applied, which were almost fully comprised of bonds
issued by Governments, public entities, companies and financial institutions (part of
the latter guaranteed) and guaranteed bank bonds (covered bonds and pfandbriefe), for
a total residual carrying value of €8,384 million as at September 30, 2009.
The sharp decrease in derivatives, which can also be seen in trading liabilities, can be
attributed to the fluctuations in market value (for example, regarding interest rates,
exchange rates, equity markets, credit spreads, etc.) which occurred primarily in Q2
and Q3 of 2009.
As at December 31, 2008, the item held for trading financial assets was 1.3% higher
than the previous year, as a result of a 39.2% reduction in non-derivative financial
assets offset by a trend in derivatives which grew by 89.2%. Approximately one-third
of the decrease in non-derivative financial instruments can be attributed to the
reclassification of financial assets comprising non-derivative structured credit
instruments issued by companies and financial institutions. The carrying value of the
reclassified assets as at December 31, 2008, amounted to approximately €18,353
million and was charged to “Financial assets held to maturity” for €148 million and to
“Loans to banks” and “Loans to customers” (for a total of €18,205 million) in
compliance with the amendments to IAS 39, for held for trading financial assets which
were no longer intended for trading due to the effects of reduced liquidity and the
lasting turbulence on the financial markets. During the year, there was also a reduction
of approximately €20 billion in equities and units in collective investment
undertakings, also as a result of the downturn in stock prices and in loans, as a result
of a contraction in operations. The increase in the item derivatives which, in line with
the bank’s methods for managing value-at-risk shows a similar trend to trading
liabilities, is primarily caused by the significant fluctuations in market values (for
example, regarding interest rates, exchange rates, equity markets) which occurred
primarily in Q4 of 2008.
The changes from December 31, 2006 and December 31, 2007 are partially due to the
inclusion of the Capitalia Group in the scope of consolidation. Net of the former
Capitalia Group component, the assets held for trading amounted to €198.7 billion at
the end of 2007. The remaining changes during the year (€7.1 billion) can be
explained by the operations of HVB, to which a share of assets held for trading greater
than 50% of the total can be attributed for all periods considered.
The breakdown of the portfolio of non-derivative held for trading financial assets into
the various categories of debtors/issuers shows that the share relating to banks
remained within 35.1% in 2006 and 41.4% in 2008, while central banks and public
entities rose from 11.1% in 2006 to 29.8% in 2008. The total weight of other issuers
(excluding units in collective investment undertakings) changed from 49.2% in 2006
to 25.8% in 2008.
The derivatives component primarily regards financial derivatives (from 97.3% in
2006 to 84.1% in 2008). The weight of credit derivatives increased from 2.7% to 15.9
% in the same period. The significant increase in credit derivatives – mainly credit
default swaps (CDS) - which is mirrored in the trading liabilities, can substantially be
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