1) Which bank is more leveraged?

2) Suppose that, after the merge, the resulting (combined) bank wants to bring the overall Equity Multiplier to 15. Suggest possible ways of achieving this target leverage ratio

2 - Commaldatud racial Statements Deutsche Bank Annual Report 2018 Deutsche Bank Consolidated Balance Sheet Dec Yield 1981 8,881 0.25% 0.02 0.15 0.25 3,390 04 0.75% Assets: Cash and central bank balances Interbank balances (wio central banks) Central bank funds sold and securits purchased under resale agreements Securities borrowed Financial assets at fair value through profit or loss Trading assets Positive market values from derivative financial instruments Non-trading financial assets mandatory at fair value through profit and loss Financial assets designated at fair value through profit or loss Total financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets available for sale Equity method investments Loans at amortized cost Securities held to maturity Property and equipment Goodwill and other intangible assets Other assets Assets for current tax Deferred tax assets Total assets 3.85% 152.738 320.05 100.444 104 578.344 51.182 NA 879 400 207 NA 1.35 2.80 14.75 6.25% 1.35 4.25% 9.21 99.444 970 7,230 1,348, 137 Duration 1.15 0.03 Yield A4 564,405 99 1.55 0.05 1.80 0.25% 2.455 Liabilities and equity Deposits Central bank funds purchased and securities sold under repurchase agreements Securities loaned Financial liabides at fair value through profit or loss Trading labis Negative market values from derivative financial instruments Financial abilities designated at fair value through profit or loss Investment contractables Total financial abilities at fair value through profit or loss Other short-term borrowings Others Provisions Liabilities for current tax Deemed tax liable Long term debt Trust preferred securities Obligation to purchase common shares Total Fabrics Common shares, no par value, nominal value of 256 Additional pada capital Retained earnings Common shares intrat cost Equity classified as obligation to purchase common shares Accumulated other comprehensive income foss) net of tax Total shareholders' equity Additional equity components Noncontrolling interests Total equity Total liabilities and equity 59 924 301487 53.757 512 415 820 14,158 117518 2.711 944 512 159083 9,160 0 1,279.400 5,201 40252 11. (15 0 6.20 3.25 62.495 4,675 1,56 68,737 1,348, 137 Deutsche Bank Annual Report 2018 2 - Candidated Financial Statements Consolidated Statement of Income inc 2018 Interest and similar income 5 24,793 Interest expense 5 11,601 Net interest income 13,192 Provision for credit losses 21 525 Net interest income after provision for credit losses 12,667 Commissions and fee income 10,039 Net gains (losses on financial stabilities at fair value through profit or loss 1,332 Net gains losses) on financial assets at amortized cost Net gains (losses) on financial assets at fair value through 317 other comprehensive income Net gains (losses) on financial assets available for sale 7 NIA Net income (loss) from equity method investments 18 219 Other income foss) 215 Total noninterest income 12,124 Compensation and benefits 35 11,814 General and administrative expenses 9 11,286 Policyholder benefits and claims 0 Impairment of goodwill and other intangible assets 25 0 Restructuring acties 10 380 Total noninterest expenses 23,461 Income (oss) before income taxes 1,330 Income tax expense benet) 36 989 Net income (los) 341 Net income loss) attributable to rocontrolling interests 75 Net income (los) attributable to Deutsche Bank shareholders and additional equity components 257 and income induded 16.8 billion for the year anded December 31, 2018 con leche rest method Il-KIT11 Earnings per Share 2018 Na 11 IE0.01 (E 0.01) Earnings per share:13 Basic Diluted Number of shares in million: Denominator for basic amings per share- weighted average shares outstanding Denominator for diluted Gamings per share - ad usted weighted average shares after assumed conversions 2.1022 2.1022 Commerzbank Annual Report 2018 COMMERZBANK Balance sheet Duration Yield 31.12.2013 53,914 279,137 3,637 1270 5.35 1.75 3.40% 26,659 2377 wa 34,073 1.80 3.65% Assets Em Cash on hand and cash on demand Financial Assets - Amortised Cost of which pledged as collateral Financial Assets - Loans and Receivables of which pledged as collateral Financial Assets - FairValue OCI of which pledged as collateral Financial Assets - Available for Sale of which pledged as collateral Financial Assets - Fair Value Option of which pledged as collateral Financial Assets - Mandatorily Fair Value PEL of which pledged as collateral Financial Assets - Held for Trading of which pledged as collateral Value adjustment on portfolio fair value hedges Positive fair values of derivative hedging instruments Holdings in companies accounted for using the equity method Intangible assets Fixed assets Investment properties Non-current assets hold for sale and disposal groups Current tax assets Deferred tax assets Other assets Total 42.501 1.246 1.65 4.45 199 1,457 140 173 3,246 1,547 13 13.433 783 3,116 2,119 462.369 1.80 1.55 55 Adatto pening balance according to IFRS. Ise Note 51. Prayer figures and due to Duration Weld 1.25 31.12.2018 346 668 21,949 43,404 0.45% 5.35% 5.45 5.00 3.90% 532 1,462 1.15 2.75% 3,153 472 20 Liabilities and equity I em Financial Liabilities - Amortised Cost Deposits Financial Liabilities - FairValue Option Financial Liabilities - Hold for Trading Value adjustment on portfolio fair value hedges Negative fair values of derivative hedging instruments Provisions Current tax liabilities Deferred tax abilities Liabilities of disposal groups Other liabilities Equity Subscribed capital Capital reserve Retained earnings Other reserves with recycling Total before non controlling interests Non-controlling interests Total 12,914 2.55% 1.40 2.15 2384 2.90 29,411 1.252 17,192 10,054 -287 28,211 1,200 462,369 Adjustments to opening balance actors. No Prior-year ressed due to rest 4 Statement of comprehensive income Income statement 1.1.-31.12.2018 7,318 1,351 8,670 3,922 4,748 36 -446 n/a n/a 3.751 662 3,089 (16) 366 Em Notes Interest income accounted for using the effective interest method (10) Interest income accounted for not using the effective interest method (100 Interest income (100 Interest expenses (10) Net interest income (100 Dividend income (11) Risk result (12) Loan loss provisions (13) Other realised profit or loss and netre measurement gain or loss (14) Commission income (15) Commission expenses (15) Net commission income (15) Net income from financial assets and liabilities at fair value through profit or loss Net income from hedge accounting (17) Other sundry profit or less from financial instruments Gain or loss on disposal of financial assets - Amortised Cost Other profit or loss from financial instruments Current net income from companies accounted for using the equity method (19) Other net income 201 Operating expenses (21) (22) Restructuring expenses Pre-tax profit or loss from continuing operations Taxes on income Consolidated profit or loss from continuing operations Consolidated profit or loss from discontinued operations Consolidated profit or loss Consolidated profit or loss attributable to non-controlling interests Consolidated profit or loss attributable to Commerzbank shareholders Prioryaw figures restated to change in reporting plus other statements Note 48 40 26 12 245 6,879 1,245 268 978 -10 968 103 865 1.1.-31.12.2018 Earnings per share (251 0.69 2 - Commaldatud racial Statements Deutsche Bank Annual Report 2018 Deutsche Bank Consolidated Balance Sheet Dec Yield 1981 8,881 0.25% 0.02 0.15 0.25 3,390 04 0.75% Assets: Cash and central bank balances Interbank balances (wio central banks) Central bank funds sold and securits purchased under resale agreements Securities borrowed Financial assets at fair value through profit or loss Trading assets Positive market values from derivative financial instruments Non-trading financial assets mandatory at fair value through profit and loss Financial assets designated at fair value through profit or loss Total financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets available for sale Equity method investments Loans at amortized cost Securities held to maturity Property and equipment Goodwill and other intangible assets Other assets Assets for current tax Deferred tax assets Total assets 3.85% 152.738 320.05 100.444 104 578.344 51.182 NA 879 400 207 NA 1.35 2.80 14.75 6.25% 1.35 4.25% 9.21 99.444 970 7,230 1,348, 137 Duration 1.15 0.03 Yield A4 564,405 99 1.55 0.05 1.80 0.25% 2.455 Liabilities and equity Deposits Central bank funds purchased and securities sold under repurchase agreements Securities loaned Financial liabides at fair value through profit or loss Trading labis Negative market values from derivative financial instruments Financial abilities designated at fair value through profit or loss Investment contractables Total financial abilities at fair value through profit or loss Other short-term borrowings Others Provisions Liabilities for current tax Deemed tax liable Long term debt Trust preferred securities Obligation to purchase common shares Total Fabrics Common shares, no par value, nominal value of 256 Additional pada capital Retained earnings Common shares intrat cost Equity classified as obligation to purchase common shares Accumulated other comprehensive income foss) net of tax Total shareholders' equity Additional equity components Noncontrolling interests Total equity Total liabilities and equity 59 924 301487 53.757 512 415 820 14,158 117518 2.711 944 512 159083 9,160 0 1,279.400 5,201 40252 11. (15 0 6.20 3.25 62.495 4,675 1,56 68,737 1,348, 137 Deutsche Bank Annual Report 2018 2 - Candidated Financial Statements Consolidated Statement of Income inc 2018 Interest and similar income 5 24,793 Interest expense 5 11,601 Net interest income 13,192 Provision for credit losses 21 525 Net interest income after provision for credit losses 12,667 Commissions and fee income 10,039 Net gains (losses on financial stabilities at fair value through profit or loss 1,332 Net gains losses) on financial assets at amortized cost Net gains (losses) on financial assets at fair value through 317 other comprehensive income Net gains (losses) on financial assets available for sale 7 NIA Net income (loss) from equity method investments 18 219 Other income foss) 215 Total noninterest income 12,124 Compensation and benefits 35 11,814 General and administrative expenses 9 11,286 Policyholder benefits and claims 0 Impairment of goodwill and other intangible assets 25 0 Restructuring acties 10 380 Total noninterest expenses 23,461 Income (oss) before income taxes 1,330 Income tax expense benet) 36 989 Net income (los) 341 Net income loss) attributable to rocontrolling interests 75 Net income (los) attributable to Deutsche Bank shareholders and additional equity components 257 and income induded 16.8 billion for the year anded December 31, 2018 con leche rest method Il-KIT11 Earnings per Share 2018 Na 11 IE0.01 (E 0.01) Earnings per share:13 Basic Diluted Number of shares in million: Denominator for basic amings per share- weighted average shares outstanding Denominator for diluted Gamings per share - ad usted weighted average shares after assumed conversions 2.1022 2.1022 Commerzbank Annual Report 2018 COMMERZBANK Balance sheet Duration Yield 31.12.2013 53,914 279,137 3,637 1270 5.35 1.75 3.40% 26,659 2377 wa 34,073 1.80 3.65% Assets Em Cash on hand and cash on demand Financial Assets - Amortised Cost of which pledged as collateral Financial Assets - Loans and Receivables of which pledged as collateral Financial Assets - FairValue OCI of which pledged as collateral Financial Assets - Available for Sale of which pledged as collateral Financial Assets - Fair Value Option of which pledged as collateral Financial Assets - Mandatorily Fair Value PEL of which pledged as collateral Financial Assets - Held for Trading of which pledged as collateral Value adjustment on portfolio fair value hedges Positive fair values of derivative hedging instruments Holdings in companies accounted for using the equity method Intangible assets Fixed assets Investment properties Non-current assets hold for sale and disposal groups Current tax assets Deferred tax assets Other assets Total 42.501 1.246 1.65 4.45 199 1,457 140 173 3,246 1,547 13 13.433 783 3,116 2,119 462.369 1.80 1.55 55 Adatto pening balance according to IFRS. Ise Note 51. Prayer figures and due to Duration Weld 1.25 31.12.2018 346 668 21,949 43,404 0.45% 5.35% 5.45 5.00 3.90% 532 1,462 1.15 2.75% 3,153 472 20 Liabilities and equity I em Financial Liabilities - Amortised Cost Deposits Financial Liabilities - FairValue Option Financial Liabilities - Hold for Trading Value adjustment on portfolio fair value hedges Negative fair values of derivative hedging instruments Provisions Current tax liabilities Deferred tax abilities Liabilities of disposal groups Other liabilities Equity Subscribed capital Capital reserve Retained earnings Other reserves with recycling Total before non controlling interests Non-controlling interests Total 12,914 2.55% 1.40 2.15 2384 2.90 29,411 1.252 17,192 10,054 -287 28,211 1,200 462,369 Adjustments to opening balance actors. No Prior-year ressed due to rest 4 Statement of comprehensive income Income statement 1.1.-31.12.2018 7,318 1,351 8,670 3,922 4,748 36 -446 n/a n/a 3.751 662 3,089 (16) 366 Em Notes Interest income accounted for using the effective interest method (10) Interest income accounted for not using the effective interest method (100 Interest income (100 Interest expenses (10) Net interest income (100 Dividend income (11) Risk result (12) Loan loss provisions (13) Other realised profit or loss and netre measurement gain or loss (14) Commission income (15) Commission expenses (15) Net commission income (15) Net income from financial assets and liabilities at fair value through profit or loss Net income from hedge accounting (17) Other sundry profit or less from financial instruments Gain or loss on disposal of financial assets - Amortised Cost Other profit or loss from financial instruments Current net income from companies accounted for using the equity method (19) Other net income 201 Operating expenses (21) (22) Restructuring expenses Pre-tax profit or loss from continuing operations Taxes on income Consolidated profit or loss from continuing operations Consolidated profit or loss from discontinued operations Consolidated profit or loss Consolidated profit or loss attributable to non-controlling interests Consolidated profit or loss attributable to Commerzbank shareholders Prioryaw figures restated to change in reporting plus other statements Note 48 40 26 12 245 6,879 1,245 268 978 -10 968 103 865 1.1.-31.12.2018 Earnings per share (251 0.69