4. Compare the credit risks ratio (Allowance for Loan Losses/Total Loans) of the two banks in 2017. Which bank has a higher credit risk? Exhibit 2.3 Deutsche Bank's Loan Break down Loans by industry classification in m Financial intermediation Manufa Dec 31, 2017 52,204 27,478 Dec 31, 2016 49,618 29,290 Basic metals and fabricated metal products Electrical and optical equipment Transport equipment Chemicals and chemical products Machinery and equipment Food 4,211 3,386 3,374 3,623 3,191 2,907 36,524 150,205 13,711 19,252 4,027 4,680 3,655 3,906 2,461 3,214 37,093 150,776 15,740 16,744 27,369 561 26,129 60,223 ucts Households- Public sector Wholesale and retail trade Commercial real estate activities Lease financi Fund m Other 384 18,708 58,167 t activities thereof Renting of machinery and other business activities Transport, storage Mining and quarrying of energy-producing materials Electri 26,559 9,243 2,553 3,552 405,879 259 405,621 3,921 401,699 22,298 12,005 3,365 4,369 413,544 and communication as and water s Gross loans Deferred expenseunearned income Loans less (deferred expenseunearned income Less: Allowance for loan losses Total loans 413,455 4,546 408,909 Exhibit 2.4 Deutsche Bank's Loan Losses Break Down Impaired loans, allowance for loan losses and coverage ratios by region Dec 31, 2017 Impaired Loans Loan loss allowance Collectively Collectively Individually allowance for allowance for mpaired non-impaired allowanceloansloans Impaired loan ratio in % S7 ndividually Collectively assessed assessed in m Total Total assessed 953 1312e 527 2,266 600 823 104 Western Europe excluding German 1,471 45 497 70 ,749 147 170 35 272 10 1,422 815 45 67 2,892 113 822 92 60 Eastern Europe 123 498 70 292 49 102 21 North America Central and South America Asia/Pacific Africa 34 50 93 28 223 48 0 N/M 63 Total 3,348 2,886 6.234 1,766 1,745 410 3,921