CREDIT RISK

The credit risk incurred by the Group is the risk that counterparties fail to meet their obligations arising from operating activities and from financial transactions. To minimise credit risk from financial transactions, the Group only enters into transactions with prime-rated counterparties. The Group’s heterogeneous customer structure means that there is no risk concentration. Each counterparty is assigned an individual limit, the utilisation of which is regularly monitored. A test is performed at the balance sheet dates to establish whether an impairment loss needs to be charged on the positive fair values due to the individual counterparties’ credit quality. This was not the case for any of the counterparties as at 31 December 2010.

Default risks are continuously monitored in the operating business. The aggregate carrying amounts of financial assets represent the maximum default risk. Trade receivables amounting to €6,011 million (previous year: €4,881 million) are due within one year. The following table gives an overview of receivables that are past due:

Trade receivables changed as follows:

All other financial instruments are neither past due nor impaired. The heterogeneous structure of the counterparties prevents risk concentration. Other assets are expected to be collectible at any time.

50.2 Collateral

€301 million (previous year: €289 million) of collateral is recognised in non-current financial assets as at the balance sheet date. Among other things, this relates to the planned sale of Postbank shares. Deutsche Post AG is required to deposit payments from hedging transactions already settled as part of the sale of Deutsche Bank shares as collateral with Deutsche Bank AG. The collateral deposited is released when the mandatory exchangeable bond is exercised in February 2012. Other collateral relates to the settlement of residential building loans and existing leases.

Collateral of €39 million is recognised in current financial assets (previous year: €40 million). The bulk of this relates to collateral as part of the QTE leases.

In addition, Deutsche Post AG pledged 86,417,432 shares of Deutsche Postbank AG to Deutsche Bank AG. The collateral for 60 million shares is released when the mandatory exchangeable bond is exercised; for the remaining 26,417,432 shares it is released when one of the options is exercised (see market risk).

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