v3.25.4
Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2025
Allowance for Credit Losses [Abstract]  
Allowance for Credit Losses 19 — Allowance for Credit Losses
The allowance for credit losses consists of allowance for financial assets at amortized cost, financial assets at fair value
through OCI and off-balance sheet lending commitments and guarantee business.
Development of allowance for credit losses for financial assets at amortized cost
Dec 31, 2025
Allowance for Credit Losses1
in € m.
Stage 1
Stage 2
Stage 3
Stage 3 POCI2
Total
Balance, beginning of year
438
736
4,412
213
5,799
Movements in financial assets including new business and
credit extensions
(90)
178
1,663
9
1,760
Transfers due to changes in creditworthiness
119
(85)
(35)
N/M
—
Changes due to modifications that did not result in
derecognition
N/M
N/M
N/M
N/M
N/M
Changes in models3
(63)
91
(155)
—
(127)
Financial assets that have been derecognized during the
period4
—
—
(1,002)
—
(1,002)
Recovery of written off amounts
—
—
164
—
164
Foreign exchange and other changes
18
(33)
(447)
25
(437)
Balance, end of reporting period
421
888
4,600
247
6,156
Provision for Credit Losses excluding country risk5
(34)
185
1,473
9
1,633
N/M – Not meaningful
1 Allowance for credit losses does not include allowance for country risk amounting to € 7 million as of December 31, 2025
2 The total amount of undiscounted expected credit losses at initial recognition on financial assets that are purchased or originated credit-impaired initially recognized
during the reporting period was € 74 million in 2025 and € — million in 2024
3  Changes in models primarily reflect LGD model update and changes to the SICR model
4 This position represents charge offs of allowance for credit losses
5 Movements in financial assets including new business, transfers due to changes in creditworthiness and changes in models add up to Provision for Credit Losses excluding
country risk
Dec 31, 2024
Allowance for Credit Losses1
in € m.
Stage 1
Stage 2
Stage 3
Stage 3 POCI2
Total
Balance, beginning of year
447
680
3,960
198
5,285
Movements in financial assets including new business and
credit extensions
(150)
194
1,814
3
1,861
Transfers due to changes in creditworthiness
128
(128)
—
N/M
—
Changes due to modifications that did not result in
derecognition
N/M
N/M
N/M
N/M
N/M
Changes in models
(2)
(7)
—
—
(9)
Financial assets that have been derecognized during the
period³
—
—
(1,229)
—
(1,229)
Recovery of written off amounts
—
—
157
—
157
Foreign exchange and other changes
15
(3)
(290)
11
(267)
Balance, end of reporting period
438
736
4,412
213
5,799
Provision for Credit Losses excluding country risk4
(24)
59
1,814
3
1,852
N/M – Not meaningful
1 Allowance for credit losses does not include allowance for country risk amounting to € 14 million as of December 31, 2024
2 The total amount of undiscounted expected credit losses at initial recognition on financial assets that are purchased or originated credit-impaired initially recognized
during the reporting period was €— million in 2024 and €— million in 2023
3This position represents charge offs of allowance for credit losses
4Movements in financial assets including new business, transfers due to changes in creditworthiness and changes in models add up to Provision for Credit Losses excluding
country risk
Dec 31, 2023
Allowance for Credit Losses1
in € m.
Stage 1
Stage 2
Stage 3
Stage 3 POCI2
Total
Balance, beginning of year
533
626
3,656
180
4,995
Movements in financial assets including new business and
credit extensions
(195)
294
1,647
32
1,778
Transfers due to changes in creditworthiness
170
(150)
(20)
N/M
—
Changes due to modifications that did not result in
derecognition
N/M
N/M
N/M
N/M
N/M
Changes in models
(57)
(53)
—
—
(110)
Financial assets that have been derecognized during the
period³
—
—
(1,145)
(52)
(1,197)
Recovery of written off amounts
—
—
93
—
93
Foreign exchange and other changes
(3)
(38)
(271)
38
(273)
Balance, end of reporting period
447
680
3,960
198
5,285
Provision for Credit Losses excluding country risk4
(83)
92
1,627
32
1,668
N/M – Not meaningful
1 Allowance for credit losses does not include allowance for country risk amounting to € 4 million as of December 31, 2023
2 The total amount of undiscounted expected credit losses at initial recognition on financial assets that are purchased or originated credit-impaired initially recognized
during the reporting period was € — million in 2023 and € 46 million in 2022
3This position represents charge offs of allowance for credit losses
4Movements in financial assets including new business, transfers due to changes in creditworthiness and changes in models add up to Provision for Credit Losses excluding
country risk
Allowance for credit losses for financial assets at fair value through OCI1
December 31, 2025
Allowance for Credit Losses
in € m.
Stage 1
Stage 2
Stage 3
Stage 3 POCI
Total
Fair Value through OCI
12
22
14
—
48
1  Allowance for credit losses against financial assets at fair value through OCI remained at very low levels (€ 38 million at December 31, 2024 and € 48 million as of
December 31, 2025). Due to immateriality, no details on the year-over-year development is provided.
December 31, 2024
Allowance for Credit Losses
in € m.
Stage 1
Stage 2
Stage 3
Stage 3 POCI
Total
Fair Value through OCI
12
16
10
—
38
1Allowance for credit losses against financial assets at fair value through OCI were almost unchanged at very low levels (€ 48 million at December 31, 2023 and
€ 38 million as of December 31, 2024). Due to immateriality, no details on the year-over-year development is provided.
December 31, 2023
Allowance for Credit Losses
in € m.
Stage 1
Stage 2
Stage 3
Stage 3 POCI
Total
Fair Value through OCI
13
13
22
—
48
1Allowance for credit losses against financial assets at fair value through OCI were almost unchanged at very low levels (€ 69 millionat December 31, 2022 and € 48 million
as of December 31, 2023, respectively). Due to immateriality, no details on the year-over-year development is provided.
Development of allowance for credit losses for off-balance sheet positions
Dec 31, 2025
Allowance for Credit Losses1
in € m.
Stage 1
Stage 2
Stage 3
Stage 3 POCI
Total
Balance, beginning of year
106
82
173
—
361
Movements including new business
(12)
25
38
2
53
Transfers due to changes in creditworthiness
4
(2)
(2)
N/M
—
Changes in models
—
—
—
—
—
Foreign exchange and other changes
—
(8)
(13)
—
(21)
Balance, end of reporting period
98
96
196
2
393
of which: Financial guarantees
55
47
81
—
184
Provision for Credit Losses excluding country risk2
(8)
23
36
2
53
N/M – Not meaningful
1The above table breaks down the impact on provision for credit losses from movements in financial assets including new business, transfers due to changes in
creditworthiness and changes in models
2Allowance for credit losses does not include allowance for country risk amounting to € 12 million as of December 31, 2025
Dec 31, 2024
Allowance for Credit Losses1
in € m.
Stage 1
Stage 2
Stage 3
Stage 3 POCI
Total
Balance, beginning of year
117
88
187
—
393
Movements including new business
(22)
3
(19)
—
(38)
Transfers due to changes in creditworthiness
10
(9)
—
N/M
—
Changes in models
—
—
—
—
—
Foreign exchange and other changes
1
(1)
5
—
6
Balance, end of reporting period
106
82
173
—
361
of which: Financial guarantees
67
49
99
—
214
Provision for Credit Losses excluding country risk2
(13)
(6)
(20)
—
(38)
N/M – Not meaningful
1The above table breaks down the impact on provision for credit losses from movements in financial assets including new business, transfers due to changes in
creditworthiness and changes in models
2Allowance for credit losses does not include allowance for country risk amounting to € 2 million as of December 31, 2024
Dec 31, 2023
Allowance for Credit Losses1
in € m.
Stage 1
Stage 2
Stage 3
Stage 3 POCI
Total
Balance, beginning of year
144
97
310
—
551
Movements including new business
(39)
(3)
(118)
—
(160)
Transfers due to changes in creditworthiness
11
(4)
(7)
N/M
—
Changes in models
—
—
—
—
—
Foreign exchange and other changes
1
(2)
3
—
2
Balance, end of reporting period
117
88
187
—
393
of which: Financial guarantees
84
37
113
—
234
Provision for Credit Losses excluding country risk2
(28)
(7)
(125)
—
(160)
N/M – Not meaningful
1The above table breaks down the impact on provision for credit losses from movements in financial assets including new business, transfers due to changes in
creditworthiness and changes in models
2Allowance for credit losses does not include allowance for country risk amounting to € 9 million as of December 31, 2023