Notes to the Income Statement
33. Provisions for risks and charges
The largest individual item in net provisions for risks and charges is the expense for rental guarantees related to premises no longer required for banking operations that were vacated in the course of space-optimisation programmes. As a result of discontinuing the use of space, existing tenancy/leasing contracts became onerous contracts for which provisions of €60 milllion must be set aside to meet contractual obligations arising under what are defined by IAS 37.66 as onerous contracts. This will no longer affect our income statements in future years.
Besides further small transfers to provisions for rental guarantees, this item also includes other provisions and accruals for risks and charges as well as provisions for litigation risks in the lending business.