Deutsche bank at_a_glance


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Deutsche bank at_a_glance

  1. 1. Deutsche BankDeutsche Bankat a Glance
  2. 2. About Deutsche BankDeutsche Bank is a leading global investment bankwith a substantial private clients franchise. Itsbusinesses are mutually reinforcing. The bankcompetes to be the leading global provider offinancial solutions, creating lasting value for itsclients, shareholders, people and the communitiesin which it operates.Against a backdrop of increasing globalization in theworld economy, Deutsche Bank is very well-positioned, with a presence in over 70 countries,significant regional diversification and substantialrevenue streams from all the major regions of theworld. The bank has established strong bases in allmajor emerging markets, and therefore has goodprospects for business growth in fast-growingeconomies, including the Asia-Pacific region, Centraland Eastern Europe, and Latin America. In its homemarket, Germany, Deutsche Bank is the undisputednumber one, and it has a leading market position inEurope, which is indispensible for the bank’s globalsuccess.Global presence London Dubai Dubai ba Frankfurt am Main Tokyo New York Singapore Regional major hub Capital of country in which we are represented2
  3. 3. Group DivisionsDeutsche Bank is organized into the Group DivisionsCorporate & Investment Bank (CIB), Private Clientsand Asset Management (PCAM) and CorporateInvestments (CI).Deutsche Bank’s core businesses are:Private & Business Clients offers a full range oftraditional banking products, including currentaccounts, deposits and loans, and investmentmanagement and pension products mainly toprivate and self-employed individuals, and small tomedium-sized businesses.Asset Management provides retail clients across theglobe with mutual fund products and offersinstitutional clients, including pension funds andinsurance companies, a broad range of services fromtraditional to alternative investment products.Private Wealth Management serves high net worthindividuals and families, trusts and foundations aswell as selected institutional investors worldwide.It provides these very discerning clients with afully-integrated wealth management service,including inheritance planning and philanthropicadvisory services. 3
  4. 4. Markets combines the sales, trading and structuringof a wide range of financial market products,including bonds, equities and equity-linked products,exchange traded and over-the-counter derivatives,foreign exchange, money market instruments,securitized instruments and commodities.Corporate Finance is responsible for mergers andacquisitions, including advisory; debt and equityissuance; and capital markets coverage of large andmedium-sized corporations. Regional and industry-focused teams ensure the delivery of the entire rangeof financial products and services to the clients.Global Transaction Banking delivers a comprehensiverange of commercial banking products and servicesfor corporate clients and financial institutions,including domestic and cross-border payments,professional risk management and internationaltrade financing. GTB also provides trust, agency,depositary, custody and related services.4
  5. 5. Corporate GovernanceEffective corporate governance in accordance withhigh international standards is a matter of course forDeutsche Bank. The system of corporate governanceprovides the basis for the responsible managementand control of the bank, with a focus on sustainablevalue creation. It has four key elements: goodrelations with shareholders; effective cooperationbetween the Management Board and SupervisoryBoard; a performance-based compensation systemwith a sustainable and long-term focus, as well astransparent and timely reporting.The essential framework for this is provided, firstand foremost, by the German Stock CorporationAct and the German Corporate Governance Code.Since the bank’s share is listed on the New YorkStock Exchange, Deutsche Bank is also subject tothe relevant U.S. capital market laws as well as therules of the Securities and Exchange Commission(SEC) and New York Stock Exchange (NYSE).Deutsche Bank continuously checks its systemof corporate governance in light of new events,statutory requirements and developments indomestic and international standards, and makesthe appropriate adjustments. A detailed CorporateGovernance Report, along with the Declaration ofConformity and other documents on the bank’scorporate governance, such as the terms of referencefor the Management Board, the Supervisory and itscommittees, are available on the Internet.Shareholders and the public are regularly kept up todate, above all, through the Annual Report, includingthe Consolidated Financial Statements, as well as theInterim Reports. Deutsche Bank Group’s reportingis in accordance with International FinancialReporting Standards (IFRS). This provides for a highdegree of transparency in financial reporting andfacilitates comparability with its international peers. 5
  6. 6. ShareholdersThe number of Deutsche Bank’s shareholdersincreased over the course of 2010 by about 54,000 toreach a new record high of roughly 640,000.Institutional investors held 75% of the capital; 25% ofthe share capital was held by private investors. All inall, the regional shareholders structure changed verylittle in 2010: 53% of all Deutsche Bank shares wereheld abroad, while 47% were held in Germany.Deutsche Bank informs its shareholders and analystsregularly about the development of its business andstrategy primarily through a toll-free shareholderhotline and the Internet portal. On the website, thebank provides all of the current company announce-ments and financial reports as well as the possibilityof viewing interactive analyses of the Deutsche Bankshare. At analyst meetings and telephone conferencecalls, the bank broadcasts additional informationlive via the Internet. Furthermore, shareholders canregister online to participate in the Annual GeneralMeeting and they can also issue their voting instruc-tions online in advance of the shareholders’ meeting.The share price decline in 2010 reduced the long-term total shareholder return. An investor whobought Deutsche Bank shares for the equivalent of€ 10,000 at the start of 1980, reinvested dividendsand subscribed to capital increases without injectingadditional funds would have held a portfolio worth€ 79,314 at the end of 2010. This corresponds to anaverage annual return of 7%.Long-term value2,0001,5001,000 500 0 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10Total Return Index, beginning of 1980 = 100, quarterly figures Deutsche Bank DAXSource: Datastream6
  7. 7. In 2010, Deutsche Bank announced the largestcapital increase in its history, intended to finance thetakeover of Deutsche Postbank AG. For this purpose,a resolution was passed to offer, in Germany andthe United States of America, a total of 308.6 millionnew common shares from authorized capital againstcash contributions. The shareholders reacted verypositively to this offer. All in all, the bank successfullyplaced all of the new Deutsche Bank shares issuedand generated gross issue proceeds of € 10.2 billion,which were even higher than initially expected.The share capital of Deutsche Bank AG increased by€ 790.1 million to € 2,379.5 million and the numberof common shares rose to 929,499,640 as of the endof 2010. The strong support for the capital increaseof more than € 10 billion in a particularly difficultenvironment for banks highlights the great trustthe shareholders have in Deutsche Bank’s futuredevelopment.The capital increase contributed to the bank’s marketcapitalization, which rose to € 36.3 billion by the endof the year 2010. The weighting of the DeutscheBank share in the DAX went up to 6.0% after 5.8%in 2009. The volume of trading in the share on Xetracame to € 160 billion during 2010, which means thebank ranked second among DAX shares.Useful information on the Deutsche Bank share2010Change in total return1 (11.72) %Share in equities trading (Xetra)1 6.80 %Average daily trading volume 2 8.0 million sharesShare price high 3 € 55.11Share price low 3 € 35.93Dividend per share (proposed for 2010) € 0.75As of December 31, 2010Issued shares 929,499,640Outstanding shares 919,062,360Share capital € 2,379,519,078.40Market capitalization € 36.34 billionShare price 4 € 39.10Weighting in the DAX 5.99 %Weighting in the STOXX 50 1.38 %1 Share price based on Xetra · 2 Orderbook statistics (Xetra) · 3 For comparison purposes, the shareprices have been adjusted for all periods before October 6, 2010 to reflect the impact of the sub-scription rights issue in connection with the capital increase. · 4 Xetra – closing price 7
  8. 8. ClientsDeutsche Bank is a reliable partner for its clients witha full range of financial solutions suited to theirindividual needs. The streamlining and accelerated integration of the Corporate & Investment BankGroup Division translate into a higher quality ofservice and an enhanced product range. With theinternationally competitive business model, the bankcan assist its clients in building their success. Andas a result of the expansion of the retail business,Deutsche Bank is now in a position to offer a suitablerange of products and services for all client groups inGermany.Deutsche Bank offers its clients a broad range offirst-class banking services. It provides private clientsas well as small to medium-sized businesses withan all-round service extending from account-keepingand cash and securities investment advisory to assetmanagement. The bank offers corporate andinstitutional clients the full product assortment of aninternational corporate and investment bank – frompayments processing and corporate finance to IPOsand M&A advisory. In addition, the bank has aleading position in international foreign exchange,fixed-income and equities trading.Number of clients (rounded) 2010 2009 2008Corporate & Investment Bank1 54,400 41,600 42,600Private Clients and Asset Management Private & Business Clients 28,787,000 14,600,000 14,600,000 – thereof: Deutsche Postbank AG 14,150,000 – – Asset & Wealth Management – Retail Asset Management 2 (Germany/Luxembourg) 2,225,000 2,119,000 1,937,000 – thereof: in cooperation 464,000 389,000 230,000 – Institutional Asset Management 2,300 2,300 2,300 – Private Wealth Management 3 79,400 78,000 1 92,0001 Change in counting method2 Including clients whose business relationship is managed by a cooperation partner3 Number of relationships excluding Private Client Services (U.S.A.), 2010 including Sal. Oppenheim8
  9. 9. StaffDeutsche Bank’s success is primarily thanks to itsstaff members, who bring their passion to performand expertise to furthering the company’s interests.The bank sees the diversity of its employees as anasset both in its internal interactions as well as in itsexternal relationships with clients. Deutsche Bankinvests heavily in the professional and personal skillsof its staff. The performance-based remunerationstructures are aligned to the long-term success andtake account of recent lessons learned from thefinancial crisis.Regional distribution of employeesTotal staff: 102,0621 Germany 48.3% Europe (excluding Germany), Middle East and Africa 23.3% Asia/Pacific 17.4% Americas 11.0%1 Full-time equivalent (as of December 31, 2010)As of the end of 2010, Deutsche Bank employedapproximately 100,000 people and operated in over70 countries out of more than 3,000 branchesworldwide. As an employer of people from 140nations, it is essential for the bank to provide abias-free, stimulating and inclusive workingenvironment.One of the primary aims of Deutsche Bank is tocontinue to position itself as an “employer of choice”.The goal is to recruit and retain the most talentedpeople. In 2010, the bank devoted special attentionto talent management, adjusting the compensationstructure and increasing the ratio of women in seniormanagement positions. Deutsche Bank continuallyexpanded its training curriculum in 2010 andprovides numerous benefits, from medical check-ups,advice on personal issues, to support in caring forchildren or family members. 9
  10. 10. SocietyResponsibility todayDeutsche Bank regards corporate socialresponsibility (CSR) as an investment in society andin its own future. The bank considers its topmostsocial responsibility to be internationally competitive,to earn commensurate profits, and to grow as acompany. The second priority as a good corporatecitizen is to earn money in a manner that is bothsocially and ecologically responsible. The third andmost visible part of CSR is the support for sociallybeneficial activities.Commitment to societyWith its educational activities, Deutsche Bankenables talent. With its social investments, the bankcreates opportunities, with its involvement inart & music, the bank fosters creativity. With itscommitment to sustainability, the bank ensureslong-term viability. With their corporate volunteeringactivities, people at Deutsche Bank committhemselves personally.As a responsible corporate citizen Deutsche Bank iscommitted to building social capital.CSR investments by area of activity2010 total of € 98.1 m.Corporate Volunteering 4% Social Investments 38% Art & Music 22% Education 36%With a total investment of nearly € 100 million in2010 – more than ever before – Deutsche Bank andits foundations were again among the world’s mostactive corporate citizens.10
  11. 11. Milestones1870 Deutsche Bank is founded in Berlin – its purpose: ”totransact banking business of all kinds, in particular to promoteand facilitate trade relations between Germany, other Europeancountries, and overseas markets”.1871/72 First branches in Bremen and Hamburg, followed bymore branches in, for example, Frankfurt am Main, Munich,Leipzig and Dresden.1873 Opening of the first European foreign branch in London.from 1880 Deutsche Bank begins to supply industry with loansand capital market products. Foreign investments in North andSouth America, Eastern Asia, and Turkey.from 1914 As a result of the acquisition of several regionalbanks, Deutsche Bank establishes a branch network all overGermany.1929 The biggest ever merger in German banking historycreates the “Deutsche Bank und Disconto-Gesellschaft”.1937 The company name is changed back to “Deutsche Bank”.1945 Closure of Deutsche Bank’s Berlin Head Office and of allbranches in the Soviet-occupied zone.1947/48 In the Western zones of occupation, Deutsche Bank isdecentralized into ten regional institutions.1952 The so-called Big Banks Act allows the amalgamation ofthe ten successor institutions into three joint stock companies:Norddeutsche Bank AG, Rheinisch-Westfälische Bank AG undSüddeutsche Bank AG.1957 Re-amalgamation of the three successor banks to formDeutsche Bank AG, a joint stock corporation with its registeredoffice in Frankfurt am Main.1959 Deutsche Bank enters retail banking by introducing smallpersonal loans.1989 Acquisition of Morgan Grenfell Group; with this step,Deutsche Bank strengthens its position in the internationalsecurities business and expands its presence on the importantLondon capital market.1999 Acquisition and integration of Bankers Trust in the U.S.A.;Deutsche Bank starts expansion in Middle East and opens abranch in Abu Dhabi (U.A.E.)2006 Complete acquisition of the Russian investment bankUnited Financial Group (UFG) and acquisition of the Germannorisbank.2007 Deutsche Bank closes the acquisition of Berliner Bank.2010 Takeover of Postbank and Sal. Oppenheim in Germany aswell as parts of ABN AMRO in the Netherlands. 11
  12. 12. A Profile in FiguresThe Group at a glance 2010 2009Basic earnings per share € 3.07 € 7.21Diluted earnings per share € 2.92 € 6.94Average shares outstanding, in m., basic 753 689Average shares outstanding, in m., diluted 791 717Return on average shareholders’ equity (post tax) 5.5% 14.6%Pre-tax return on average shareholders’ equity 9.5% 15.3%Pre-tax return on average active equity 9.6% 15.1%Book value per basic share outstanding € 52.38 € 52.65Cost / income ratio 81.6% 72.0%Compensation ratio 44.4% 40.5%Noncompensation ratio 37.3% 31.5%in € m. 2010 2009Total net revenues 28,567 27,952Provision for credit losses 1,274 2,630Total noninterest expenses 23,318 20,120Income (loss) before income taxes 3,975 5,202Net income (loss) 2,330 4,958in € bn. Dec 31, 2010 Dec 31, 2009Total assets 1,906 1,501Shareholders’ equity 48.8 36.6Core Tier 1 capital ratio 8.7% 8.7%Tier 1 capital ratio 12.3% 12.6%Number Dec 31, 2010 Dec 31, 2009Branches 3,083 1,964 thereof in Germany 2,087 961Employees (full-time equivalent) 102,062 77,053 thereof in Germany 49,265 27,321Long-term rating Dec 31, 2010 Dec 31, 2009Moody’s Investors Service Aa3 Aa1Standard & Poor’s A+ A+Fitch Ratings AA– AA–Dates and figures as of December 31, 201012
  13. 13. Our missionWe compete to be the leading global provider offinancial solutions, creating lasting value for ourclients, our shareholders, our people and thecommunities in which we operate.Our brandDeutsche is clear: we are here to perform – inbusiness and beyond. We do this with a unique mixof passion and precision. This measured approachgives us the confidence to enable agile minds to lookbeyond the obvious, gaining advantage for everyonewe work with.Our valuesPerformance – We are committed to a result-orientedculture.Trust – We behave reliably, fairly and honestly.Teamwork – We benefit from the diversity of ourbusiness and our people by working together toachieve success.Innovation – We are constantly challengingconventional wisdom and developing new solutionsto meet customer requirements.Client Focus – We place customers at the centre ofour activities and they drive all that we do.Our promiseExcellence. Relevant Client Solutions. Responsibility. 13
  14. 14. Further informationon the Internet: www.db.com003 72020 02 • 4/11