Building on our foundation as a leading European Corporate Bank based in Europe's largest economy, we have transformed our business model. We operate where our clients want us to be and where we are competitive. As a result, we aim to become less complex and more profitable, improve shareholder returns and drive sustainable growth.
“Our new strategy is gaining traction. Stabilising revenues in the second half of 2019 and our consistent cost discipline both contributed to better operating performance than in 2018. We are progressing faster than expected. Our client business is developing well, right across the bank.”
Latest transformation news
FSB reduces G-SIB capital buffer requirement for Deutsche Bank
BNP Paribas and Deutsche Bank receive approvals on the agreement regarding Global Prime Finance & Electronic Equities
Fabrizio Campelli becomes head of the newly created Management Board function for Transformation and Human Resources
Deutsche Bank reports continued progress on strategic transformation
January 30th, 2020
FY2019 results: “I am very optimistic for 2020 and beyond” – Message from Christian Sewing to staff
January 30, 2020
Statement in response to reports on job cuts in Germany
October 9, 2019
Deutsche Bank is …
- ...a leading Corporate Bank in Europe based in its largest economy...
- ...with strong investment banking, private banking, wealth and asset management capabilities
- ...aligned with the strengths of the German economy around trade and investment
- ...at the center of our corporate, institutional and private clients’ needs
- ...the risk manager and trusted advisor to our clients
We have taken five decisive actions …
... and have a clear plan for each of our divisions.
Our transformation is on track
We have completed or initiated the exit and wind-down of non-strategic businesses and assets:
- Cash Equities positions have been exited and the shutdown of systems is in progress
- Sale of equity derivative portfolios started
- Global Prime Finance and Electronic Equities businesses will be transferred to BNP Paribas
- Fixed Income and other assets are being reduced
Our Capital Release Unit (CRU) is a key facilitator for exiting non-strategic businesses and assets. By the end of 2019, we have already made significant progress in deleveraging the CRU:
- Risk-weighted assets stood at 46 billion euros, so we overachieved our full year target of 52 billion euros. This marks a reduction of 26 billion euros year-to-date.
- Leverage exposure declined by 154 billion euros in 2019 to 127 billion euros. With that we have undercut our target of 140 million euros at the end of the year.
Creating four client-centric divisions which cooperate more closely
We have created four businesses, competing to win – a Corporate Bank, an Investment Bank, a Private Bank and Asset Management – and have implemented new leadership teams across all businesses.
Our results 2019 have demonstrated that our core businesses are stable, and we have seen a positive momentum recently.:
- Excluding specific items we managed to slightly grow Core Bank renvenues
- The adjusted pre-tax profit of the Core Bank grew by 7 percent in 2019 – despite all the unrest due to the transformation
- We have seen a positive momentum, especially at the end of the year. Fourth-quarter Core Bank revenues were 5.5 billion euros, up 5% year-on-year, or 8% adjusted for specific revenue items
- More than 7 percent of loan growth in the Core Bank
- Our Asset Management had net inflows in all four quarters of 2019 – a total of 25 billion euros for the year
In 2019 we reduced adjusted costs  to 21.5 billion euros, as we intended. Back in the first quarter of 2018 our annual running costs were approximately 2 billion euros higher.
This means that we have seen the eighth consecutive quarter of annual cost reductions. We have also reduced headcount below 90,000 for the first time since the Postbank acquisition.
Reduced costs for 8 consecutive quarters and achieved our 2019 cost target.
Investing in technology and growth
We are committed to investing in technology and will spend about 13 billion euros until 2022. This will go towards bolstering our cloud strategy as well as upgrading important legacy infrastructure and platforms that are vital for our day-to-day operations. In addition, we will use these funds to improve our offering for clients by developing innovative products and services for them.
Having a robust control environment will also become even more important in the future. That is why we are spending 4 billion euros on our controls by 2022.
Managing and liberating capital
We reaffirm our financial targets
|KPI||2022 target||2019 target||Progress as per end of 2019|
|Post-tax Return on Tangible Equity (RoTE)||8%|
|CET1 ratio||at least 12.5%||>13%||13.6%|
|Adjusted costs||€ 17bn
adjusted costs down by around 2bn euros annualized since 1st quarter 2018
|Leverage ratio (fully loaded)||~5%||~4%||4.2%|
|Risk-weighted Assets (RWA) in Capital Release Unit (CRU)||€ 34bn||€ 52bn||€ 46bn,
reduced by € 26bn in 2019
 Excluding transformation-related effects and fourth-quarter expenses associated with the bank’s Prime Finance platform being transferred to BNP Paribas
 Excluding transformation costs and bank levies
 FX adjusted and exclusing transformation changes
 Excluding impact of €0.4bn from Prime Financne platform to be transferred to BNP Paribas
 After tax
 Excluding transformation charges and impact from Prime Finance platform to be transferred to BNP Paribas