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.
“Making a strong start to our unprecedented transformation was all important. Clients, regulators and our own people have all voiced their firm support for the path we have embarked upon. This support will help us progress our transformation in a disciplined manner.”
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: transformation on track
3Q2019 results: Christian Sewing's message to staff
October 29, 2019
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 the third quarter, we have already made significant progress in deleveraging the CRU:
- Risk-weighted assets stood at 56 billion euros, compared to a full year target of 52 billion euros. This marks a reduction of 16 billion euros year-to-date.
- Leverage exposure declined by 104 billion euros in the first nine months to 177 billion euros, compared to a full year target of 139 billion euros.
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 third-quarter results have demonstrated that our core businesses are stable and resilient:
- Profitability across all four core businesses
- Resilient core business revenues with growth in loans and Assets under Management
- Increase in Debt Origination market share
- Notable improvement in cross-business collaboration in FX and Wealth Management
We are on track to reach our full year 2019 cost target. As of September 30, 2019, adjusted costs were down by 1.8 billion euros annualised compared to Q1 2018.
This means that we have seen the seventh 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 7 consecutive quarters. On track for 2019 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 Q3 2019|
|Post-tax Return on Tangible Equity (RoTE)||8%||4% RoTE in the Core Bank
(excl. transformation effects)
|CET1 ratio||at least 12.5%||>13%||13.4%|
|Adjusted costs*||€ 17bn
adjusted costs down by 1.8bn euros annualized since 1st quarter 2018
|Leverage ratio (fully loaded)||~5%||~4%||3.9%|
|Risk-weighted Assets (RWA) in Capital Release Unit (CRU)||€ 34bn||€ 52bn||€ 56bn,
reduced by € 9bn in the quarter and by € 16bn year-to-date