Strategy

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.”

Christian Sewing, CEO
christian-sewing--ceo-vorstandvorsitzender.jpg

Latest transformation news

For more information, visit Investor Relations

 

Our Mission

Deutsche Bank is …

  • ...a leading European Corporate Bank based in Europe's 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 centre of our corporate, institutional and private clients’ needs
  • ...the risk manager and trusted advisor to our clients

We have taken five decisive actions …

Strategy – five decisive actions

... and have a clear plan for each of our divisions.

clear-plan-each-division

Our transformation is on track

Exiting businesses

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. As of Q1 2020, we have already made significant progress in deleveraging the CRU:

  • We have reduced risk-weighted assets to 44 billion euros.
  • Leverage exposure declined from 127 billion euros at year-end 2019 to 118 billion euros at the end of Q1 2020. 

Our progress:

Our Capital Release Unit reduced risk-weighted assets faster than expected while consuming fewer capital resources than anticipated.
Reduction of the Risk Weighted Assets (RWA) in the Capital Release Unit (CRU)

Creating four client-centric divisions which cooperate more closely

We have created four client-centric 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 in the first quarter of 2020 demonstrated that our core businesses are stable, and we have seen a positive momentum recently.:

  • Excluding specific items we managed to grow Core Bank revenues by 7 percent.
  • The adjusted pre-tax profit[1] of the Core Bank grew by 32 percent to 1.1 billion euros compared to the previous year. 
  • Credit volume grew by 25 billion euros in the first quarter. This represents a 6 percent increase. 

Our progress:

Revenues were stable or higher at all four businesses of our Core Bank in the first quarter 2020.
strategy-client-centric-divisions

Cutting costs

In the first quarter of 2020, we reduced adjusted costs excluding transformation charges and bank levies [2]  to 4.9 billion euros. This marks a reduction of 7 percent compared to the previous year. 

This means that we have seen the ninth consecutive quarter of annual cost reductions.[3] We have also reduced headcount below 87,000 in Q1 2020. 

Our progress:

Reduced costs for 9 consecutive quarters. 

Adjusted costs

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.

Our progress:

IT strategy has been launched and is being executed with a new leadership team

Managing and liberating capital

We are implementing our strategy on the basis of a strong and robust balance sheet. We said that we would target a CET-1 Ratio of minimum 12.5 percent throughout our transformation process. However, we made a conscious decision to, temporarily, let our CET-1 Ratio dip slighlty below 12.5%, should the demand for liquidity from our clients remain as high as right now. We need this room for manoeuvre in order to continue to strengthen our market position and be part of the solution in the economic recovery.

Our progress:

Our capital ratio (CET1) stood at 12.8% at the end of the first quarter 2020 - despite regulatory changes, the impact of the COVID-19 pandemic and our growth in business.
Common Equity Tier 1 (CET1) ratio outlook

We reaffirm our financial targets

KPI 2022 target 2019 target Progress as per end of 2019
Post-tax Return on Tangible Equity (RoTE)[6] 8%
CET1 ratio at least 12.5% >13% 13.6%
Adjusted costs[7] € 17bn
€ 21.5bn
€ 21.5bn,
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
[1] Pre-tax profit excluding specific revenue items, transformation charges, goodwill impairments and restructuring and severance expenses
[2] Excluding transformation-related effects and fourth-quarter expenses associated with the bank’s Prime Finance platform being transferred to BNP Paribas
[3] Excluding transformation costs and bank levies
[4] FX adjusted and excluding transformation changes
[5] Excluding impact of €0.4bn from Prime Financne platform to be transferred to BNP Paribas
[6] After tax
[7] Adjusted costs excluding transformation costs were reduced by 8 percent to € 5.5bn. Adjusted costs included bank levies primarily relating to Deutsche Bank’s contribution to the Single Resolution Fund of 503 million euros, and 98 million euros of reimbursable expenses associated with the transfer of the bank’s Prime Finance platform to BNP Paribas.

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Awards

Awards for Deutsche Bank
Deutsche Bank has been rewarded internationally with numerous outstanding awards.
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