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.”
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 …
... 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. 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.
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 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.
In the first quarter of 2020, we reduced adjusted costs excluding transformation charges and bank levies  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. We have also reduced headcount below 87,000 in Q1 2020.
Reduced costs for 9 consecutive quarters.
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 excluding transformation changes
 Excluding impact of €0.4bn from Prime Financne platform to be transferred to BNP Paribas
 After tax
 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.