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.

“Looking back on the first year of our transformation, we are on track with, or even ahead of the objectives that we set ourselves. Our new strategy is paying off: client feedback and momentum as well as internal employee feedback demonstrates that we have found our path and execution is well underway. […]. The results in the second quarter and for the first half are ahead of our internal plans.”

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

Latest transformation news

  • Deutsche Bank is changing rapidly for the better, Fabrizio Campelli tells Handelsblatt

    Deutsche Bank is changing rapidly for the better, Fabrizio Campelli tells Handelsblatt

  • Update on our transformation progress and on the settlement with the DFS – Message from Christian Sewing to staff

    Update on our transformation progress and on the settlement with the DFS – Message from Christian Sewing to staff

  • Deutsche Bank reports pre-tax profit of 158 million euros in second quarter of 2020 with transformation fully on track

    2Q20: Deutsche Bank reports pre-tax profit of 158 million euros with transformation fully on track

  • Deutsche Bank to create International Private Bank

    Deutsche Bank to create International Private Bank

  • DB Privat- und Firmenkundenbank AG merges with Deutsche Bank AG

    DB Privat- und Firmenkundenbank AG merges with Deutsche Bank AG

  • Paul Achleitner and Christian Sewing

    Christian Sewing’s and Paul Achleitner’s AGM speeches now online

  • Deutsche Bank sets itself ambitious sustainability targets

    Deutsche Bank sets itself ambitious sustainability targets

  • Alexander von zur Mühlen, CEO for Asia Pacific and member of the Deutsche Bank Management Board

    Alexander von zur Mühlen, CEO for Asia Pacific and member of the Deutsche Bank Management Board

  • Deutsche Bank reports profitable quarter driven by revenue growth in core businesses – strategic transformation on track

    1Q20: Deutsche Bank reports profitable quarter driven by revenue growth in core businesses – strategic transformation on track

  • Financial reports confirm delivery on targets in 2019

    Financial reports confirm delivery on targets in 2019

  • Deutsche Bank successfully completes issuance of Additional Tier 1 capital

    Deutsche Bank successfully completes issuance of Additional Tier 1 capital

Deutsche Bank news about its transformation and strategy.

Find additional information also on the Investor Relations page.

 

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.

Deutsche Bank strategy: a clear plan for 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 associated systems have been shut down
  • Global Prime Finance and Electronic Equities businesses in the process of being 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 Q2 2020, we have made further progress in deleveraging the CRU:

  • We have reduced risk-weighted assets to 43 billion euros.
  • Leverage exposure declined from 118 billion euros in the prior quarter to 102 billion euros at the end of Q2 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 businesses 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 second quarter of 2020 demonstrated that our core businesses are stable and resilient, well-positioned to support our clients during the COVID-19 crisis:

  • Excluding specific items, we managed to grow Core Bank revenues by 8 percent compared to the previous year.
  • The adjusted pre-tax profit [1] of the Core Bank grew by 11 percent to 935 million euros compared to Q2 2019.
  • By the end of Q2, loan volume in the Core Bank was up 6% year on year.

Our progress:

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

Cutting costs

In the second quarter of 2020, we reduced adjusted costs excluding transformation charges [2] to 4.8 billion euros. This marks a reduction of 10 percent compared to the previous year.

This means that we have seen the tenth consecutive quarter of annual cost reductions. [3] This has also been supported by a total headcount reduction of over 4,000 full-time equivalents since Q2 2019.

Our progress:

Reduced costs for 10 consecutive quarters. 

Deutsche Bank strategy – cutting 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. This will also be enhanced by our recently announced global strategic partnership with Google Cloud. The partnership aims to redefine how we develop and offer financial services and radically improve our infrastructure efficiency.

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. We announced a strategic partnership with Google Cloud to drive a fundamental transformation of banking.

Managing and liberating capital

We are implementing our strategy on the basis of a strong and robust balance sheet. We ended the quarter with a CET-1 Ratio of 13.3%. This reflects lower loan balances driven by higher than expected repayments of credit facilities by clients, initially drawn in reaction to COVID-19. The solid capital and liquidity position gives us scope to continue to deploy resources to support clients in these challenging conditions.

Our progress:

Our capital ratio (CET1) stood at 13.3% (283 basis points above regulatory requirements) at the end of the second 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 2020 target Progress as per end Q2 2020
Post-tax Return on Tangible Equity (RoTE) [6] 8%
CET1 ratio at least 12.5% at least 12.5% 13.3%
Adjusted costs [4] € 17bn
€ 19.5bn [5]
Adjusted costs in the quarter stood at € 4.8bn [5]
Leverage ratio (fully loaded) ~5% ~4.5% 4.2%
Risk-weighted Assets (RWA) in Capital Release Unit (CRU) € 34bn € 43bn, reduced by € 29bn since 2018
[1] Pre-tax profit excluding specific revenue items, transformation charges, goodwill impairments and restructuring and severance expenses
[2] Excluding transformation-related effects and expenses eligible for reimbursement related to 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 Finance platform in the process of being transferred to BNP Paribas
[6] After tax

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Awards

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