Effective from 1st February 2001, Deutsche Bank has aligned its organisational structure to create the foundations for further growth and for exploitation of additional revenue potential.The core of the new structure is the focus on two customer-oriented groups, each with three Business Divisions respectively, under the roof of a "virtual holding" company.
The Group's new organisational structure is as follows:
- Corporate and Investment Bank (CIB)
The CIB Group integrates the activities of the Divisions Sales & Trading, Corporate Finance and Transaction Banking. This Group serves corporates and institutions ranging from small and medium-sized enterprises to multinational corporations. The integrated platform of CIB will promote increased cross-selling of capital markets products and transaction processing services leading to deeper client penetration.
- Private Clients and Asset Management (PCAM)
The Private Clients and Asset Management Group combines the Divisions Private Banking, Personal Banking (including DB 24 and eBrokerage activities) and Asset Management. This bundles and increases the distribution power of our business with private clients and asset management.
- Corporate Investments
All of Deutsche Bank's principal investment activities will be combined in one unit Corporate Investments. This unit will comprise investments in private equity and venture capital as well as industrial holdings currently managed by DB Investor.
- DB Services
Bank-wide operational support functions will be combined in DB Services as well as selected services which are marketable to clients outside Deutsche Bank.
The new Group management structure
is attached as enclosure 1.
Under the new structure, corporate relationship officers and investment bankers, on the one hand, and asset managers and private account officers on the other, will cooperate even more closely in the future. For the first time, our information technology (IT) will no longer be centrally managed. The decentralisation of IT services to the Divisions will increase the efficiency of the two customer centered Groups. Furthermore, the function of a Chief Operating Officer was created to focus on the coordinated management of the operating expenses of Deutsche Bank Group.Synergies
The Group's new structure will deliver net annual synergies of EUR 1.5 bn pre-tax beginning in 2003. The implementation of the organisational realignment will lead to one time costs totaling EUR 500 mn over the next two years.New financial targets through 2003
The aligned structure will drive Deutsche Bank's future growth. On the Group level the target is to grow Earnings per Share over the next three years at a compound annual growth rate of more than 15 %. The annual Return on Equity post-tax should grow on average more than 15 % through 2003. These Group targets are based on the planning of operating income excluding future capital gains from industrial holdings. The RoE calculation is based on a "qualified" book equity which excludes the price reserves in listed securites according IAS 39. Furthermore, new financial targets were set for Corporate and Investment Bank
and Private Clients and Asset Management
. For details see enclosure 2. Analyst Meeting
The Analyst Meeting
with Dr. Rolf-E. Breuer
regarding the details of our Group organisational alignment will take place today in Frankfurt.
The Analyst Meeting will be transmitted through the following channels:Via Internet
The speech of Dr Rolf-E. Breuer will be broadcasted live via internet at 10:45 a.m. CET. After the live broadcast the presentation will be available as a video-on-demand from 3 p.m. CET onwards.