Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) published its annual report for 2010 today. It consists of two sections: the Annual Review and the Financial Report. The Annual Review presents the bank’s corporate profile and corporate divisions, the development of the share as well as the bank’s staff and its corporate social responsibility activities. The Financial Report contains the audited Consolidated Financial Statements of Deutsche Bank for the 2010 financial year, prepared in accordance with the International Financial Reporting Standards (IFRS).
Josef Ackermann, Chairman of the Management Board, writes in his letter to the shareholders: “2011 will be the year in which we aim to fully leverage the strong, forward-looking market position built up in 2010.”
In its Financial Report, the bank also presents an extensive outlook (pages 141-148): financial industries across the globe will face major challenges in 2011 and 2012. On the one hand, banks will need to further increase revenue growth and profitability in a new macroeconomic environment, at the same time concentrating on cost discipline. And on the other hand, financial institutions must be ready to meet numerous new regulatory requirements, which in some cases will necessitate substantial adjustments to their business models.
Deutsche Bank has reiterated its profit target of €10 billion for income before income taxes from its core businesses Corporate & Investment Bank (CIB) and Private Clients and Asset Management (PCAM) for 2011. Beyond 2011, the bank aims to profit from its strong position as market leader in its home market and as a leading global investment bank. Based on its strong capital position, the bank is aiming for a more balanced distribution of earnings with 40% of pre-tax profits coming from its traditional banking business (PCAM and Global Transaction Banking - GTB) as well as for increased operational efficiency with a cost/income ratio of 65%.
Page 70 of the Financial Report also provides an overview of the bank’s net credit exposure with a number of European states: based on total assets of €1,906 billion, net risk positions with Greece total €1.6 billion, with Ireland €0.2 billion, Italy €8.0 billion, Portugal €(0.0) billion and with Spain €2.3 billion. Of this total of €12.1 billion, €6.9 billion is attributable to Postbank.
As stated in the Financial Report (page 132), compensation for the eight members of the Management Board came to €32.4 million in 2010, compared with €34.2 million in 2009. The compensation for Management Board Chairman Josef Ackermann amounted to €6.3 million in 2010 versus €7.5 million the previous year. In addition, Dr. Ackermann received €2.5 million for 2010 (2009: €1.9 million) in the form of deferred cash payment subject to various conditions. For the Management Board members, this compensation component totalled €12.4 million (2009: €4.0 million).
The number of (full-time) staff employed by Deutsche Bank Group rose by 25,009 in 2010 up to a total of 102,062, primarily as a result of the acquisition of the Sal. Oppenheim group and the first-time consolidation of Postbank.
The number of Deutsche Bank shareholders continued to increase in 2010. According to the Annual Review (page 30), there were 640,623 shareholders at the end of 2010, compared to 586,295 in 2009. At the end of 2010, 47 percent of the shares were held by shareholders from Germany. In 2009, this figure stood at 46 percent.
Deutsche Bank Group Remuneration Report
Furthermore, the Bank also published the Deutsche Bank Group Remuneration Report today, which is based on the Regulation on Remuneration in Financial Institutions (InstitutsVergV) issued by Germany’s Federal Financial Supervisory Authority (BaFin) on October 13, 2010. The report explains Deutsche Bank’s compensation system and practices. It states, for example, that so-called “regulated employees” receive 82% of their compensation on a deferred basis. As a result, this variable compensation contributes to mitigating potential risks and their possible effects.
The Annual Review and Financial Report 2010 as well as the Remuneration Report 2010 can be downloaded from Deutsche Bank’s website at www.deutsche-bank.com/reports.
Also available on this website: the final version of the Financial Data Supplement 4Q2010 as well as the Annual Report on Form 20-F (only in English) that will be submitted to the U.S. Securities and Exchange Commission (SEC) over the course of today.
Printed copies of the complete audited annual report and the Form 20-F can be ordered free of charge from http://www.deutsche-bank.de/ir/en/content/order_service.htm and will be sent out starting in the middle of April.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 15 March 2011 under the heading “Risk Factors.” Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir.
This release may also contain non-IFRS financial measures. For a reconciliation to directly comparable figures reported under IFRS, refer to the 4Q2010 Financial Data Supplement, which available at www.deutsche-bank.com/ir.