Our focus is now on executing on the strategic updates we announced in the second quarter of 2018. We aim to improve returns to shareholders materially over time and to deploy our balance sheet and other resources to the highest return activities consistent with our client franchise and risk appetite. To achieve these primary objectives, we have defined four key strategic imperatives: First, shift the bank to a more stable revenue and earnings profile. Second, execute on clearly defined strategies in our Private & Commercial Bank (PCB) and our Asset Management (AM) businesses. Third, reshape our Corporate & Investment Bank (CIB) towards a model which emphasizes our core strength in transaction banking, capital markets, financing and treasury solutions. And fourth, reduce our costs and commit to an uncompromising cost culture.
“... we are in a strong position to start a new phase for Deutsche Bank. 2018 was all about stability, costs and control mechanisms. 2019 will be about retaining our rigorous discipline while boosting revenues: our goal is controlled growth. That is the only way we’ll achieve the 4 percent post-tax return on tangible equity target we set ourselves for the year.”
Our financial targets
‒ Post-tax Return on Average Tangible Equity of greater than 4% by 2019
‒ Adjusted costs of € 23 billion in 2018, and € 21.8 billion in 2019
‒ Full-time equivalent internal employees of below 93,000 by year-end 2018, and well below 90,000 by year-end 2019
Long-term operating target
‒ Post-tax Return on Average Tangible Equity of circa 10% in a normalized environment and on the basis of the achievement of our cost targets
‒ CRR/CRD 4 Common Equity Tier 1 capital ratio above 13%
‒ CRR/CRD 4 Leverage Ratio (phase-in) of 4.5 % over time
‒ A competitive dividend payout ratio
Progress on strategy implementation
Delivery on 2018 adjusted cost and headcount targets.
Deutsche Bank delivered ahead of target on costs. Noninterest expenses were 23.5 billion euros in 2018, down 5% year-on-year. Adjusted costs of 22.8 billion euros, down 5%, were below the bank’s full-year 2018 target of 23.0 billion euros.
Workforce reductions met Deutsche Bank’s 2018 target. On a full-time equivalent (FTE) basis, the number of internal employees was reduced to around 91,700 at the end of 2018, meeting the bank’s year-end target of below 93,000. Reductions more than offset hiring in growth areas and control functions.
(Media release, February 1, 2019)
February 1, 2019
Message from Christian Sewing on fourth-quarter results
Webcast Annual Media Conference
October 24, 2018
Message from Christian Sewing on third-quarter results
Interim Report as of September 30, 2018
July 25, 2018
Message from Christian Sewing on second-quarter results
April 26, 2018
Message from Christian Sewing on first-quarter results and Deutsche Bank’s strategy