In the second quarter of 2018, we announced changes to our strategy and updates to our financial targets. Management is focused on materially improving returns to shareholders over time and on deploying 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.

Christian Sewing, Chief Executive Officer

Christian Sewing, Chief Executive Officer

“... 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.”

Christian Sewing (message to the bank’s employees, February 1, 2019)

Our financial targets

Near-term operating targets
‒ Post-tax Return on Average Tangible Equity of greater than 4% in 2019
‒ Adjusted costs of € 21.8 billion in 2019
‒ Full-time equivalent internal employees of 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

Capital 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

In 2018, we delivered on our adjusted cost and headcount targets. Our adjusted costs of € 22.8 billion, were below our € 23 billion target. On a full-time equivalent (FTE) basis, we reduced the number of internal employees to 91,737 at year end 2018, compared to our target of below 93,000. Our Common Equity Tier 1 ratio at 13.6 % is above our target, and our leverage ratio on a phased-in basis improved to 4.3% compared to 4.5%, our target over time.

(Annual Report 2018)
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