Deutsche Bank

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Deutsche Bank
Type	Public (NYSE: DB)
Founded	1870
Headquarters	Frankfurt am Main, Germany
Key people	Dr. Josef Ackermann, Chief Executive Officer and Chairman of the Management Board Dr. Clemens Börsig, Chairman of the Supervisory Board
Industry	Finance and Insurance
Products	Commercial Banking, Investment Banking, Private Banking, Asset Management, Mortgages
Revenue	▲ €55.217 billion (2006)^[1]
Net income	▲ €5.940 billion (2006)
Employees	75,140
Website	www.db.com

Deutsche Bank AG (pronounced [ˈdɔɪtʃə]^[2]) (ISIN: DE0005140008, NYSE: DB) (literal translation - German Bank) is a international Universal bank with a broad private clients franchise, headquartered in Frankfurt, Germany. The bank employs more than 78,000 people in 76 countries, has a large presence in Europe, the Americas, Asia Pacific and the emerging markets.

Deutsche Bank has offices in finance-hubs, including New York, London, Frankfurt, Singapore, Hong Kong and Tokyo. Furthermore, the bank is investing in expanding markets such as the Middle East, Latin America, Central & Eastern Europe and Asia Pacific.

The bank offers financial products and services for corporate and institutional clients along with private and business clients. Services include sales, trading and origination of debt and equity, risk management products such as derivatives, corporate finance, wealth management, retail banking, fund management and transaction banking.

Deutsche Bank’s Chief Executive Officer and Chairman of the Group Executive Committee, since 2002, is Dr. Josef Ackermann. The Bank in terms of is revenues, is one of the top three investment banks in the world.^{[citation needed]} Deutsche Bank is listed on both the Frankfurt (FWB) and New York stock exchanges (NYSE).

1 History
2 Performance
3 Management Structure
4 Business Structure
5 Notable current and former employees
- 5.1 Public service
6 See also
7 References
8 External links

[edit] History

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Deutsche Bank was founded in Germany in January 1870 as a specialist bank for foreign trade in Berlin. Its first branches, inaugurated in 1871 and 1872 were opened in Bremen, Hamburg, Frankfurt, Leipzig and Dresden.

The Bank’s first foray overseas came shortly afterwards, in Shanghai (1872) and London (1873). Already, at this early stage, the bank was looking further afield, making investments in North and South America, Asia and Turkey.

Furthermore, major projects in the early years of the bank included the Northern Pacific Railroad in the US and the Baghdad Railway (1888). In Germany, the bank was instrumental in the financing bond offerings of steel company Krupp (1885) and introduced the chemical company Bayer to the Berlin stock market.

The bank merged with other local banks in 1929 to create Deutsche Bank und DiscontoGesellschaft, at that point the biggest ever merger in German banking history. In 1937, the company name changed back to Deutsche Bank.

Following Germany's defeat in the second world war, the Allied authorities, in 1948, ordered Deutsche's break-up into ten regional banks. These 10 regional banks were later consolidated into 3 major banks in 1952: Norddeutsche Bank AG; Süddeutsche Bank AG; and Rheinisch-Westfälische Bank AG.

In 1957 these three banks merged to form Deutsche Bank AG with its headquarters in Frankfurt. Two years later, the bank entered retail banking by introducing small personal loans. In the 1970s, the bank pushed ahead with international expansion, opening new offices in new locations such as Moscow, London, Paris and Tokyo. In the 1980s this continued with the acquisition of Banca d’America e d’Italia, the first time the bank had acquired a sizeable branch location in another European country.

In 1989, the first steps towards creating a significant investment banking presence were taken with the acquisition of Morgan Grenfell, a UK-based investment bank. By the mid-1990s, the build up of a capital markets operation had got underway with the arrival of a number of high profile figures from major competitors. Ten years after the acquisition of Morgan Grenfell, the US firm, Bankers Trust was added.

In 2001, Deutsche Bank was listed on the New York Stock Exchange (NYSE). The following year, Deutsche Bank strengthened its US presence when it purchased Scudder Investments. Meanwhile, in Europe, Deutsche Bank increased its private banking business by acquiring Rued Blass & Cie (2002) and Russian investment bank United Financial Group (2006). In Germany, further acquisitions of Noris Bank and Berliner Bank strengthened Deutsche Bank’s retail offering in its home market. This series of acquisitions was closely aligned to the bank’s strategy of bolt-on acquisitions in preference to so-called “transformational” mergers. These formed part of an overall growth strategy that also targeted a sustainable 25% return on equity, something the bank achieved in 2005.

[edit] Performance

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Year	2007	2006	2005	2004	2003
Net Income	€6.5bn	€6.0bn	€3.8bn	€2.5bn	€1.4bn
Revenues	€30.7bn	€28.3bn	€25.6bn	€21.9bn	€21.9bn
Return on Equity	29%	30%	26%	16%	1%
Dividend	4.5	4.0	2.5	1.7	1.5

Deutsche Bank has been transformed * over the past five years, moving from a German-centric organisation that was renowned for its retail and commercial presence to a global investment bank that is less reliant on its traditional markets for its profitability.

The bank has been widely recognised for its progress and was named IFR Bank of the Year twice in a three year period, in 2003 and 2005.

For 2007, Deutsche Bank reported a profit of €6.5 billion, a 7% increase on 2006. The bank was less affected than some of its competitors by the subprime crisis that hit the financial markets in the summer of 2007. Deutsche Bank’s CEO, Josef Ackermann was one of the first prominent figures from the financial community to call for greater transparency among major institutions.

[edit] Management Structure

Until recently, there was no CEO at Deutsche Bank. The board was represented by a “speaker of the board”. Today, Deutsche Bank has a Management Board which comprises: Dr Josef Ackermann (Chairman and CEO); Dr Hugo Banziger (Chief Risk Officer); Anthony Di Iorio (Chief Financial Officer); and Hermann-Josef Lamberti (Chief Operating Officer).

The Group Executive Committee comprises the Management Board plus the heads of the bank’s business areas, namely: Michael Cohrs (Global Banking); Anshu Jain (Global Markets); Juergen Fitschen (Regional Management); Rainer Neske (Private & Business Clients); Kevin Parker (Asset Management); and Pierre de Weck (Private Wealth Management).

The bank also has a Supervisory Board which is currently chaired by Dr Clemens Boersig.

[edit] Business Structure

Deutsche Bank’s mission statement is: “We compete to be the leading global provider of financial solutions for demanding clients creating exceptional value for our shareholders and people.” The bank’s business model rests on two pillars: the Corporate & Investment Bank (CIB) and Private Clients & Asset Management. Both divisions have a strong ethos of client focus and shareholder value, backed by a vast array of products and services.

[edit] CIB

In little over a decade, Deutsche Bank’s CIB has established itself as one of the world’s leading investment banking houses. CIB comprises the Bank’s high profile and market-leading Global Markets business and Global Banking, which brings together advisory, equity capital markets and transaction banking business.

Global Markets contributes a major slice of Deutsche Bank’s profitability and revenues. The business is responsible for capital markets business including sales and trading of debt and equity, derivatives and other innovative products. Global Markets’ prowess in bond markets, Foreign Exchange and derivatives has brought many awards and accolades over the past five years.

Global Banking comprises a major Merger & Acquisitions practice that has grown significantly over the past five years. In 2007, the bank’s M&A business, in competition with banks and institutions with long-standing and well established M&A reputations, made further strides in building a world-class franchise. Global Banking also includes an equity capital markets business that has a significant and innovative presence in the European Initial Public Offering (IPO) market.

Global Transaction Banking, which forms part of Global Banking, deals with cash management, clearing, trade finance and trust & securities services.

CIB’s clients are mainly private and public sector institutions, including sovereign states, supranational bodies, global and multinational companies and medium-sized and small businesses.

[edit] PCAM

Private Clients & Asset Management (PCAM) comprises Private Wealth Management, Private & Business Clients and Asset Management. This trio of business divisions include Deutsche Bank’s investment management business for private and institutional clients, together with retail banking activities for private clients and small and medium-sized businesses.

[edit] Private Wealth Management

Private Wealth Management is the Bank’s private banking arm, serving high net worth individuals and families worldwide.

[edit] Private & Business Clients

Private & Business Clients is Deutsche Bank’s retail network which has grown significantly over the past few years, expanding in Italy, Spain and Poland as well as the bank’s home market of Germany. In the past two years, expansion has also taken place in emerging markets such as India and China. Asset Management manifests itself in a number of ways at Deutsche Bank. In Germany, DWS Investments is an award-winning a highly respected mutual fund manager with around EUR 270bn under management. In the US and Europe, RREEF Alternative Investments, the global alternative investment management arm of Deutsche Bank, had more than EUR 60bn of assets under management as at the end of 2007.

[edit] Communication

Early understanding of Modern Communication tools has contributed to create the international recognition Deutsche Bank enjoys today. In 1972 the Bank created the world known blue logo "Slash in a Square" designed by Anton Stankowski. In October 1998 the Bank was able to buy the Two Letter Domain db.com. There are only 676 two letter domains. The domain DB.com was already registered by Datacraft Systems but the Bank decided to pay a non published amount to get the initials through a domain transaction. Other important companies also using the same initials DB, like Deutsche Bahn or Dun & Bradstreet were less reactive and missed this opportunity. Deutsche Bank is now one of the few large corporations worldwide and the only Bank in Germany to own a two letter ".com" domain name.^[3]