Deutsche Bank Group - Overview


Seminar Paper, 2003

9 Pages, Grade: 1,0 (A)


Excerpt

Outline

1 Introduction

2 Company structure and service offerings
2.1 Company divisions
2.2 The Deutsche bank’s customers

3. Shareholders

4. Ratings

5. Balance sheet facts and third quarter results
5.1 3rd quarter results
5.2 Corporate and industrial shareholdings

6. Expansion
6.1 Becoming a global player
6.2 Regional diversified portfolio
6.3 Positioned vis –à - vis competitors

7. Regulation of Deutsche Bank

8. Board of managing directors

1.Introduction

In 1870 Deutsche Bank was founded by Georg Siemens in Berlin with the purpose: "to transact banking business of all kinds, in particular to promote and facilitate trade relations between Germany, other European countries and overseas markets"1) (Exhibit 1).[1] Today similar to other German Banks, Deutsche Bank group is a universal bank. With 69,300 employees, the bank serves more than 13 million customers in 76 countries worldwide; more than half of the bank's staff work outside Germany. The home market of the group is the European market, especially the German market. Deutsche Bank's international orientation is reflected in its staff. In June 2003, 31107 employees worked in Germany, 19250 in Europe (excluding Germany), 12747 in America, and 6205 in Asia/Pacific. The Deutsche Bank offers customers a broad range of modern banking services. With about 1,500 branches in Germany and extensive branch networks in Italy, Spain and Belgium. Deutsche Bank is the biggest bank in the Euro zone.

2. Company Structure and service offering

In 1998, Deutsche Bank launched a divisionalized group structure, initially with the aim of building up a global investment bank that would rank with the global leaders in all business lines. Deutsche Bank is currently organized in three groups: “Corporate and Investment Banking (CIB). Private Clients and Asset Management (PCAM) and Corporate Investment (CI)”[2]. Deutsche Bank provides private clients with an all-round service extending from account-keeping and cash and securities investment advisory to asset management. Deutsche Bank offers corporate and institutional clients the full product assortment of an international corporate and investment bank - from payments processing and corporate finance to support with IPOs and M&A advisory. Deutsche Bank has a leading position in international foreign exchange, fixed-income and equities trading. These services are better reflected in the company division. With the close cooperation between CIB and PCAM. Deutsche Bank symbolizes a type of universal bank that guarantees connectivity in an format between the interests of all market participants, of issuers and borrowers, on the one hand, and of private and institutional investors, on the other. In creating PCAM, the Deutsche Bank brought together in particular the activities in Personal Banking, Private Banking and Asset Management under one management team. In this division, the focus is on consistent alignment with core business, supported by the selective purchase of activities and by strategic cooperation in the distribution field. In this way, Deutsche Bank wants to make sure that the Group’s second “pillar” creates substantial and lasting value for the shareholders.

2.1 Company division

Deutsche bank is managed by the Board of Managing directors. This Board “concentrates on strategic management, resource allocation, risk management and control and in the fulfillment of regulatory requirements”[3]. Here Deutsche Bank has seven core businesses: In “global markets” division the Deutsche Bank offers trading, sales and research in foreign exchange, government, agency and investment grade debt, emerging markets, exchange-traded, OTC and credit derivatives, commodities, structured transactions, money markets, repo and securitization. In the equity section Deutsche Bank offers equities, research, equity derivatives structuring and trading. The global corporate finance section handles aspects of corporate finance, including traditional corporate loans and the issuance of corporate bonds and convertibles, advises on M&A and divestments, and provides support with IPOs. Another division is the global banking division whereupon Deutsche Bank handles global cash management, global trade finance, trust and security services and asset finance and leasing. The largest division is Private and Business Clients. This section serves 12.5 million retail and small business clients in important European countries. The focus market is Germany. In addition to this, P rivate Wealth Management offers special services for very healthy persons. The asset management for institutional and private clients, with its division DWS, has a leading position in Europe and is market leader in Germany .

2.2 The banks customers

At year end 2002, Deutsche Bank had 84,545 customer in CIB, 12,900,000 in Personal Banking, 403,000 in Private Banking, 8,100,000 customers in retail Asset Management, and 5,000 in institutional Asset Management.[4]

3. The Shareholders.

At year end 2002 the Deutsche Bank had about 513,000 shareholders[5] and had 621.854.246 shares issued. At the end of September 2003 only 579,358,236 shares were issued. Of the 579,358 million shares issued, about 45% were held by foreign investors. Thus underlining the international image of the Deutsche Bank Group. Institutional investors held about 80 % of all shares. From 1980 to 2002 the stock outperformed with an average annual growth rate of 8,5% the DAX (German share index) with 8%. Currently (Dec.5th,2003) Deutsche Bank has a weighting within the DAX of 9,1 % and the bank’s market capitalization is € 35,92 billion or $ 43.1 billion.[6]

[...]


[1] According to biography of Georg von Siemens; http://www.dhm.de/lemo/html/biografien/SiemensGeorg

[2] According to annual report 2002

[3] According to the annual report 2002

[4] According to the annual report 2002

[5] According to the annual report 2002

[6] According to “Deutsche Börse” – www.exchange.de

Excerpt out of 9 pages

Details

Title
Deutsche Bank Group - Overview
College
St. Cloud State University
Grade
1,0 (A)
Author
Year
2003
Pages
9
Catalog Number
V19800
ISBN (eBook)
9783638238434
File size
453 KB
Language
English
Tags
Deutsche, Bank, Group, Overview
Quote paper
Andreas Meinecke (Author), 2003, Deutsche Bank Group - Overview, Munich, GRIN Verlag, https://www.grin.com/document/19800

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