Deutsche Bank Profile
Deutsche Bank Aktiengesellschaft (Deutsche Bank) provides investment, financial and related products and services to private individuals, corporate entities, and institutional clients around the world.
As of December 31, 2021, the company operated in 58 countries with 1,709 branches, of which 67 % were located in Germany. It offers a variety of investment, financial and related products and services to private individuals, corporate entities, and institutional clients around the world.
Segments
The company operates through Corporate Bank (CB), Investment Bank (IB), Private Bank (PB), Asset Management (AM), and Capital Release Unit (CRU) segments.
CB segment
This segment primarily focuses on serving corporate clients, including the German ‘Mittelstand’, larger and smaller sized commercial and business banking clients in Germany, and multinational companies. It is also a partner to financial institutions with regards to certain Transaction Banking services.
Commencing from the first quarter of 2021, this segment reported revenues based on three client categories, including Institutional Client Services, Corporate Treasury Services and Business Banking. Institutional Client Services includes cash management for institutional clients, and trust and agency services, as well as securities services. Corporate treasury services provide a suite of trade finance and lending, as well as corporate cash management for multinational and German large and mid-sized corporate clients. Business Banking covers small corporates and entrepreneur clients in Germany and offers a holistic, largely standardized product suite.
Products and Services
This segment is a global provider of risk management solutions, cash management, lending, trade finance, trust and agency services, as well as securities services. Focusing on the finance departments of corporate and commercial clients and financial institutions in Germany and across the globe, the company’s expertise and global network allows it to offer integrated solutions.
In addition to the Corporate Bank product suite, the company’s coverage teams provide clients with access to the expertise of the Investment Bank.
Distribution Channels and Marketing
The global Coverage function of the Corporate Bank focuses on international large corporate clients and is organized into two units, including Coverage and Risk Management Solutions. Coverage includes multi-product generalists covering headquarter level and subsidiaries via global, regional and local coverage teams. Risk Management Solutions includes Foreign Exchange, Emerging Markets and Rates product specialists. This unit is managed regionally in APAC, the Americas and EMEA (Europe, the Middle East and Africa) to ensure connectivity to its clients.
Corporate clients in Germany are served out of two units, including Corporate Treasury Services and Business Banking. Corporate Treasury Services covers mid and large corporate clients across two brands, Deutsche Bank and Postbank (Deutsche Postbank AG), and offers the whole range of solutions across cash, trade financing, lending and risk management for the corporate treasurer. Business Banking covers small corporates and entrepreneur clients and offers a standardized product suite and selected contextual-banking partner offerings (e.g. accounting solutions).
IB segment
This segment combines the company’s Fixed Income, Currency (FIC) Sales & Trading and, Origination & Advisory, as well as Deutsche Bank Research. The company focuses on its traditional strengths in financing, advisory, fixed income and currencies, bringing together wholesale banking expertise across coverage, risk management, sales and trading, Investment Banking and infrastructure.
Products and Services
FIC Sales & Trading brings together an institutional sales force, research, trading and structuring expertise across Foreign Exchange, Rates, Emerging markets, Credit trading and Financing. The FIC Sales & Trading business operates globally and provides both corporate and institutional clients liquidity and market making services and a range of specialized risk management solutions across products, complemented by a comprehensive financing offering.
Origination and Advisory is responsible for the company’s debt origination business, mergers and acquisitions (M&A), and an equity advisory and origination platform. It includes regional and industry-focused coverage teams, co-led from the company’s hubs in Europe, the U.S. and the Asia Pacific that facilitates the delivery of a range of financial products and services to its corporate clients.
Distribution Channels and Marketing
Coverage of the IB’s clients is provided principally by three groups working in conjunction with each other, including The Institutional Client Group, which houses the company’s debt sales team. Risk Management Solutions in the Corporate Bank, which covers capital markets and Treasury solutions and Investment Banking Coverage within Origination & Advisory. The cooperation between these groups help to create synergies leading to the cross selling of products/solutions to its clients.
PB segment
This segment serves personal and private clients, wealthy individuals, entrepreneurs and families. The international businesses also focus on commercial clients. PB is organized along two business divisions, including Private Bank Germany and International Private Bank.
In August 2021, Deutsche Bank SpA signed an agreement to sell its financial advisors network in Italy (Deutsche Bank Financial Advisors) to Zurich Italy. The transaction is subject to regulatory approval and is expected to close in 2022.
Products and Services
PB’s product range includes payment and account services, credit and deposit products, as well as investment advice, including a range of Environmental, Social and Governance (ESG) products, which enable their clients to invest in line with their values and according to specified ESG strategies, scores and exclusionary criteria.
Private Bank Germany pursues a customer-focused approach with two complementary main brands, such as Deutsche Bank and Postbank. With the Deutsche Bank brand, the division focuses on providing their private customers with banking and financial products and services that include individual advisory solutions. The focus of Postbank brand remains on providing their retail customers with standard products and daily retail banking services supported by direct banking capabilities. In cooperation with Deutsche Post DHL AG, Private Bank Germany also offers postal and parcel services in the Postbank brand branches.
International Private Bank also has a customer-focused approach with two client segments. The International Private Bank (IPB) Personal Banking client segment covers the retail and affluent customers, as well as small businesses in Italy, Spain, Belgium and India, providing them with banking and other financial services. The client segment Private Banking and Wealth Management covers high-net-worth and ultra-high-net-worth clients globally, as well as small and medium-sized corporate clients and private banking clients in Italy, Spain, Belgium, and India. The International Private Bank supports clients in planning, managing and investing their wealth, financing their personal and business interests and servicing their institutional and corporate needs. They also provide institutional-type services for clients and complement their offerings by collaborating with the Investment Bank, the Corporate Bank and Asset Management.
Distribution Channels and Marketing
Private Bank pursues an omni-channel approach and customers can choose between different possibilities to access services and products.
The distribution channels include branch networks in Private Bank Germany and International Private Bank, supported by customer call centers and self-service terminals. Advisory centers of the Deutsche Bank brand in Germany, Italy and Spain supplement the branch network and digital offerings, including online and mobile banking. PB also has collaborations with self-employed financial advisors and other sales and cooperation partners, including various co-operations with Business-to-Business-to-Consumer (B2B2C) partners in Germany. For the private banking and wealth management client segment, the International Private Bank has a client coverage team approach with Relationship and Investment Managers supported by Client Service Executives assisting clients with wealth management services and open-architecture products. In addition, in Germany, Deutsche Oppenheim Family Offices AG provides family office services, discretionary funds and advisory solutions.
AM segment
This segment, which operates under the brand DWS (DWS Group GmbH & Co. KGaA), is an asset management organization. DWS serves a client base of retail and institutional investors worldwide, with a presence in the company’s home market in Germany. The client base includes government institutions, corporations and foundations, as well as individual investors. As a regulated asset manager, DWS acts as a fiduciary for clients. The company retains 79.49% ownership interest in DWS and asset management remains a core business for the group.
Products and Services
DWS’s investment offerings span all major asset classes, including equity, fixed income, cash and multi asset, as well as alternative investments. The alternative investments include real estate, infrastructure, private equity, liquid real assets and sustainable investments. There are also a range of passive investments. In addition, DWS’s solution strategies are targeted to client needs that cannot be addressed by traditional asset classes alone. Such services include insurance and pension solutions, asset-liability management, portfolio management solutions, and asset allocation advisory.
Distribution Channels and Marketing
DWS’s product offerings are distributed across EMEA (Europe, the Middle East and Africa), the Americas and the Asia Pacific through a global distribution network. DWS also leverages third-party distribution channels, including other members of the company.
CRU segment
This segment’s principal focus is to liberate capital consumed by low return assets and businesses that earn insufficient returns or that are no longer core to the company’s strategy, by winding those down in an opportunistic manner.
In 2018, the company entered into an agreement to sell the retail banking business in Portugal to ABANCA Corporación Bancaria S.A. The parties closed the transaction in 2019.
In 2021, the company concluded the transition of its Prime Finance and Electronic Equities platform to BNP Paribas S.A. (BNP Paribas) resulting in the transfer of technology, clients and staff.
Regulation and Supervision
The company is subject to comprehensive regulation under German law and regulations promulgated by the European Union, which are directly applicable law in Germany.
The company is subject to fraud, bribery and corruption laws and regulations under the German Criminal Code and in the other countries in which it conducts business. The U.K. Bribery Act 2010 has extraterritorial impact and requires the company to design and develop appropriate measures to mitigate bribery and corruption risk and to administer controls and safeguards to mitigate such risks.
Under the European Union’s system of financial supervision referred to as the single supervisory mechanism, the European Central Bank (the ECB) is the primary supervisor of all systemically important or significant credit institutions (such as the company) and their banking affiliates in the relevant Member States. As a result, the company is supervised by the ECB, the Bundesanstalt für Finanzdienstleistungsaufsicht, and the Deutsche Bundesbank.
As a bank holding company, the company is required under Title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) to prepare and submit to the Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) either a full or targeted resolution plan (the U.S. Resolution Plan) on a timeline prescribed by such agencies.
The company, as well as its wholly owned subsidiary DB USA Corporation are bank holding companies under the U.S. Bank Holding Company Act of 1956, as amended (the Bank Holding Company Act), by virtue of, among other things, the company and its ownership of Deutsche Bank Trust Company Americas (DBTCA). The company and DB USA Corporation have elected to be financial holding companies pursuant to the provisions of the Gramm-Leach-Bliley Act. As a bank holding company and financial holding company, the company’s U.S. operations are subject to regulation, supervision and examination by the Federal Reserve Board as its U.S. ‘umbrella supervisor’.
DBTCA is a New York state-chartered bank whose deposits are insured by the FDIC to the extent permitted by law. DBTCA is subject to regulation, supervision and examination by the Federal Reserve Board and the New York State Department of Financial Services and to applicable FDIC rules. In addition, DBTCA is subject to regulation by the Consumer Financial Protection Bureau in relation to retail products and services offered to its customers. Deutsche Bank Trust Company Delaware is a Delaware state-chartered bank, which is subject to regulation, supervision and examination by the FDIC and the Office of the State Bank Commissioner of Delaware. The company’s New York branch is supervised by the Federal Reserve Board and the New York State Department of Financial Services. The company’s federally chartered non-depository trust companies are subject to regulation, supervision and examination by the Office of the Comptroller of the Currency. The company and its subsidiaries are also subject to regulation, supervision and examination by state banking regulators of certain states in which the company and they conduct banking operations.
The company’s status as a financial holding company, and its resulting ability to engage in a broader range of nonbanking activities, are dependent on the company, DB USA Corporation and its two insured U.S. depository institutions qualifying as ‘well capitalized’ and ‘well managed’ under applicable regulations and upon its insured U.S. depository institutions meeting certain requirements under the Community Reinvestment Act.
The New York branch of the company is licensed by the Superintendent of the New York State Department of Financial Services to conduct a commercial banking business.
The Federal Deposit Insurance Corporation Improvement Act of 1991 provides for extensive regulation of depository institutions (such as DBTCA and its direct and indirect parent companies), including requiring federal banking regulators to take ‘prompt corrective action’ with respect to FDIC-insured banks that do not meet minimum capital requirements.
In the United States, the company’s U.S.-registered broker-dealers are regulated by the U.S. Securities and Exchange Commission (SEC). The company’s principal U.S. SEC-registered broker-dealer subsidiary, Deutsche Bank Securities Inc., is a member of the New York Stock Exchange (and other securities exchanges) and is regulated by the Financial Industry Regulatory Authority, Inc. and the individual state securities authorities in the states in which it operates.
Deutsche Bank Securities Inc. is also registered with and regulated by the SEC as an investment adviser, and by the U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association as a futures commission merchant and commodity pool operator.
History
Deutsche Bank Aktiengesellschaft was founded in 1870.
