Case study: Deutsche Bank AG Group

Seminar Paper , 2002 , 14 Pages , Grade: 2,3 (B)

Business economics - Business Management, Corporate Governance

Deutsche Bank is one of the leading international financial service providers.
With more than 95,000 employees, the bank serves more than 12 million
customers in more than 70 countries worldwide.
The home market of Deutsche Bank is Europe. A strong position in the European market is the basis for the global activities. Besides Germany, they are represented in Italy, Spain, France, Belgium, and Poland with there own branch networks.
They offer there customers a broad range of modern banking services. The Deutsche Bank is available to personal and private clients with an all-round service ranging form account-keeping as well as cash and securities investment advisory to asset management. They offer there corporate and institutional clients the full range of an international corporate and investment bank, from payments processing and corporate finance to support with IPOs and M&A advisory. In addition to that, they have a leading position in international foreign exchange, fixed-income and equities trading.

Table of content

1. Introduction
1.1 PART I
1.2 Aim of the Deutsche Bank AG

2. PART II
2.1 Identity of the Deutsche Bank
2.2 The supervisor board
2.3 Management structure
2.4 Group Divisions
2.5 Acquisition
2.6 Shareholders
2.7 Customers
2.8 Staff
2.9 Society
2.10 Share price
2.11 Internet gaining importance

3. Bibliography

1. Introduction

Deutsche Bank is one of the leading international financial service providers. With more than 95,000 employees, the bank serves more than 12 million customers in more than 70 countries worldwide.

The home market of Deutsche Bank is Europe. A strong position in the European market is the basis for the global activities. Besides Germany, they are represented in Italy, Spain, France, Belgium, and Poland with there own branch networks.

They offer there customers a broad range of modern banking services. The Deutsche Bank is available to personal and private clients with an all-round service ranging form account-keeping as well as cash and securities investment advisory to asset management. They offer there corporate and institutional clients the full range of an international corporate and investment bank, from payments processing and corporate finance to support with IPOs and M&A advisory. In addition to that, they have a leading position in international foreign exchange, fixed-income and equities trading.

Deutsche Bank is dedicated to being the best financial services provider in the world. They endeavor to the breadth of experience, capabilities and financial strength to create value for the shareholders, customers, employees and society as a whole.

With 1,500 branches in Germany and extensive branch networks in Italy, Spain and Belgium Deutsche Bank is the biggest bank in the Euro zone. In 1999 they had a successful financial year, with net income of roughly Euro 2.6 billion. The Integration of Bankers Trust and launch of Deutsche Bank 24 and the subsidiary European Transaction Bank kept the banking industry.

Deutsche Bank is a multi-specialist offering a broad range of modern banking products in areas such as payments, credit and personal investment. Online banking has become an integral part of the service range. Investment banking, including IPO support and corporate finance advisory, is a strong pillar of the business.

Worldwide, Deutsche Bank has 93,000 employees working in over 60 countries and serving the needs of more than 9 million customers. They are dedicated to being the best financial services provider in the world. They want to make maximum use of the unique breadth experience, capability and financial strength to create value for their customers, shareholders, employees and for society as a whole.

The essay is written in two parts, the first part will give an overview over the history up to 2001 of Deutsche Bank AG and how it has been consistent with a clear strategy. The second part will show the actual situation of the Deutsche Bank AG and it should be matched to the strategic that we learned in class.

1.1 PART I

1870 Deutsche Bank is founded by George 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]. The bank played in the last century an important role in financing such growth industries as electrical utilities, railways and mining. In the beginning of it's history the Deutsche Bank AG began to found branches abroad, for example in China, Japan and England. This had been done to strengthen the relationship to these growing countries.

During the recession after the World War I the Deutsche Bank tried in this period mergers and acquisitions to stay as a leading universal bank. Furthermore they profited by merger in the industrial sector that increased their influence. At that time the foreign activities came to a standstill. After 1933 the bank could again expand it's activities abroad and especially in Austria by acquiring the biggest Austrian bank they gained new influence.

During the World War II the Deutsche Bank profited from their strong relationship to the government that would let them to grow further. After the war the three big banks (Deutsche Bank, Dresdner Bank, and Commerzbank) were split up by the Allied occupying powers into 30 successor institutions. But in 1952 a partial reconsolidating was legislated. Especially the Deutsche Bank AG managed quite fast to regain it's former power and influence. And at the end of 1988 the bank was one-third larger than second-placer Dresdner Bank, with assets of DM 305 billion. Deutsche Bank had 1.640 branches around the world, with the bulk located within West Germany. During the last 30 years the bank tried to gain more power and influence by acquiring banking institutions all over the world.

2001 was a year characterised by important changes for Deutsche Bank. It was listed on the New York Stock Exchange, and they converted their accounting to U.S. GAAP. At the same time, it was not an easy year for Deutsche Bank or its competitors. However, considering the difficult world economic conditions, and the special situations described above, the results demonstrate the strength of the

core business.

2001 was a very difficult year for the world economy. In the course of the twelve months, the recessionary tendencies grew stronger and stronger: for the first time in a long period, business activity weakened again simultaneously in all important economies. And then, on September 11, 2001, the criminal attacks in the U.S.A. struck the world to the quick. To this day, markets and companies worldwide have still not fully recovered from that terrible event.

Deutsche Bank with almost 13,000 employees in the New York conurbation was

directly affected by the attack on the World Trade Center. In a notable act of strength and supported by Deutsche Bank’s global network, the existing contingency plans were implemented.

They were able at all times to provide quotations to their customers and counter-parties.

On September 21, their share was registered with the U.S. Securities and Exchange Commission (SEC), the American stock market and securities regulator, and the first trade on the New York Stock Exchange (NYSE) took place on October.

[...]

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^[1] http://presse.deutsche-bank.de/wms/presse/index.php3?ci=8&language=2

• College: University of Kassel
• Course: Strategic managment
• Grade: 2,3 (B)
• Author: Andre Lampel (Author)
• Publication Year: 2002
• Pages: 14
• Catalog Number: V18424
• ISBN (eBook): 9783638227780
• ISBN (Book): 9783640621491
• Language: English
• Tags: Case, Deutsche, Bank, Group, Strategic