Global focus for Deutsche Bank’s 2020 plan

DeutscheBank_Q110_Lounge_BuecherregalDeutsche Bank reaffirmed its commitment to being a leading global bank based in Germany when it announced the next phase of its strategy, covering the period through to 2020, at the end of April. The bank’s announcement covers key strategic decisions, division-specific initiatives and financial targets.

Jürgen Fitschen and Anshu Jain, Co-Chief Executive Officers, said: “This marks the next milestone in the journey we began in 2012. Deutsche Bank’s course is clear. We reaffirm our commitment to being a leading global bank based in Germany. To achieve this, we must remain client-centric, but focus more sharply on mutually attractive client relationships; remain global, but become more geographically focused; and remain universal, but avoid trying to be all things to all people.”

As a result of its strategy review process, the bank took six new decisions which support the next phase of its strategy. The bank’s objectives are to:

  • Build a more focused, relationship-driven investment bank;
  • Reshape its retail business to focus on an advisory-led proposition and de-consolidate Postbank;
  • Deploy digital technology across the platform;
  • Invest to accelerate growth in GTB and Deutsche AWM;
  • Rationalise its geographical footprint by exiting or reducing its presence in some countries;
  • Transform its operating model to achieve higher efficiency, reduced complexity, better resilience and resolvability.

Corporate Banking & Securities (CB&S) aims to further de-emphasise lower-return business, increase its focus on client solutions and invest in growth in higher-return products. CB&S plans to reduce gross leverage by approximately €200 billion, while redeploying €50-70 billion to improve its position in relationship-driven businesses.

Deutsche Bank also said it plans to invest up to €1 billion additionally over the next three to five years in digitisation to capture new revenue opportunities, for example, through remote advisory channels; realise platform efficiencies through automated or digitised processes; and develop new client propositions.

Through 2020, the Bank’s objective is to refocus its global footprint, reducing the number of countries or local presences by 10-15% and actively investing in markets and urban centres which are most relevant to international and multinational clients.