An introduction :
Deutsche Bank AG
Deutsche Bank is an international bank doing business in near about 75 nations worldwide and in the process providing employment to well over 73 thousand people as per latest reports. In terms of revenues and profits earned,
Deutsche Bank ranks very near the top of the investment banks in the world. This kind of performance is based upon the bank's firm and lucrative franchise comprised of private clients .
Deutsche Bank is basically a public finance and insurance company and its primary products include commercial banking, investment as well as personal banking, and asset management
Deutsche Bank is based in Frankfurt am Main, Germany, where the
Deutsche Bank Twin Towers houses its headquarters. CIB or Corporate and Investment Banking, being its largest financial section has its headquarters in London.
History of Deutsche Bank
Founded in Berlin, Germany during January, 1870 by Adelbert Delbruck, a private banker and Ludwig Bamberger, a politician,
Deutsche Bank gradually turned into an expert business organization in international trade.
The earliest branches of
Deutsche Bank outside Germany were :
- London in 1873,
- Shanghai in 1872, and
- Yokohama 1872.
In 1876
Deutsche Bank overtook the Disconto-Gesellschaft to become the then largest bank in Germany through the acquisition of the banks like Berliner Bank-Verein and Deutsche Union-Bank.
The construction of the Northern Pacific Railroad in the United States during 1883 and also the construction of the Baghdad Railway through 1888 were the most significant initial projects undertaken by
Deutsche Bank in only the first few decades of its establishment.
Deutsche Bank financially supported bond issuings of the steel concern Krupp (1885) and initiated the German chemical company Bayer on the Berlin stock market.
Deutsche Bank through the Twentieth century
The first three decades of the twentieth century witnessed the rapid expansion of
Deutsche Bank through the mergers with different local banks in Germany. Finally in 1929,
Deutsche Bank merged with the Disconto-Gesellschaft, which it had already overtaken in terms of business, earlier.
The victorious Allied powers dictated the split up of
Deutsche Bank into ten different regional banks in 1948 after Germany were ultimately defeated at the Second World War.
Later in 1952, those regional German banks (numbering ten) were amalgamated into 3 major banks, which were :
- NordDeutsche Bank AG
- Rheinisch-Westfälische Bank AG
- SüdDeutsche Bank AG
The three German banks named above, were finally reunited once again through a merger in the year 1957. Several takeover deals were carried out after the merger giving
Deutsche Bank a global identity.
Independent historians, authorized and equipped by the
Deutsche Bank authorities, have done a commendable job of recording in details the history of
Deutsche Bank during the turbulent period spreading over the Second World War.
The Takeover deals completed by Deutsche Bank after the low of the Second World War
The most significant amongst those takeovers undertaken by
Deutsche Bank were :
- GDR's state bank in 1990, at the time of reunification of East Germany with West Germany
- Morgan Grenfell (a London investment bank) in the United Kingdom in 1989
- Bankers Trust in New York, U.S.A. in 1998
- Crédit Lyonnais Belgium in Brussels in 1999
- Berkshire Mortgage Finance in 2004
- United Financial Group (a Moscow-based investment bank) in Russia in 2006.
- Chapel Funding (now called DB Home Lending) in 2006
- MortgageIT Holdings in January, 2007
Certain industrial facts in relation to Deutsche Bank
The changeover from a commercial bank to an investment bank was initiated in 1995 by
Deutsche Bank to facilitate the sale of investment banking products by extending expertise related with the investment field to its customers. Within only the first ten years of its introduction, investment banking accounted for nearly three fourths of the total revenues earned by
Deutsche Bank, that amount well over €42 Billions.
The Return On Equity (ROE) which is also recognized as Return On Net Worth (RONW) and is calculated as : net income/shareholder's equity, increased by a huge margin from 4 percent to 25 percent for
Deutsche Bank after its conversion from a commercial bank to an investment bank.
Deutsche Bank AG, an outstanding banking organization is characterized by the following features:
- employees numbering much more than the 73 thousand mark
- currently doing business in nearly 75 countries all over the world
- financial services which are offered by Deutsche Bank are unequaled anywhere in the world
- Deutsche Bank is the leading financial services provider in Germany and Europe, and simultaneously growing in Asia, North America and the major emerging
- global financial markets.
The Organizational Structure of Deutsche Bank
Deutsche Bank is segregated into three Divisions to enhance its profitable functioning and to extend its competitive outlook at the major global financial
markets. The three major divisions of
Deutsche Bank AG are :
- Corporate and Investment Bank or CIB
- PCAM or Private Clients and Asset Management
- Corporate Investments also known in short as CI.
Primary duties of the Management Board of Deutsche Bank
The
Deutsche Bank's Management Board of has several objectives to fulfill. However the main and foremost duties that the Board of Management has to cater to
are :
- administering the business strategies undertaken by Deutsche Bank AG,
- allotment of resources,
- accounting and controlling the financial instruments of ,
- management of the capital and as well as the risks involved in running the business , and
- controling the intrinsic infrastructure.
Deutsche Bank and the Global ATM Alliance
Deutsche Bank (Germany) ranks amongst the five largest financial service providers in the world along with the Bank of America (United States), Barclays (United Kingdom), Scotiabank (Canada) and Westpac (Australia). All of these global financial service providers have collectively begun the
Global ATM Alliance which allows the use of ATM or check cards of one bank for cash withdrawals at the provisions of another bank free of international access fee within the Global ATM Alliance.
It is an initiative, the first ever of its kind, on the part of these major international banks to furnish financial services, mainly admittance to cash machines numbering well over the 20,000 mark free of any charges, that is specifically aimed at all their customers taken together who travel globally.
An united network of ATMs will fulfill the need for cash of all the nearly 36 Million customers of the five global financial services providers. ATM or check cardholders of the five international banks can begin using cash machines belonging to the Global ATM Alliance network with effect from July 1,2007.
The ATMs belonging to the Global ATM Alliance network is located throughout the three developed continents. The number and location of the cash machines are as follows :
- Bank of America with well over 12,000 ATMs in the U.S.
- Barclays having around 3,000 ATMs throughout the UK
- Deutsche Bank holding about 1,800 cash machines in Germany
- Scotiabank owns nearly 2,100 ATMs in Canada
- Westpac owns more than 1,500 ATMs in Australia.
Deutsche Bank and its major competitors
Deutsche Bank as one of the world’s leading investment banks has several international competitors. The major competitors amongst them being :
- Citigroup
- Credit Suisse
- Goldman Sachs
- JPMorgan Chase
- Merrill Lynch
The prospect of
Deutsche Bank AG is very much encouraging as it is positively determined by several factors that point at even larger profits. The rising levels of globalization experienced by different economies over the world have in fact placed
Deutsche Bank in a favorable situation. A significant regional diversity and strong revenue collection ensuing from every major economic region have enhanced its all round financial prospects.