The Group’s segment reporting follows the organizational structure as reflected in its internal management reporting systems, which are the basis for assessing the financial performance of the business segments and for allocating resources to the businesses segments.
Organizational Structure
In order to best serve the Group’s clients and manage its investments, Deutsche Bank is organized into three Group Divisions, which are further sub-divided into corporate divisions. As of December 31, 2003, the Group Divisions were:
The Corporate and Investment Bank (CIB) combines the Group’s corporate banking and securities activities (including sales and trading, corporate finance , global banking and loan exposure management activities), with the Group’s transaction banking activities. CIB serves corporate and institutional clients, ranging from medium-sized enterprises to multinational corporations and sovereign organizations.
Private Clients and Asset Management (PCAM) combines the Group’s asset management, private wealth management and private and business client activities. As of January 1, 2003 the Group completed a realignment of PCAM. As a consequence of this change, the three previous corporate divisions – Asset Management, Private Banking , and Personal Banking – were realigned into two new corporate divisions: Asset and Wealth Management (AWM), and Private and Business Clients (PBC). These two new Corporate Divisions include the following activities:- AWM comprises two business divisions. The existing Asset Management Business Division (AM) focuses on managing assets on behalf of institutional clients, including pension funds, and providing mutual funds and other investment vehicles for private individuals. The new business division Private Wealth Management (PWM) focuses, globally, on the specific needs of demanding high net worth clients, their families and selected institutions. These clients were previously served within the former Private Banking Corporate Division.
- PBC serves clients previously served by Personal Banking, together with Private Banking clients not served by Private Wealth Management and small corporate customers. PBC focuses on three core European markets: Germany, Italy and Spain.
Corporate Investments (CI) combines the management of the Group’s industrial holdings, private equity investments, and other corporate principal investment activities.
In addition to these three group divisions, Deutsche Bank’s organization includes a Corporate Center (CC), which supports cross-divisional management and leadership. As of January 1, 2003, all support activities, previously grouped under DB Services, were realigned either into the group divisions or into the Corporate Center. These units provide corporate services, information technology, consulting and transaction services to the entire organization. The goal of this realignment is to incorporate business-related support activities directly into the relevant business areas.
Changes in Management ResponsibilityDuring 2003, management responsibility changed for the following significant businesses:
- The Private Clients Services business was transferred from the Corporate Banking & Securities Corporate Division to the Asset and Wealth Management Corporate Division.
- Small corporate German customers, previously assigned to the Corporate Banking & Securities Corporate Division, were transferred to the Private & Business Clients Corporate Division in context of the PCAM realignment.
- The Private Equity Fund of Funds Group and the third party funds business in Australia were transferred from the Corporate Investments Group Division to the Asset and Wealth Management Corporate Division.
- The Italian financial advisor network (“Finanza & Futuro Banca”), previously reported under Asset Management, was transferred to the corporate division Private & Business Clients.
Prior periods have been restated to conform to the current year's presentation.