Customer Orientation. We chose Deutsche Bank for its commitment to excellence. The bank’s passion to perform is reflected in its ability to structure and execute sophisticated, world class client solutions which set industry benchmarks. We at Bharti share the same philosophy, which explains the very close and collaborative relationship between the two institutions.
Sunil Mittal, Group Chairman and Managing Director, Bharti Enterprises, New Delhi
The Corporate and Investment Bank Group Division (CIB) strengthened its position among the world’s leading investment banking firms in 2004. The operating environment was challenging, particularly in mature markets and in standardised products, but we generated strong financial results and underlined the quality of our franchise with a number of prestigious awards.
Since the fourth quarter of 2004, we have been working on revisions to the operating structure of CIB. With effect from the beginning of 2005, we aligned our sales and trading businesses within Corporate Banking and Securities (CB&S) into a single division, Global Markets, which offers an integrated service across both equity and debt for our investor clients. We also aligned our Global Corporate Finance and Global Banking businesses into a new division, Corporate Finance, which allows integrated coverage and product delivery for our corporate clients. Within CB&S, our equity and debt new issue businesses will be managed jointly. Global Transaction Banking will be run in close alignment with Corporate Finance, but will remain a separate Corporate Division.
Income before income taxes 2004
In 2004 CIB’s income before income taxes was € 2.8 billion. The decrease compared to 2003 was mainly due to net gains of € 583 million from the sale of non-core businesses in 2003 and restructuring charges of € 299 million related to the Business Realignment Program initiated in the fourth quarter 2004. Excluding these effects the income before income taxes improved, largely attributable to significantly reduced provision for credit losses and record revenues in sales and trading (debt and other products). Noninterest expenses included in additon to the aforementioned restructuring charges higher performance-related compensation.
Corporate and Investment Bank1
| in € m. | 2004 | 2003 |
| Net revenues | 13,331 | 14,193 |
| Total provision for credit losses | 24 | 707 |
| Noninterest expenses | 10,549 | 9,947 |
| Income before income taxes | 2,757 | 3,539 |
| Return on equity (pre-tax) in % | 21 | 25 |
| BIS risk positions | 139,124 | 137,615 |
| Assets | 729,872 | 681,722 |
| 1 | Excerpts from segment reporting, for notes and other detailed information, see Financial Report 2004 (Management Report). |
Corporate Banking & Securities
In 2004, the Corporate Banking & Securities Corporate Division comprised the Business Divisions Global Markets, Global Equities, Global Corporate Finance and Global Banking Division.
