Anticipating the Trends shaping our Environment

In the first six months of 2007, we performed very well in favourable markets. However, in the second half of the year, the environment became significantly more difficult, primarily as a consequence of the sub-prime crisis in the United States.

Problems related to sub-prime mortgages in the U.S.A. caused a widespread dislocation which severely impacted both investor confidence and liquidity across the world’s financial markets. The effects of this crisis on the banking sector and on the wider economy, particularly in the U.S., are still working their way through the system. Deutsche Bank showed strength and resilience in the context of this fast-changing environment in 2007.

Our continued solid performance is due primarily to strong positioning in important markets and businesses – particularly in the light of the long-term trends shaping our industry: globalization, capital market growth, and invested asset growth.