The outlook for global transaction banking over the next two years will likely be influenced by both negative and positive factors. The low interest rate levels seen in most markets during 2009 and 2010 will likely continue to adversely impact net interest income in the near term, while the ongoing recovery in global GDP, international trade volumes, cross-border payments and corporate actions should partially offset the aforementioned. However, an anew, double-dip recession would imperil growth prospects. Furthermore, the new Basel regulations pose a challenge analog to the overall banking industry.
Deutsche Bank’s Global Transaction Banking (GTB) business will likely be impacted by the environmental challenges outlined above. The sustained momentum of profitable growth and client acquisition in recent years, together with its leading position in major markets, leaves Global Transaction Banking well-placed to attract new clients even in challenging conditions. The business is focusing on deepening its client relationships with Complex Corporates and Institutional Clients in existing regions while pushing further growth in Asia. In addition, initiatives have been launched to further re-balance our earnings mix to reduce dependency on interest rates. The successful consolidation of parts of ABN AMRO’s corporate and commercial banking activities in the Netherlands in 2010 will further strengthen Global Transaction Banking’s footprint in Europe by creating a second home market for corporate clients and achieving deeper client coverage and complementary product offerings. The business is expected to capitalize on synergies resulting from the integration of the Corporate & Investment Banking activities. Closer co-operation with other areas of the Corporate & Investment Bank as part of the ongoing integration will ensure that a wider range of clients will benefit from Global Transaction Banking’s services.
Global Transaction Banking is well-positioned and aims to achieve a contribution to the 2011Group Target of € 1.0 billion income before income taxes, based on the assumptions set out above.