Deutsche Bank like all other financial institutions will continue to be impacted both by the changing competitive landscape and a stricter regulatory environment and it continues to operate in an environment that exposes it to significant litigation risks. Risk management, capital adequacy and balance sheet efficiency will remain increasingly important as competitive differentiators. Deutsche Bank Management has improved our capital, liquidity and refinancing structures, which are crucial for future success. Over the course of 2011 we increased the core Tier 1 capital ratio significantly. We fulfill the requirements of the European Banking Authority and Basel 2.5, and we are well prepared for the Basel 3 requirements. In this context, Deutsche Bank will retain a balanced dividend policy which considers capital requirements and total shareholder return.
Our global business model comprising Corporate Banking & Securities, Global Transaction Banking, Asset and Wealth management and Private & Business Clients with a solid distribution network especially in our German home market should provide long-term profitable opportunities for us. The recalibration within Corporate Banking & Securities significantly improved Deutsche Bank’s risk profile. Additionally, we strengthened our earnings by expanding our activities in the GTB and PCAM businesses. In 2012 and beyond, we should be able to further benefit from our strengthened set-up as a global investment bank and as a home market leader with greater stability in revenues and a more balanced earnings mix. Additionally, we are also continuing to focus on our performance and improving efficiency.
Our Corporate Investments group division enhances the bank’s portfolio management and risk management capability. It has management responsibility for certain assets and is therefore exposed to the opportunities and risks arising from the holdings in its portfolio. The risks implied are closely monitored and managed.
Overall, Deutsche Bank is strongly positioned to exploit the competitive opportunities in the current environment.