Private & Business Clients

A strong pillar in the private clients business

Helga Lesegeld, Business Client, Frankfurt am Main (photo)

I put my trust in Deutsche Bank as a reliable partner. It has been advising me and my companies for 30 years now. I really appreciate the personal service. Know-how and flexibility are what distinguish Deutsche Bank.

Helga Lesegeld, Business Client, Frankfurt am Main

Deutsche Bank’s Private & Business Clients (PBC) Corporate Division provides banking and other financial services to private customers, self-employed clients as well as small and medium-sized businesses in Germany and internationally. PBC’s product range includes payment and current account services, investment management and retirement planning, securities as well as loans to private clients and businesses. As the leading retail bank in our home market, we provide services to approximately 24 million clients in Germany and another five million abroad. PBC has around 2,800 branches in Germany, Italy, Spain, Belgium, Portugal, Poland and India. PBC also has a 19.99 % stake in the Chinese Hua Xia Bank, making it the second largest shareholder. We complement our own branch-based sales network with a mobile sales force of advisors as well as online channels. In addition, we maintain cooperation partnerships with reputable companies such as Deutsche Post DHL, Deutsche Vermögensberatung AG (DVAG) as well as the Spanish and Italian postal services, which also offer our financial services. PBC comprises the business divisions Advisory Banking Germany, Advisory Banking International and Consumer Banking Germany.

Clients by business division
Clients by business division (pie chart)
Branch presence in Advisory Banking International
Branch presence in Advisory Banking International (pie chart)

Income before income taxes by business division

Income before income taxes by business division (pie chart)

The ongoing European sovereign debt crisis led to client uncertainty again in 2012. Historically low interest rates had a negative impact on deposit margins, while regulatory requirements and capital restrictions, especially in Europe, proved challenging.

In spite of this unfavorable backdrop, PBC generated income before income taxes of €1.5 billion. Adjusted for investment costs for the Postbank integration and the cross-divisional Operational Excellence Program as well as write-downs on Greek sovereign bonds and further effects resulting from Postbank consolidation, income before income taxes rose by € 247 million year-on-year to € 2.3 billion.

Excerpt from segment reporting (Private & Business Clients1)

The Private & Business Clients Corporate Division recorded income before income taxes of € 1.5 billion in 2012 (2011: € 1.9 billion). Net revenues decreased by € 852 million versus 2011, mainly driven by the non-recurrence of a positive onetime effect of € 263 million related to our stake in Hua Xia Bank in 2011 and a negative impact from the purchase price allocation relating to Postbank. Noninterest expenses increased by € 93 million compared to 2011 to € 7.2 billion, driven by higher costs-to-achieve of € 133 million related to Postbank integration and the Operational Excellence Program.




in € m.




Excerpt from segment reporting. For notes and other detailed information, see Financial Report 2012 (Management Report).

Net revenues



Total provision for credit losses



Noninterest expenses



Income before income taxes



Return on equity (pre-tax) in %



Risk-weighted assets






PBC Powerhouse: a well-diversified business model

As part of its transformation program, the corporate division continued with the implementation of the PBC Powerhouse business model. This brings the three business divisions – Advisory Banking Germany, Advisory Banking International and Consumer Banking Germany – together under a uniform strategy and steering approach supported by Magellan, a joint IT and service platform for all products and processing activities.

Advisory Banking Germany

Advisory Banking Germany comprises all PBC activities in our home market under the main Deutsche Bank brand. We are the market leader in tailored mortgage solutions and generated revenue growth in this area in 2012. In addition, we also benefitted from improved portfolio quality, which was reflected in reduced risk costs. We further refined our business model to better meet our customer’s needs and provide our private and business clients with tailored advisory services. By transferring administrative tasks to the middle office, we were able to gain additional time for our clients. Our aim in advisory banking is to clearly distinguish ourselves from the competition by providing premium products and high-quality advice with a consistent client focus. The awards we received for the best retirement pension advice (Focus Money magazine) and best mortgage solutions (FMH-Finanzberatung) show that we are on the right track. First place was also awarded to our online brokerage, maxblue (Euro am Sonntag magazine).

PBC Powerhouse
PBC Powerhouse (organigram)

Strong balance sheet based business

Strong balance sheet based business (bar chart)

Advisory Banking International

Advisory Banking International comprises all of PBC’s activities in Europe (excluding Germany) and Asia. We were successful in both regions in 2012. The business division opened 20 new branches, most of them in Italy. PBC operated profitably in all countries despite the partially difficult economic conditions at times. Our strong performance benefitted from higher margins in the lending business achieved through repricing measures and a better portfolio quality than the market average. Moreover, we optimized our local refinancing in Italy, Spain and Portugal by implementing mortgage securitization measures and deposit campaigns. Through its strategic cooperation with Hua Xia Bank, PBC participated in its profitability and strong growth. We also successfully strengthened the earnings capacity of our branch business in India and extended our network in key regions.

Consumer Banking Germany

Consumer Banking Germany – mainly centered around the activities of Postbank – expanded its installment loan business and benefitted from growth in the private mortgage lending business. We regard the market-wide recognition of our internet presence as a sign of success. Postbank has taken on a leading position in online banking, as confirmed by “CHIP” magazine and the PASS Online Banking Award in 2012.

Due to the good progress made in the integration of Postbank, we were able to realize revenue and cost synergies. We continued to reduce our risks in Postbank investment portfolios. The majority of the assets not attributable to core business were transferred to the new Non-Core Operations Unit in the fourth quarter of 2012 as part of our Strategy 2015+. Postbank sold its Asset Management to Deutsche Bank’s subsidiary DWS Investments.

Milestones in Postbank’s integration were the increase in our stake from 53.1 % at the end of 2011 to 94.1 % at the end of 2012 as well as the effective date of the domination and profit and loss transfer agreement, which facilitates the harmonization of policies, reporting activities, management structures and risk management.

An integral part of our Consumer Banking Germany franchise is norisbank. In 2012, we repositioned norisbank as a pure online bank and closed its branches. norisbank’s skilled workforce is now strengthening the branch-based staff of Deutsche Bank and Postbank.

Our priorities

PBC aspires to be among Europe’s leading retail banks with a strong business in Germany and selected international locations. We will continue to strengthen PBC by focussing our Advisory Banking business under the Deutsche Bank brand and Consumer Banking under the Postbank brand. An integrated IT and service platform as well as harmonized end-to-end processes will help to reduce costs.

We want to increase our revenues in a challenging environment, while focussing on low-risk lending in Germany and selective growth in Europe. In Advisory Banking Germany, we want to increase our earnings through a profitable expansion of our lending business and by improving processes. Consumer Banking Germany aims to achieve higher earnings in customer business by increasing capital efficiency. In the European market, our affluent private and business clients are becoming increasingly important to our profitability. Especially in southern Europe, we will continue to apply strict cost and risk discipline. We want to improve capital efficiency through selective lending growth and repricing measures. The intensification of our partnership with Hua Xia Bank and our organic growth in India will build on PBC’s success in Asia.

The IT and service platform Magellan is scheduled for completion in stages over the next few years and will facilitate significant efficiency gains and revenue synergies. As the foundation for the PBC Powerhouse, this joint platform will initially be implemented for Advisory and Consumer Banking Germany. We expect both businesses to benefit from the cost reductions resulting from the organizational and business alignment and from platform integration. In a second step, Magellan will be implemented across Europe. The aim is to become the first European bank with standardized, state-of-the-art infrastructure across all retail banking services. Innovative and easy-to-use applications and tools will support our advisory capabilities. “DB Spar” (DB Savings), the first module of the joint IT and service platform for the whole of PBC, had a good start in 2012 – without any disruptions in daily business. The tool was launched at Deutsche Bank first, followed by Postbank. The optimization of centralized functions and the reduction of administrative activities in the branches will contribute to an improvement in the bank’s results.

PBC is working towards its ambitious objective of generating income before income taxes of about € 3 billion once key benefits from Postbank’s integration are achieved in 2015.