Strategy 2015+

€ 4.5 billion annually

We plan to save costs of

Strategy 2015+ was launched in September 2012. It sets out how Deutsche Bank plans to address the current challenges and to successfully position itself in a changed environment characterized by macroeconomic uncertainties, increasing regulation, historically low interest rates, growing margin pressure and, not least, a critical public perception of the financial industry. Strategy 2015+ enables the bank to seize opportunities presented by longer-term global trends, including the strong growth in and increasing significance of emerging markets, demographic change and technological advances.

With Strategy 2015+, Deutsche Bank is reinforcing its commitment to the universal banking model, which best meets the increasingly complex requirements of its clients. Moreover, the bank is reinforcing its commitment to its home market, Germany, where it has deep roots and is a clear market leader, as well as to its global presence. This enables Deutsche Bank to deliver its global product expertise locally to clients in 71 countries. Strategy 2015+ emphasizes the need to become even more client-centric, enhance efficiency and business performance, strengthen the bank’s capital position, further reduce risks and change its culture. This is how Deutsche Bank wants to achieve its vision of becoming the leading client-centric global universal bank.

Five levers are key to Deutsche Bank’s delivery of Strategy 2015+:

Clients. Deutsche Bank serves a targeted portfolio of clients and regions based on its ability to generate value for them. The bank is focused on growth in its home market, Germany, in Asia Pacific and in the Americas. Since the launch of Strategy 2015+, Deutsche Bank has aligned its organization more closely to its clients. For instance, the bank created a dedicated platform for Germany’s small and medium-sized companies (the Mittelstand), intensified local coverage across regions and strengthened cross-divisional collaboration.

Competencies. Deutsche Bank’s strategy is also based on the strengths of its businesses. The bank believes that its four core corporate divisions – Corporate Banking & Securities, Private & Business Clients, Global Transaction Banking and Deutsche Asset & Wealth Management – satisfy the increasingly complex and global needs of the bank’s clients and balance the earnings mix. In 2013, the core businesses delivered sound operating profitability. Adjusted for specific items, these results were close to the best ever. This good operating performance enabled Deutsche Bank to reduce legacy items, drive forward the reduction of risk and make investments to enhance our operating platform.

Capital. Deutsche Bank is committed to further strengthening its capital and leverage ratios. Under full application of Basel 3 rules, the bank aims to achieve a Common Equity Tier 1 (CET1) ratio of more than 10 % by the first quarter of 2015. The CET1 ratio improved from below 6 % in June 2012 to 9.7 % at the end of December 2013, and is thus already well within reach of the 2015 target. During the same period, the bank also significantly scaled back its leverage exposure (based on the Capital Requirements Directive IV rules, CRD IV). The Non-Core Operations Unit, which manages the reduction of assets from non-core business activities, made a strong contribution to this de-leveraging.

Costs. Deutsche Bank aims to secure its long-term competitiveness by building a modern and efficient platform through its Operational Excellence (OpEx) program: increasing the quality of products and services, strengthening the flexibility of the franchise, reinforcing controls and embedding a culture of cost efficiency. Through investments of approximately € 4 billion, the bank intends to achieve annual cost savings of € 4.5 billion by 2015. The program is making good progress. By the end of 2013, Deutsche Bank had already delivered cumulative savings of € 2.1 billion. We saved money by becoming more efficient, buying smarter, upgrading technology and streamlining the businesses.

Culture. Deutsche Bank recognizes the need for cultural change in the banking sector and aspires to be at the forefront of change. The bank is committed to a culture that aligns risks and rewards, attracts and develops talented individuals, fosters teamwork and partnership, and is sensitive to the society in which it operates. In 2013, Deutsche Bank laid the foundations for cultural change. It defined new values and beliefs, strengthened its governance and control mechanisms, reformed its compensation model and established a program for sustainable change.

In summary, Strategy 2015+ seeks to strengthen the bank’s global platform and home market position, further leverage the integrated performance of the universal banking model, build capital strength, achieve operational excellence and cost efficiency, and place Deutsche Bank at the forefront of cultural change in the banking industry. Deutsche Bank believes that Strategy 2015+ is the right course for the future and that it will emerge as one of only a handful of strong global universal banks, well positioned to capture future opportunities.