Private & Business Clients

GDP outlook for all the European countries in which PBC is present (including our home market Germany) has significantly improved. All countries are expected to deliver a positive GDP growth. The economy in Asia is expected to show stronger growth in 2014 compared to 2013.

Private & Business Clients


Target 2015



To grow to approximately € 10 bn


Cost/income ratio

Approximately 60 %


Income before income taxes (IBIT)

To grow to approximately € 3 bn

PBC is expected to continue on its growth path towards its ambitious objective of generating, income before income taxes of about € 3 billion and revenues of about € 10 billion and to achieve a cost-income ratio target of approximately 60 % once full benefits from Postbank integration are achieved. For 2014 we expect income before income taxes to grow notably, including a major one-off effect, and revenues and cost/income ratio are expected to slightly improve compared to 2013. Our strategy is to continue to strengthen our German home market leadership while further extending our well-positioned advisory franchises in our selected international markets. With Magellan, we are building a new joint services and IT platform for PBC, offering services to both advisory and consumer banking. Moreover, we will seek to leverage our relative strength to grow our credit business at attractive margins.

In Private & Commercial Banking, our aim is to strengthen our market position by leveraging our new business model and realize benefits from our business banking and mid-cap coverage. We will continue to focus on low-risk mortgage business, developing our investment and insurance product business and will uphold our strict cost discipline.

In Advisory Banking International we are capitalizing on our advisory strength in Europe and intend to further develop PBC’s profitable franchise with a focus on wealthy regions to be among Europe’s leading retail banks. PBC will continue to benefit from its 19.99 % stake in Hua Xia Bank in China and to support the partnership with them. PBC will strive to achieve targets in India to further enhance PBC’s success in Asia.

Postbank will pursue its growth path in Germany while further aligning its business and reducing costs via the implementation of organizational measures. The progress of integrating Postbank should enable PBC to fully achieve the targeted synergies.

Cost-to-achieve (CtA) in 2014 are expected to remain at a similar level as in 2013 as the Postbank integration program and OpEx Programm remain in focus. While we expect our cost reductions to continue in 2014, many of the effects from the programs will reach their full potential in 2015 and beyond. However, there is a risk that synergies will be realized later than foreseen.

PBC may continue to face uncertainties in its operating environment. For example, a significant decline in economic growth would result in higher unemployment rates and could lead to increasing credit loss provisions and lower business growth. The development of investment product markets is particularly dependant on movements in the European macro-economic environment and customer appetite for investments and risk taking. Additionally, we do not anticipate near-term relief from the near-zero interest rates which will continue to burden our deposit revenues. However, PBC will aim to strengthen its credit business and expand margins, especially outside Germany in the coming years while maintaining strict risk discipline and carefully optimizing capital demand. Additionally, Group-wide deleveraging measures may have negative impact on PBC revenues. The continually evolving regulatory environment could also have a significant impact on the future performance of PBC.