10 – Restructuring

The Group aims to enhance its long-term competitiveness through major reductions in costs, duplication and complexity in the years ahead. The Group plans to spend approximately € 4 billion over a three year period starting 2012 with the aim of achieving full run-rate annual cost savings of € 4.5 billion by 2015.

As of December 31, 2013 the Group’s Management Board approved seven phases of restructuring which form part of the planned amount of approximately € 4 billion. The restructuring expense is comprised of termination benefits, additional expenses covering the acceleration of deferred compensation awards not yet amortized due to the discontinuation of employment and contract termination costs related to real estate. Restructuring expenses of € 399 million were recognized during 2013 (2012: € 394 million), thereof € 292 million (2012: € 311 million) for termination benefits relating to the reduction of headcount according to the Group’s accounting policy for restructuring expenses. An additional expense amount of € 72 million (2012: € 83 million) was incurred for the acceleration of deferred compensation awards not yet amortized. A further expense of € 35 million (2012: € 0 million) was recognized for contract termination costs, mainly relating to real estate.

Of the total amount of € 399 million (2012: € 394 million), the Corporate Banking & Securities Corporate Division was charged € 147 million (2012: € 246 million), the Deutsche Asset & Wealth Management Corporate Division € 169 million (2012: € 104 million), the Global Transaction Banking Corporate Division € 54 million (2012: € 41 million), the Private & Business Clients Corporate Division € 22 million (2012: € 0 million) and the Non-Core Operations Unit Corporate Division € 7 million (2012: € 3 million) respectively, including allocations from Infrastructure functions.

Provisions for restructuring amounted to € 207 million and € 165 million as of December 31, 2013 and December 31, 2012 respectively. The majority of the current provisions for restructuring are expected to be utilized during 2014.

During 2013, 1,287 full-time equivalent (“FTE”) staff were reduced through restructuring. The FTE reductions were identified within the Corporate Banking & Securities Corporate Division (374 FTE), the Deutsche Asset & Wealth Management Corporate Division (224 FTE), the Global Transaction Banking Corporate Division (172 FTE), the Private & Business Clients Corporate Division (42 FTE) and Infrastructure functions (475 FTE).


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