Private & Business Clients

A strong leader in the private clients business

In brief

  • Home market leadership, profitable growth in Europe and Asia
  • Launch of Private & Commercial Banking Business Division
  • Postbank integration well on track
Goedele Matthyssen, business client, Hornow (photo)

»It’s not just our figures that count at my bank but also the people behind our company. The bank’s trust has really encouraged us to pursue our expansion plans.«

Goedele Matthyssen,
Hornow, business client

The launch of Private & Commercial Banking marks a new era in strengthening Deutsche Bank’s operations in its home market.


2,700 PBC branches

in European countries and India

Private & Business Clients (PBC) 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 deposits and loans. As the leading private retail bank in Deutsche Bank’s home market, PBC provides services to more than 23 million clients in Germany and five million clients abroad. PBC has over 2,700 branches in Germany, Italy, Spain, Belgium, Portugal, Poland and India. The corporate division complements its own branch-based sales networks with mobile sales advisors as well as direct channels. In addition, PBC maintains its cooperation partnerships with companies such as Deutsche Post DHL, Deutsche Vermögensberatung AG (DVAG) as well as the Spanish and Italian postal services. In China, PBC holds a 19.99 % stake in Hua Xia Bank, as its second largest shareholder.

In a difficult market environment, PBC delivered a stable operating performance. Low interest rates and muted client investment activity in Germany remained challenging, while the lending environment was favorable with credit losses below previous years. European markets in which PBC operates outside of Germany were marked by reduced credit activity. However, business in investment products increased.

Excerpt from segment reporting (Private & Business Clients1)

Private & Business Clients recorded income before income taxes of € 1.6 billion in 2013 (2012: € 1.5 billion). Net revenues increased slightly by € 10 million versus 2012. Provision for credit losses was down 8 %, reflecting an improved portfolio quality and credit environment in Germany. Noninterest expenses were € 7.3 billion, an increase of € 52 million versus the prior year. Included were higher costs-to-achieve related to Postbank integration and to OpEx and savings from the realization of synergies from Postbank. Invested assets were down by € 11 billion mainly driven by net outflows, mostly in deposits.




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1 Excerpt from segment reporting. For notes and other detailed information, see Financial Report 2013 (Management Report).

Well balanced income before
income taxes* by business division

Well balanced income before income taxes by business division (bar chart)

In 2013, PBC generated income before income taxes (IBIT) of € 1.6 billion (2012: € 1.5 billion). Adjusted for investment costs as part of the Postbank integration and the cross-divisional Operational Excellence Program, IBIT amounted to € 2.1 billion. Net revenues increased slightly by € 10 million compared to 2012. Higher revenues from credit products as well as investment and insurance products were offset by lower revenues from deposits, as a result of the ongoing low interest rate environment. Provisions for credit losses were down, primarily in Private & Commercial Banking and Postbank, reflecting an improved portfolio quality and credit environment in Germany.

“PBC Powerhouse”: a well-diversified business model

PBC’s strategy combines a strong home market leadership position with a focused advisory presence in selected European and Asian markets. PBC businesses increasingly share a common services and IT platform, enabling economies of scale. In its home market, Germany, PBC strengthened its franchise with the launch of Private & Commercial Banking and progressed with the integration of Postbank.

Private & Commercial Banking

The Private & Commercial Banking (PCB) Business Division combines all of PBC’s activities in the bank’s home market under the main brand Deutsche Bank. In 2013, the division integrated Deutsche Bank’s German business with medium-sized companies into its existing Advisory Banking Germany business. This joint venture between Private & Business Clients and Global Transaction Banking is part of Private & Commercial Banking. Via this cooperation and by implementing an enhanced coverage model the new business division aims to increase its market share.

Private and small business clients previously covered by Advisory Banking Germany can now take advantage of improved advisory quality and an enhanced service, including trade finance products as well as cash and risk management solutions. Furthermore, they benefit from access to Deutsche Bank’s global product expertise through closer cooperation with product experts in Global Transaction Banking (GTB) and Corporate Treasury Sales (CTS). The former German mid-cap clients, in turn, now have improved access to a dense local branch network with dedicated advisory services.

PBC Powerhouse

PBC Powerhouse (organigram)

Personal advisory remains the key element of PBC’s relationship approach. PBC has invested significantly in the modernization of its branches and an innovative new branch concept, generating a very positive public response. In this context, the bank received an Iconic Award 2013 by the German Design Council (“Rat für Formgebung”)and was named Branch of the Year by the specialist magazine geldinstitute. In addition, PCB invested in its multi-channel distribution. The bank’s mobile applications and the online broker maxblue were significantly enhanced and upgraded. Furthermore, they are now available on a broader range of devices. This has also been well received by the public and won the bank several awards (e.g. Top Online Broker from Handelsblatt).

Advisory Banking International

Branch presence in Advisory
Banking International

Branch presence in Advisory Banking International (pie chart)

Advisory Banking International comprises all of PBC’s activities in Europe (excluding Germany) and Asia. In 2013, the unit was successful in both regions and expanded its business operations, especially in Italy, where 18 new branches were opened. PBC operated profitably in all countries despite the difficult market environment. PBC’s strategy focuses on key market niches, where it offers advisory banking to affluent private and business clients. PBC provides trust-based advisory relationships to its clients, who can select from a comprehensive range of financial solutions suited to their needs.

In 2013, PBC was able to realize higher lending margins and successfully enhanced portfolio quality compared to the market average. Moreover, the division further optimized local refinancing in Italy, Spain and Portugal and strengthened its investment and insurance products business. Through its strategic cooperation with and stake in Hua Xia Bank, PBC participated in the Chinese bank’s strong growth and profitability.


Clients by business division

Clients by business division (pie chart)

The Postbank Business Division comprises consumer banking business under the Postbank brand name as well as DSL Bank, BHW Bausparkasse and norisbank. With 14 million private and business clients and 5.2 million current accounts, Postbank continued to be a consumer banking leader in Germany.

The overall positive business development is the result of Postbank reinforcing its business model and extending the successful cooperation with Deutsche Post DHL. One of the many benefits this brings is a strong and steady flow of existing and prospective clients into the bank’s branches. The extended collaboration between the building societies BHW and Deutsche Bank Bauspar AG improved the bank’s market presence in the home loans and savings business. While all distribution channels contributed to Postbank’s performance, the business division significantly enhanced its online banking services in 2013. Nearly 35 % of Postbank’s personal loan sales are now carried out online and almost 20 % of the new current accounts are opened online. This resulted in several awards, e.g. Best Online Bank from Chip magazine and Best Online Banking from Focus Money.

In 2013, the division was able to realize revenue and cost synergies thanks to the ongoing integration of Postbank into PBC. In this connection, substantial progress was made in building a new joint services and IT platform for PBC under the name Magellan. Magellan combines a well-architected and highly efficient core banking IT platform, a simplified and standardized product and service portfolio with a focus on customer needs, innovative and easy-to-use front ends and multi-channel interfaces, and optimized, standardized end-to-end processes.

Thanks to Magellan, in 2013 PBC made its client processes faster and redesigned its online banking. With the new mobile platform, the division implemented an innovative digital banking facility for its clients, enhancing the functionality of applications (e.g. the Deutsche Bank app for different mobile devices, photo transactions, and an electronic mailbox). Furthermore, PBC laid the foundation for the integration of all service entities under one umbrella in PBC Banking Services GmbH.


Online sales

close to 35 % for personal loans

Through its Powerhouse strategy, PBC aspires to be among Europe’s leading retail banks. It will also continue to pursue its strategy as the home market leader among German private banks. PBC covers advisory banking needs with Private & Commercial Banking under the main brand Deutsche Bank and consumer banking demand with the Postbank franchise. Furthermore, PBC continues to strengthen Advisory Banking International by focusing on profitable business activities in Europe and realizing growth opportunities in Asia. A joint service and IT platform as well as harmonized end-to-end processes will help to reduce costs.

PBC wants to increase revenues in a challenging environment, while focusing on selected low-risk lending activities in Germany, expanding its investments and insurance business in Advisory Banking and growing selectively in Europe. In Private & Commercial Banking, the division aims to raise profitability. Further goals include improving client proximity and enhancing cross-divisional collaboration. The Postbank division plans to increase the focus on core activities, and thus to achieve an improved business alignment and cost reductions by streamlining the organization. In the European market, PBC International will continue to work on improving efficiency in 2014, moving towards a common European platform aligned to Magellan Germany. In addition, PBC is further developing its business model to become a more client-centric, multi-channel advisory bank. PBC will continue to support the partnership with Hua Xia Bank and strive to achieve targets in India, further building on PBC’s success in Asia.

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.

Awards 2013

Best Client Advisory Service
Top Online Broker (maxblue)

Best Loan for Renovations

Rat für Formgebung
Iconic Award 2013 – Interior Winner
German Design Award – Special Mention (Architecture & Interior Design)

Geschäftsstelle des Jahres (Branch of the Year)