For the banking industry, what sort of year was 2014?
Fitschen: 2014 was a year of challenges for banking and for Deutsche Bank. In the global economy, we continued to see a “three-speed world”, with leading Asian economies growing strongly and recovery in the U.S. economy accelerating, contrasted with weak growth in the eurozone. Interest rates remained at historically low levels, and regulation of our industry continued to intensify, particularly in connection with capital and leverage. Banks around the world sustained their efforts to resolve legacy litigation matters, and the costs associated with these efforts reached unprecedented levels. In addition, 2014 saw the rise of geopolitical uncertainties, including conflicts in Ukraine and the Middle East. Those uncertainties are still with us today.
Against this backdrop, how did Deutsche Bank perform in 2014?
Jain: Financial performance improved significantly despite the tough conditions Jürgen described. Revenues were € 32 billion, essentially stable versus 2013. Profits grew significantly: Income before income taxes rose from € 1.5 billion in 2013 to € 3.1 billion, while net income rose from €681 million in 2013 to € 1.7 billion. This development reflects the robust performance in our core businesses, a reduction in provisions for credit losses and lower charges relating to legacy litigation matters.Read the entire interview