Restructuring

 (unaudited)

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 € 4,0 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 September 30, 2014 the Group’s Management Board approved eight 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.

Net restructuring expense by division

 

Three months ended

Nine months ended

in € m.

Sep 30, 2014

Sep 30, 2013

Sep 30, 2014

Sep 30, 2013

Corporate Banking & Securities

(6)

(7)

(86)

(88)

Private & Business Clients

(1)

(3)

(7)

(5)

Global Transaction Banking

1

(4)

(8)

(18)

Deutsche Asset & Wealth Management

(6)

(16)

(20)

(159)

Non-Core Operations Unit

(1)

0

(4)

(17)

Infrastructure/ Regional Management

0

0

0

0

Consolidation & Adjustments

0

0

0

0

Total Net Restructuring Charges

(13)

(30)

(125)

(287)

Net restructuring expense by type

 

Three months ended

Nine months ended

in € m.

Sep 30, 2014

Sep 30, 2013

Sep 30, 2014

Sep 30, 2013

1

Contract costs, mainly related to real estate and technology.

Restructuring – Staff related

(11)

(24)

(116)

(261)

thereof:

 

 

 

 

Termination Payments

(10)

(23)

(94)

(195)

Retention Acceleration

(1)

(0)

(20)

(62)

Social Security

0

(0)

(1)

(3)

Restructuring – Non Staff related1

(1)

(6)

(10)

(26)

Total net restructuring Charges

(13)

(30)

(125)

(287)

Provisions for restructuring amounted to € 139 million and € 207 million as of September 30, 2014 and December 31, 2013, respectively. The majority of the current provisions for restructuring are expected to be utilized during 2014.

During the nine months ending September 30, 2014, 1,050 (393 in the first quarter, 446 in the second quarter and 211 in the third quarter) full-time equivalent (“FTE”) staff were reduced through restructuring. These reductions were identified within:

 

Nine months ended

 

Sep 30, 2014

Corporate Banking & Securities

170

Private & Business Clients

85

Global Transaction Banking

198

Deutsche Asset & Wealth Management

170

Non-Core Operations Unit

1

Infrastructure/Regional Management

426

Total full-time equivalent staff

1,050