Deutsche Bank

Annual Report 2017

Private & Commercial Bank (PCB)

Corporate Division Overview

The Private & Commercial Bank (PCB) Corporate Division consists of the four business units: Postbank, Private & Commercial Clients Germany, Private & Commercial Clients International and Wealth Management. We serve personal and private clients, small and medium-sized enterprises as well as wealthy private clients. Our product range includes payment and account services, credit and deposit products as well as investment advice. In these products, we offer our customers both the coverage of all basic financial needs and individual, tailor-made solutions. We pursue an omni-channel approach and our customers can flexibly choose between different possibilities to access to our services and products (branches, advisory centers, mobile networks of independent consultants and online/mobile banking).

Our Corporate Division comprises the following units:

The Postbank business unit focuses on retail banking and corporate banking (transaction banking and financing) in Germany, providing standardized banking and financial services for retail, business and corporate clients. In cooperation with Deutsche Post DHL AG, we also offer postal and parcel services in the branches.

In our Private & Commercial Clients Germany (PCC Germany) business unit, we also focus on private and commercial clients in Germany and provide a wide range of financial services including complex advisory solutions for our private clients. For small and medium-sized corporate clients, we offer an integrated commercial banking coverage model in collaboration with experts in the Corporate & Investment Bank.

The Private & Commercial Clients International (PCC International) business unit provides banking and other financial services to private, commercial and corporate clients in Europe and India. In Europe, we operate in five major banking markets: Italy, Spain, Belgium, Portugal and Poland. In December 2017, we entered into an agreement to sell a significant portion of our retail business in Poland in order to sharpen PCB’s focus and to reduce complexity. We will continue to serve foreign currency mortgage retail borrowers in Poland and will also remain present with the Corporate & Investment Bank operations, including Global Transaction Banking.

The Wealth Management (WM) business unit serves wealthy, high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals and families. We support our clients in planning, managing and investing their wealth, financing their personal and business interests and servicing their institutional and corporate needs. We also provide institutional-like services for sophisticated clients and complement our offerings by closely collaborating with experts in the Corporate & Investment Bank and in Deutsche Asset Management.

PCB made the following significant capital expenditures or divestitures since January 1, 2015:

In December 2017, Deutsche Bank Group entered into an agreement to partially sell its PCC business in Poland. While the finalization of the transaction is planned for the fourth quarter 2018, the transaction remains subject to required approvals from regulators, corporate consents and other conditions.

In March 2017, Deutsche Bank Group signed a definitive agreement to sell its share in Concardis GmbH, a leading German payment service provider established in form of a joint venture of the German banking sector, to a consortium of Advent International and Bain Capital Private Equity. In July 2017, the transaction was successfully completed.

On December 28, 2015, we agreed to sell our entire 19.99 % stake in Hua Xia Bank Company Limited (“Hua Xia”) to PICC Property and Casualty Company Limited (“PICC Property & Casualty”). The share transfer was completed in the fourth quarter 2016 and all remaining closing formalities were completed in the first quarter of 2017.

In the fourth quarter 2015 we announced that we had entered into a definitive asset purchase agreement to sell our U.S. Private Client Services (PCS) unit to Raymond James Financial, Inc. In September 2016 the transaction was completed successfully.

In November 2015, Visa Inc. announced a definitive agreement to acquire Visa Europe Limited. As part of this acquisition Visa Europe Limited requested all its shareholders, which included several Deutsche Bank Group entities, to return their shares against consideration. We returned our shares in Visa Europe Limited in January 2016 and received the cash and preferred shares consideration at closing on June 21, 2016 as well as an entitlement to a deferred cash payment including interest upon the third anniversary of the closing date.

Products and Services

In our home market Germany and internationally, we offer our clients a wide range of financial services from standardized as well as comprehensive services for retail clients, to solutions for demanding clients in Private Banking and Wealth Management, to business and commercial client coverage.

Our Postbank, PCC Germany and PCC International business units provide banking and other financial services to private and commercial clients in Germany, Europe and Asia with some variations in the product offering among countries that are driven by local market, regulatory and customer requirements. Products for our retail and private clients are designed to meet all basic financial needs and to provide them with advisory services. We offer payment and current account services, credit and financing products as well as deposit, investment and insurance products. The product range also includes postal services, which we offer through Postbank, and further non-banking services. Products for our small and medium-sized clients also include specific financing solutions (ranging from start-up financing to structured finance) and midcap related products provided by the Corporate & Investment Bank.

In the WM business unit, we support our clients in preserving their wealth by offering wealth structuring, wealth transfer and philanthropy services. We offer customized wealth management and investment solutions including discretionary portfolio management, investment advice as well as currency and deposit services. Furthermore, we provide financing solutions, e.g. real estate, single-stock and aircraft financing. For the client’s institutional and corporate needs we offer M&A, pre-IPO, private placements and institutional-like access to structured lending, private and public investment opportunities, trading and hedging in close collaboration with experts in the Corporate & Investment Bank.

Distribution Channels and Marketing

We follow an omni-channel approach to optimize accessibility and availability of services for our customers. The expansion of digital capabilities remains a strong focus across all our businesses.

PCC Germany, PCC International and Postbank have similar distribution channels:

  • Branches: Within branches, the PCC and Postbank business units generally offer the entire range of products and advice. The branch network is supported by Customer Contact Centers, Call Centers and Self-service Terminals. Additionally, Postbank uses around 4,500 Deutsche Post DHL AG partner retail outlets, where customers can access selected Postbank financial services. In Germany, PCC and Postbank offer cash services at more than 10,000 cash points.
  • Advisory Centers: The Advisory Centers in PCC Germany represent a connection between the branches and our digital offerings to ensure a holistic service and advice for our private and commercial clients independent of branch opening hours.
  • Online and Mobile Banking: Websites of the PCC and Postbank business units offer clients a broad variety of relevant product information and services including interactive tools, tutorials as well as rich media content. We also provide a high performing transaction platform for banking, brokerage and self-services, combined with a highly frequented multi-mobile offering for smartphones and tablets. Moreover, we further invest in improvements in seamless client friendly end-to-end process automation.
  • Financial Agents / Third party distributors: The PCC and Postbank business units additionally provide banking products and services through self-employed financial agents as well as through third-party distributors.

Wealth Management has a distinct client coverage:

  • Global Coverage/Advisory teams: Our relationship manager / senior advisor teams manage client relationships, provide advice and assist clients in accessing dedicated WM services and open-architecture products. To ensure holistic service and advice, all wealth management clients have a single point of access, with dedicated teams serving specific client groups.
  • Key Client Partners (KCP) / Corporate Finance Partnership (CFP): For qualified ultra-high-net-worth clients, Key Client Partners (KCP) provide institutionalized access to market views and trade ideas with bespoke trading, risk management and hedging solutions from our Global Markets platform as well as innovative non-recourse lending solutions. Corporate Finance Partnership (CFP) acts as trusted partner and strategic advisor for selected group of sophisticated investors / family offices providing seamless access to our global corporate finance franchise.
  • Deutsche Oppenheim Family Offices AG (DOAG): Multi-family offices services including discretionary portfolio management, strategic asset allocation, “Family Office Strategy” funds, family office consulting, third-party manager selection, reporting & controlling as well as real estate and private equity investments.