Deutsche Bank AG is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany. It is dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange.

Deutsche Bank

Deutsche Bank is a component of the DAX stock market index and is often considered the largest German banking institution.

History

Deutsche Bank was founded in Berlin in 1870 as a specialist bank for financing foreign trade and promoting German exports. The bank's statute was adopted on January 22, 1870, and the Prussian government granted it a banking license on March 10, 1870. The statute emphasized the promotion and facilitation of trade relations between Germany, other European countries, and overseas markets.

Key milestones in Deutsche Bank's history:

1871: Opened its first domestic branch in Bremen.
1872: Opened branches in Hamburg, Shanghai, and Yokohama.
1873: Opened its first foreign branch in Europe in London.
1876: Started building its head office complex on Mauerstrasse.
1886: Opened a branch in Frankfurt am Main.
1888: Involvement in the Baghdad Railway project.
1914 & 1917: Acquired Bergisch-Märkische Bank and Schlesischer Bankverein.
1929: Merged with Disconto-Gesellschaft, becoming Deutsche Bank und Disconto-Gesellschaft (DeDi-Bank).
1948: Following World War II, Allied authorities ordered Deutsche Bank's break-up into regional banks.
1952: The regional banks were consolidated into three major banks: Norddeutsche Bank AG; Süddeutsche Bank AG; and Rheinisch-Westfälische Bank AG.
1957: The three banks merged to form Deutsche Bank AG with its headquarters in Frankfurt.
1959: Entered retail banking by introducing small personal loans.
1970s: Expanded internationally, opening offices in Milan (1977), Moscow, London, Paris, and Tokyo.
1972: Established its Fiduciary Services Division.
1986: Acquired Banca d'America e d'Italia for $603 million.
1989: Alfred Herrhausen, chairman of Deutsche Bank, was killed in a bombing claimed by the Red Army Faction.
1990: Acquired Morgan Grenfell.
1998: Acquired Bankers Trust.
2010: Acquired Deutsche Postbank.

Operations

Deutsche Bank's network spans 58 countries with a large presence in Europe, the Americas, and Asia. It has been designated a global systemically important bank by the Financial Stability Board since 2011. It has also been designated as a Significant Institution and is directly supervised by the European Central Bank. Deutsche Bank holds the majority stake in DWS Group for combined assets of 2.2 trillion euros.

Financial Performance

Deutsche Bank's financial performance in 2024 was impacted by significant non-operating costs, particularly long-standing litigation items. Net profit attributable to Deutsche Bank shareholders for the full year 2024 was €2.7 billion, a 36% plunge from 2023. Despite this, the bank aims for a return on tangible equity (RoTE) of over 10% in 2025. Deutsche Bank seeks €2 billion of incremental revenue in 2025 and continued cost efficiencies.

Challenges

Deutsche Bank has faced challenges, including litigation costs and the integration of Postbank. In January 2025, Deutsche Bank's shares plunged as it dropped its 2025 cost target. The bank now expects its cost-income ratio to be under 65% in 2025, up from a previously communicated target.