The FINANCIAL — Deutsche Bank published its annual report for 2012 today. It consists of two sections: the Annual Review and the Financial Report.
The Annual Review presents the bank’s corporate profile and corporate divisions, the development of the share as well as the bank’s staff and its corporate responsibility activities. The Financial Report contains the audited Consolidated Financial Statements of Deutsche Bank for the 2012 financial year, prepared in accordance with International Financial Reporting Standards (IFRS).
Juergen Fitschen and Anshu Jain, Co-Chairmen of the Management Board and the Group Executive Committee, write in their letter to the shareholders: “2012 was a very important year for Deutsche Bank. During this year, we developed a strategy to position Deutsche Bank as a long-term winner in the post-crisis era. As we mobilized this strategy, we took some tough but determined decisions in order to set Deutsche Bank on the right course for the future. Some of these decisions had a substantial impact on our financial performance for 2012. Developments over the past year reinforce our conviction that this strategy is the right course.”
“Nonetheless, we remain concerned regarding regulation which challenges the universal banking model, or which distorts the global regulatory ‘level playing field’ in a way that disadvantages European banks. We are convinced that this model serves our clients most effectively, offering them an integrated range of products and services wherever in the world they need us.”
In its Financial Report, the bank also presents an extensive outlook (pages 233-241): Over the next two years, the banking industry in most of the industrialized countries may see a further normalization of its business environment, with only moderate economic growth as well as significantly more expansive and rigorous regulation. In Europe, 2013 could bring about a turning point for the better for banks, following a period of multiple burdens in previous years caused by the financial, economic and debt crises and the adjustments necessary to comply
with a stricter regulatory environment.
Deutsche Bank reaffirms its commitment to the universal banking model and to its four business segments. Additionally, in order to accelerate the deleveraging activities the bank set up a dedicated Non-Core Operations Unit in 2012. Given the excellent progress on de-risking, the bank has increased its fully loaded Basel 3 Core Tier 1 target ratio to 8.5 % as of March 31, 2013, and the bank continues to expect more than 10 % as of March 31, 2015.
As stated in the Financial Report (page 217), the compensation for the members of the Management Board for their service in the financial year 2012, determined by the Supervisory Board, amounted to € 26.3 million (2011: € 40.2 million) in total. Thereof, as Deutsche Bank AG said, € 9.6 million (2011: € 8.6 million) was for base salaries, € 15.5 million (2011: € 30.9 million) for performance-related components with long-term incentives and € 1.3 million (2011: € 0.7 million) for performance-related components without long-term incentives.
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