entire - Deutsche Bank Annual Report 2012

Deutsche Bank Report of the Supervisory Board 43
Financial Report 2010
Report of the Supervisory Board
In 2010, the economic environment continued to stabilize further, beyond our original expectations. In particular
our home market, Germany, benefited from this. Growth continued in the key emerging markets of Latin America
and Asia. In the eurozone, fiscal tightening and economic rebalancing dampened growth in some countries.
Uncertainties remain concerning the stability of the financial system, which, in light of the excessive levels of
sovereign debt, led to high volatility in the capital markets. Furthermore, new regulatory requirements have
become more concrete in the wake of the crisis. The “Basel III” rules recently approved by the G20 are just the
beginning.
For Deutsche Bank, 2010 was a year of investments, a year in which we drove change and clearly enhanced our
competitive position. In many ways, the bank is now stronger than before the financial crisis and exceptionally
well positioned for renewed growth. Our market presence was significantly expanded through the takeover of
parts of ABN AMRO Bank in the Netherlands as well as Sal. Oppenheim and Postbank in Germany. The bank
has thus improved its earnings power, especially in the retail and commercial banking businesses, and is creating
a second powerful revenue engine alongside its globally successful investment banking operations.
The bank also strengthened its equity capital base. Thanks to the well-chosen timeframe, the capital increase
was carried out very successfully in September with gross issue proceeds of € 10.2 billion, making it possible
to launch into the decisive phase of the Postbank takeover. The bank’s capital strength will continue to be a top
priority for the Management Board and Supervisory Board in the future, too. We also took this into account in
this year’s dividend proposal, just like last year. The bank will continue to face major challenges, including the
Postbank integration, and new regulatory requirements. We would like to thank the Management Board and
the bank’s employees for their great personal dedication.
In 2010, we again addressed numerous statutory and regulatory changes. Last year, we extensively discussed
the bank’s economic and financial development, its operating environment, risk management system, planning
and internal control system as well as changes in the system of compensation for the Management Board. We
held in-depth discussions with the Management Board on the bank’s strategy and continued implementation of
the measures in phase four of the bank’s management agenda. The Management Board reported to us regularly,
without delay and comprehensively on business policies and other fundamental issues relating to management
and corporate planning, the bank’s financial development and earnings situation, the bank’s risk, liquidity and
capital management as well as transactions and events that were of significant importance to the bank. We
advised the Management Board and monitored its management of business. We were involved in decisions of
fundamental importance. Regular discussions were also held between the Chairman of the Supervisory Board
and the Chairman of the Management Board dealing with important topics and upcoming decisions. Between
meetings, the Management Board kept us informed in writing of important events. Resolutions were passed by
circulation procedure when necessary between the meetings.