entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 146
Financial Report 2010 Outlook
Global Transaction Banking
The outlook for global transaction banking over the next two years will likely be influenced by both negative
and positive factors. The low interest rate levels seen in most markets during 2009 and 2010 will likely continue
to adversely impact net interest income in the near term, while the ongoing recovery in global GDP, international
trade volumes, cross-border payments and corporate actions should partially offset the aforementioned. However,
an anew, double-dip recession would imperil growth prospects. Furthermore, the new Basel regulations pose a
challenge analog to the overall banking industry.
Deutsche Bank’s Global Transaction Banking (GTB) business will likely be impacted by the environmental
challenges outlined above. The sustained momentum of profitable growth and client acquisition in recent years,
together with its leading position in major markets, leaves Global Transaction Banking well-placed to attract
new clients even in challenging conditions. The business is focusing on deepening its client relationships with
Complex Corporates and Institutional Clients in existing regions while pushing further growth in Asia. In addition,
initiatives have been launched to further re-balance our earnings mix to reduce dependency on interest rates.
The successful consolidation of parts of ABN AMRO’s corporate and commercial banking activities in the
Netherlands in 2010 will further strengthen Global Transaction Banking’s footprint in Europe by creating a
second home market for corporate clients and achieving deeper client coverage and complementary product
offerings. The business is expected to capitalize on synergies resulting from the integration of the Corporate &
Investment Banking activities. Closer co-operation with other areas of the Corporate & Investment Bank as part
of the ongoing integration will ensure that a wider range of clients will benefit from Global Transaction Banking’s
services.
Global Transaction Banking is well-positioned and aims to achieve a contribution to the 2011Group Target of
€ 1.0 billion income before income taxes, based on the assumptions set out above.
Asset and Wealth Management
The outlook for the asset and wealth management business will be influenced by multiple factors in 2011 and
2012. Recovery in equity markets that started in late 2009, and accelerated in 2010, if continued in the next
two years, will foster an increase in revenues from commissions and performance fees. Market appetite to regain
prior years’ losses may stimulate investments in multi-asset, alternative and equity products, while signs of broad
based recovery in the real estate market should improve prospects in alternative investments over the next two
years as well. Long term trends, including the ongoing shift from state pension dependency to private retirement
funding, ageing populations in mature markets, and growing wealth in emerging economies, will also positively
impact revenues and new invested assets opportunities over the next two years. Conversely, revenues may come
under pressure in the near term if market volatility reoccurs and investors continue to retreat to cash or simpler,
lower fee products.
Deutsche Bank’s Asset and Wealth Management (AWM) continues to be a leading and diversified global service
provider, strongly positioned to benefit from the market indicators outlined above.