Deutsche Bank 1 - Historische Gesellschaft der Deutschen Bank e.V.

In 1974, we again reduced the number of our trade in-
vestments. Our holdings of over 25% in Hoffmann's
Stärkefabriken AG, Bad Salzuflen, and in Maschinenfa-
brik Moenus AG, Frankfurt (Main), were cold. At the be-
ginning of 1975 the bank also disposed of its over 25%
holding in Schuhfabrik Manz AG, Bamberg, and a share-
holding of over 10% in Didier-Werke AG, Wiesbaden.
Reorganisation of the bank's branch network
In 1974 we decided to reorganise our branch struc-
ture. These plans are being put into effect as from Janu-
ary 1, 1975. It will, of Course, be quite a while before all
of the organisational and staff Problems can be solved
and the desired rationalisation fully realised.
The new model is intended to achieve even closer
contact of the branches with the market and with the
customers. In future one department is to be responsible
for taking care of the individual corporate and private
customers in all their relations with us, thus for provid-
ing all banking services.
This organisational structure means that strong re-
gional head branches are needed with competent speci-
alised departments. Based on a comprehensive scope of
business activities these must be able to offer a well-in-
formed customer service and also assist the branches
grouped under them.
This was one of the major considerations for the con-
centration of the previous 23 regional head branches
into the present 14. This tightening up of the branch org-
anisation will make for greater similarity between the
balance sheet totals and internal structure of the areas
under the various regional head branches. This will
make it easier for the bank's management to compare
performances and will lend greater transparency to the
cost structure. At the same time it is intended to extend
the independence of the regional head offices as decen-
tralised management and profit units and to delegate to
them an increasing measure of responsibility.
In 1974 the bank opened 15 new offices; two were
closed. The total number of offices thus rose to 1,121.
Foreign business still expanding
The development of our foreign business was influ-
enced to a large degree by thc substantial growth of the
Federal Republic's foreign trade and by the repercus-
sions of the higher oil prices on international rnove-
ments of money and goods.
We were able to increase our share of the financial
Settlement of West German foreign trade. This was true
of the export side and particularly true of imports. Steep
growth rates were achieved in our business with the
state-trading countries and with the Near and Middle
East.
There was a further pleasing increase in our earnings
from payments transactions with foreign countries.
However, the hectic conditions that prevailed at times in
the international money and foreign exchange markets
caused control and labour expenses to increase with a
resultant rise in costs.
World-wide project financing
The efforts of the governments of the industrialised
countries to secure their future supplies of raw materials
and the growing tendency among the OPEC countries to
develop their own infrastructure and expand their indus-
tries have led to a greater demand for project financing.
We played a significant Part in the financing and execu-
tion of many projects that were awarded to West Ger-
many's export industry.
This applies also to the business with the state-trad-
ing countries. On October 29, 1974, a widely-based bank
syndicate headed by us - as previously in 1970 and 1972
- extended a loan to the sum of DM 1.5 bn. to the For-
eign Trade Bank of the USSR for financing the third pipe-
line transaction. The loan is to be repaid primarily out of
the earnings from the sale of natural gas to the Federal
Republic. Further projects valued at several billion D-
Marks are currently being negotiated with the Soviet
Union.
A bank syndicate under our management and the
AKA Ausfuhrkredit-Gesellschaft mbH signed a loan
agreement for roughly DM 790 m. with the Foreign Trade
Bank of the USSR in 1974. The loan is to be used for fi-
nancing deliveries of lorries from the Federal Republic.
The AKA further expanded its volume of credit to Ger-
man exporters, even though the latter at the same time
sought to finance as many of their export transactions
as possible through the Euromarket because of the high
domestic interest rates. There was consequently a
marked increase in the credit extended by AKA in the