Deutsche Bank AG, a prominent global banking and financial services company, headquartered in Frankfurt, Germany, is recognized as one of the world’s leading financial institutions. Established in 1870, the bank has over 150 years of experience and has built a strong reputation for developing effective financial solutions to meet the complex needs of a diverse range of clients. The following article provides a comprehensive overview of Deutsche Bank, its services, performance, and its significant role in the global financial market.
Deutsche Bank was founded with a clear mandate – to facilitate German and European businesses’ trade relations worldwide. Starting with its first overseas branch in London in 1873, Deutsche Bank quickly expanded its operations, reaching the shores of Asia and the Americas by the early 20th century.
Deutsche Bank has grown not just organically but also through strategic mergers and acquisitions, such as Disconto-Gesellschaft in the 1920s, Mendelssohn & Co. in 1938, Morgan Grenfell in 1990, Bankers Trust in 1998, and Deutsche Postbank in 2010.
Over the years, it has weathered several economic storms, including two World Wars and the Great Depression, morphing into a universal bank with a vast array of services. The bank has also been embroiled in numerous scandals throughout the years, includign several in the 21st century.
Short Facts About Deutsche Bank
Founded: In Germany on March 10, 1870
Company type: Aktiengesellschaft (Public company)
Traded as: FWB: DBK, NYSE:DB
ISIN: DE0005140008
Headquartered: Zwillingstürme der Deutschen Bank (Deutche Bank Twin Towers) in Frankfurt, Germany
Investing in Deutsche Bank
Deutsche Bank is a publicly traded company listed on both the Frankfurt Stock Exchange (Börse Frankfurt) and the New York Stock Exchange.
FWB: DBK
NYSE:DB
It grew to become one of the main listed companies in Germany after World War II and it is today included in several notable indices, including DAX and Euro Stoxx 50.
Examples of large shareholders in Deutsche Bank:
- BlackRock (5.38% at the disclosure in 2023)
- Paramount Services Holdings Ltd. (4.54% at the disclosure in 2023)
- Douglas L. Braunstein (3.18% at the disclosure in 2020)
- Supreme Universal Holdings Ltd. (3.05% at the disclosure in 2015)
Services and Specialties
Deutsche Bank provides a broad spectrum of services including retail banking, corporate and investment banking, asset management, and private wealth management. Its clientele comprises individuals, small and medium businesses, corporations, governments, and institutional investors, worldwide.
In its corporate banking arm, Deutsche Bank offers comprehensive financial and sector-specific services such as Mergers & Acquisitions consulting, equity and debt capital market activities, risk management, and treasury solutions. Its retail banking services include checking accounts, savings deposit, personal loans, mortgages, and credit cards.
Global Presence and Performance
Spread across 55+ countries, Deutsche Bank’s global network allows it to provide seamless services to clients in many different parts of the world. It ranks among the top 20 largest banks globally concerning total assets and its presence is especially large in Europe, Asia and the Americas.
Since 2011, Deutsche Bank has been listed as a global systemically important bank by the Financial Stability Board, an international body that monitors and makes recommendations about the global financial system. The bank has also been designated as a Significant Institution by the European Banking Supervision since 2014 and is therefore under the direct supervision of the European Central Bank.
Like many banks, Deutsche Bank has had its fair share of challenges. The 2008 global financial crisis had a significant impact on its performance, and it has faced several regulatory issues, scandals and penalties in recent years. Despite these hurdles, Deutsche Bank has been resilient, implementing strategic changes, restructuring its operations, and managed to keep on trucking.
The Early Days of the Deutsche Bank
Foundation
Before the foundation of Deutsche Bank in 1870, German importers and exporters were utilizing British and French banks to reach the world markets, and German bills were neither well known nor much trusted in international commerce.
Deutsche Bank was established to facilitate German and European commercial trade relations worldwide, fiance foreign trade and promote German exports. In addition to this, it came to play a vital role in the overall development of financial services in Germany.
The bank´s statue was adopted on the 22nd of January in 1870 and it received a banking license from the Prussian government on the 10th of March that same year.
Quote (translated into English) from the license: “The object of the company is to transact banking business of all kinds, in particular, to promote and facilitate trade relations between Germany, other European countries and overseas markets.”
Founders
Adelbert Delbrück (of Bankhaus Delbrück, Leo & Co.) and Ludwig Bamberger (a politician and former chairman of Bischoffsheim, Goldschmidt & Co) are commonly referred to as key founders of Deutsche Bank, but they were definitely not the only founders. The other founding members were Anton Adelssen (Bankhaus Adelssen & Co., Berlin); Heinrich von Hardt (Hardt & Co., Berlin, New York); Gustav Kutter (Bankhaus Gebrüder Sulzbach, Frankfurt); Victor Freiherr von Magnus (Bankhaus F. Mart Magnus); Gustav Müller (Württembergische Vereinsbank, Stuttgart), Adolph vom Rath (Bankhaus Deichmann & Co., Cologne); and Hermann Zwicker (Bankhaus Gebr. Schickler, Berlin).
Early offices in Berlin
The first office for the bank was set up on the first floor at 21 Französische Strasse in Berlin, but in 1871 Deutsche Bank moved to a building closer to Börse Berlin (the Berlin Stock Exchange). Five years later, work commenced on the construction of a large office complex for the bank on Mauerstrasse.
Early branches
The first domestic branch of Deutsche Bank was inaugurated in Bremen in 1871, followed by one in Hamburg the next year.
Overseas offices were established in Shanghai and Yokohama in 1872, in London in 1873, and in several locations in South America in 1874-1886. In 1889, Deutsche Bank participated in the foundation of the Deutsch-Asiatische bank in Shanghai.
The branch of Deutsche Bank in London was especially imporant as it was required to establish credit for German traders in the heart of the British Empire. Back then, London was the world´s major financial hub and Germany did not want to miss out on the action. The first branch of Deutsche Bank in London actually failed, but it was soon followed by another more successful establishment.
Within Germany, Deutsche Bank would often form parternships with regional banks instead of opening their own regional bank office. Through such partnerships, they quickly established themselves in all of Germany´s main industrial regions. Examples of branches that were actually opened independently instead of through partnerships are the Frankfurst branch in 1886, the Munich branch in 1892, and the Dresden and Leipzig branches – both established in 1901.
By late 1908, Deutsche Bank had become the largest German joint-stock bank by total deposits, holding a total of 489 million Marks. (The second-largest bank, Dresdner Bank, was holding 225 million Marks.)
Early projects
In the early days, Deutsche Bank was involved in the financing of several major undertakings, including the Northern Pacific Railroad in the United States, the Baghdad Railway in the Middle East, and the bond offerings of the German steel company Krupp. It also introduced Bayer to the Berlin Stock Exchange.
Final Thoughts
While Deutsche Bank has faced challenges in the past as well as in the 21st century, its long history of navigating through tough times, its broad and diverse service offerings, and its commitment to sustainability make it a formidable player in the global banking industry. As long as this bank continues to adapt to the rapidly changing financial, legislative and political landscape, we believe it will remain a crucial contributor in the world of global finance.
This article was last updated on: June 6, 2024