Report Deutsche Bank

(Investment Banking)

Submitted To:
Prof. V. Sridevi

Submitted By:
Nitin Srivastav
Roll No. 37
Sec B
Sr. Particulars Page
No No.
1. Objective Of Study 2
2. Introduction to Deutsche Bank 3
3. History of Deutsche Bank 4
4. Entrance of Deutsche Bank Into Investment Banking 4
5. Products of Deutsche Bank in Investment Banking 5-10
 Advisory
 Asset Finance & Leasing
 Cash Management
 Exchange Traded Funds
 Trade Finance
 Trust & Securities Services
 Global Markets
 Global Banking
 Corporate Finance
 Global Transaction Banking

6. The Boston Consulting Group’s Investment Banking 11-12

and Capital Markets Report
6. Recent News Articles On Deutsche Bank 13
8. Awards & Rank of Deutsche Bank: 14-15
9. Deutsche Bank In India 16
10. Conclusion 17

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 Objectives Of Study
 To Know About Deutsche Bank

 To Know About The Products of Deutsche Bank In

Investment Banking

 To Compare The Performance of Deutsche Bank & Other

Leading Investment Banks

 To Know The Recent Happenings In Deutsche Bank

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Investment Bank
Investment banks provide a range of financial and investment related services, advising
clients on security issues, acquisitions and disposals of businesses, arranging and
underwriting new issues, distributing securities and running fund management companies.
They stand at the heart of financial markets in that they help make both the primary
market and, through their trading desks and market makers, the secondary market too.

About Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private
clients franchise. A leader in Germany and Europe, the bank is continuously growing in
North America, Asia and key emerging markets. With 73,114 employees in 75 countries,
Deutsche Bank offers unparalleled financial services throughout the world. The bank
competes to be the leading global provider of financial solutions for demanding clients
creating exceptional value for its shareholders and people. In Asia Pacific, Deutsche Bank
has over 45 offices in 17 financial markets with more than 9,600 staff.

Deutsche Bank has offices in finance-hubs, including London, Moscow, New York,
Singapore, Sydney, Hong Kong and Tokyo. Furthermore, the bank is investing in
expanding markets such as the Middle East, Latin America, Central & Eastern Europe and
Asia Pacific.

The bank offers financial products and services for corporate and institutional clients
along with private and business clients. Services include sales, trading and origination of
debt and equity, mergers and acquisitions ((M&A), risk management products such as
derivatives, corporate finance, wealth management, retail banking, fund management and
transaction banking.

History:

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Deutsche Bank was founded in Germany in January 1870 as a specialist bank for foreign
trade in Berlin. Its first branches, inaugurated in 1871 and 1872 were opened in Bremen,
Hamburg, Frankfurt, Leipzig and Dresden.

The Bank’s first foray overseas came shortly afterwards, in Shanghai (1872) and London
(1873). Already, at this early stage, the bank was looking further afield, making
investments in North and South America, Asia and Turkey.

The bank merged with other local banks in 1929 to create Deutsche Bank und Disconto
Gesellschaft, at that point the biggest ever merger in German banking history. In 1937, the
company name changed back to Deutsche Bank.

Following Germany's defeat in World War II, the Allied authorities, in 1948, ordered
Deutsche Bank's break-up into ten regional banks. These 10 regional banks were later
consolidated into three major banks in 1952: Norddeutsche Bank AG; Süddeutsche Bank
AG; and Rheinisch-Westfälische Bank AG.

In 1957, these three banks merged to form Deutsche Bank AG with its headquarters in
Frankfurt. Two years later, the bank entered retail banking by introducing small personal
loans. In the 1970s, the bank pushed ahead with international expansion, opening new
offices in new locations such as Moscow, London, Paris and Tokyo. In the 1980s, this
continued with the acquisition of Banca d’America e d’Italia, the first time the bank had
acquired a sizeable branch location in another European country.

Entrance In To Investment Banking:

In 1989, the first steps towards creating a significant investment banking presence were
taken with the acquisition of Morgan Grenfell, a UK-based investment bank. By the mid-
1990s, the build up of a capital markets operation had got under way with the arrival of a
number of high-profile figures from major competitors. Ten years after the acquisition of
Morgan Grenfell, the U.S. firm, Bankers Trust, was added.

In 2001, Deutsche Bank was listed on the New York Stock Exchange (NYSE). The
following year, Deutsche Bank strengthened its U.S. presence when it purchased Scudder
Investments. Meanwhile, in Europe, Deutsche Bank increased its private banking business
by acquiring Rued Blass & Cie (2002) and Russian investment bank United Financial
Group (2006). In Germany, further acquisitions of Noris Bank and Berliner Bank
strengthened Deutsche Bank’s retail offering in its home market. This series of
acquisitions was closely aligned with the bank’s strategy of bolt-on acquisitions in
preference to so-called “transformational” mergers. These formed part of an overall
growth strategy that also targeted a sustainable 25% return on equity, something the bank
achieved in 2005.

During the financial crisis of 2007/2008 Deutsche Bank has so far written off about €7
billion which is far less then most of the world's major banks. (source Bloomberg)

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Products Of Deutsche Bank In Investment Banking:
 Advisory
 Asset Finance & Leasing
 Cash Management
 Exchange Traded Funds
 Trade Finance
 Trust & Securities Services
 Global Markets
 Global Banking
 Corporate Finance
 Global Transaction Banking

 Advisory:
1. Mergers and Acquisitions: Deutsche Bank's unique knowledge and
insight into global and regional industries enables our M&A clients to
achieve their strategic objectives. It places the most powerful product
platform and network of relationships at their service.

In an increasingly competitive corporate world, consolidation and

globalisation are effecting huge changes across all industries. Deutsche
Bank's M&A bankers provide extensive cross-border capabilities for large
cap clients, a creative approach to complex transactions along with proven
industry sector expertise.

Deutsche Bank provides advisory services ranging from strategic idea

development to the execution of transactions. Specifically:

• Acquisition Searches
• Balance Sheet Optimisation
• Business Portfolio Reviews
• Buyside Advisory
• Corporate Governance
• Dividend Policies
• Dual-track IPOs
• Fairness Opinions
• Financing Advisory
• Public Takeovers
• Sellside Advisory

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 • Thematic Industry Pieces
2. Financial Sponsors: Deutsche Bank is one of the leading global providers
of investment banking services and products to financial sponsor clients.
The Financial Sponsors Group offers dedicated coverage to the world's
most successful private equity firms, providing its clients with a "one-stop-
shop" solution for all of Deutsche Bank's resources across products,
industries and geographies.

The Financial Sponsors Group delivers:

• Derivative Products
• Equity Products
• Industry Expertise
• Leveraged Finance
• M&A Advisory
3. Industry Specialists: At Deutsche Bank the investment banking
capabilities match the aspirations of their clients.
Each industry is covered by senior professionals with specialist experience
in advising clients and executing transactions. This provides our clients
with access to an extensive skill and knowledge base from which to they
can leverage.

 Asset Finance & Leasing:

Asset Finance & Leasing (AFL) is the center of competence for capital,
project and real estate advisory as well as for arranging and financing
services centered on diverse asset classes, such as Aircraft, Ships, Real
Estate and Infrastructure.
The product spectrum is diverse. It includes, for example, Big Ticket and
Real Estate Leasing, Structured Investments and Construction
Management. AFL’s role differs in each specific transaction. We provide
expertise as arranger, advisor, equity underwriter, lessor or as manager for
real estate facilities.

Leasing and asset finance transactions involve complex, long-term

structures that are tailor-made to serve the specific legal and accounting
requirements of the parties involved as well as to provide for the general
framework of the respective regions. To successfully close such
transactions, AFL is made up of professionals with backgrounds in the
banking, leasing, manufacturing and consultancy sectors. Experts across
various regions work closely together to find the best solutions for their
clients. AFL teams are based in Europe, the United States, Singapore,
Dubai and Japan.

AFL has established a proven track record for various assets. Please take a
look at the selection of awarded transactions.

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 Cash Management:
With extensive global capabilities, Deutsche Bank is the ideal partner to
help you manage and optimize your cash flows and working capital,
providing you with the time and means to concentrate on other areas of
your business. Our cash management division serves large multi-national
corporations and financial institutions.
With hubs in Frankfurt, London, New York and Singapore – and
operations in every major financial center – the Bank offers you unrivalled,
in-depth knowledge of local markets and financial systems.

Deutsche Bank is uniquely connected to what is happening in the financial

industry, all around the world. This enables us to continually present you
with the latest, most innovative products and services. We also make it
easy for you to find out more about our complete range of global, regional
and domestic services for corporations and financial institutions.

 Exchange Traded Funds:

The key benefits of the db x-trackers ETFs can be described in three
words – Efficient, Transparent and Flexible

Efficient

• Low Fees – db x-trackers ETFs are passive index tracking

instruments with low annual management fees and total expense
ratios (TERs)
• Low Tracking Error – db x-trackers ETFs are designed to closely
track their benchmark index with minimal tracking error and
performance leakage

Transparent

• Continuous Pricing – db x-trackers trade on a stock exchange with

continuous two way pricing commitments from Deutsche Bank
and other market makers during exchange trading hours
• iNAV – the intra-day price of db x-trackers can be followed
through the iNAV (indicative Net Asset Value) which is calculated
and disseminated regularly during exchange trading hours

Flexible

• Intra-day Trading – db x-trackers can be bought or sold on the

stock exchange during normal trading hours in the same way as
any exchange listed share.

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 • Trading Size Flexibility– unlike other instruments such as futures,
db x-trackers can be traded in small lot sizes. The unique structure
of ETFs such as db x-trackers also allows ETFs to be traded in
large sizes without causing any market impact.

• Multiple Investment Uses – db x-trackers can be used by

institutional investors for a variety of investment strategies ranging
from an intra-day trading tool to forming the basis of long term
asset allocation decisions.

 Trade Finance:
Deutsche Bank is acknowledged as a leading global trade bank with more
than 130 years experience in helping importers and exporters find optimal
solutions for their individual requirements.
Deutsche Bank Trade Finance offers corporates and financial institutions
industry leading technology, online trading modules and an extensive
range of trade products and services across its global network - which
spans 77 locations in 37 countries - to increase the efficiency of cross-
border trading.
Indeed, with Deutsche Bank as your trade finance partner, you can
seamlessly manage documentary collections, letters of credit and trade
guarantees alongside your risk management and structured export finance.

 Trust & Securities Services:

Deutsche Bank`s Trust & Securities Services provides an extensive range
of trust, agency, depositary, custody and related services on over US$5
trillion in debt and equity securities worldwide. It is organized in five
globally integrated product groups to ensure that every service is provided
by expert, specialist staff.

• Debt Services offers a range of products for bonds, CP and

MTN programs, project financings, escrows, restructurings,
syndicated loans, auction rate securities and Islamic financings
• Structured Finance specializes in asset and mortgage
backed securities, collateralized debt obligations, asset backed CP
conduits and SIVs
• Corporate Services provides management and
administration for a variety of tax-neutral and tax-advantaged
structures
• Equity Services covers ADRs, global shares, German
shares and German capital transactions
• Domestic Custody provides safekeeping and clearing
services for securities in more than 30 markets worldwide.

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 Global Markets:
Global Markets develops innovative solutions to meet the financing,
investing and hedging needs of our clients, who are the world's leading
Corporates, Governments and Institutional Investors.
In trading rooms around the globe we engage in origination, sales,
structuring and trading activities for debt, equity, foreign exchange,
derivative and money market products. Recognized as a market leader
across a broad spectrum of industry sectors and product disciplines, we are
a full-scale, integrated business with the global reach of Deutsche Bank,
the banking powerhouse.

 Global Banking:
Deutsche Bank's Corporate Finance and Global Transaction Banking
activities are collectively called Global Banking and provide an integrated
suite of products and services for clients worldwide. The activities are
listed below.

Corporate Finance

• Advisory
• Asset Finance & Leasing
• Equity Capital Markets
• Debt Finance
• Commercial Real Estate
• UK Corporate Broking
• Client Coverage
o Industry Specialisation
o Regional Specialisation

Global Transaction Banking

• Global Trade Finance

• Trust & Securities Services
• Global Cash Management

 Corporate Finance:

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 Selecting the right investment banking partner is critical. Companies need
banking partners who are able to fully service their needs using specialist
skills and global reach.
As one of the world’s leading investment banks, Deutsche Bank’s
Corporate Finance division provides the complete range of integrated
investment banking products and industry sector coverage, combined with
extensive country and local market knowledge.
Please explore this site to learn about our products and services including
advisory, debt, equity, industry sectors, and regional coverage along with
useful information about principal office locations and career
opportunities.

 Global Transaction Banking:

Global Transaction Banking (GTB) comprises commercial banking
products and services forcorporate clients and financial institutions,
including domestic and cross-border payments, professional risk mitigation
for international trade and the provision of trust, agency, depositary,
custody and related services. Business units include Cash Management,
Trade Finance, Capital Market Sales and Trust & Securities Services.

Performance of Deutsche Bank As Per The Boston Consulting

Group’s Investment Banking and Capital Markets Report (Second
Quarter 2008):

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1. Industry Performance:

2. Revenues were nearly 80% lower than the same period

last year for all the leading investment banks:

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Recent News Articles On Deutsche Bank:
30 October 2008: Deutsche Bank posts surprise profit- Deutsche Bank, Germany's
biggest bank, reported a surprise third-quarter profit and said it doesn't need to raise
capital, prompting the biggest gain in 16 years in Frankfurt trading.

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 The bank rose 18% after posting net income of 435 million euros ($834.9 million).
Analysts had predicted a loss. New accounting rules easing requirements for
marking down investments allowed Deutsche Bank to lower writedowns for the
quarter by 845 million euros to 1.2 billion euros.

30 October 2008: Deutsche Bank shares soar despite lower profits- Deutsche Bank,
one of the four banks supporting the $52 billion (including debt) buyout of BCE
Inc., said today third-quarter earnings were $529 million U.S., down 74 per cent
from a year earlier, but cushioned by favorable new European accounting rules for
the financial service industry. Its shares soared by almost 20 per cent in Frankfurt.
02 November 2008: Deutsche Bank turns down help from government fund.-
Deutsche Bank chief Josef Ackermann said Sunday that Germany's biggest bank has
no plans to take advantage of a government rescue plan for its troubled financial
sector. "Under the current circumstances we will not participate, because we are
strong," said Ackermann, whose bank last week reported a third quarter profit in spite
of the current economic turmoil.

Awards & Rank of Deutsche Bank:

Fortune: Global 500 Rank- 26th Rank
 Industry: Banks: Commercial and Savings- 8th Rank

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Global Finance - World’s Best Bank Awards:
Deutsche Bank has won 16 titles at Global Finance magazine’s “World’s Best Bank
2008” awards. Among the awards, Deutsche Bank was named Best Foreign Exchange
Provider Globally, in Western Europe and in Germany. The Bank was also named Best
Investment Bank in Western Europe and Germany. More details in our headlines section.
Here is the full list of World’s Best Bank Awards won by Deutsche Bank.

 Best Foreign Exchange Provider

o Global Winner
o Western Europe
o Germany
o Best Strategy/Hedging

 Best Foreign Exchange Derivative Provider

o Europe
o Asia

 Best Domestic Bank

o Germany

 Best Islamic Financial Institution

o Europe
o Germany

 Best Investment Bank

o Western Europe
o Germany

 Best Debt Bank

o Western Europe
o Middle East & Africa

 Best Equity Bank

o Central & Eastern Europe

 Best M&A Bank

o Western Europe

 Best Trade Finance Provider

o Germany

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The leading global provider of financial solutions, Deutsche Bank has become the top
investment bank in India. The bank has left behind the big building blocks such as Merrill
Lynch, Lehman Brothers and Goldman Sachs.

Deutsche Bank in India:

In India, Deutsche Bank group has been operating since 1980 and provides
comprehensive financial services to both corporate and retail customers in the areas of
global markets, investment banking, global corporate finance, corporate and transaction
banking, equity broking, retail banking, private wealth management and asset
management. Deutsche Bank has recently launched retail banking and credit cards in
India.

Deutsche Bank group led the market in most of its existing franchises with year end
(calendar year 2006) league tables showing it the No.1 arranger of international bonds in
India, No. 2 M&A player in the country, No. 2 arranger of foreign currency convertible
bonds for Indian corporates, and among the top private wealth managers and institutional
equity brokerages in the country. Deutsche Bank’s transaction banking services continued
their market leading positions in areas like custodial services, cash management services
and depository services. Deutsche’s asset management arm registered the highest
percentage growth in the industry in this period as well. Deutsche Bank recently infused
Rs. 1125 crore of fresh capital in its Indian operations to enable it to have a greater
business engagement in the country.

Deutsche Bank named Best Investment Bank in India:

Deutsche has acquired good position in country's investment banking with a market share
of 16.6% in mergers and acquisitions while 14.2% funds raised through the equity corner.

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Fall of the three biggies- Bear Sterns, Leman and Merrill Lynch- was tragic in the
investment banking world. The investment banks raised its arms in the area of mergers
and acquisitions by providing advice on the issue as consultants. Here the major players
like Merrill Lynch, Goldman Sachs and others have been replaced by conventional banks
such as Deutsche Bank, Royal Bank of Scotland (RBS) that acquired ABN Amro, and
Standard Chartered Bank.

Even in the equity space Deutsche Bank has taken a lead followed by Kotak Mahindra
Bank and SBI Capital Market. These companies have left behind Citibank and Merrill
Lynch in acquiring their positions.

The number of deals has also come down due to the unstable market conditions. So far
this year, Indian companies have concluded 170 deals worth around USD 23 billion as
compared to USD 54 billion last year.

Conclusion
2008 was a challenging year for Global Markets but Deutsche Bank was able to manage it
& showed outstanding results when compared to other Investment Banks. In India,
Deutsche Bank group has been providing comprehensive financial services to both
corporate and retail customers in the areas of global markets, investment banking, global
corporate finance, corporate and transaction banking, equity broking, retail banking,
private wealth management and asset management. Deutsche Bank has recently launched
retail banking and credit cards in India.

Deutsche Bank group led the market in most of its existing franchises with year end
(calendar year 2006) league arranger of international bonds in India, No. 2 M&A player
in the country, No. 2 arranger of foreign currency convertible bonds for Indian corporates,
and among the top private wealth managers and institutional equity brokerages in the
country. Deutsche Bank’s transaction banking services continued their market leading
positions in areas like custodial services, cash management services and depository
services. Deutsche’s asset management arm registered the highest percentage growth in
the industry in this period as well. Deutsche Bank recently infused Rs. 1125 crore of fresh
capital in its Indian operations to enable it to have a greater business engagement in the
country.

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