Deutsche Bank: The financial service provider's journey in the US
"Deutsche Bank opened its first branch in NY in 1979 and was the first German bank to list on the NYSE (in October 2001). Deutsche Bank is the only investment bank physically located on Wall Street and one of the largest foreign-based employers in New York City. In the United States, it has over 11,000 employees in 28 states and 90 cities. The North American operations are headed by Seth Waugh as the Chief Executive Officer. Deutsche Bank is a leading provider of financial services to agencies, corporations, governments, private individuals and institutions in the Americas.
The products portfolio of bank includes debt, equity, and other securities. In addition, it provides corporate advisory, corporate lending and transaction banking services. Deutsche Bank Americas contributes around 26% of total Group revenues.
The DB US registered income of $8.4 Billion during the fiscal year ended December 2010, an increase of 2.3% over 2009. The net profit of the bank was $667 Million during the fiscal year 2010, down 70% compared to 2009. The CB&S sub-division reported revenue of $4.64 Billion, representing 54% of the CIB (Corporate Investment Bank Group) segment revenue. In 2010, the GTB (Global Transaction Banking) division reported revenue of $754 Million, accounting for 8% of the CIB segment's total revenue. In the next nine months period ending December 2010, the segment reported $741 Million, representing 15% of the CIB segment's total revenue.
Deutsche Bank AG launched a new UCITS III compatible equity fund in January, 2010.The equity fund helps reduce volatility and draw downs compared with an equity benchmark. It commenced operations which are focused on small and medium sized companies from all the sectors with the turnover of up to $100 Million and initial capital of $300 Million. In October 2010 the group announced Prism, a guaranteed liquidity service powered by the Bank's Autobahn electronic execution platform. Prism is first of its kind with aggregated liquidity across the complete spectrum of Rates products (Interest Rate Swaps, US Treasuries and US Treasury Futures). Such new products and services will help the company in increasing its customer base and to generate good revenues in future.
Deutsche Bank AG expects to dismiss a U.S. government case accusing it of fraud for misleading about the handling and quality of mortgages it profiled under the federal housing program. It sought more than $1 Billion; the government had accused Deutsche Bank of misleading the Federal Housing Administration that the mortgages issued by its Mortgage IT Inc unit qualified for insurance but the quality was so sub-standard that 1/3rd got defaulted.