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

earned for the financial year, while a further
DM 212 m. will be transferred after the respective
general meeting has given its approval. We obtained
an additional DM 1,656 m. from the capital increase
in February 1990 and a further DM 214 m. in the first
two months of this year from the exchange of bonds
from our 4% convertible bond issue, so that the
equity base in the Group has risen to an aggregate
DM 16.4 bn. Through this we have made provision
for the further expansion of our business volume and
the tighter international capital adequacy standards
in future, and have created additional scope for capi-
tal investment.
- and through internal provisioning
We continue to attach great importance to streng-
thening the Group internally. To this end, we have
- assessed all discernible risks carefully, as in the
past, and made corresponding provisioning;
- taken account of latent risks through appropriate
collective adjustments;
- further strengthened adjustments and provisions
for country risks, differentiating between individual
debtor countries;
- again valued securities holdings uniformly
throughout the Group in accordance with the strict
"lower of cost and market" principle;
- added DM 116 m. to the special item with partial
reserve character.
Dividend increase from DM 12 to DM 14
The Group achieved net income for the year of
DM 1,340 m. In order to let our shareholders partici-
pate in the improvement in our results, we propose
that the dividend be increased by DM 2 to DM 14 per
DM 50 share.
B. Positioning of the Group
We continued to expand Deutsche Bank Group
during the year under review.
In Europe: presence strengthened appreciably
At the beginning of December we issued a take-
over bid to the shareholders of Morgan Grenfell
Group plc, London, the British merchant bank. We
meanwhile hold more than 90% of this company and
shall acquire the remainder of the outstanding shares
in the middle of May 1990. With Morgan Grenfell we
will consolidate our presence in British corporate
customer business and significantly enhance our in-
ternational position in Mergers & Acquisitions and in
asset managemenl for institutional investors.
In Austriä we bought Antoni, Hacker & Co., Vienna,
a private bank. Since December it has been operating
as Deutsche Bank (Austria) Aktiengesellschaft.
As a base from which to enter the European mort-
gage loan market, we - together with our three mort-
gage bank subsidiaries and Deutsche Bank Luxem-
bourg S.A. - set up "Europäische Hypothekenbank
der Deutschen Bank" in Luxembourg. From there,
communal loan business in particular will be ex-
tended in the European market and funded through
corresponding issues.
We have meanwhile built up our stake in Banco
Comercial Transatlantico, S.A., Barcelona, to 721 %.
Now we have a branch network available to our cus-
tomers in Spain as well.
In Portugal we received permission at the end of
1989 toset up an investment bank. It will take over the
business of MDM Sociedade de Investimento, S.A.,
Lisbon, and be called Deutsche Bank de Inves-
timento, S.A.