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