For the allies in the bank, it is also a way that we can be able to showcase what our bank stands for, you know, the sense of belonging. I work at Corporate Bank as a R isk Manager. Within Risk Management, one of the components is to identify risks, yeah, before they occur. You know, coming up with those hypothetical situations, could this happen? And then sitting now at the table with the stakeholders, yeah, and running through this process. I'd like, at the end of my tenure in Corporate Bank as a Risk Manager, to be able to look back and say, "Hey, I caught that risk before it occurred. I caught that risk before it occurred. I caught that before it occurred." Yeah, that would be really cool. There's no ceiling to development.
You develop, and then at a certain level, you think, "Okay, I need a much bigger challenge." Yeah, the challenges are there. With a bank that offers that, yeah, then I always think to myself, "Why would I want to move somewhere else?" For me, that was one of the first things that helped me develop a sense of bonding and loyalty and trust for the bank. If the bank can offer me this, yeah, that allows me to be a mom at the same time and pursue my dreams, then I have everything that I need. I feel at home. I feel heard. I feel like my views are taken into consideration, and I feel supported. Therefore, Deutsche Bank. They're not the tallest buildings in Frankfurt's skyline, but they're a powerful symbol of the city and its status as a financial center.
The Deutsche Bank Towers were officially opened on January 23rd, 1985, exactly 40 years ago. Prior to moving into the towers, Deutsche Bank's head office had been in Frankfurt since 1957. In early 1979, the bank managed to buy a plot of land in the city, where the construction of a high-rise building with two towers was already underway. The seller had originally considered renting out some of the floors to a hotel, which explains why the myth that the towers were actually planned as a hotel persists to this day. Deutsche Bank decided to continue building the towers, and from March 1980, they slowly rose into the Frankfurt sky. At the end of October 1984, around 1,700 employees started moving into the new head office. The official opening was celebrated in January 1985, to which 400 guests were invited.
From the very beginning, art played an important role in the towers, with each floor dedicated to a separate artist. Between 2008 and 2010, the bank decided to give the towers [audio distortion]
Every day, people follow their dreams of creating something new. Entrepreneurs shape change in their industries. Families build wealth for future generations. Investors foster innovation. This takes courage and a trusted partner who sees change as an opportunity and who is determined to drive this change with its expertise, foresight, and determination. We are that trusted partner supporting our clients with solutions tailored to their individual goals, today and tomorrow. As a Global House Bank, our dedication to our clients has shaped our bank for over 150 years in 56 countries. Our purpose is clear. We are dedicated to our clients' lasting success and financial security, at home and abroad. That is why our bank has consistently evolved. With our four strong business divisions, we offer the right solutions for whatever challenges our clients face.
We support companies by combining our global reach with local expertise through tailored financing, payment, and trade solutions. Our Global Network creates lasting connections between clients, between markets, and between regions. We enable financing. We manage risks. We create new opportunities. For more than 20 million private clients, we provide the right support for whatever stage of life they're at. Our solutions range from standard financial products and loans to personalized investment strategies. We protect our clients' wealth and stand at their side with financial advice wherever they are in the world. A core element of our strategy is sustainable growth. We play an active role in shaping the transition to a digital and low-carbon economy, supporting investments into areas relevant and viable to our future.
We are guided by our deep dedication to the people who place their trust in us, knowing that our actions can create new opportunities for them. This is how we aspire to shape the future together. Your Global House Bank.
[Foreign language] Shareholders, ladies and gentlemen. Welcome to our Annual General Meeting, which I hereby formally open. Over the past 12 months, Deutsche Bank supported its clients through challenging times. Demand for our advisory services and solutions was strong, as reflected in positive momentum in all businesses. Our revenues exceeded the EUR 30 billion mark. We delivered strong operating results, both last year and in the first quarter of 2025. As promised, we have further increased our distributions for you, our shareholders. I would like to use this opportunity to thank the Management Boards and all of the Bank's employees. With their commitments, they have laid the basis for further success this year and for growth in the years to come. We would like to discuss all of this with you here today, but let me first of all turn to a number of formalities.
The Annual General Meeting was convened in proper form and in due time. The agenda was published in the Federal Gazette of 31st of March 2025. All Management Board members are present here today in the studio, as are my Deputy, Norbert Winkeljohann, and myself. All other members of the Supervisory Boards, with the exception of John Thain and Michele Trogni , are also on site in a separate meeting room here in the building. They are following the Annual General Meeting from that meeting room and are also able to communicate with us here if necessary. I would also like to welcome all of them very warmly. The notary, Dr. Beta, is sitting on your far right. He will be taking notarized minutes of today's Annual General Meeting. The list of attendants is currently being drawn up.
In addition to the company's proxies represented here today in the attendance area, it also includes all shareholders and shareholder representatives who are following our meeting via the shareholder portal. The list of attendants will be made available to duly registered shareholders and their representatives via the shareholder portal and updated there from time to time. We will also announce attendants here later today. The attendance area covers the so-called Forum and the adjacent rooms in Section E2 and the facilities in Section A10 here at Taunusanlage 12, where the bank office is located and where the counting of votes will take place later today. It also includes the Supervisory Board's meeting room and adjacent rooms at Level A35. The agenda with the wording of the proposed resolutions is on display here. In addition, the notary has a copy at hand.
This also applies to the announced counterproposals and election proposals, which we have also made available on our website. So much for the formalities. Ladies and gentlemen, the challenges for the wider economy have not diminished. The rules of world trade are being challenged. Volatility in the financial markets has increased, and the pressure is growing on Europe to take more responsibility for its own security and competitiveness. However, we are seeing many encouraging signals. Europe got the message. There is real momentum for political reforms, both in Brussels and in Berlin. In addition, Germany is using its fiscal leeway, creating a special fund and reforming the constitutional debt brake. All of this is welcome, and all of this will benefit Europe's economic growth and ultimately Europe's sovereignty. Deutsche Bank is extremely well positioned to seize the opportunities that come with this.
We are the leading bank in Europe's largest economy. At the same time, we offer capital markets expertise and a Global Network in a way only very few banks can. Our global workforce that brings together employees from a broad range of different backgrounds and skills enables us to provide our clients with the best possible support. Higher investments, whether in infrastructure, innovation, or defense, require the most efficient possible combination of public and private funding. Who, if not us, can bring together investors with investment opportunities in Germany? For our European clients, we are a gateway to the world, and for international investors, we are a bridge to Europe. For 155 years, we have stood ready to safeguard companies against risk or help them open up new supply chains and distribution channels. Acting sustainably is becoming ever more important.
Our clients must adapt to profound changes in energy supply and, above all, the greater role of electricity in our economy. This is also a question of energy security. The demand for capital will be enormous here, too. At the same time, our corporate clients need to keep a watchful eye on climate and transformation risks and secure their supply chains. We are proud to be able to stand by our clients as a reliable partner in these uncertain times because we feel fully dedicated to their long-term success and financial security. We formulated this purpose last year and presented it to you at last year's Annual General Meeting. It is part of a comprehensive framework that includes our vision, our strategy, and our aspirational culture. As the Supervisory Boards, we have closely supported this process.
We are aware that we can only further expand our role as the Global House Bank if we bring this common understanding to life in the day-to-day work of our people. Our purpose is more topical and important than ever before. Right now, it is important to align ourselves with the needs of our clients. Our CEO, Christian Sewing, will go into more detail in a moment. Ladies and gentlemen, 2024 was also a year of intensive activity for the Supervisory Boards. In total, we held 55 plenary and committee-level meetings in which we closely monitored and supported the bank's progress. We focused in particular on sustainably strengthening profitability in order to achieve the bank's growth targets. At the same time, of course, the ongoing cost measures, important litigation cases, and the management of financial and non-financial risks were also discussed.
Further strengthening and developing our internal controls remains a priority for us. Here, too, we have made further progress. As always, you will find a detailed report on our work on the Supervisory Board in our Annual Report. Another focus of our work in the past 12 months were changes in the Management Board. These were important steps to set the course for the next phase of Deutsche Bank's growth strategy. In July last year, we appointed Laura Padovani as Chief Compliance and Anti-Financial Crime Officer, thus creating a separate Management Board position for these important control functions. Laura Padovani has many years of international experience in the field of compliance and thus provides exactly the profile we need in order to continue to systematically develop the bank's controls, which have already been strengthened significantly, now linking them closer to the businesses and increasing efficiency.
We have also positioned ourselves well for the long term in another control function. A few days ago, Marcus Chromik took up his role as Chief Risk Officer, succeeding Olivier Vigneron . Marcus brings more than 20 years of experience to this new role and is widely recognized as one of the leading risk experts in Germany and beyond. In recent years, he has also worked intensively on the potential of new technologies for risk management, especially AI. His expertise will help us further strengthen our Risk Management at a time when the global economy is facing major challenges. We are also making a timely transition in the finance function. After making outstanding contributions to the transformation of our bank, James von Moltke has decided to turn to new endeavors when his contract expires next year.
We are pleased that we are able to appoint an equally strong successor for this strong CFO in good time. Raja Akram will join Deutsche Bank on the 1st of October 2025 and will join the Management Board from 1st of January 2026. Most recently, Raja has been Deputy Chief Financial Officer at Morgan Stanley, and he brings many years of experience from another leading global bank, Citigroup. He has an excellent reputation and will help us to consistently pursue our financial goals and raise the bar even higher. Dear shareholders, the new members of the Management Board would also like to briefly introduce them selves to you, so let's have a look at their videos at this point.
Hello, my name is Laura Padovani. I joined the Management Board last year and I'm responsible for Compliance and Anti-Financial Crime.
I'm really passionate about making sure Deutsche Bank is a safe and stable partner for our clients. This means reinforcing our risk culture, building the right controls, and doing what is right, not just what is allowed. What excites me about Deutsche Bank is what brought me here in the first place: our people, the purpose, and its potential. We have a truly diverse and committed workforce, a clear purpose based around our clients, and the potential to be an even greater force in our industry. Our Global House Bank model continues to support economic growth and societal progress, and I'm really excited to be on this journey.
My name is Marcus Chromik. I was born in 1972 in Kiel, so I'm a Northern Light. By training, I am a Nuclear Physicist. For the past 20 years, I have been working in banks, in Risk Management.
I spent the last 14 years at Commerzbank and the last 8 years there as Chief Risk Officer. I joined Deutsche Bank on March 1st and am now the Chief Risk Officer. I am very much looking forward to this role. What excites and enthuses me about Deutsche Bank? Deutsche Bank is the Global House Bank for its clients. In these turbulent times, our clients need a Global House Bank that helps them manage risks and take opportunities. For this, Deutsche Bank's Risk Management must continue to evolve. I will commit myself to this task, which I am very much looking forward to.
Raja Akram. I grew up in Pakistan. I went to college in the United States and spent time in Latin America. I spent 14 years at Citigroup in a variety of roles before moving to Morgan Stanley.
What attracts me to Deutsche Bank? This is a chance for me to play my part in a story that's still being written, to shape the next chapter of growth and progress. In the fast-changing world of today, Deutsche Bank has a historic opportunity. We can build on the hard work of transformation and use our financial strength to grow our business further and faster. We offer clients a unique combination: a global bank based in Europe with an unrivaled position in Germany. I'm looking forward to working with James von Moltke, whom I've worked with before on a smooth transition, and to join an outstanding management team in October. It's a real privilege to be part of the bank at this pivotal moment for the world, Europe, and for us .
[Foreign language] In addition, the Supervisory Board has renewed Christian Sewing's contract ahead of schedule until April 2029. Christian took over leadership of the bank in 2018 at a difficult point in time. Today, Deutsche Bank is in a completely different position. It is sustainably profitable and is steadily increasing capital distributions. All of this speaks for Christian Sewing's success as CEO. We on the Supervisory Board are convinced that he is exactly the right person to continue to lead the bank on the path to further growth, make it even more profitable, and thus realize our great potential. Christian, I'm very much looking forward to continuing to work closely with you in the coming years. We've also extended the contract of Fabrizio Campelli, who has successfully led our Corporate Bank and our Investment Bank on a growth trajectory in recent years.
He has now also assumed responsibility for the Americas region following Stefan Simon's departure from the bank at the end of April. The Corporate Bank and Investment Bank are our largest businesses in the region. Let me use this opportunity to once again thank our departing Management Board members once again. Olivier Vigneron and Stefan Simon have successfully supported Deutsche Bank in recent years and helped us navigate through many challenges. Let me express our most sincere thanks to Olivier and Stefan for their many contributions. We wish both of them all the best for the future. Today, however, we also have to say goodbye to two members of our Supervisory Board, Dagmar Valcárcel and Theodor Weimer, who will leave the Board as their mandates expire. I would like to thank both of them for their great contributions in recent years.
With their commitment and expertise, they have been important pillars for our Supervisory Board activities and have contributed to the further development of the Bank. I'm all the more pleased that we can propose two experienced managers as successors. Kirsty Roth, Chief Operations and Technology Officer of Thomson Reuters, will bring further technology, data, and AI expertise to the Supervisory Board. Klaus Moosmayer is an experienced lawyer, has demonstrated his extensive experience in governance roles in two leading global corporations, has several years of board experience at Novartis, and has also earned a reputation as an international thought leader on governance questions. Both of them will introduce themselves later at this AGM. I would be pleased if you could place your trust in them. That also goes for Sigmar Gabriel and Frank Büttel, who are standing for re-election today. Thank you very much to the two gentlemen, too.
I would also like to use this opportunity to thank all my colleagues on the Supervisory Board for their good collaboration, especially my deputies Frank Schulze and Norbert Winkeljohann. S hare this, of course. This Annual General Meeting is first and foremost about our dialogue with you. We want to make this exchange as open, modern, and effective as possible. The virtual format, which we have continuously developed, offers clear advantages. Shareholders can participate wherever they are, and the environmental impact is lower. At the same time, we are aware that some shareholders would also like to have a face-to-face event. That is why, in future, we will be following a clear sequence for our A nnual Meetings.
We will invite you to come to Frankfurt in person at least every four years, for the first time as early as next year, unless any exceptional circumstances, such as a new pandemic, were to prevent it. This year's Annual General Meeting will once again take place in a virtual format. This time, you can ask all the questions live. That was also a preference for many of you. We look forward to the exchange. Ladies and gentlemen, 2025 is a particularly important year for Deutsche Bank. On the one hand, we want to achieve the financial targets that the Management Board has set itself. On the other hand, as announced, it is important to set the course for the next phase in the bank's further development. We aim to become even more client-centric and grow our business further.
The Management Board is already working on this and will present further details in the course of the year. Closely accompanying this process will also be a priority for our work on the Supervisory Board. I would like to thank you, our shareholders, for your trust, your support, and your continued interest in our Bank. Your commitment is of great importance to us. When the CEO begins his speech, I will hand over Chairmanship of the meeting to my Deputy, Norbert Winkeljohann. He will guide you through the rest of the Annual General Meeting. Now, let me hand over to our CEO, Christian Sewing, who will share with you further insights into our strategy and future direction of Deutsche Bank. Thank you very much for your attention, and over to you, Christian.
[Foreign language] Shareholders, ladies and gentlemen, welcome to this year's Annual General Meeting.
It is an honor to stand before you today for the eighth time as the CEO of Deutsche Bank, and I am delighted that I will continue in this role in the coming years. Alex Wynaendts just told you that my contract has been extended to 2029, and I would like to thank the Supervisory Board for this. Above all, I thank you, dear Alex, for your trust, which is not only apparent in this decision, but something I also feel in our daily interactions. L adies and gentlemen, even after seven years, I cannot imagine a better or more exciting job than being at the helm of Deutsche Bank. I'm so proud of how far we have come in that time. Back in 2018, our bank was in a different place. Our profitability was at a low point, and negative headlines were our constant companions.
The transformation of our bank and the tireless efforts of all our employees meant that we were able to turn the tide and report progress year after year. The past year is another example of this, as are the first months of the current year. Our share price is finally a clearer reflection of the progress we have made. In recent weeks, a number of people have asked if the turbulent environment we are now seeing and the looming shifts in the economy might set us back. I don't believe so. It is precisely during turbulent times like these that we, as a Global House Bank, are ideally positioned to provide our clients with the advice and guidance they need. Our bank still has plenty of potential here.
That's why I still come to work every day with the same passion I did 36 years ago when I started my banking apprenticeship in Bielefeld. I am passionate about seizing the opportunities that present themselves to us, and this, together with a team that never ceases to inspire me with its expertise, its dedication, and its passion. A team, ladies and gentlemen, that once again pushed itself to the limit in 2024, carried by a deep dedication to achieving more for our clients and for you, our shareholders. [Foreign language] This dedication is what our bank has been made of for 155 years. Since our forefathers founded Deutsche Bank in 1870, it has overcome many challenges. It has changed, evolved, and repeatedly reinvented itself. One thing remains unchanged.
All over the world, every day, our employees work hard and give the best to find solutions for our clients and give them the support they need. With our expertise, our Global Network, and our diverse suite of products, we create opportunities, and together we plan for the future. Our focus is on long-term partnerships with our clients. We are deeply dedicated to their lasting success and financial security at home and abroad. That is our commitment and a promise we make to our clients. Ladies and gentlemen, this promise carries more weight today than ever before. At times of uncertainty and volatility, our clients need a partner who can help them navigate the uncertainty, minimize their risks, and seize the opportunities this current environment offers. Of course, our eyes are especially on Washington right now.
Beyond the daily headlines that make their way across the Atlantic, two developments are so material that they will likely shape the geopolitical situation for some years to come. The United States is putting both Europe's established security framework and the idea of world free trade into question. It's not yet clear just how the radical shift in trade policy will ultimately turn out to be, but the danger of a global escalation remains. This alone has already caused quite some economic damage. This is particularly evident in the capital markets, where price movements in U.S. government bonds and the U.S. dollar suggest growing doubts among investors, reflecting the low predictability of U.S. policy, as well as concerns about long-term trade restrictions. This naturally has considerable consequences for the world, and especially for us here in Europe. New risks are emerging, but also new opportunities.
More than ever, Europe is needed as an engine for free trade. I see an opportunity for a great European moment if the European states use the current crisis to strengthen Europe's sovereignty and promote growth and competitiveness. We have seen many encouraging signals in recent months. For example, the new EU Commission is focusing on greater economic strength. In Berlin, too, the new German government has had a good start with its change of course in fiscal policy, which means an investment boost for Germany. This was followed by a clear commitment to reforms and growth anchored in the coalition agreement. Some wishes may still be open, but for now, the economy can hope for some material momentum, strong enough to pave the way for solid growth and to position Germany as a growth engine for Europe.
Ladies and gentlemen, this is a job not just for politicians, but also for corporates and for us as a bank. We are ready to play our part in close dialogue with the government to get our economy moving forward again. We can, and we want to help when it comes to making dedicated use of the newly created leeway for infrastructure investments, just as we can and want to help supplement government-funded investments in private capital, in particular for the German Mittelstand. Bolstering our defense capabilities is another major and crucial task for Germany and Europe, and here, too, we can and want to provide support. That is why we have created a dedicated team to provide advice and support to clients in the Defense sector. Demand is already high and is likely to increase in the coming years. All this presents great opportunities for our clients, too.
For the foreseeable future, though, uncertainty and volatility are likely to remain high, and that's exactly the kind of environment in which we can really play to our strengths as a Global House Bank. More than ever, our clients need a bank that understands the global upheavals and helps them navigate the changing environment with financial strength, universal expertise, and global reach. A bank that offers its clients a modern and digital product range, as well as solutions for all kinds of markets and life cycles. A bank that protects their assets against interest rate, currency, and inflation risks, and stands shoulder to shoulder with them with advice, ready to act in their interest, as we see events unfold at a remarkable speed. This is precisely the bank we want to be, and we have all the prerequisites thanks to our unique positioning with four strong and client-centric businesses.
Our Corporate Bank has been voted the world's best bank for corporates by its clients. It combines global reach with a local presence to support multinational clients in adapting their supply chains, implementing their financial plans, and moving money around the world. With our deep roots in Europe and the German Mittelstand, we are ideally positioned to help corporate clients benefit from growth momentum and additional investments in Germany and Europe. Our Investment Bank is also excellently positioned to help institutional and corporate clients in this environment. It offers first-class advisory, financing, and risk management services that are virtually unique in the EU. Ladies and gentlemen, we are the leading non-U.S. provider in fixed income and currencies, and we are the number one in Germany in the origination and advisory business.
Our Private Bank, the clear market leader in Germany, offers our clients omnichannel advisory services and a broad product portfolio for all market phases. It is in the process of consistently digitizing its offering and tailoring it even more to the needs of its different client groups. This is especially true in the areas of Wealth Management Private Banking, where we are a European leader and can leverage our Global Network. Our Asset Management business, DWS, is also ideally positioned to meet our clients' investment needs even in turbulent times. DWS is well placed to serve as a gateway to Europe for investors from all over the world. We have seen high inflows for many quarters, which have brought DWS's assets under management to over EUR 1 trillion for the first time. This proves that our clients appreciate this expertise.
All of this underpins our ambition, which I presented to you here last year. Our vision is to be the European champion as a Global House Bank. This vision is even more relevant now. Worldwide, the demand for European alternative U.S. banks is growing. The more Europe emancipates itself, the greater demand will be for a bank that supports the domestic economy and gives investors from all over the world access to Europe. As the largest bank in Europe's largest economy, this role is exactly what we must strive for. The prerequisite for this is that we are robust, resilient, efficient, and profitable. Ladies and gentlemen, we have made great progress here in recent years, and 2024 was no exception. We have expanded our client business and proven our operational strength.
This is reflected in our revenue and business growth, our discipline on operating costs, and our very strong capital ratio. It is also reflected in the distributions to you, our shareholders. We are proposing a dividend of $0.68 per share today. As promised, this is another 50% increase compared to the previous year. In addition, we bought back EUR 675 million of our own shares in 2024. Another buyback program worth EUR 750 million is currently underway, which will bring total distributions this year to EUR 2.1 billion. I am pleased to tell you here that we have applied to the European Central Bank for a further share buyback for the second half of the year, which has been made possible by our robust capital base and our strong organic capital generation. Our CET1 ratio has been significantly above our target of around 13% for some time now.
In the first quarter, at 13.8%, it was even closer to 14%. We want to maintain this level and keep our CET1 ratio within an operating range of 13.5%-14%. This is the result of the strength of our balance sheet that we have built over time, as well as our robust profitability. Our existing dividend policy, to pay out 50% of our net profit attributable to shareholders, remains unchanged. Overall, this brings us to cumulative distributions of EUR 5.4 billion since 2022. This figure is expected to rise to more than EUR 8 billion for the years 2021 to 2025 as planned. We intend to stick to this course and use the bank's growing financial leeways to continue to increase returns to shareholders while investing in growth and, most importantly, in our clients. I can only reiterate my promise here.
Let's look at the concrete results for 2024, which were shaped by two different developments. Our operating business did excellently, but at the same time, we faced some non-operating costs that we had not anticipated. Overall, we absorbed costs of EUR 1.7 billion for specific litigation matters, including the Postbank proceedings. In addition, we shouldered further expenses for restructuring and severance payments. This led to an increase in non-operating costs and total non-interest expenses, and in combination with higher provisions for credit losses, also meant that at EUR 5.3 billion, our pre-tax profit was 7% lower than in 2023. The reported figures, however, mask how well Deutsche Bank actually performed in 2024 and how disciplined we were once again on costs. We gain a clearer picture when we look at our adjusted costs, which we were able to reduce by 1% year- on- year.
This applied despite inflation and some special factors, and above all, despite continued investments in technology, our controls, and the business. Furthermore, the reported figures do not reflect our bank's great operating strength. This becomes clear when we look at operating profit, that is, the pre-tax profit excluding non-operating costs. This, ladies and gentlemen, rose by 16% to EUR 7.9 billion, a really strong result. The basis for this is laid by our colleagues every day when they work hard to find solutions for our clients. Their commitment is paying off, as our revenues show. We increased these for the fifth year in a row in 2024, reaching EUR 30.1 billion, a 4% increase year-on-year and the highest level since 2015.
A look back at the past fiscal year would not be complete without a big thank you to our employees around the world, whose outstanding performance made this success possible. Our results reflect exactly what I mentioned at the beginning: their tireless commitment to our clients, their expertise, and the deep dedication they show every day. D ear colleagues, on behalf of the entire Management Board, I would like to thank you most sincerely. You are the key to our success, and I am deeply impressed by how you have even stepped it up a notch in the first few months of this year. Because the results we published at the end of April for the first quarter are proof of this. We improved our revenues by 10% to EUR 8.5 billion, the highest level, ladies and gentlemen, in 10 years.
I cannot emphasize this enough: 2015 included revenues from our equities trading business, which we only withdrew from in 2019. That makes this 10-year record high even more remarkable. We were able to increase our pre-tax profit in the first quarter of this year by 39% to EUR 2.8 billion, with all business areas performing better than in the prior year quarter. At the same time, our non-operating costs fell significantly, so that our cost-income ratio fell from 68% to 61%, and above all, our return on tangible equity rose to 11.9%. Both figures were above our targets for 2025. This shows how much earnings power and profit potential our bank has. [Foreign language] As you all know, the second quarter started with a jolt. On April 2nd, the U.S. Administration announced its tariffs, plunging markets worldwide into turmoil.
When we presented our first quarter results at the end of April, we said that this had led to some weaker trading days at the beginning of the quarter. Overall, however, we have also come through this phase of sometimes extreme volatility well, although it remains to be seen how the tariff threat and market events will affect client behavior. We are observing that companies are holding back on mergers, acquisitions, and IPOs, for example, given the current uncertainty. Our diversified business model benefits us, though, in this kind of environment. One thing I would like to emphasize here is how we brought our Global House Bank and our promise to our clients to life during this time. Our economists, market and investment strategists, worked flat out to write up their analyses of the situation, keeping clients up to date virtually in real time.
Our client-facing colleagues were in continuous dialogue with our clients to help them hedge their assets and transactions against the market turmoil. In such volatile times, the financial security of our clients is paramount. At the same time, we must never lose sight of their lasting success. That's why we talk to them about how they can adapt to the new global situation and adjust their supply chains accordingly. A particular strength of our Global House Bank is that we connect countries and regions and help our clients access these networks. Trade corridors into emerging markets are becoming increasingly important. Just as important as the right regional positioning, however, is that our clients are equipped for the most important future trends. In addition to a constant focus on innovative technologies such as automation or artificial intelligence, the transition to a sustainable and low-emission economy remains essential.
A stable climate and a clean environment are not only the basis for our own well-being, but also for a healthy economy. A deep understanding of our clients' value chains and the associated risks at the same time offers great opportunities. Just think of the unavoidable electrification of the German economy, which will require well over EUR 100 billion in investments annually over the next quarter of a century alone. That is why sustainability continues to be a particular priority for us as a bank. Climate change does not care about sentiment. It needs action to fight it. We are sticking to our sustainability targets and our approach to reducing CO2 emissions. In all our businesses, we are engaged in intensive discussions with clients on their sustainable transformation. We are pleased that this issue remains equally important to many of our clients.
It might be less of a topic of public discussion today, but our figures are a proof of this. Last year, we facilitated sustainable financing investments totaling EUR 93 billion. Only once before has this volume been higher, and that was in 2021, an exceptional year right in the middle of the COVID pandemic. We expect this trend to continue in the medium term. This is both an incentive and an obligation for us to keep up our own sustainability efforts. In the past year, we have refined our approach to reducing emissions financed by corporate loans and have now defined pathways for eight carbon-intensive sectors to bring emissions to net zero by 2050. Part of the Management Board's variable remuneration today is linked to us meeting these target paths, which we have so far succeeded in doing.
This progress in the areas of environment, social, and governance is being recognized. We improved our ratings with all the leading ESG rating agencies last year. Since the beginning of this year, we are once again listed in the Dow Jones Sustainability Indices for Europe and the world. Ladies and gentlemen, as you can see, we started 2025 at full speed. We know how urgently our clients need us right now, and we know how important 2025 is for us as a bank as well. It is the year of reckoning, the year in which we'll be measured against the goals we set ourselves three years ago.
Let me remind you of these: compound annual revenue growth of 5.5%-6.5% in line with our ambition to achieve revenues of around EUR 32 billion this year, a return on tangible equity of more than 10%, and a cost-income ratio of less than 65%. The results of the first three months of this, as I just said, show that we are clearly on track in all areas. This gives us confidence, even though the uncertainties in the global economy increased in early April. Our progress is increasingly being recognized, as we can clearly see in our share price. After gaining 35% in 2024, it has increased in value by more than 50% since the beginning of the year. Of course, we are hoping for further price gains because we want to achieve significantly more in the coming years, and we can.
We want to realize our vision of becoming the European champion. That is why 2025 is not only a year in which we want to deliver, but also the year in which we lay the foundation for the next stage of our development. One thing is very clear to us: the next phase for our bank will place different demands on us. We too must change to meet these demands. We have the right strategy and the first-class position. [Foreign language] We need to become even faster and even more determined to better leverage this position. We presented the program with which we want to achieve this at the beginning of the year under the working title Deutsche Bank 3.0. Three items are central to this.
Firstly, we want to further increase our returns by deploying our capital in those areas where it creates the most value. The benchmark for this is the Shareholder Value Add methodology, or SVA, which we have introduced throughout the bank and are incorporating into our planning process and decision-making. By rigorously applying SVA and measuring all divisions and teams against it, we will make our bank stronger. This also means that we will reallocate resources from business areas with a lower SVA score, like we did in April when we discontinued the DSL brand, thereby sharpening our profile in the area of residential mortgages and consumer loans. Secondly, we see potential for improvement not only in how we deploy our resources. We can also become significantly better in the amount of resources we deploy. In other words, we can become even more efficient and faster.
To achieve this, we are working on redesigning our operating model. This includes that we continue to revamp our technical platforms in order to enable a client expertise that is both modern and efficient. The consistent digitalization of our channels in our retail client business is just as much a part of this as the transformation of our platform in the Corporate Bank. In addition to these visible improvements, however, we are also initiating numerous changes in our processes by shifting more responsibility to the business. Of course, we are intensively exploring the possibilities of Automation, Big Data, and Artificial Intelligence in all areas, both in our client offering and also in our own processes. Thirdly, we are strengthening leadership in our bank. Here too, it is a matter of creating clearer structures, streamlining hierarchies, and enabling faster decisions.
To achieve this, we have already reduced the number of committees by about half, as well as our internal policies. This accelerates decision-making and increases accountability while not compromising on our robust controls. Strong leadership also means that we point our employees the way forward and lead by example. To this end, we gave ourselves a shared identity last year. As Alex Wynaendts just said, with our purpose, which focuses on the lasting success and financial security of our clients, and with our vision of the Global House Bank leading in Europe. We are striving towards a corporate culture that encourages employees to act responsively, think commercially, take initiative, and work collaboratively. Ladies and gentlemen, since I took office as CEO in 2018, we have established a strategic direction that serves as our North Star.
We aim to be the Global House Bank for our clients with strong European roots and an extensive Global Network. To achieve this, we must continuously evolve and, where necessary, adapt. This includes constantly realigning ourselves in terms of personnel, including at Management Board level. Alex Wynaendts just described the Management Board restructuring and explained how the future structure of our Senior Leadership team will support our strategic development. I would like to add a few personal thoughts to this. First of all, I would like to thank Olivier Vigneron and Stefan Simon. They have been a great asset to our Management Board with their commitment and expertise and have made a significant contribution to ensuring our continued stability in recent years despite all the challenges. Ladies and gentlemen, I would also like to express my sincere thanks to James von Moltke.
I have great respect for his decision, and it is perfectly in keeping with James' character that he provided clarity at an early stage in order to ensure a smooth transition. As always, he puts himself at the service of the Bank and the team. There will be plenty of time for farewells next year, and until then, we can still achieve a lot together with the entire Management Board team. I would like to warmly welcome Laura Padovani, Marcus Chromik , and looking ahead also Raja Akram to this team. With all their impressive experience, they will undoubtedly be a source of fresh ideas for the Management Board. Shareholders, ladies and gentlemen, I have outlined where we want our path to take us. We want to accelerate our growth trajectory of recent years and scale new heights. We have what it takes.
Our bank still harbors a great deal of potential, and the trends we are seeing worldwide are making it all the more crucial to have a Global House Bank with European roots. We will only be able to exploit our potential, though, if we are prepared to give our best every day for our clients, for our bank, and for you, our shareholders. We are immensely grateful for your continued support. We are very proud that we are back in a position to reward your trust in a more appropriate manner. Here, too, we see considerable upward potential. In this spirit, I look forward to continuing to shape Deutsche Bank together with you in the coming years. Together, we can overcome challenges and seize the opportunities that lie ahead.
We will approach this task with the same deep dedication that has singled out our bank for 155 years. Ladies and gentlemen, with full commitment and with passion. We are also making this promise today publicly with our new brand claim. One that all our employees from around the world can endorse. You can see this claim here on the screen. It reads with deep dedication. The following video shows you in an emotional manner what this means to us at Deutsche Bank. Thank you very much for your attention, and I look forward to your questions.
Success. We all want the formula. Is there one? The short answer is no. If you look deeper, you will find a profound truth. No matter how bad the times or how good. No matter whether there's a global economic crisis or a boom.
No matter how important the goal is or how modest. For the last 150 years and the next 150 years, there is one thing that always moves you forward. That is dedication. It is the depth of our dedication, understanding, and expertise that helps our clients navigate an increasingly complex world. Supporting the way they do business, opening doors to possibilities they did not know existed, and offering new perspectives to solve the challenges of tomorrow. We work with deep dedication so you can expand your opportunities. Dedication is not a formula for success, but it is the most important ingredient, and that will never change. Because where work earns money, dedication creates value. If dedication were a color, it would be deep blue. Deutsche Bank with deep dedication.
[Foreign language] Shareholders, thank you so much to our CEO, Christian Sewing, for his comprehensive presentation.
Shareholders, Christian Sewing has given us a clear understanding of how the Management Board sees the bank, which opportunities are more emerging, and in which direction the bank is moving. The Supervisory Board will continue to assist and support the Management Board as much as possible. Before moving on to the agenda of today's meeting, it is part of our tradition to commemorate the deceased employees and pensioners of Deutsche Bank at the Annual General Meeting. I would kindly ask you to rise from your seats. In the past fiscal year, 77 of our active employees and 649 pensioners of Deutsche Bank passed away. Our thoughts are with them, as well as with the many victims of violent and armed conflicts all across the globe. [Foreign language]
Ladies and gentlemen, I would like to thank you for standing up in memory of the deceased. Let us now move on to the 16th item on today's agenda. Item 1 concerns financial accounts for fiscal 2024 of Deutsche Bank. This includes the established annual financial statement and the Management Report for Deutsche Bank AG in accordance with the German Commercial Code and the approved consolidated statement and Management Report pursuant to the IFRS and the report of the Supervisory Board. These documents will be made available on our website at the end of March prior to the invitation to the NGVM, and you can still find them there today. The annual financial statement and the Management Report were audited by EY GmbH & Co. KG Auditing Company. Neither the audit of the auditors nor the Supervisory Board provided any cause for objection. The auditors issued an unqualified audit opinion.
The Supervisory Board approved the annual financial statement and the consolidated funds statement at its meeting on March 12, 2025. The financial statement has been prepared according to Article 172 Stock Corporation Act. The other items on the agenda, which are available in full text version on our website, relate to the following topics. Item number 2, appropriation of distributable profit. The Board of Management and the Supervisory Board proposed to you today that the distributable profit for the year 2024 be used to pay out a dividend of EUR 0.68 per share. The updated resolution proposal that also refers to the number of our own shares held today can be found on the bank's website, and I will provide you with more detailed information shortly before the votes. Item 3 and 4 concern the ratification of the Management act of the Board of Management and the Supervisory Board.
Item 5 relates to the election of the auditor for the financial year and the auditor of the sustainability reporting. Based on the recommendation of the audit committee, we propose to appoint EY GmbH & Co. KG again as the auditor. We also propose to appoint EY for the audit of the sustainability reporting if it should become necessary due to statutory provisions for the first time in 2025. Item 6 relates to the resolution to be taken on the approval of the compensation report for fiscal 2024. Item 7 and 8 concern the resolution that has to be adopted every year to acquire own shares as part of the buyback program and to use derivatives in order to use these programs in a more flexible manner.
Item 9 deals with the renewed authorization to buy own shares for trading purposes, an option that is very important for all banks and their normal business operations. Item 10 and 11 relate to the creation of new authorized capital. The authorizations will expire on April 30th, 2026, which means before our next Annual General Meeting. They should be replaced by new authorizations valid for a five-year period. I would like to explicitly refer to the reports of the Management Board setting out the purpose of these authorizations and the objectives and reasons for the different options to exclude the shareholders' preemptive rights. Under Item 12, we will deal with the authorization to issue participatory notes and hybrid debt securities. This will allow the bank to get additional Tier 1 capital, which is particularly significant for the management of the capital for financial resources of the bank.
Item 13 concerns the election of four new members to the Supervisory Board. As already mentioned, Mr. Sigmar Gabriel and Frank Witter are up for re-election. In addition to that, we propose to elect Dr. Klaus Moosmayer and Mrs. Kirsty Roth h to the Supervisory Board. I'll come back to that in a moment. Item 14 deals with the amendments to the articles of association. We propose that the authorization of the Management Board be renewed to hold the general meetings as virtual meetings until August 31st, 2027. This authorization can be executed irrespective of our current plan to hold the next general meeting as a face-to-face meeting. Item 15 and 16 will be put onto the agenda upon the request of the Rehberg Brewery founded in 1862, company with limited liability. Both items relate to a special audit on the formation of provisions made by the company.
The Management Board and the Supervisory Board expressed their positions on this topic comprehensively in their statements, and the Supervisory Board proposes to vote against a special order to be conducted. Ladies and gentlemen, this year, Dr. Klaus Moosmayer and Mrs. Roth were proposed as candidates to the Supervisory Board for the first time, and we kindly asked them to briefly introduce themselves in short videos. These videos were published on our website in good time before our general meeting. For you to be able to get a direct impression of them, I would like to ask the four candidates to introduce themselves briefly to you. I'd like to give the floor to you first, Sigmar Gabriel.
Ladies and gentlemen, shareholders of Deutsche Bank, first of all, thank you very much for giving me the opportunity to introduce myself to you and for me having been proposed for another term on the Supervisory Board. My name is Sigmar Gabriel. I'm 65 years old. I live in Lower Saxony. I'm married and I've got three daughters. Having studied German Literature, Politics, and Sociology at the University of Göttingen, I started working first in vocational training. I became a member of the district parliament and the state parliament of Lower Saxony. I became a member of the German government, where I held various functions, including as Minister, and finally as Minister of Foreign Affairs and Vice Chancellor of the Federal Republic of Germany.
On an honorary basis, I have a lectureship at Bonn University, and I'm also Chair of the Atlantic Brücke and a Member of trustees of the International Crisis Group, an international crisis organization. On the Supervisory Board of Deutsche Bank, in addition to the general tasks of a Supervisory Board member, I especially dealt with the matters of anti-financial crime and regulatory risk management. Considering the rapidly changing geopolitical situation, I was able to provide my expertise to the bank in this area of geopolitics in different ways. I'm convinced that in the future, this will also be very much necessary, and I would like to continue providing this know-how to the bank on the Supervisory Board in the future.
As for the future for the bank, I think there's a great opportunity by increasing the use of digital technologies and artificial intelligence to make the bank even more profitable, to allow it to reach the strength that it takes in order to be able to keep up and be on a level playing field with other banks in Germany and Europe, and to be one of the most important pillars of European sovereignty on our continent. Thanks for your attention.
Thanks very much to Sigmar Gabriel. Now I'd like to ask Frank Witter to take the floor and introduce himself briefly.
[Foreign language] Shareholders, I'd be pleased if you approved my second term on the Supervisory Board of Deutsche Bank AG. I'm 65 years old. I'm happily married. We've got three children, two in their teenage years.
I'm very much interested in sports, especially soccer. I used to be a soccer player myself, even going up to the second league, and then I became an official, and today I'm still a great fan. I also love riding my Harley Davidson together with my friends. A big part of my career, I spent in the Volkswagen Group after the diesel scandal, which shook the world in 2015, also in Volkswagen. In October, I was asked to join the Management Board with responsibility for Finance and IT, and of course, there was a lot of cleaning up to be done, and we also had to make sure that the survival of the group is ensured, and we also have to set the right course in terms of electromobility in order to secure the company's viability.
Before holding that job at Volkswagen, I spent seven years as the CEO of Volkswagen Financial Services, so that's the financial, worldwide financial services activities of the Volkswagen Group, and I think it's important to note that my first working day was the day of the Lehman disaster, so crisis management was part of my duty as of day one in a financial setup that had to be realigned all over the world, and that means from scratch I got to know the matter of regulation with the ECB because that developed an entirely new dimension. Before that, I spent 10 years in North America for Volkswagen being in charge of the U.S. and Canada, initially as a treasurer, finally as a CEO and then also CFO.
My first job actually in my career was at BASF AG because right after graduating from Economics in Hannover, I took up that job at BASF. I'd like to continue on the Supervisory Board in order to provide to the bank my expertise and continue providing that support and contributing my excellence also in connection with the other Supervisory Board Members. Thanks for your attention.
Thanks very much to Frank Witter. Now over to Klaus Moosmayer. Dr. Klaus Moosmayer, please introduce yourself.
Ladies and gentlemen, shareholders, my name is Klaus Moosmayer, born in Stuttgart in 1968. I've got a Spanish wife, three children, so we have a German-Spanish family life. I'm a lawyer by profession. I spent several years as a criminal lawyer. I took up my first job with Siemens, spent 18 years there, and that is also when the big compliance crisis hit that company.
I was on the core team to deal with the corruption allegations. I then became the Chief Compliance Officer of Siemens. After 18 years, then I'll change to another regulated sector, namely pharmaceuticals, to the executive board of Novartis as the Chief Ethics, Risk, and Compliance Officer. Now, having managed the old compliance matters, the aim was to set up a new insurance system, bringing together ethics, risk management, and compliance together with all the employees. There was a strong focus at that time on sustainability and human rights. At the same time, on an international level, I was also involved in various bodies, for example, at the OECD, and currently I'm the CO-Chair of the European Economic Forum's Good Governance Area. This long decade of experience in ethics, compliance, and sustainability, I'd like to put to the service of Deutsche Bank and its Supervisory Board.
Over the past few years, I have been very interested in following the successful development of Deutsche Bank, and I'm impressed by its strong focus on Risk Management and Ethics at the bank, and I'd be happy if you were to give me your vote to allow me to provide my international experience and insights to the Supervisory Board of Deutsche Bank. Thank you.
Thanks very much to Klaus Moosmayer. Now, last but not least, we would like to pass the floor to Kirsty Roth for a short introduction. She will introduce herself in English, so in the German channel, you will predominantly hear the interpreters.
Good morning. My name is Kirsten Roth, and for the past five years, I've been the Chief Operations and Technology Officer at Thomson Reuters, really driving our transformation from a previous decade of 2% growth to over 7% organic growth, driven by exemplary end-to-end customer support and building our technology in a way that it gives first-class products to our customers. Previously, I was the global head of operations at HSBC, where we really transformed our processes using robotics and machine learning, really to give our clients a much better service, but also to improve our operational sustainability. Earlier in my career, I worked at Credit Suisse and Deloitte in the areas of transformation, technology, and operations. On a personal note, I reside in beautiful Switzerland. I'm married to a proud German, and we have two teenage daughters who keep us on our toes.
My technology background, including a deep focus on AI, is a very good fit for Deutsche Bank's focus on digital transformation and innovation, and I want to use this experience in technology to advance Deutsche Bank's strategic initiatives and contribute to improved operational efficiency. For me, Deutsche Bank stands for tradition, but also for innovation, and actively shaping technological developments to provide its clients financial security through the very best possible products and services. I've been impressed by the bank's determined approach to major technology projects in recent years and want to bring my expertise to support these programs. I'm enthusiastic about Deutsche Bank's vision of further establishing itself as a Global House Bank at home and abroad, so I would be very grateful for your vote to elect me to the Supervisory Board so that I can support the bank with my expertise. Thank you.
[Foreign language] Ladies and gentlemen, I would like to thank the candidates for their short introductions. We'd be very pleased if you, our shareholders, followed our proposal by voting for the candidates. Now, I would like to draw your attention to the eight counterproposals and four election proposals that we published on our website pursuant to the statutory provisions of Articles 126 and 127 of the German Stock Corporation Act. There you will also find statements that were made by shareholders without counterproposals . That much on the agenda. In the shareholders' portal, you will find a list of participants which is being updated on a regular basis.
Irrespective of that, for the sake of good order, I would like to inform you about the current attendance at this year's AGM. Out of the total share capital, EUR 4,987,527,385.60, consisting of 1,948,252,885 reduced non-par value shares, at today's Annual General Meeting 907,397,758 shares with just as many votes are attending, which corresponds to 46.58% of the share capital. In addition to that, for 77,279 shares with just as many votes, the possibility of what's used to vote in absence of these votes are added will end up with a total quota of 50.53% of the share capital. We will once again inform you formally about today's attendance shortly before the votes.
Ladies and gentlemen, in previous years, too, Deutsche Bank at its Annual General Meetings has always paid great attention to ensuring that shareholders can execute their rights and will be given the opportunity to interact and participate. Unlike in the past, this year we did no longer require that questions be submitted prior to the meeting. We are of the opinion that with this meeting's format, we help to further intensify and strengthen the dialogue between the shareholders and management. Furthermore, we will constantly strive for innovative solutions to improve the virtual format continuously. This year, the shareholders' portal offers new options to our shareholders to further facilitate the exchange with the bank and its management. This includes the 360-degree branch that you were able to visit virtually in Taunusanlage prior to this meeting.
You also had the opportunity to get to know some of our staff members in particular areas. If you did not have a chance to look at it, you might want to try it out during one of the breaks or after the meeting. In order to make sure that you do not miss out on any part of our sessions, you will be reconnected automatically after each break. You might have noticed already that we introduced the live survey this year, which gives you the possibility to give us your feedback during the meeting. This is meant to give you the opportunity to participate actively in the Annual General Meeting and share your views with us directly. We'd be happy if you also participated in this year's shareholder survey.
Your feedback will help us to bring about continuous improvement and to make upcoming Annual General Meetings even more interesting. You will find the survey very soon in the shareholder portal below the live stream or on our website for the AGM. Please use the tab on the left. Ladies and gentlemen, this year too, it is very important for us to listen to your live contributions, which gives you the possibility to exercise your rights as is on an outside meeting. As the Chairman of this meeting, according to 131, Stock Operation Act, it decided the questions can only be asked by way of video communication, which means that shareholders have to take the floor. Since 9:30 A.M., as announced in the convocation, in our shareholders' portal, to which access is restricted, you can ask for the floor by clicking onto the button register for taking the floor.
I would kindly ask you once again to get registered as early as possible so that we can plan ahead. We've already received some requests for the floor. In this context, I would also like to ask you to indicate whether you either want to speak about a particularly important topic or make a proposal. We would like to take that into account when we draw up the list of speakers. If you have asked for the floor, you can see that on the list on your screen, which is called My Contributions, Meine Rede-Beiträge, and you can find out about the status of your contribution by looking at the color code. Immediately after the registration, it will be shown in orange. This indicates that we have received your request and will deal with it.
We will then form groups of speakers and ask them to be ready for a sound check shortly before that group is being called up. Please take into account that it may be possible that you will not be contacted immediately, but at a later point in time during the meeting, depending on the number of speakers and then the group of speakers that you were assigned to. In due course, we will then invite you via the shareholders' meeting via a pop-up on your screen to join the waiting room. An operator will contact you in order to test the technical functionalities of your device for video communication. Let me also mention that you can also use the different functions of the portal while you are in the waiting room.
We will now ask the speakers of the first group to carry out a sound check, and the first speakers are . Let me read out their names one by one. Andreas Thomae, Wolfgang Schärfe, Marcus Kienle, Regine Richter, Frederike Potts, Philippe Dias, Roberto Siotto, Max Bernhard Gutbrod, Daniel Michael Werner, and Claudio Kühn. Please be ready for the technical check, which will start in a minute, and also please be ready when you've registered for the request for the floor and when you're called up, and please also let us know if you change your mind and do no longer intend to speak.
You can reveal your request for the floor directly in the portal, which facilitates the course of the meeting or later on when talking to the operator. We will begin with the contributions without a formal limitation of speaking time, but I must reserve the right to introduce such a limitation. Irrespective of that, I would like to ask all the speakers to limit their contributions to 10 minutes in order to make sure that all the other speakers also get enough time to speak. In order to ensure equal conditions, we will show the speakers a clock on the screen while they speak. Once 7 minutes are over, the time shown in green will change to yellow, reminding them of the fact that you kindly asked them to leave some more time for the following speakers.
When the 10 minutes are over, the color will change to red, but of course, it is at your discretion to ask for the floor again. Ladies and gentlemen , before we begin with the discussion, I would like to give James von Moltke the opportunity to explain how the Management Board used the authorization granted by the AGM to capital measures with the exclusion of preemptive rights for the shareholders in the past financial year. James, the floor is yours.
[Foreign language] and the Acquisition of Deutsche Bank shares. Since the last Annual General Meeting had included the form of subscription rights, that have been excluded for three issuances of AT1 instruments, which meet the regulatory requirements to be recognized as additional Tier 1 capital. The exclusions of preemptive rights were required in each case in order to take advantage of favorable market conditions for successful placements and attractive terms and conditions. The AT1 instruments were placed close to their theoretical market value. The issuances took place in June 2024, November 2024, and March 2025, each with a volume of EUR 1.5 billion
Since the 2024 Annual General Meeting, in accordance with Section 71, Paragraph 1, Number 8, Stock Operation Act, a total of 62.5 million shares, that is around 3.2% of the current nominal share capital, have been repurchased under the authorization to purchase Treasury shares, of which 27.9 million shares have been repurchased for subsequent cancellation. The remaining 34.6 million shares have been repurchased for past and future compensation obligations, in particular from share-based variable compensation programs as required by the German regulation of the institutional compensation regulation. Since the last Annual General Meeting, 34.8 million Deutsche Bank shares, which had been acquired under the current or previous authorization, have been transferred to employees under compensation programs or employee share programs, and preemptive rights of shareholders have been excluded. Ladies and gentlemen, thank you for your attention.
Thank you, James, for these explanations. No w on to the first speakers who are eagerly waiting to speak to us. [Foreign language].
Thank you very much, Mr. Winkeljohann. Ladies and gentlemen . Members of the Managing Board and Supervisory Board, shareholders. My name is Andreas Thomae. I represent the Deka Investment, one of the biggest mutual fund companies in Germany, a subsidiary of Deka Bank, which is the investment branch of the savings banks. The year 2024 was all in all successful for Deutsche Bank.
Revenues have grown solidly, costs have remained constant, and the share price also increased. Now, you have taken Deutsche Bank back onto the growth trajectory, Mr. Sewing. Now, in the first three months of 2025, you have posted the highest quarterly profits in many years, once again underpins this upward trend. You have got the vision of becoming a European champion. Now, for that to be achieved, however, you have got to further push growth. You've got a good team, Mr. Sewing. With you as the man at the helm, Deutsche Bank has got good chances to stick out from the midfield. However, you finally have to deliver what you've been promising for years, namely a higher profit from the stable businesses such as Asset Management, private, and corporate clients' business.
Still, the Investment Bank, which is subject to fluctuations, provides the lion's share of revenues, and especially in the retail business, you've got a lot of catching up to be done. In order to achieve a return on tangible equity of more than 10%, as you have announced, you have to really put another log onto the fire this year. This year, revenues are supposed to grow by about 6%, while costs are to remain stable, which will reduce the cost-income ratio to 65%. Now, these are ambitious targets. Please tell us how you want to achieve this. Which business areas will drive this growth? When it comes to costs, which had been a big issue at Deutsche Bank for many years, now here finally you have reached a level of stability. Mr. von Moltke, here, kudos to you for this.
The visibility of costs and transparency is significantly higher than in the past. In a detailed manner, you explain how you want to achieve your cost targets in the future. What also helps is that the individual divisions now take over more accountability for costs, and they have also streamlined their businesses. Are the outstanding amounts from the cost programs sufficient, and will you reap the full synergies from the Postbank integration this year? What further cost synergies are possible going beyond the year 2025?
Now, due to the geopolitical situation, we also see Europe repositioning itself, which also offers good opportunities for Deutsche Bank. You can use your strengths as a Global House Bank to support your clients. Now, please, let's take a closer look at the individual divisions. The Investment Bank has gained further market shares in origination and advisory and sales, and trading has grown well.
In the U.S., you intend to expand your pension business and are planning to expand in Latin America and in corporate bonds. Have you already made the necessary investments for this, Mr. Campelli? How much revenue did the new acquisition generate last year, and when do you expect to reach your target of $500 million in revenue? In the Corporate Bank, you were able to increase your fee and commission income by 5%, and you want to support your clients in a more comprehensive manner. The EUR 500 billion infrastructure program of the German federal government offers a great potential to expand your corporate clients' business. Seize this opportunity, please. Were you able last year to grow your e-commerce payment services business as planned last year? Asset Management, they achieved a turnaround.
The net inflows, thanks to the strong demand for ETFs, were on a high level, and DWS also has got its costs under control. In the past years, they always were a pioneer in consolidation of Asset Management. Actually, you wanted to be the pioneer, but you did not achieve this. Do you now feel under pressure now that the wave has already gained momentum in Europe? Does a major still make sense for you, or do you want to continue to grow organically? If so, in which area? As every year, we would like to get an answer from you as to when you will finally put the investor-unfriendly KGAA structure up for discussion. This legal structure leads to a markdown at the stock exchange and is not acceptable for us as shareholders. Your biggest issue still is the Private Bank.
In Wealth Management Private Banking, you've made good progress recently. Business with retail customers, however, is still somewhat weak.
Yes, of course, competition for retail clients is strong. However, the general market environment does not look too bad. Mr. De Sanctis, you aim to increase the return on equity from currently 5% significantly. That is something that should be achievable. Just look at your local competitors and take them as an example. What measures do you intend to take to raise profitability to a good European level? How do you see your future positioning in Personal Banking? When will you be able to leverage the full synergies from IT integration with Postbank? How digitized is the business already? Talking about Postbank, after partial settlement, you were able to release a good portion of the provisions. Now, are the remaining provisions now sufficient, and are you planning further settlements?
Very specifically, we would like to know what especially you have learned from this misjudgment and what have you changed in the process? Once again, talking about the Postbank, Mr. von Moltke, can you reverse the provisions made for Postbank mortgages that were created due to the temporary disruption of the collection process? Ladies and gentlemen, in Poland, Deutsche Bank had to write off EUR 500 million due to litigation in connection with FX mortgages. Now, that's quite an amount.
Do you expect to have to raise further provisions? Currently, Deutsche Bank has a strong CET1 ratio of 13.1%, and only a few days ago, you increased your target rate from more than 13% to 13.5%-14%. Over many years, you have optimized the bank sustainably in its structure. Do you think that is there a scope for regulatory surcharges to be reduced in the future?
Can you release even more right-weighted assets by further asset sales and capital light transactions and securitizations? Mr. Leukert, you streamlined the processes in IT, and you generated further efficiencies. How strongly are you focusing on digitalization, automation, and AI in the business processes? What synergies do you expect this year and next? Cyber security is very important for Deutsche Bank, and cyber attacks are increasing. How do you protect yourselves against them? What risks arise from the use of AI? Mr. von Moltke, you decided not to renew your contract, which will expire next year. We highly appreciate you in your role as a CFO. In the last eight years, you have served Deutsche Bank very well and have changed the bank sustainably. The stringency and reliability that the planning now has is unprecedented in our view.
We can only hope that your successor, Raja Akram, will show a similar handwriting. We are excited to see the new strategy plan of Deutsche Bank, which will once again increase the return on equity of Deutsche Bank. Possibly, higher distributions to shareholders would be possible as well. Recently, the dividend increased to EUR 0.65, and together with the share buyback program of EUR 750 million, a total of 50% of the profits will be distributed. What are your plans for the years to come? In terms of personnel, the course has been properly set, with the early contract renewal of Mr. Sewing and Mr. Campelli, and appointment of Mr. Chromik as Chief Risk Officer, Raja Akram as CFO , and Laura Padovani as Chief Compliance Officer. Now, there is certainty in terms of planning on the top management. Especially by appointing Ms. Padovani to the Management Board, the significance of compliance and AFC is emphasized. Now, you show that you're serious about strengthening the internal controls. On the Supervisory Board, we'd like to thank Dr. Reimer and Ms. Walchersell for their valuable contributions, and we're pleased to welcome the new members, Ms. Roth and Mr. Moosmeyer, strengthening the skills in compliance and strategy. Ladies and gentlemen, we, the shareholders, we need to direct dialogue with the management. That's part of the shareholder culture, and it's essential for a good understanding of each other. Therefore, we welcome the announcement to have an in-person AGM again next year. It is good that with the approval for further virtual AGMs, you will review and explain every year whether an in-person AGM should take place, and the request and requirement to submit questions in advance has been eliminated.
You do not have to wait four years every time to hold an in-person AGM. Deutsche Bank is well-positioned in terms of ESG, and we welcome the decarbonization path for the individual sectors. Recently, aviation was added, and you stick to your targets. Please be a pioneer here and be one of the first DAX companies to implement your climate strategy and put it to a vote with the so-called say on climate at the AGM. The situation in the U.S. is different. How do you perceive these changes, and will this change your approach in terms of diversity policy, for example? With the sustainable business volume, you have shown gratifying growth. What were the reasons for this? In variable compensation for a good reason, we have seen a spread in the short-term component, which we welcome very much on the basis of the pay-on-performance principle.
Increasing transparency in the short-term compensation for the CEO and CFO is good. Please, when it comes to the long-term component, could you also give us an indication for the first year of the target achievement of the three-year period? You have strengthened the control environment and also made progress in money laundering prevention. It's a good sign that the mandate of the special monitor has expired and not been renewed. Now, I conclude by saying that we support all proposed motions of the management, and we wish the Management Board, the Supervisory Board, and all employees of Deutsche Bank great success and good commitment in implementing the growth strategy. Thank you very much.
Thank you, Mr. Thomae. Thank you very much for your contribution and your questions. The next speaker is Wolfgang Schäfer, who will speak on behalf of DSW.
Please keep ready. You will be going next. Please stick to the limit of 10 minutes. Mr. Schärfer, you're going to speak on behalf of DSW.
Yes, thank you very much. M y name is Wolfgang Schäfer. I'm a Managing Director at DSW for Rhineland-Palatinate and Saarland, not for Hesse, which is where you are based. First of all, I'd like to greet you all very warmly on behalf of Mr. Nieding, my colleague, who for the first time in 30 years is not attending Deutsche Bank's AGM. Instead, he's taking part in Fresenius Medical Care's AGM, which is being held at the same point in time. This is not because shareholder interest representation is particularly important there.
The AGM of the two Fresenius companies is held in person as a physical event and has been held as a physical event for two years now, and Mr. Nieding simply preferred to attend an in-person event. I can only call upon you to please ensure that next year, as announced, you will return to the more shareholder-friendly format, and this should not be a one-off event once every four years, as announced at the beginning. No, we are urging you to return to the format of physical meetings for good so that Deutsche Bank follows the trend that other companies have already started. A board television format, which is rid of the emotions, does not really offer us shareholders the opportunity to enter into dialogue with you and, above all, get an impression of how you are doing. After all, you are managing our assets.
Therefore, we will vote no regarding agenda item 14 unless you will specify that the authorization to hold virtual AGMs will only be used in exceptional cases. If an in-person AGM should be required because of a pandemic or a similar event that makes it impossible for shareholders and board members to attend an in-person meeting, your idea of using this opportunity only if the Supervisory Board agrees is unacceptable to us. Moreover, AGMs are very important because the shareholders are the sovereign for listed companies. Under agenda item 5, you are intending to elect EY GmbH & Co. KG, Wirtschaftsprüfungsgesellschaft Stuttgart as your electors. As you will know, EY has been sued for EUR 750,000 worth of damages on behalf of shareholders because of their role in the so-called Wirecard scandal. For two years, EY must not adopt any new mandates.
The Wambach report has found substantial reasons for these rulings. As long as EY will not contribute to sorting out the damage done and repay the damages, EY is certainly not acceptable as an auditor any longer. You told us earlier what the business results were for 2024 and the first quarter of 2025. The annual income for 2024 was EUR 5.3 billion, slightly declined year-on-year. However, this was driven by costs, costs which are not directly related to business operations. Adjusted for these costs, gratifyingly, income accounts for EUR 7.9 billion. Net interest income was EUR 13.065 billion. However, this is a slight decline year-on-year. The first quarter of 2025 has shown a solid performance in pre-tax profit with stable growth between 3% and 76% in all the various businesses.
You, Mr. Sewing pointed out that this is the case, and this shows a very stable performance. Thank you very much for that. A few questions. In the letter of the CEO to the shareholders, you, Mr. Sewing, are once again referring to the fact that for the period from 2021 to 2025, you will distribute a total of EUR 8 billion. This was also reflected in your speech today. Could you please tell us where you stand in this regard at this point in time? I would also like to know what happens if you look at the development of the individual business areas, because it is noticeable that income in traditional banking seems to be declining here, while income in Investment Bank and Asset Management seems to be increasing at double-digit rates. Please comment on this from your perspective. Is the traditional banking business still profitable?
Does it still have a future in our group? Next, I would like to know more about legacy costs and problems in your outlook. You state that you have basically got rid of considerable legacy burdens and positioned the bank even better. Postbank, one of the legacy features in particular, has shown that we are still adversely affected by this. Has Postbank now become the last and final legacy burden, or do we have to brace ourselves for further negative surprises? With regard to Rothschild, you are planning to achieve an increase of more than 10%. Your competitors are much more ambitious in this regard. They are talking about 15% or even 22% Rothschild. Do we have to consider this target as a pure precaution on your part, or do you believe the targets communicated by your peers are an illusion?
Next, I'd like to know more with regard to the CIR. You wanted to keep adjusted costs stable at the previous year's levels, and here at around 75%, we are still significantly higher than most of our competitors. Please comment and specify this in greater detail. Loan loss provisions account for EUR 471 million, an increase of 7% year-on-year. Our analysts had expected significantly lower figures here. One of the main reasons here is probably tariffs. In this context, please comment on the impact of the new Trump administration in the U.S. on our business. In Börsenzeitung of 30 April 2025, you are quoted as saying that you are not worried about the U.S. business. Nevertheless, I have a specific question. What are the specific and/or prospective effects that you expect from the realignment of U.S. policy?
What impact will this have on our future positioning, our investments, and the P&L of our organization? What impact will the currently weak dollar exchange rate have on our business? What are the specific impacts to be expected with regard to our shareholding DWS? How strongly are we being affected by the U.S. tariffs that have already been imposed or that are being threatened? What scenarios do you expect? What precautions have you taken to reduce the impact? How and to what extent will you align our future ESG strategy accordingly? Do you expect any disadvantages from the new ESG and DEY calibration in the U.S.? What added value does ESG measurably provide to our organization? To what extent are you feeling the effects of the slowdown in the EU economy on your business performance? What are the specific measures you're taking to maintain yield levels?
How do you assess the future interest rate policy of the ECB? Would it be possible that the ECB were to react to the economic downturn with further interest rate cuts? Falling stock market prices would be negative for our investment company, DWS. Please comment. The current lack of confidence in the economy is also hampering our advisory business with M&As and equity issuances. In April, we recorded a dramatic slowdown in this area, but at the same time, there's a backlog of transactions in both financing and M&A. What are your expectations in this regard for the current financial year and for the next financial year? Another question is as follows: What is your view of our Corporate Bank? If you take a look at Q1, there was growth of 3% delivered by our Corporate Bank. What are you expecting for the future? Next, interest income, net interest income.
What are your expectations, and are you expecting net interest income revenues to go down? Please tell us about the three biggest risks of digitalization and AI on our company. How would you consider our company in terms of mindset, digitalization? Where do we stand? Where do we want to go in terms of products, work process, and mindset? By way of conclusion, I'd like to thank all employees of Deutsche Bank for their hard work and their commitment. Without these employees, the bank would not have been able to deliver the success they have delivered. Thank you very much. I'm sorry for speaking longer than planned. Thank you very much. I'm looking forward to the answers.
Thank you very much, Mr. Schärfe. Best regards back to Mr. Nieding. Now I'd like to give the floor to Marcus Kienle from SDK. I'd like to ask Ms. Friederike Richter and Ms. Potts to get ready. Mr. Kienle, you've got the floor.
Dear Mr. Meinens, dear Mr. Sewing, ladies and gentlemen of the management, fellow shareholders. My name is Marcus Kienle. I'm a lawyer in Frankfurt am Main and a Member of the Board of the SDK Shareholders Association. Dear Mr. Sewing, once again, so-called special effects have ruined your performance and caused you to miss your profit targets. You have generated a meager 4.7% return on equity, and this even only on the so-called tangible equity. Thus, you have fallen significantly behind your competitor, Commerzbank. At least you got off to a very strong start into the first quarter 2025, which gives us hope for the current year. We would like to thank the employees for their performance in the past fiscal year. We kindly ask you to convey our thanks to the entire workforce.
Yes, you were able to meet the communicated target path when it comes to revenues. What good is that if the increased revenues regularly fail to translate into higher profits? This, although Investment Banking was considered a strong pillar in the entire strategy. Once again, what good is that if the increased revenues regularly fail to translate into higher profits? Because once again, there have been one-off charges. Here, even if you eliminate the one-off effects of non-operating costs, you will not achieve the previously communicated 8% return on equity. The special effects in the past year were not the reasons for failing to miss the profit targets. What are the main reasons why you did not achieve the 8% return on equity even after eliminating the special charges? You have recognized the special charge in connection with Postbank and the corporate other segment.
Now, to which segments are these special charges to be allocated in the proper way? How would the allocation of this item affect the return on equity of that segment? Looking at the development of the individual segments, then only the Corporate Bank performed well in the past financial year, even if not on the revenue level, but on the return level, thus earning the cost of capital of 9.9% reported last year. All other segments were again unable to earn the cost of capital, which is surprising in Investment Banking because there we saw a 15% increase of revenues. The capital cost reported last year, namely 9.9% for Corporate Bank, 10.6% for Investment Bank, 10.6% for Private Bank, and 10.9% for Asset Management. Now, are these capital costs still valid, or have they changed? If so, how?
While, based on the really good figures for the first quarter of 2025, two segments have earned the cost of capital reported in 2025, and Asset Management has almost earned it, the Private Bank is still lagging far behind. For a long time, the Private Bank has been really a reason of major concern of the bank. What are the main problems of the Private Bank? Now, based upon your current plans, will you earn the cost of capital in 2025 in each segment? If not, in which segments not? You state in your Annual Report that you are reviewing areas of your business activities with a view to a potential exit. You call this the so-called shareholder value add.
Which areas are affected by this review, and what criteria do you use to decide whether you should exit an area or not, or whether there are any other options? You have reduced the cost-income ratio target from below 62.5% to below 65% for 2025. What are the reasons for this? Do you maintain this reduced forecast in spite of the good first quarter with a good cost-income ratio of 61.2%? In recent years, you have always benefited from the high quality of your loan book. Nevertheless, loan loss provisions in commercial real estate and due to the transition effects from Postbank integration have increased. How many basis points of the loan loss provisions are attributable to commercial real estate, and how many to these transition effects? In this context, what do you understand by transition effects? Are these one-off effects only?
The path you have taken in terms of revenues seems to be the right one. All in all, it is imperative that you finally also get the one-off effects under control. Because, ladies and gentlemen, Mr. Sewing, from a certain point onwards, it does not matter why you miss your targets, whether it is due to weak earnings or due to any special charges. From a certain point onwards, Mr. Sewing, only the reported figures count and not the adjusted ones. Especially, of course, one has to ask whether everything you cover under non-operating costs is really non-operating. The environment is not really getting easier for you. An erratic U.S. president who issues suspense withdrawals and presidential orders at rocket speed, thereby shaking up the economic world order. Are you directly or indirectly affected by the U.S. tariffs policy? What effects does this have?
Be it also quantified as if possible. Does the U.S. tariff policy have a negative impact on loan loss provisions? If so, are certain industries or sectors affected in particular? Are you affected by the U.S. administration's anti-DEI order? A positive effect will come from the previous parliament's financing packages. Do you also expect these packages to stimulate your business? If so, in which segments and from when on? How long do you expect this stimulus to last? The takeover of Postbank is not only a burden on the bank at more or less regular intervals through special one-off effects, but also through respective requests for amendments to the agenda. Unfortunately, and here I do not agree with you, Mr. Winkeljohann, unfortunately, the bank's response to this is rather meaningless and does not address the applicant's actual or alleged factual assertions.
Reviewing the validity of these facts would be necessary for shareholders to be able to decide whether to approve such an amendment, a motion for amendment, or not. Why did the legal department rate the Postbank risk as the second largest risk in the first quarter of 2018? Why did this not subsequently lead to the formation of provisions? On the basis of what circumstances did the Higher Regional Court of Cologne in its ruling of 23 October 2024 come to the conclusion that the provisions of the German Securities Acquisition and Takeover Act had been violated deliberately? To be clear and to avoid any misunderstandings, these are not my allegations, but this is a specific wording from the motion for amendment for item 15. To what extent should the ruling in your favor be based on an incorrect presentation of facts by the bank?
What has become of the criminal charges brought against former board members in early 2018 on the suspicion of attempted serious trial fraud? Who prepared the expert opinions on the legal assessment of the transaction structure of the Postbank over and when and at which cost did it arise from that? How is the statement by the CEO, Mr. Sewing, to be understood that, I quote, once again, from the motion for amendment, that from now on provisions for legal risks will be formed consistently? End of quote. In what context was this statement made? Once again, you carry out the AGM in a sterile and emigrant distance virtual format and make the shareholder as the main person of the AGM, a marginal figure who you only connect live when they speak. Otherwise, the AGM lacks any interaction.
It is completely impossible for shareholders to exchange information with each other, although such communication could easily be facilitated via chat functions. With this one-off structure of the virtual AGM, the AGM loses its important function as an indicator of the sentiment that transmits a response of the shareholders as approval or disapproval. The procurement of quorums for the ad hoc motions becomes impossible, thus for shareholders. SDK classifies the virtual AGM as an emergency-only AGM and only supports such a format in the event of exogenous emergencies, such as a pandemic or ban on gatherings. The AGM format that best complies with the diverse preferences of shareholders and which we also prefer is the hybrid AGM.
Although we very much welcome the fact that you have decided to have an in-person AGM in 2026, if no exogenous emergency arises, this decision is missing for the further authorization period of the proposed resolution. In addition, the proposed resolution does not contain further detailed requirements that we consider essential for the acceptance of a virtual AGM format, such as the possibility of permanent interaction between shareholders, no resolutions on structural measures, and the tightening of the degree of fault for technical faults to simple negligence. Therefore, we will not be in favor of the proposed resolution. We also criticize the fact that you have not switched to an in-person AGM this year after five years of virtual AGMs.
After five years of virtual AGMs, why have you not found it appropriate to hold an in-person AGM, especially considering the fact that this would have underpinned your intention to hold an in-person AGM again at least every four years? Now, for many years, you've been proposing the Wirecard scandal-ridden auditor, EY, as the company's auditor. While that company continues to present itself as both a victim and an uncoverer of the biggest accounting scandal in post-war history and continues to demonstrate a dubious understanding of auditing with regard to balance confirmation of fiduciary accounts, the Wambach report also revealed other serious shortcomings. In the Deutsche Bank Group, the permanent reappointment takes on a special note since a subsidiary, namely DWS, asserts claims against EY.
Why have you been repeatedly proposing EY as auditor for years and have not already initiated an auditor change after the allegations became known in 2020 at the latest? How do you ensure that EY does not gain access to sensitive documents from and in connection with the lawsuit as part of the audit, and in particular about the litigation strategy? When and in which year will you carry out the external rotation of the auditor? Dear Mr. Sewing, I believe that the bank is on the right track, although there are many obstacles to be overcome. The task for the current year and the future will be not only to improve the business model by scaling up revenues with higher profits, but also to prevent the satisfactory operating performance from being spoiled by so-called special effects.
This will allow you to achieve the communicated targets in the future, not only based on adjusted figures, but also on reported ones. We wish you and your colleagues all the best for this, and I would like to thank you for your kind attention.
Thank you, Mr. Kienle. Thank you for your comments and your questions. Next, we will give the floor to Regine Richter from Urgewald in Friedrichen-Putz and Philipp Diers. Please keep ready. Ms. Richter, the floor is all yours. Thank you.
Mr. Sewing, Management Board, Supervisory Board, Shareholders' Finance, Regine Richter is a lady mention. I work for the Environmental and Human Rights Organization Urgewald, and I'm here as part of the Umbrella Organization for Critical Shareholders. We are particularly interested in the climate crisis. Therefore, I'm happy to hear from you, Mr. Sewing, that climate change will not be stopped by words.
We need deeds, but a lot of action will still be required. You talk about sustainable investments that you've made, but unfortunately, you're also financing a lot of fossil fuels. I've got a number of questions in this regard. First of all, regarding your lending policy. Last year again, you were involved in lending, bond issues, and IPOs for fossil fuel companies on an expansion course, including Venture Global, TotalEnergies, ExxonMobil. Expansion fossile energien is not vereinbar with expansion of fossil fuels; it is incompatible with climate goals. When can we expect the long-announced Oil and Gas policy? Will expansion play a role there, and in what form? Will you follow the example of French banks and make bond issuances for Oil and Gas companies conditional upon their completing their new Oil and Gas development projects? There are some terminating their new Oil and Gas development projects.
Next, the Net Zero Banking Alliance. There were a number of resignations at the beginning of this year. In April, the remaining members agreed on lower ambitions required of members. Instead of 1.5%, 1.5 degrees compatible Net Zero targets, only those who should be well above 2 degrees compatible are now required. This is intended to increase the flexibility of members to get their portfolios in order. Does this have an impact on your own targets? Do you see them as compatible with 1.5 degrees? How do you currently assess the importance of the NZBA? Do you have plans to keep the initiative alive? In your Annual Report, you address the threat of physical climate risks to your business, loans, defaults, due to floods, fires, droughts, storms, etc., and how this affects lending. Does this affect lending in certain regions? If so, in which?
Do you have any figures on the amount of loans defaulted due to natural disasters and the countries where this was the case? In the U.S., insurers, for example, are withdrawing from insurance in regions that are particularly susceptible to these natural disasters. Do you follow this? Are you taking this into account in your risk assessments? Are you drawing any conclusions? If so, which ones? I have a question regarding open pit metallurgical coal mines and other mines. In the framework of your internal transparency, are you checking whether loans, notes, etc., for companies involved in open pit mines or metallurgical mines? If so, how? In terms of thermal coal and metallurgical coal, are you checking whether companies or projects are in line with your policy?
Are you aware that Glencore operates four open pit metallurgical coal mines in the province of Alberta, which are open pit mines by Canadian definition, but are actually operated using the mountaintop removal method? You are excluding mountaintop removal methods. Nevertheless, in 2024, you provided financial services to the company Glencore. You will not be able to comment on individual projects. I'm aware of that, but generally, we are wondering whether you are also checking whether projects are involved in metallurgical coal mines in any form, and if so, what your conclusions are. My final question is: you want to protect nature and the environment, also the marine environment in the Philippines. There are a number of projects threatening biodiversity in the Philippines. Your subsidiary, DWS, has now excluded that company for ESG-related reasons. Thank you for your attention. I'm looking forward to your answers. Thank you.
Yes, thank you, Ms. Richter. Next, we have Ms. Potts from Facing Finance. I would ask Philippe Dias and Roberto Siotto to please keep ready. Ms. Potts, the floor is all yours.
Thank you very much, shareholders, members of the Board of Management and Supervisory Board. My name is Frederike Potts. I'm the Managing Director of Facing Finance. I would like to start with a weather prediction. In autumn 2024, Deutsche Bank adopted a resolution on deep sea mining, according to which direct funding of deep sea mining projects was supposed to be refrained from. That's a first step in the right direction, but this only affects two particular project rounds.
Therefore, my question is: are there any plans to extend this directive even further so that it does not only relate to two attributed deep sea projects, but general funding of many corporations which are involved in these activities? Apart from deep sea mining projects, there are also companies which are active as secondary companies, such as big mining companies or suppliers of equipment for deep sea mining. These companies, which are funded by Deutsche Bank, as you know, include Continental AG and Bau AG. Share investments also mean that DB is involved in deep sea mining companies such as DMA Group, China Aware Earth Resources and Technology, Nobel Corporation, Ackenanz Fund in Vahrenhagen, and Bosch in India.
For these particular corporations, Deutsche Bank could stipulate that it does not generate any general withdrawal corporate funding there, where the funds could be used for potential activities in deep sea mining. Therefore, my question is: does Deutsche Bank plan to refrain from not funding general companies, but rather appropriated funds? Apart from deep sea mining, I have a question concerning plastic. Deutsche Bank supports plastic companies also with one-way plastic and has not yet passed a regulation. For the consumer industry, retail, the fossil industry, and the petrochemical industry, a lot of plastics are being used. Has the Bank already started to develop a directive which deems plastic materials? If so, when can the shareholders' directive be approved? If that is not the case, why does the Bank not consider it to be important to address the question of plastics being targeted?
Many companies have called for a contract to abolish financial contamination in general. It is a contract on the abolishment of financial pollution. Deutsche Bank is not on site. Is it planning to sign this agreement? If not, why not? Not only with regards to environmental effects, but also human rights. The funding activities of the banks are predominantly responsible. Therefore, I would like to ask you a couple of questions concerning arms industries. In the year 2020, Deutsche Bank was involved in a syndicated loan of $990 million for the Hansard company shortly after Hansard delivered artillery tracking devices to the UAE and Qatar. Both states are involved in the Greek and Yemen war, one of the most fatal conflicts of this time, and therefore they use the technology of Hansard.
In the same year, Hansard delivered artillery location radars to Qatar via MSC, which has very close ties to the ruling family in Qatar. According to a media report, there might also have been cases of corruption, although the internal compliance department of Hansard expressed warnings. Nevertheless, the deal was made. My question was: the exports to Saudi Arabia, Qatar, and the United Arab Emirates, were that part of the discussions when you spoke to Hansard and spoke about the landing of deep sea in 2020? In 2024, Deutsche Bank was also involved in a consolidated loan to EUR 700. It had delivered radar systems for the vessels to war vessels in Saudi Arabia, a blockade which has led to serious problems and problems in Yemen. After the discussions about this syndicated loan, have these activities also been part of the discussions?
There are also lending activities going on with companies that infringe upon human rights. You also provide funding for people who use cluster bombs or ABC weapons. Do you intend to refrain from making these funds available in the future or limit yourself to typical loans? I would also like to know which conflicts and arms the Deutsche Bank considers to be controversial. Are these also white phosphorus laser bombs or fire bombs? So far, the Deutsche Bank has funded companies which do not only use measures for defending the national army, but also other activities. How does the Deutsche Bank deal with that? What does the Deutsche Bank think about the idea of only attributing and attributing the world loans to the arms companies where the funds can only be used for European funds and no general corporate funds will be used?
How about the idea of the defense funds where the use of proceeds is tied to the production for the equipment of European arms and so on? To the last topic, new coal-fired pipelines are not going to be supported any longer, but general corporate loans are continuously being granted. Also, companies with more than 50% of coal earnings up until 2025 get received funding up until 2025 in OECD countries. Therefore, the directive is less strict than it is at UniCredit or Commerzbank, but much weaker than it is for their own DWS subsidiary because it includes companies who depend on coal or generate more than 25% of the proceeds with coal extraction. Do you intend to adjust your directive to the DWS? If not, why is it so much less ambitious than the DWS's one?
Does the German Bank not intend to compete with and become compatible with DWS? The decarbonizations have been defined for particular sectors such as oil, gas, energy production, automotive activities, in order to reduce which account for 50% of the emissions. Are there any further decarbonization goals for other sectors such as chemistry, agri-technical, or aluminum? If so, when will this be the case? The Deutsche Bank has particular fracking activities, oil sand in the Arctic which are going to be excluded from being funded, but oil shale and fracking in most countries receive funds and also conventional Oil and Gas extraction mechanisms. Oil shale and shale, can this be excluded? If not, why can these international extraction technologies still be supported? Last question. Does the Deutsche Bank have a decarbonization goal of 23% of a reduction of CO2 between 2030 compared to 2021?
This is not very ambitious. What's the current state of play? Why does Deutsche Bank determine the decarbonization goal for the sector of Oil and Gas which is much less ambitious than the goals in other sectors? Why don't you want to bring about a CO2 reduction in the Oil and Gas sector much more rapidly? Thank you very much. I'm looking forward to your answers.
Thank you very much, Mrs. Potts, for your contributions and questions. The next speaker is Philippe Dias, and I would like to ask Roberto Siotto and Max Bernhard Gutbrod to get ready. Mr. Dias, the floor is yours. Vielen Dank.
Thank you so much. D ear members of the Board, Supervisory Board, shareholders. My n ame is Philippe Dias. I'm a Freelancer. I'm working in the field of Sustainable Financing.
I'm here based on the visitation of the critical shareholders. Some of you might have seen me already because I made a contribution on the 11th of September by DWS. Today, I would like to focus on two particular topics and ask very specific questions. The first one deals with the debate on the efforts that were made and the use of sustainability reporting activities. In the public debate, the European reporting standards, the European sustainability reporting standards, CSRD, are considered to be monsters and dealing too much rushed take because of an allegedly too high bureaucratic effort to be made. You can see it that way, but only if you lose sight of the entire context. According to the information from Accountancy Europe, the review of financial information is much more demanding and therefore more cost-efficient than the information related to sustainability.
This also relates to the consideration of IFRS. According to a survey studied amongst 1,000 companies, 61% of the corporations are happy or very happy with their reporting standards as they are today. Only 17% explicitly raised concerns about them. The bureaucratic cost index after Statistical Federal Office compared to 2012 is much lower. The introduction of the Corporate Sustainability Reporting Directive and the additional standards to go along with that have only led to a significant increase in cases. Against this backdrop, I would like to know what's the attitude of Deutsche Bank concerning the current regulatory developments at the European level, in particular with a view to the so-called omnibus procedure, which is an integral part and parcel of the Corporate Sustainability Reporting Directive provisions and the reporting standards that go along with that, which have to be revised.
The EU Commission plans on a sector-specific basis to do completely away with these standards. Originally, they were used to come up with impact analysis for particular sectors, but they want to reduce the red tape and the efforts. This would also help to improve the data quality for capital markets. My first question to Deutsche Bank is: What's your take on that? How do you view the proposal submitted by the European Union to do away with sector-specific standards? The concept of dual materiality got under tremendous pressure. Dual materiality is to ensure that companies inform us about what's financially relevant for them and what has only negative repercussions on human beings and nature without considering financial impacts.
This differentiation is based on a rather difficult concept, especially when you take into account the time horizon, because the more you try to look into the future on a long-term basis, the more important issues come such as deforestation or plastic combination. The risk perspective, the financial relevance that is for Deutsche Bank, depends very much on the short-term orientation of the capital markets. This means it cannot look into the future that much for decades. Deutsche Bank has lended loans to many companies, and therefore it's not enough to focus on the financial relevance only, which is too short-sighted. My second question to Deutsche Bank is very much in line with that. Does Deutsche Bank explicitly opt in favor of the principle of dual materiality, including the impact assessment in the European sustainability reporting standards?
By way of conclusion concerning the reports, Deutsche Bank is already creating a voluntary report based on the aforementioned reporting standards of the CSRD standards, although no statutory obligations have already been introduced in Germany. My third question: What are the specific advantages that Deutsche Bank sees in the early application of the European sustainability reporting standards for internal control, as well as for the impact that this might have to the outside world? I would like to conclude by referring to the second topic. This relates to the capital market activities of Deutsche Bank in context with the Middle East conflict. According to Market Reform on the 20th of 2025, two days ago, that is, Deutsche Bank has contributed to Elbit System, which is an Israeli arms company, and reduced it by 25%.
Elbit Systems last year had a total increase in profit due to increasing Israeli defense spending. My questions are the following: Why has Deutsche Bank invested into Elbit Systems? Because Mr. Ackermann said in 2010, "We are out." What were the most important decision-making reasons for the reduction of participation in Elbit Systems? Was there an ESG risk control or other strategic ideas? I would like to get some more details on this particular topic. Third question: How does Deutsche Bank evaluate the human rights and reputational-related risk that might emanate from further and additional investments into the commons, such as Elbit Systems, especially with a view to a potential future sentence by the International Court of Justice on potential human rights violations, human violations of international law by Israel?
The last question is: You have in business investment strategies for the case that the ICC might come to the conclusion that the activities of the Israeli are similar to a genocide, if that's not the case. If not, thanks very much for your attention, and I'm looking forward to your answers.
Thank you very much, Mr. Dias, for your questions. The next speaker is Roberto Siotto, and I would like to ask Max Bernhard Gutbrod and Daniel Michael Werner to stand ready. Mr. Siotto, the floor is yours.
Hello, ladies and gentlemen, [audio distortion] Mr. Winkeljohann, thanks very much for giving me the opportunity to speak. My name is Roberto Siotto. I represent my own shares. The current business development is very positive. The share price too has moved upwards 100% plus since the middle of 2022. I am very good.
Thanks very much, and congrats to all our staff members. Thanks to the Board of Management, the Supervisory Board, and all the persons involved. This success should not be endangered by electing the wrong auditor. Therefore, once again, draw your attention to my counterproposals. They can be found on the website of Deutsche Bank. Onto my proposals. EY GmbH & Co. KG Auditing Company should not be elected as the final auditor or the auditor for the fiscal year 2025 and other years because, in addition to that, the EY GmbH & Co. KG should not be elected to look at the limited review of the interim report on the 30th of June 2025 or to be elected as an auditor to confirm the sustainability reporting for fiscal 2025 for Deutsche Bank. What are the reasons for this counterproposal? EY GmbH & Co.
KG is partly responsible for the so-called Wirecard scandal. If it was elected by the Deutsche Bank, the company would be brought into connection with one of the biggest scandals in German history ever in connection with this auditor. Is the Deutsche Bank aware of the potential negative consequences that this might have as a consequence of close cooperation? The counterproposals and the discussions at the AGM of the previous speakers and the reports in the media have to be considered in this context. The special investigator Wambach came up with a report on EY in connection with Wirecard, and as a consequence of that, the Deutsche Bank should draw its conclusions.
Why do you still continue to stick to EY as the auditor, especially against the backdrop of the fact that after the events surrounding Wirecard in the year 2020 during the AGM in 2021, a massive criticism was raised? As far as I know, the back then Chairman of the Supervisory Board, Paul Lachner, on the 27th of May 2021, informed us about the fact that the bank in the following year, which would have been 2022, would shift from one auditor to another, at least that was being considered. The reason back then was that the investigation on the Wirecard scandal would still linger on. Furthermore, it was mentioned in this context that the Supervisory Board of Deutsche Bank decided for the year 2022 to have a new tender for the auditing position. Therefore, the bank wanted to keep all its options open.
Now, since 2020, EY is checking the balances of Deutsche Bank, but a lot of facts have been presented on EY, and the evaluation is not really positive. My question is: Why did not we get some more information on this particular case back then? The findings, are they not enough for the Supervisory Board and the Board of Management to turn away from EY finally? The final investigation of the Wirecard scandal is still awaiting, but EY is not willing to take on responsibility. Many legal measures are being taken to restructure the company at EY and to minimize the long-term liability capital obligations or to cut them down to zero. Responsible action looks quite differently in connection with the slow investigation on the part of the German cases.
EY may turn out to be successful, and the German bank would have to pay for the costs out of its own pockets. Ladies and gentlemen, the Deutsche Bank, in the true sense of the word, with the DWS company, which is part of the group, the asset managers of DWS trusted the audit results of EY. As a consequence of the collapse and bankruptcy of EY, losses might amount to a three-digit amount allegedly. Therefore, DWS claimed damages from EY, as far as I read in the press. Therefore, these areas are supposed to be audited by the French auditor, Mazars. My question to you is, Mrs. Padovani, Mr. Siering, is it correct that some of the DWS subsidiaries of the German press have taken legal action against EY? How high are the damages claimed by the subsidiaries?
Should EY be elected by EY, or should DWS be excluded? If an amicable solution can be found between DWS and EY and Deutsche Bank, there would be an additional financial burden that would have to be paid and be beneficial to the financial results of 2025. Mr. Siering, Mr. von Moltke, have you taken this particular aspect into account before thinking about electing EY? How high would this financial effect be? Or have you already issued a letter of intent or a comparable declaration between Deutsche Bank or DWS in order to mitigate this particular problem, reach a settlement? Apart from the described conditions at DWS, the Board of Management and Supervisory Board proposed to the AGM to elect EY again. Shouldn't we put this process to an ending, or wouldn't the time have come now to shift to another auditor?
EY is suffering from bad damage more and more, and this has major repercussions in the market. Also, the supervisory authorities APAS imposed a ban on new contracts to be signed by EY, but the German bank is still thinking about it after the conclusion of the capital model case. With whichever result, EY will get more and more into the headlines. Beiersdorf, Deutsche Telekom, Commerzbank, Siemens, and Zalando, why did they separate from EY? Are other DAX-listed companies much better informed than Deutsche Bank, I wonder? My question to you is, Mr. Siering, other listed companies, do they live corporate governance in a different fashion compared to Deutsche Bank? This is what an expert said, and I would like to quote. The Wirecard case constitutes complete and utter failure of EY.
I think EY is completely damaged with its reputation, so therefore EY is no longer sufficiently competent to carry out the audit of the balance sheets and financial statements of big corporations such as Deutsche Bank. Of quotations, let me ask you once again, how do you evaluate the competence of EY? Mr. Siering, the risk for Deutsche Bank, is not it far too high if we continue to cooperate with EY? Despite several requests on the part of the Bavarian Supreme Court, EY is not making any efforts whatsoever in order to reach a settlement or amicable solution with the parties involved in the process, because this would also be beneficial to the subsidiary DWS or its subsidiaries. We would all benefit from that. What has happened? The opposite was the case.
In January, February 2024, EY carried out a particular legal transformation, and therefore the creditors have no longer access to their assets. The legal transformation also led to the fact that the liable capital of EY, EUR 2 million in total, are the amounts for which EY can be held liable, as written in the commercial case. This would lead to major problems at Deutsche Bank. This is no longer appropriate as liable capital because EY would not be able to compensate for maybe existing damages, and this would also be detrimental to Deutsche Bank. Mrs. Padovani, this is something that you should be concerned about as well, and I hope that we will look at this matter in greater detail. My question is, in the beginning of 2024, the legal transformation at EY was this checked again when you thought about electing this auditor once again?
One additional question, if that was so, how high do you estimate your own risk to be due to the changed liability capital amounts at EY? During the negotiations for the tender for EY, was a price discount to be considered due to the current conditions? If not, why doesn't Deutsche Bank elect another auditor, which in a case of liability could cover the costs more appropriately? Thanks very much. I'm looking forward to your answers. I'd also like to refer to the COFRIS Government Code in connection with the German Stockholders on your website. It says Deutsche Bank committed itself to the Worldwide Corporate Governance Code, which is based on international standards and legal provisions. For that matter, a group-wide corporate governance function was introduced with a mandate of complying with these international standards, implementing them, and monitoring the system.
These functions support a cross-sectional implementation of the rules and regulations. It checks on the implementation in the Deutsche Bank Group and thus exerts a group-wide control function. What is more is corporate governance addresses the corporate governance issues in Deutsche Bank. It develops and guarantees efficient corporate governance structures and controls, which are suitable to support efficient decision-making processes and mitigate the risks and delegate responsibility to us based on consistent areas of responsibilities and competencies. We put a very strong focus on clear organizational structures along the core competencies and good corporate governance structures. End of quotation. This is what I read on your website. If you really take this seriously and you act responsibly and compassionately, then the conclusion can only be that Deutsche Bank, to protect its good reputation and also to protect the shareholders, is looking for a new auditor. Here my question again, Mrs. Padovani, Mr. Siering, what about the goals of the corporate governance structures in Deutsche Bank? Are they in line with the mandate of EY? Was the possible mandate to EY previously agreed with the Corporate Governance Department? What was the assessment of the corporate governance colleagues in your company? Thank you for these answers as well.
Ladies and gentlemen, Mr. Siering, ladies and gentlemen in the Management Board and the Supervisory Board, I would like to thank you again for the excellent work. Compliments for the good developments. Don't risk your success by choosing the wrong partners. Do use a serious and good auditor. Change your auditor now, or as Mrs. Padovani said in the beginning, you have to do the right thing and not only the things that are allowed. Thank you for your attention.
Okay, thank you very much, Mr. Siotto.
We now have three more speakers in the first round. First, we will have Mr. [Max Bernhard Gutbrod], and I would like to ask Mr. Werner and Mr. Kühn to get ready. Mr. Gutbrod, you have the floor.
Thank you very much or giving me the floor. I think that these discussions are very impressive, and I especially think that it's important and good to discuss the position of Deutsche Bank in the world. The creation of a European champion is something that is not only good from a political point of view, but also from an economic point of view for the shareholders. Similar to Mr. Sturme, I would say that if you take a look at the economic plans, you can still increase your efforts and use disruptions, and you can talk about raising ambitions.
This does not necessarily have to be a takeover or a merger, but you should have targets which make it possible to reach the size that we want to reach. There is a second element, which I would like to talk about in greater length right now, where you have the impression that it's not so big, but that it's about the smaller work every day. The general direction is good, but the implementation is not very convincing. My first example here is the sector goal. I took a look at the compensation report on page 21 of the German version, and I don't understand at all what is meant. If you take a look at the English version, it's a little clearer, so that it says that Deutsche Bank is selecting sectors and describes goals.
If you follow the discussions, especially regarding the critical shareholders and the shareholders' representatives, it was said that there is a different understanding of what is meant, why these sectors were selected, which goals these sectors are to achieve, and especially what Deutsche Bank should do in this context. Here, it's the encouragement to take a look at what you already did and to communicate better what you want to do in the future. The same is true for a report that I think is great, a pioneering role, a report about the emissions in financed homes in Germany, how much they reduced. This is a report of 2023.
You put it on your website, but it's not clear how often you will redraft it, and it's also not clear whether you think that this is a standard which you would like to use in the future and that what you want to do in the future. This brings me to a major point, which I think is very confusing, and I would like to come back to what the critical shareholders already said. Everybody who is dealing with this topic knows about the problems of the Net Zero Alliance, and it's good that Mr. Siering and Deutsche Bank are quoted over and over again about the role of sustainability. This was also mentioned in Mr. Siering's report, but it's not so good to see that Deutsche Bank, as far as I know, has not made a single statement on the question whether the Net Zero Alliance will be the instrument for the future or whether you need different tools and instruments. If so, what are the problems the Net Zero Alliance pose in the United States, what should be done, and what other initiatives could do? I think a European champion that also has people like Mr. Gabriel and others in the Supervisory Board should be expected to do. I also think it's confusing and not very satisfactory to see your reaction to problems of the past. As a goal in the compensation report, it says that you want to promote control improvements and the mitigation of past problems.
You should not talk about mitigation, but you should talk about not causing any problems in the future any longer. I think the statements regarding EY that we just heard are also relevant and also should be thought about regarding the vote, but this also points to a larger problem. Everybody of us knows that the oligopoly of the auditors is a major problem. We already saw this with Arthur Andersen, and a European champion should proactively look for a solution to these problems and also think about alternative proposals and work accordingly and develop alternatives. I think that what happened at the Postbank takeover was also quite worrying, also what was communicated last year. Deutsche Bank was affected very strongly, and this is something that you could also see reflected in the stock price of Deutsche Bank and DWS.
The problem that we are seeing here is similar to the problem that we saw in the Breuer lawsuit, that you get advice by expensive law firms, but you do not really assess what the legislation will say at the end of the day. That legislation does not consider the details that Deutsche Bank sees as very important, but takes a look at the general picture and then comes to a different conclusion. What is surprising in this, and this is also satisfactory, is that the compensation report, without going into the details, now shows that Deutsche Bank drew conclusions from this. If you take a look at the reallocation of tasks in the Board of Management and the new compensation structure and ask how this will be avoided in the future, then you can only be confused.
It's good that you deal with risks, that you strengthen the risk area, but why don't you have any lawyer in the Board of Management who would work to mitigate these problems? This is something that I do not understand. As a final point that shows the confusing and not proactive activities of Deutsche Bank in this case, is to choose Ernst & Young as a sustainability auditor for activities, although there is no law on this yet. Why can't you tell the legislator that the idea to appoint these auditors is not understandable? I cannot really understand how you can discuss and negotiate things with the auditor if you're not clear about what is necessary in terms of the audit. This also needs to be considered in the costs of an auditor who will be appointed.
Also, because in a further Annual General Meeting, say on climate, should also be discussed as an important point for Deutsche Bank. I think it's really great that in this AGM, unlike in other AGMs this year, we can finally have a good discussion about the important topics. I'm looking forward to your answers, and thank you for your attention.
Okay, thank you very much, Mr. Gutbrodt. Now we'll move to the last two speakers in this block. First, we'll listen to Daniel Michael Werner and then to Claudio Kühn. Mr. Werner, you have the floor.
Yes, hello, Mr. Winkeljohann. My name is Daniel Werner, and I'm a shareholder of Deutsche Bank and Postbank, and I have a number of topics I would like to communicate to you. Let me get started right away.
An important topic for me is the emission of micro and nanoplastics, and this is a topic which has already been mentioned. Probably everybody knows that nanoplastics come from plastics materials, from tires and others, and the danger is that it crosses the brain blood barrier, and the results in research are very worrying. I am asking myself why it is only published today. The risks are cancer, strokes, dementia, and this is a problem that will probably accompany us in the years to come together with climate change. Now I have a few questions on this. Everybody is affected by this. People who live on unemployment benefits and also the rich parts of the population. It is necessary for limit values to be defined, and the responsibility is to be found with producing companies.
Now my questions to Deutsche Bank: What types of precautions do you take to protect citizens and the environment? Do you already have measurements regarding the emissions at the workplace? Does Deutsche Bank, regarding the fleet of vehicles, think about whether you could reduce the tire abrasions or change something in the brake systems? Yesterday, we had the SGL Carbon Annual General Meeting. They are producing systems which do not have any abrasion of plastics components. I was a little bit shocked by the first image film when the Tonys were mentioned. Obviously, these are toys for children made from plastics. My question is, did you ever check in how far there are plastics emissions, particulate emissions in the children's room? Also, PFAS would be very interesting here also. Softness, and it is good for children to play with toys, but they should not be poisoned in this.
Also, the BASF experience might be interesting. Does Deutsche Bank invest into research projects, startups that want to replace plastics? Are plastics producing or processing companies also part of sustainability funds? What possibilities does Deutsche Bank have in order to support and promote research? This about plastics. Second point, AI. The hope for increased efficiency by the simplified processes are to be compared with higher mistakes when you use AI. In addition to AI, you also need highly educated control instances. The problem is something that you saw in the image film, not in the first one, not the one that was too pathetic, but the previous films that you sent before the Annual General Meeting were very interesting, and it was a topic that was already mentioned. I have the following questions.
To what extent will AI, and I'm looking into concrete examples, in how far do you already use AI? What is your experience regarding efficiency, cost savings, and time savings? How much money will AI save at Deutsche Bank? What do you think about the risks of AI regarding cyberattacks, but also wrong processing of complex processes, black box effects, where you can no longer interfere from the outside? I would like to know what could happen with stock exchange transactions. Could wrong coding of artificial intelligence cause crashes? Cyberattacks, I think here you are at risk. Digitization means that people who are ill, sorry, I have to stop the phone, that people who are ill meaning might attack you. What about the representation in ethics committees of your company regarding AI? Is AI involved in the drafting of your Annual Report?
Internal communication, do you use commercial chat programs, WhatsApp, Instagram, Facebook, the famous and infamous X, for example? Perhaps you train MITAS AI, even if you do not want to do this. If this is not allowed, will you sanction the forbidden use of these programs? What do the employees really do? AI in customer business, is it really guaranteed that at some point in time you will talk to a person again if you are sitting on the phone, talk to a bot, that you are not driven crazy here? Is there always the possibility to get back to a human being? What does Deutsche Bank think about the development of AI in the future? Are you involved in research projects, and are you investing into research projects?
Electrification, we already saw the risks when we had the major blackout in Spain, that this suddenly happens for a large region and for a longer period of time. What is the worst-case scenario for Deutsche Bank? How would Deutsche Bank be affected by a nationwide and long-standing blackout? Cryptocurrencies, Bitcoin and others are made speculation objects, are used by cybercriminals, and they also use a lot of energy and land. It's not sustainable. What is the use of cryptocurrencies for normal consumers? What is the cost-benefit assessment by Deutsche Bank? Are cryptocurrencies also part of sustainability funds? In my view, they should not be part of sustainability funds. Third point, strategy in the online branch network. First of all, thank you very much for the improvements at Postbank compared to the chaos that we saw one or two years ago.
It was really a major leap forward, and we now have smooth processes again. Thank you very much. I'm sure that this required a lot of work, and thumbs up for that. Supply with cash. Postbank in its history was always a bank for the small people, easy to reach, good and cheap. Now, ethical responsibility of Deutsche Bank. Do you want to keep up this standard, or do you think that the topic will solve itself because the older people will die out? Does Deutsche Bank really commit itself to customer business and cash? I would like to give you an example of my own environment. I'm living in a large borough of a major city in Germany, in Western Germany. There are many building operations going on, but what about the supply with cash by the cash group?
First of all, the branch of Deutsche Bank was closed in our area. Then the ATM was also dismantled. The possibility to then get cash from Postbank was dismantled, and I was recommended to go to the Shell filling station, but I do not like cars, and for me, it was very difficult. I never did this, actually, and I found the possibility to get cash somewhere else. Now you are hearing that the cooperation with Shell is also to be stopped. Will I ever get cash in my area? It is not possible that you have to go to a supermarket and buy for a certain amount of money in order to get access to cash. What about inclusion regarding online banking? I tried to think about what would happen for people who have sight impairments.
They normally should use telephone banking if they no longer have a branch in their environment, and this, of course, means higher costs for them. From my point of view, this is by no means inclusive, but this is excluding people who have problems with the technology and increasing technalization. And C1 works quite well at Postbank, and do you think of also introducing this tool at Deutsche Bank, which makes you independent of mobile phone and Apple and Google? I think this is quite a practical thing. The next point, I'm sorry, there is no restriction of the speaking time yet, Mr. Winkeljohann. Then the engagement in arms production. I read that Deutsche Bank is now throwing away all ideas about pacifism. What does it mean? You also want to benefit from the armament package, investments in arms companies. In how far does this happen?
What can we expect? Is it arms funds, or is it a sale of more bonds? Is this ethically responsible? Here, I would like to have some more information, and I would like to appeal to you, please go for pacifism and love of peace. We see that more and more of the branches are stopped. I will be quite brief here. The control of technological and economic development has a decisive function in society. If the control is reduced, it might have impacts on the weaker parts of our society. Does Deutsche Bank say that state controls and regulation are necessary for a society which wants to take responsibility for our society living together? The documentation on CumEx business showed that necessary controls by the state are indispensable. Has Deutsche Bank ever been involved in CumEx or CumCum businesses?
Could you provide a statement on this? The sixth point, and this is now repeating what we heard before, EY, it's a disaster. Why are you sticking to this unfortunate company? This is... Dark Shadow, please get away from this.
Mr. Werner, you have been talking for 12 minutes now. For fairness reasons, it would be good if you now came close to come to a close.
I will. Mr. Winkeljohann, I also want to talk about the AGM in presence. It's great that you want to have a face-to-face meeting again next year, but I hope it will be in the years to follow as well. Bayer is an example where you just read out texts from the teleprompter. It was a disaster, and you probably also saw this. This is something that we don't want.
We had some problems in the beginning, but it was more or less all right. I think that the face-to-face AGM is really giving you the proof that a company is self-confident, that the people can have a good exchange with the shareholders. Mr. Sewing, Mr. Wynaendts, I'm looking forward to a very vivid, personal, and trust-inspiring answering of my questions. By the way, Mr. Johann, Mr. Winkeljohann, I don't know whether you know that your reactions are visible on screen. Sometimes it's quite funny to see, but nevertheless, thank you very much, and danke vielmals. I'm looking forward to the answers.
Thank you, Mr. Werner. That brings us to the last speaker, Mr. Kühn. The floor is yours, Mr. Kühn.
Thank you very much. I have two questions regarding the report 2024.
First of all, please explain to what extent repo and reverse repo business is calculated. Do we have central counterparties here as part of a bilateral agreement and due to specific internal regulations? Secondly, if we have repo and reverse, when do we have the maturity? If we have short sales, how is that calculated and offset? Which IFRS standard allows this procedure if that is the case? This question is based on your report of 2024 that 93%. [Foreign language]. In your balance sheet on page 496, Annex 12, you say EUR 88.7 billion are reverse repos. If total netting of reverse repos were accountable, then the gross exposure would be at 3.45x of that amount.
I think it can be assumed that the actual value is between the 2.2 fold of diverse repos as a majority and the 3.45x of that. Therefore, we have serious concerns about the true amount of the risk shown in the Annual Report and its transparency. Thank you very much.
Thank you very much, Mr. Kühn. With that, I would like to thank the speakers of that first round of questions. Thanks for your questions and contributions. We are in the process of getting the answers ready, and we will start answering the questions right now. Ladies and gentlemen, it is now almost one o'clock, and we still have got a whole range of speakers on our list.
Therefore, in the interest of fair treatment for all shareholders who want to take the floor today and in order to ensure proper implementation of the AGM, in accordance with our articles of association, I would like to set the speaking time to 10 minutes for the next round of questions. Those who still wish to take the floor are requested to have their names put on the speaker's list very soon, because very soon I will then also announce that I will close the speaker's list. Of course, then finally, I will also do so. Ladies and gentlemen, we have already the first couple of questions available, and I'd like to hand over to our members of the Management Board. Before doing so, however, I would already like to let you know who will be the first speakers in the next session.
That's one, first of all, John Beard, Ms. Louise Wagner, Ms. Matthias Gebler, Ms. Annika Rittmann, Mr. Tilman Massa, and Ms. Petra Lieselotte Georg. First of all, I'll ask you to get ready, and then you will see the pop-up window, and then you will be admitted to the waiting room. Now I'd like to ask our members of the Management Board to provide the first answers. Now we've got a couple of topics that we have identified, which are relevant for a large group of our shareholders, and therefore we will cluster individual questions by providing a comprehensive statement on these matters, and we hope that we will provide a good basis to our shareholders for further executing their shareholder rights and obligations. I'd like to ask Mr. Sewing to take the floor.
He will first make some general remarks on sustainability, and then we'll continue with the next questions.
Thanks, Norbert. Shareholders, ladies and gentlemen, today again we have received numerous questions on our sustainability questions and sustainability activities. Therefore, let me explain our vision and the specific strategic steps to you in more detail. As a global financial institution and the largest bank on its home market, Deutsche Bank considers it part of its ongoing obligation to support the change towards a more sustainable economy and society, and also to accelerate this process. The news and political debates of the last couple of months, however, have resulted in a high degree of uncertainty. Therefore, it is all the more important to maintain a clear attitude on this strategic matter and to clearly act with clear guidance.
Of course, possible changes of laws and regulations, that's something we as Deutsche Bank have to comply with in all jurisdictions. If the law changes in Europe, the U.S., or elsewhere, then we may have to adapt our actions as well. All in all, the message is clear. Since the middle of 2019, Deutsche Bank has made sustainability part of its management priority and thus part and parcel of our strategy. We remain obliged and true to our sustainability targets, and we have been quite successful in doing so. As I've stated before, last year, with all leading ESG rating agencies, we were able to improve our rating, and that means within the group of leading financial institutes, we are a well-established member there. Sustainability is the most important lever to promote the necessary change.
Until the first quarter of this year, an accumulated business volume of EUR 389 billion of sustainable finance and investment, that is ESG investment volumes, has been reached. This figure alone shows that the sustainable transformation of our clients is making progress. In the past year, we have also seen this momentum. As I have said before, a business volume of EUR 93 billion in 2024, that was the second best result in this regard since 2020. In spite of these positive developments, though, it is a challenge to make sure that we reach the targeted EUR 500 billion by the end of 2025. We are proud of the volume that we have achieved so far, and thus having played our part to the transformation of the economy, and we see that the enormous funding demand of the German government could cause further special effects.
Another pillar of our strategy is our voluntary commitment to make sure that by the year 2050, net zero CO2 emissions in our own operations and with our credit portfolios and our bond emissions are achieved. That means we not only live up to our responsibility towards society, but we rather also consider this an opportunity to support our customers towards a more climate-friendly and resource-light business model. Furthermore, managing our climate environmental risks is always at the focus of the European regulators as well, and we are in close interaction with these regulators. We have now defined target paths with interim targets for until 2030 for the most carbon-intensive sectors in our corporate credit book. This includes Oil and Gas, power generation, the automotive industry, steel, coal mining, cement, shipping, and recently, civil aviation was added as another sector.
The big strategic significance of this climate environmental risk management, ladies and gentlemen, also manifests itself in the fact that part of our variable Management Board compensation, namely in the long-term award, is linked to us meeting our own target paths for the reduced emissions. The reduction of our CO2 emissions due to the economic activities which we fund with our Corporate loans has been covered in our Annual Report of this year as of page 308. Now, three years ago, we started publishing net zero sector targets, and since then, we've made significant progress in decarbonizing our credit portfolio. This has, of course, been supported by active portfolio management. Only the cement industry is slightly above the base value because the easily available transformation technologies are still limited in scope. Due to the low credit exposure in this sector, we can hardly manage that part actively.
What matters is that we are amongst those banks which have set itself absolute CO2 targets for Oil and Gas and carbon, rather than intensity targets. Furthermore, transactions in CO2-intensive sectors are subject to an extended review in accordance with our policy. This also contributes to us using our CO2 budgets in the most responsible manner. We have already stressed in the past that we expect the scope 3 funded emissions in the sectors Oil and Gas and carbon mining remain volatile. This is mainly due to the reasons which are beyond the bank's control. In the future, we will continue to emphasize this, no matter whether these external factors have a positive or negative impact onto the amount of funded emissions.
Emissions in our own operations or the supply chain, which are scopes 1 and 2, and reported scope 3 emissions of categories 1 to 14 are going to be reduced massively by the bank. By 2030, it's going to be 46% less than the reference value of 2019. Emissions in our own operations, that is, scope 1 and 2 emissions, have been reduced by 79% since 2019. With scope 3, categories 1 and 14, we've also improved further, not only in terms of the carbon footprint, but also in terms of the methodology. The reference value of 2019, however, is something which we will only be able to update in the second half of this year. When it comes to our policies and frameworks, we're also making good progress. The framework for sustainable funding has been updated and rendered in greater detail.
The green instruments framework has also been extended to the sustainability framework by social criteria. Thus, the first social bond at the amount of EUR 500 million was issued with an order book of EUR 6.6 billion. Furthermore, we strengthened our ocean protection policies as part of the Back Blue Initiative. In 2023, we intensified our carbon policies, we wanted to update our Oil and Gas policy in due time. We have completed that update to a large extent. However, the legal framework has changed, which we are currently analyzing in detail in order to minimize possible risks for the bank. That review is currently still ongoing. Our existing Oil and Gas policy currently already includes exclusions for project financing. For example, the bank does not fund Oil and Gas projects based upon hydraulic fracking in countries with an extremely high scarcity of water.
Furthermore, no new Oil and Gas projects in the Arctic region are supported because this is defined as a region where the July average temperature does not rise above 10 degrees Celsius. Furthermore, no new projects are funded which aim at exploration, production, transportation, or processing of oil sand. Furthermore, our target path for Oil and Gas also limits our business activities in this regard. For the current fiscal year, Deutsche Bank has set itself the following priorities. We will further intensify this process, increase the volumes, and this year once again announce a new target for the next five years. We intend to enhance our policies with a framework for transition finance because we think that this bears a great potential for the dialogue and business with our clients.
At the same time, we are massively investing in automating the analysis of our high emissions clients and the analysis of their transition plans. A good data architecture and the use of artificial intelligence will be decisive for our future success, namely supporting our clients and also running a proper risk management and reporting internally. Now, we, of course, realize that some NGOs are asking about specific examples where they see a contradiction to our CO2 management. Let me add one comment on this. We as a bank can only support the transformation to a sustainable economy, but we cannot accelerate it or bring it about on our own. We can only support it through a close exchange with our clients. Here, it is important to look at customer relationships in a comprehensive picture.
If we exit a customer relationship for good reasons, then we are not going to talk about it because confidentiality remains an important value of our bank. Therefore, please understand that at this AGM, once again, we will not comply with the request to provide information on existing or exited customer relationships and questions about the financing of certain projects by the bank or non-financing. These questions will only be answered if we have given the specific approval by the respective company. In terms of NGOs, of course, we want to entertain a constructive dialogue that we have already initiated with these NGOs for a long time and which we also held before this AGM. We will continue to keep a close eye on the examples of responsible social actions and will adapt our policies.
A summary of the existing policies of our bank can be found on our website and in our sustainability statement. I shall now come to the other questions, and I shall begin with the questions from Mr. Tommy. Thank you, Mr. Tommy, for your contributions. Now, you asked how this year we intend to increase our earnings and keep costs constant and thus also improve our CRR. Now, for 2025, we expect a permanent business dynamic and growth potential in all business areas. The earnings growth should hopefully be reflected both by interest surpluses as well as also result from non-interest dependent earnings. In 2024, the bank implemented a number of measures as part of its operational efficiency program, which had a positive effect on the adjusted costs in fiscal 2025.
As part of the measures, we had the optimization of the branch network in Germany, the headcount reduction, and also the optimization of IT and infrastructure. Moreover, the non-operational costs in 2025 ought to be reduced considerably, and expenditure for litigation and restructuring should also be normalized. Thus, the bank is planning for a CIR of below 65% for 2025. In the first quarter of 2025, we were able to post a CIR of 61%, which is a considerable advance and progress. Mr. Tommy, you also asked. You also asked about the limited partnership structure of the DWS. Now, when the DWS was floated on the market, we consciously decided to initiate this structure, and we don't see any occasion to change the legal form at the moment. Mr. Tommy, you asked about whether the remaining provisions for the Postbank acquisition were sufficient and whether further settlements are planned. Moreover, you wanted to know whether we had adjusted our processes, and we would like to provide a fundamental statement on this issue, first of all . I would also like to refer to the proposal for the nomination of a special auditor, which, based on the extension request of a shareholder according to item 15, has to be dealt with. First of all, I would like to point out that the Management Report has detailed information about the litigations in the Postbank matter on pages 548 and 549. First of all, let me just tell you a little bit about the history of this lawsuit before James von Moltke will speak in more detail about the provisions.
On the 7th of October 2010, Deutsche Bank published a voluntary takeover bid for the Postbank at a price of EUR 25 per share, around 380 former Postbank shareholders who in their overwhelming majority accepted that takeover bid, claimed in a total of 46 lawsuits for retroactive payments, including plus interest. At the time, the plaintiffs thought that the offered price of EUR 25 was too low in 2010. The plaintiffs said that at the time, Deutsche Bank would have been obliged to provide an obligatory offer for all Postbank shares. The offer price as part of that takeover bid in 2010, in their opinion, ought to therefore have been at least EUR 57.25 per Postbank share. Two of the overall 46 lawsuits have been actively pursued in the last years. In the other lawsuits, we are still waiting for a decision from the courts.
Over the years, the competent Higher Regional Court of Cologne has decided in many times to the favor of Deutsche Bank. For the first time in 2012 and again in 2020, in December 2022, the Federal Court of Justice rescinded this decision of the Higher Regional Court of Cologne, and it was sent back to the Higher Regional Court of Cologne and entrusted them with the further examination of the legal and further material matters of the German Deutsche Bank. They had the new aspects of this decision, including the decision from the Federal Court of Justice, reviewed by two renowned law firms, and Deutsche Bank came to the conclusion that, also considering the statements by the Federal Court of Justice, there were no valid claims on behalf of the plaintiffs against Deutsche Bank.
Deutsche Bank therefore was able to assume that they were, with overwhelming probability, successful against these claims in front of the Higher Regional Court of Cologne. Given this and in accordance with the accounting standards to be applied, Deutsche Bank, in agreement with the auditor at the time, did not provide for any provisions at the time. Instead, in agreement with the auditor, Deutsche Bank provided for further liabilities and also posted that in the Management Report at the time. On the 26th of April 2024, the Higher Regional Court of Cologne said in an oral proceeding that they tended to follow some of the argumentations of the plaintiffs. This changed assessment of the matter and was occasion for Deutsche Bank to provide for provisions of around EUR 1.3 billion for possible payments in all of the pending proceedings.
Given what the court had said, Deutsche Bank then entered into settlement negotiations with the plaintiffs. In the third and fourth quarters of 2024, settlements were negotiated with numerous plaintiffs, and around 60% of the claims that had been raised were settled out of court. Amongst one of those is one of the actively pursued proceedings in front of the court in Cologne. Over EUR 800 million had been provided for further settled lawsuits. Payments of a total of EUR 357 million were then paid in the settlements. In as far as the other settlements will be negotiated according to other conditions, the bank will, of course, check. On the 23rd of October 2024, the higher regional court decided in favor of the plaintiffs.
In their opinion, Deutsche Bank had been obliged on the 12th of September 2008 to provide an obligatory offer at an amount of EUR 57.25 per share. This meant that Deutsche Bank was obliged to pay a total of EUR 47 million to the plaintiffs, plus interest and costs. The interest and costs also amount today to around EUR 47 million. This was justified by the court in Cologne that Postbank, upon the conclusion of the purchase contract in September 2008, assumed that these shares were on the account of Deutsche Bank at 29.75%. Thus, over 30% of the voting rights were accounted to Deutsche Bank at the time. Deutsche Bank thus had already assumed control over Postbank on the 12th of September 2008 and therefore would have been obliged to provide an obliging offer of at least EUR 57.25 per share.
Deutsche Bank were not able to claim to not having had any knowledge of this control. Unlike what has been announced in item 15, with the request for a nomination of a special auditor, the court in Cologne did not say that Deutsche Bank had intentionally infringed any legal requirements. Deutsche Bank and their legal counsel believe that the decision of Cologne Court is legally erroneous. Therefore, an appeal has been lodged at the Federal Court of Justice, and this is now pending. I shall now pass over to James von Moltke.
Now, regarding the provisions following the conclusion of the settlement in the third and fourth quarters of 2024, the litigation sum of the non-settled lawsuits is currently around EUR 254 million. Given the interest accrued and the other claims, we have a provision for the still pending lawsuits of around EUR 550 million.
The provisions accrued by Deutsche Bank are, in our opinion, sufficient to be able to settle all of the pending lawsuits. Insofar as claims are brought by plaintiffs, which are unlikely to be held legal, Deutsche Bank has not provided any provisions for this. The assertion made as part of the request for a nomination of a special auditor that members of the Management Board or of the Supervisory Board had infringed their legal obligations is incorrect. The Executive Board and the Supervisory Board have always worked closely together with the annual financial statement auditors and with various external legal counsel and arrived at the conclusion at the time that was correct that the requirements for providing provisions were not there. In particular, the provision for legal cases to an amount of EUR 1.3 billion only in April 2024 was correct.
As I have already said, at the time, according to Deutsche Bank and their legal counsel, it was very probable that Deutsche Bank would be successful in the lawsuits. Thus, the provisions were not required nor authorized. We were always in close contact with the auditor. The auditor at no stage had any objections to how the provisions were dealt with by the Executive Board. In this context, it must be clarified that the Executive Board neither said directly nor implicitly that the provisions had not been provided for accordingly or correctly. Unlike what is stated in the request for the nomination of a special auditor, no such statement was made at the annual media conference either. Because there have been no infringements of duties or obligations in this regard, the Supervisory Board proposes voting against this motion.
We also refer to the statement of the Executive Board and the Supervisory Board, which also provides justification for this recommendation. This can be found in the official publication regarding the agenda. Now, back to you, Christian.
Thank you, James. Mr. Tommy, you would like to know to what extent the developments in the U.S.A. have an effect on our sustainability approach, and you're particularly interested here in the aspect of diversity and inclusion. Of course, we are following the news and the political debates on the question of sustainability with great interest. I said at the beginning and emphasized in my introductory statement that in this setting, it's even more important to have a clear attitude. If legislation changes in Europe, in the U.S.A., or elsewhere, we may have to react and adjust accordingly. However, overall, our message is clear. We remain committed to our sustainability goals.
Over the course of the changing situation in the U.S.A., we as a bank are, of course, checking very closely how we can react to the developments regarding diversity. This has to, of course, be done in harmony with German legal requirements and with the increasing requirements according to European legislation for diversity and transparency and also European standards for sustainability reporting, ESRS. Mr. Tommy, you also asked for the reasons for the good results with our sustainability business. The positive results in this sector have to do not only with the market conditions and demand from our customers, but also to do with our strategic positioning. For example, in the Bloomberg ranking globally, for green bonds, we've changed from rank 16 in 2008 to rank 3 in 2024.
Mr. Tommy, thank you for your question as to whether a vote about the Deutsche Bank climate strategy as part of a say on climate would be provided for now at the time. Deutsche Bank is not planning for such a vote at the AGM. The reasons for this are legal and practical obstacles, which, according to the Stock Corporation Act, are applicable for German AGMs. Thus, we think that we will, however, carry out the voluntary say on climate. We will, however, keep an eye on the developments in the market, in particular if the regulatory framework should change in the future. That brings me now to the next speaker, Mr. Schäfer. Mr. Schäfer, you asked about the development of our earnings in the various business divisions and the role of the classic banking business in the future orientation of our group.
We assume that by that you mean the Corporate Bank and the Private Customer Bank. Both of these business divisions are not only profitable, but they have also considerably increased their results over recent years. Now, in both divisions, we are implementing specific initiatives to increase the value contribution for shareholders. That includes additional earning growth, further efficiency growth, streamlining of the branch network, and an optimization of capital allocation. Mr. Schäfer, you also asked as to whether the bank has been able to overcome its historical legal burdens or whether there are other further negative surprises that we can expect. Now, we have been able to settle a number of historical litigations in the past. As you know, we are, however, in a very challenging regulatory and legal environment, and that's why we will probably have to overcome challenges of this nature in the future.
As you can see from our outlook, we are expecting considerably lower costs for lawsuits than in 2024. Mr. Schäfer, you asked about our equity goals compared to other banks. We would like you to ask for your understanding that, of course, we cannot make any statements about our competitors. We focus on the implementation of our own strategy, which aims to generate value for you as a shareholder. A ROTE of over 10% for this year, we think, is an adequate goal given the progress that the bank has made in recent years. We have always emphasized and made it clear that for the coming years, we see significant further potential. We plan at the right time to announce further specifics about our strategic and financial goals and about our measures for beyond 2025.
Mr. Schäfer, you also asked about our CIR, where you believe that there is room for improvement. Deutsche Bank is working on its management agenda for the years beyond 2025. This agenda also includes a number of initiatives to improve our added value and our earning growth, for example, by adjusting prices and steering capital into high-yield areas. We're also working on a new design of our goal operating model to be able to operate our platform at lower costs and simplify our organizational structure and decision processes. For example, the closure of the DSL brand and the streamlining of our branch network in the Private Bank sector. We assume that the implementation of these initiatives will lead to further improvements of the CIR.
As you can see from the figures for the first quarter of 2025, these advances are already having a positive effect on the CIR, which is currently at 61% in the first quarter. Mr. Schäfer, you asked how we intend to align our ESG strategy in the future, whether we think that there will be a negative effect of the new ESG DEI calibration in the U.S.A., and which measurable added value ESG will have for Deutsche Bank. In my statement on sustainability, I have already explained how we align our strategy. We believe that sustainability is a future-proof competitive advantage. Since mid-2019, Deutsche Bank has made sustainability a management priority and a central pillar of its strategy, and that has been very successful. For example, the EUR 389 billion invested into sustainable financing and ESG investments that we have made possible.
Your questions about the DEI calibration in the U.S.A. and the added value have already been addressed in a response to Mr. Tommy. In short, we are keeping an eye on these developments very carefully to adhere to local legislation. Mr. Schäfer, you asked about the effects of the current U.S. policies and the U.S. dollar price on our business. Now, regarding the opportunities and the chances that are linked with these developments, an increasing requirement for advice from our corporate customers and an adjustment of our supply chains, particularly in Infrastructure and Energy and Defense in particular in Europe. We will bear this in mind in our investment decisions. The risks include permanent insecurity and uncertainty and also a lack of growth in the U.S.A. This could, of course, also have an effect on the willingness to invest and consumption.
In recent months, we've seen significant volatility in share prices and currencies, in particular when we look at the U.S. dollar/euro prices. Fundamentally, it can be said that a weaker U.S. dollar compared to the euro can be beneficial when we look at the cost basis, but it can have an inverse effect on earnings. The effects on the changes on earnings and costs will be similar. [Foreign language]. We are focusing on strengthening our asset-like business further to optimize our pricing and improve allocation of RWAs.
Moreover, our goal is to increase the value-added at customer level and reduce capital allocation in areas that do not meet our minimum yield requirements. Based on the work delivered so far and earlier results, we are already seeing improvements for our bank. If we were to exit any businesses, we will let you know in due time. Mr. Kienle, next your question regarding the impact of the financing package resolved by the previous German Bundestag and our beliefs in general. We are expecting the implementation of the financial package and the coalition agreement to offer us numerous opportunities. We believe there's a lot of potential in providing advisory services and financing to German medium-sized enterprises. We also expect more demand for loans in Infrastructure, Energy, and Defense.
Based on the current phase of it, since we also believe that the advisory and origination business will recover again, which is going to further strengthen our position as market lead in Germany. In our private clients in Germany, we also believe there will be a strong demand with regard to asset allocation, pensions, and defense show construction. Currently, it is too early to quantify the exact impacts of the fiscal package in Germany. Mr. Kienle, you also asked us whether we are going to be affected by the U.S. tariff policy and what the impacts will be. From our point of view, the key effects will be changes in trade flows, a restructuring in supply chains, and newly emerging partnerships and alliances. As a global prospect, Deutsche Bank is exactly perfectly positioned for this environment. It enables us to navigate our private, corporate, and institutional clients through these changes.
The diversified business model and regional presence of Deutsche Bank offer a natural kind of hedging effect and allow us to offer clients an alternative to the big U.S. banks . Mr. Kienle, you asked us why in 2025, after five years of AGMs being held in a virtual format, we are not carrying out an in-person physical AGM. The decision for this year's virtual format for the AGM was adopted on the 17th of May 2023 by the Board based on the authorization from the AGM, taking account of the rights and interests of shareholders and the company in line with statutory requirements and the requirements of our statutes. The virtual format allows people to participate without having to physically attend the meeting, therefore, it's particularly inclusive. We also believe that dialogue with society is going to be improved in these areas.
The virtual format also underlines our requirements regarding digitalization, which is continually being further developed again this year. Moreover, sustainability and cost conservation play a role because the virtual format saves a lot of CO2 emissions and costs of about EUR 2.8 million compared with a physical format this year. As already pointed out earlier this morning by Alex Wynaendts, Chairman of the Supervisory Board, we will change between physical and virtual formats for our AGM in the future. Mr. Kienle, we were asking us whether we are going to be affected by the anti-DEY order of the U.S. administration. I have already replied to that question in answering Mr. Tommes' question by saying that we are monitoring developments very closely in order to comply with local laws. M r. Kienle, you were asking a number of questions regarding the Postbank takeover, and we are going to answer them as follows. First of all, regarding your question of an alleged risk assessment by legal. The internal assessment that you addressed solely related to the absolute amount, not the probability of occurrence, and therefore it is not possible if you allege that Deutsche Bank in the context of the Postbank takeover considered this to be a high-risk case. In 2018, there was a contingent liability for this topic, and at that time, Deutsche Bank also disclosed this in its Annual Report. Until the 26th of April 2024, the bank considered it to be more likely than not for the bank to win the case. It was only when the Upper Regional Court changed its view that our assessment was changed accordingly.
Regarding a conditional intent assumed by the Cologne Upper Regional Court, we have to state that it is not correct that this was stated in the ruling. The ruling only said that in 2008, the bank had already expected the likelihood that it might gain control over Postbank. Deutsche Bank is and continues to be of the view that there are more reasons against assuming an obligation at the point in time, and this was also shared by the legal advisors of Deutsche Bank at the time, as well as by Deutsche Postbank lawyers. The same thing applies to BaFin, because, of course, Deutsche Bank consulted BaFin very closely in the run-up to the transaction. The Upper Regional Court in Cologne, therefore, does not say anything that would contradict our position.
All they are saying is that in 2008, Deutsche Bank was aware of the possibility that other courts might come to a different assessment, even though this was not considered to be more likely than not. Mr. Kienle, regarding your question concerning an alleged statement by the bank, which was not correct, you said the bank made incorrect statements, but this is not true. You also asked about certain criminal charges. We believe you are referring to criminal charges brought against former board members by plaintiffs. As far as we are aware, these cases were rejected or were not initiated in the first place because there were no reasons to open up proceedings in these cases. Concerning the transaction structure for Postbank, the Postbank transaction, we understand your question as asking us which law firms had provided expert reports in this context, in the context of the Postbank takeover.
We regularly obtained legal reports from law firms and also on an ad hoc basis. This related to a ruling from the Federal Court of 13th of September 2022. The expert opinions from Hengeler Law Firm and Alan and Ove Schermann Law Firm were obtained in Q1 2023 after the written ruling of the Federal Supreme Court ruling had become public. Alan and Ove Schermann were not involved in this case. The cost of these expert opinions was significantly less than EUR 500,000 in 2023. The risk assessment based on expert reports was only changed upon the 26th of April 2024 when the court proceedings were held in Cologne. At the Annual Media Conference, we commented on our legal risks. Let me clearly reiterate here that I did not make the statement you claim I made at the media conference.
Deutsche Bank set up a provision after the court case was opened, and on the 30th of January 2025, at the Annual Media Conference, I said that Deutsche Bank had minimized charges for the Postbank case and also had formed provisions on a continual basis for other cases of litigation.
Mr. Tomme, thank you for your questions. Thank you for your commitment. Thank you for your kind words. You were asking about our cost program and synergies from the Postbank integration. Until the end of the first quarter of 2025, we achieved about 85% of our cost reduction target worth EUR 2.5 billion, and we are on track to deliver and achieve overall the total target. We're expecting to be able to implement the lion's share of the synergies from the Postbank integration by the end of 2025.
In addition, there's a number of additional initiatives that we will continue to pursue. Mr. Kienle, you asked us whether a merger would make sense for us or whether we intend to grow organically in Asset Management. DWS has a clear priority of generating organic growth and enhancing its efficiency. In addition, DWS will review any inorganic growth opportunities if these fit in with its own strategic alignment and support its growth ambition. In this context, potential takeover targets will be reviewed on the basis of the following criteria: market and distribution access for the scalability of the investment platform or expansion of our skills and competencies in Asset Management. Mr. Tomme, you asked about the dissolution of risk provisioning, the release of learned loss provisions that had been formed due to processing in Germany.
As early as in 2024, and then Q1 2025, we've already been able to release most of the risk provisions formed where there were any technically induced due forwards. Further resolutions will depend on clients meeting their legal and contractual obligations. Mr. Tomme, regarding your question about provisions for litigation in connection with FX loans in Poland, as at 31st December 2024, the provision increased by EUR 475 million. This led to an overall provision for the portfolio of mortgages in Swiss francs and euros of EUR 895 million, compared with EUR 534 million as at 31 December 2023. The bank believes that its provisions for this circumstance are appropriate. We currently do not believe that there are any imminent material developments that we expected in this matter that might have a direct impact on our risk assessment.
Any legal and de facto developments that might lead to an adjustment of the provision will be checked both for this case and any of our other cases of litigation. Mr. Tomme, you asked about the use of digital technology, automation, and AI for our business processes and how these will create synergies. AI, artificial intelligence, has the potential of enhancing the efficiency of business processes, winning deeper findings from data, enhancing the customer experience, strengthening controls, and developing new products in the future. We presume that AI will become an integral element of nearly all aspects of our business operations. An example is our AI-supported solution for document processing, scanning thousands of incoming documents every day and extracting information from complex document types. As a result, the processing time for documents has been reduced by 40% on average.
Mr. Tomme, you also wanted to know from us what the risks are that we see in terms of using AI and how we protect ourselves from cyber attacks. The use of AI in the financial sector requires particular diligence. We have to ensure that the enormous potential is used in responsible, safe, and circumspect manner. The algorithms used have to be fair, must not contain any hidden discrimination, and the results have to be correct and explainable in terms of their substantial content. In order to protect ourselves from the growing threats from cyber attacks, we invest consistently in our safety measures and adjust these measures on a continual basis. However, we ask you to bear with us if we do not provide any details for safety reasons. Mr. Tomme, you asked us about our distribution plans for the next few years.
Christian Sewing in his speech comprehensively explained this in detail. In line with our goal of distributing 50% of group results attributable to shareholders, our goal is to pay a cash dividend of EUR 1 per share in 2026. This corresponds to a total of EUR 1.9 billion, more or less. Any amounts exceeding that amount would benefit shareholders in the form of share buybacks. For subsequent years, we continue to plan for a distribution quota of 50%, whereby cash dividends are going to grow more moderately than they have in the past few years. A specific total amount for the dividend per share has not been published by us. In fixing our new target range for our CET1 ratio of 13.5%-14%, we will gain additional leeway in order to be able to distribute capital, in particular in the form of share buybacks above the 14% threshold.
Such distributions that require a capitalization that will be above the upper end of our operative target range in the long term. In addition, they will depend on organic or inorganic opportunities for us to be able to invest in the interest of our shareholders to further enhance our value. Mr. Schärfe, you asked us whether there is any leeway for us to reduce our CET1 ratio due to regulatory haircuts. You also wanted to know whether other asset sales and securitizations will lead to further RWAs being released. The regulatory requirements for banks contain a number of haircuts that are partly fixed by law, partly fixed by the relevant authorities for each individual bank. One example would, for example, be the Pillar II buffer requirements fixed by the ECB, or the buffer for relevant banks determined by the Federal Agency by BaFin.
For any further release of the RWAs due to asset sales or securitization transactions, we do see some leeway. After in 2024, we had released RWAs to a substantial extent due to securitizations. A further EUR 3 billion have been added since the beginning of the year, with the reduction of RWAs by a total of EUR 24 billion as at the end of 2024. We have already achieved our target for capital efficiency measures by the end of 2025 to the great extent, which is to reduce RWAs by EUR 25-EUR 30 billion. We are planning to reach the upper end of this range by the end of 2025. Mr. Kienle, you were asking about our equity ratio this year and why it was less than 8% last year, even without taxes.
In financial year 2024, we achieved an after-tax return on tangible equity of 4.7%. As Christian Sewing pointed out in his speech, this result had been adversely impacted by one of the effects, including in particular EUR 1.7 billion worth of costs for specific litigation, including the Postbank procedure. Excluding these effects, the return was 7.1%. However, this also included compensation payments for restructuring and severance payments of EUR 529 million, as well as an increased risk provisioning or credit loan loss provisioning, which put an additional burden on our group result. In Q1 of this year, our return on equity was 11.9% and therefore was on track to achieve our financial goals communicated and published for 2025. Mr. Kienle, you asked us which segment the special charge from the Postbank procedure is to be allocated to and how this has impacted the return on equity of the relevant area.
The provision was carried in corporate and other and is not applicable to any other segment, as the Postbank takeover was a transaction carried out by the group. For the corporate and other segments, the group does not disclose any return on equity numbers. Mr. Kienle, you asked us whether in 2025 we are going to earn the cost of capital in our individual segments. As Christian Sewing already pointed out extensively in his speech, we are confident that we will be able to achieve our target of a return on equity of more than 10% for the group in 2025. All businesses are going to deliver their contribution to us achieving this target. Please bear with us for not being able to make any comments regarding our detailed plans. Mr. Kienle, you asked us whether the cost of capital of our businesses have changed compared with the costs reported for 2023. The cost of capital at segment level fell by 0.4-0.6 percentage points year-on-year in comparison to the numbers given by you. This is mainly driven by a decline in the market risk premium of 0.25 percentage points, while the risk-free interest rate and the beta factors of the individual segments did not change significantly. The cost of capital currently are 9.5% in the Corporate Bank, 10.4% in Asset Management, 10.2% in the Investment Bank, and 10.1% in the Private Bank. Mr. Kienle, you asked about the proportions of risk provisioning in basis points related to CRE loans and effects from the Postbank integration.
Loss provisioning for CRE without a right of recourse in 2024 amounted to about 10 basis points of the average loan volume. The risk provisioning related to the Postbank integration and the special effects totaled about 2 basis points. You also asked what we understand by the transition effects in the framework of the Postbank integration. The transition effects can be broken down into two categories. On the one hand, there were one-off effects in the framework of model adjustments that were required in the framework of IT migration. On the other hand, there was a temporary increase in risk costs due to the increase in arrears in customers that were carried on a temporary basis. This was mainly due to IT migration. Mr. Kienle, regarding your questions for the reasons for an increase in our target for our CIR to less than 65% and your question as to whether we will stick to that target given our good performance in Q1, we have deliberately decided to increase the target slightly. This will provide us with additional leeway for investments in our businesses in order to push ahead with our long-term growth initiatives and further develop our control environment. We will stick to our target of achieving a cost-income ratio of less than 65%, as we have to bear into account the seasonality of our revenues. Q1, the first quarter, is normally the strongest quarter in our business. While revenues can vary from one quarter to the next, we can fix the costs ourselves and can ensure you that we will control our costs very closely. Mr. Kienle, you also asked about the impact of the U.S. customs policy on risk provisioning in our credit business and whether certain branches are affected to a particular extent. The bank is carrying out analyses of clients and portfolios on a regular basis in order to analyze the impact of U.S. customs on our global portfolio. As a result, in Q1 2025, we carried flat rate impairments, which also reflects the deterioration of the macroeconomic environment. We have identified a number of industrial sectors and industries that, due to their strong dependency on U.S. exports, are more strongly affected potentially. This will apply in particular to the Automotive industry and the Steel sector, for which specific customs have been fixed. In total, the quality of our loan book remains good and stable.
Mr. Scherfe, you asked about the current state of play with regard to our distribution target for 2021 to 2025, whereby we intend to distribute at least EUR 8 billion for that period. As already explained by Christian Sewing, total distributions will account for EUR 5.4 billion if shareholders accept today's proposal for dividends and if we manage to complete our share buyback program launched on 1st of April of this year of EUR 750 million in Q3 as planned. An additional share buyback program has already been applied for for this year. In combination with other distributions due in 2026, this will contribute to our target. Mr. Schärfe, regarding your question on the impact of U.S. tariffs on Deutsche Bank, I would like to refer to Christian Sewing's speech given earlier today.
He referred to the key trends from our point of view, in particular changes in trade flows, the restructuring of supply chains, and the formation of new partnerships and alliances. The positioning of Deutsche Bank as a global host bank is the perfect positioning given this type of environment. The bank has carried out a number of client and portfolio-specific analyses and stress scenarios in order to be able to analyze our risks and the impacts of U.S. tariffs on our global portfolios. As a result, in Q1 2025, we carried a number of flat rate impairments, both with regard to the direct risks that we have established for clients with higher risks and the further deterioration of the macroeconomic environment.
In sectors that will respond strongly to changes in customs, we have reduced the risk and client limits selectively and downgraded a number of customer ratings, but the quality of our loan book remains good and stable. Mr. Schärfe, you were asking about the impact of the current economic situation on our business development. You asked about the measures that we're taking in this respect and the expectations we have with regard to the interest policy of the European Central Bank. European banks are faced with significant challenges in the current market environment. These include lower interest rates, lower margins, and a weaker momentum in the big economies. Nevertheless, despite the currently uncertain market situation, we believe that thanks to our strategy and our diversified business model, we are well prepared for further growth.
We expect all our businesses to contribute to that growth, in particular thanks to an increase in fees and commission. Our economists expect the ECB to undertake three more small interest rate steps this year, up to a deposit rate of 1.5% at year-end. Mr. Schärfe, you asked us to comment on the impact of lower rates on our subsidiary DWS. Lower rates in the world markets can have an adverse impact on assets under management and therefore the revenues of DWS. This, in turn, may affect the share price of DWS and therefore the book value of our participation. However, the impact on revenues may be compensated by lower costs to some extent. Mr. Schärfe, you asked us about our strategy regarding digitalization and the use of AI.
You asked about the opportunities and risks we observe in this regard, and you asked us to share with you a self-assessment in this regard. As already commented in relation to a question asked by Mr. Tomé, AI has the potential of rendering business processes more efficient, bringing more fundamental findings from data, and simplifying our interaction with our clients in order to develop new products in the future. In order to push ahead with the safe and efficient use throughout the bank, we have established a bank-wide AI program. In general, all new technologies have to meet our high standards and requirements regarding data protection, information security, and the prevention of financial crime. We analyze on a regular basis where we stand in relation to our peers, and we ask our clients for their feedback.
On that basis, we believe we are well positioned in terms of the competitive environment. Mr. Schärfe, the bank's net interest revenue mostly results from the interest revenue in the banking book. However, it also includes valuation effects from the financing of the trading book and from derivatives, which were positive in 2022 and negative in 2023 and 2024. The interest results under IFRS, including the above-mentioned variation effects, have therefore been slightly declining since 2022. In the banking book, which we control in an active manner that is not taking into account the valuation effects from the trading book, here, the interest revenue has increased since 2022. As a matter of fact, the net interest revenue in the banking book has grown by about EUR 2 billion. At this point, I'd like to pass the floor to Alexander Wynaendts.
Thank you. Mr. Tomé, you asked whether we already did what we announced for the United States. I would like to make a statement. We already invested considerably into our business with fixed interest securities and currencies in the United States., and we also focus on financing with clear strength in secured financing, private credit business, and infrastructure financing. In Latin America, we have invested into our advisory business and our business with fixed interest securities and foreign exchange, and we could increase our market share, and we believe in the potential of this region for our bank. Mr. Tomé, in addition, you asked about the current status of e-commerce financial services. The business that we call merchant solutions in our Corporate Bank is the segment where we offer e-commerce payment services, and this business has developed in line with our expectations.
We do see a high demand and an earnings growth in the current business, both for global companies, between the companies, but also with the end consumers and other client segments. We could already expand the business in the past years. Mr. Tomé, you also asked some questions regarding profitability and the positioning of our Private Bank and the IT integration with Postbank. Let me start answering your questions regarding profitability. In the strong area Wealth Management Private Banking, we want to set a stronger focus on profitable growth by expanding our global market share and growing in the fees business. In the Personal Banking segment, the focus continues to be the consistent implementation of our digital strategy and the optimization of our efficiency.
We here build on our strong position in the home market, and we want to achieve an improvement of our cost-income ratio by expanding the digital distribution channels and go for further efficiency increases. Regarding our business position, our goal in Personal Banking is to offer our clients a modern and intuitive experience across all products, services, and channels. For the Postbank brand, we pursue a mobile-first strategy, whereas at Deutsche Bank, we more talk to customers, requiring advisory in the omnichannel approach, digitally, by telephone, and directly in discussion with the customers. On IT integration, in the year 2024, we already realized EUR 240 million of savings in the Unity program. In 2025, we'll probably save EUR 270 million, starting with 2027, more than EUR 300 million. On Digitization, we continue to pursue the expansion of our Mobile and Online Banking solutions.
In 2024, we expanded the Mobile Banking app of Postbank, and in the third quarter of this year, we will also transfer the customers of Deutsche Bank to these new applications. Mr. Tomé, you also asked about the earnings of the takeover of Numis last year and whether we have or will achieve the EUR 500 million goal. We have not set a EUR 500 million revenue target for the Deutsche Numis business. As you can see in the British Trade Register Companies House, Numis Securities Limited in the first 15 months until the end of 2024 had a revenue of GBP 139 million. This figure does not cover all the activities of Numis because it's gradually integrated into Deutsche Bank.
In the year 2025, we are happy with the momentum so far, and we could significantly increase our market share in the British advisory and emissions business, even if the volume is still restricted. Let me now move on to Mr. Schärfe's questions. Mr. Schärfe, against the background of the lack of trust into the German economy right now, you ask what expectations we have regarding the advisory business with mergers and takeovers and share emissions or issuings. Our results in mergers and takeovers in the first quarter 2025 were strong, and we could increase our earnings. The business with IPOs, however, was quite slow. Since the turbulences at the beginning of the second quarter, the trust in the market has declined further, and this also resulted in a decline in the advisory mandates and IPOs.
We think that this is only a midterm development and are still confident for these business areas. Mr. Schärfe, you also asked about the future growth of our Corporate Bank. The Corporate Bank expects further progress regarding its initiatives and higher business volumes to support the income development in 2025. The income would profit from higher fees and commissions, whereas the interest income should be stable. For the future, we see growth opportunities in all core customer groups regarding the strength of the Corporate Bank and regarding new product groups. I have one more question asked by Mr. Kienle. Mr. Kienle, you asked about the problems of the Private Bank. We can still see some potential to catch up regarding cost efficiencies and digitization of our business processes.
In recent years, we already developed improvements and have made good progress in these fields by the consistent implementation of our transformation. For example, by optimizing our branch network and by having savings based on our IT platform, our CIR ratio in the first quarter 2025 was reduced to 71% compared to 76% year-on-year. We are convinced that we can realize further optimization of our processes and the introduction of new branch concepts to have further efficiencies. I now hand over to Mr. Winkeljohann.
Thank you very much, Alex. Dear Mr. Thomae, you asked about some indication in how far the goals of the long-term component of board compensation could be fulfilled in the first year. For the long-term component, because of the change of the compensation system, we now no longer look back but look forward, and we have a two-year transition phase.
The Supervisory Board has decided to only determine the individual performance parameters at the end of the three-year period, and we are not taking into account any intermediate goals. Some of the intermediate goals can also deviate from the final result and can be misleading, so we are not determining them, and we will check whether in the coming compensation report we can provide more background on the development of the long-term goals. Mr. Schärfe, let me summarize your many questions regarding the EY auditing firm that the Supervisory Board again suggests as an auditor for the bank. There were some criticisms stated regarding this proposal, as we could see from your questions. Based on the audits in the previous years, the Supervisory Board is still convinced that the qualification, the scope, and the audit approach of EY is ensuring a good and high-quality audit of the bank.
Procedures against EY by APAS regarding the Wirecard scandal do not change anything in this statement. The APAS process does not result in any ban on EY, and it does not have any impact on the audit mandates. People working in the audit team of EY for Deutsche Bank were not involved in Wirecard, and of course, EY has confirmed the independence which is necessary based on European law. The processes from the sphere of DWS against EY are done there on behalf of various funds and in the interests of the shareholders. The processes and the strategy are not part of the audit of the financial statements of Deutsche Bank. The Supervisory Board has also decided to go for an integrated audit approach to make sure that the auditor for Deutsche Bank will also be proposed for the audit of the sustainability reporting should this become obligatory.
From the point of view of the Supervisory Board, there is no doubt that EY, as before, will do the audit in line with all the necessary requirements, with the required quality and with the required scope, and also the financial performance of EY in connection with the audit of Deutsche Bank. There are no concerns. Against this background, a change of the auditor would neither be good nor in the interests of the bank. Deutsche Bank will change the auditors at the latest every 10 years, and this is why we expect a change of the auditor for the financial statements and group financial statements in 2030 at the latest.
Mr. Kienle, you asked in how far we can make sure that our EY auditor does not have access to any sensitive information on litigation and our process strategy, and here I would like to refer you back to our already made statement on the EY topic as our auditor, where we already explained our decision in detail. Mr. Kienle, you also asked when Deutsche Bank will rotate the auditor, and here I refer back to the already given answers on this topic. Mr. Kienle, you also asked why for many years we have been proposing EY as auditors over and over again, although EY is criticized in public because of the Wirecard scandal and the Wambach report showed major defects. Here we would like to refer back to the statement on the topic of EY as an auditor, which we have already explained in detail.
Ladies and gentlemen, this leads us to the end of the first block of answers. We do have a number of requests for the floor, but before we come, I would like to make a few statements. First of all, we have been in the AGM for more than four hours already. I still have a long speaker's list, and the German Corporate Governance Codex says that normally AGMs should be over after four to six hours, also in the interest of the shareholders pursuing these AGMs. We would like to make sure that we come to an end of this meeting in due time. I already mentioned that we'll close the list of speakers soon.
It's now 2:18 P.M., and I will close the speakers' list in 15 minutes, and we then can continue the program, but I will announce again that we will close the list of speakers. Those of you who would like to take the floor, please make your request. The second point is the live survey, the result of the live survey today. First of all, thank you very much for participating in this live survey. There were two questions which I would like to mention here, and I would like to tell you the answers. The first question was, what topics are of special importance for you with regard to Deutsche Bank? And here we see that these are mainly two topics. First of all, the financial performance and the corporate strategy and targets, and also digitization and technological innovations were mentioned as important by many participants.
The second question in the live survey was, what types of measures should be taken in your view in order to increase competitiveness of Deutsche Bank? Here we can say that the two measures which were mentioned most frequently were the improvement of digital services and the optimization of internal processes. This feedback gives us important information on what topics are important for you as shareholders.
Thank you very much for answering the questions. This leads us to the second block of speakers. We have seven to eight people on our list, and may I remind you that we restrict the speaking times to 10 minutes? I would like to ask you to comply with this. As a first speaker, I would like to ask Mr. John Beard, and then I would like to ask Ms. Louise Wagner and Karl Walter Freitag to be ready.
Thank you, Mr. Chairman. To the Board of Directors, CEO, and stock and shareholders, good afternoon. My name is John Beard, and I'm from Port Arthur, Texas, in the Gulf South of the United States. I'm here today to speak to you with regard to human rights issues concerning your LNG investments in the Gulf South, in particular at Cameron, Corpus Christi, Texas, Freeport, Texas, Plaquemines, Louisiana, the LNG most close to me within 8 mi of my homes, Sabine Pass, by Sempra, Venture Global, and Delta LNGs. I want to preface what I have to say to you by saying this first and foremost, that your investments in these LNG projects are producing substantial harm and damage to the environment as well as to the lives and health of people in the Gulf South. Why I'm saying this is because of this.
My hometown of Port Arthur is located on the border of Texas and Louisiana, right across Sabine Lake from Sabine Pass LNG. Sabine Pass LNG has been found to emit the very carcinogenic substance formaldehyde. Formaldehyde is a major component of embalming fluids, so essentially the air we breathe because we're upwind from that facility and the flaring that comes from that facility basically makes us dead men walking. We also have the aspect of the fact of, as I said, the flaring, which releases large amounts of methane into the atmosphere, and it also releases many other contaminants that are harmful to our lives and health. It is not just that facility that does it. We're home to the largest refinery in the country and three other refineries and many other major petrochemical facilities.
This has resulted in poor air quality, which has affected the lives and health of people in my community, such that we have twice the state and national average for cancer, as well as heart, lung, and kidney disease. This poor air quality is also recognized by the United Nations, who did a study that showed that Port Arthur is one of the most contaminated places on the Earth. The other communities that I mentioned to you are no less contaminated. They're all put in places not of wealth and affluence, but in places that are brown, black, and substantially poor.
Your investment decision is hurting not only their lives and health, but their livelihoods, because the fishermen in a lot of these coastal communities are unable to make the catches they formerly made because of the influx of all of these LNG facilities and more that are slated to come. I do not want to overburden your time, but I have some critical questions I need to ask you with regard to this. First of all, does Deutsche Bank recognize the God-given human right of all people to breathe clean, fresh air that is free from toxins and contaminants that are harmful to their lives and health? Does Deutsche Bank also believe that people should not be sacrificed for profit? Also, will you exercise due diligence by checking into where you're making these investments and seeing what it's like on the ground?
I offer you the opportunity to come to Port Arthur, to come to the Gulf Coast, and see what is going on there, to talk to the people and find out what your impact actually is. It is not just an investment. It is also an impact on their lives and health and on their futures, the same future that you would want for your husband or your wife or your children or your friends and neighbors. We have friends and neighbors too. By companies that are doing these LNG projects with their serious emissions, they are affecting our lives and health. They are actually killing people. That makes you a necessary to that act because you are enabling and financing that murder. I want to ask you this question.
What does it feel like when you get up in the morning and prepare for your day's work or whatever you do, stand in front of the mirror, brush your teeth, comb your hair, wash your face, and look into the eyes and the face of a murderer? Because that's what it is. It's killing people. It's hurting and harming people. I exaggerate it not. The best way to prove me out, do not take my word, come and see it for yourself. Lastly, will you consider a policy change that reflects truly that you are not, or that you do respect the lives and health and the human condition, the human rights of people to breathe clean, fresh air, to live in a clean, healthy, and safe environment? The only way you are going to know if you are actually doing this is to come and see it.
You can't take just anyone's word for it. I invite you to come there. I invite you to get with me and my other colleagues, and we'll be glad to sit and talk with you and discuss getting out of fossil fuel finance in the Gulf South and not doing anymore because it is hurting and harming the people, the lives, and health, and also the environment. Port Arthur has been the victim of more than five major hurricanes since 2005 and at least five smaller ones that have devastated our community. This caused population loss. This caused a loss of land mass, and people are still suffering from these losses. Once again, I thank you for your time. I thank you for your opportunity to speak to you today.
Once again, will you consider those human rights aspects, and will you come to the Gulf Coast of Southeast Texas and Southwest Louisiana? Thank you.
Thank you, John Beard, for your questions. We will answer the questions later on. We now turn to Ms. Louise Wagner, who is speaking on behalf of Reclaim Finance. After that, I would like to ask Karl Walter Freitag and Matthias Gebler to get ready. Ms. Wagner, you have the floor.
Thank you very much, members of the Management Board, shareholders. My name is Louise Wagner. Today, I represent Reclaim Finance, and I participate in this AGM via the SDK Association. The Chief Sustainability Officer of Deutsche Bank, Jörg Eigendorfer, said that supporting your customers on their path toward net zero is a central element of your sustainability strategy.
Yet, as has been said before, amongst your 10 most important customers in the upstream and midstream gas sector between 2021 and 2023, we have got fossil juggernauts such as Qatar Energy, BP, Venture Global, TotalEnergies, Eni, and ExxonMobil. In last month alone, they were involved in a bond emission of $192.8 million. These clients together are responsible for 7.56% of total oxygen emissions, 2.5% of plant pipeline expansion, and 2% of the planned LNG capacities. They could not be more distanced from a transition away from fossil fuels. More than 10 years ago, the International Energy Agency, in its net zero emission scenario by 2050, called for an end of new Oil and Gas fields and the end of the construction of new LNG terminals, a scenario which the net zero strategy of Deutsche Bank is based upon or should be based upon.
The most recent World Energy Outlook, published in October 2024, confirmed this message once again. Yet, the Global Oil and Gas Exit List shows that 95% of the Oil and Gas companies all over the world plan to launch new projects. About two-thirds of the short-term expansion plans of the industry exceed the net zero scenario of 2050. These simple facts, however, run counter to the fact that there are so-called pure-play companies, which increasingly also have inclusion criteria on the one hand and other integrated companies avoiding these measures. Now, based upon the unsubstantiated assumption that they can achieve their transition and should receive respective funding, the reality is that none of these companies is willing to exit Oil and Gas, and all of them should be excluded from financing, also the big Oil and Gas companies. In your report on net zero strategy, you write the following.
This is a translation from the English version. Deutsche Bank will use three central levers for decarbonization. Number one, providing transformation funding for clients and supporting their transition. Secondly, restructuring of our credit portfolio for the benefit of clients with a stronger focus on decarbonization plans and reduced use of carbon-intensive technologies. Thirdly, reduction of the exposure to clients with a limited capability or ability to decarbonize. Now, my question, therefore, is the following. Considering the fact that the majority of your customer portfolio actively works on expanding fossil fuel production and taking into account your commitment to net zero scenario of IEA, my question is, what else should these companies do for the third lever of your strategy, kicking in, namely, you putting an end to this financing?
Will you take the lead, which you say is essential and indispensable for a leading European bank, and will you thus pursue the exit scenario for Oil and Gas with according criteria? Will you put an end to your business relationships with companies that continue to enhance their Oil and Gas business? In other words, will you define comprehensive exclusion criteria for all conventional Oil and Gas companies and also company-wide exclusion decisions for general companies with expansion plans? Or will you simply follow the pack and leave the lead to others? I'm looking forward to your questions. Thank you very much.
Thank you very much, Ms. Wagner. The next speaker on our list is Karl Walter Freitag. After that, I kindly ask Mr. Matthias Gebler and Ms. Katharina Steg to already get ready. Mr. Freitag, sorry for having announced you twice as Karl Werner.
I have now realized myself that your first name is Karl Walter. You've got the floor. Mr. Walter, Mr. Freitag, you're on mute. You're on mute. Now we can hear you. All right. Thank you very much now.
Now, I don't need to correct you anymore regarding my first name. Thanks a lot. I hope you can hear me now. I represent today the [Ribbeck Brewery,] which also has put the requests for resolution on special audits onto the agenda. Let me now, I would like to hereby and formally motion for these amendments to be added to the agenda. I assume that you forgo me reading out these motions and that you later on will not claim that I did not read them out and that therefore not valid. Yes, we forgo that requirement, says Mr. Winkeljohann.
Now, let me explain why we are filing that request for amendment to the agenda. Now, in your Annual Report, you state that the six former employees of the bank involved in the Monterey Passkey proceedings have sued the bank for damages in the range of more than EUR 100 million, although they have threatened to bring charges against the bank. First question. [Ribbeck Brewery] at the AGM 2023 already asked detailed questions on this matter, namely the bank, whether the bank without justification characterized these former employees as individual perpetrators. The Management Board at that time answered that the bank in the Monterey Passkey proceedings had always held the position that neither the bank nor its active former employees had perpetrated any criminal acts.
Now, if that answer is true, then what facts do the former employees then base their claims for violation of their future career possibilities against the bank? If so, whose responsibility has that been? Now, based upon newspaper reports, the German charges of a German employee for violation of their professional development possibilities were raised in 2024. Why was that fact not disclosed in the first half-year report 2024? Who is responsible for that? Which actual change occurred in the second half of the year 2024 in these proceedings, which resulted in a disclosure in the Annual Report 2024? DWS has now paid fines of EUR 50 million for the greenwashing matter in the U.S. and in Germany. How high were the lawyers' costs for this matter in the U.S. and in Germany in total?
Did the Supervisory Board verify whether any damage claims can be brought forward against Mr. von Rohr or whether bonus payments can be clawed back? If so, what was the result? A Supervisory Special BaFin audit for ESG matters was initiated against DWS, this time due to allegedly failing to take respective client engagement activities. Now, Mr. von Moltke, who is in charge of Asset Management, or other board members, had they been notified of the internal complaints of the ESG employee? Which respective actions did you then take to investigate the complaints of this employee? Did Mr. von Moltke or other board members exercise pressure on that employee or also others such as lawyers or any other third parties? Did third parties ask lawyers to exercise such an influence?
Is there any fine to be expected from this in the U.S. or in Germany? At what amount? BaFin has initiated a special audit against the bank due to possible money laundering in a division. Now, which division are we talking about? Which board members have been or are responsible for the business relationship which resulted in a special audit? Is there a fine to be expected in Germany or in the U.S.? If so, to what maximum extent? Dr. Seeman, as the former member of the Management Board in charge of Legal at the last AGM, was not able to provide any information on Hensler-Dingermann and Bowen and Owery expert opinions because that was related to the provision set aside in the Annual Report 2024 regarding the Postbank litigation. Now, once again, what is the date of these two expert opinions?
Because we were just told that they were obtained in the first quarter. At that time, at the AGM, I asked about the specific date, and I do so once again. Have any claims against the law firms from the Postbank matter still pending, or have you reserved the right to exercise these claims? Currently, BaFin has criticized the double role of Mr. Sewing as being the CEO and also being in charge of legal. In connection with the special audit motion I have submitted, there are also the following matters I would like to ask your explanations for. Were there any assessments of the internal legal department, also by external lawyers, regarding the predominant majority of losing the lawsuit after the BGH ruling of September? Now, we've lost the connection.
Which resulted in an obligatory provision to be set up in the annual financial statements 2022 or 2023. For which reason were no provisions formed in the annual financial statements 2022 or 2023 in spite of these findings? Would a provision have resulted in the fact that Deutsche Bank AG would have been able to achieve the return on equity of 8%? That is return on tangible equity for fiscal year 2022. As Mr. Sewing had always been announced and promised and has also been shown in various documents. In April 2024, the board member Sewing and von Moltke told the capital markets and then also in teleconferences that there was no indication for changing the assessment of the Management Board on the predominant probability of losing the lawsuit regarding the Postbank takeover. Now, I will not quote the English phrase from that.
Now, these assessments of the two board members, were they known to the internal legal department and external lawyers, and did they concur with these assessments? Were there any internal conclusions or also by external law firms like Hengen and Müller that respective provisions should be formed while at the same time potential damage claims have been considered possible against such law firms? Have these actually been also exercised? Who produced these expert opinions? For what reason have no provisions been set up for the litigation risks in the Postbank appraisal proceedings in 2024? Have such expert opinions been reviewed in terms of plausibility by the respective management bodies? Was the view of the internal legal department on this obtained? If so, which members of the Management Board and Supervisory Board asked for this internal feedback?
The issuance of two new benchmark tier one bonds or the non-exercising of the call right with another Tier 1 bond in spite of doubling of the interest rate until 2033 in the last quarter 2024 and the first quarter of 2025, also regarding the ongoing risk from the Postbank takeover in order to be able to pay out a dividend at the AGM 2025 or to exercise the share buyback as announced in late March 2025? If so, which additional interest will the bank have to carry from these bonds up to the next respective call date?
Did the board members Sewing and von Moltke still maintain their view expressed in late March in the investors' conference, namely according to which the statements of the court senate at the oral proceedings in Cologne were entirely a surprise to them, whereas the Federal Court of Justice in December 2022 had confirmed the bank's view up to that point? Until 26th of April 2024, the bank's Management Board did not have any indication that there is a need to set up provisions for the Postbank proceedings. Do you still maintain the view after having once again read the respective statement of the ruling of the Federal Court of Justice and the respective German laws on security firms' takeover?
Did the current board members maintain their view and statements that they have provided in the current legal proceedings about the Postbank takeover without any reserve, considering the fact that the Higher Regional Court of July in October 2024 in its ruling considered a potential conditional fault in violating German laws and German regulations on the basis of the Postbank takeover, which started in 2008? From the very beginning, but at the latest during the course of the respective proceedings, the Management Board members should have become known of these facts. Now, I've got seven more questions. Can I ask them?
If you can do it in one minute.
I'll try what I'll do in one minute. I'll try to be faster, even.
Now, the previous board members mentioned, considering the comprehensive know and the contents of the aforementioned takeover agreement of Postbank and related further arguments, do they still maintain that their statements are true regarding the related risks and requirements for balance sheet disclosure? How does this fact tally with the obligation of Management Board members to carry out due diligence? Up to what time? Did, after the BGA ruling of 13th of December 2022, the Management Board retain the law firms Hengeler and Müller to represent them in the court and the Hanfland lawyer to analyze the respective ruling in spite of these parties had clearly to be considered biased regarding the question of whether the probability of the bank winning the court being more than 50% or at least 50%? What is the summarized result of the analysis of Hengeler and Müller?
Does the Management Board maintain its statements made in May 2024 at the AGM provided by Dr. Seemons' statement, namely that possible damage claims in connection with the former consultancy activity of Hengeler and Müller as part of the management takeover Postbank in the period 2008 to 2010, that possible claims of the bank due to statute limitation are protected by respective agreements by the bank that would toll such limitations? To what extent have potential damage claims against management body members been verified and with what result? Has the D&O insurance of the bank been notified of this? To what exact amount was in the last quarter of 2024 provisions set up, and to what amount for potential fines and interest rates can they be allocated to the Cologne-Hau Regional and the Regional Court? Three more questions.
According to the statements made by the bank, about EUR 400 million from the overall provisions of EUR 1.3 million can be released due to settlements with individual claimants. My question is, what is the exact amount of the release of provisions so far, and how does this breakdown regarding the two legal proceedings at the Higher Regional Court, and how does this breakdown regarding the suspended proceeding at the Higher Regional Court in terms of principal amount and interest rates?
Mr. Freitag, we now need to—
I have got 20 more seconds.
All right, you have got 20 more seconds.
What cost does the bank expect regarding the refinancing costs? Which cost does the bank expect after the complaint against the denial of leave appeal has been rejected by the Federal Court of Justice, and which costs have so far been in court as part of the provisions set up of EUR 1.3 million? To what extent have interest rates costs already been incurred? Also taking into account that from a tax point of view, these interest rate payments cannot be deducted. I wasn't able to go any faster says the speaker, and the interpreter is very sorry for having tried to keep up with that massive speed. Yes, I'm sure that you will answer all of the questions, Mr. Winkeljohann. You will answer all of them very much completely. Yes, of course, we will, says Mr. Winkeljohann. Yes, and you will do exactly as the law requires.
Thank you very much, Mr. Freitag. Before we continue with the next speakers, I had just announced that you are going to close the speakers list, and it's 2:46 P.M., and the speakers list has just been closed. We now continue with Matthias Gebler. I'd like to ask Ms. Katharina Stieg and Annika Rittmann to get ready. Mr. Gebler, you've got the floor.
Thank you, Mr. Winkeljohann, for giving me the floor. You surprised me a little, but the next AGM is going to be taking place in person. The first question would be, was that a voluntary decision, or have you been keeping a close eye on these resolutions that failed at TUI and Siemens, and that there's going to be in-person AGMs there? Or were you just trying to avoid that? Siemens argued that they do it technologically because they're a technological company.
It would have been desirable, Mr. Winkeljohann, Mr. Sewing, you had decided for next year to have a hybrid AGM because you could also avail yourselves of the respective technology. Of course, you'd say that things are perhaps legally borderline, but I don't actually know what the problems would be. At least it would be worth a shot, wouldn't it? Now, a technical point, Mr. Winkeljohann, I think it's a little bit difficult. Before I was even able to say my first statement, you closed the speakers list. You don't know what my questions are. You don't know what responses are going to be given. What happens if I have a query about that? Can you tell me about that? I really don't think you can prohibit me from being able to speak again.
I think, okay, the first responses were very comprehensive, but the question now is which of the questions of the first speakers of Block did you already have the questions for? Because it seemed like you already had some of the questions. Now, the fact that I'm speaking to you today is because of my ire today, because often you respond to my questions with nonsense. Last year as well, it was just empty words, husks. I think it's a bit of a liberty to not respond in precision. That's why I will now come back to some of those questions, in particular regarding the question of the checking account for Deutsche Bank and Postbank, particularly for corporate customers. I addressed this last year, and I will address it again this year, Mr. Winkeljohann.
For certain legal entities, it's not possible to open a current account for corporate customers, Deutsche Bank or Postbank. It's not possible for a German AG. It's not possible for a German Genossenschaft, and it's also not possible for a German Stiftung, a foundation. The interesting thing is that if you call the Corporate Bank hotline, you're not even asked the name of the company because the question could be, "Oh, well, you don't have the creditworthiness." They're just not interested. It's generally just objected to with those legal forms. Why is there such discrimination against certain company groups where you don't offer them a current account? That's made me incredibly angry because I got the information last year that you would not do that, allegedly, but I can prove that that's incorrect.
Mr. Winkeljohann, I was asked last year to call the hotline, and I asked you to call the hotline. After about four or five minutes, you might be lucky enough to get somebody on the phone. I thought about whether I might actually just call up today live during the AGM so that you can actually get an impression as to how you just basically ignored there. Now, I would like to ask you, Mr. Winkeljohann, to call the hotline and pretend to try and open a corporate current account as one of those legal forms. I would also like to ask all of the other members of the Supervisory Board to do that. How many of you have already done that? Did they all get the same response as I did as an end customer?
What would the members of the Supervisory Board wish to do to put an end to that discrimination? It sounds a little schizophrenic, because by the same token, no single DAX company would, at the current moment in time, be able to open a normal current account at the Corporate Bank, at Deutsche Bank or Postbank. I hope that I get a better response to my question. How many of the DAX 40 companies have an account with Deutsche Bank or Postbank, at least one current account in the Corporate Bank? I would like a response to this. I would imagine that normally all of those would be there. That is a historic reason. With the software change at Postbank, why were these criteria, which are not comprehensible to me, introduced? I simply do not understand this.
Now, a technical question regarding a change of the current account for a private customer. So we need some sort of declaration that is requested by you. Is that requested for a change of account inland, or is that only requested for the opening of a new account? I'd appreciate a response to that. That brings me to a couple of questions about AI. I would like to know where Deutsche Bank thinks they'll be in five years, how the Deutsche Bank will change, and what investment volumes are suspected to be required for the future, and what the anticipated results will be for Deutsche Bank. To what extent are further headcount reductions expected for Deutsche Bank in Germany? We are aware of this from the automotive industry. We can see tens of thousands. Is that finished at Deutsche Bank, Postbank?
How many civil servants, Beamte in German, are still in the ranks of Deutsche Bank and Postbank? I would like to know the employee fluctuation. How has that been categorized? Have we had retirees and any mutual settlements and severance, and how much expenses were there? How many people have over $180,000 annual gross salary, and how many people have a collective bargaining agreement, and how many changes were there, and what were the changes year-on-year compared to last year? I would also be interested to know which institutional shareholders you have had discussions with, Mr. Winkeljohann, and the other members of the Executive Board and the Supervisory Board, so with whom you have spoken to and about what now regarding.
That which are the greatest gainers, gains and losses for these and those loss companies. What are you going to do to be able to get them back on track towards profit? The question of the sustainability reporting: what effort and what benefit do you expect there as Deutsche Bank, and what do you think the additional financial expense will be for the sustainability auditing? I've heard that it will be a six-figure sum just for the sustainability reporting, and I have to say that a corporate auditor is perhaps not best qualified to be able to assess sustainability. I must say I was a little bit surprised by that as to whether that really is good, and I'd be also interested to know what the fee would be for such a CSRD, Mr. Winkeljohann.
You're from that sector, so perhaps you can explain to me what the benefits would be for you, for me, from this SF audit. I won't tell you, I don't want to embarrass you. I don't want to go into figures that nobody else would really be able to comprehend here. Now let's just go for a quick wander through politics. What do you expect from politics, from the political sector, Mr. Winkeljohann, Mr. Sewing, and your colleagues? What do you expect from the current government? Do you have any expectations whatsoever? Now, you said that the number of orders with German, with Deutsche Bank has been dampened by the new political climate. Now, we have all these different officers, we have officers for disability and for youth and children and so on and so forth.
How many statutory officers do you have within your company, and what are the costs affiliated with that? What further education and further qualification measures were involved in that as well? One curiosity that I'd just like to refer to that I read in a magazine: apparently there is also a management officer—I've never heard anything about that—an executive, executive officer, or rather a ladder, excuse me, a ladder officer. I've never heard of anything so unusual in my whole life, so perhaps you can also refer to that. Interpreter apologizes for the slight mistake there. Also, the U.S. political clown, what influence will that have on Deutsche Bank, financing customers and the export business as well, and to what extent have you considered that in your scenarios? Also the virtual AGM.
Now, you have gone a bit further, but why do you not actually voluntarily provide more interactive options? I've already suggested doing that, having some sort of chat so that people can interact with the other shareholders. Beiersdorf has demonstrated that that isn't impossible, that it's not that expensive. You know, a company that produces Nivea skin cream surely should be able to do, if they can do it, then Deutsche Bank should be able to do that as well. I would hope that voluntarily you would be able to involve more digital options. Now, Mr. Winkeljohann, I think I'm just about within the time. Thank you very much to all employees who have generated this good result for all shareholders, and I now thank you for your attention.
Yes, spot on. Thank you, Mr. Giebler, for those statements. That brings us now to Ms. Katharina Stieg, and then I would like to ask Ms. Anika Rittmann and Mr. Tilman Massa to be in the wings ready to speak. The floor is yours, Ms. Stieg.
Thank you, Mr. Winkeljohann. Ladies and gentlemen, my name is Katharina Stieg, and I represent Ribbeck Brauerei von 1862. Now, Mr. Freitag has already addressed the most important points in this regard, and I wish to completely concur with what he said on behalf of the shareholder that I represent, and I do not wish to take any more of your time unnecessarily. I just have one remark that I would like to make in conjunction with what you said at the beginning of the AGM, saying that you were so merciful in having an in-person AGM at least every four years. I really must express my absolute objection to this. Are you so audacious?
You seem to be too scared of interacting with your shareholders, but please at least be confident enough to have an in-person AGM at least every two years to have a personal dialogue with your shareholders and hear their concerns and worries. That was it from me. Thank you very much for your attention. Goodbye.
Thank you, Ms. Stieg, for your rather concise contribution there. I would now like to ask Ms. Rittmann to take the floor and then ask Mr. Massa to be waiting in the wings and also Ms. Petra Lieselotte Georg. Ms. Rittmann.
Yes, thank you for the opportunity to speak to you today. Ladies and gentlemen, my name is Annika Rittmann, and I am representing Fridays for Future. First of all, I would like to say thank you to the critical action that they have allowed me to speak today. First of all, I'd like to address you with a question that I was also asked last year, namely, how much money have you invested in your climate goals for 2050 in fossil fuel projects? We did not get a response to that last year, so I'd like to repeat that question this year.
Perhaps there has been a change there with your new goals because the calculation is pretty easy. Every euro that is sent to fossil projects makes our world unsafer. At the moment, you invest and finance day by day fossil expansion and thus oil corporations like Total and Exxon Mobil, who are so fossil, fossil that they have their own marketing departments and they do not even drift away from that. That brings me back to what Mr. Sewing said. Again, it was about attitude and that it is not just a question of words but also actions. What actions are you talking about here, I wonder? If you want to be measured by your words and your actions, based on your actions, my only conclusion can be that you have no interest in changing anything.
I think lots of people are here for the same reason as me. Now, some people may say that you are being taken to task too hard, but six years down the line after this was first addressed, the world has changed fundamentally. We live in a world where the consequences of climate change are tangible for every single person in the world. I could go into more detail about that, but I think everyone already knows. Now, let me talk about the contrasts that we are talking about. Over the last six years, we've seen massive changes, and we have nevertheless, in those six years, had the impression that you're in a stasis. Despite all of your pledges and promises, the balance is clear.
You invest in the fossil system, and the costs are borne by other people at first glance: people who are losing their homes due to flooding, people who are being displaced due to the building of pipelines, people who have to change their way of life fundamentally. Perhaps, even if you may not believe it, those people who live on the continent that is most affected by global heating. You talked about this figure of EUR 93 million that you've invested, but what you haven't told us is what you actually understand as sustainable financing. I hope you don't mean the investment in gas, because gas is one of our core problems, and I think everybody who's looked at electricity prices realizes. I would be interested to know what your strategy is.
If your sustainability strategy only exists on paper, not in portfolios, then it's not actually a strategy. It's just greenwashing. I'd like to know what this EUR 93 billion of sustainable investment really means. What yardsticks are applied there? How do you advise your customers, particularly your retail customers? Is there a sustainability emphasis in your consultancy? How much was invested into fossil projects in 2024? How are they financed, and what percentage of your overall investment volume do they constitute? To see that Deutsche Bank isn't that far away from greenwashing, it only takes a look at DWS. We've already heard about this for months. We have heard about your subsidiary being faced with a fine for an unspeakable volume. I'd like to know how this all marries up.
My question to you: at what stage is a fossil investment no longer marriable with your sustainability strategy? When and to what extent has the Supervisory Board in the past financial year looked at sustainability? If they have not, why not? Are there binding limits or criteria for the Executive Board set by the Supervisory Board, or are they free to do what they want regarding investment volumes into fossil projects? If there are limits, how high are they? One final point, if I may. You say that you stick to the 1.5-degree goal, but your business tells a different story. I would like to just finish with the last few questions.
How can you justify the fact that Deutsche Bank again finance billions in fossil projects, but you still claim to want to stick to the 1.5-degree and you are financing Total Energies and Exxon Mobil, who are still pursuing fossil goals? Do you still think that your 2050 goal is ambitious enough? If so, why? How much money do you intend to invest into fossil projects like LNG terminals and pipelines? Do you think that you are still adhering and complying with your responsibilities according to the Paris Treaty? There is no justification for postponing any of this. Nobody expects you to solve this by yourselves, but the expectation that you fulfill your responsibilities and do not continue to finance fossil projects is quite clear. You may not continue to pack your investments in these pretty green packagings.
Please, anybody who decides to invest or finance fossil projects is destroying the world. Please finally turn your words into actions and take responsibility. Thank you very much.
Thank you, Ms. Rittmann. Now, Mr. Tilman Massa, and he will now speak to us. I would like to then also remind Ms. Petra Lieselotte Georg to be ready to take the floor afterwards. Mr. Massa, you have the floor.
Thank you, Mr. Winkeljohann. Ladies and gentlemen, Executive Board, Supervisory Board, my name is Tilman Massa, and I'm speaking today on behalf of the DACH Verband der kritischen Aktionäre, and we wish to request effective measures for climate protection. We have done that in past years as well. I would also like to talk about human rights today, and I would also like to refer to our counter proposals.
This year, we do not believe that we can ratify the Executive Board, particularly in respect to human rights. We cannot see that there are effective measures being taken there. First of all, a clear thank you to Mr. Sewing. Mr. Sewing, together with many other German CEOs, you signed a declaration which clearly stipulates your responsibility and shows that you have drawn your lessons from the history of national socialism in Germany. We have seen that you said that companies played a part in that, and Deutsche Bank was part of that as well. Eighty years after the liberation from fascism, this should have finally become cemented. Rather, this is put in prettier terms at Deutsche Bank.
However, to speak about human rights today, you've already heard that we have criticism about your sustainability, and we heard from John Beard earlier as to what that means in concrete terms. It's not just a question of coming out and withdrawing from those projects, but also checking what you have in your portfolio. You do this, but you're doing this on a completely voluntary basis. There is no legally stipulated due diligence in this sector for human rights, and your financial lobby that gets so much investment, much more than any lobby group elsewhere in Germany, and they are managing to nip all of this in the bud. We have worked and fought a long time at EU level for the financial sector to be brought into this as well.
Now, according to the Omnibus Project, it's a plan that there will be no regulation for the financial sector according to human rights. We've already heard this. Ms. Rittmann said this earlier as well, and I would like to hear about your particular position here, because your silence speaks volumes. We're not blind about what you're doing, but we need a level playing field. We need fair framework conditions for compliance with human rights. That's why my question to you is, do you not think it's detrimental for companies that also take good care of human rights, that if this civil rights liability and this commitment to sustainability is then basically decimated in this Omnibus Proceedings at the EU level? Companies don't do this; they're actually rewarded. As I say, the financial sector is probably going to be completely left out of this again.
Can you tell us, tell me one reason why the financial sector shouldn't be involved and shouldn't be having to comply with all of this just as much as anyone else? Of course, it makes a difference if you're sourcing raw materials, but nevertheless, you need to check who you're providing loans to, who you're providing credit to. Finally, the ECB has started to criticize in this direction. My question to you, could you not also make some sort of public statement and say that binding standards are really needed, particularly in the financial sector with regard to human rights? Now, of course, I know that you can't talk about specific customer relationships, but have you in the last year or in the ongoing year had to reject certain businesses because there have been businesses that have been involved in human rights infringements?
If yes, how many cases and how many requests, how many cases are we talking about in specific terms? Did you try and enter into dialogue? If so, yes. If so, with whom? In your supply chains, have you identified any infringements of human rights? If yes, which cases, and how did you react to those? Specifically as well, I'd like to know about Glencore. According to our latest information, you provided loans. However, in previous years, you were one of those German banks that until 2023 had provided billions in loans, even though there were very well-known human rights infringements, particularly in coal mining in Colombia. Do you take your responsibility for those communities affected in Colombia? If so, in what case would you be willing to be involved in compensation and damage claims, or at least for some sort of financing for restructuration?
Glencore is taking the Colombian state to court simply because they want to even address the question of coal mining. How do you deal with such customers who are quite clearly against any kind of climate protection measure in their very being? They take others to court because they are just interested in their climate protection. You do not have to talk about that customer in particular, but how do you deal with those customers in general who are so clearly infringing climate protection regulations? Also, with regard to our partner ShareAction, together with 51 other organizations this year, sent a letter to you to ask you about your business relations with PetroPeru in Peru. There are clear infringements here again against the free rights of authorization and acceptance of the indigenous peoples in Peru.
As we said in our letter, PetroPeru not only abused these rights, but also caused considerable pollution that has been responsible for huge detriments to the habitats and to food supply. Now, such damages should be forbidden. It would appear that you should be checking this in more detail. On behalf of ShareAction, will Deutsche Bank be providing more information as to how human rights were adhered to in the case of PetroPeru? Can you oblige to not providing any more financing to PetroPeru until such checks have been carried out? This has already been addressed too as well. The next point I'd like to talk about now, the costs for the financial annual statement and sustainability reporting also raises a number of questions. We'd like to put this in relation to the costs for your normal annual financial statement.
What were your full costs for your annual financial reporting according to the German commercial code? How much did you spend on your ESG reporting according to the latest EU standards, ESRS? Perhaps also in comparison to that, how much did you spend on marketing and advertising advertisement in the last year? Just one last point on the virtual AGM. Here I would like to raise our counter proposal again. We hereby object to the authorization that the Executive Board can make the decision on their own behest because if they are to decide on the format, then if anybody should be deciding on that, it should be the shareholders and not the Executive Board. We are completely at your behest. You say, oh, it might be all the branches. That is why in a nutshell, we have raised this counter proposal.
But again, this question in this regard, have you looked at this in specific terms as to whether you can carry out a hybrid AGM so that people can also take part fully digitally? What would be the additional costs there? What would your plans be for beyond 2026? Thank you very much indeed for your attention. I look very, very much forward to your responses. Thank you.
Thank you very much, Mr. Massa. The next speaker is going to be [Petra Lieselotte Georg,] followed by Mr. Kienle and Mr. See-Artur, who have already taken the floor. Mrs. Georg, the floor is yours.
Thanks very much. And hello to all of you. Now back to the topic of sustainability.
In the financial statement 2024, you set out that the Deutsche Bank, in order to reach the objectives of the Paris Climate Accord and the goals for sustainability of the UN, will make major contributions. Your contributions today also go into the same direction. I've taken notice of that. So far, so good. Unfortunately, we also read and hear about the opposite. The Deutsche Bank, together with its subsidiary DWS, supports Turtle Energies in exploiting a natural gas field in Mozambique. The field is going to comprise 5 billion sq m and is 40 km away from the coast of Cap Delgado. For this fossil project, nature is being destroyed and people had to be resettled. The acceptance for the projects in Lille amongst the local population is close to zero. Soldiers of the Mozambican army have to protect the entire premise.
At the end of 2024, Total invested $15 billion for the project to be implemented. I would like to know from you, how many funds did Deutsche Bank make available for the funding of this project? As I've already learned in the course of this AGM, you do not want to talk about individual projects separately, but I would like to know about this in a very general nature because the previous speaker already alluded to other projects. How many funds did Deutsche Bank make available over the course of last year for the promotion of fossil projects? In some more statements, Mr. Sewing, you might mention the fact that you can only advise and support the customers, but you have no influence whatsoever on the final decisions that they take. Of course, you do. You provide funding.
You do not have to provide loans if you do not want to. Therefore, my follow-up question concerning the fossil projects is, have you developed an exit strategy? If so, what does it look like? Thanks very much for your attention.
Thank you very much, Mrs. Georg. Now, on to speakers who have already taken the floor before. In order to carry out this meeting in the proper manner, I would like to ask the speakers to be brief. Mr. Gebler, I do not know whether you can hear us. You will be given the possibility to speak to us once again. I do not know whether your statements have already been covered during a press presentation. That is kind of the feeling that I got. Please let us know if you ask for the floor again. Now, on to Mr. Kienle, followed by Mr. Siotto and Mr. Werner. Mr. Kienle, please, you have the floor.
Mr. Chairman, thank you very much for the floor. I'll be brief. Mr. von Moltke, your response to my question with regards to missing the goal of 8% shares is how objective figures can be interpreted. We speak about special effects, and this is also including increased risk loan provisions. This is not a special item because the net interest revenues for which these last provisions were made were also set off. These are not really special revenues, but special items. We need to take note of that. You did not meet your return on equity goal, although you immediately eliminated the conventional special items. I also wanted to know in which segment the special burdens have to be entered into the books as a consequence of Bottbock.
You also said that in no other segment these costs can be allocated because this is something that happened at the group level. The DWS and all the other segments are completely independent, and this is why these are always acquisitions carried out by the entire group. The revenues from this acquisition, who should they be attributed to? To the Private Bank? No, therefore I think that the Private Bank should also be imposed with a special burden as a consequence of the acquisition of the Postbank as they occurred. That should maybe be also partly distributed to the Investment Bank because parts of the revenues generated by the Postbank could be used at least for the investment business. Please correct the response that you have given us because the answer that you gave us was not correct because these acquisitions are always group-wide acquisitions.
Now, please answer my question number three correctly regarding the capital costs. I wasn't able to write anything down. It would be very kind if you would stick to the content of your financial statement: Private Bank, Asset Management, Corporate Bank, and Investment Bank. I think it ranged between 0.5%-0.6% in its reductions. What I didn't really understand is why you cannot tell me that according to your plans, all the segments will lead to equity costs being incurred in the course of the next year because the equity costs after the end of the fiscal year will be published anyway. There can't be a big secret whether this will actually occur in the course of this financial year. Now, let me quickly flick through my list of questions. Is there anything else that I'd like to mention? No, I think that was it.
Thanks very much for your attention. Thanks very much, Mr. Kienle. Now, on to the next speaker, Mr. Siotto, and then I would like to ask Mr. Werner to get ready. Maybe Mr. Gebler. Mr. Gebler, please, you have the floor.
Mr. Winkeljohann, thanks very much. I've got some follow-up questions. I think in the statement on EY that you made, you made mention of the fact that lawsuits are being taken against EY, but DWS is not taking any legal action. The question is, how high are the disputes? If there are no DWS charges, how high are the burdens that the customers will have to pay?
An ongoing question is, wouldn't it be in the interest of our customers, of Deutsche Bank or DWS customers, to try to reach an amicable solution or a settlement with EY in order to help our customers as best we can? If the customers will not be helped, the question is, is Ritelli in compliance with our corporate governance strategy? How can this be aligned with our customer satisfaction strategy or customer expectation principles? Because it would not be in line with that as well. What happened in connection with the review of the special audit to be introduced for EY? Will the financial risk be assessed as being higher due to the limited liability thresholds and the limited order numbers given to EY?
An additional question is, have you had the possibility to cut the price at EY and negotiate a rebate if you want to continue to work with us? Partner at all, Beiersdorf, Deutsche Telekom, Zalando, Siemens, they all separated themselves from EY. Renewal of the contract is no longer possible, as we said.
Mr. Siot to, may I interrupt you, but there are still some responses pending before you keep on repeating your questions again and again. Please wait for the responses, which will be given to you in a minute.
Okay. I think that the first person submitting the proposals will also be allowed to ask the questions. No, a lot of responses are still pending. Please forgive me. Maybe you do not want to. No, no, no. We appoint auditors on an annual basis for a period of one year.
I thought that EY was going to be appointed up until 2030. If that's not the case, please forgive me.
Now, back to Mr. Werner. Please be brief. The floor is yours.
Thank you so much. I've got to subscribe to Mr. Gebler's point of view. Not one of my questions has been answered so far. Where is the right to ask follow-up questions? If you close the list of speakers, the answers will be given to you in a minute. As in any regular Annual General Meeting, at a certain point in time, the list of speakers will be closed. This has just happened. Why don't you wait for the responses to your questions that will be given in a comprehensive set of answers? If these responses will be provided to us, how can I ask for a follow-up question?
Leave it be that as it may. I was under time pressure last time, so therefore I wasn't able to ask the following question: virtual AGMs. I would like to know about the number of attendees during the last in-person meetings, at the beginning, at the peak values, and at the end. How about the attendance rates of the last virtual meetings? Please do not give us the amounts of the share capital attending, but the number of persons. With regards to this AGMs, let us know how many people attended at the beginning and what the maximum number of participants was in the course of the meeting. I understand that you're trying to build up pressure, but we are wasting a lot of time by going through this meeting in an orderly manner. This is provided for in the German Stock Corporation Act.
I think not having the possibility to ask follow-up questions is something that I really disliked about the Bayern meeting. Because since I was given complete responses to all my questions, I was not given the possibility to ask follow-up questions. Telecom, Hochtief, Mercedes, EON managed to go in the particular fashion. An institution of this size and this significance as Deutsche Bank would do much better in making sure that this is being made possible. Please elaborate on this in greater detail because this is not very in support of virtual AGM because it feels like a Zoom meeting on a Friday afternoon, which is something that cannot really be taken seriously. That is not really doing you a favor.
T hanks very much, Mr. Werner. I don't know if there is anybody else on our list of speakers. That doesn't seem to be the case.
Okay, ladies and gentlemen, now we've worked our way through the list of speakers. Thanks very much for your contributions. Now we will continue with a new round of responses to the questions. Let me ask Mr. Sewing to begin. Questions and responses have been answered, and responses have been prepared. The other board members will support Christian Sewing.
Thank you very much, Norbert. Let's start off with Mrs. Richter. Thank you very much for your question concerning the publication of our Gas and Oil directive and the way in which we deal with corporations in this sector, which spend. You are also wanting to know whether the emissions of loans in the Oil and Gas sector will be made dependent on the exit of Oil and Gas projects.
As I already mentioned in connection with my sustainability statements, we have updated our Oil and Gas directives and made it public. Due to the changed global environment, legal risks have got to be recited. In my statement, I also made mention of the fact that particular projects will no longer be provided with funding. It is impossible to exclude all the companies from the energy sector. Many CO2-intensive sectors are very important to bring about the transformation and make investments in green technologies. Therefore, apart from green funds, we as a bank want to support these companies in the process of transformation actively. If we stopped funding companies involved in CO2 and incentives, we would miss out on our decisive role to fund the transformation in the important energy sector.
Mrs. Richter, you asked if and whether the danger of physical climate risks will influence loan activities in certain regions. Can we provide you with numbers and to which extent have loans been abolished due to natural disasters and in which countries has this been the case? Yes, Deutsche Bank is using very particular tools for risk assessment in order to identify physical climate risks of the world over. These analyses are part of the impact assessment and therefore the risk evaluation. Risk management and sustainability are two areas which cooperate closely with insurances and reinsurances in order to gain more insight into these new types of risk assessment. The risks for the balance sheet so far have not yet had a major repercussion on our performance. Scientific findings seem to indicate that climate-related damages in the next few years will increase in numbers.
This is why we will have to pay special attention to physical risks. Mrs. Richter, you asked whether Deutsche Bank will maintain its membership in the net zero banking and aligned NZBA, even though other banks might not prefer to do that. You also want to know whether a deviation from our 1.5-degree target will have an impact on our net zero approach. Mrs. Richter, we welcome the fact that the NZBA, in coordination with its membership banks, including our bank, has agreed to a reform in order to support its members as best it can in order to play a significant role in the fight against climate change. It is important to emphasize in this context that irrespective of its NZBA membership, Deutsche Bank continues to be committed to its sustainability goals as well as its approach in the field of climate and environmental management.
Our CO2 management is an integral part and parcel of our strategic positioning and of our risk management system, as already mentioned in the beginning. It also reflects the statutory and regulatory requirements in our European home market, and it helps us to support our customers on their path to a climate-friendly and well-resource-friendly business model. A deviation from the 1.5-degree goal has no impact on our decommodation strategies for CO2-intensive sectors that focus on the 1.5-degree scenario of the international energy agencies. Mrs. Richter, you wanted to know whether business in connection with coal in the framework of our internal transparency requirements of thermal and metallurgical coal will be tracked and traced, where we review the relationship between businesses in the field of thermal coal and metallurgical coal and the projects that we support accordingly.
We track and trace the financial Scope 3 emissions in coal mining and hewer disadvantage between thermal and metallurgical coal utilization. In the course of the year 2024, we funded 4.6 million tons of CO2, 2.4 million tons of which were allocated to thermal coal, and 2.2 million were generated by metallurgical coal use. Our directive for the mining sector covers the extraction of metallurgical coal. Mrs. Richter, many thanks for your question regarding the mountain top removal. Please bear with us that also on the occasion of this AGM, we cannot follow your request to provide you with detailed information about potential or future customer relationships. Let me emphasize, we consistently stick to our directives for our ecological and social due diligence obligations. They also include the direct funding of mountain; they exclude the funding of direct mountain top removing.
We always review projects in the mining sectors based on our existing principles on ecological and economic due diligence obligations. This also includes mountain top removal activities. Mrs. Richter, thank you very much for asking a question about our directive for maritime protection and the protection of sensitive maritime areas. You wanted to know whether our provisions will be extended in connection with the Back Blue Initiative. During the course of last year, elaborated on its directive on maritime protection, we newly introduced four example binding provisions for maritime transportation and the maritime infrastructure. Furthermore, the bank is not going to fund any deep-sea mining projects any longer directly. More information can be found in our framework agreements on the ecological and social due diligence obligations on our website. Your questions concerning the bond issuance for the Philippines and Michael Corporation, I'd like to say the following.
Please bear with us that we cannot provide you with more detailed information on existing or potential customer relationships. You can be assured that in certain sectors, our business activities will be subjected to ecological and social due diligence reviews. Wir kommen zu weiteren Fragen, und ich beginne. We will now move on to the next questions, and I will start with the questions raised by Frederike Potts. Dear Ms. Potts, thank you very much for your questions concerning the possibility of general exclusions of oil shale and fracking. Our Oil and Gas policy already includes several exclusions. As I already said in the starting statement, we are currently checking the update of our Oil and Gas policy with you to legal risks, and we will inform you about the details once the updated policy is published.
Dear Mrs. Potts, you also asked about our progress regarding our Oil and Gas target and why this goal seems to be less ambitious as other sectors and what speaks against a faster carbon reduction in the Oil and Gas sector. We have set ourselves the goal to reduce the financed emissions in the Oil and Gas sector by 2030 by 23% and by 90% until 2050, measured in million tons of CO2. This is an absolute reduction goal that also limits our activities in this sector more and more. Not all banks have a carbon target path that is measured in absolute tons in the Oil and Gas sector. The financed emissions in scope 3 in the Oil and Gas sector at the end of 2024 were 18% below the base value of 2021.
Dear Ms. Potts, thank you very much for your question concerning our coal policy and whether we plan to adjust our ambitions to the ambitions of DWS. Our policy for powerplant coal covers companies if they make 30% or more of their revenues with powerplant coal, in thermal coal. In addition to this threshold, all companies fall under this policy if they produce more than 10 Mt thermal coal per year or have a capacity to produce more than 10 GW of electricity from coal. We plan to stick to this based on our net zero goal for coal mining. We have committed ourselves to reduce our engagement in the coal sector in general, and we are on a good path.
With the threshold values for revenues and absolute production amounts and our decarbonization trajectory for the coal sector, we think we are well positioned in order to control our engagement in this sector in a responsible manner. Dear Mrs. Potts, you asked whether we are planning to have a plastics policy. The topics circular economy and plastics are already playing a very important role in our ecological and social due diligence checks. We are not planning to have a separate policy on plastics at present. Dear Mrs. Potts, you asked whether we are planning to define decarbonization goals for further carbon-intensive sectors, for example, chemical industry, agriculture, aluminum, and when the shareholders can expect this. We have already comprehensive goals for these sectors, and they are material for the bank. There is only one path that is still missing, and this is commercial real estate.
Here, the methodology is under development. All other sectors are not providing so many emissions that it would be necessary to have its own goals. Dear Mrs. Potts, you want to know whether Deutsche Bank will sign the international treaty on ending plastics pollution. In recent years, we have signed many self-commitments, for example, the Back Blue Initiative, on the basis of which we have strengthened our policies on ocean protection, and we feel that we are well positioned. With a look at declarations and self-commitments, I would like to say in general that all the declarations or self-commitments that we sign need to be checked regarding the concrete impacts in order to avoid potential contradictions or even the risk of greenwashing. This is a very difficult process. In so far, we cannot sign any declaration or self-commitment, even if we think that basically the content is right.
Now, Ms. Potts, I think we come to your next question and the last one that I will answer to you. Dear Mrs. Potts, you raised a question concerning deep-sea mining, and you want to know in detail whether we are planning for the future to expand our policy and to provide only earmarked financing to companies that are involved in deep-sea mining. In a second step, you ask us to expand our policy to general corporate financing. We are following all the political discussions and the scientific debate on the impact of deep-sea mining, and this includes the discussions at the level of the international agency on this topic. At present, we are not planning to expand the deep-sea mining policy to general corporate financing. Let me now continue with the questions asked by Philippe Dias.
Dear Mr. Dias, on your question regarding our attitude concerning the current regulatory developments, especially the so-called omnibus process, Europe needs strong but also efficient and more effective rules. For this reason, we welcome the fact that the European Commission has put a focus on the simplification of the general regulation framework. The omnibus package is one example of this, and this will contribute to the competitiveness of the economy in the EU and also support the implementation of the Green Deal. Dear Mr. Dias, you also want to know how we assess the suggestion by the EU Commission not to pursue sector-specific reporting standards. In today's environment, we think that it is necessary to simplify reporting standards in order to avoid excessive complexity.
However, we also say that the European Sustainability Reporting Standards allow for flexibility in order to give the financial sector the possibility to have meaningful reporting. Dear Mr. Dias, you would like to know whether Deutsche Bank is in favor of the continuation of double materiality for sustainability standards. Transparency on the impact, risks, and opportunities connected with the business activity of companies is an important prerequisite to give stakeholders the possibility to make informed decisions. In this context, we are in favor of keeping up the double materiality, but on the other hand, we also plead for simplification and more guidelines for the implementation of the rules. Die nächste Frage, the next question, dear Mr. Dias, you would like to know which concrete advantages Deutsche Bank sees in an early implementation of ESG standards, both for internal control and also for the external effects.
As sustainability is a material part of our banking strategy, we think that it is a big advantage to early implement the ESG standards and to integrate the relevant data in group control. The best example is our carbon management with eight sector-specific target paths, and this is also coupled to the compensation of the Board of Management. Also, in the early implementation of the European Sustainability Reporting Standards, we see advantages by additional transparency. Mr. Dias, you asked about shareholding of Deutsche Bank in Elbit Systems. We already made a statement on this in the past. Deutsche Bank does not have and never had any participation in Elbit Systems. The shares were trading positions or positions on behalf of our customers. H ere another question on this matter, dear Mr. Dias, we have understood that you ask about risks that stem from investments in companies such as Elbit Systems. As I already mentioned in my statements on sustainability, I ask for your understanding that in this AGM, again, we will not provide any information on potential or existing customer relationships. Mr. Dias, you also ask about our steps if Israel is sanctioned by the International Court of Justice. This is a theoretical question which is not to be answered at this current point in time. Please bear with us that we will not make a statement on this topic. Ich komme zum nächsten. Now I come to the next block of questions, and now I will answer the questions raised by Mr. Gutbrodt. Dear Mr. Gutbrodt, thank you very much for your questions on the emissions of commercial real estate.
You want or housing estates. You would like to know whether we want to update our report and what further steps we plan. Thank you for your praise. We are not planning any updating right now, but we are reporting about decarbonization of our portfolio for private housing in our sustainability declaration. We do not have a clear target path because there are many external factors that cannot be influenced by our customers or ourselves, including, for example, the scope of state funding. Another question by you, Mr. Gutbrod. You asked about our attitude regarding the developments in the net zero banking alliance, what we will do in the future, and what other directions could be pursued by global initiatives. We have received several questions on this topic, and we have already said in our answer to Mrs. Richter, that we are welcoming the reform of the Net Zero Banking Alliance. Additionally, I would like to say that the NZBA can develop, after the reform, into an important representation of interests of banks in the implementation of carbon management. What is decisive, however, is our regulatory framework in the European Union concerning the management of physical and transitional risks. I move on to the next questions, and here I would like to address the questions raised by Daniel Michael Werner. Mr. Werner, you asked about our cooperation with the Tony's company.
As I already mentioned when I talked about sustainability, I would like to ask for your understanding that in this AGM, again, we will not provide any information on existing or potential customer relationships, but I would like to underline that we always stick to our policies and internal guidelines, also including guidelines and policies on ecological and social due diligence checks. Mr. Werner, your next question is how Deutsche Bank is represented in ethical commissions internally and externally. Deutsche Bank has several internal bodies that deal with ethical aspects without calling them ethical commissions. Apart from that, the bank is also represented in external commissions and initiatives focusing on ethical questions. Die nächste Frage The next question was raised by Mr. Werner. Dear Mr. Werner, you asked about the attitude of Deutsche Bank regarding state controls and regulation.
Of course, Deutsche Bank thinks that state controls and regulations are necessary, but at the same time, the international competitiveness of Germany and Europe needs to be improved, and regulatory disadvantages need to be reduced. This is why we support a balanced approach in regulation. This brings me to the next question asked by Mr. Werner. You asked about Cum-Ex and Cum-Cum business by the bank. Deutsche Bank did not do any own Cum-Ex business, but in the past, we always said that Deutsche Bank has made financing and banking services available to customers that were involved in Cum-Ex business. This financing for customers is seen critically by Deutsche Bank, and we are cooperating with investigations of the investigation authorities. Deutsche Bank has already looked into the topic of Cum-Ex, and you will find further information on this topic in our Annual Report starting on page 541.
Regarding the Cum-Cum business mentioned by you, capital gains tax was checked relating to securities business of the bank, and we did not find any indication that we ever infringed any legal requirements. Another question asked by you, Mr. Werner, you asked whether the bank invests into research projects to replace plastics and what the possibilities of the bank are to support research. Deutsche Bank has business relationships with many companies in industries that intensively deal with the reduction of plastics and the promotion of a circular economy. We now come to the questions to be answered by James von Moltke. Thank you.
I've got another question by Ms. Richter. She talked about the withdrawal of insurance companies from regions which are specifically vulnerable to natural disasters, and you asked whether we consider this in our risk assessment.
An appropriate insurance protection for buildings is part and parcel of our lending processes. The insurance requirements are monitored on a continuous basis. Generally speaking, Deutsche Bank obtains its insurance coverage and takes insurance coverage and increasing insurance premium into the stress scenarios and in the assessment of credit risks. Findings from this can lead to adjustments of the risk strategy or to further requirements related to individual loan decisions. I then continue with questions by Ms. Frederike Potts. Ms. Potts, you asked whether Deutsche Bank in its analysis of business with Transult also took exports of the company to Saudi Arabia, Qatar, and the United Arab Emirates. Please understand that at this AGM, we once again will not provide any information on potential or existing customer relationships.
Questions regarding funding or non-funding of certain projects by the bank will generally not be commented on by us. What applies in general, however, is that as part of our due diligence obligation, we analyze all of our transactions on a case-by-case basis. This also applies to transactions related to the defense sector. As part of the individual case decision, we take the geopolitical situation of the recipient country into account, and countries which are involved in conflicts are given special attention. If we have any concerns related to certain transactions, these will be analyzed as part of an enhanced due diligence review, and if in doubt, we also deny a transaction. Ms. Potts, you also wanted to know how Deutsche Bank is handling companies manufacturing weapons which are banned by international law and whether there are any plans to exclude such financing or ring-fenced loans.
Deutsche Bank condemns the use of controversial weapons and has got a respective policy which bans the direct financing of controversial weapons. This is based upon international conventions and bans which are also anchored in German weapons law. As controversial weapons in the context of this policy for Deutsche Bank are cluster ammunition, anti-personnel mines, and ABC weapons, as well as other controversial conventional weapons, as are defined, and now I quote, "In the convention on the prohibition or restriction on the use of certain conventional weapons which may be deemed to be exclusively injurious or to have indiscriminate effects in the version of 21st of December 2001." Potts, you also asked which weapons are considered controversial by Deutsche Bank and whether incendiary bombs, phosphorus bombs, white phosphorus, and blinding laser weapons also come under this category.
Deutsche Bank defines controversial weapons on the basis, and I once again quote, "on the basis of the convention on the prohibition or the restriction on the use of certain conventional weapons which may be deemed to be excessively injurious or have indiscriminate effects in the version of 21st of December 2001." This also includes blinding laser weapons and incendiary weapons. Furthermore, the following weapons are considered controversial by Deutsche Bank: cluster ammunition, anti-personnel mines, and chemical, biological, and nuclear weapons. Sehr geehrte Frau Potts, you asked how Deutsche Bank is dealing with defense companies which do not supply their products not only to EU armed forces and what we think about purely specific purpose funding and the idea of defense bonds for supplies to EU armies.
Now, based upon existing policies and the applicable law, we have been and are still supporting German and European defense industry with funding solutions, and we also consider this part of our special responsibility. As part of our due diligence obligation, we analyze the geopolitical situation of the recipient country in every individual case, the involved goods, the final benefit, also the final users of a transaction. If you have any concerns, then we perform an enhanced due diligence review, and if in doubt, we also reject potentially a transaction. Regarding any financing types, we, of course, try to comply with the specific demand of customers in order to provide targeted solutions. This also includes the possibility to use defense bonds. These are subject to the same policies and reviews like all other transactions and customer relationships in the defense sector. We now continue with one question by Mr. Gutbrodt.
Dear Mr. Gutbrodt, you asked about the selection of the sectors with net zero targets and the related targets. Now, this question has already been covered by Mr. Sewing in his statement on the subject of sustainability. Let me nevertheless emphasize once again that the sectors that you have mentioned are the eight highest emission sectors in our corporate loan book. A nd then two more questions by Mr. Kühn y ou asked for more detailed information on the netting of liabilities and receivables in our balance sheet for reverse repos. One netting possibility basically arises from the requirements defined in IAS 32. All in all, the effect from netting receivables and liabilities from repo and reverse repo transactions at the end of the year 2024 amounted to EUR 230 billion.
Now, EUR 140 billion of this were accounted for by bilateral agreements, EUR 81 billion by central counterparties, and EUR 1 billion for transactions held to maturity where the underlying collaterals were short-sold. Mr. Kühn, you also asked whether repo and reverse repo transactions held to maturity where the underlying collaterals were short-sold were netted against each other and on which IFRS standard this was based upon. As of the end of 2024, as already mentioned, a netting effect to the amount of EUR 1 billion was accounted for by these types of transactions using the prerequisites defined for netting as defined in IAS 32. This then brings me to some questions by Mr. Werner. Mr. Werner, to your questions regarding microplastics, the protection of our employees, and the environment and our vehicle fleet. Protecting our employees is a top priority for us.
We apply numerous actions in order to ensure a safe and healthy work environment. This includes regular inspections and actions to ensure a safe and healthy work environment, such as hygiene measurements, clean air measurements, and drinking water measurements. Regarding the second part of your question, we would like to mention that we as lessors and holders of vehicles do not have any direct influence on the developments and possible technological improvements. Here we have to rely on manufacturers complying with the respective legal requirements and the requirements on national and international levels. Mr. Werner, you asked about plastic manufacturing or plastic processing companies in the sustainability funds. Basically, we do not have any specific sector exclusions related to plastics manufacturing and processing in the funds managed by DWS.
The sustainability criteria and the respective exclusions of the investment universe have been described in the sales brochures which are handed out before a contract is signed. Mr. Werner, you wanted to know to what extent we are using AI in our business operations. Now, we have already commented on this in our answers to Mr. Thomae and Mr. Schäfer. In a nutshell, we expect that in the future, AI will become part and parcel of almost all aspects of our operations. Next question by Mr. Werner. You asked how many jobs will be created or eliminated by AI. The use of AI offers the possibility for employees to accelerate recurring manual activities, which means that they can focus on value-add tasks, such as providing advice to our clients.
This also means that requirements profiles will change and that new skills will be required. For that reason, generative AI will also create a lot of new jobs. Mr. Werner, you asked about our assessment of the risks of AI regarding cyber attacks and also the risk of possible failures and faults occurring in complex processes. We monitor and analyze potential cybersecurity threats and the related threat situation very closely. Doing so, we also monitor and assess new technological developments, such as the use of artificial intelligence for phishing attacks, social engineering, and so-called deepfakes. In the context of our AI initiative, we have also set up a supervisory forum for artificial intelligence where all of our control functions are represented.
Furthermore, as part of our market risk management for stock exchange transactions, we continuously monitor the trading activities, and we set detailed limits for the various investment categories based upon a range of stress scenarios. Mr. Werner, you regarding your question on the use of artificial intelligence in drawing up our Annual Report. Deutsche Bank uses a large number of tools and software in drawing up its Annual Report and continuously analyzes and assesses new tools and software. All of this also includes AI. Mr. Werner, you asked whether we are involved in AI research projects or whether we are investing in them. Through our corporate venture capital program, we invest selectively in FinTechs and technology startup companies. In this, the focus is on strategic venture capital investments in companies which develop technologies for banks and financial services.
Amongst others, in 2024, we acquired an equity interest in Aleph Alpha, which is Germany's most important AI startup company, which has evolved in various research projects on AI. Now, through this cooperation, we want to further exploit the huge potential of AI for the financial industry. Mr. Wern er, you asked about the risks stemming from power blackouts. Deutsche Bank has got comprehensive plans and actions that were defined with a view of potential energy blackouts in relevant buildings. Therefore, power supply of the bank has been always secured at any time worldwide. Mr. Werner, you also wanted to know what our view on the defense industry is, which investments are to be expected, and whether these are ethically acceptable.
Regarding the subject of defense, we generally feel that the defense industry is an important pillar protecting our country and also our European partners in the alliance, and of course, also protecting our democracy. Based upon the current changes of the German basic law, the constitution, and also due to the Rearm Europe initiative of the European Commission, we expect business to pick up in the European and German defense industry, which we are going to support within the framework of our existing policies and the applicable laws. We do so by providing funding solutions. Several shareholders have already asked about this, and we have stated that as part of our due diligence obligation, we review all of our transactions on an individual case basis, and this also applies to transactions related to the defense sector. With that, I hand over to Alexander Wynaendts.
Thanks a lot, James. I continue with some more questions by Mr. Werner. Mr. Werner, thanks for your questions about cash supply. Deutsche Bank and Postbank jointly operate the leading cash supply network in Germany. This includes our own branches, locations of the cash group, and further third-party partner locations. We have further expanded that network in the year 2024. Postbank clients, since November last year, have got the so-called cash code available as an option, which allows them to withdraw and deposit money up to EUR 1,000 at 12,500 locations. For Deutsche Bank customers, that service will be introduced in the course of 2025. Together with the ATMs of the cash group, our clients have got a network of more than 17,000 locations in the Federal Republic for free cash supply. Thus, we overcompensate the effects from exiting the cooperation with Shell.
Mr. Werner, you asked about the inclusion in our Postbank online banking offering. Online banking is already accessible to a large extent, and in the last couple of weeks and months, further improvements in terms of accessibility will be implemented. We attach great importance to the fact that we offer our customers an inclusive and accessible access to our products and services. Customers with visual impairment, for example, can already today use the readout function of the browser in the online banking app. Mr. Werner, in the context of AI, you asked to what extent our company is using commercial chat programs, which alternative solutions are being used, where the unauthorized use of such solutions is subject to penalty. Now, for internal use, we have provided to our employees Office 365 Copilot, amongst others.
Other AI applications, apart from those authorized by the bank, must not be used for professional purposes, and if that is done, nevertheless, this represents a violation of internal policies, which may lead to respective consequences. Mr. Werner, you also asked how we make sure that customers, when they are in the waiting queue, are forwarded to a human employee if AI is used in that process. Now, the use of AI does not mean that there will be no contact to human employees. Quite in contrast, the use of AI will and can help to connect customers to the right employees, who will then be able to deal with their matter in good time. Mr. Werner, you asked about our view on the benefits of cryptocurrencies for normal users, and you also asked whether cryptocurrencies are part of sustainability funds.
Cryptocurrencies are used for various purposes in daily life and also as an investment possibility, and there is also respective demand. This has led to cryptocurrencies also being used by our corporate customers and also by some institutional customers. For that reason, our Corporate Bank will offer to use digital assets in a fiduciary account, and currently, we are in the process of application for respective licenses. In the volumes of sustainable funding of Deutsche Bank, cryptocurrencies are not included. Investment in cryptocurrencies is basically not excluded for sustainability funds of DWS. The investability of certificates in cryptocurrencies is based upon the respective assessments of the sustainability criteria of the individual cryptocurrencies and the sustainability preference of the funds, which are defined beforehand. Danke auch für Ihre Frage. Thanks also, Mr. Werner, for your question about the ethical responsibility in the Postbank towards elderly customers.
With its Digital and Personal Advisory Solutions, Postbank is very well prepared to offer support and advice to customers of different ages. Indeed, here we feel a particular responsibility to help elderly customers get accustomed with new digital offerings and solutions. For that purpose, we have trained and hired a number of digital coaches in the Postbank branches, and that number is certainly more than 100 employees. Last but not least, Mr. Werner, you asked about the role of our customer business and cash transactions. Deutsche Bank is clearly committed to the cash and customer business for private customers with the so-called omnichannel approach, as explained before. That omnichannel approach includes personal advisory, digital services, and also telephone-based support. All of these three are to be combined in an intelligent manner through this approach.
It is our goal to be able to offer all customer groups, irrespective of age and digital affinity, to offer them reliable, accessible, and high-value banking services, including cash supply. With that, I hand over to Norbert again. Oh, excuse me, back to Chr istian Sewing.
Thank you, Alex. I shall continue with the questions. First of all, a question from Mr. Beard. You wanted to know whether Deutsche Bank acknowledges the right to clean air and whether Deutsche Bank believes that people ought not to be sacrificed for profit. You also want to know if we check and inspect investments in LNG terminals for their poor effects. Mr. Beard, thank you very much for taking the time to personally participate in our AGM and to tell us the situation where you are from your perspective.
Deutsche Bank is committed to universal human rights and aligns its actions to acknowledged human rights standards, which also address health aspects. Now, whilst we cannot make any statements about potential or actual customers, I would like to emphasize that in project financing, as a signatory of the Equator Principles, we do carry out a comprehensive environmental and social due diligence. This also includes an independent inspection of the environmental and social effects of the project, the identification of measures to mitigate any risks and effects identified, and monitoring of the measures agreed upon. We carry out on-site inspections as well as part of this inspection. The next question that I would like to broach is from Louise Wagner. Ms. Wagner, thank you for your question about the financing of companies that are active in the production of fossil fuels.
You specifically wanted to know according to which conditions we no longer provide financing. You also asked about the introduction of comprehensive exclusions for companies that are expanding in the Oil and Gas sector. In my statements on the question of sustainability, I spoke about the status of the update of our Oil and Gas policy. I also answered some of these questions answered by Ms. Richter from Urgewald. Just to summarize again, given the changing environment, we have to look at the legal framework conditions in specificity. That's why we cannot now tell you when our updated Oil and Gas policy will be entered into force. I also emphasize that we will not fundamentally exclude companies even if they are still active in CO2-intensive sectors.
In addition to our environmental and social policies, our assessments of the physical and transitory risks, as well as our net-zero goals, have an influence on our commitment in CO2-intensive sectors. I would now like to address some questions raised by Mr. Tilman Massa. Mr. Massa, you asked a number of questions, including about our opinion about the simplifications as part of the omnibus process and whether we see a disadvantage for companies who take special care of human rights and climate protection. We welcome fundamentally the omnibus initiative because this particularly seeks to help medium-sized enterprises to fulfill regulatory reporting provisions. It's not a question of eliminating regulation in climate protection and human rights, but rather putting the focus more on the significant requirements and information so that everything remains within proportion.
Mr. Massa, you also asked about a reason as to why the financial sector ought not to have to comply with human rights-based due diligence obligations. There is already a whole host of international provisions for the compliance with human rights, such as the UN guiding principles for economy and human rights, and the European Supply Chain Due Diligence Act also. With all of its requirements, it would make the banking sector in Europe considerably more difficult and slow it down. Mr. Massa, you also want to know if Deutsche Bank would participate in compensation payments or programs for a socially and climate-based exit from coal in Colombia. Please understand that we cannot make any statements about particular companies or hypothetical questions. We are, however, keeping an eye on the situation in Colombia and are very aware of the situation of countries with big natural resources and raw materials.
We also see that there is a focus on greenhouse gas emissions. We see our responsibility and role to be that we accompany our customers in their transition towards a less carbon-intensive action. Mr. Massa, you also asked about the financing of projects or customers where there should be concerns about their environmental or human rights actions. In the past year, we had 817 transactions and customers in accordance with our provisions for the ecological and social due diligence, and they were assessed accordingly. Fifteen cases were then rejected. Please understand that we cannot provide you with any details to these cases. I can, however, tell you that as part of our inspections, we did also enter into dialogue with customers and do so on critical questions. You can find further information in our ESG due diligence, in our sustainability declaration, in the report of 2024, as of page 70.
Mr. Massa, you asked about the expenses for advertising in the past financial year. In 2024, marketing expenses of the group amounted to EUR 149 million. Mr. Massa, my last response to your questions. You would like to know if we've identified any human rights infringements in our supply chain, our added value chain, and how we dealt with that. In 2024, we carried out a risk assessment of our suppliers in accordance with the applicable laws, and this assessment did not provide any pointers towards significant human rights risks in these sectors. The analysis takes into account any pointers towards human rights infringements that we are made aware of through our complaints channels. Regarding our customer business, we adhere to the UN guiding principles.
I've already said that in the last year, we had 817 transactions that were subjected to an environmental and social due diligence inspection. We will not, however, provide specific details as to which cases were involved there. I would now like to continue with my responses, and that brings me now to Mr. Matthias Gebler. Mr. Gebler, you asked about the effects of U.S. politics on our business. We have already addressed and explained this in a number of answers to other shareholders' questions. Of course, these developments are always permanently included in our risk and scenario analyses. Mr. Gebler, you also asked a question regarding the hybrid AGM format, and we are happy to tell you that an AGM in hybrid format would lead to considerably greater expenses and additional complexity in the preparation and performance compared to a purely virtual or an in-person AGM.
Regarding the costs of an in-person AGM, we would have, on top of that, the technical costs for interactive online participation. Moreover, the legislature in the Stock Corporation Act has provided a very detailed regulatory framework for two basic formats. A hybrid AGM would be outside of those frameworks, and that would then also lead to considerable legal uncertainties. For those reasons, it would be impractical to carry out a hybrid AGM. Coming to the next question of Mr. Gebler, you asked how many bank clerks are employed at Postbank. At Deutsche Bank, there were, at the end of 2024, a total of 3,132 bank clerks employed. Mr. Gebler, you asked about the scope of the planned headcount reduction in Germany.
Now, the current measures include the optimization of the branch network of the bank, as well as the reduction of less close customer areas, as well as further efficiency increases. That also has to be done in cooperation with the employee representatives. Therefore, I would like to ask for your understanding that we can't provide you with any more details about this. That brings us to a further question from Mr. Gebler. This was regarding employee fluctuation. In 2024, a total of 8,444 employees left the bank around the world. 789 employees retired or went into partial retirement. 5,330 employees left the bank of their own volition. 1,961 employees left the bank in mutual agreement. 364 employees left the bank for other reasons, for example, because employment contracts had come to an end.
As you can see in the report for 2025, on page 681, the overall amount for severance payments was EUR 405 million. Mr. Gebler, you also asked about the number of employees that earn more than EUR 180,000 in financial year 2024. 11,575 employees had an overall remuneration of EUR 180,000 or more worldwide. Mr. Gebler, a further question that you raised was regarding pay scale employees in 2024 and the development there compared to the previous year. In Germany, in 2024, 55.7% of all employees were pay scale employees. We're talking about 1.8 percentage points less than in year 2023. Just to repeat, 1.8 percentage points. Mr. Gebler, the next question that you raised was regarding the legally prescribed officers at Deutsche Bank. Deutsche Bank appoints and employs a number of officials and officers in accordance with legal stipulations.
They include officers for OSH, occupational safety and health, and first aid, evacuation, and fire assistance. We also have officers for the promotion of equality and equal and rectification of discrimination, human rights, data protection, and IT security. We also have officers who fight fraud, and we're talking about several thousand officers. We also have further education measures. Mr. Gebler, I've never heard about a ladder officer in this bank. Mr. Gebler, you asked about our expectations of politics and the current German government. We hope that there will be a clear economic policy agenda to increase growth and competitiveness, and that that will put the focus on that. The coalition contract does include important points for urgently needed structural reforms, for example, on the employment market to reduce red tape and also looking at taxes, of course, for energies.
For our family-owned companies and middle to medium-sized enterprises, these reforms have to be implemented quickly and consistently to then get us on the right track here in Germany. That brings me now to Mr. von Moltke.
Yes, thank you. I would like to first refer to the question posed by Mr. Kienle regarding corporate and other. In this transaction, it was an extraordinary interest for the group, and these are effects that are the responsibility of the group. At the time, it was the group management that made the decision, and the central division, corporate investments and other bank-specific matters are also dealt with there, which are a result of group decisions and which cannot be allocated to the various divisions. Also, the segmentation of the bank since the transaction has changed significantly. Thus, an allocation to the various current divisions would not be expedient.
Mr. Kienle, you asked once again to hear about the costs of capital for our different divisions. The costs of capital are currently in the Corporate Bank 9.5%, in the Investment Bank 10.2%, in the Private Bank 10.1%, and Asset Management 10.4%. Now, regarding a query from Mr. Kienle, you were asking about our ROTE in 2024. As we've already said, that was a 4.7% on our ROTE. That included non-operating costs in conjunction with restructuring and severances, as well as litigations of EUR 2.6 billion. Without taking into account these non-operating costs, we were talking about over 8%. To come to the questions from Mr. Gebler. Mr. Gebler, you asked about our AGM format for next year. As has already been stated, the ordinary AGM next year, 2026, shall be held in person. This is, of course, assuming that an in-person event will be possible.
The performance of an in-person AGM was a voluntary decision by the company, by the bank. Mr. Gebler, you asked about which shareholders had already submitted questions in advance of the AGM today. Some shareholders do send questions to us in advance, and we do then prepare for them. However, only those questions that are actually raised in the AGM are responded to. For reasons of data protection, we shall not state the names of individual shareholders. Mr. Gebler, you wanted to know how AI will change the bank in the coming five years. We have already made our statements in this regard in our answers to Mr. Thomie Schäfer. In a nutshell, we assume that AI will become an integral part of almost all aspects of our business. You also asked as to how much we invest in AI.
The focus of our AI program is on safe and value-creating use of generative AI. We shall not disclose how much we have specifically invested in AI. As part of our overall technology strategy, in the last year, we have invested over EUR 1 billion in what we call our Change the Bank initiatives. This also includes the migration to the cloud, the simplification and modernization of our technology landscape, the generation of new applications in all business divisions, as well as the implementation of AI. Mr. Gebler, you asked about the three companies which had the biggest profits or losses. You also asked what Deutsche Bank does in case of companies making a loss. Now, we're talking about those companies with the biggest DWS Investment GmbH, DB Beteiligungs Holding GmbH.
The three entities with the biggest loss were Postbank Filialbetrieb AG, the DB Investment Services GmbH, and the DB Versicherungsmanager GmbH. Deutsche Bank aligns its profitability initially according to business divisions, and thus that is all embedded in the overall strategy. Mr. Gebler, you also asked about the expenses and benefits of the sustainability reporting. The questions about the financial expenses and financial effort for the auditing of the sustainability reporting have already been responded to, and Christian Sewing already responded to the sustainability declaration in his sustainability statement. We fundamentally welcome data transparency that is provided by sustainability reporting. Mr. Gebler, you asked about the costs of the ESEF, the European Single Electronic Format Inspection. I would like to draw your attention to pages 600 and 713 of the report for 2024.
There we have, under the title Significant Inspection Fees and Performances, listed the fees that were payable to EY GmbH & Co. KG, Wirtschaftsprüfungsgesellschaft and other EY entities. Mr. Gebler, thank you for your question regarding the role of a ladder officer. Now, at Deutsche Bank, the safety of ladders and step ladders, where they are indeed present, is regularly covered and checked by the Work Safety Inspection Department. There is no specific officer role for this. That brings me then to a question from Mr. Massa. Mr. Massa, you asked about the costs for the financial statement report according to the German Commercial Code and IFRS for financial year 2024 and for the European Sustainability Reporting Standards. Now, the internal costs for the activities in conjunction with the annual and quarterly financial statements and the sustainability reporting were on a low two-figure million sum.
The external costs were below EUR 1 million, and the costs for initial consultancy costs for sustainability declaration were a low one-figure million sum. These key figures can be found in the report 2024 on pages 600 and 713 and include these costs. The inspection costs for the sustainability declaration can also be found listed as part of the costs stated there for inspection-related costs. I can give the floor back to Christian. Thank you, James. That brings me back to a further question from Mr. Werner. Mr. Werner, you wanted to know about the participation numbers for the respective last in-person and virtual AGMs. At the beginning, at the peak, and at the end. You also wanted to know the participation numbers for today at the beginning and the current peak. Only those shareholders who log in via the shareholders portal are classed as participants.
Lots of shareholders go via the public livestream. From that definition, for the in-person AGM 2018, we had at the beginning 2,106 participants, 3,428 at peak, and 296 at the end of the event. At the in-person AGM 2019, we had 2,103 participants at the beginning, 3,352 at peak, and 555 at the end of the event. The virtual AGM 2023, we had 220 participants and 1,090 viewers in total at the beginning, 390 participants and 1,700 viewers in total at peak, and 50 participants and 570 viewers in total at the end of the event. At the virtual AGM 2024, we had 210 participants and 680 viewers in total at the beginning, 324 participants and 1,660 viewers in total at peak, and 70 participants and 612 viewers in total at the end of the event.
At today's virtual AGM, we counted at the beginning 244 participants and 1,202 viewers in total, and thus far, we have a peak of 365 participants and 2,158 viewers in total.
Let's start off with Mrs. Annika Rittmann first. Mrs. Rittmann, wanted to know w hat the EUR 39 billion of our sustainable funding and ESG pieces of equipment include and what kind of measures we apply to these particular ERDs? They mention EUR 93 billion in sustainable funds and ESG investments in the course of the year 2024 include loans, bonds, and investments. They are based on the criteria of both our guiding principles for sustainable funding and ESG investments, and therefore they are categorized as being sustainable.
These regulatory principles are publicly available on our website, and they include substantial information on the criteria on the basis of which we classify. Your next question, Mrs. Rittmann, comes here in a second. In the course of the year 2024, how much did we invest into the fossil industry and companies, and how much are we going to invest into fossil projects in the course of the year 2025? You also want to know whether our 1.5-degree goal for 2050 is ambitious enough, and how do we justify, nevertheless, apart from our net-zero goal, that we still fund companies that promote Oil and Gas projects?
In the course of my presentation on sustainability, I made mention of the fact that our self-commitment on zero-emissions up until the year 2025 are one of the basic pillars of our strategy for Germany as a signatory state of the climate self-commitments of the German financial sector towards the net-zero emissions. We have committed ourselves to reach that goal by 2045, but we're a global bank, and in many countries that we are active in, the year 2050 is considered to be far too ambitious. We are amongst those banks who have published an absolute CO2 goal for the Oil and Gas sector, as well as the coal sector, that is considered to be very ambitious by rating agencies and investors. Therefore, it is quite clear that due to the nature of these goals, we have to reduce the funding for these particularly emission-intensive sectors.
We don't know what the total amounts will amount to. It very much depends on the transformation to be brought about in this sector. The absolute scope 3 emissions and the higher our relative funding share in these corporations, the lower the funding volume will be possible. In the course of last year, the lending to companies working in the fossil sector has declined significantly in the Oil and Gas sector. At the end of 2024, we had a total of EUR 5.6 billion and only EUR 7 billion at the end of 2023. In the coal sector, it was EUR 0.6 billion at the end of 2024, after EUR 0.7 billion in the previous year.
I would once again like to draw your attention to the fact that not only our objectives, but also the assessment of the physical and tangential risks, as well as our net-zero goals, have an influence on our commitment and CO2 incentive sectors. Our path has been clearly decided on. I've already mentioned several times before why we think it is possible to provide funding to, why we exclude funding to corporations only in exceptional cases, because if we separate us from them, we can no longer exert influence on them. Mrs. Rittmann, you asked questions concerning the funding of corporations in the oil sectors. You will know when we refuse to fund companies that invest into the expansion of fossil fuels.
You would like to know whether we are in compliance with our obligations in the framework of the Paris Climate Accord when we fund LNG terminals and pipelines. In the course of my presentation on sustainability, I already spoke about the way in which we deal with transactions in the Oil and Gas sector and already answered several questions in this context, also questions that were asked by Mrs. Richter from Urgewald. Let me repeat once again, it is our approach in rather general terms to support the transformation of our customers. In this context, we strictly adhere to and comply with our policies for ecological and social due diligence obligation. Apart from that, our decarbonization path and our commitment for CO2-intensive sectors will slowly but surely be put to an end. On to another question that was asked by Mr. Tilman Massa.
Mr. Massa, you wanted to know whether on the occasion of this AGM we will commit ourselves to binding human rights obligations on the occasion of this meeting. We've already received a similar question, but let me repeat once again, we've already committed ourselves to a whole lot of international conventions for the respect of human rights, such as the UN Guiding Principles for Economic Integrity and Human Rights, including the economy and the financial sector as well. Another question asked by Mr. Massa is, how are we going to proceed if our customers infringe upon any kind of climate protective measures and take legal action against entire states? As I told you before, we cannot comment on any particular potential customer relations.
We consider it to be part of our responsibility and role to support our customers in their transitional processes and support this with our economic activities if they are in line with our overarching sustainability codes. On to two more questions that were asked by Petra Lieselotte Georg. The first one of which is, how much funds did Deutsche Bank make available for the funding of Total Energies to exploit in a natural oil field in Mozambique? Furthermore, you would like to know how many funds were made available in the year 2024 for fossil projects. As I already said at the beginning of my deliberations on the topic of sustainability, we will not comment on potential or existing customer relationships. In my response to Mrs. Rittmann, I already explicitly referred to our commitment in connection with fossil projects.
Mrs. Georg, your follow-up question was, you wanted to know whether we've already developed an exit scenario for fossil projects. Similar questions have already been asked by several other shareholders, but let me repeat once again. We do not consider a general exit for corporations working in the industry sector to be meaningful, but it is a fact of life that several CO2-intensive sectors are important for the transformation and the investment in green technologies. This is why, apart from green funds, we want to support these sectors in bringing about transformation processes. Ending business relationships are the means of the last road if a company refuses to accept to bring about a transformation. Now, over to Alexander Wynaendts.
Thank you very much, Christian. Now, let's continue with a question by Anika Rittmann. Mrs. Rittmann, you wanted to know how we consult retail customers in connection with sustainability.
Deutsche Bank included sustainability aspects in the advisory services for private customers when ESG decisions have to be taken with regards to equipment, which is also a natural decision to be taken. In the advisory sections within the EU, sustainability preferences of the customers are being considered when it comes to the suitability test and the development of individual strategies. We support as advisory councils for our private customers with sustainable lending solutions in connection with commercial real estate and within the network of advisory services for energy-friendly refurbishments. Now, on to three questions that were asked by Mr. Gebler. Why isn't it possible for certain legal entities to open up a current account? As I already explained last year, we do not exclude any legal entities to open up current accounts with the brands of Deutsche Bank or Postbank.
Last year, after the meeting, we discussed these cases at length, but for data-proof reasons, we are not going to go into further detail. I would like to entertain this as an aside, but also do policy business. We have relations or regulatory requirements. We refuse to let customers open up current accounts, but we have all legal entities in our portfolio. If there are further unclarities, let us know about it, and we will clarify these matters after the AGM. On to another question asked by Mr. Gebler. You wanted to know about the number of DAX 40 companies which have at least one current account in our customer portfolio. I hope that you will understand that we cannot comment on this at all because it would provide too much additional information on additional customer relationships or DAX 40 companies.
With regards to the Postbank migration, I would like to mention that new additional criteria were introduced that would lead to the basic exclusion of certain forms of legal entities. Last but not least, Mr. Gabler, you asked a technical question concerning the current account and the necessary obligation to submit a factor declaration when changing current states. A factor declaration, which is called for according to the Foreign Account Tax Compliance Act, will become necessary when a new customer account, when a new customer relationship is being entered into. The same holds true for certain activities and a new address or the appointment of a potentiary abroad. When a customer changes the account, this additional declaration does not have to be given again. Now over to Norbert Winkeljohan .
Thank you very much, Alex.
Now, let me answer further questions on behalf of the Supervisory Board. Mr. Gebler, you asked for a follow-up right to take the floor after the closure of the speakers' list. Of course, we assume that we provide comprehensive responses according to the statutory provisions to the items on the agenda. Of course, if there are any complaints, feel free to let us know. You wanted to know whether and to which extent the Supervisory Board during the last fiscal year dealt with funds for fiscal activities. Furthermore, you wanted to know whether binding limits for criteria for the Management Board and the Supervisory Board for Investment, Molecules and Fossil Energy have been determined.
In our Supervisory Board, the Committee on Strategy and Sustainability is responsible for Environment, Social and Government Affairs, ESG, and it dealt with sustainability during its meetings in January and October. The sustainable funding volume, based on our policies and the framework conditions with a view to fossil energies and sectoral goals for Oil and Gas, were a very important issue. Deutsche Bank is obliged to reduce its CO2 emissions scope, one, three and four for that matter. We've determined net-zero goals by 2050 and interim goals by 2030 for the eight most coal-intensive sectors in its corporate credit book. We have introduced goals in order to be able to reach those objectives. In our Sustainability Report, in our financial statement for 2025, from page 300 onwards, we provide additional information on these net-zero goals.
Mr. Gabler, you wanted to know about the use of the ESEF review. I would like to answer the question as follows. The ESEF review is a career mind-blown based on the European Securities and Markets Authority, an institute of the German auditors in Germany. It is implemented in order to see to it that the auditors can evaluate with certainty that the ESEF documents comply with the legal provisions and statutory requirements. What is more is that the auditors check on the technical validity of the ESEF documents and whether it is possible to use it for an XHTML display, which is in line with the content of the audited financial report and the Audited Management Report. Mr. Siotto, you wanted to know about the financial risk arising from the limited liability capital and the order volume granted to EY.
As already mentioned, we have been convinced of the fact that EY is a suitable auditor. We also checked the performance of EY in connection with the audited financial reform, so therefore it is not necessary to change the auditor. Right now. Mr. Siotto, you also wanted to know about the lawsuit of DWS against EY. As already mentioned in our report, the criminal charges against EY, of DWS against EY, is not part of the audit of the financial statement at the end of a financial year. Mr. Werner, you had a question concerning the possibility to ask follow-up questions during the virtual meeting. Each shareholder, upon request during the AGM, provides information about matters concerning the company as well as as long as they relate to items which are on the agenda.
During the AGM, you also have the right to ask follow-up questions concerning the responses that were given by the Board of Management based on the Stock Corporation Act. The Chairman of the session can introduce the limitation of the speaking time or time to ask questions, and I made use of this particular right, so therefore there is no difference compared to a meeting held in person. Now, let's come to a question by Mr. Siotto. You asked whether we agreed to discount with EY against the background of the Wirecard lawsuit. As already explained, we have looked into the suitability of EY as an auditor at length. Then, Mr. Werner, again, you asked about the proposal to elect EY as auditor.
As already mentioned, there are no doubts on the part of the Supervisory Board that EY will conduct the proper audit of the financial accounts, consolidated accounts, the Sustainability Reporting, and the Interim Reports in line with all the requirements. Now, Mr. Gebler, you asked what types of discussions Mr. Wynaendts and I myself had with institutional investors in 2024 and what topics were discussed in fiscal 2024. There was a total of 14 discussions with one or the two of us, and they happened with institutional investors and proxies on the topics. I can tell you that it was the compensation system, the compensation report, the financial development of the bank, and the development of the share price. Apart from that, the litigation in the context of the Postbank takeover were also discussed.
Mr. S iotto, you asked about EY being proposed to audit our accounts and questions of the corporate governance in this context. As already mentioned in our statement, the Supervisory Board does not have any doubt that EY can do the audit of the financial statements, consolidated financial statements, Sustainability Reporting, and Interim Reports in line with the relevant regulations and with good quality. The election of the auditor and the suggestion to the shareholders and tasks and duties of the audit committee and the Supervisory Board. Both the audit committee and the Supervisory Board have made sure that the qualification, the scope of the audit, and the audit approach of the EY audit team guarantees a high-quality audit of the bank.
And then, Mr. S iotto, in the context of Wirecard and the DWS companies, you asked about the amounts in dispute. We cannot make any statement. As already mentioned, the proceedings from DWS against EY are made on account and on behalf of shareholders, and the proceedings and the process strategy are outside of the responsibility of Deutsche Bank. Mr. S iotto again, regarding Wirecard and the claims of the DWS companies, you asked more questions, and I would like to refer you back to the previous answers given to these questions. Mr. Ciotto, finally, you asked about how we assess the new legal entity of EY. As already mentioned in our statement, the Supervisory Board has reviewed the suitability of EY as auditor, and also regarding the financial performance of EY in the context of the audit, there are no doubts on our part.
And now I hand back to Christian Sewing. Thank you.
Thank you, Norbert, and I will start with questions raised by Karl Walter Freitag. Dear Mr. Freitag, you asked about the lawyers' costs for the ESG proceedings of DWS in the United States and in Germany. As of the 31st of December 2024, EUR 36 million were incurred. DWS, however, could also get refunds from insurance amounting to EUR 19 million. You also asked about possible claims for damages against the former board member. The Supervisory Board will, of course, look into this matter. Please bear with us. We cannot give you any further information on this. The next question was raised by Mr. Freitag, and it was whether Mr. von Moltke and/or other board members were informed about the internal complaints of a DWS employee and what activities were then, or what actions were then taken concerning possible whistleblowings. We cannot make any public statements. We and DWS as well encourage our employees at regular intervals to report possible infringements. All the information will be checked in accordance with clear rules and a documented process. Whistleblowers are under special protection. Regarding the special investigation, we would like to tell you that we cannot give you any information on our relationships with the regulator, but it is true that such a monitor by BaFin is a normal process and that the investigations can be carried out with or without special reason.
Mr. Freitag, you also asked whether the provision for the Postbank claims led to the situation that the bank did not achieve the return on tangible equity of 8% in the years 2022 and 2023. This is a hypothetical question that assumes that Deutsche Bank violated legal provisions in the decision about provisions. As already explained, Deutsche Bank has not provided any provisions before April 2024. The question what effect a provision in the years 2022 and 2023 would have had is thus not necessary. I come to another question by Mr. Freitag. You asked regarding a special investigation by BaFin and a potential fine to be paid in this context. Please bear with us. We do not make any comments regarding the existence or the contents of any special investigations.
A current fine that might be in the context of a very generically described special investigation by you is something we don't have any knowledge on. Mr. Freitag, you also asked whether the statement in the Investor Update in April 2024 regarding the possible success in the litigation of the Postbank takeover were correct. Yes, this was correct. Until the 26th of April 2024, the bank thought that it would be highly likely to win in the proceedings, and this risk assessment has only changed on the basis of the statements made by the Higher Regional Court. The next question by Mr. Freitag refers to the date of the opinion in the Postbank complex. The opinions and statements provided by the law firm Hengeler Muelle r bear the dates 23rd of January 2023 and 30th of January 2023.
The expert opinion provided by the law firm Allen Overy Shearman has the date of the 7th of March 2023. Mr. Freitag, dear Mr. Freitag, you asked why for the appraisal proceedings no provision of EUR 700 million was created. Deutsche Bank will not disclose whether there was a provision created for the appraisal procedures or contingent liabilities were shown. From the point of view of Deutsche Bank, such a disclosure could influence the result of the proceedings. The Board of Management and the Supervisory Board have checked the requirements for building a provision, and the audit committee and the Supervisory Board are always in contact with the auditor on this matter, and the auditor has never made any objections. Let us now come to the next question, dear Mr. Freitag.
It's the first question concerning your proposal to have a special investigation on the risk assessment by our internal and external consultants. No, this is not the case. There was no view that we would have had to create provisions for the financial statements 2022 and 2023. Next question, Mr. Freitag, regarding the question on the apparent statement by the Higher Regional Court that there was intent. It is not true that there was a general intent of Deutsche Bank, and we already made a statement on this in the course of this Annual General Meeting. Mr. Freitag, then we've got another question. You asked a question whether the board members Sewing and von Moltke stick to the statements made over the weekend of the 28th of April 2024 regarding the Postbank issue and the oral hearing at the Higher Regional Court.
We can assure you that the Board of Management before the 26th of April 2024 did see no reason to provide provisions, and we stick to this statement. Mr. Freitag, we then come to another question you raised. You again asked the question regarding the lawfulness of the balance sheet assessment of the Postbank proceedings. We already mentioned several times today that the balance sheet assessment of this question, especially the timing and the scope of the provisions, was always in order and still is, and we would like to refer you back to our comprehensive statement on the Postbank proceedings. Mr. Freitag, you asked about the basis on which the Hengeler Mueller law firm became active for the bank after the ruling by the Federal Court of Justice in December 2022.
The law firm was involved right from the start, and this is usual that the law firm gives regular statements on the proceedings, and there is no special decision taken by the Board of Management on this. As we already communicated next to the statement of the Hengeler Mueller law firm, we also asked Allen Overy Shearman to give a statement, and unlike Hengeler Mueller, the law firm Allen Overy Shearman is not involved in the current proceedings. This brings us to the next question, Mr. Freitag. You asked about a summary of the results of the analysis of Hengeler Mueller. As already explained, Hengeler Mueller also came to the result that before April 2024, there was a clear expectation we would win in this case, so it was not allowed to create any provisions. This brings me to the next question asked by Mr. Freitag.
You asked whether legal opinions were made under threats of recourse payments, and such allegations are something that we reject very clearly, Mr. Freitag. Mr. Freitag, you also asked whether we will stick to our information regarding the measures taken by the law firms, and you also asked about whether we would claim money from our board members. It is in line with the usual activities of Deutsche Bank to take precautionary measures if this is deemed required, but Deutsche Bank is still of the opinion that the decision by the Higher Regional Court in Cologne on the 23rd of October 2024 is wrong in fact and in legal respect, and therefore we don't ask the question concerning recourse to be paid.
Now let's move to two answers to questions raised by Tilman Massa. Dear Mr. Massa, you asked about the format of our AGM and the possibility of a hybrid meeting. We already made a statement on this to another shareholder. In brief, AGM in the hybrid format would be the most costly because it would have to meet the requirements for an in-person and for a virtual meeting. As already mentioned, we now intend to have regular in-person meetings in the following years. Another question raised by Mr. Massa. Your question relates to the company PetroPeru. You would like to know whether we provide information in how far the company is complying with the human rights standards of the bank and whether we will make financing conditional on the result of the due diligence.
Please bear with us that we cannot provide any information on potential or existing customer relationships, and we will also not prepare to make any statements on our due diligence. Our due diligence in the customer business aims at identifying potential negative impacts on people and their rights, and we also take into account the assessments of non-governmental organizations, customers, and external experts. Now over to you, Norbert.
Yes, before James von Moltke then answers the remaining eight questions, I would like to make the following statement. We are close to the end of the discussion, and we are getting closer to the voting procedure, so I would like to tell you that it will soon no longer be possible to make changes in the instructions given or the postal votes.
I would like to ask you to hand in your votes or your instructions in the coming minutes, and for postal votes also, there will be no longer the possibility to change your votes, and the postal votes will also be taken into account. Now, James, please.
Yes, coming back to a question by Mr. Kienle, you ask again whether all our business segments in 2025 will earn the cost of capital in the Corporate Bank in the first quarter 2025. We have a post-tax return on tangible capital of more than 40%. In the Investment Bank, it was roughly 18%. In the Private Bank, it was roughly 8%.
In the area of Asset Management, the return on tangible equity was at roughly 22%, and this means that all the areas with the exception of the Private Bank have earned their capital costs in the first quarter, and we feel we are well positioned to achieve our target of more than 10% return on tangible equity. Please understand that we cannot make any statements on detailed plans. I come to a question by Mr. Gebler. Mr. Gebler, you asked why Deutsche Bank does not offer any possibilities of interaction between the shareholders. The exchange and the possibilities for interaction with our shareholders are very important for us. In this year's Annual General Meeting, there were several interactive elements in the shareholders' portal of the Annual General Meeting in order to improve the interaction.
Examples are live surveys for feedback in real time or a virtual 3D branch, which provides further information on Deutsche Bank via video clips. Chat rooms we thought were less suitable. Now I come to a block of questions raised by Mr. Freitag. Dear Mr. Freitag, you asked why the claim of a former employee regarding obstacles to his career were not shown in the half-year report 2024, but only in the Annual Report for 2024. As you rightly said, the Annual Report 2024 disclosed that in the second quarter of 2024, a claim was registered in front of the German courts in this context. Unlike in the Annual Report, we do not report on litigation in the half-year report. The criteria that would make it necessary to disclose this in the half-year report were not given.
Mr. Freitag, you also wanted to know how high the provisions were that could be released. More than EUR 400 million in provisions were released, and this covers the proceedings in front of the regional courts. For the higher regional courts, there was only a very low amount in dispute. Mr. Freitag, you also asked about what costs the bank in turn incurred through the continuation of the Postbank proceedings after October 2017. The real costs of Deutsche Bank were based on lawyers' fees. Next to this, in the proceedings, there are interests to be paid in the legal amounts. The provisions that were created in April 2024 include interest of roughly more than EUR 300 million between October 2017 and April 2024. You also asked about the costs in the context of the non-admission complaint to be represented in front of the Federal Courts of Justice.
Deutsche Bank has to pay roughly EUR 300,000. The costs for the lawyers are based on the Compensation Act for lawyers and will amount to roughly EUR 600,000. How much will incur in terms of interest? It depends on the length of the proceedings. Deutsche Bank has created adequate provisions for the cost of the proceedings, including interest. Mr. Freitag, you asked whether the issue of two new benchmark Tier 1 bonds or the non-exercise of the call rights for a Tier 1 bond in the second half of 2024 and in the first quarter of 2024 was done on the basis of the fact that in the year 2024, a dividend payment was possible and the share buyback that was announced on the 28th of March 2024 could be done. This is something where we can answer no.
The issuing of the bonds and the non-exercise of the cancellation rights were done in the normal business and were covered by our normal business. Mr. Freitag, you also asked to what amount provisions were created in April 2024. The amount of the provision was EUR 1.3 billion, as reported, and covered any risk from the proceedings, including the proceedings costs and the interest incurred. Dear Mr. Freitag, you also asked about the legal assessment regarding criminal acts in the context of the Montagny-Pasquier proceedings. The bank in these proceedings always held the position that neither the bank nor the active or former employees committed criminal acts. This is still true, especially all the decisions in October 2023 were confirmed by the highest court in Italy. You also asked about the basis for the claims by the former employees against the bank.
We would like to ask you for your understanding that we cannot provide any information on current proceedings. We can, however, say that it was only one former employee who claimed against the bank. The former employee makes the bank responsible for alleged damage that he suffered because of the Italian criminal proceedings and his first sentence, albeit he was then released later on. This concludes all the questions and answers.
Thank you very much, James. I would like to thank the speakers for their questions and the members of the board for their answers, and I close the discussion. Ladies and gentlemen, I would now like to explain the voting procedure to you at today's AGM. Only the proxy of the group shall make the votes based on the proxies and instructions given to them.
Prior to the AGM, he collated his voting cards into an electronic collected voting card, and that is then defined in the electronic counting system. Until the closing of the change function of the shareholder portal, any changes that were registered by that will, of course, be taken into account and introduced into the accounting system. The change function is still available to you for a short while until I have then summarized the various agenda points of today's AGM. Of course, any postal votes that were submitted in advance of the AGM will also be put into our electronic counting system and will go in together to the results, together with any of the votes submitted by the proxy. We will again use the addition procedure today, so that means that yes votes and no votes will be counted.
Given the collated voting representation that we have today, I would like to just state what will be voted on. There is no resolution required for agenda item one. Regarding agenda item two, the use of the distributable profit 2024. The vote is to be taken as follows regarding the updated number. The distributable profit at an amount of EUR 2,258,260,562.17 will be used for the payment of a dividend of EUR 0.68 per share over the 1,933,618,495 dividend-eligible shares and for use of the retained profit of EUR 800 million. That is talking about EUR 2,114,860,576.60. The remaining amount of EUR 143,399,985.57 will be carried forward onto the new account. Agenda item three, ratification of the members of the Executive Board for financial year 2024. It is recommended that they be ratified for the acts of management.
This vote will be carried out individually in the resolution points 3.1 to 3.10 for the respective members of the Executive Board. Prior to the AGM, three shareholders lodged counter-proposals with the aim of not granting this ratification. In accordance with the announcement of counter-proposals, according to the Stock Corporation Act, section 1.26 has been published. Because they were submitted accordingly, they are now considered as being filed. Anybody who wishes to follow one of those counter-proposals should vote with no. Agenda item four, the Executive Board and the Supervisory Board recommend that the incumbent members of the Supervisory Board be ratified for their acts of management in 2024. Again, here we will have an individual ratification for each member of the Supervisory Board in resolution points 4.1 to 4.2.1.
Also, here there are three counter-proposals filed by shareholders, which also seek that the Supervisory Board members not be ratified. The same applies, as said, for agenda item three. Furthermore, the Supervisory Board, according to agenda item 5.1, recommends for the auditing for financial year 2025 and also for the limited review of the condensed consolidated interim financial statement for the 30th of June 2025. For any other interim accounts, it is proposed that EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Stuttgart be elected. In addition to this, according to agenda item 5.2, it is recommended that said company, EY GmbH & Co. KG, should, where necessary, be elected for the implementation of the Corporate Sustainability Reporting Directive for financial year 2025.
To that extent, the Supervisory Board shall only implement that resolution if, according to the CSRD Implementation Act, this is required for financial year 2025. Regarding agenda item five, I would like to also allude to what Mr. Roberto Siotto said, who objected to the election of EY, as well as to the suggestion from Mr. Hans Oswald to appoint KPMG instead of EY. We will come back to this if necessary. Agenda item six, the proposed resolution about the approval, according to section 162 of the Stock Operation Act, of the approved compensation report for financial year 2024. Agenda item seven, it's proposed the exclusion of the preemptive rights that the Executive Board and Supervisory Board be authorized to exercise said right.
Agenda item eight, in addition to agenda item seven, the Executive Board and Supervisory Board proposes the authorization of the company to use derivatives as part of their acquisition of own shares. Agenda item nine, the authorization for acquisition of their own shares for trading purposes. Agenda item ten, that a new approved capital increases in cash be created with the option for the exclusion of preemptive rights for broken amounts, as well as in the favor of option and convertible bonds, and the articles of association be amended accordingly. Agenda item 11, the authorized capital be amended that a newly approved capital be created for capital increases in cash according to the respective paragraph of the Stock Corporation Act and that the articles of association be amended accordingly.
Agenda item 12, the Executive Board and the Supervisory Boards propose that the company be authorized to issue participation certifications and other hybrid bonds which fulfill the requirements for additional Tier 1 capital for banks. Agenda point three, the election of four Supervisory Board members according to resolution points 13.1 to 13.2. Messrs. Gabriel, Witter, Moosmeyer, and Ms. Roth have already presented themselves personally to you today, and they are suggested by the Supervisory Board. One shareholder has made their own suggestions for elections. If you wish to follow this, then please vote no for the respective candidates. Should any of the individual candidates not get the required majority, we will perhaps come back to the other proposals. Agenda item 14, the proposal that the Articles of Association be changed to allow for the authorization of the Executive Board to provide for a virtual AGM.
I also would like to point out that there is a counter-proposal in this matter as well. If you wish to follow this counter-proposal, then please vote no here. Upon the request of the shareholder von 1862 GmbH, the resolution regarding the appointment of a special auditor regarding the setup of legal provisions in connection with the Postbank takeover, you can find additional information on our website. The Supervisory Board proposed and recommended that the AGM not vote for this. Finally, shareholder von 1862 GmbH also filed the resolution about the appointment of a special auditor regarding the setup of litigation provisions in connection with the litigations regarding foreign currency loans in Poland. You can also find more information about this on our website. The Supervisory Board has proposed to the AGM that this proposed resolution be voted against.
I would now like to ask the proxy to perform the voting instructions to the proxies, and amendments to any instructions given can now no longer be changed. I can also tell you that the respective affected members of the Supervisory Board and of the Executive Board have ensured that their shares, so when we're looking at the various agenda items that affect them, that they do not have a voting right there. They also do not have any direct or indirect voting rights for third parties. The same applies with reference to any current and former members of either bodies for agenda items 15 and 16. Finally, the pointer that there is now no opportunity to change voting for postal votes finishes with the end of the voting.
I now assume that the proxies of the company have been able to carry out the instructions given to them, and I shall now close the voting. Ladies and gentlemen, the determination of the results will take a few minutes, so we shall now take a quick break, and we will then continue with the announcement of the results. Thank you very much.
This is the first race of the 2025 season. Germany well positioned here. Eric Heil gave that German boat a race victory. Huge moment for the German CLGP team. Welcome to Dubai. It's great to be here again. I was very excited for the season ahead. To now be a co-title partner with the CLGP Germany team is absolutely fantastic. Let's talk about the new boat design. Absolutely love the new branding here. We, of course, increased the blue, and I think it's beautiful.
It coincides with Deutsche Bank's new brand launch, and we're very proud to see it on the boat for the first time this weekend. You brought to us this claim of rethinking performance sustainably. I think it's a beautiful claim that unites us. When we have partners, we really want to be at the heart of what we're trying to achieve together. It was a natural evolution, I think. Let's talk about the beliefs and the values that we share. I think one of the key ones is our thrive for performance. They now approach the finish line, done and dusted, as they say in Dubai. We're obviously making sure that our portfolios are performing, but I think also we want to be a high-performing organization.
Sustainability is something that's very, very important for us as a bank in terms of how we operate, but also very much from our client perspective. Some fantastic news coming out of Germany with the TV deal with ZDF. This brings the sport completely to a different level. For us, with 18 million clients in Germany now able to watch the racing, this is fantastic. We have the home event in Germany on the beautiful island of Rügen. It's one of the best sailing spots in Germany. We have a campaign, The Road to Sassenet, really bringing more and more story around what is CLGP to our client base. More to come on that in the next races. Success. We all want the formula. Is there one? The short answer is no. If you look deeper, you will find a profound truth.
No matter how bad the times or how good, no matter whether there is a global economic crisis or a boom, no matter how important the goal is or how modest, for the last 150 years and the next 150 years, there is one thing that always moves you forward, and that is dedication. It is the depth of our dedication, understanding, and expertise that helps our clients navigate an increasingly complex world, supporting the way they do business, opening doors to possibilities they did not know existed, and offering new perspectives to solve the challenges of tomorrow. We work with deep dedication so you can expand your opportunities. Dedication is not a formula for success, but it is the most important ingredient, and that will never change. Because where work earns money, dedication creates value. If dedication were a color, it would be deep blue. Deutsche Bank with deep dedication.
Every day, people follow their dreams of creating something new. Entrepreneurs shape change in their industries. Families build wealth for future generations. Investors foster innovation. This takes courage and a trusted partner who sees change as an opportunity and who is determined to drive this change with its expertise, foresight, and determination. We are that trusted partner supporting our clients with solutions tailored to their individual goals today and tomorrow. As a Global House Bank, our dedication to our clients has shaped our bank for over 150 years in 56 countries. Our purpose is clear. We are dedicated to our clients' lasting success and financial security at home and abroad. That's why our bank has consistently evolved. With our four-strong business divisions, we offer the right solutions for whatever challenges our clients face.
We support companies by combining our global reach with local expertise through tailored financing, payment, and trade solutions. Our Global Network creates lasting connections between clients, between markets, and between regions. We enable financing. We manage risks. We create new opportunities. For more than 20 million private clients, we provide the right support for whatever stage of life they're at. Our solutions range from standard financial products and loans to personalized investment strategies. We protect our clients' wealth and stand at their side with financial advice wherever they are in the world. A core element of our strategy is sustainable growth. We play an active role in shaping the transition to a digital and low-carbon economy, supporting investments into areas relevant and viable to our future.
We are guided by our deep dedication to the people who place their trust in us, knowing that our actions can create new opportunities for them. This is how we aspire to shape the future together. With deep dedication, your Global House Bank. This is the first race of the 2025 season. Germany well positioned here. I think Eric Heil gave that German boat a race victory. Huge moment for the German CLGP team. Welcome to Dubai. It's great to be here again. I was very excited for the season ahead. To now be a co-title partner with the CLGP Germany team is absolutely fantastic. Let's talk about the new boat design. Absolutely love the new branding here. We, of course, increased the blue, and I think it's beautiful.
It coincides with Deutsche Bank's new brand launch, and we're very proud to see it on the boat for the first time this weekend. You brought to us this claim of rethinking performance sustainably. I think it's a beautiful claim that unites us. When we have partners, we really want to be at the heart of what we're trying to achieve together. It was a natural evolution, I think. Let's talk about the beliefs and the values that we share. I think one of the key ones is our thrive for performance. They now approach the finish line, done and dusted, as they say in Dubai. We're obviously making sure that our portfolios are performing, but I think also we want to be a high-performing organization.
Sustainability is something that's very, very important for us as a bank in terms of how we operate, but also very much from our client perspective. Some fantastic news coming out of Germany with the TV deal with ZDF. This brings the sport completely to a different level. For us, with 18 million clients in Germany now able to watch the racing, this is fantastic. We have the home event in Germany on the beautiful island of Rügen. It's one of the best sailing spots in Germany. We have a campaign, The Road to Sassenet, really bringing more and more story around what is CLGP to our client base. More to come on that in the next races.
[Foreign language] Time, I've saved the results of the verdicts regarding Agenda Items 2 to 16.
I hereby say the results are adopted. As in the previous year, the exact information about the verdicts and the version of the verdict and the yes and no verdicts will be shown in the video transmission. You will therefore mainly hear me, but not see me, while I announce the results. In order to improve readability, you may wish to increase the window or use full screen mode. We will also give you the opportunity to take a look at the results. Votes will be made visible for everybody. I will simply limit myself to announcing the results of the verdicts and the required majorities. The presentation shown on the screen will be part of my resolution announcement, and I explicitly endorse them. The detailed results will also be made available on the company's website.
Following the announcement of the resolution, I would like to, I will close the AGM. Let me announce the attendance once again. The total capital of EUR 4,987,570,385.60 divided into 1,948,252,885 notably shares. 967,360,211 shares with the same number of votes are represented at today's AGM. This is 49.14% of the capital. In addition, absentee ballot absentee votes were cast for 77,148,957 shares with the same number of votes. If you include these votes, the total attendance is sent amount to 53.10% of the capital stock. Let me now turn to the results of the votes. Ladies and gentlemen, for every resolution, I will establish and announce as follows. Votes were cast regarding Agenda Items three, four, six , 12, and 14. The votes related to the resolution proposals from the Management Board and Supervisory Board and for Agenda Items five and 13.
The resolution proposals of the Supervisory Board as announced in the Federal Gazette of 30th of March 2025. Relating to Agenda Item two, the proposal for the appropriation of retained earnings published on the website of the company on 19th of March 2025, which includes the own shares made by the Management Board and Supervisory Board was formed to basis. Regarding Agenda Item two, appropriation of distributed profit for 2024 financial year, the resolution proposal from the Management Board and Supervisory Board was adopted with the required majority of votes. Regarding Agenda Item three, ratification of the active management of the members of the Management Board for financial year 2024, votes were cast for the individual members. The AGM ratified the active management of Christian Sewing with the required majority of votes. Regarding James von Moltke, the AGM ratified the active management for James von Moltke with the required majority of votes.
Regarding Fabrizio Campelli, the AGM ratified the active management of Fabrizio Campelli with the required majority of votes. Regarding Bernd Leukert, the AGM ratified the active management of Bernd Leukert with the required majority of votes. Regarding Alexander Wynaendts, the AGM ratified the active management of Alexander Wynaendts with the required majority of votes. Regarding Laura Padovani, the AGM ratified the active management of Laura Padovani with the required majority of votes. Regarding Claudio De Sanctis, the AGM ratified the active management of Claudio De Sanctis with the required majority of votes. Regarding Rebecca Short, the AGM ratified the active management of Rebecca Short with the required majority of votes. Regarding Professor Dr. Stefan Simon, the AGM ratified the active management of Dr. Stefan Simon with the required majority of votes.
Regarding Olivier Vigneron, the AGM ratified the active management of Olivier Vigneron with the required majority of votes. Ladies and gentlemen, on behalf of all board members, let me thank you for the trust placed in the board members. The counter proposals regarding Agenda Item three therefore do not apply and will not be voted on. Regarding Agenda Item four, ratification of the active management of the members of the Supervisory Board for financial year 2024, the AGM adopted resolutions on individual Supervisory Board members. Regarding Alexander Wynaendts, the AGM ratified the active management of Alexander Wynaendts with the required majority of votes. Regarding Frank Schulze, the AGM ratified the active management of Frank Schulze with the required majority of votes. Regarding Professor Dr. Norbert Winkeljohann, the AGM ratified the active management of Dr. Norbert Winkeljohann with the required majority of votes.
Regarding Susanne Bleid, the AGM ratified the active management of Susanne Bleid with the required majority of votes. Regarding Marie Clarke, the AGM ratified the active management of Marie Clarke with the required majority of votes. Regarding Jan Dusek, the AGM ratified the active management of Jan Dusek with the required majority of votes. Regarding Manja Eifert, the AGM ratified the active management of Manja Eifert with the required majority of votes. [Foreign language]
Regarding Gerlinde Siebert, the AGM ratified the active management of Gerlinde Siebert with the required majority of votes. Regarding Ingwer Slingstad, the AGM ratified the active management of Ingwer Slingstad with the required majority of votes. Regarding Stefan Zukalski, the AGM ratified the active management of Stefan Zukalski with the required majority of votes. Regarding John Alexander Zane, the AGM ratified the active management of John Alexander Zane with the required majority of votes. Regarding Jürgen Tischer, the AGM ratified the active management of Jürgen Tischer with the required majority of votes. Regarding Michelle Trogny, the AGM ratified the active management of Michelle Trogny with the required majority of votes. Regarding Dagmar Valcárcel, the AGM ratified the active management Dagmar Valcárcel with the required majority of votes. Regarding Theodor Weimer, the AGM ratified the active management of Theodor Weimer with the required majority of votes.
Regarding Frank Witter. The AGM ratified the active management of Frank Witter with the required majority of votes. Ladies and gentlemen, on behalf of all Supervisory Board members, I'd like to thank you for the trust you have placed in the Supervisory Board members. Thank you very much. The counter proposals for Agenda Item four therefore will not be voted upon as they have become in vain. Regarding Agenda Item 5.1, election of the auditor for financial year 2025, the AGM has adopted the proposal of the Supervisory Board with the required majority of votes. Regarding Agenda Item 5.2, election of the auditor for financial year 2025 for the sustainability reporting, the AGM has adopted the proposal of the Supervisory Board with the required majority of votes. The proposal from Mr. Oswald regarding Agenda Item five is therefore in vain and will not be voted upon.
The counter proposal regarding Agenda Item five will therefore also have become obsolete. Regarding Agenda Item six, resolution to be taken on the approval of the compensation report produced and audited pursuant to Section 162 of the German Stock Corporation Act for financial year 2024, the AGM has adopted the proposal from the Management Board and Supervisory Board with the required majority of votes. Regarding Agenda Item seve, authorization to acquire own shares pursuant to Section 71(1)(8) of the German Stock Corporation Act, as well as for their use with the possible exclusion of preemptive rights, the AGM has adopted the proposal from the Management Board and Supervisory Board with the required majority of votes and the qualified capital majority.
Regarding Agenda Item eight, authorization to use derivatives within the framework of the purchase of own shares pursuant to Section 71(1)(8) of the German Stock Cooperation Act, the AGM has adopted the proposal from the Management Board and Supervisory Board with the required majority of votes. Regarding Agenda Item 9, authorization to acquire own shares for trading purposes pursuant to Section 71(1)(7) of the German Stock Cooperation Act, the AGM has adopted the proposal from the Management Board and Supervisory Board with the required majority of votes.
Regarding Agenda Item 10, cancellation of authorized capital pursuant to Section 4(5) of the Articles of Association, creation of new authorized capital for capital increases in cash with the possibility of excluding shareholders' preemptive rights for broken amounts, as well as in favor of holders of option and convertible rights, and corresponding amendments to the Articles of Association in Section 4(3), (5), and (6), the AGM has adopted the proposal from the Management Board and Supervisory Board with the required majority of votes and qualified capital majority. Regarding Agenda Item 11, cancellation of authorized capital pursuant to Section 4(4) of the Articles of Association, creation of new authorized capital for capital increases in cash with the possibility of excluding shareholder preemptive rights in accordance with inter alia Section 186(3), Sentence 4, Stock Corporation Act, and corresponding amendment to the Articles of Association in Paragraph 4(4).
The AGM has adopted the proposal from the Management Board and Supervisory Board with the required majority of votes and the qualified capital majority. Ladies and gentlemen, let me point out that I will close the AGM immediately upon the announcement of the results. Next, Agenda Item 12, authorization to issue participatory notes and other hybrid debt securities that fulfill the regulatory requirements to qualify as additional Tier 1 Capital, AT1 Capital for Banks, the AGM has adopted the proposal from the Management Board and Supervisory Board with the required majority of votes and the qualified capital majority. Regarding Agenda Item 13, elections to the Supervisory Board, the AGM has adopted resolutions for the individual members. Here are the results. Sigmar Gabriel has been elected to the Supervisory Board with the required majority of votes.
Frank Witter has been elected to the Supervisory Board by the AGM with the required majority of votes. Dr. Klaus Moosmayer has been elected to the Supervisory Board by the AGM with the required majority of votes. Kirsten Roth has been elected to the Supervisory Board by the AGM with the required majority of votes. The candidates have therefore been appointed for the planned terms of office and have already declared that they will accept the results of the votes in the run-up to the AGM. I'd like to thank everyone on their behalf. The election proposals made by Mr. Oswald regarding Agenda Item 13 have therefore become vain and will not be put up for a vote.
Regarding Agenda Item 14, amendment to the Articles of Association to renew the authorization of the Management Board to allow for a virtual general meeting to be held, the AGM has adopted the proposal from the Management Board and Supervisory Board with the required majority of votes and the required capital majority. Therefore, the counter proposal regarding Agenda Item 14 has become obsolete. Ladies and gentlemen, this takes us to the two additional Agenda Items on the extended agenda hereby stated and announced as follows. Under Agenda Items 15 and 16, there were proposals from Ribbeck Brauerei of 1862 GmbH as announced in the Federal Gazette on April 24, 2025. Regarding Agenda Item 15, Special Audit on Formation for Visions regarding Postbank, the AGM has rejected the proposal. Regarding Agenda Item 16, Special Audit on Formation for Visions regarding FX Loans Poland, the AGM has rejected the proposal.
Ladies and gentlemen, so much for the announcement of the results, and this means that we have completed the agenda for today's AGM. Thank you very much, ladies and gentlemen, for your interest, for the trust you have placed in Deutsche Bank, the interest in the development of Deutsche Bank that you have shown with your questions and contributions, but also by following the AGM. I would also like to thank all employees involved in the preparation and implementation of this AGM. The next AGM will be held on Thursday, 28th of May 2026. All the best. See you then. We say goodbye, and the AGM is closed at 6:05 P.M. Thank you very much. Goodbye.