Things are looking up for Deutsche Bank.

This is the message that the CEO Christian Sewing spread on Wednesday.

After Deutsche Bank achieved its first annual profit in six years in 2020 and earned more than one billion euros before taxes in the first quarter of 2021 for the first time in seven years, business was also good in the second quarter of 2021.

After two years without dividends, shareholders are to receive distributions from spring 2022.

"We are firmly resolved that we can finally propose a dividend again next year," said Sewing in his speech to the Annual General Meeting, which will be held virtually on May 27th, which was published on Wednesday.

Hanno Mußler

Editor in business.

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    Sewing expects a strong economic upturn in the second half of 2021, "as soon as life returns to normal thanks to higher vaccination rates". He looks forward to the return of employees who are currently still working from home to the offices. "But we will learn from the Corona period and in future combine time in the office and mobile work more flexibly," announced Sewing. Despite the fact that insolvency rules are no longer suspended, Deutsche Bank expects less provision for loan defaults than in 2020. Globalization is not over, but world trade is becoming more fragmented and the exchange of goods and services more complex, Sewing said, probably alluding to the word “glocalization” thereon,that some companies are in the process of strengthening their supply chains with local suppliers in response to border closings and travel restrictions in the pandemic.

    Sewing, who has been in office since April 2018, has achieved a turnaround at Deutsche Bank with a 40 percent lower balance sheet volume.

    The chairman of the supervisory board, Paul Achleitner, praised: “The stability of our bank is no longer in question.” Sewing is now committed to large banks and an active role for Deutsche Bank should there be mergers among banks in Europe.

    “Germany needs a global bank.

    And this bank - that's us, ”says Sewing.

    Sewing defends investment banking

    Despite the cessation of share trading in the summer of 2019, however, the capital market business, which was considered risky and which resulted in high legal risks in the past, provided the lion's share of the profit - and not the three other business areas, which are considered to be more stable, corporate customers, private customers and asset management. "Our profit is only due to the investment bank," it said, and so the "old Deutsche Bank is back", Sewing takes on public criticism and replies: "I do not share these claims in any way."

    Sewing clarifies that Deutsche Bank never said it wanted to withdraw from the capital market business.

    However, it has focused on its strengths such as the bond and currency business and expanded its market share there.

    Closing stock trading was the right thing to do - despite the currently booming markets.

    Deutsche Bank could not have caught up with the best.

    Sewing believes it is crucial to adapt to customer needs: "We increased the income of our 100 largest institutional clients by 30 percent last year." Despite all prophecies of doom, he considers a large part of this income to be sustainable and stable.

    Frank Witter becomes the new supervisory board

    The 2022 Annual General Meeting will be the last for Paul Achleitner, who has headed the Supervisory Board since 2012. After his term of office, which ends in 2022, he will not seek re-election, says Achleitner in his speech and promises an "orderly transition" from his office. The favorite for Achleitner's successor is the CEO of Deutsche Börse Theodor Weimer, who has been a member of the Deutsche Bank Supervisory Board since June 2020. The chairmanship of the supervisory board at Deutsche Bank, however, is a main job, and Weimer still has a contract at Deutsche Börse until 2024. Frank Witter, who will be elected to the supervisory board by the general meeting as the successor to the asset manager Alexander Schütz, is also possible as future chairman of the supervisory board. Witter is CFO of Volkswagen, but has announcedto leave VW in the current year for personal reasons.