Strong market position and franchise; Focused approach; Strong risk management; and Solid capitalization. Still subpar profitability compared with similarly rated peers; Reliance of profitability on investment-banking activities; and Difficult domestic banking environment. The ratings on Deutsche Bank AG are based on the group's strong and diversified business profile, focused strategy, conservative risk appetite, and solid capital base. They also reflect Standard&Poor's expectation of a steady recovery in Deutsche Bank's profitability, which is still lagging that of many similarly rated international banks. Despite recent improvements in retail activities, Deutsche Bank's current performance continues to exhibit a relatively strong reliance on investment-banking activities, partly reflecting the more difficult domestic banking environment. Deutsche Bank is one of the most important financial
