Strong market position and franchise; Sound risk management; Good liquidity; and Satisfactory capitalization. Reliance on investment-banking activities; Still subpar profitability in some business areas; Difficult domestic banking environment; and Structural challenges in institutional asset management. The ratings on Deutsche Bank AG are based on the group's strong market position and franchise in some of its business lines, sound risk management, good liquidity, and a satisfactory capital base. The ratings also reflect Standard&Poor's expectation of further improvements in profitability, which is still lagging that of many similarly or higher rated international banks. Despite recent improvements in retail banking, Deutsche Bank is likely to continue exhibiting a relatively high reliance on investment-banking activities, partly reflecting the difficult domestic banking environment
