Company: ADZCF
Filing Date: 2025-03-13
Form Type: 20-F
Source: 0001159508-25-000020
Chunk: 15

Company: DEUTSCHE BANK AKTIENGESELLSCHAFT
Filing Date: 2025-03-13
Form: 20-F
Chunk 15
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 as well as making pricing and hedging more challenging and costly. It also increases the risk of idiosyncratic counterparty events both directly and indirectly, for example shortfalls under Lombard or securities financing transactions. In addition, market volatility triggered by unexpected policy decisions or policy mistakes, could also lead to increased inherent risks in several non-financial risks including transaction processing, internal and external fraud; along with conduct risks including attempts to conceal losses and increased risk of litigation from clients. A substantial proportion of the assets and liabilities on the Group’s balance sheet comprise of financial instruments that are carried at fair value, with changes in fair value recognized in the income statement. As a result of such changes, the Group has incurred losses in the past, and may incur further losses in the future. The Group is exposed to risks related to movements from foreign exchange rates, most notably related to USD and GBP. The bank also accounts for assets and liabilities at amortized costs. The fair value of these assets may be lower than their carrying value and could result in realized losses if the asset is sold prior to maturity. If multiple downside risks simultaneously materialize and/or occur in combination with a more pronounced economic slowdown, the negative impact on Deutsche Bank’s business environment could be more severe than currently expected and impact the bank’s ability to meet its 2025 financial targets. A number of geopolitical and political risks and events could negatively affect Deutsche Bank’s business environment, including weaker economic activity, financial market corrections, compliance risks or a lower interest rate environment which could reduce the bank’s ability to achieve its 2025 financial targets. There is particular focus on the future policies of the new U.S. administration around international trade and energy. There is a risk that some of these policies could result in higher inflation and interest rates and uncertainty around the outlook for key geopolitical risks. For instance, the U.S. administration has announced additional tariffs on imported goods especially those from key trading partners such as Canada, Mexico and China, which if implemented could negatively impact growth and fuel inflation in the U.S. This in turn, could lead to increased provisions for credit losses. Besides, the U.S. administration has proposed to reduce funding and subsidies for clean energy initiatives which may impact companies who are active in renewables. The ongoing war in Ukraine and the risk that U.S. military support may potentially be reduced, continue to increase European concerns and may lead to heightened uncertainty and business disruption. Meanwhile, the risk of a Middle East conflict remains elevated, despite the fragile temporary ceasefire agreed between Israel and Hamas,