Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Nomura Financial Services Conference 2009
24 slides from Deutsche Bank's conference presentation, Sep 3, 2009
Slide 1: Deutsche Bank - Nomura Financial Services Conference
Deutsche Bank Dr. Gurdon Wattles Head of Investor Relations & Group Finance Communications Nomura Financial Services Conference London, 3 September 2009
Slide 2: Agenda
Agenda 1 Strength g through g the crisis 2 Investment banking: recalibrating a leading franchise 3 Other businesses: repositioning for a changed environment Investor Relations 09/09 · 2
Slide 3: Deutsche Bank a relative winner in the crisis
Deutsche Bank a relative winner in the crisis 3Q2007- 2Q2009, reported, in EUR bn Aggregate net income Fair value gains/losses on own debt JPM 11.8 1.1 GS((1)) 95 9.5 06 0.6 BoA 8.1 (0.9)(4) 1.0 0.2 CS (1.9) 3.6 MS(2) ((2.5)) 1.7 C (20.8) 2.5 UBS (24.3) 3.7(5) MER(3) (28.2) 4.1 (1) 3Q07-4Q08 3Q07 4Q
Slide 4: Capital ratios have been strengthened
Capital ratios have been strengthened 11.0 10.3 Target: 10.1 10.2 ~10% 9.2 9.3 78 7.8 7.5 6.9 7.0 7.1 6.8 319 308 316 303 305 295 1Q 2Q 3Q 4Q 1Q 2Q 2008 2009 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Core Tier 1 ratio = Tier 1 capital less Hybrid Tier 1 Capital divided by RWAs
Slide 5: Significant reduction in balance sheet leverage
Significant reduction in balance sheet leverage In EUR bn 30 June 2008 30 June 2009 Leverage ratio(2) 1,991 (31%) 38 1,733 28 1,338 (653) 24 928 (805) IFRS Netting(1) U.S. U S GAAP IFRS tti (1) U.S. Netting N U S GAAP 30 JJun 31 M Mar 30 JJun ‘pro-forma’ ‘pro-forma’ 2008 2009 2009 (1) For 30 June 20
Slide 6: Funding and Liquidity: quantity, quality and consistency
Funding and Liquidity: quantity, quantity quality and consistency In EUR bn Unsecured U secu ed funding u d g Capital Cap ta market a et funding u d g progress p og ess New issuance, in EUR bn 511 54 479 30% 14% 68 45 153 Full year 2009 plan completed + 53 21 411 358 15 16 30 Jun 2007 30 Jun 2009 20
Slide 7: Loan book and provisions remain low in comparison
Loan book and provisions remain low in comparison In EUR bn Loan book split Provision for credit losses As of 31 December 2008 1H2009 CIB / Other Private Clients Other* 659 Private Clients Mortgages 20.0 491 509 527 478 16 7 16.7 358 12.5 271 231 160 5.1 4.2 2.4 1.0 1.5 03 0.3 CS UBS DB SOC BAR Citi
Slide 8: Loan book has performed relatively well so far
Loan book has performed relatively well so far Loss ratio* 1H2009 annualised, in bps 828 PCAM 734 CIB 612 520 PCAM peer avg 339 245 232 218 198 227 CIB 168 157 138 131 139 peer avg 223 72 57 12 22 Citi BoA JPM BAR BNP SOC DB UBS CS Group 679 608 473 215 164 136 113 88 41 *Provision for credit losses
Slide 9: In all categories, risk mitigants exist
In all categories, categories risk mitigants exist As of 30 June 2009, in EUR bn Low risk (64%) Moderate risk (23%) Higher risk (13%) Collateralised; 268 Low loan to value 36 Substantially hedged & diversified Highly diversified 64 Short term / Fully collateral’d ttrade-related ade e ated
Slide 10: Agenda
Agenda 1 Strength g through g the crisis 2 Investment banking: recalibrating a leading franchise 3 Other businesses: repositioning for a changed environment Investor Relations 09/09 · 10
Slide 11: Earnings power in Sales & Trading
Earnings power in Sales & Trading Revenues, in EUR bn Successfully y recalibrated business model Revenue g generation and loss absorption p Illustrative Mark-downs Debt and equity revenues Additional de-risking Highly illiquid <1% ~15% 1.0 ~55% 55% 01 0.1 Medium / High Liquidity 1.4 ~60% 5.1 2.1 4.4
Slide 12: Sales & Trading 'flow' businesses have grown through the crisis
Sales & Trading ‘flow’ flow businesses have grown through the crisis Revenues, indexed, 1H2007 = 100 Foreign g Exchange g Money y Markets x1.7 x3.2 1H2007 1H2008 1H2009 1H2007 1H2008 1H2009 Rates x2.2 1H2007 1H2008 1H2009 Note: 2007 based on structure as of 2008, 2008 onwards based on latest structu
Slide 13: Global Markets: Opportunity to gain share
Global Markets: Opportunity to gain share Sales & Trading: Global revenue pool pool* Significant market share up for capture In EUR bn Equity DB Merged or exited Remainder Fixed Income ~(17)% Current 134 136 DB rank 112 U.S. IRD #2 82 EM Bonds #2 EU Investment #1 Grade Credit Global Fixed Income #2
Slide 14: We have made gains in key 'flow' businesses
We have made gains in key ‘flow’ flow businesses … Deutsche Bank market share Foreign Exchange Interest Rate Derivatives Credit Default Swaps* Swaps x.x ppt = Gap to #2 2.7 ppt 4 3 ppt 4.3 5.8 ppt 15.9% 21.0% 11.6% 11.6% 19.3% 16.7% 8.9% 10.1% 10.5% 6.4 ppt 4.5 ppt 4.3 ppt 2005 2007 2009 2005 2007 2
Slide 15: While continuing to reduce risk and costs
… while continuing to reduce risk and costs Global Markets U.S. GAAP ‘pro forma’ balance sheet ‘pro-forma’ Non comp direct costs Non-comp (43)% (23)% (1)% (7)% 1Q2008 (Peak) (P k) 1Q2009 2Q2009 4Q2008 1Q2009 2Q2009 Constant input VaR Example: USD basis risk (38)% (45)% (8)% (42)% Oct 2008 ((Peak)) 1
Slide 16: Corporate Finance has captured share in tough conditions
Corporate Finance has captured share in tough conditions Corporate Finance revenues M&A announced In EUR m Advisory Ad i Ranking by volume in USD bn Origination 2008 Global 2Q09 1 Goldman Sachs 851 1 Morgan Stanley 409 1 090 1,090 2 JP Morgan 779 2 Goldman Sachs 352 3 Citi 699 3 JP Morgan 304 727 4
Slide 17: Agenda
Agenda 1 Strength g through g the crisis 2 Investment banking: recalibrating a leading franchise 3 Other businesses: repositioning for a changed environment Investor Relations 09/09 · 17
Slide 18: GTB remains an important growth business
GTB remains an important growth business Income before income taxes Outlook & prospects I EUR m In 1H 1,106 Challenges: Lower interest rates 945 FX movements Lower equity valuations 705 Risk hedging costs 433 Opportunities: 403 Expand E d iinto t new markets k t 254 Attract new clients
Slide 19: GTB: Leveraging 'flight to quality'
GTB: Leveraging ‘flight flight to quality quality’ Market share capture – Clearing, at period end, in % US-Dollar US Dollar EURO 20.1 18.7 17 4 17.4 9.0 82 8.2 6.8 2007 2008 1H2009 2007 2008 1H2009 Source: CHIPS, RTGS, Target 2 Germany Investor Relations 09/09 · 19
Slide 20: A challenging environment for PCAM
A challenging environment for PCAM Equity indices Brokerage and portfolio- Volatility / fund management I d Indexed d 1 Jan J 2008 = 100 R Revenues, iin EUR m PBC AWM 110 1,165 1 195 1,195 S&P 500 1,076 90 345 355 912 327 842 857 213 70 DAX 245 248 (37)% (40)% 820 840 50 749 699 597 609 30 1 Jan 200
Slide 21: AWM: Restoring operating leverage at lower market levels
AWM: Restoring operating leverage at lower market levels Income before income taxes Outlook & prospects In EUR m Asset Management 242 188 Reposition European MM fund exposure RREEF impairments (110) Right-size RREEF Severance* (54) Downsize hedge fund platform (850) Cost savings in mid / bac
Slide 22: PBC: Implementation of 'Growth and Efficiency' program
PBC: Implementation of ‘Growth Growth and Efficiency Efficiency’ program Income before income taxes Business model In EUR m Severance* Advisory Ad i b ki banking: P iti ffor recovery iin Position investment products via selective investments Consumer banking: Position for margin compression via
Slide 23: Deutsche Postbank: an important strategic option
Deutsche Postbank: an important strategic option Clients of German retail banks as of 2008, in million* Sparkassen ~50.0 Volksbanken ~30.0 14.1 11.0 Cooperation As of 2008 (figures for Germany only) Branches 856 930 10.1 Mobile sales force ~4,260 ~1,600 6.7 FTE ~21,130 ~15,460 ~4.0 3.3 * Source: Com
Slide 24: Cautionary statements
Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). (IFRS) This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact
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