Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Deutsche Bank Aktiengesellschaft — Q4 2009 Earnings Presentation
47 slides from Deutsche Bank's earnings presentation, Feb 5, 2010
Slide 1: 4Q2009 results
4Q2009 results Stefan Krause Chief Financial Officer Analyst Meeting, 4 February 2010
Slide 2: Agenda
1 Group results 2 Segment results Agenda Investor Relations 02/10 · 2
Slide 3: Highlights
Highlights (1) Based on average active equity (2) Recommended (3) Total assets based on U.S. GAAP pro-forma divided by total equity per target definition Profitability Income before income taxes (FY, in EUR bn) Net income (FY, in EUR bn) Pre-tax RoE (FY, target definition)(1) Capital strength 31 Dec
Slide 4: Net revenues
Investor Relations 02/10 · 4 (CHART) (CHART) Net revenues In EUR bn Significant property impairment (1) Includes mark-downs of EUR 0.9 bn (2) Includes net mark-ups of EUR 319 m (mainly monolines) (3) Includes net effect of charge related to Ocala Funding LLC of approx. EUR 350 m and losses related t
Slide 5: Provision for credit losses
Investor Relations 02/10 · 5 (CHART) (CHART) (CHART) Provision for credit losses In EUR m Note: Divisional figures do not add up due to omission of Corporate Investments; figures may not add up due to rounding differences Thereof: CIB Thereof: PCAM Related to IAS 39 reclassified assets 1,378 2008 1Q
Slide 6: PBC loan book: Delinquency ratio
Investor Relations 02/10 · 6 PBC loan book: Delinquency ratio At period end, 90^x^269 days past due(1)(2) Consumer Small corporates Mortgage (CHART) Mortgage loans represent ~70% of PBC loan book (1) Does not include loans more than 269 days past due, except for secured loans (2) 2003 - 2007 from in
Slide 7: Noninterest expenses
Investor Relations 02/10 · 7 (CHART) (CHART) 0.3 Noninterest expenses In EUR bn (CHART) 0.4 Comp ratio, in % (1) Incl. policyholder benefits and claims, impairment of goodwill and intangible assets where applicable; insurance contracts business of Abbey Life offset in revenues Note: Figures may not
Slide 8: Compensation plan
Compensation plan Compensation model in accordance with G20 and FSB guidelines Reviewed by key regulators (BaFin, FSA, Fed) Significant portion of compensation deferred Existing claw-back option further upgraded and significantly extended From 2010, introduction of pay mix shift: higher proportion o
Slide 9: Income before income taxes
Investor Relations 02/10 · 9 (CHART) Income before income taxes In EUR bn (CHART) (CHART) 2008 1Q 2Q 3Q 4Q Full year 2008 2009 2009 1Q 2Q 3Q 4Q (6.2) (5.7) (1) Annualised, based on average active equity Note: Figures may not add up due to rounding differences Pre-tax return on equity(1), in %
Slide 10: Net income
Investor Relations 02/10 · 10 (CHART) (CHART) (CHART) Net income In EUR bn (4.8) Effective tax rate, in % 2008 2008 2009 2009 Note: Figures may not add up due to rounding differences (3.9) 1Q 2Q 3Q 4Q Full year 1Q 2Q 3Q 4Q
Slide 11: Capital ratios and risk-weighted assets
Investor Relations 02/10 · 11 Capital ratios and risk-weighted assets Core Tier 1 ratio, in % Tier 1 ratio, in % RWA, in EUR bn Note: Core Tier 1 ratio = Tier 1 capital less hybrid Tier 1 capital divided by RWAs (CHART) (CHART) 12.6 (CHART) 1Q 2Q 3Q 4Q 2008 2009 1Q 2Q 3Q 4Q (43) 8.7 Target: ^10%
Slide 12: Development of total assets
Investor Relations 02/10 · 12 Development of total assets In EUR bn 31 Dec 2009 30 Sep 2009 Leverage ratio(2) (CHART) (CHART) 31 Dec 2008 30 Sep 2009 31 Dec 2009 IFRS U.S. GAAP pro-forma Netting(1) (609) (1) For 30 Sep 09 incl. derivatives netting of EUR 617 bn, pending settlements / cash collateral
Slide 13: Agenda
Investor Relations 02/10 · 13 1 Group results 2 Segment results Agenda
Slide 14: CB&S: P&L at a glance
Investor Relations 02/10 · 14 CB&S: P&L at a glance In EUR m (1) Annualised, based on average active equity Note: Prior periods have been adjusted retrospectively to be consistent with current presentation of certain confirmation and settlement fees; these adjustments had no impact on income before
Slide 15: Sales & Trading revenues
Investor Relations 02/10 · 15 (CHART) (CHART) (CHART) Sales & Trading revenues In EUR bn Mark-downs Net revenues (1) Includes mark-downs of EUR 1.7 bn (2) Includes charges related to Ocala Funding LLC of approx. EUR 350 m (3) Includes net effect of losses related to write-downs on specific risks in
Slide 16: Sales & Trading debt and other products
Investor Relations 02/10 · 16 Sales & Trading debt and other products In EUR bn Mark-downs Net revenues (CHART) Key features Net revenues Credit Reduced client activity Continued good performance after recalibration FX / Money Markets / Rates Reduced client activity, lower volatility and less liquid
Slide 17: Sales & Trading equity
Investor Relations 02/10 · 17 Sales & Trading equity Key features Net revenues (CHART) In EUR m 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2009 Cash Equities Lower secondary market activity especially in December Lower direct market access commissions Prime Brokerage Stable market share Lower activity as Hedge Fu
Slide 18: Origination & Advisory
Investor Relations 02/10 · 18 Origination & Advisory Advisory Origination Note: Rankings refer to Dealogic (fee pool) unless otherwise stated; figures may not add up due to rounding differences Net revenues (CHART) General Narrowed the gap to top 5 position (year-on-year) Significant market share ga
Slide 19: Global Transaction Banking: P&L at a glance
Investor Relations 02/10 · 19 Global Transaction Banking: P&L at a glance In EUR m (1) Annualised, based on average active equity 4Q2009 3Q2009 4Q2008 FY2008 FY2009
Slide 20: Global Transaction Banking
Investor Relations 02/10 · 20 (CHART) Global Transaction Banking Income before income taxes Key features P&L Continued impact from low interest rates across all products and regions Reduced benefit of risk-based funding Trade Finance: Continued strong underlying performance Cash Management: Robust p
Slide 21: Asset and Wealth Management: P&L at a glance
Investor Relations 02/10 · 21 Asset and Wealth Management: P&L at a glance In EUR m (1) Annualised, based on average active equity 4Q2009 3Q2009 4Q2008 FY2008 FY2009
Slide 22: Asset Management
Investor Relations 02/10 · 22 Asset Management Income before income taxes (CHART) Key features Reversal of impairment related to DWS Scudder intangible assets Portfolio / Fund Management fees improving in positive market environment Realization of performance related fees in all channels Positive im
Slide 23: Private Wealth Management
Investor Relations 02/10 · 23 Private Wealth Management Income before income taxes (CHART) Key features In EUR m (1) Reflects ARP/S settlement, severance and Sal. Opp. acquisition related costs Specific items(1) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2009 (1) (1) (61) (45) (16) (9) (9) (38) Revenue resilience
Slide 24: Private & Business Clients: P&L at a glance
Investor Relations 02/10 · 24 Private & Business Clients: P&L at a glance In EUR m (1) Annualised, based on average active equity 4Q2009 3Q2009 4Q2008 FY2008 FY2009
Slide 25: Private & Business Clients
Investor Relations 02/10 · 25 Private & Business Clients Income before income taxes (CHART) In EUR m (1) Includes direct severance booked in business and allocations of severance booked in infrastructure Key features Revenues: Investment products: Slight recovery in brokerage business and seasonably
Slide 26: PCAM net new money flows by quarter
Investor Relations 02/10 · 26 (CHART) PCAM net new money flows by quarter In EUR bn 2008 1Q 2Q 3Q 4Q 2009 1Q 2Q 3Q 4Q
Slide 27: Summary
Investor Relations 02/10 · 27 Summary (1) Based on average active equity (2) Recommended (3) Total assets based on U.S. GAAP pro-forma divided by total equity per target definition Profitability Income before income taxes (in EUR bn) Net income (in EUR bn) Pre-tax RoE (target definition)(1) Capital
Slide 28: Additional information
Deutsche Bank Additional information
Slide 29: Loan book
Investor Relations 02/10 · 29 Loan book In EUR bn Note: Total incl. CI / Other; loan amounts are gross of allowances for loan losses; figures may not add up due to rounding differences (CHART) PCAM CIB (4)% 31 Mar 30 Jun 30 Sep 31 Dec 2008 IAS 39 impact on CIB loan book 34 25 CI xx 31 Mar 2009 38 30
Slide 30: Composition of loan book and provisions by category
Investor Relations 02/10 · 30 (1) Includes loans from CMBS securitizations Note: Loan amounts are gross of allowances for loan losses; figures may not add up due to rounding differences Composition of loan book and provisions by category In EUR bn, as of 31 Dec 2009 Moderate risk bucket Lower risk b
Slide 31: 'Pro-forma' impact of IAS reclassifications
Investor Relations 02/10 · 31 'Pro-forma' impact of IAS 39 reclassifications In EUR m (1) Net of provision for credit losses Note: At the reclassification dates, assets had a carrying value of EUR 37.9 bn; incremental RWAs were EUR 4.4 bn Figures may not add up due to rounding differences (1) FY2008
Slide 32: Problem loans
Investor Relations 02/10 · 32 (CHART) (CHART) Problem loans In EUR bn IFRS impaired loans coverage ratio(2) IFRS impaired loans(1) Problem loans not considered impaired under IFRS (1) IFRS impaired loans include loans which are individually impaired under IFRS, i.e. for which a specific loan loss al
Slide 33: Monoline update
Investor Relations 02/10 · 33 (CHART) Monoline update Substantial reduction since 1Q2009 peak ... (CHART) Tier 4 Tier 1/ Inv. grade Tier 2 Tier 3 In EUR bn as of 31 Dec 2009 .... and exposure adequately reserved (43)% In EUR bn(1) Exposure materially reduced, reserve levels remain adequate Fair valu
Slide 34: Value of Level 3 assets
Investor Relations 02/10 · 34 Value of Level 3 assets(1) (1) IFRS netting convention applied (2) Designated at fair value through profit or loss (3) From derivative financial instruments Note: Total includes PCAM; figures may not add up due to rounding differences Asset classes In EUR bn 4Q2009 deve
Slide 35: Funding situation - Assets and liabilities
Investor Relations 02/10 · 35 (CHART) Funding situation - Assets and liabilities Balance sheet by product, as of 31 Dec 2009, in EUR bn Assets Liabilities & Equity (1) Volumes relate to market values from derivatives, brokerage and securities related payables / receivables (mostly non-cash) - for be
Slide 36: Funding and liquidity
Investor Relations 02/10 · 36 Funding and liquidity In EUR bn Funding sources overview Liquidity position Reduced funding demand following asset reductions Conservative funding mix maintained Available cash and strategic liquidity reserve exceed net funding gap under combined idiosyncratic / market
Slide 37: U.S. GAAP pro-forma assets
Investor Relations 02/10 · 37 U.S. GAAP pro-forma assets U.S. GAAP pro-forma assets Securities borrowed / reverse repos Other(1) Cash and deposits with banks Net loans Positive market values from derivatives Trading securities Reverse repos / securities borrowed Other des. at FV Financial assets at
Slide 38: Tier 1 capital and RWA development
Investor Relations 02/10 · 38 Tier 1 capital and RWA development 30 Sep 2009 31 Dec 2009 Note: Figures may not add up due to rounding differences Tier 1 capital RWA (CHART) 30 Sep 2009 Opera- tional risk 31 Dec 2009 (CHART) 4Q09 Net income FX effects 2009 dividend declared Equity- based comp- ensati
Slide 39: Group headcount
Investor Relations 02/10 · 39 Full-time equivalents, at period end Group headcount Note: Figures may not add up due to rounding differences 31 Dec 2008 31 Mar 2009 30 Jun 2009 30 Sep 2009 31 Dec 2009 31 Dec 2009 vs. 31 Dec 2008 Total change Net of de-/ consolidation
Slide 40: Number of shares for EPS calculation
Investor Relations 02/10 · 40 (1) With physical settlement only (2) Still restricted (3) Due to the net loss situation, potentially dilutive shares were generally not considered in the EPS calculation for 4Q08 and FY2008 Note: Figures may not add up due to rounding differences In million Number of s
Slide 41: Invested assets report
Investor Relations 02/10 · 41 Invested assets(1) report In EUR bn (1) Assets held by Deutsche Bank on behalf of customers for investment purposes and / or managed by Deutsche Bank on a discretionary or advisory basis or deposited with Deutsche Bank (2) Life insurance surrender value (3) Includes adj
Slide 42: Regional invested assets - AM and PWM
Investor Relations 02/10 · 42 Regional invested assets(1) - AM and PWM In EUR bn (1) Assets held by Deutsche Bank on behalf of customers for investment purposes and / or managed by Deutsche Bank on a discretionary or advisory basis or deposited with Deutsche Bank (2) Market responsibility for Austri
Slide 43: Regional net new money - AM and PWM
Investor Relations 02/10 · 43 Regional net new money - AM and PWM In EUR bn Note: Figures may not add up due to rounding differences 4Q2009 3Q2009 2Q2009 1Q2009 FY2008 4Q2008 FY2009
Slide 44: Corporate Investments
Investor Relations 02/10 · 44 Corporate Investments EUR (75) m impairment charge of CI's investment property in Cosmopolitan Resort & Casino Postbank equity pick-up of EUR 21 m almost completely offset by a negative mark-to-market on put / call structure In EUR m Key features Income before income ta
Slide 45: VaR of CIB trading units
Investor Relations 02/10 · 45 VaR of CIB trading units 99%, 1 day, in EUR m Sales & Trading revenues (CHART) EUR 1.9 bn EUR (4.8) bn VaR of CIB trading units Constant VaR of CIB trading units(1) (1) Constant VaR is an approximation of how the VaR would have developed in case the impact of the market
Slide 46: Balance sheet leverage ratio (target definition)
Investor Relations 02/10 · 46 (1) Estimate assuming that all own debt was designated at fair value Balance sheet leverage ratio (target definition) In EUR bn 31 Dec 2009 30 Sep 2009
Slide 47: Cautionary statements
Investor Relations 02/10 · 47 Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are bas
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