Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (March 2012)
45 slides from Deutsche Bank's roadshow presentation, March 2012
Slide 1: Deutsche Bank Roadshow
Deutsche Bank Deutsche Bank Roadshow Stefan Krause Chief Financial Officer Deutsche Bank Investor Relations Roadshow February / March 2012 February / March 2012 financial transparency.
Slide 2: Agenda
Agenda 1 Overview 2 FY2011 / 4Q2011 results 3 Capital, funding and liquidity Deutsche Bank Roadshow financial transparency. 2 Investor Relations February / March 2012
Slide 3: Results overview
Results overview FY2011 FY2010 Income before income taxes (in EUR bn) 5.4 4.0 Net income (in EUR bn) 4.3 2.3 (1) Profitability Pre-tax RoE (target definition) 10% 15% Diluted EPS (in EUR) 4.30 2.92 (2) Dividend per share (in EUR) 0.75 0.75 31 Dec 2011 31 Dec 2010 Core Tier 1 capital ratio 9.5% 8.7%
Slide 4: Key take-aways
Key take-aways Challenging macro environment and financial ― Record result in classic banking markets ― Diminished performance in investment banking Challenges Actions Results ― Integration risk from ― Successful execution and ― Record pre-tax profit in classic acquisitions delivery of synergies ban
Slide 5: Capital market environment put EUR 10 bn target out of reach
Capital market environment put EUR 10 bn target out of reach Income before income taxes, in EUR bn Phase 4 potential 2011 FY2011 Global Transaction Banking 1.0 1.1 Asset and Wealth Management 1.0 0.8 Private & Business Clients 1.6 1.8 Total classic banking businesses 3.6 3.7 Corporate Banking & Secu
Slide 6: Investment banking significantly affected by environment
Investment banking significantly affected by environment Corporate Banking & Securities Income before income taxes 2011 impacted by In EUR m ― Significant slowdown in industry-wide activity as a result of the ongoing European 5,033 sovereign debt crisis 4,202 3,393 2,905 ― Significant unanticipated
Slide 7: CB&S showing relative resilience
CB&S showing relative resilience % YoY change 2010: Rank 5 DB performance drivers 2011: Rank 3 CB&S revenues(1), in EUR bn CB&S revenues(1), in EUR bn BoA 21.0 ― More Top-3 positions than JPM 18.1 (7)% any other bank(2) JPM 19.5 BoA 16.2 (23)% GS 18.3 ― Benefits from further 14.9 (15)% integration C
Slide 8: Best result ever in classic banking
Best result ever in classic banking Income before income taxes, in EUR bn PBC(1) GTB AWM 78% 3.7 2011 vs. 2009 0.8 x 3.8 31% 2.1 1.1 x 1.2 1.6 (3) 0.2 0.2 (2) 1.0 0.9 1.8 x 3.9 0.9 0.5 2009 2010 2011 IBIT share 32% 29% 56% classic banking(2) (1) Includes Postbank since December 2010 (2) In percent
Slide 9: Global Transaction Banking: Performance, growth, and a safe haven
Global Transaction Banking: Performance, growth, and a safe haven Income before income taxes Market share: Cash Management(1) Net liquidity provided to DB Group In EUR m Euro Clearing At period end, in EUR bn 19% +4ppt 10% 1,123 21% 17% 70 945 63 2007 2011 Market share: Trade Finance(2) Export LCs G
Slide 10: Asset Management: Under strategic review
Asset Management: Under strategic review Income before income taxes Invested assets in EUR m in EUR bn 646 49 446 DB Advisors 172 Under strategic review Deutsche Insurance 157 Asset Management 45 119 2007 2011 31 Dec 2011 Deutsche Bank Roadshow financial transparency. 10 Investor Relations February
Slide 11: Private Wealth Management: An established player
Private Wealth Management: An established player Income before income taxes Invested assets In EUR m In EUR bn, at period end Organic Acquisitions 20% 321 +75 267 269 39% APAC 194 EMEA Americas Germany 2007 2011 2007 2011 Notes: Germany including SOP; Americas including PCS, EMEA including UK and ot
Slide 12: Private & Business Clients: A quantum leap
Private & Business Clients: A quantum leap Sizeable investments … …resulted in a quantum leap… … and further ambition Income before income taxes, in EUR m ~EUR 5.9 bn(2) Revenues of EUR >10 bn 55% 1,782 Income before income Huaxia taxes of EUR >3 bn ~EUR 1.4 bn Bank 1,146 Cost / income ratio of <60%
Slide 13: Excellence in execution
Excellence in execution Target run-rate IBIT increase, in EUR bn p.a. Efficiency initiatives Integration of strategic acquisitions 2011 run rate as share of target run rate (%) 100% 100% 24% 72% 37% Well ahead of plan 1.1 ~1.0 Original target: 1.0 (1) 0.5 ~0.2 ~0.1 CIB integration Complexity Postban
Slide 14: Agenda
Agenda 1 Overview 2 FY2011 / 4Q2011 results 3 Capital, funding and liquidity Deutsche Bank Roadshow financial transparency. 14 Investor Relations February / March 2012
Slide 15: 4Q2011 results overview
4Q2011 results overview 4Q2011 4Q2010 Income before income taxes (in EUR bn) (0.4) 0.7 Net income (in EUR bn) 0.2 0.6 (1) Profitability Pre-tax RoE (target definition) (3)% 6% Diluted EPS (in EUR) 0.15 0.63 (2) Annual dividend per share (in EUR) 0.75 0.75 31 Dec 2011 30 Sep 2011 Core Tier 1 capital
Slide 16: Profitability
Profitability Income before income taxes Net income In EUR bn In EUR bn 2.8 3.0 2.1 1.5 1.3(1) 1.8 1.8 1.2 1.1(1) 1.2 0.7 0.9 0.6 0.8 0.2 (0.4) (1.0) (1.2) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2010 2011 Pre-tax return on equity(2) , in % Effective tax rate, in % (1) (1) 30 15 (1
Slide 17: Non-interest expenses
Non-interest expenses In EUR bn Compensation and benefits 4Q2011 in EUR m Significant litigation cases 380 General and Bank levies 154 administrative expenses Cosmo Impairment 135 Other non-interest expenses(1) 7.1 26.0 6.3 6.3 6.7 23.3 5.9 5.7 5.9 5.4 4.3 2.8 13.1 3.1 3.4 2.7 12.7 3.6 3.0 3.0
Slide 18: Cost base before and after efficiency programs
Cost base before and after efficiency programs Noninterest expenses, in EUR bn Compensation and Benefits (1.1) 26.0 G&A expenses 0.2 25.8 1.1 4.9 Other noninterest expenses 0.4 24.7 0.2 0.2 (0.8) (0.3) (0.4) 12.7 20.1 1.0 0.4 (0.4) 8.4 13.1 11.3 FY 2009 2009 FX Acquisitions, Bank levies 2009 Complex
Slide 19: Compensation management
Compensation management Reduction of compensation ratio Variable pay down / revenues up Compensation expenses / net revenues Incentive awards (variable remuneration)(1) ∆ (1.5) ppt (17)% 2011 vs. 41.0%(2) 2010 39.5% Deferred 5%(3) Cash (37)% 2010 2011 2010 2011 (1) Excludes amortization of prior yea
Slide 20: Provision for credit losses
Provision for credit losses In EUR m Effect from Postbank releases shown as net interest income at DB Group / PBC level 1,839 Related to IAS 39 reclassified assets 540 402 464 463 91 1,274 (1) 188 406 47 362 373 82 111 64 47 278 79 23 1,250 262 129 117 243 949 22 (3) (3) 1,438(3) 103 50 (3) (3) 449
Slide 21: Performance in the Corporate and Investment Bank
Performance in the Corporate and Investment Bank Income before income taxes, in EUR m Corporate Banking & Securities Global Transaction Banking In EUR m 3Q2011 4Q2011 Negative goodwill(2) (1) Specific charges (310) (380) 4Q2010 efficiency measures(3) 2,572 2,287 485 1,087 306 772 969 274 259 284 603
Slide 22: Sales & Trading
Sales & Trading Net revenues, in EUR m Debt and other products Equity In EUR m In EUR m 3,849 944 943 3,691 872 642 650 2,348 2,1842,280 555 539 1,612 1,496 384 1,043 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2010 2011 Deutsche Bank Roadshow financial transparency. 22 Investor Relati
Slide 23: Performance in PCAM
Performance in PCAM Income before income taxes, in EUR m Asset and Wealth Management Private & Business Clients 70 Cost-to-achieve related to 227 Postbank acquisition(1) 190 186 Net HuaXia one-off gain 263 (2) 165 39 Negative impact from Greek government bonds(3) 132 40 91 788 185 134 65 59 118 42 5
Slide 24: Private & Business Clients – business division performance
Private & Business Clients – business division performance In EUR m, post minorities Impact from Cost-to- Reported Greek achieve Adjusted PPA (1) Hua Xia IBIT government related to IBIT bonds Postbank 1Q2011 231 (38) 269 2Q2011 124 (42) (35) 201 Advisory Banking 3Q2011 132 (11) (35) 178 Germany 4Q20
Slide 25: Corporate Investments
Corporate Investments Income before income taxes 4Q2011 key features In EUR m In EUR m 4Q2011 4Q2010 3Q2011 FY2011 FY2010 65 Revenues (193) (40) 213 394 (1,796) Provisions for (8) (8) (0) (14) 0 (85) (85) credit losses (165)(139) Noninterest exp. (520) (343) (299) (1,492) (967) IBIT (722) (390) (85)
Slide 26: Agenda
Agenda 1 Overview 2 FY2011 / 4Q2011 results 3 Capital, funding and liquidity Deutsche Bank Roadshow financial transparency. 26 Investor Relations February / March 2012
Slide 27: Highest year-end capital ratios ever despite Basel 2.5
Highest year-end capital ratios ever despite Basel 2.5 At period end Basel 1 Basel 2 Basel 2.5 14.7 12.9 12.6 12.3 10.1 8.6 10.8 9.5 8.7 8.7 6.9 7.0 346 381 329 308 327 273 2007 2008 2009 2010 2011 pro-forma 2011 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Tier 1 ratio = Tier 1 c
Slide 28: Core Tier 1 capital and RWA development
Core Tier 1 capital and RWA development Core Tier 1 capital RWA In EUR bn In EUR bn 0.5 36.3 0.9 0.2 54.3 381.2 0.5 34.1 0.1 4.1 337.6 14.0 (22.6) (6.1) 30 Sep Net CDI CDI Other FX effect 31 Dec 30 Sep FX effect Credit Market Operational Basel 2.5 (3) 31 Dec 2011 income (1) Basel 2.5 (2) 2011 2011 r
Slide 29: Basel 2.5: Impact on trading book market risk
Basel 2.5: Impact on trading book market risk In EUR bn Market risk capital requirements Drivers of reduction RWA Trading book securitizations 98 ― Sales of securitisation trading Incremental risk charge Trading book inventory; sold at marks S-VaR securitizations ― 70% of correlation reduction Marke
Slide 30: Basel 3 simulation
Basel 3 simulation(1) In EUR bn xx Core Tier 1 ratio (%) Pro forma RWA Pro forma Core Tier 1 capital and ratios 9.5% 9.7% 8.5% 9.5% 105 499 499 5 47 2 2 43 381 12 394 36 2 38 Dec 11 Normali- Jun 12 Basel 3 1 Jan Dec 2013 Dec 11 Net Jun 12 Net Add-back 1 Jan Net Dec 2013 zation of after 2013 pro pro
Slide 31: Strongest liquidity reserves ever
Strongest liquidity reserves ever Development through the crisis Composition of liquidity reserves In EUR bn, at period end As at 31 Dec 2011 Liquidity reserves(1) Discretionary Unsecured Wholesale Funding(2) 219 Highly liquid securities(3) 30% 156 150 133 104 62% 65 Other 8% central bank eligible C
Slide 32: Prepared for challenges – prepared for performance
Prepared for challenges – prepared for performance Transformed towards a more balanced, lower-risk business model Strengthened footprints in PBC, PWM and GTB Delivered execution excellence on acquisitions Focused vigorously on high-quality liquidity and funding profile Maintained high capital discip
Slide 33: Additional information
Deutsche Bank Additional information
Slide 34: Specific items
Specific items In EUR m 4Q2011 Business P&L line Amount Impairment charge on Greek Government Bonds PBC Revenues (144) Actavis impairment charge CI Revenues (407) Cosmopolitan impairment charge CI Gen. & Admin. Exp. (135) CB&S charges mainly related to litigation CB&S Gen. & Admin. Exp. (380) Bank l
Slide 35: Postbank PPA: Amortization outlook
Postbank PPA: Amortization outlook FVA amortization pattern(1) Illustrative & simplified Comments IBIT, in EUR m ― 1 Positive P&L mainly results from amortization of negative FVAs on 1 Positive impact from amortization of negative FVAs investment securities and CRE portfolio potentially volatile a
Slide 36: Loan book
Loan book In EUR bn … IAS 39 impact on CIB loan book 34 35 32 27 25 23 23 23 411 398 398 416 417 8 11 10 7 CI 11 292 283 147 135 135 150 151 270 CIB 12 11 13 136 154 147 126 126 128 132 135 PCAM ex Postbank 121 126 125 129 125 123 124 124 Postbank 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31
Slide 37: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR bn, as of 31 December 2011 ... DB 4Q2011 provision for credit losses(1) ex. PB, in EUR m ... Postbank (PB) 4Q2011 provision for credit losses(1)(2), in EUR m 362 IAS 39 reclassified assets Postbank 540 192 71 99 178 417 Low loan to value 2
Slide 38: Exposure to selected countries
Exposure to selected countries Net sovereign exposure(1) In EUR m 31 Dec 2010 31 Dec 2011 237 181 (70)% Ireland 12,120 8,011 1,767 (12) (45) 2,283 3,673 1,601 Portugal 1,321 Italy 448 Greece Spain Total Note: Numbers may not add up due to rounding differences (1) Exposures are presented after effect
Slide 39: VaR of CIB trading units
VaR of CIB trading units 99%, 1 day, in EUR m VaR of CIB trading units Constant VaR of CIB trading units(1) EUR 2.5 bn Sales & Trading revenues EUR 1.6 bn 120 100 80 60 40 20 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 78 80 75 76 56 45 46 44 43 29 (1) Constant VaR is an approximation of
Slide 40: Funding profile
Funding profile As at 31 Dec 2007 As at 31 Dec 2011 Total: EUR 1,206 bn 30% (EUR 361 bn) of Total: EUR 1,133 bn(2) 59% (EUR 664 bn) of Financing overall funding from Financing overall funding from Vehicles stable funding Vehicles 5% 2% stable funding sources sources(1) Capital Markets and Capital Se
Slide 41: Funding activities update
Funding activities update Funding cost development Observations In bps — Market conditions remain fragile but European Sovereign CDS activity in primary market in Jan 2012 440 iTraxx Senior Financials European Sovereign DB 5yr Senior CDSCDS encouraging 400 iTraxx Senior Financials DB issuance spread
Slide 42: Invested assets report
Invested assets(1) report In EUR bn Net new money 31 Dec 2010 31 Mar 2011 30 Jun 2011 30 Sep 2011 31 Dec 2011 4Q2011 FY2011 Asset and Wealth Management 825 799 797 780 813 5 (9) Asset Management 550 529 523 516 544 8 (13) Institutional 175 164 163 162 174 8 (4) Retail 178 175 173 157 164 (2) (4) Alt
Slide 43: Balance sheet leverage ratio (target definition)
Balance sheet leverage ratio (target definition) In EUR bn 2010 2011 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec Total assets (IFRS) 1,670 1,926 1,958 1,906 1,842 1,850 2,282 2,164 Adjustment for additional derivatives netting (559) (735) (760) (601) (508) (503) (821) (782) Adjustment fo
Slide 44: Total assets (adjusted)
Total assets (adjusted) In EUR bn 1,296 1,267 Positive market values Derivatives post- Derivatives post- from derivatives 85 netting 84 netting Trading securities 238 214 267 Trading assets 241 Trading assets Financial assets at FV through P&L Other trading assets 29 27 Reverse repos / securities bo
Slide 45: Cautionary statements
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 based on plans, estimates and pro