Deutsche Bank Ag · XETR:DBK

Deutsche Bank — Morgan Stanley European Financials Conference 2009

23 slides from Deutsche Bank's conference presentation, Mar 31, 2009

  1. Slide 1: Deutsche Bank – Dr. Josef Ackermann, Morgan Stanley European Financials Conference

    Deutsche Bank Dr. Josef Ackermann Chairman of the Management Board Morgan Stanley European Financials Conference London, 31 March 2009

  2. Slide 2: Agenda

    Agenda 1 Responding to challenging conditions 2 Managing capital, funding and balance sheet risk 3 Emerging stronger: Near-term prospects Investor Relations 03/09 · 2

  3. Slide 3: 2008: Impact of challenging environment

    2008: Impact of challenging environment In EUR bn Net revenues Net income Tier I capital Mark-downs Dividend* Net revenues EUR 0.50 6.5 31.1 2.3 6.1 28.5 28.3 26.5 25.6 30.7 3.5 22.7 23.5 21 6 21.6 21 9 21.9 21.3 21.9 21 9 2.5 18.7 1.4 7.0 0.4 13.5 (3.9) ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘02 ‘03 ‘04 ‘05 ‘

  4. Slide 4: We have responded strategically in all core businesses

    We have responded strategically in all core businesses CB&S „ Recalibration of the investment banking business model GTB „ Continued growth initiatives „ AM: Reengineering business model to current market levels AWM „ PWM: Efficiency program / selective growth opportunities „ Growth G th and d effic

  5. Slide 5: In Sales & Trading, we have acted decisively across the platform

    In Sales & Trading, Trading we have acted decisively across the platform Significant reduction in proprietary risk Continued management of legacy exposures Notional Capital EPT EPT* U S RMBS exposures U.S. Hedges SABA* Net exposure (90)% (50)% Aug 07 Jan 08 Jun 08 Sep 08 Dec 08 Dec 07 Mar 08 Jun 08

  6. Slide 6: We have recalibrated our Sales and Trading model

    We have recalibrated our Sales and Trading model Shift in business model (revenue mix) Key actions Illustrative De-risk ~5% Highly illiquid „ Scale-back / eliminate illiquid prop activity ~15% positions iti „ Sharply reduced retention of structured un- hedgeable risk „ Significant curtailment of non

  7. Slide 7: Agenda

    Agenda 1 Responding to challenging conditions 2 Managing capital, funding and balance sheet risk 3 Emerging stronger: Near-term prospects Investor Relations 03/09 · 7

  8. Slide 8: Solid capital ratios through the crisis

    Solid capital ratios through the crisis 10.3 10.1 10.1 Target: 92 9.2 93 9.3 ~10% 8.7 8.8 8.6 8.4 7.5 7.2 7.1 7.0 7.0 6.9 6.9 6.8 329 319 308 311 308 303 305 285 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2007 2008 Tier I ratio, in % Core Tier I ratio, in % RWA, in EUR bn Note: 2007 bas

  9. Slide 9: Intrinsic capital strength

    Intrinsic capital strength BIS Tier I ratio as of 31 December 2008, in % State capital injections Tier I ratio before state capital injections 17.9 15.6 13.3 11.9 11 0 11.0 10 9 10.9 10.1 9.9 9.1 8.8 8.6 7.8 14.3 13 1 13.1 9.1 8.9 8.3 6.7 6.4 7.3 7.3 MS * GS * CS C UBS JPM DB RBS BoA SOC BAR BNP * D

  10. Slide 10: Unsecured funding: Quantity and quality

    Unsecured funding: Quantity and quality In EUR bn 511 498 Cash and liquidity reserves exceed 15% 73 short term short-term 153 30% wholesale funding 426 358 + 68 30 June 2007 31 December 2008 Short-term wholesale funding Fiduciary, clearing & other deposits Capital markets Retail deposits Note: Figur

  11. Slide 11: A strong funding position in 2009

    A strong funding position in 2009 Modest additional capital market funding CDS spreads support funding cost advantage New issuance, in EUR bn Remaining 5-year senior CDS, 26 March 2009, in bps 569 54 370 45 331 274 233 184 184 192 16 120 99 2007 2008 Plan BNP JPM CS BAR UBS GS BoA MS Citi 2009 Sourc

  12. Slide 12: Substantial balance sheet reduction in 2008

    Substantial balance sheet reduction in 2008 Year-end total assets, U.S. GAAP, in EUR bn 2007 2008 (26)% (8)% 45% (16)% (24)% 1,538 1,488 1,400 1,342 1,370 (4)% 1 199 1,199 (27)% (9)% 1,128 1,063 1,030 916 763 697 820 786 712 519 (3) MS(1) GS(1) CS UBS(2) BAR(4) Citi JPM(5) (1) Diverging fiscal year

  13. Slide 13: We significantly reduced trading-book exposures

    We significantly reduced trading-book exposures 31 Dec 2007 31 Dec 2008 In EUR bn CDO Subprime U S RMBS U.S. (70)% (59)% (50)% (65)% 9.7 29 2.9 4.8 0.9 1.2 3.6 0.5 1.3 Gross Net Gross Net CRE Leveraged Finance (73)% (83)% (98)% (98)% 17.2 15.4 36.2 34.9 (1),(2) (1) 4.6 26 2.6 09 0.9 0.5 Gross Net Gr

  14. Slide 14: Monoline exposure related to U.S. residential mortgages

    Monoline exposure related to U.S. U S residential mortgages In EUR bn, as of 31 December 2008 AA monolines 7.8 Key features (0.0) 1.6 1.6 „ Assets – Significant g p portions of the underlying y g Alt-A Covered by assets are AAA rated with high levels of Investment Alt-A: 1.5 subordination Grade 5.1

  15. Slide 15: Other monoline exposure

    Other monoline exposure In EUR bn, as of 31 December 2008 AA monolines 27.9 3.5 3.2 Key features (0.3) „ Assets 11.2 TruPS – CLO: 1.4 1 4 – High subordination levels Covered by CMBS: 0.9 – High quality of underlying 9.2 Corp. single name / CDO: 0.5 Investment – Corp CDO is almost half the notional G

  16. Slide 16: Credit book risk in context

    Credit book risk in context In EUR bn Loan book Provision for credit losses Per end of December 2008 2H2007 In % of equity FY2008 pre-crisis(2) C 31 6 31.6 36 642 564 BoA 22.2 24 510 520 470 JPM 17 6 17.6 21 426 BAR 9.4 35 269 BNP 7.0 18 229 SOC 3.2 11 158 (1) UBS 2.1 6 DB 1.5 4 CS UBS DB SOC C JPM

  17. Slide 17: Agenda

    Agenda 1 Responding to challenging conditions 2 Managing capital, funding and balance sheet risk 3 Emerging stronger: Near-term prospects Investor Relations 03/09 · 17

  18. Slide 18: Some stabilisation of market conditions in the first quarter

    Some stabilisation of market conditions in the first quarter Basis risk Correlation CDS bond-basis funding spread, in bps EURJPY-Nikkei correlation, in % 300 1.30 1 225 150 .80 75 0 (75) .30 30 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q Volatility Liquidity Eurostoxx volatility 3M Euribor – 3M Eonia swap rate, i

  19. Slide 19: Global Markets: Opportunity to gain share, despite a lower revenue pool

    Global Markets: Opportunity to gain share, share despite a lower revenue pool 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

  20. Slide 20: GTB: Building on strong momentum

    GTB: Building on strong momentum Income before income taxes Outlook & prospects 1,106 Challenges: >4x „ Lower L iinterest t t rates t 945 „ FX movements „ Lower equity valuations 705 „ Risk hedging costs 433 Opportunities: 254 „ Expand into new markets „ Attract new clients „ Further develop product

  21. 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 Reported (30)% Before specific items Asset Management 646 15% „ Reposition European MM fund exposure „ Right-size RREEF 267 „ Downsize hedge fund platform 207 „ Cost savings in mid / back

  22. Slide 22: PBC: Implementing the 'Growth and Efficiency' program

    PBC: Implementing the ‘Growth Growth and Efficiency Efficiency’ program „ Advisory banking: Position for recovery in PBC investment products via selective investments Business Advisory Consumer „ Consumer banking: Position for margin model Banking Banking compression via cost-efficiency Efficiency m

  23. Slide 23: Cautionary statements

    Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). (IFRS) This presentation also contains forward-looking statements. Forward-looking statements are statements that are not historical

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