Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (May 2011)
31 slides from Deutsche Bank's roadshow presentation, May 16, 2011
Slide 1: Roadshow Frankfurt
Deutsche Bank Roadshow Frankfurt Dr. Josef Ackermann Chairman of the Management Board and the Group Executive Committee 16 May 2011 Deutsche Bank Roadshow Frankfurt, 16 May 2011 financial transparency. Investor Relations Dr. Josef Ackermann, CEO
Slide 2: Key take-aways from 1Q2011 results
Key take-aways from 1Q2011 results — Strong capital generation and increasing risk efficiency result in higher capital ratios — Solid CIB performance across all major business lines demonstrates strength of global franchise, results of focused investments and synergies from CIB integration — PCAM wi
Slide 3: Agenda
Agenda 1 1Q2011: Strong start into the year 2 Delivering on Phase 4 of our management agenda Deutsche Bank Roadshow Frankfurt, 16 May 2011 financial transparency. 3 Investor Relations Dr. Josef Ackermann, CEO
Slide 4: Strong results prove capital generation capabilities …
Strong results prove capital generation capabilities … Income before income taxes Net income In EUR bn In EUR bn 2.8 3.0 1.8 2.1 (2) 1.5 1.3 1.2 1.1(2) 0.7 0.6 (1.0) (1.2) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2010 2011 Pre-tax return on equity(1), in % Effective tax rate, in % 30 15 (10)/13(2) 6
Slide 5: … as risk and capital profile continues to improve
… as risk and capital profile continues to improve 13.4 13.4 12.3 Tier 1 ratio, in % 11.2 11.3 11.5 9.6 9.6 8.7 Core tier 1 ratio, in % 7.5 7.5 7.6 346 328 292 303 277 RWA, in EUR bn 1Q 2Q 3Q 4Q 1Q 2010 2011 Note: Tier 1 ratio = Tier 1 capital / RWA; Core tier 1 ratio = (Tier 1 capital - hybrid Tier
Slide 6: We continue to benefit from our funding cost advantage
We continue to benefit from our funding cost advantage Funding cost development Observations In bps European Sovereign CDS iTraxx Senior Financials — Improved market conditions during 1Q11 240 although many macro challenges remain DB 5yr Senior CDS DB issuance spread — 2011 funding plan of EUR 26 bn
Slide 7: Solid performance across all major business lines in CIB
Solid performance across all major business lines in CIB Income before income taxes, in EUR m Corporate Banking & Securities Global Transaction Banking Negative goodwill(1) 4Q2010 efficiency measures(2) 2,589 2,304 478 1,101 257 214 779 270 625 119 130 94 1Q 2Q 3Q 4Q 1Q 1Q(3) 2Q 3Q 4Q 1Q 2010 2011 2
Slide 8: Record quarterly results in PCAM
Record quarterly results in PCAM Income before income taxes, in EUR m Asset and Wealth Management Private & Business Clients Net HuaXia one-off impact Net Postbank contribution(1) 788 236 190 221 91 222 65 59 30 331 189 233 245 192 (5) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2010 2011 (1) Includes c
Slide 9: On track to deliver on 2011 targets
On track to deliver on 2011 targets Income before income taxes, in EUR bn Phase 4 potential 1Q2010 1Q2011 2011 Key features / Prospects Corporate Banking & — Actavis with expected positive contribution 2.6 2.3 6.4 transferred to Corporate Investments Securities Global Transaction 0.1 0.3 1.0 — Poten
Slide 10: Agenda
Agenda 1 1Q2011: Strong start into the year 2 Delivering on Phase 4 of our management agenda Deutsche Bank Roadshow Frankfurt, 16 May 2011 financial transparency. 10 Investor Relations Dr. Josef Ackermann, CEO
Slide 11: Economic environment remains challenging
Economic environment remains challenging Global Macroeconomic Tensions Current account balances (% GDP), annual avg. for 2000-2010 Germany 5.1 Diverse Italy (2.3) Spain (6.9) global Euro Area 0.2 Bank economic USA (4.7) levies develop- Canada Japan 0.4 3.6 ment India (1.1) China 6.7 OECD (1.2) Sourc
Slide 12: Management Agenda Phase 4
Management Agenda Phase 4 Management Agenda Phase 4 2009 – 2011 Increase CIB profitability with renewed risk and Focus on core PCAM businesses and home market balance sheet discipline leadership Focus on Asia as a key driver Reinvigorate our of revenue growth performance culture Deutsche Bank Roadsh
Slide 13: CIB: Second best full-year results ever with significantly lower resources
CIB: Second best full-year results ever with significantly lower resources Income before income taxes Significantly lower resources In EUR bn CIB resources, current vs. peak levels(1) 39% 6.1 6.0 5.1 (34)% Balance Sheet 4.3 4.3 2.8 (18)% RWA (47)% Value at risk (2) (100)% Dedicated Prop Trading (7.4
Slide 14: Consistently delivering more stable revenues than peers
Consistently delivering more stable revenues than peers Lower volatility of results … … but better performance 2002-2010: CIB average annual revenues(1) vs. 2002-2010: CIB total revenues, in EUR bn average volatility(2), in EUR bn DB aggregate out-performance (2002 – 2010): EUR 25 bn 7 Deutsche Bank
Slide 15: Our core CIB business will continue to deliver strong ROE
Our core CIB business will continue to deliver strong ROE Significant proportion of RWA in legacy business Observations CIB RWA breakdown illustrative — Core business expected to return above cost of equity despite additional RWA requirements ~25% — Growth in core business profitability from higher
Slide 16: GTB successfully withstood macroeconomic headwinds …
GTB successfully withstood macroeconomic headwinds … Stable total revenues throughout the Solid net interest revenues business cycle during low interest rate environment Real GDP growth Euroland USA Interest rates ECB main refinancing rate Fed funds target rate 2.8 2.8 1.9 1.7 0.3 0.0 2007 2008 2009
Slide 17: ... and is one of the major pillars of Deutsche Bank's liquidity and performance
... and is one of the major pillars of Deutsche Bank‘s liquidity and performance Liquidity provided to DB Group Pre-tax Return on Equity(3) GTB B/S, in EUR bn, 31 December 2010 In %, based on Average Active Equity 120 Non-interest Cash bearing deposits provided +65 to the Group 55 Interest bearing 1
Slide 18: AM: Business rightsizing efforts have proven successful
AM: Business rightsizing efforts have proven successful Headcount reduction Platform de-risking Cost management Reported FTEs Risk positions(1), in EUR bn Non-interest expenses(2), in EUR bn (30)% (75)% (32)% 3,505 2.5 2.1 1.4 2,443 0.6 2007 2010 2007 2010 2007 2010 (1) Seed capital and co-invest Au
Slide 19: PWM in the league of leading wealth managers
PWM in the league of leading wealth managers Invested Assets As of 31 December 2010, in EUR bn Brokerage assets 1,515 Wealth Management/ Private Banking assets 1,207(1) 1,171 649 550(2) 617 428 291 275(3) 254 400 137 214 238 Bank of Morgan UBS Credit JP HSBC BNP Paribas Julius America Stanley Suisse
Slide 20: Germany: Continued healthy economy …
Germany: Continued healthy economy … GDP growth with ―V-shaped‖ recovery, robust outlook German exports vs. world trade qoq (lhs) yoy (rhs) German exports World trade Real, in % Indexed, Jan 2004 = 100 3 6 175 2 4 150 1 2 0 0 125 (1) (2) (2) (4) 100 (3) (6) (4) (8) 75 2007 2008 2009 2010 2011e 04 05
Slide 21: …and a retail banking environment better than perceived
…and a retail banking environment better than perceived Retail banking markets overview Positioning of combined PBC / Postbank Retail banking revenues after risk costs 2009(1), in EUR bn — Significant combined PBC / Postbank share in 61 Europe‘s largest retail banking market 39 35 30 25 — Price lead
Slide 22: In this environment there is room for profitable growth ...
In this environment there is room for profitable growth ... Income before income taxes, FY 2010 German retail market clients German retail segment, in EUR m Dec 2010, in million Savings Savings banks 5,600 banks ~50 Mutual 4,462 Mutual ~30 banks banks (1) (2) PBC+ 1,382 PBC + 10 14 24 494 11 253 7 4
Slide 23: ... based on healthy standalone ratios
... based on healthy standalone ratios High RoEs through the crisis ... ... but efficiency to be improved Pre-tax RoE, in % Cost-Income-Ratio, in % PBC(1) PBC(1) Postbank Retail reported Postbank Retail reported xx Combined xx Combined 33 35 24 32 68 68 71 69 42 39 71 73 72 70 64 64 67 65 34 33 32 3
Slide 24: Postbank: Potential for capital and funding benefits
Postbank: Potential for capital and funding benefits As at 31 Dec 2010, in EUR bn Operational risk 210 illustrative Non- Customer Bank Aspire to free up 67 capital and redeploy at higher RoE (1) Creates potential deposit overhang post run-off 7.8 Non- Customer customer Bank assets Customer assets As
Slide 25: A clear integration roadmap has been defined ...
A clear integration roadmap has been defined ... Deepening Cooperation / Alignment / Integration / Target state definition Harmonization Migration — Implementation of target — Transition to integrated business model — Assure continued strong target state — Migration to joint IT operating performance
Slide 26: … to reach ambition level for the combined retail franchise
… to reach ambition level for the combined retail franchise Revenues of EUR >10 bn Synergies of EUR ~ 1 bn Income before income taxes of EUR >3 bn Cost / income ratio of <60% Pre-tax RoE of >20% Top 5 retail deposit taker in Europe Assumptions: Full run-rate, i.e. full synergies realized PPA effects
Slide 27: Megatrends driving growth in Asia supporting our businesses
Megatrends driving growth in Asia supporting our businesses Well-positioned today On track to achieve our aspirations Net revenues Asia/Pacific excl. Japan, in EUR bn Bank of 2005, 2007 the Year 2008 — FX #1 — Fixed income #1 Top 5 investment 21% p.a. CB&S(1) banking franchise ~4.0 — Cash Equiti
Slide 28: Performance culture: Continued focus on cost efficiency
Performance culture: Continued focus on cost efficiency Complexity Reduction Program, CIB integration and Postbank integration In EUR m Gross cost savings 2500 Cost-to-achieve 2000 1500 1000 Net cost savings 500 0 2010 2011 2012 2013 2014 2015 Deutsche Bank Roadshow Frankfurt, 16 May 2011 financial
Slide 29: The new Deutsche Bank
The new Deutsche Bank Well capitalised More balanced Core tier 1 ratio Income before income taxes (1) Classic banking (PCAM / GTB) Investment bank (CB&S) 8.7% > 8% Basel 2.5 Basel 3 29% >40% De-risking <60% Retained 71% ABN AMRO earnings Netherlands Dec 2010 Jan 2013 2009 2010 2013 More efficient Ho
Slide 30: Summary and Outlook
Summary and Outlook — Strong results validate our strategy laid out in Management Agenda Phase 4 – EUR 10 bn pre-tax profit target for our business divisions in sight — Regulatory and fiscal challenges will have meaningful impact on international competitiveness but will also provide opportunities —
Slide 31: 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