Slide 1: Stefan Krause, Chief Financial Officer, Analyst Call
Deutsche Bank Deutsche Bank Stefan Krause Chief Financial Officer Analyst Call, 2 February 2012 Deutsche Bank Stefan Krause financial transparency. Investor Relations 2 February 2012
Slide 2: Agenda
Agenda 1 Group results 2 Segment g results 3 Key current topics Deutsche Bank Stefan Krause financial transparency. 2 Investor Relations 2 February 2012
Slide 3: Overview
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 o tab ty e ta RoE Pre-tax o (ta (target get de definition) to ) (3)% 6% Diluted EPS (in EUR) 0.15 0.63 (2) Dividend per share (in EUR) 0.75 0.75 31 Dec 2011 30 Sep 2011 Core Tier
Slide 4: Net revenues
Net revenues In EUR bn Postbank-related charge in 3Q2010 33.2 2.3 10.5 9.0 85 8.5 7.2 7.4 7.3 6.9 2.3 28.6 5.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY FY 2010 2011 2010 2011 Note: Figures may not add up due to rounding differences Deutsche Bank Stefan Krause financial transparency. 4 Investor Relations 2 Februar
Slide 5: 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 p 135 Other non-interest expenses(1) 7.1 26.0 6.3 6.3 6.7 23.3 5.9 5.7 5.9 54 5.4 4.3 2.8 13.1 3.1 3.4 2.7 12.7 3.6 3.
Slide 6: 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 5 0 402 464 463 91 1,274 (1) 188 406 47 362 373 82 111 64 47 278 79 23 1,250 262 129 117 949 243 22 (3) (3) 1,438(3) 103 50 (3) (3)
Slide 7: 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 06 0.6 08 0.8 0.2 (0.4) (1.0) (1 0) (1.2) (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 % Pre-tax Effective tax
Slide 8: Agenda: Segment results
Agenda 1 Group results 2 Segment g results 3 Key current topics Deutsche Bank Stefan Krause financial transparency. 8 Investor Relations 2 February 2012
Slide 9: Segment overview
Segment overview Income before income taxes taxes, in EUR m 4Q2011 4Q2010 4Q2011 significant items (422) EUR 380 m litigation charges CB&S 603 284 GTB 116 165 AWM 59 227 PBC 222 EUR 542 m impairment (722) charges on our investments in C CI (390) C Cosmopolitan lit and d Actavis A t i 117 C&A 98 Deut
Slide 10: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m In EUR m 4Q2011 4Q2010 3Q2011 FY2011 FY2010 In EUR m 3Q2011 4Q2011 (1) Revenues 2,463 3,711 2,602 14,885 17,551 Specific charges (310) (380) Provisions for (145) (89) (51) (304) (375) 2,572 credit losses 2 287 2,287 Noni
Slide 11: Sales & Trading debt and other products
Sales & Trading debt and other products Net revenues Key features In EUR m Overall — Revenues down q q-o-q o q due to seasonal declines, declines exacerbated by industry-wide falls in client activity due to ongoing European sovereign crisis 3,849 3,691 — Solid performance in client solutions FX / Mo
Slide 12: Sales & Trading equity
Sales & Trading equity Net revenues Key features In EUR m Overall — Overall revenues higher q-o-q despite weak client activity, driven by improved derivatives performance 944 943 872 Cash Equities — Solid revenues despite lower client activity 642 650 — Some market share gains in the US 555 539 Equi
Slide 13: Origination & Advisory
Origination & Advisory Net revenues Key features In EUR m Overall — Macro environment continued to impact origination activity across the industry – advisory activity remained solid Origination Advisory — Ranked #6 globally – very small gap to #5, despite higher exposure to slowdown in Europe 809 —
Slide 14: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m In EUR m 4Q2011 4Q2010 3Q2011 FY2011 FY2010 Negative goodwill(1) 4Q2010 efficiency measures(2) Revenues 929 866 941 3,608 3,379 Provisions for (64) (54) (41) (158) (113) credit losses 485 Noninterest exp. (581) (696) (640) (
Slide 15: Asset and Wealth Management
Asset and Wealth Management Income before income taxes Key features In EUR m In EUR m 4Q2011 4Q2010 3Q2011 FY2011 FY2010 227 190 Revenues 909 1,010 876 3,762 3,674 186 Provisions for 165 credit losses (11) (13) (11) (55) (39) Noninterest exp. (733) (937) (680) (2,941) (3,426) IBIT 165 59 186 767 210
Slide 16: Asset Management
Asset Management Income before income taxes Key features In EUR m In EUR m 4Q2011 4Q2010 3Q2011 FY2011 FY2010 Revenues 453 459 397 1,744 1,706 Provisions for (0) (1) 1 0 (1) credit losses Noninterest exp. (322) (362) (281) (1,298) (1,439) 124 117 131 IBIT 131 96 117 446 268 (1) 96 Net new money 8 4
Slide 17: Private Wealth Management
Private Wealth Management Income before income taxes Key features In EUR m In EUR m 4Q2011 4Q2010 3Q2011 FY2011 FY2010 Revenues 456 551 479 2,018 1,968 116 Provisions for 102 credit losses (11) (13) (12) (55) (38) 69 p Noninterest exp. ((411)) ((575)) ((398)) ((1,644)) ((1,987) , ) IBIT 34 (37) 69 3
Slide 18: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m 70 In EUR m 4Q2011 4Q2010 3Q2011 FY2011 FY2010 Cost to achieve related to Cost-to-achieve Postbank acquisition(1) Revenues 2,556 1,824 2,426 10,617 6,136 (2) Hua Xia one-off gain 263 Provisions for (311) (240) (359) (1,309)
Slide 19: Corporate Investments
Corporate Investments Income before income taxes 4Q2011 key features In EUR m In EUR m 4Q2011 4Q2010 Q 3Q2011 Q 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 exp. (520) (343) (299) (1,492) (1 492) (967) IBI
Slide 20: Agenda: Key current issues
Agenda 1 Group results 2 Segment g results 3 Key current issues Deutsche Bank Stefan Krause financial transparency. 20 Investor Relations 2 February 2012
Slide 21: Capital ratios and risk-weighted assets
Capital ratios and risk-weighted assets Basel 2 Basel 2.5 14.0 13.8 13 4 13.4 12 9 12.9 12.3 11.2 11.3 11.5 Tier 1 ratio, in % 9.6 10.2 10.1 9.5 87 8.7 C Core Ti Tier 1 ratio, ti 7.5 7.5 7.6 in % 346 328 320 338 381 292 303 277 RWA, in EUR bn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 Note: Tier 1 ratio = Ti
Slide 22: 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 05 0.5 36.3 0.9 0.2 54.3 381.2 0.5 34.1 01 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
Slide 23: 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 Basel
Slide 24: 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 25: 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 12,120 8,011 1,767 (12) (45) 2,283 3,673 1,601 Portugal 1,321 Italy y 448 Greece Spain Total Note: Numbers may not add up due to rounding differences (1) Exposures are presented aft
Slide 26: Additional information
Deutsche Bank Additional information
Slide 27: 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 28: 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 24.7 02 0.2 02 0.2 (0.8) (0.3) (0.4) 12.7 20 1 20.1 1.0 0.4 (0.4) 8.4 13.1 11.3 FY 2009 2009 FX Acquisitions, Bank lev
Slide 29: Impaired loans
Impaired loans In EUR bn IFRS impaired loans(1) Relating to IAS 39 loans Effect from Postbank(2) 9.4 8.5 7.4 7.4 7.4 7.6 2.0 63 6.3 6.7 6 7 1.8 1 8 1.3 1.5 2.9 2.8 2.7 0.2 0.8 0.8 1.1 1.2 1.1 4.9 5.5 5.6 5.9 45 4.5 46 4.6 47 4.7 4.8 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2010 2011 C
Slide 30: 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 31: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR bn, bn as of 31 December 2011 ... DB 4Q2011 provision for credit losses((1)) ex. ex PB 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
Slide 32: 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 33: 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 t bl ffunding di Vehicles 5% 2% stable funding sources sources(1) Capital Markets and C
Slide 34: 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 35: PBC – business division performance
PBC – business division performance In EUR m, m post post-minorities 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 4Q2011 85
Slide 36: 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 ti ti off negative ti FVAs FVA on 1 Positive impact from amortization of negative FVAs investment securities and CRE portfolio potentia
Slide 37: IAS 39 reclassification
IAS 39 reclassification Carrying Value vs. Fair Value 4Q2011 developments In EUR bn — The gap between carrying value and fair value has grown by EUR 0.3 bn in 4Q2011, however Sales & Trading - Debt Origination & Advisory an overall decrease of EUR 0.3 bn since 31 Loan Products Dec 2010 31 Dec 31 Dec
Slide 38: 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 1,670 1 926 1,926 1 958 1,958 1 906 1,906 1 842 1,842 1 850 1,850 2 282 2,282 2 164 2,164 Adjustment for additional derivatives netting (559) (735) (
Slide 39: Group headcount
Group headcount Full-time Full time equivalents equivalents, at period end 31 Dec 2011 31 Dec 2010 31 Dec 2011 vs vs. 31 Dec 2010 CIB 15,613 15,184 (429) PCAM 50,830 49,088 (1,743) Corporate Investments 1,553 1,389 (164) Infrastructure / 34,066 35,335 1,269 Regional Management Total 102,062 100,996
Slide 40: Number of shares
Number of shares In million Average used for EPS calculation End of period numbers FY 3Q 4Q 31 Dec 30 Sep 31 Dec 2011 2011 2011 2010 2011 2011 Common shares issued(1) 929 929 929 929 929 929 Total shares in treasury (17) (23) (28) (10) (30) (25) Common shares outstanding 913 907 902 919 899 905 Vest
Slide 41: 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 42: Regional invested assets – AM and PWM
Regional invested assets(1) – AM and PWM In EUR bn 31 Dec 2011 31 Dec 2010 31 Mar 2011 30 Jun 2011 30 Sep 2011 31 Dec 2011 vs. 31 Dec 2010 Assett M A Managementt 550 529 523 516 544 (1)% Germany(2) 244 242 246 234 240 (2)% UK 25 23 22 22 26 4% Rest of Europe 34 30 30 29 30 (11)% Americas 223 209 202
Slide 43: Regional net new money – AM and PWM
Regional net new money – AM and PWM In EUR bn 1Q2010 2Q2010 3Q2010 4Q2010 FY2010 1Q2011 2Q2011 3Q2011 4Q2011 FY2011 g Asset Management 4 ((12)) 2 4 ((1)) ( ) (5) ( ) (5) ((12)) 8 ((13)) (1) Germany 4 0 (1) 3 6 2 1 (3) 0 (0) UK (0) 1 1 3 4 (4) (0) (2) 4 (2) Rest of Europe 1 (1) (0) (1) (1) (2) (1) 0
Slide 44: VaR of CIB trading units
VaR of CIB trading units 99% 1 day 99%, 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 approxima
Slide 45: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts;; theyy include statements about our beliefs and expectations p and the assumptions p underlying y g them. These statements are based on plans, estimat