Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q4 2008 Earnings Presentation
39 slides from Deutsche Bank's earnings presentation, Feb 5, 2009
Slide 1: Financial Analysis
Financial Analysis Stefan Krause Chief Financial Officer 5 February 2009
Slide 2: Agenda
Agenda 1 Group p summary y 2 Capital and balance sheet 3 Liquidity and funding Investor Relations 02/09 · 2
Slide 3: Results in summary
Results in summary In EUR bn 4Q2008 4Q2007 3Q2008 FY2008 FY2007 Net revenues (0.9) 7.3 4.4 13.5 30.7 Provision for credit losses (0.6) (0.3) (0.2) (1.1) (0.6) Noninterest expenses (4.7) (5.5) (4.0) (18.2) (21.4) Income (loss) before income taxes (6.2) 1.4 0.1 (5.7) 8.7 Net income (loss) (4.8) 1.0 0.
Slide 4: Segment results: Fourth quarter
Segment results: Fourth quarter In EUR m CB&S GTB AWM PBC CI C&A Group R Revenues (3 774) (3,774) 751 588 1 410 1,410 28 112 (885) Provision for credit losses (358) (3) (13) (216) (1) (0) (591) Noninterest expenses (1,657) (457) (1,451) (1,143) (26) (11) (4,746) Income (loss) before (5,773) 291 (860
Slide 5: Net revenue development
Net revenue development In EUR bn (56)% 30.7 9.6 8.8 73 7.3 5.1 5.4 4.6 4.4 13.5 (0.9) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2007 2008 2007 2008 Investor Relations 02/09 · 5
Slide 6: Non-interest expenses
Non-interest expenses G&A expenses: In EUR m In EUR bn VAT benefit ~(110) Litigation provision ~100 RREEF infrastructure investment ~80 Auction Rate Securities provision ~40 (15)% Other non-comp expenses: Impairment on RREEF infrastr. investment ~270 Impairment on DWS Scudder ~300 21 4 21.4 6.3 18.2
Slide 7: Trading exposures in key areas
Trading exposures in key areas 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 4.6 (1),(2) 2.6 09 0.9 05 0.5 (1) Gross Net Gross Net CDO / RMB
Slide 8: Monoline exposure related to U.S. residential mortgages
Monoline exposure related to U.S. U S residential mortgages Exposures in EUR bn Exposures, Breakdown Subprime Super Subprime Alt-A Senior Other FV prior to FV after By Notional Fair Value before credit provision Credit Monoline rating credit credit provision* provision* provision* AA Rated 1.6 (0.0)
Slide 9: Other monoline exposure
Other monoline exposure Exposures in EUR bn Exposures, Breakdown Corporate single CMBS Trust Preferred name / CDO and other CLOs FV prior to FV after Student Loans Other Credit Monoline rating credit credit provision* provision* provision* By Notional Fair Value before credit provision AA Rated 2.0
Slide 10: Value of Level 3 assets unchanged
Value of Level 3 assets((1)) unchanged Asset classes Comments In EUR bn Criteria for level 3 categorization unchanged 88 89 3 2 6 6 Key changes in composition year over year: 14 – Transfer from Level 2 to level 3 41 – Market volatility drives rises in derivative volumes 50 – IAS 39 reclassificat
Slide 11: Agenda
Agenda 1 Group p summary y 2 Capital and balance sheet 3 Liquidity and funding Investor Relations 02/09 · 11
Slide 12: Capital ratios and RWA development
Capital ratios and RWA development 10.3 10.1 10.1 Target: 9.2 92 9.3 93 ~10% 10% 8.7 8.8 8.6 8.4 7.5 7.2 7.1 7.0 6.9 6.9 7.0 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 base
Slide 13: Development of Tier I capital in fourth-quarter 2008
Development of Tier I capital in fourth-quarter 2008 In EUR bn 32.8 1.2 31.1 0.9 1.0 ((4.8)) 30 Sep Net Release of Contingent Other 31 Dec 2008 income dividend capital measures / 2008 accrual conversion effects Investor Relations 02/09 · 13
Slide 14: IFRS balance sheet: Development by category
IFRS balance sheet: Development by category Positive market values In EUR bn from derivatives Trading securities 1,624 Reverse repos / securities borrowed 2 202 2,202 Other trading assets 2,062 1,383 Loans des. at FV Other financial assets des. at FV through P&L 727 1,224 1,383 1,624 Financial asset
Slide 15: Derivative market values driven by certain factors
Derivative market values driven by certain factors In EUR bn Quarter-on-quarter development Key drivers Netting under U.S. GAAP ‘proforma’ Increase driven by sharp falls in USD and EUR U.S. GAAP ‘proforma’ interest Rates Volatile FX, Credit and Equity markets had a similar but smaller impact 68%
Slide 16: U.S. GAAP pro-forma assets: Analysis of managed reductions
U S GAAP ‘pro-forma’ U.S. pro-forma assets: Analysis of ‘managed managed reductions reductions’ In EUR bn ‘Managed reductions‘ 1 318 1,318 319 Positive market values from 107 derivatives 1,030 , Financial assets Trading securities 347 at FV through P&L 128 132 Other trading assets 69 Reverse repos /
Slide 17: Development of total assets: IFRS and U.S. GAAP pro-forma
Development of total assets: IFRS and U.S. U S GAAP ‘pro-forma’ pro-forma Total assets, in EUR bn 30 Sep 2008 31 Dec 2008 2,202 2,062 2 062 (22)% 1,318 (620) (101) ((23)) 1 030 1,030 (1,097) (7) (69) IFRS Derivatives Pending Repo U.S. GAAP U.S. GAAP Repo Pending Derivatives IFRS netting (1) settleme
Slide 18: Leverage ratio development
Leverage ratio development Balance sheet leverage ratio per target definition* 38 32 28 30 June 2008 30 September 2008 31 December 2008 * Assets based on U.S. GAAP ‘pro-forma’; 30 Sep 2008 and 31 Dec 2008 figures reflect revision of application of U.S. GAAP netting rules Investor Relations 02/09 · 1
Slide 19: Provision for credit losses
Provision for credit losses Single Si l counterparty t t In EUR m relationship IAS 39 impact 1,076 591 257 5 185 612 329 236 105 114 135 72 98 81 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2007 2008 2007 2008 Thereof: CIB (20) (42) (19) 190 (11) (9) 66 361 109 408 117 124 124 136 125 145 169 229 501 668 Ther
Slide 20: Problem loans
Problem loans Problem loans not considered impaired under IFRS In EUR bn IFRS impaired loans(1) IFRS impaired loans coverage ratio(2) 4.6 39 3.9 3.1 3.2 3.3 3.1 2.9 2.8 3.2 3.7 2.6 2.6 2.7 2.5 2.5 2.4 63% 66% 64% 64% 62% 65% 53% 53% 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep(3) 31 D Dec 2007 2
Slide 21: Agenda
Agenda 1 Group p summary y 2 Capital and balance sheet 3 Liquidity and funding Investor Relations 02/09 · 21
Slide 22: Unsecured funding by source
Unsecured funding by source 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 Capital markets Short-term wholesale funding Retail deposits Fiduciary, clearing & other deposits Note: Figures may not a
Slide 23: Deutsche Bank's funding position
Deutsche Bank’s Bank s funding position Modest additional capital market funding CDS spreads support funding cost advantage New issuance, in EUR bn 5-year senior CDS, in bps 1 July 2007 2 February 2009 381 54 45 295 306 263 163 167 171 127 16 106 70 19 35 35 14 13 18 11 10 12 8 2007 2008 Plan BNP JP
Slide 24: Additional information
financial transparency. Additional information Analyst Meeting A Passion to Perform. Deutsche Bank
Slide 25: Leveraged Finance exposure: Current status
Leveraged Finance exposure: Current status Composition of current loans and loan commitments In EUR bn 30 Sep 2008 total loans and loan commitments Funded 24.1 FX 0.2 Sales ((1.0)) Restructured 0.1 10.9 New Commitments 0.1 Cancelled (12.2) (1.0) 31 Dec 2008 total loans and loan commitments 11.3 Gros
Slide 26: Commercial Real Estate: Current status
Commercial Real Estate: Current status Composition of traded whole loans and loan commitments(1) In EUR bn 30 Sep 2008 traded loans at fair value(2) 12.4 Total IAS 39 reclass in 2008: EUR 6.9 bn FX (0.5) 2.6 Sales (1.8) Transfer to loans held (per IAS 39) (5.6) 0.5 Other Europe Other 0.1 31 Dec 2008
Slide 27: Assets and Liabilities: Analysis
Assets and Liabilities: Analysis Liquidity management view by product, as of 31 Dec 2008, in EUR bn 2 202 2,202 2 202 2,202 Derivatives & Derivatives & Settlement Balances(1) 1,264 1,210 Settlement Balances(1) Reverse Repo & 133 Repo & Other Secured 168 Other Secured 68 Trading Liabilities(2) 162 L
Slide 28: FY2008 IAS 39 reclassifications
FY2008 IAS 39 reclassifications In EUR bn FY2008 total impact from reclassifications Assets reclassified Assets reclassified Total in 3Q2008 in 4Q2008 (1) Net Revenues 2.3 1.2 3.6 Provision for credit losses (0.2) (0.1) (0.3) Noninterest expenses - - - Income before income taxes 2.2 1.1 3.3 RWA(2) 2
Slide 29: Number of shares for EPS calculation
Number of shares for EPS calculation In million Average At end of period FY FY 4Q 31 Dec 30 Sep 31 Dec 2007 2008 2008 2007 2008 2008 Common shares issued 527 542 571 530 571 571 Total shares in treasury (28) (25) (16) (29) (25) (8) Common shares outstanding 499 517 555 501 546 563 (1) Forward purcha
Slide 30: Group headcount
Group headcount Full-time equivalents, at period end 31 Dec 2008 vs. 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 30 Sep 2008 2007 2008 2008 2008 2008 Total Net of de-/consoli- change dation CIB 16,510 15,638 15,614 15,547 15,033 (514) (612) PCAM 31,196 31,706 32,143 32,569 32,310 (259) (258) Corporate 29 29
Slide 31: Invested assets report
Invested assets((1)) report In EUR bn Net new money 31 D Dec 31 M Mar 30 J Jun 30 S Sep 31 D Dec 2007 2008 2008 2008 2008 4Q2008 FY2008 Asset and Wealth Management 749 698 700 700 628 (23) (13) Asset Management 555 516 515 510 463 (15) (22) Institutional 158 150 155 156 159 9 10 Retail 234 214 211 1
Slide 32: Regional invested assets – AM and PWM
Regional invested assets((1)) – AM and PWM In EUR bn 31 Dec 08 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec vs. 2007 2008 2008 2008 2008 31 Dec 07 Asset Management 555 516 515 510 463 (17)% Germany 264 252 248 232 200 (24)% UK 16 16 16 19 18 14 % Rest of Europe 37 36 34 34 32 (14)% Americas 205 187 192 202 19
Slide 33: Regional net new money – AM and PWM
Regional net new money – AM and PWM In EUR bn 4Q2007 FY2007 1Q2008 2Q2008 3Q2008 4Q2008 FY2008 Asset Management 5 27 2 1 (11) (15) (22) G Germany 1 20 2 (3) (7) (22) (29) UK 1 7 1 1 3 (1) 4 Rest of Europe 1 (7) (0) (1) 0 (1) (2) Americas 1 3 0 4 (6) 9 7 Asia / Pacific 1 4 (1) (0) (1) (1) (3) Private
Slide 34: Listed holdings
Listed holdings In EUR m Stake Market value (in %) 31 Dec 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2008 2007 2008 2008 2008 2008 Daimler AG 2.7% 2,967 1,567 1,027 943 692 Allianz SE - 1,154 867 584 - - Linde AG 2.4% 789 571 570 418 250 Other n.m. 171 141 122 135 129 Total market value 5,081 3,147 2,303 1,
Slide 35: Loan book
Loan book xx IAS 39 impact on CIB loan book In EUR bn 35% 271 255 12 CI 209 217 25 34 193 195 201 186 CIB 145 151 100 107 112 91 97 97 PCAM 94 96 98 100 102 105 109 108 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2007 2008 Note: Total incl. CI / Other; figures may not add up due to round
Slide 36: Risk
Risk VaR of CIB trading units (99%, 1 day), in EUR m EUR 2.7 bn Sales & Trading revenues EUR (4.8) bn 170 150 130 110 90 70 50 ∅ 91.0 ∅ 117.8 ∅ 112.5 ∅ 123.7 ∅ 133.8 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 Investor Relations 02/09 · 36
Slide 37: Consolidated balance sheet – Assets
Consolidated balance sheet – Assets In EUR bn Change 31 Dec 2008 31 Dec 2007 Absolute In % Assets Cash and due from banks 10 9 1 14% Interest-earning deposits with banks 65 22 43 200% Central bank funds sold and securities purchased under 9 14 (4) (32)% resale agreements Securities borrowed 35 56 (2
Slide 38: Balance sheet leverage ratio (target definition)
Balance sheet leverage ratio (target definition) In EUR bn 31 Dec 30 Sep 2008 2008 Total assets (IFRS) 2,202 2,062 Adjust derivatives according to U.S. GAAP netting rules (1,097) (620) Adjust pending settlements according to U.S. GAAP netting rules (69) (101) Adjust repos according to U.S. GAAP nett
Slide 39: Cautionary statements
Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). (IFRS) It is preliminary and unaudited and may be subject to adjustments based on the preparation of the full set of financial state