Slide 1: 4Q2009 results
Deutsche Bank 4Q2009 results Stefan Kra Krause se Chief Financial Officer Analyst Meeting, 4 February 2010
Slide 2: Agenda
Agenda 1 Group p results 2 Segment results Investor Relations 02/10 · 2
Slide 3: Highlights
Highlights 31 Dec 31 Dec 2008 2009 Income before income taxes (FY, in EUR bn) (5.7) 5.2 Profitability Net income (FY, in EUR bn) (3.9) 5.0 Pre-tax RoE (FY, target definition)(1) (20)% 15% p Tier 1 capital ratio 10.1% 12.6% Capital Core Tier 1 capital ratio 7.0% 8.7% strength Tier 1 capital (in EUR b
Slide 4: Net revenues
Net revenues Significant property impairment Mark-downs In EUR bn 0.6 (2) 0.9 0.5 00 0.0 10 1.0 3.2 2.3 0.1 0.2 7.5 12 1.2 (2), (2) 0(3) 28.0 28 7.2 7.9 7.2 (3) 5.4 5.5 13.6 4.6 4.4 (0.9) (1) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2008 2009 2008 2009 (1) Includes mark-downs of EUR 0.9 bn (2) Includes net
Slide 5: Provision for credit losses
Provision for credit losses Related to IAS 39 reclassified assets In EUR m 2,630 , 1,000 591 526 544 560 1,076 236 1,378 114 135 406 492 819 308 329 249 164 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2008 2009 2008 2009 Thereof: CIB (11) (9) 66 361 357 779 323 357 408 1,816 125 145 169 229 169 221 214 201 66
Slide 6: PBC loan book: Delinquency ratio
PBC loan book: Delinquency ratio Small corporates Mortgage At period end, 90≤x≤269 days past due(1)(2) Consumer Mortgage loans represent ~70% of PBC loan book 3.39% 3.31% 2.76% 2.71% 2.49% 2.58% 2.34% 2.40% 2.15% 2.21% 1.90% 1 95% 1.95% 1 99% 1.99% 2 01% 2.01% 1.78% 1.83% 1.61% 1.69% 1.52% 1.71% 1.7
Slide 7: Noninterest expenses
Noninterest expenses 3Q (in EUR m) 4Q (in EUR m) In EUR bn Severance 62 Severance 154 20.1 Repurchase Reversal of 18.3 of investm. p impairment products 200 DWS Scudder (291) 5.6 11.3 5.4 9.6 4.8 4.6 4.8 4.9 41 4.1 42 4.2 2.1 3.1 2.8 2.9 2.7 1.9 3.0 2.4 83 8.3 84 8.4 2.3 2.2 2.2 2.0 1.8 2.2 2.0 2.0
Slide 8: Compensation plan
Compensation plan Compensation model in accordance with G20 and FSB guidelines Reviewed by key regulators (BaFin, FSA, Fed) Significant portion of compensation deferred Key features Existing claw-back option further upgraded and significantly extended From 2010, introduction of pay mix shi
Slide 9: Income before income taxes
Income before income taxes In EUR bn 5.2 1.8 1.3 1.3 0.6 0.8 0.1 (0.3) (6.2) (5.7) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2008 2009 2008 2009 Pre-tax return on equity(1), in % ((3)) 8 1 ((74)) 22 15 15 9 ((18)) 15 (1) Annualised, based on average active equity Note: Figures may not add up due to rounding
Slide 10: Net income
Net income In EUR bn 50 5.0 1.4 1.3 1.2 1.1 0.6 0.4 (0.1) (4.8) (3.9) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 2008 2009 2008 2009 Effective tax rate, in % 45 ((0)) n.m. 23 35 18 ((6)) ((73)) 32 5 Note: Figures may not add up due to rounding differences Investor Relations 02/10 · 10
Slide 11: Capital ratios and risk-weighted assets
Capital ratios and risk-weighted assets 12.6 12.6 11.7 11 0 11.0 10.3 10.1 10.2 9.2 9.3 Target: ≥10% 8.7 8 7 7.8 8.1 7.5 7.0 7.1 6.8 6.9 319 316 (43) 303 305 308 295 288 273 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2009 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Core Tier 1 ratio = Tier 1 c
Slide 12: Development of total assets
Development of total assets In EUR bn 30 Sep 2009 31 Dec 2009 Leverage ratio(2) Target: 25x 28 1,660 1,501 25 23 915 891 (745) (609) IFRS tti (1) U.S. Netting N U S GAAP IFRS tti (1) U.S. Netting N U S GAAP 31 Dec D 30 S Sep 31 Dec D pro-forma pro-forma 2008 2009 2009 (1) For 30 Sep 09 incl. incl de
Slide 13: Agenda
Agenda 1 Group p results 2 Segment results Investor Relations 02/10 · 13
Slide 14: CB&S: P&L at a glance
CB&S: P&L at a glance In EUR m 4Q2009 3Q2009 4Q2008 4Q2008 FY2009 FY2008 FY2008 N t revenues Net 2 861 2,861 4 438 4,438 (3 741) (3,741) 16 197 16,197 428 Provision for credit losses (345) (318) (358) (1,789) (402) Noninterest expenses (2,123) (3,117) (1,690) (10,874) (8,550) Income before income ta
Slide 15: Sales & Trading revenues
Sales & Trading revenues Specific p item Mark-downs In EUR bn Net revenues 0.4 10 1.0 1.0 01 0.1 0.4 (2) 12.5 1.4 2.1 4.0 3.5 (3) 0.2 3.1 21 2.1 1.4 0.7 0 7 19 1.9 0.8 (0.5)(4) (1) (4 8) (4.8) 1Q 2Q 3Q 4Q Q 1Q 2Q 3Q 4Q Q Full year 2008 2009 2008 2009 (1) Includes mark-downs mark downs of EUR 1 1.7 7
Slide 16: Sales & Trading debt and other products
Sales & Trading debt and other products Net revenues Key features In EUR bn Overall O ll Specific item Accentuated slowdown in client business Mark-downs Lowest levels of volatility seen for many quarters Lower volumes and margins Net revenues 10 1.0 Lower usage of balance sheet, sheet RWA a
Slide 17: Sales & Trading equity
Sales & Trading equity Net revenues Key features In EUR m Overall O ll Reduced client activity towards year end Market share gains in Asia (Greenwich) 903 918 Cash Equities 745 830 637 Lower secondary market activity especially in December 275 Lower direct market access commissions Equity De
Slide 18: Origination & Advisory
Origination & Advisory Net revenues Key features In EUR m Advisory Ad i Generall G Origination Narrowed the gap to top 5 position (year-on-year) Significant market share gains in Americas in 2009 Advisory 1,090 1 090 Market activity increasing in low volume environment 152 Revenues up 10% -
Slide 19: Global Transaction Banking: P&L at a glance
Global Transaction Banking: P&L at a glance In EUR m 4Q2009 4Q2009 3Q2009 3Q2009 4Q2008 4Q2008 FY2009 FY2009 FY2008 FY2008 N t revenues Net 629 658 751 2 606 2,606 2 774 2,774 Provision for credit losses (12) (6) (3) (27) (5) Noninterest expenses (437) (459) (457) (1,804) (1,663) Income before incom
Slide 20: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m P&L Continued impact from low interest rates across all products and regions Reduced benefit of risk-based risk based funding Trade Finance: Continued strong underlying 283 281 291 performance 250 221 Cash Management
Slide 21: Asset and Wealth Management: P&L at a glance
Asset and Wealth Management: P&L at a glance In EUR m 4Q2009 4Q2009 3Q2009 3Q2009 4Q2008 4Q2008 FY2009 FY2009 FY2008 FY2008 Net revenues 784 772 588 2,688 3,264 Provision for credit losses (3) (5) (13) (17) (15) Noninterest expenses (456) (633) (1,451) (2,476) (3,794) Income before income taxes 326
Slide 22: Asset Management
Asset Management Income before income taxes Key features In EUR m Reversal of impairment DWS Scudder 291 Reversal of impairment related to DWS Scudder 348 RREEF impairments (12) intangible assets Severance (5) pp related costs Sal. Opp. ((4)) Portfolio / Fund Management fees improving in 142 pos
Slide 23: Private Wealth Management
Private Wealth Management Income before income taxes Key features In EUR m Revenue resilience, especially in the U.S. 95 100 Net new money inflows of EUR 3 bn in the quarter, EUR 7 bn in FY2009 40 Restructuring initiatives successfully conducted 21 27 (Year-on-year headcount reduction of 9%)
Slide 24: Private & Business Clients: P&L at a glance
Private & Business Clients: P&L at a glance In EUR m 4Q2009 4Q2009 3Q2009 3Q2009 4Q2008 4Q2008 FY2009 FY2009 FY2008 FY2008 Net revenues 1,391 1,389 1,410 5,576 5,777 Provision for credit losses (198) (209) (216) (790) (653) Noninterest expenses (1,146) (1,031) (1,143) (4,328) (4,178) co e be Income
Slide 25: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m Severance(1) S Revenues: Investment products: Slight recovery in brokerage 4 business and seasonably strong insurance revenues 5 Deposits: Stable despite low interest rates Credit products: Moderate volume growth and l
Slide 26: PCAM net new money flows by quarter
PCAM net new money flows by quarter In EUR bn 11 10 11 9 (2) (2) (6) ( ) (17) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2009 Investor Relations 02/10 · 26
Slide 27: Summary
Summary 31 Dec 31 Dec 2008 2009 Income before income taxes (in EUR bn) (5.7) 5.2 Profitability Net income (in EUR bn) (3.9) 5.0 Pre-tax RoE (target definition)(1) (20)% 15% p Tier 1 capital ratio 10.1% 12.6% Capital Core Tier 1 capital ratio 7.0% 8.7% strength Tier 1 capital (in EUR bn) 31.1 34.4 Di
Slide 28: Additional information
Deutsche Bank Additional information
Slide 29: Loan book
Loan book xx IAS 39 impact on CIB loan book In EUR bn (4)% 271 276 268 255 263 261 12 14 13 13 13 CI 209 217 25 34 38 37 35 34 145 151 154 144 137 133 CIB 107 112 102 105 109 108 108 110 113 115 PCAM 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2008 2009 Germany excl. Financial Institutio
Slide 30: Composition of loan book and provisions by category
Composition of loan book and provisions by category xx 4Q2009 provision for credit losses, in EUR m In EUR bn, as of 31 Dec 2009 IAS 39 reclassified assets 560 165 121 274 Low loan to 261 value Substantially 34 hedged Highly diversified Substantially Short term / Mostly collateralised on
Slide 31: Pro-forma impact of IAS 39 reclassifications
‘Pro-forma’ Pro-forma impact of IAS 39 reclassifications In EUR m Total Total FY2008 – FY2008 - 2Q2009 3Q2009 FY2008 Total – 4Q2009 FY2008 Total – 1Q2009 2Q2009 3Q2009 4Q2009 1Q2009 3Q2009 FY08-3Q09 4Q2009 FY08-4Q09 (1) Incremental reported income (162) (666) (193) (1,020) (330) (1,350) Fair F i val
Slide 32: Problem loans
Problem loans xx IAS 39 impact - IFRS impaired loans In EUR bn 8.7 8.9 8.2 5.7 4.6 7.2 6.8 3.9 45 4.5 6.7 3.2 3.3 3.7 3.2 27 2.7 25 2.5 0.6 0.8 1.1 2.6 2.6 2.8 62% 65% 53% 53% 50% 46% 47% 46% 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 2008 2009 Problem loans not considered impaired unde
Slide 33: Monoline update
Monoline update Exposure materially reduced, reserve levels remain adequate Substantial reduction since 1Q2009 peak … … and exposure adequately reserved In EUR bn(1) Fair value after CVA CVA In EUR bn Fair value after CVA CVA as of 31 Dec 2009 (43)% 9.1 8.3 7.6 Net exposure to non-investment non inv
Slide 34: Value of Level 3 assets
Value of Level 3 assets((1)) Asset sset c classes asses 4Q2009 Q 009 development de e op e t In EUR bn Key changes: – Reduction in derivative market values (9)% 64 60 58 52 42 9 4 3 8 8 33 28 25 Financial assets AfS / Other Financial assets(2) 16 19 Other trading assets 13 Positive market values(3
Slide 35: Funding situation – Assets and liabilities
Funding situation – Assets and liabilities Balance sheet by product, as of 31 Dec 2009, in EUR bn 1,501 1,501 Unfunded IFRS Derivatives & Derivatives & settlement balances(1) 646 620 settlement balances(1) balance sheet it items Reverse repo & 100 Repo & other secured 160 64 Trading liabilities othe
Slide 36: Funding and liquidity
Funding and liquidity In EUR bn Funding u d g sources sou ces overview o e e Liquidity qu d ty position pos t o 31 Dec 2008 (Total: EUR 857 bn) Reduced funding demand following 31 Dec 2009 (Total: EUR 777 bn) asset reductions 202 Conservative funding mix maintained 169164 165 152 153 Available
Slide 37: U.S. GAAP pro-forma assets
U S GAAP pro-forma assets U.S. In EUR bn 1 030 1,030 Positive market values from 128 915 891 derivatives 84 69 Derivatives post-netting Financial assets Trading securities 205 at FV through P&L 247 202 207 Other trading assets 42 226 235 Trading assets Reverse repos / 117 24 28 securities borrowed L
Slide 38: Tier 1 capital and RWA development
Tier 1 capital and RWA development In EUR bn Tier e 1 cap capital ta RWA 288 0.2 0.2 1.3 (0.2) 3.0 (0.2) (6.7) 34.4 (3.4) 273 (0.6) (6 4) (6.4) (0 5) (0.5) 33.7 30 Sep 4Q09 FX Equity- 2009 Actuarial Other 31 Dec 30 Sep Market Opera- FX Risk Other 31 Dec 2009 Net effects based dividend loss on 2009 2
Slide 39: Group headcount
Group headcount Full-time equivalents, at period end 31 Dec2009 31 Dec 2009vs vs vs. vs. 31 Dec 31 Dec2008 2008 31 31 Dec 31 Mar Mar 30 Jun 30 Jun 30Sep 30 Sep 31Dec 31 Dec 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 Total Total NetNetofofde-/ de-/consoli- change change consolidation dation CI
Slide 40: Number of shares for EPS calculation
Number of shares for EPS calculation In million Average Average At end end of of period period FY FY 4Q 31 Dec 30 Sep 31 Dec 2008 2009 2009 2009 2008 2009 2009 Common shares issued 542 612 621 571 621 621 Total shares in treasury (25) (4) (2) (8) (1) (1) Common shares outstanding 517 608 619 563 620
Slide 41: Invested assets report
Invested assets((1)) report In EUR bn 31 Dec 31 31 Mar Mar 30 30Jun Jun 30 30Sep p Sep 3131Dec Dec Net Netnew newmoney money y 2008 2009 2009 2009 2009 2009 2009 2009 2009 4Q2009 4Q2009 FY2009 FY2009 Asset and Wealth Management 628 627 632 657 686 12 16 Asset Management 463 462 460 476 496 9 9 Insti
Slide 42: Regional invested assets – AM and PWM
Regional invested assets((1)) – AM and PWM In EUR bn 31 31Dec Dec 31 31 Mar Mar 30 30Jun Jun 30 30Sep Sep 31 31 Dec 3131 Dec 09 Dec 09 vs vs. vs. 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 31 Dec 08 31 Dec 08 Asset Management 463 462 460 476 496 7% Germanyy 200 194 200 211 214 7% UK 18 17 18
Slide 43: Regional net new money – AM and PWM
Regional net new money – AM and PWM In EUR bn 4Q2008 FY2008 1Q2009 2Q2009 3Q2009 4Q2009 FY2009 Asset Management (15) (22) (3) (3) 5 9 9 G Germany (22) (29) (3) (2) 2 1 (2) UK (1) 4 (0) 1 0 4 5 Rest of Europe (1) (2) (0) (1) (1) (0) (1) Americas 9 7 1 (2) 4 5 7 A i / Pacific Asia P ifi (1) (3) (0) 0
Slide 44: Corporate Investments
Corporate Investments Income before income taxes Key features In EUR m EUR (75) m impairment charge of CI's investment property in Cosmopolitan Resort & Casino 679 Postbank equity pick-up of EUR 21 m almost completely p y offset byy a negative g mark-to-market on put / call structure 377 275 238
Slide 45: 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 (4.8) bn Sales & Trading revenues EUR 1.9 bn 180 160 140 120 100 80 60 40 20 134 141 145 114 108 58 45 44 35 36 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 (1) Constant VaR is a
Slide 46: Balance sheet leverage ratio (target definition)
Balance sheet leverage ratio (target definition) In EUR bn 31 Dec 31 Dec 30 30 Sep p 2009 2009 2009 2009 Total assets (IFRS) 1,501 1,660 Adjust derivatives according to U.S. GAAP netting rules (533) (617) Adjust pending settlements according to U.S. GAAP netting rules (71) (122) Adjust repos accordi
Slide 47: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts;; they y include statements about our beliefs and expectations p and the assumptions p underlying y g them. These statements are based on plans, estima