Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (September 2011)
29 slides from Deutsche Bank's roadshow presentation, September 2011
Slide 1: Deutsche Bank Roadshow Paris / Zurich / London
Deutsche Bank Deutsche Bank Dr Josef Ackermann Dr. Chairman of the Management Board and a d tthe eGGroup oup Executive ecut e Committee Co ttee Deutsche Bank Roadshow Paris / Zurich / London – 09/2011 financial transparency. Investor Relations Dr. Josef Ackermann Roadshow Paris / Zurich / London, Se
Slide 2: Agenda
Agenda 1 2Q2011 results 2 RoE Capital & Funding RoE, 3 CIB Strategy St t 4 PBC St Strategy t 5 S Summary and dOOutlook tl k Deutsche Bank Roadshow Paris / Zurich / London – 09/2011 financial transparency. 2 Investor Relations Dr. Josef Ackermann
Slide 3: Robust earnings despite difficult market conditions
Robust earnings despite difficult market conditions Income before income taxes Net income I EUR bn In b I EUR bn In b 2.8 3.0 1.8 1.8 2.1 15 1.5 13 1.3 ((1)) 1.2 1.1(1) 1.2 0.7 0.6 (1.0) (1.2) 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 2010 2011 2010 2011 Pre-tax return on equity(2), in % Effective tax rat
Slide 4: Good progress towards a more balanced business mix
Good progress towards a more balanced business mix Income before income taxes – share of operating businesses Classic banking (PCAM / GTB) Investment banking (CB&S) 29% 40% 60% 71% ABN AMRO Netherlands 2009 2010 1H2011 Deutsche Bank Roadshow Paris / Zurich / London – 09/2011 financial transparency.
Slide 5: Sovereign exposures well under control
Sovereign exposures well under control I EUR b In bn Overview of net sovereign exposure Key features 31 Dec 2010 — Joint sovereign exposure (net) ( ) to 30 Jun 2011 12.1 Greece, Ireland, Italy, Portugal and Spain declined 70% to EUR 3.7 bn as of 30 Jun 2011 vs. 31 Dec 2010, due to targetedd risk i k
Slide 6: Update on 2011 targets
Update on 2011 targets I Income before b f income i taxes, t in i EUR bn b Phase 4 1H2011 potential 2011 Key features / Prospects — Material deterioration of market assumptions versus plan. Corporate Banking & Concerns intensified over sovereign debt risk leading to 3.3 6.4 increased client uncertai
Slide 7: Agenda
Agenda 1 2Q2011 results 2 RoE Capital & Funding RoE, 3 CIB Strategy St t 4 PBC St Strategy t 5 S Summary and dOOutlook tl k Deutsche Bank Roadshow Paris / Zurich / London – 09/2011 financial transparency. 7 Investor Relations Dr. Josef Ackermann
Slide 8: Balancing key performance indicators
Balancing key performance indicators as off 30 JJune 2011 / 1H2011 RoE 18.9% Pre tax RoE Pre-tax 10.2% Liquidity Core Tier 1 ratio reserves Capital p - up 150 bps >EUR 150 bn Funding g Shareholder value Regulatory requirements Deutsche Bank Roadshow Paris / Zurich / London – 09/2011 financial transp
Slide 9: Profitability in a peer context
Profitability in a peer context Pre-tax return on equity 1H2011 reported, t d bbased d on llocall currency, iin % 21.1 18 9 18.9 18.0 16.4 15.4 15.2 12 3 12.3 10.0 8.4 7.0 n.m. (1) BNP JPM CS UBS GS SOC C MS BAR BoA(2) (1) Based on average active equity (2) 1H2011 result includes USD 18 bn mortgage-
Slide 10: Strong capital accumulation vs. peers
Strong capital accumulation vs. peers Core Tier 1 ratio(1) development in 1H2011, in basis points X C Core ti tier 1 ratio ti as off 30 JJun 2011 2011, iin % 14.6 10.2 13.1 16.1 9.3 11.6 9.6 11.0 9.6 12.9 8.2 410 0 150 90 80 80 80 40 20 (20) (40) (40) MS(2) CS UBS SOC C BNP BAR JPM GS BoA (1) Common
Slide 11: Capital ratios at record levels
Capital ratios at record levels att period i d end d 14 0 14.0 12.6 12.3 Tier 1 ratio, in % 10.1 8.5 8.6 10.2 8.7 8.7 Core Tier 1 ratio, in % 6.9 6.9 7.0 329 346 320 308 275 273 67 Postbank 58 RWA, in EUR bn 2006 2007 2008 2009 2010 1H2011 Note: Tier 1 ratio = Tier 1 capital / RWA; Core Tier 1 ratio
Slide 12: Continuous improvement of funding structure and liquidity
Continuous improvement of funding structure and liquidity I EUR b In bn Funding sources overview Liquidity position 30 June 2007 (Total: EUR 1 1,185 185 bn) 30 June 2011 (Total: EUR 1,088 bn) — Liquidity Reserves(3) as of 30 June 30 June 2011, in % of total 2011 exceed EUR 150 bn, up some 19 26 12 1
Slide 13: Funding activities update
Funding activities update Funding cost development Observations In bps European Sovereign CDS — Ch Challenging ll i market k t conditions diti d due tto iTraxx Senior Financials 360 Eurozone difficulties and global economic DB 5yr Senior CDS DB issuance spread (4wk mov avg.) concerns 320 DB issuance
Slide 14: Agenda
Agenda 1 2Q2011 results 2 RoE Capital & Funding RoE, 3 CIB St Strategy t 4 PBC St Strategy t 5 S Summary and dOOutlook tl k Deutsche Bank Roadshow Paris / Zurich / London – 09/2011 financial transparency. 14 Investor Relations Dr. Josef Ackermann
Slide 15: Recalibration: Strong results with significantly reduced resource consumption
Recalibration: Strong results with significantly reduced resource consumption ti Strong performance … ... using significantly fewer resources S&T revenues(5) in i EUR bn b Markets resources, vs peak levels(1) resources current vs. 9.4 7.5 7.5 (36)% Balance sheet (2) (1)% (30)% RWA ((20)% ) (53)% Val
Slide 16: Outstanding market positioning across all products
Outstanding market positioning across all products Fixed Income Equities / Advisory Top 3 Top 3 Top 3 Top 3 Top 5 Top 5 Top 3 Top 5 Top 5 Target Top 3 Top 5 Top 5 Top 3 Top 5 Top 3 Top 5 Top 5 #1 #1 #2 #1 #2 #1 #2 #4 5 #4-5 #3 C Current t #1 #7 #3 #1 #5 #1 #5 #6 #2 #3 #1 #1 #6 #
Slide 17: Regulatory change will be partially offset by management action
Regulatory change will be partially offset by management action; i earnings i quality li will ill b be hi higher h CIB pre-tax RoE Illustrative 28% (13-14)% 5 6% 5-6% 20-25% 20 25% 5-7% (3 4)% (3-4)% 10-12% 2010 actual RoE Basel 2 2.5 5/3 Other regulatory Pre-management Pre management Business growt
Slide 18: Mitigating the impact of upcoming regulation
Mitigating the impact of upcoming regulation CB&S Total Capital Demand development(1), in EUR bn Group Core Tier 1 Net impact: 118 ratio on 1 Jan 2013: >8% — Stressed VaR — Incremental Risk 115 90 Charge — Correlation 93 — Sales — Unwind / roll-off — Credit Valuation — Hedging 346 Adjustments to — O
Slide 19: CIB: An attractive value proposition
CIB: An attractive value proposition Pre- Post- CIB crisis crisis Change Illustrative Revenues((1)) (in EUR bn) 18-19 18 19 >21 +15% IBIT(2) (in EUR bn) 5-6 7.4 +35% Balance sheet(3) (in EUR bn) >1,200 ~800-900 -30% V l att Ri Value Risk k (i (in EUR mn)) >140 140 ~80 80 -40% 40% Stress loss(4) (in
Slide 20: Agenda
Agenda 1 2Q2011 results 2 RoE Capital & Funding RoE, 3 CIB Strategy St t 4 PBC St Strategy t 5 S Summary and dOOutlook tl k Deutsche Bank Roadshow Paris / Zurich / London – 09/2011 financial transparency. 20 Investor Relations Dr. Josef Ackermann
Slide 21: The starting point: PBC – a sizeable retail bank
The starting point: PBC – a sizeable retail bank t l(1) PBC ttotal — ~ 29 million clients — > EUR 530 bn CBV, CBV thereof: — EUR 186 bn credit products — EUR 205 bn deposits and payments — EUR 142 bn investment and insurance products — ~ 2,900 branches at attractive locations — ~ 43,800 FTE — Comple
Slide 22: The German retail market offers room for profit growth
The German retail market offers room for profit growth Clients Income before income taxes German retail segment, 31 Dec 2010, in m German retail segment, FY2010, in EUR bn Savings ~50 Savings banks banks 5.6 Mutual Mutual banks ~30 banks 4.5 PBC+ 10 14 24 PBC+ 1.7 11 0.5 7 0.4 6 0.3 4 0 05 0.05 Tota
Slide 23: PBC: CtA to be recovered by synergies at an early stage
PBC: CtA to be recovered by synergies at an early stage I EUR m In Run rate synergies of EUR ~1 bn p.a. Cumulative cost-to-achieve of EUR ~1.4 bn Revenue / cross-divisional synergies CtA distribution illustrative Sales Optimization Premium Processes ~1 bn S Sourcing i / costt managementt Operations
Slide 24: Strong momentum across all retail franchises in 1H2011
Strong momentum across all retail franchises in 1H2011 … I Income b f before income i ttaxes, iin EUR m 1,600 Therein ~EUR 236 m net Huaxia 532 Bank one-off 1,245 (after hedging costs and performance related compensation) p ) (118) 403 428 Advisory Advisory Consumer Cost-to- IBIT FY 2011 Banking g B
Slide 25: ... supports the roadmap to PBC's ambition level
... supports the roadmap to PBC’s ambition level I Income before b f income i ttaxes, in i EUR b bn >3.0 ~0.9 ~1.3 Advisory Banking Postbank(2) Synergies(3) Combined Ambition Germany & growth level International 2011(1) (1) Excluding HuaXia one-off impact , cost-to-achieve and Complexity Reduction P
Slide 26: Agenda
Agenda 1 2Q2011 results 2 RoE Capital & Funding RoE, 3 CIB Strategy St t 4 PBC St Strategy t 5 S Summary and d Outlook O tl k Deutsche Bank Roadshow Paris / Zurich / London – 09/2011 financial transparency. 26 Investor Relations Dr. Josef Ackermann
Slide 27: The new Deutsche Bank
The new Deutsche Bank Well capitalised More balanced Core tier 1 ratio Income before income taxes 10.2% (1) Classic banking (PCAM / GTB) Investment bank (CB&S) > 8% Basel 2.5 B Basel l3 29% >40% De-risking <60% Retained 71% ABN AMRO Netherlands earnings June 2011 Jan 2013 2009 2010 2013 More efficie
Slide 28: Outlook into 2H2011
Outlook into 2H2011 — Considerable near term uncertainties in the Eurozone, in the world economy, in financial markets, and in the new regulatory environment — EUR 10 bn earnings target is still achievable but predicated on a recovery in European g capital markets and progress with regards g to a so
Slide 29: Cautionary statements
Cautionary statements This presentation contains forward forward-looking looking statements. Forward Forward-looking 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 b