Deutsche Bank Ag · XETR:DBK

Deutsche Bank — Citigroup German Banking Roundtable (September 2007)

27 slides from Deutsche Bank's conference presentation, Sep 19, 2007

  1. Slide 1: Private & Business Clients

    Private & Business Clients Dr. Christian Ricken CFO Private & Business Clients Citigroup German Banking Roundtable Frankfurt, 19 September 2007

  2. Slide 2: Agenda

    financial transparency. Agenda 1 A dynamic business 2 Update on growth initiatives 3 Managing the cost base 4 Growth and value creation Investor Relations 09/07 · 2

  3. Slide 3: A dynamic business …

    financial transparency. A dynamic business … Expansion of distribution network Initiatives & Acquisitions Acquisition Market Relaunch 2004 2005 2006 2007 Co-operations China CC Investor Relations 09/07 · 3

  4. Slide 4: … with growth across the board …

    financial transparency. … with growth across the board … In EUR bn Revenues Invested assets Loan book CAGR 8% 5.7 CAGR 10% 197 CAGR 10% 84 4.5 67 150 2004 1H 2007 31 Dec 2004 30 Jun 2007 31 Dec 2004 30 Jun 2007 annualized Note: 2004 based on U.S. GAAP; from 2006 onwards based on IFRS Investor Relati

  5. Slide 5: … and a track-record of delivery

    financial transparency. … and a track-record of delivery Income before income taxes, in EUR m Target: EUR >1.3 bn Target: EUR 1 bn 1.005 1.005 1.041 461 590 1H2007 2003 2004 2005 2006 2007 2008 Underlying U.S. GAAP Reported IFRS Note: 2003 – 2005 figures are underlying results based on U.S. GAAP; fr

  6. Slide 6: 2Q2007: Another strong quarter …

    financial transparency. 2Q2007: Another strong quarter … Results at a glance Condensed P&L Income before income taxes, in EUR m In EUR m Key ratios, in % 2Q Δ vs. 1H Δ vs. 18% 2007 2Q2006 2007 1H2006 Revenues 1,442 15% 2,867 12% 301 293 297 252 264 Provisions* (124) 32% (241) 34% 223 Noninterest exp

  7. Slide 7: … with client and volume gains especially in Germany and new markets …

    financial transparency. … with client and volume gains especially in Germany and new markets … Net new clients Net new client business volume In thousand In EUR bn 420 12.5 240* 7.3 180 5.2 Loans Germany Germany Germany Deposits Loans Germany Asia Deposits Asia Other Securities Other 35 Other 15 Oth

  8. Slide 8: … and highly competitive in our home market

    financial transparency. … and highly competitive in our home market PBC Germany and equivalents, 1H2007 vs. 1H2006, in % Revenues Total Revenues* Revenues* 14% 14% ∅ peers 2% 7% Net interest revenues 13% 1% ∅ peers 1% Non-interest revenues 0% 11% (1)% ∅ peers 0% PBC Germany * Includes other revenues

  9. Slide 9: Agenda

    financial transparency. Agenda 1 A dynamic business 2 Update on growth initiatives 3 Managing the cost base 4 Growth and value creation Investor Relations 09/07 · 9

  10. Slide 10: A stable business model based on two core competencies

    financial transparency. A stable business model based on two core competencies Private & Business Clients Advisory Banking Consumer Banking 1 Berliner Bank 2 Norisbank 3 Poland: Branch network 4 Poland: db kredyt 5 India: Branch business 5 India: Credit card business 6 China: Cooperation 6 China: La

  11. Slide 11: Berliner Bank: Smooth integration resulting in strong business results

    financial transparency. 1 Berliner Bank: Smooth integration resulting in strong business results Closing Today Post-Integration „ Ca. 320,000 clients „ Growing client base „ Growing client base Portfolio „ EUR 2.4 bn loan portfolio „ Stable loan portfolio and and EUR 4.8 bn deposits deposits „ 1,140

  12. Slide 12: norisbank: Successful integration shows first business results

    financial transparency. 2 norisbank: Successful integration shows first business results Closing Today Post-Integration „ Ca. 330,000 clients „ Stable client base „ Growing client base to Portfolio „ EUR 1.4 bn loan portfolio „ Stable client business 1 million in 2010 and EUR 1.4 bn deposits volume

  13. Slide 13: norisbank: Market Relaunch in September 2007

    financial transparency. 2 norisbank: Market Relaunch in September 2007 Market Relaunch design "Orange" „ Brand Relaunch and new value proposition introduced by marketing campaign „ Focused portfolio of attractive basic banking products. Launch of new products (e.g. Top- Girokonto, Top3-Zinskonto, To

  14. Slide 14: Poland: Investments in advisory banking pay off

    financial transparency. 3 Poland: Investments in advisory banking pay off Number of branches Revenues In EUR m 2x 3x 62 62 73 52 52 32 30 23 31 Dec 31 Dec 31 Dec 30 Jun 2004 2005 2006 1H2007 2004 2005 2006 2007 annualised Number of employees Client Business Volume* In EUR m 2x 800 4x 3,024 700 600 2

  15. Slide 15: Poland: Successful entry in consumer finance market

    financial transparency. 4 Poland: Successful entry in consumer finance market Number of db kredyt-shops Revenues 2x 57 42 29 31 Mar 30 Jun 31 Aug 1Q2007 2Q2007 3Q2007 2007 2007 2007 (Forecast) Number of employees Client Business Volume* In EUR m 2x 6x 297 27 220 8 1Q2007 2Q2007 3Q2007 1Q2007 2Q2007

  16. Slide 16: India: Successful start for branch business and credit card activities

    financial transparency. 5 India: Successful start for branch business and credit card activities In thds. Credit card business only 325 25x 247 Clients 167 Delhi 70 13 28 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun Kolkata 2006 2006 2006 2006 2007 2007 Mumbai In EUR m new branches 319 6x 251 opened in

  17. Slide 17: China: Market entry via own branches and cooperation

    financial transparency. 6 China: Market entry via own branches and cooperation HuaXia investment HuaXia cooperation & PBC business „ Cooperation with HuaXia Bank includes: – Exclusive credit card cooperation launched in 2Q2007 – Development of additional business cooperation (e.g. joint affluent pro

  18. Slide 18: China: Credit card joint venture

    financial transparency. 6 China: Credit card joint venture A significant milestone in China Successful start Two Phase Entry Strategy for China: „ Launched in 2Q2007 „ Standalone Business Unit (BU) within HuaXia Bank, set up to launch „ Ca. 20,000 credit cards sold in the Co-branded DB-HXB cards fir

  19. Slide 19: Investment in Emerging Markets will continue

    financial transparency. Investment in Emerging Markets will continue Poland „ Continue with branch network expansion „ Extend Consumer Finance activities India „ Continue with branch network expansion „ Further develop credit card business China „ Extend business cooperation with HuaXia Bank (mainly

  20. Slide 20: Agenda

    financial transparency. Agenda 1 A dynamic business 2 Update on growth initiatives 3 Managing the cost base 4 Growth and value creation Investor Relations 09/07 · 20

  21. Slide 21: Costs are managed in a systematic way

    financial transparency. Costs are managed in a systematic way Targets Cost/Income-Ratio Cost structure Operating model Cost optimization actions Governance „ Structural/strategic „ Accountability/Responsibility „ Operational/tactical „ KPIs „ Service relationships „ Cost committees „ Cost management

  22. Slide 22: After bold restructuring – rigid cost management and step by step optimization of cost base

    financial transparency. After bold restructuring – rigid cost management and step by step optimization of cost base Some cost optimization projects since 2004 Timing Results 30% reduction of Germany: Move on new branch IT 2004 – 2006 branch IT infrastructure Infrastructure infrastructure costs 25% r

  23. Slide 23: Results include massive investments in future growth

    financial transparency. Results include massive investments in future growth Noninterest expenses, in EUR m PBC total CIR PBC total PBC without initiatives* CIR PBC without initiatives* CAGR 8% CAGR 3% 4.1 3.7 3.6 3.5 3.6 3.4 73.9% 72.2% 73.3% 71.1% 71.0% 68.7% 2005 2006 1H2007 annualised * Norisban

  24. Slide 24: Agenda

    financial transparency. Agenda 1 A dynamic business 2 Update on growth initiatives 3 Managing the cost base 4 Growth and value creation Investor Relations 09/07 · 24

  25. Slide 25: Revenue growth outperforming GDP growth in all markets

    financial transparency. Revenue growth outperforming GDP growth in all markets PBC revenues, in EUR bn GDP Regional split growth(3) 3.4 3.8 CAGR > 8% Germany 1.4% CAGR 6% CAGR 9% CAGR 8% >6 5.7 4.5 1.1 1.2 Europe(1) 1.5% CAGR 8% CAGR 5% CAGR 79% CAGR 67% Emerging 0.0 0.1 8.0% Markets(2) 2004 2006 In

  26. Slide 26: PBC will deliver on clear targets

    financial transparency. PBC will deliver on clear targets Strategic focus Vision 2008 Advisory Consumer Banking Banking Keep revenue momentum > EUR 6 bn revenues Germany and capitalise on acquisitions Strengthen ‘visibility’ of our Europe > EUR 1.3 bn franchises pre-tax profit Emerging Get foothold

  27. Slide 27: Cautionary statements

    financial transparency. Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under the International Financial Reporting Standards (IFRS). It may be subject to adjustments based on the preparation of the full set of financial statements for 20

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