Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Bank of America Merrill Lynch Banking & Insurance CEO Conference 2009
28 slides from Deutsche Bank's conference presentation, Oct 1, 2009
Slide 1: Deutsche Bank - Stefan Krause, Chief Financial Officer
Deutsche Bank Stefan Krause Chief Financial Officer Bank of America Merrill Lynch Banking & Insurance CEO Conference London, 1 October 2009
Slide 2: Agenda
Agenda 1 Well p prepared p for a changing g g landscape p 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside Investor Relations 10/09 · 2
Slide 3: Strong capital ratio, relative to peers
Strong capital ratio ratio, relative to peers Impact of state capital As of 30 June 2009, in % Tier 1 ratio excluding state capital 85 8.5 16.1 15.8 15.5 13.2 12.7 11.9 11.0 10.5 10.1 9.7 9.4 9.5 93 9.3 92 9.2 90 9.0 8.2 8.6 7.7 7.7 10 7 10.7 9.1 8.5 8.5 8.3 7.5 5.9 5.4 (1) (2) (3) (4) (5) GS MS CS
Slide 4: Capital ratios have been strengthened
Capital ratios have been strengthened 11.0 10.3 10.1 10.2 Target: 9.2 9.3 ~10% 78 7.8 7.5 6.9 7.0 7.1 6.8 319 308 316 303 305 295 1Q 2Q 3Q 4Q 1Q 2Q 2008 2009 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Core Tier 1 ratio = Tier 1 capital less Hybrid Tier 1 Capital divided by RWAs
Slide 5: Significant de-leveraging
Significant de-leveraging Balance sheet, in EUR bn 30 June 2008 30 June 2009 g ratio(2) Leverage 3838 1,991 (31%) 1,733 32 1,338 Target: 28 25x (653) 928 25 24 (805) IFRS Netting(1) U.S. U S GAAP IFRS Netting N tti (1) U.S. U S GAAP J Jun S Sep D Dec M Mar J Jun ‘pro-forma’ ‘pro-forma’ 2008 2009 (1)
Slide 6: Loan book is performing relatively well
Loan book is performing relatively well Loan loss ratio*, 1H2009 annualised, in bps 828 PCAM 734 CIB / Other 612 520 232 227 245 218 198 168 157 138 131 139 72 57 12 22 Citi BoA JPM BAR BNP SOC DB UBS CS Group 679 608 473 215 164 136 113 88 41 * Provision for credit losses divided by loan book as of
Slide 7: IAS 39 reclassified assets in context
IAS 39 reclassified assets in context As of 1H2009 / 30 June 2009 Loan loss ratios* Breakdown of reclassification assets 1H2009 annualised, in bps In EUR bn Thereof investment grade: PCAM CIB / Other 7 Leveraged Finance - IAS 39 139 9 Commercial Real 70% Estate 75 72 10 DB sponsored conduits 98% 64
Slide 8: Liquidity and Funding: Quantity, quality and consistency
Liquidity and Funding: Quantity, Quantity quality and consistency In EUR bn Unsecured U secu ed funding u d g Capital market funding progress New issuance 511 54 479 30% 14% 68 45 153 FY2009 plan completed + 53 21 411 358 15 16 30 Jun 2007 30 Jun 2009 2005 2006 2007 2008 YTD 2009 Short-term wholesal
Slide 9: Well prepared for a changing landscape
Well prepared for a changing landscape 30 June 30 June 2008 2009 Income before income taxes (1H2009, in EUR bn) 0.4 3.1 Profitability N t income Net i (1H2009 iin EUR b (1H2009, bn)) 05 0.5 23 2.3 Pre-tax RoE (target definition)(1) (4)% 20% Tier 1 capital ratio 9.3% 11.0% Capital strength Core Tier
Slide 10: Agenda
Agenda 1 Well p prepared p for a changing g g landscape p 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside Investor Relations 10/09 · 10
Slide 11: Strong underlying revenues in Sales & Trading
Strong underlying revenues in Sales & Trading Sales & Trading revenues, in EUR bn Additional de- de Debt and equity revenues M kd Mark-downs risking 1.1 1.0 0.1 1.4 5.1 2.1 44 4.4 43 4.3 40 4.0 3.2 3.2 3.5 2.7 2.2 2.2 2.1 1.4 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q 2004 2005 2006 2007 2008 2009 Note: Fi
Slide 12: Successful recalibration of a diversified platform
Successful recalibration of a diversified platform Revenues by business area Indicative Debt and other p products Equity q y Pre-crisis Current* Pre-crisis Current* Com- EM Com- EM MM & FX Prop Prop modities modities MM & FX Cash Cash Prime P i Prime Broke Broke- rage rage Credit Rates Credit Rates
Slide 13: Simultaneously we aggressively de-leveraged
Simultaneously we aggressively de-leveraged Simultaneously, Global Markets balance sheet (U.S. GAAP ‘pro-forma’) ( ) (47)% 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 Investor Relations 10/09 · 13
Slide 14: Considerable improvement in asset efficiency
Considerable improvement in asset efficiency Return on assets* Return on risk-weighted g assets* 1.4x 2.5x 2005 2006 2007 2008 1H 2009 2005 2006 2007 2008 1H 2009 * Based on underlying revenues before writedowns in relation to Global Markets U.S.GAAP pro-forma assets / Risk-weighted assets Investor
Slide 15: The revenue outlook remains favourable
The revenue outlook remains favourable Margins Volumes Average bid ask spreads in CDX index Average daily volume on Global Markets platform FX Money Markets 20 18 16 14 12 Pre- Peak Current Pre- Peak Current 10 crisis crisis 8 >2x 2 Interest rate derivatives Equities 6 4 Pre crisis level 2 0 Jan- Oc
Slide 16: We have consolidated or extended our global market share
We have consolidated or extended our global market share ... Before crisis Current Rank Rank FX 22% 1 FX 21% 1 Interest Rate Interest Rate 12% 1 12% 1 Derivatives Derivatives Emerging g g Emerging 12% 2 11% 1 Markets Debt Markets Debt HY Credit 11% 3 HY Credit 14% 1 IG Credit 7% 6 IG Credit 8% 2 EU
Slide 17: ... with significant gains in the critical U.S. market
… with significant gains in the critical U.S. U S market U.S. clients’ expected increase/decrease in business with leading investment banks Change in U.S. market share Expected change in business due to the crisis 28% 3.0% Equities Pre-crisis 18% 6.0% After crisis 7% 6.4% Investment Grade 8.9% (6)%
Slide 18: DB's presence across emerging markets: A key differentiator
DB’s DB s presence across emerging markets: A key differentiator As of 30 June 2009 Moscow Warsaw Shanghai Saigon Mexico City Bangkok Dubai Taipei Mumbai Kuala Lumpur Jakarta São Paulo Johannesburg g S ti Santiago Buenos Aires Investor Relations 10/09 · 18
Slide 19: Agenda
Agenda 1 Well p prepared p in a changing g g landscape p 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside Investor Relations 10/09 · 19
Slide 20: Upside potential exists
Upside potential exists Interest rates Equity markets Key interest rates* rates , in % Indexed 1 Jan 2008 Indexed, 5 4 100 S&P 500 Europe 3 80 2 DAX 30 U.S. 60 1 0 40 1 JJan 2008 31 A Aug 2009 1 JJan 2008 31 A Aug 2009 German exports U.S. REITs Foreign orders vs. prior year (left-hand axis) Indexed,
Slide 21: GTB: Significant additional revenue potential ...
GTB: Significant additional revenue potential ... 2004 – 1H2009 IBIT Upside potential I EUR m In 1H Business External drivers 1,106 Cash Normalisation of interest rates 945 Management Rising cross border payments 705 Trade Recovery in global trade volumes Fi Finance Stabilisation St bili ti
Slide 22: ... with benefits from flight to quality
... with benefits from flight to quality Pipeline volume* Cash Management Corporates Trade Finance Won Pending +36% Lost +34 % 1H2008 1H2009 1H2008 1H2009 * Pipeline volume: Prospective revenues from deals acquired in the period with win probability > 25% Investor Relations 10/09 · 22
Slide 23: AWM: Operating leverage, due to efficiency measures
AWM: Operating leverage leverage, due to efficiency measures Income before income taxes Efficiency measures largely complete In EUR m 242 Asset Management 188 FTE reduction to-date to date of ~ 600 Direct cost reduction (2009 run rate)(2): (850) ─ EUR 130 m / 5% vs. 2008 ─ EUR 320 m / 22% vs vs.
Slide 24: PBC: Implementation of efficiency measures ...
PBC: Implementation of efficiency measures … Income before income taxes Results of efficiency program In EUR m Severance(1) Key measures Middle-office consolidation 4 5 Integration of credit operations 6 Back-office efficiency 15 Central overhead reduction 304 328 262 150 Results 106 206 F
Slide 25: ... leads to substantial upside potential
… leads to substantial upside potential Revenues in key product areas Drivers of upside EUR m Investment products Sustained recovery in equity markets Retail R t il iinvestors t returning t i tto equities iti 403 400 366 281 253 275 415 Deposits p 424 427 438 377 373 Deposit capture of EUR 15
Slide 26: Strategic optionality in Germany
Strategic optionality in Germany [ ]% = Market share Customers / AuM in German market Retail asset management Private wealth management Retail banking AuM, March 2009 AuM, December 2008 Number of customers, million in EUR bn in EUR bn December 2008 117 ~25% Sal. Opp. 51 Sparkassen 50 Deka 98 47 ~20%
Slide 27: Summary: Well prepared for a changing landscape
Summary: Well prepared for a changing landscape 30 June 30 June 2008 2009 Income before income taxes (1H2009, in EUR bn) 0.4 3.1 Profitability N t income Net i (1H2009 iin EUR b (1H2009, bn)) 05 0.5 23 2.3 Pre-tax RoE (target definition)(1) (4)% 20% Tier 1 capital ratio 9.3% 11.0% Capital strength C
Slide 28: Cautionary statements
Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). (IFRS) This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact
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