Deutsche Bank Ag · XETR:DBK
Deutsche Bank — FY2007 Earnings Presentation
18 slides from Deutsche Bank's earnings presentation, Feb 7, 2008
Slide 1: 2007 Full Year Review
2007 Full Year Review Dr. Josef Ackermann Chairman of the Management Board Frankfurt, 7 February 2008
Slide 2: A year of solid performance in challenging times
A year of solid performance in challenging times In EUR bn Revenues Profit 8% 5% 30.7 8.3 8.7 28.5 6.1 6.5 7% 2006 2007 2006 2007 Income before income taxes Net income Investor Relations 02/08 · 2
Slide 3: Solid profit growth in our core businesses
Solid profit growth in our core businesses Income before income taxes, in EUR bn CIB PCAM 10% p.a. 15% p.a. 6.1 2.1 1.9 5.1 4.3 1.5 1.4 3.5 1.2 2.8 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Note: 2003-2005 based on U.S. GAAP, 2003 based on structure as of 2005, 2004-2005 based on structure o
Slide 4: Continued leadership in investment banking in difficult conditions
Continued leadership in investment banking in difficult conditions CB&S revenues FY2007, in EUR bn 25.7 Loan 16.5 16.3 products 11.9 Investment 10.4 banking Sales & Trading 2.9 (1.1) Goldman DB JPMorgan Lehman Morgan Citi Merrill Sachs* Chase Brothers* Stanley* Lynch * Diverging fiscal year Note: GS
Slide 5: Delivery on targets
Delivery on targets Reported Target definition Pre-tax RoE Diluted EPS In % In EUR 33 29 54% p.a. 13.05 26 11.48 24 10.79 25% 16 6.95 10 4.53 2.31 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Note: 2003-2005 based on U.S. GAAP, 2006 onwards based on IFRS Investor Relations 02/08 · 5
Slide 6: We maintain an attractive dividend policy
We maintain an attractive dividend policy Dividend per share, in EUR 3x 4.50 4.00 2.50 1.70 1.50 2003 2004 2005 2006 2007 Recommended Investor Relations 02/08 · 6
Slide 7: Strategy: We stay the course
Strategy: We stay the course Management Agenda Phase 3 2006 – 2008: Leveraging our global platform for accelerated growth Maintain our cost, risk, capital and Continue to invest in organic growth and regulatory discipline ‘bolt-on’ acquisitions Further grow our ‘stable’ businesses in Build on our co
Slide 8: We maintained cost, risk, capital and regulatory discipline
We maintained cost, risk, capital and regulatory discipline Cost Risk Capital Cost / income ratio, in % Problem loan ratio(1), in % Tier 1 ratio(2), in % Unrealised gains(3), in EUR bn 10.0 4.5 82 8.6 8.7 8.5 8.6 3.5 80 75 2.5 3.0 2.6 70 70 1.8 1.6 1.8 2.0 1.4 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07
Slide 9: Investing the positive impact of Basel II
Investing the positive impact of Basel II Tier I ratio, 31 Dec 2007 Basel II Organic growth Basel I pro-forma Financing RWA increase ~9.4% Growth External growth 8.6% Covering Goodwill and Basel II Intangibles Tier I target ratio unchanged at 8-9% Dividends Rewarding of shareholders Share buybacks I
Slide 10: A funding cost advantage for Deutsche Bank
A funding cost advantage for Deutsche Bank 5-year senior CDS, in bps 1 Jul 2007 31 Jan 2008 151 139 121 86 81 67 68 68 69 35 35 35 37 14 18 19 10 12 UBS Credit JPMorgan Citi Goldman Morgan Merrill Lehman Suisse Chase Sachs Stanley Lynch Brothers Source: Bloomberg Investor Relations 02/08 · 10
Slide 11: Investing in growth by financing RWA increase
Investing in growth by financing RWA increase … Risk-weighted assets under Basel I, at year end, in EUR bn 1.6 1.8 2.5 3.2 2.9 328 275 251 216 217 2003 2004 2005 2006 2007 x.x Return on RWA* (in %) * 2003-2005: Underlying pre-tax profit in % of average RWAs; 2003-2005 RWA based on U.S. GAAP; 2006-20
Slide 12: … and expanding our global platform
… and expanding our global platform Acquisitions, partnerships and organic investments 2007 / 08 UK Abbey Life portfolio China Tilney integration Partnership with Hua Xia and ETF roll-out* Harvest Fund Management USA Local incorporation of Germany Stake in Aldus Equity Deutsche Bank (Chi
Slide 13: Further growing our 'stable' businesses: sustained momentum
Further growing our ‘stable’ businesses: sustained momentum … Income before income taxes, in EUR bn GTB AWM >2x 14% PBC 3.0 2.6 1.9 1.6 1.4 2003* 2004 2005 2006 2007 * GTB adjusted for gain on sale of GSS Note: 2003-2005 based on U.S. GAAP, 2003 based on structure as of 2005, 2004-2005 based on stru
Slide 14: … with strong net new money inflows
… with strong net new money inflows PCAM, in EUR bn 59 28 7 (43) (41) 2003* 2004 2005 2006 2007 * PWM not restated for Rüd Blass Investor Relations 02/08 · 14
Slide 15: Building on competitive edge in investment banking
Building on competitive edge in investment banking Sustained momentum in CB&S Robust business model 9 Net revenues, in EUR bn 9% p.a. Management stability 9 16.6 16.5 Tight risk and capital 13.9 management 11.8 11.5 9 9 Diversification by product, region and client type Strong global network
Slide 16: Despite market turbulence, megatrends continue to favour Deutsche Bank
Despite market turbulence, megatrends continue to favour Deutsche Bank Trend Features Deutsche Bank strengths Regional business diversification Growth of emerging markets Global network Globalisation Geographical boundaries disappear Global capital market access Global players act locall
Slide 17: Outlook
Outlook Vision Phase 3: EUR 8.4 bn Income before income taxes in 2008 Current environment Material change in environment since July 2007 Corporate Banking & Conditions likely to remain uncertain in 2008 Securities Focus: Gain market share Well-positioned in growth regions Global Transaction
Slide 18: Cautionary statements
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 2007. This presentation al