Slide 1: 1Q2012 Results
Deutsche Bank 1Q2012 Results Stefan Krause Chief Financial Officer Analyst Call, 26 April 2012 Deutsche Bank Stefan Krause financial transparency. Investor Relations 26 April 2012
Slide 2: Agenda
Agenda 1 Group results 2 Segment results 3 Key current issues Deutsche Bank Stefan Krause financial transparency. 2 Investor Relations 26 April 2012
Slide 3: Key take-aways
Key take-aways — Solid Group profitability driven by market stabilization as macro challenges remained — CB&S showed strong rebound in profitability versus 2H2011 despite utilizing risk levels well below limits — GTB delivered best ever first quarter result driven by strong performance across produc
Slide 4: Overview
Overview 1Q2012 1Q2011 Income before income taxes (in EUR bn) 1.9 3.0 Net income (in EUR bn) 1.4 2.1 Profitability Pre-tax RoE (target definition)(1) 14% 22% Diluted EPS (in EUR) 1.44 2.13 31 Mar 2012 31 Dec 2011 Core Tier 1 capital ratio 10.0% 9.5% Capital Tier 1 capital ratio 13.4% 12.9% Core Tier
Slide 5: Net revenues
Net revenues In EUR bn 10.5 9.2 8.5 7.3 6.9 1Q 2Q 3Q 4Q 1Q 2011 2012 Deutsche Bank Stefan Krause financial transparency. 5 Investor Relations 26 April 2012
Slide 6: Noninterest expenses
Noninterest expenses In EUR bn Other noninterest expenses⁽¹⁾ (1) General and administrative expenses Compensation & benefits 7.1 6.7 7.0 6.3 5.9 4.3 2.8 3.7 3.4 2.7 3.3 3.7 3.2 2.7 2.9 0.1 0.1 (0.1) 0.2 0.2 1Q 2Q 3Q 4Q 1Q 2011 2012 (2) Compensation ratio , in % 41 39 37 41 40 Note: Figures may not a
Slide 7: Provision for credit losses
Provision for credit losses In EUR m Effect from Postbank releases shown as net interest income at DB Group / PBC level Related to IAS 39 reclassified assets 540 464 463 91 373 82 111 64 79 23 314 117 36 22 (1) 54 (1) 449 382 352 (1) 385 303 329 (1) 256 (1) 278 234 224 1Q 2Q 3Q 4Q 1Q 2011 2012 CIB 3
Slide 8: Profitability
Profitability Income before income taxes Net income In EUR bn In EUR bn 3.0 2.1 1.8 1.9 1.2 1.4 0.9 0.8 0.2 (0.4) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2011 2012 2011 2012 Pre-tax return on equity (1), in % Effective tax rate, in % 24 14 7 (3) 14 29 31 18 153 25 FY2011: 10 FY2011: 20 (1) Annualized, based o
Slide 9: Earnings mix
Earnings mix Share of income before income taxes Investment banking (CB&S) Classic banking (PCAM / GTB) 44% 68% 71% 66% 56% 32% 29% 34% 2009 2010 2011 1Q2012 Diversified business leads to balanced earnings mix through the cycle Note: Split excludes IBIT from Corporate Investments and Consolidation &
Slide 10: Agenda
Agenda 1 Group results 2 Segment results 3 Key current issues Deutsche Bank Stefan Krause financial transparency. 10 Investor Relations 26 April 2012
Slide 11: Segment overview
Segment overview Income before income taxes, in EUR m 1Q2012 1Q2011 1Q2012 significant items CB&S 1,717 EUR 213 m litigation charges 2,287 GTB 340 274 AWM 142 190 PBC 413 788 EUR 257 m impairment charge CI (303) related to our exposure in (165) Actavis C&A (431) (353) Deutsche Bank Stefan Krause fin
Slide 12: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m In EUR m 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. 1Q11 4Q11 2,287 Revenues 5,220 5,843 2,463 (11)% 112 % Prov. for credit (85) (12) (145) n.m. (42)% losses 1,717 Noninterest exp. (3,412) (3,533) (2,736) (3)% 25 % IBIT 1,717 2,28
Slide 13: Sales & Trading debt and other products
Sales & Trading debt and other products Revenues Key features In EUR m Overall 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. 1Q11 4Q11 ― Strong performance in continued uncertain macro and 3,691 Revenues market environment 3,390 Prov. FX for credit / Money Markets / Rates / RMBS losses ― Record quarterly volumes
Slide 14: Sales & Trading equity
Sales & Trading equity Revenues Key features In EUR m Overall 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. ― Solid performance reflecting improved market 1Q11 4Q11 943 Revenues environment compared to the second half of 2011 ― Lower Prov. yoy revenues reflecting decline in industry-wide for credit client activi
Slide 15: Origination & Advisory
Origination & Advisory Revenues Key features In EUR m Overall 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. ― Ranked No. 3 globally – best ever ranking 1Q11 4Q11 Origination Advisory ― Top five rankings across all products Revenues ― Best Prov. forever market share in EMEA credit 717 714 Advisory losses 638 ― Lo
Slide 16: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m In EUR m 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. 1Q11 4Q11 Revenues 967 853 929 13 % 4% 340 Prov. for credit (33) (21) (64) 55 % (48)% 306 losses 274 283 Noninterest exp. (593) (558) (581) 6% 2% 259 IBIT 340 274 283 24 % 20 % CIR (
Slide 17: Asset and Wealth Management
Asset and Wealth Management Income before income taxes Key features In EUR m In EUR m 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. 1Q11 4Q11 227 Revenues 883 1,002 909 (12)% (3)% Prov. for credit 190 186 losses (0) (19) (11) (98)% (97)% 165 Noninterest exp. (739) (792) (733) (7)% 1% 142 IBIT 142 190 165 (25)% (
Slide 18: Asset Management
Asset Management Income before income taxes Key features In EUR m In EUR m 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. 131 1Q11 4Q11 124 Revenues 380 441 453 (14)% (16)% 117 Prov. for credit 0 (0) (0) n.m. n.m. losses Noninterest exp. (325) (366) (322) (11)% 1% IBIT 54 75 131 (27)% (58)% 75 Invested assets (1)
Slide 19: Private Wealth Management
Private Wealth Management Income before income taxes Key features In EUR m In EUR m 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. 1Q11 4Q11 Revenues 503 561 456 (10)% 10 % 116 Prov. for credit (0) (19) (11) (98)% (97)% 102 losses Noninterest exp. (414) (426) (411) (3)% 1% 88 IBIT 88 116 34 (24)% 157 % (1) 69 Inv
Slide 20: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m In EUR m 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. 1Q11 4Q11 Cost-to-achieve related Negative impact from Greek Revenues 2,501 3,072 2,556 (19)% (2)% to Postbank acquisition(1) government bonds(1) Net Hua Xia one-off gain Prov. for c
Slide 21: PBC – business division performance
PBC – business division performance Income before income taxes, post-minorities, in EUR m 1Q2012 – Reported results 1Q2011 – Reported results Net HuaXia one-off gain 191 Advisory Banking Germany 231 127 Advisory Banking International 263 298 95 Consumer Banking Germany 258 413 PBC Total 263 788 Note
Slide 22: Corporate Investments
Corporate Investments Income before income taxes Key features In EUR m In EUR m 1Q12 1Q11 4Q11 1Q12 vs. 1Q12 vs. EUR 257 m further Actavis 1Q11 4Q11 impairment charge Revenues 4 180 (193) (98)% n.m. Prov. for credit (2) (1) (8) 22 % (78)% losses Noninterest exp. (312) (344) (520) (9)% (40)% IBIT (30
Slide 23: Agenda
Agenda 1 Group results 2 Segment results 3 Key current issues Deutsche Bank Stefan Krause financial transparency. 23 Investor Relations 26 April 2012
Slide 24: Capital ratios and risk-weighted assets
Capital ratios and risk-weighted assets Basel 2 Basel 2.5 14.0 13.8 13.4 13.4 12.9 12.3 Tier 1 ratio, in % 9.6 10.2 10.1 10.0 9.5 Core Tier 1 ratio, 8.7 in % 381 368 346 338 328 320 RWA, in EUR bn 4Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2012 Note: Tier 1 ratio = Tier 1 capital / RWA; Core Tier 1 ratio = (Tier 1
Slide 25: Core Tier 1 capital and RWA development
Core Tier 1 capital and RWA development Core Tier 1 capital RWA In EUR bn In EUR bn 1.4 0.2 37.0 381.2 (0.2) (0.2) (0.2) 36.3 (0.3) (2.4) 1.0 368.4 (8.3) (3.2) (2) 31 Dec Net (1) Dividend CDI Equity Other FX Effect 31 Mar 31 Dec 2011 FX effect Credit Market Operational 31 Mar 2012 2011 income accrua
Slide 26: Basel 3 simulation
Basel 3 simulation(1) In EUR bn xx Core Tier 1 ratio (%) Pro forma RWA Pro forma Core Tier 1 capital and ratios 10.0% 10.5% 8.8% 7.2% 105 485 3 488 3 43 3 40 37 35 368 12 380 (8) Mar 12 Normali- Dec 12 Basel 3 1 Jan Application 1 Jan Mar 12 Net Dec 12 Add-back 1 Jan Application 1 Jan zation of after
Slide 27: Simplified US entity structure
Simplified US entity structure Illustrative Former structure New structure DB AG DB AG Taunus DBTC Taunus DBSI DBTCA and DBTC other subs DBSI and other subs subject to bank and other subs regulation DBTCA and other subs subject to bank regulation US Operating entities US Banking Group ― DBTCA is wel
Slide 28: Impact of new capital allocation approach
Impact of new capital allocation approach Average active equity FY2011, in EUR bn ― Starting 2012, the book equity allocation is based on 9% Based on 10% Based on 9% Core Tier 1 ratio Core Tier 1 ratio (instead of Tier 1 ratio 10% Tier 1 ratio previously) EUR 8.3 bn of additional equity reflecting i
Slide 29: Losses reverse over time
Consolidation & Adjustments In EUR m, 1Q2012 Accounting asymmetry effect: ― Some EUR funding (held at cost) swapped into USD Losses reverse over time (swaps are m-t-m) (431) ― Swaps are sensitive to changes in USD/EUR mid to 29 (319) long-term spread differences (basis swap spreads) ― Basis spreads
Slide 30: Summary
Summary Delivered rebound in profitability versus 2H2011 as markets stabilized but macro challenges remained Maintained excellent client franchise while preserving prudent approach to risk- taking Core Tier 1 ratio further improved, well on track to meet regulatory requirements ahead of time and con
Slide 31: Additional information
Deutsche Bank Additional information
Slide 32: Specific items
Specific items In EUR m 1Q2012 Business P&L line Amount Actavis impairment charge CI Revenues (257) CB&S litigation related expenses CB&S Gen. & Admin. Exp. (213) Memo: FV gains / (losses) on own debt CB&S / C&A Revenues (110) Deutsche Bank Stefan Krause financial transparency. 32 Investor Relations
Slide 33: Exposure on selected countries
Exposure on selected countries Net sovereign exposure(1) In EUR m 31 Dec 2011 31 Mar 2012 7% 181 350 Ireland 3,944 3,669 189 1,953 1,767 (45) Portugal 1,318 1,358 Italy 448 94 Greece Spain Total Note: Numbers may not add up due to rounding differences (1) Exposures are presented after effects of col
Slide 34: Impaired loans
Impaired loans In EUR bn IFRS impaired loans(1) Relating to IAS 39 loans Effect from Postbank(2) 9.4 9.2 8.5 7.6 2.0 2.0 6.3 6.7 1.8 1.3 1.5 1.4 0.2 0.8 0.8 1.1 1.2 1.1 4.8 4.9 5.5 5.6 5.9 5.8 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2010 2011 2012 53% 50% 46% 45% 44% 44% Cov. ratio DB(3) Cov. rati
Slide 35: Loan book
Loan book In EUR bn IAS 39 impact on CIB loan book 27 25 23 23 23 23 411 398 398 416 417 412 10 CI 8 11 11 7 7 147 150 151 146 135 135 CIB 24 24 25 27 29 28 AWM 231 228 227 229 230 230 PBC 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2010 2011 2012 Germany excl. Financial Institutions and Public Sector
Slide 36: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR bn, as of 31 Mar 2012 ... DB 1Q2012 provision for credit losses(1) ex. PB, in EUR m ... Postbank (PB) 1Q2012 provision for credit losses(1)(2), in EUR m 189 IAS 39 reclassified assets Postbank 314 125 127 26 35 412 Low loan to value 23 P
Slide 37: Total assets (adjusted)
Total assets (adjusted) In EUR bn 1,267 1,256 Positive market values Derivatives post- from derivatives 84 netting 78 Derivatives post- netting Trading securities 214 234 Financial assets 241 Trading assets 259 Trading assets at FV through P&L Other trading assets 27 25 Reverse repos / securities bo
Slide 38: Funding activities update
Funding activities update Funding cost development Observations In bps 360 — 2011 recap European Peer CDS(1) 320 US Peer CDS(2) — EUR 22.5 bn raised in capital DB 5yr Senior CDS markets at an average spread of 280 DB issuance spread (4wk mov avg.) L+65 bps, ca. 75% raised outside 240 DB issuance act
Slide 39: Funding profile
Funding profile As at 31 Dec 2007 As at 31 Mar 2012 Total: EUR 1,206 bn 30% (EUR 361 bn) of Total: EUR 1,139 bn(2) 58% (EUR 655 bn) of Financing overall funding from Financing overall funding from Vehicles Vehicles 5% most stable funding most stable funding 2% sources(1) sources Capital Markets and
Slide 40: PBC – business division performance
PBC – business division performance In EUR m, post-minorities Impact from Cost-to- Reported Greek achieve PPA(1) Hua Xia Adjusted IBIT IBIT government related to bonds Postbank 1Q2011 231 (38) 269 2Q2011 124 (42) (35) 201 Advisory Banking 3Q2011 132 (11) (35) 178 Germany 4Q2011 85 (9) (73) 167 FY201
Slide 41: IAS 39 reclassification
IAS 39 reclassification Carrying Value vs. Fair Value 1Q2012 developments In EUR bn — The gap between carrying value and fair value has decreased by EUR 0.4 bn in 1Q2012 Sales & Trading - Debt Origination & Advisory — Decrease of fair value by EUR 0.5 bn largely driven by redemption / sale of assets
Slide 42: Balance sheet leverage ratio (target definition)
Balance sheet leverage ratio (target definition) In EUR bn 2010 2011 2012 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar Total assets (IFRS) 1,906 1,842 1,850 2,282 2,164 2,103 Adjustment for additional derivatives netting (601) (508) (503) (821) (782) (688) Adjustment for additional pending settlements
Slide 43: Group headcount
Group headcount Full-time equivalents, at period end 31 Mar 2012 vs. 31 Dec 2010 31 Dec 2011 31 Mar 2012 31 Dec 2011 CCIB 15,613 15,186 14,672 (514) PPCAM(1) 50,822 49,079 49,219 140 CCorporate Investments 1,553 1,389 1,237 (152) Infrastructure / I 34,074 35,342 35,554 212 Regional Management GTotal
Slide 44: Number of shares
Number of shares In million Average used for EPS calculation End of period numbers 31 Dec 31 Dec 31 Mar FY2010 FY2011 1Q2012 2010 2011 2012 Common shares issued(1) 741 929 929 929 929 929 Total shares in treasury (4) (17) (14) (10) (25) (7) Common shares outstanding 737 913 916 919 905 922 Vested sh
Slide 45: Invested assets report
Invested assets(1) report In EUR bn Net new money 31 Mar 2011 30 Jun 2011 30 Sep 2011 31 Dec 2011 31 Mar 2012 1Q11 1Q12 Asset and Wealth Management 799 797 780 813 820 (2) (8) Asset Management 529 523 516 544 542 (5) (10) Institutional 164 163 162 174 174 (4) 0 Retail 175 173 157 164 169 1 (2) Alter
Slide 46: Regional invested assets – AM and PWM
Regional invested assets(1) – AM and PWM In EUR bn 31 Mar 2011 30 Jun 2011 30 Sep 2011 31 Dec 2011 31 Mar 2012 Asset Management 529 523 516 544 542 (2) Germany 242 246 234 240 247 UK 23 22 22 26 25 Rest of Europe 30 30 29 30 31 Americas 209 202 208 226 217 Asia Pacific 25 23 22 23 21 Private Wealth
Slide 47: Regional net new money – AM and PWM
Regional net new money – AM and PWM In EUR bn 1Q2011 2Q2011 3Q2011 4Q2011 FY2011 1Q2012 Asset Management (5) (5) (11) 8 (13) (10) (1) Germany (1) 1 (3) 0 (3) (1) UK (1) (0) (2) 4 1 0 Rest of Europe (2) (1) 0 (0) (4) (0) Americas (2) (5) (6) 5 (8) (7) Asia Pacific 1 (0) (0) (1) 0 (2) Private Wealth M
Slide 48: 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 4.6 bn Sales & Trading revenues EUR 4.1 bn 120 100 80 60 40 20 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 80 75 76 56 55 46 44 43 29 29 (1) Constant VaR is an approximation of
Slide 49: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-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 based on plans, estimates and pro