Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2007 Earnings Presentation
37 slides from Deutsche Bank's earnings presentation, May 8, 2007
Slide 1: 1Q2007 Results
1Q2007 financials, including reference to comparable 2006 data, have been prepared under IFRS 1Q2007 Results Anthony di Iorio Chief Financial Officer 8 May 2007
Slide 2: Agenda
financial transparency. Agenda 1 Summary 2 Group results 3 Segment results 4 Risk and capital management Investor Relations 05/07 · 2
Slide 3: Another outstanding first quarter
financial transparency. Another outstanding first quarter 1Q2007 financial highlights EUR Revenues Cost / income ratio 20% 9.6 bn (1)ppt 66% Income before EUR Return on Equity* income taxes 22% 3.2 bn 2ppt 45% EUR EUR Net income Diluted EPS 29% 2.1 bn 38% 4.28 Record first-quarter profits Progress
Slide 4: Agenda: Summary
financial transparency. Agenda 1 Summary 2 Group results 3 Segment results 4 Risk and capital management Investor Relations 05/07 · 4
Slide 5: Record first-quarter profit
financial transparency. Record first-quarter profit Income before income taxes, in EUR bn 22% 3.2 2.6 2.0 1.9 1.8 1Q 2Q 3Q 4Q 1Q 2006 2007 Investor Relations 05/07 · 5
Slide 6: Significant net income growth vs. prior year
financial transparency. Significant net income growth vs. prior year Net income, in EUR bn 29% 2.1 1.8 1.6 1.4 1.2 1Q 2Q 3Q 4Q 1Q 2006 2007 Investor Relations 05/07 · 6
Slide 7: Sustained revenue momentum
financial transparency. Sustained revenue momentum Net revenues, in EUR bn 20% 9.6 8.0 6.9 7.2 6.4 1Q 2Q 3Q 4Q 1Q 2006 2007 Investor Relations 05/07 · 7
Slide 8: Noninterest expenses reflect consolidations and accelerated equity compensation
financial transparency. Noninterest expenses reflect consolidations and accelerated equity compensation Noninterest expenses, in EUR bn 17% 6.3 5.4 5.1 4.8 4.5 4.3 3.6 3.0 3.1 2.7 1.8 1.8 1.8 2.0 2.0 1Q 2Q 3Q 4Q 1Q 2006 2007 Compensation and benefits Non-comp noninterest expenses Note: Figures may n
Slide 9: Cost / income ratio improved vs. prior year quarter
financial transparency. Cost / income ratio improved vs. prior year quarter In % Cost / income ratio(1) 67 69 71 71 70 66 1Q 2Q 3Q 4Q FY 1Q 2006 2006 2007 Compensation ratio(2) Non-compensation ratio(3) 45 44 43 43 44 45 28 29 22 26 26 21 1Q 2Q 3Q 4Q FY 1Q 1Q 2Q 3Q 4Q FY 1Q 2006 2006 2007 2006 2006
Slide 10: Agenda: Segment results
financial transparency. Agenda 1 Summary 2 Group results 3 Segment results 4 Risk and capital management Investor Relations 05/07 · 10
Slide 11: CB&S: Record results
financial transparency. CB&S: Record results Results at a glance Condensed P&L Income before income taxes, in EUR m In EUR m Key ratios, in % Change vs. 10% 1Q2007 1Q2006 4Q2006 2,180 1,978 Revenues 6,117 18% 59% 1,345 Provisions* 21 (63)% n.m. 1,027 1,028 Noninterest exp. (3,949) 21% 41% IBIT 2,180
Slide 12: Record revenues in Sales & Trading debt …
financial transparency. Record revenues in Sales & Trading debt … S&T (debt and other) – net revenues Key features in 1Q2007 In EUR m Credit Favourable market positioning 20% Synergies from retail distribution 3,355 2,807 FX & Money Markets Record results driven by client activity 2,455 Rank
Slide 13: … and in Sales & Trading equity
financial transparency. … and in Sales & Trading equity S&T (equity) – net revenues Key features in 1Q2007 In EUR m Equity Derivatives Synergies through retail distribution 11% Strength in key hedge fund client segment 1,713 Cash 1,546 Equities Strong YoY growth in Europe and Asia 1,059 744 Pr
Slide 14: Origination & Advisory: Sustained year-on-year momentum
financial transparency. Origination & Advisory: Sustained year-on-year momentum Origination & Advisory – net revenues Key features in 1Q2007 In EUR m Advisory Advisory Origination Record revenues Pipeline up significantly vs. 1Q2006 17% #2 advisor to U.S. financial sponsors 845 HY / syn- 797 d
Slide 15: GTB: Sustained growth in revenues and profitability
financial transparency. GTB: Sustained growth in revenues and profitability Results at a glance Condensed P&L Income before income taxes, in EUR m In EUR m Key ratios, in % Change vs. 18% 1Q2007 1Q2006 4Q2006 199 214 Revenues 612 14% 5% 181 170 154 Provisions* (1) n.m. (35)% Noninterest exp. (397) 7
Slide 16: AWM: Real estate revenues lower than in prior year quarter
financial transparency. AWM: Real estate revenues lower than in prior year quarter Results at a glance Condensed P&L Income before income taxes, in EUR m In EUR m Key ratios, in % Change vs. (19)% 1Q2007 1Q2006 4Q2006 Revenues 1,008 (5)% (11)% 233 242 238 182 188 Provisions* (1) n.m. 3% Noninterest
Slide 17: PBC: Profits approach strong 1Q2006
financial transparency. PBC: Profits approach strong 1Q2006 Results at a glance Condensed P&L Income before income taxes, in EUR m In EUR m Key ratios, in % Change vs. 1Q2007 (3)% 1Q2006 4Q2006 Revenues 1,425 9% 7% 302 293 252 264 Provisions* (116) 36% 9% 223 Noninterest exp. (1,016) 11% 1% IBIT 293
Slide 18: Agenda: Risk and capital management
financial transparency. Agenda 1 Summary 2 Group results 3 Segment results 4 Risk and capital management Investor Relations 05/07 · 18
Slide 19: Problem loans remain at low levels
financial transparency. Problem loans remain at low levels Problem loans not considered Problem loans, in EUR bn impaired under IFRS IFRS impaired loans(1) IFRS impaired loans coverage ratio(2) 3.5 3.4 3.4 3.2 3.1 2.9 2.8 2.7 2.7 2.6 59% 60% 61% 61% 63% 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2006 2007 (
Slide 20: Provisions reflect PBC growth and releases in CIB
financial transparency. Provisions reflect PBC growth and releases in CIB Provision for credit losses, in EUR m 131 98 82 76 9 1Q 2Q 3Q 4Q 1Q Thereof: CIB 2006 2007 (72) (19) (27) 24 (20) 85 94 104 107 117 Thereof: PCAM Note: Divisional figures do not add up due to omission of Corporate Investments
Slide 21: Tier I ratio solid, despite RWA increase and acquisitions
financial transparency. Tier I ratio solid, despite RWA increase and acquisitions 8.8 8.7 8.9 8.7 8.7 9% 8.5 Target range 8% 285 271 275 256 263 Tier I ratio, in % RWA, 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar in EUR bn 2006 2007 Note: March, June and September 2006 based on U.S. GAAP Investor Relations 0
Slide 22: Strong performance against target ratios
financial transparency. Strong performance against target ratios Pre-tax RoE (target definition)(1) Diluted EPS (target definition)(2) In % 1ppt In EUR 1st quarter 1st quarter 40 41 10.24 31 25 6.95 16 4.53 13 3.88 2.31 2.87 35% 2003 2004 2005 2006 1Q 1Q 2003 2004 2005 2006 1Q 2006 2007 2007 (1) 200
Slide 23: Another outstanding first quarter
financial transparency. Another outstanding first quarter 1Q2007 financial highlights EUR Revenues Cost / income ratio 20% 9.6 bn (1)ppt 66% Income before EUR Return on Equity* income taxes 22% 3.2 bn 2ppt 45% EUR EUR Net income Diluted EPS 29% 2.1 bn 38% 4.28 Record first-quarter profits Progress
Slide 24: Additional information
financial transparency. Additional information Analyst Call A Passion to Perform. Deutsche Bank
Slide 25: Number of shares for EPS calculation
financial transparency. Number of shares for EPS calculation In million Average At end of period 1Q FY 1Q 31 Mar 31 Dec 31 Mar 2006 2006 2007 2006 2006 2007 Common shares issued 526 522 525 518 525 525 Total shares in treasury (18) (22) (27) (11) (26) (22) Common shares outstanding 508 500 498 506 4
Slide 26: Group headcount
financial transparency. Group headcount Full-time equivalents, at period end 31 Mar 2007 vs. 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 31 Dec 2006 2005 2006 2006 2006 2006 2007 Net of Total change de-/consoli- dation CIB 12,800 12,885 13,251 13,880 14,384 16,410 2,026 395 PCAM 26,587 27,143 27,802 2
Slide 27: Invested assets report
financial transparency. Invested assets(1) report In EUR bn Net new 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar money 2006 2006 2006 2006 2007 1Q2007 Asset and Wealth Management 713 683 713 732 747 8 Asset Management 544 518 540 543 553 4 Institutional 138 131 137 139 140 0 Retail 236 223 233 236 241 4 Alter
Slide 28: Regional invested assets – AM and PWM
financial transparency. Regional invested assets(1) – AM and PWM In EUR bn 31 Mar 2007 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar vs. 2006 2006 2006 2006 2007 31 Dec 2006 Asset Management 544 518 540 543 553 2% Germany 238 230 237 238 249 4% UK 7 8 8 10 12 18 % Rest of Europe 50 48 49 48 45 (5)% Americas 22
Slide 29: Regional net new money – AM and PWM
financial transparency. Regional net new money – AM and PWM In EUR bn 1Q2006 2Q2006 3Q2006 4Q2006 FY2006 1Q2007 Asset Management 5 (5) 6 (0) 6 4 Germany 7 (1) 1 (3) 5 8 UK (1) 0 0 1 1 1 Rest of Europe (1) (1) 0 (2) (4) (3) Americas (1) (4) 3 3 0 (3) Asia / Pacific 2 1 0 1 4 1 Private Wealth Manageme
Slide 30: Corporate Investments
financial transparency. Corporate Investments Results at a glance Condensed P&L (reported) Income before income taxes, in EUR m In EUR m Change vs. 1Q2007 1Q2006 4Q2006 305 Revenues 438 164% 163% Provisions* (1) n.m. n.m. 127 109 45 80 Noninterest exp. (134) 212% 47% IBIT 305 141% 280% Main items
Slide 31: Alternative assets exposure
financial transparency. Alternative assets exposure Book values, in EUR bn 2.6 2.7 2.5 2.5 2.4 0.2 0.2 0.1 CI - Private Equity funds 0.4 0.3 0.3 0.3 CI - Private Equity directs 0.4 0.6 0.4 0.4 0.3 CI - Real Estate 0.4 0.4 0.4 1.0 1.0 PCAM 0.9 0.9 1.0 0.6 0.8 0.8 CIB 0.5 0.2 31 Mar 30 Jun 30 Sep 31 D
Slide 32: Listed holdings – unrealised net gains of EUR 3.2 bn
financial transparency. Listed holdings – unrealised net gains of EUR 3.2 bn In EUR m Stake Market value (in %) 31 Mar 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2007 2006 2006 2006 2006 2007 DaimlerChrysler AG 4.4% 2,124 1,728 1,770 2,103 2,766 Allianz AG 2.2% 1,330 1,191 1,316 1,494 1,485 Linde AG 7.8% 85
Slide 33: Loan book
financial transparency. Loan book In EUR bn 10% 189 183 189 172 178 CI/Other CIB 100 91 94 85 91 94 PCAM 85 86 88 90 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2006 2007 Note: Figures may not add up due to rounding differences Investor Relations 05/07 · 33
Slide 34: Risk efficiency
financial transparency. Risk efficiency VaR of CIB trading units (99%, 1 day), in EUR m EUR 4.4 bn Sales & Trading revenues EUR 5.1 bn 100 90 80 70 60 50 ∅ 68.2 ∅ 67.6 ∅ 69.3 ∅ 72.9 ∅ 77.5 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 Investor Relations 05/07 · 34
Slide 35: Update on share buybacks
financial transparency. Update on share buybacks Total repurchases 1.6 m 2.8 m 3.3 m In % of shares issued* 0.3% 0.5 % 0.6 % Capital consumption EUR 0.1 bn EUR 0.3 bn EUR 0.3 bn Share Share price, in EUR Number of shares, in ‘000 buybacks 110 2,500 105 Weekly 2,000 repurchase 100 volume (shares) 1,5
Slide 36: Our target definition
financial transparency. Our target definition Pre-tax return on equity (target definition) IBIT attributable to DB shareholders (target definition) IBIT attributable to DB shareholders (target definition) Reported income before income tax expense Less minority interest Average active equity IBIT att
Slide 37: Cautionary statements
financial transparency. Cautionary statements The information provided herein does not represent a full set of financial statements in accordance with IAS 1 and IFRS 1. Therefore it may be subject to adjustments based on the preparation of the full set of financial statements for 2007. The segment i