Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (September 2009)
33 slides from Deutsche Bank's roadshow presentation, Sep 25, 2009
Slide 1: Deutsche Bank – Stefan Krause, CFO, Paris
Deutsche Bank Stefan Krause Chief Financial Officer Paris, 25 September 2009
Slide 2: Agenda
Agenda 1 Strength g through g the crisis 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside Investor Relations 09/09 · 2
Slide 3: Deutsche Bank a relative winner in the crisis
Deutsche Bank a relative winner in the crisis 3Q2007- 2Q2009, reported, in EUR bn Aggregated net income Fair value gains/losses on own debt 11.8 1.1 (1) 95 9.5 06 0.6 8.1 (0.9)(4) 1.0 0.2 (1.9) 3.6 (2) ((2.5)) 1.7 (20.8) 2.5 (24.3) 3.7(5) (3) (28.2) 4.1 (1) 3Q07-4Q08 3Q07 4Q08 based on diverging fis
Slide 4: Capital ratios have been strengthened
Capital ratios have been strengthened 11.0 Target: 10.3 10.2 ~10% 10% 10.1 9.2 9.3 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 R
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 tti (1) U.S. Netting N U S GAAP J Jun S Sep D Dec M Mar J Jun ‘pro-forma’ ‘pro-forma’ 2008 2009 (1)
Slide 6: Funding and Liquidity: Quantity, quality and consistency
Funding and Liquidity: Quantity, Quantity quality and consistency In EUR bn Unsecured U secu ed funding u d g Capital Cap ta market a et funding u d g progress p og ess New issuance 511 54 479 30% 14% 68 45 153 FY 2009 plan completed + 53 21 411 358 15 16 30 Jun 2007 30 Jun 2009 2005 2006 2007 2008
Slide 7: Loan book and provisions remain low in comparison …
Loan book and provisions remain low in comparison … In EUR bn Loan book split Provision for credit losses As of 31 December 2008 1H2009 CIB / Other Private Clients Other* 659 Private Clients Mortgages 20.0 491 509 527 478 16 7 16.7 358 12.5 271 231 160 5.1 4.2 2.4 1.0 1.5 03 0.3 CS UBS DB SOC BAR Ci
Slide 8: … and have performed relatively well so far
… and have performed relatively well so far 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 a
Slide 9: In all categories, risk mitigants exist
In all categories, categories risk mitigants exist As of 30 June 2009, in EUR bn xx 2Q2009 provision for loan losses, in EUR m Low risk ((64%)) Moderate risk ((23%)) Higher g risk (13%) ( ) 147 156 677 268 Collateralised; Low loan to value 36 Substantially hedged & diversified Highly diversified 64
Slide 10: Agenda
Agenda 1 Strength g through g the crisis 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside Investor Relations 09/09 · 10
Slide 11: Earnings power in Sales & Trading
Earnings power in Sales & Trading Revenues, in EUR bn Successfully y recalibrated business model Revenue g generation and loss absorption p Illustrative Mark-downs S&T debt and equity revenues Additional <1% de-risking g Highly illiquid ~15% 1.0 ~55% 01 0.1 Medium / ~60% High Liquidity 1.4 5.1 2.1 4
Slide 12: Flow businesses have grown through the crisis …
‘Flow’ Flow businesses have grown through the crisis … Sales & Trading revenues, indexed, 1H2007 = 100 Foreign g Exchange g Money y Markets x1.7 x3.2 1H2007 1H2008 1H2009 1H2007 1H2008 1H2009 Rates x2.2 1H2007 1H2008 1H2009 Note: 2007 based on structure as of 2008, 2008 onwards based on latest struc
Slide 13: ... while we continue to reduce risk and costs
... while we continue to reduce risk and costs Global Markets U.S. GAAP ‘pro forma’ balance sheet ‘pro-forma’ Non comp direct costs Non-comp (43)% (23)% (1)% (7)% 1Q2008 (Peak) (P k) 1Q2009 2Q2009 4Q2008 1Q2009 2Q2009 Constant input VaR* Example: USD basis risk (38)% (45)% (8)% (42)% Oct 2008 ((Peak
Slide 14: Corporate Finance has captured share in tough conditions
Corporate Finance has captured share in tough conditions Corporate Finance revenues M&A announced In EUR m Advisory Ad i Ranking by volume in USD bn Origination 2008 Global 1H09 1,090 1 Goldman Sachs 851 1 Morgan Stanley 409 2 JP Morgan 779 2 Goldman Sachs 352 727 3 Citi 699 3 JP Morgan 304 4 BoA/Me
Slide 15: Agenda
Agenda 1 Strength g through g the crisis 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside Investor Relations 09/09 · 15
Slide 16: GTB remains an important growth business …
GTB remains an important growth business … Income before income taxes Outlook & prospects I EUR m In 1H 1,106 Challenges: Lower interest rates 945 FX movements Lower equity valuations 705 Risk hedging costs 433 Opportunities: 403 Expand E d iinto t new markets k t 254 Attract new clients
Slide 17: … leveraging 'flight to quality'
… leveraging ‘flight flight to quality quality’ Market share capture – Clearing, at period end, in % US-Dollar US Dollar EURO 20.1 18.7 17 4 17.4 9.0 82 8.2 6.8 2007 2008 1H2009 2007 2008 1H2009 Source: CHIPS, RTGS, Target 2 Germany Investor Relations 09/09 · 17
Slide 18: A challenging environment for PCAM
A challenging environment for PCAM Equity indices Brokerage and portfolio- Volatility / fund management I d Indexed d 1 Jan J 2008 = 100 R Revenues, iin EUR m PBC AWM 110 1,165 1 195 1,195 S&P 500 1,076 90 345 355 912 327 842 857 213 70 DAX 245 248 (37)% (40)% 820 840 50 749 699 597 609 30 1 Jan 200
Slide 19: AWM: Restoring operating leverage at lower market levels
AWM: Restoring operating leverage at lower market levels Income before income taxes Outlook & prospects In EUR m Asset Management 242 188 Reposition European MM fund exposure RREEF impairments (110) Right-size RREEF Severance* (54) Downsize hedge fund platform (850) Cost savings in mid / bac
Slide 20: PBC: Implementation of 'Growth and Efficiency' program
PBC: Implementation of ‘Growth Growth and Efficiency Efficiency’ program Income before income taxes Business model In EUR m Severance* Advisory Ad i b ki banking: P iti ffor recovery iin Position investment products via selective investments Consumer banking: Position for margin compression via
Slide 21: Deutsche Postbank: Considerable strategic optionality
Deutsche Postbank: Considerable strategic optionality Clients of German retail banks as of 2008, in million* Sparkassen ~50.0 Volksbanken ~30.0 14.1 11.0 Cooperation As of 2008 (figures for Germany only) Branches 856 930 10.1 Mobile sales force ~4,260 ~1,600 6.7 FTE ~21,130 ~15,460 ~4.0 3.3 Source:
Slide 22: 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 23: Additional information
financial transparency. Additional information Roadshow A Passion to Perform. Deutsche Bank
Slide 24: Capital strength in peer context
Capital strength in peer context 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 DB UBS BAR HS
Slide 25: Equity raisings
Equity raisings Announced, since 1 July 2008, in EUR bn Government Private 55 41 39 38 35 14 11 11 11 9 7 7 5 4 3 3 3 BoA/ RBS Lloyds C Wells HSBC JPM MS GS BAR CS Uni BNP UBS SOC DB Crédit MER Group Fargo credit Agricole Note: Converted into EUR based on FX-rate as of the announcement date/reportin
Slide 26: 2Q2009 specific P&L items
2Q2009 specific P&L items In EUR m Noninterest expenses R Revenues LLP LLPs Comp & Gen. & Other non- T t l Total Total benefits Admin comp Equity comp hedges 392 - 392 Specific Postbank gain 234 - 234 Industrial Holdings 132 - 132 Specific p positive p effects 758 - - - - - 758 Provisions related to
Slide 27: Provision for credit losses
Provision for credit losses In EUR m Related to IAS 39 reclassified assets 1 526 1,526 1,000 591 526 236 799 114 135 492 249 406 308 164 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2008 2009 2008 2009 Thereof: CIB (11) (9) 66 361 357 779 (20) 1,136 125 145 169 229 169 221 270 391 Thereof: PCAM Note: Divisional figures
Slide 28: Problem loans
Problem loans xx IAS 39 impact - IFRS impaired loans In EUR bn 8.2 5.7 4.6 6.7 3.9 4.5 3.2 3.3 3.7 3.2 27 2.7 25 2.5 06 0.6 08 0.8 11 1.1 26 2.6 62% 65% 53% 53% 50% 46% 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2008 2009 Problem loans not considered impaired under IFRS IFRS impaired loans coverage r
Slide 29: Loan book
Loan book xx IAS 39 impact on CIB loan book In EUR bn 23% 271 276 268 255 12 14 CI 13 209 217 25 34 38 37 145 151 154 144 112 CIB 107 102 105 109 108 108 110 PCAM 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2008 2009 Germany excl. financial institutions: 86 87 88 93 96 96 Note: Total incl. CI / Other;
Slide 30: Risk-based analysis of monoline exposure
Risk-based analysis of monoline exposure Fair value assets, as of 30 June 2009, in EUR bn Risk category g y Non-investment g grade monolines AA monolines FV assets FV assets Provision- FV assets Provision- FV assets prior to prior to ing ratio after CVA ing ratio after CVA U S RMBS U.S. CVA CVA Su
Slide 31: Value of Level 3 assets
Value of Level 3 assets((1)) Asset sset c classes asses 2Q2009 Q 009 development de e op e t In EUR bn Key changes: 88 (20)% – Reduction in derivatives market values 2 80 6 – Sales and unwinds 14 72 64 – Net transfer from Level 3 to Level 2 10 5 2 9 49 45 33 17 15 13 31 Dec D 2008 31 Mar M 2009 30
Slide 32: VaR of CIB trading units
VaR of CIB trading units VaR of CIB trading units 99%, 1 day, in EUR m Constant VaR of CIB trading units* EUR 1.4 bn Sales & Trading revenues EUR 3.5 bn 180 160 140 120 100 80 60 40 20 ∅ 112 ∅ 124 ∅ 134 ∅ 141 ∅ 145 ∅ 57 ∅ 61 ∅ 58 ∅ 45 ∅ 44 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 * Constant VaR is an appr
Slide 33: 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