Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Deutsche Bank Aktiengesellschaft — FY2012 Earnings Presentation
32 slides from Deutsche Bank's earnings presentation, Feb 1, 2013
Slide 1: Deutsche Bank AG Annual Press Conference
Exhibit 99.3 Deutsche Bank Deutsche Bank AG Annual Press Conference Jürgen Fitschen and Anshu Jain, Co-Chairmen of the Management Board and the Group Executive Committee Frankfurt, 31 January 2013
Slide 2: Agenda for today
Agenda for today 1 Strategy 2015+: A progress update (Co-CEOs) I Delivering our strategy II Client centricity and cultural change 2 Full year 2012: Key aspects of financial performance (CFO) 3 Q&A Deutsche Bank Jürgen Fitschen and Anshu Jain financial transparency. 1 31 January 2013
Slide 3: Results at a glance
Results at a glance In EUR bn, unless otherwise stated 4Q FY 2012 2011 2012 2011 Net revenues 7.9 6.9 33.7 33.2 Performance Core Tier 1 ratio, Basel 3 fully loaded, in %(1) 8.0 <6.0 8.0 <6.0 highlights Dividend per share, EUR - - 0.75(2) 0.75 Reported Group IBIT (2.6) (0.4) 1.4 5.4 Non-Core Operatio
Slide 4: Strategy 2015+: Our five key levers
Strategy 2015+: Our five key levers We aspire to be the leading client-centric global universal bank Capital Costs Competencies Clients Culture Deutsche Bank Jürgen Fitschen and Anshu Jain financial transparency. 3 31 January 2013
Slide 5: Capital: Ahead of target on capital strength
Capital: Ahead of target on capital strength Accelerated capital demand reduction… … raising capital aspirations Pro-forma B3 RWA equivalent(1) relief, in EUR bn, period Pro-forma B3 CT 1 ratio, (fully loaded), in %, period end end Achieved by ID(2) goal >200bps Dec 2012 Mar 2013 8.5 8.0 8.0 7.2 Non
Slide 6: Costs: Operational Excellence Program well underway
Costs: Operational Excellence Program well underway Cost savings Achievements by 4Q12 (selected examples) In EUR bn Achieved / underway Target IT platform — 660 applications decommissioned; new apps reduced by 50% renewal — >20 million clients shifted to common retail banking IT platform(2) 1.6 — CB
Slide 7: PBC: Solid performance, progress on Postbank integration
PBC: Solid performance, progress on Postbank integration Example challenges Business response FY12 vs. FY11, mortgages in Adv. Banking Germany Market share +8% +~30bps Persistently low interest growth in rate environment lending business Mortgage Market (1) volume growth share gain (2) AB Internatio
Slide 8: AWM: Laying foundations for future performance
AWM: Laying foundations for future performance Example challenges Business response AWM FTE (10)% Short-term consequences ~7,100 ~6,500 of strategic review Efficiency measures underway Peak 31 Dec 2012 (June 2012) Complex five-way business integration — Integrated organization with clear leadership
Slide 9: GTB: Continued strong operating performance
GTB: Continued strong operating performance Example challenges Business response GTB fee income, in EUR bn(1) 31% 1.9 Persistent low Higher fee 1.5 interest rates income FY07 FY12 Revenue growth, FY 2012 vs. FY2011(1) 19% 23% Competitive pressure Above market 14% 9% increasing revenue growth Total G
Slide 10: CB&S: Strengthening our leading franchise despite a challenging environment
CB&S: Strengthening our leading franchise despite a challenging environment Example challenges Business response Global rankings 2012 Macroeconomic concerns and market volatility Global leader in #1 #1 #1 #2 #2 Fixed Income Overall FI FX US FI EU FI Asia FI rd th (FI) (3 con- (8 con- secutive secuti
Slide 11: The Investment Bank: a lot has changed
The Investment Bank: a lot has changed ILLUSTRATIVE We completely changed business mix... ... and de-risked in a lower return environment Share of Markets revenues CB&S, in EUR bn (2) Dedicated prop trading Client solutions Pre- Illiquid markets Most liquid flow Crisis (3) 2012 Change ~5% <5% Capita
Slide 12: Our journey to global leadership in investment banking
Our journey to global leadership in investment banking 1995: A call to action 2012: A true global advisor Leading financial advisor on Largest ever corporate largest common stock follow- European mandatory Germany’s largest bank initially on offer in US USD 21bn) in bond issuance for not appointed f
Slide 13: The quantum and uncertainty of regulation is a challenge
The quantum and uncertainty of regulation is a challenge Enormous level of scrutiny… ...and implementation uncertainties remain Systemic Risk Markets Bank Structure — OTC derivatives — Volcker — HFT — Liikanen Tarullo says Fed Seeks More Capital — Short selling — Vickers at Foreign Banks’ Units — AI
Slide 14: Competencies: Our franchise remains resilient
Competencies: Our franchise remains resilient Revenues, in EUR bn Private & Business Asset & Wealth Global Transaction Corporate Banking & Clients Management Banking Securities 15.6 14.1 10.4 9.5 4.3 4.5 4.0 3.6 FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 Deutsche Bank Jürgen Fitschen and Anshu Jain fin
Slide 15: Agenda for today
Agenda for today 1 Strategy 2015+: A progress update (Co-CEOs) I Delivering our strategy II Client centricity and cultural change 2 Full year 2012: Key aspects of financial performance (CFO) 3 Q&A Deutsche Bank Jürgen Fitschen and Anshu Jain financial transparency. 14 31 January 2013
Slide 16: Clients: Delivering on the promise of client-centricity
Clients: Delivering on the promise of client-centricity Provided >300,000 new mortgages in Germany, EUR 24bn volume, 12% of total new market Supported ~60,000 small business clients in starting up or developing Enabled 180 companies worldwide to access the capital markets for the first time Helped ~
Slide 17: Clients: Strengthening our franchise across all regions
Clients: Strengthening our franchise across all regions… Regional strategy 2012 achievements — ‘Best Bank in Germany’ — Build on ‘bank of choice’ position Germany — ‘Best Bank for Old Age — Launch of lending growth initiative Provisioning advisory’ — ‘Most Innovative EMEA ex — Align resources to gro
Slide 18: ... with strong commitment to our German home market
... with strong commitment to our German home market — 24m clients, covered by ~46,000 employees in ~1,900 locations(1) Clients and market — ~100% of Large Caps and 80% of Large Mid Caps covered — Undisputed leadership across core divisions Group — 46% of Group(2) IBIT (2008-2012) contribution — EUR
Slide 19: Culture: Deutsche Bank is at the forefront of cultural change
Culture: Deutsche Bank is at the forefront of cultural change Existing cultural Further emphasis strengths required Focus areas Near Creating sustainable and respected Long term term compensation practices Performance orientation and culture sustainability Tightening the control environment Entrepre
Slide 20: Review and implementation of sustainable and responsible compensation practices
Review and implementation of sustainable and responsible compensation practices Independent compensation review panel Significant change underway Status — Variable compensation as % of revenues reduced by >50% vs. pre-crisis — Deferral extended from 3 to 5 years for Top 150 management (‘cliff vestin
Slide 21: Balancing the interests of stakeholders
Balancing the interests of stakeholders Variable comp (1) has decreased significantly… …to an all-time low Variable compensation in % of revenues In EUR bn Deferral rate 22% Cash 20% 4.8 Deferred 19% (13)ppt 4.3 17% (11)% 15% 3.6 2.7 3.2 2.2 11% 1.4 9% 1.7 43% 61% 49% 47% 2.1 2.1 2.2 1.5 2006 2007 2
Slide 22: We have fundamentally tightened our control environment
We have fundamentally tightened our control environment 1 — Over 250,000 mandatory training assignments completed Enablement — 125 new compliance training courses introduced — Mandatory Business Conduct and Ethics training for all employees roll-out planned 2 — Client adoption procedures tightened —
Slide 23: A clear framework for long-term cultural change
A clear framework for long-term cultural change Diagnostics Co-CEO led Implementation operational focus (4Q 2012) (Throughout 2013) (Current) Feedback from 52,000 Board / GEC: — Realignment of DB employees: — Integrity in client dealing performance standards DB People Survey — Operational discipline
Slide 24: Strategy 2015+: Committed to delivery
Strategy 2015+: Committed to delivery Strong underlying performance enabled us to embark upon a path of deliberate but tough decisions We are convinced that this path will lead us in the right direction – becoming the world’s leading client-centric global universal bank This is a journey that we wil
Slide 25: Agenda for today
Agenda for today 1 Strategy 2015+: A progress update (Co-CEOs) I Delivering our strategy II Client centricity and cultural change Full year 2012: Key aspects of financial performance 2 (CFO) 3 Q&A Deutsche Bank Jürgen Fitschen and Anshu Jain financial transparency. 24 31 January 2013
Slide 26: Net revenues and provision for credit losses
Net revenues and provision for credit losses Net revenues Provision for credit losses In EUR bn In EUR bn Non-Core Operations Unit Core Bank 33.2 33.7 1.8 1.7 0.4 0.6 1.5 1.1 FY2011 FY2012 FY2011 FY2012 Basel 2.5 RWA Loan loss ratio, in bps (1) 381 334 44 43 (1) Provision for credit losses / loan bo
Slide 27: Cost base development
Cost base development Noninterest expenses Adjusted cost base Adjustments to noninterest expenses In EUR bn In EUR m FY2011 FY2012 In % 24.8 Reported 25,999 30,623 4,624 18% 0.9 23.9 Impairments of goodwill - (1,865) and other intangibles Significant litigation related (277) (1,626) charges (> EUR 1
Slide 28: Group financial performance – FY2012
Group financial performance – FY2012 FY2012 Non-Core (1) In EUR m Group Core Bank Operations Unit Net revenues 33,741 32,683 1,058 Provision for credit losses (1,721) (1,087) (634) Noninterest expenses (adjusted)(2) (27,133) (25,060) (2,073) IBIT (adjusted) 4,887 6,536 (1,649) Impairment of goodwill
Slide 29: Key performance indicators: Balance sheet
Key performance indicators: Balance sheet 31 Dec 2011 31 Dec 2012 Tier 1 ratio, Basel 2.5, in % 12.9 15.3 240 bps Core Tier 1 ratio, Basel 2.5, in % 9.5 11.6 210 bps Core Tier 1 ratio, Basel 3 fully loaded, in %(1) < 6.0 8.0 >200 bps Total assets (IFRS), in EUR bn 2,164 2,012 (152) Total assets, adj
Slide 30: NCOU: De-risking accomplished in 2012
NCOU: De-risking accomplished in 2012 In EUR bn 2011 2012 Total assets, adjusted (1) 130 95 (35) Risk weighted assets, >150 106 > (44) Basel 3 fully loaded Core tier 1 capital consumption, at 10% >15.0 10.6 > (4.4) Lower capital consumption EUR >4.4 bn Regulatory capital impact from FY results(2) –
Slide 31: Agenda for today
Agenda for today 1 Strategy 2015+: A progress update (Co-CEOs) I Delivering our strategy II Client centricity and cultural change Full year 2012: Key aspects of financial performance 2 (CFO) 3 Q&A Deutsche Bank Jürgen Fitschen and Anshu Jain financial transparency. 30 31 January 2013
Slide 32: 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
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