Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Société Générale Premium Review Conference 2009
26 slides from Deutsche Bank's conference presentation, Dec 3, 2009
Slide 1: Deutsche Bank at Société Générale Premium Review Conference
Deutsche Bank Dr Gurdon Wattles Dr. Head of Investor Relations & Group Finance Communications Société Générale Premium Review Conference Paris, 3 December 2009
Slide 2: Agenda
Agenda 1 Well prepared for a changing landscape 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside 4 Acquisition of Sal. Oppenheim Investor Relations 12/09 · 2
Slide 3: Capital ratios have strengthened consistently
Capital ratios have strengthened consistently 11.7 11.7 11.0 10.3 10.2 Target: 10.1 ~10% 9.2 9.3 8.1 78 7.8 7.5 6.9 7.0 7.1 6.8 319 308 316 303 305 295 288 1Q 2Q 3Q 4Q 1Q 2Q 3Q 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 Ti
Slide 4: Strong capital ratio relative to peers
Strong capital ratio ratio, relative to peers Impact of state capital As of 30 September 2009, in % Tier 1 ratio excluding state capital 85 8.5 16.4 16.0 15.4 15.0 12.3 12.8 11.7 10.5 10.3 10.2 10.4 10.1 9.4 9.7 92 9.2 8.0 9.5 9.3 9.3 8.8 7.5 (1) (2) (3) (4) CS GS MS UBS DB BAR HSBC JPM BoA BBVA SOC
Slide 5: Capital demand and supply
Capital demand and supply – Capital demand + Capital supply Regulatory impact on RWAs Retained earnings − ~EUR 50 bn market risk (Basel II) Asset reduction initiative − New Basel II rules will become effective b 1 JJan 2011 by − Continue to reduce legacy and Level 3 assets Organic growth O
Slide 6: Significant balance sheet reduction
Significant balance sheet reduction Balance sheet, in EUR bn 30 June 2008 30 S Sep p 2009 009 g ratio(2) Leverage 38 38 1,991 (31%) 32 1,338 1,660 Target: 28 25x (653) 25 25 915 24 (745) IFRS Netting(1) U.S. U S GAAP IFRS tti (1) Netting N U.S. U S GAAP J Jun S Sep D Dec M Mar J Jun S Sep ‘pro-forma
Slide 7: A solid, high-quality funding base
A solid solid, high-quality funding base In EUR bn Unsecured U secu ed funding u d g Liquidity qu d ty position pos t o Cash and liquidity reserves exceed short-term 511 wholesale funding of EUR 76 bn 481 DB proactively reduced wholesale borrowing 153 30% 16% 76 sharply early in the crisis and w
Slide 8: Credit risk in context
Credit risk in context xx 3Q2009 provision for credit losses, in EUR m In EUR bn, as of 30 Sep 2009 IAS 39 reclassified assets 544 123 134 287 Low loan to 263 value 35 Substantially hedged Highly diversified Substantially Short term / Fully collateralised collateralised on demand (66) Liquid by Gov’
Slide 9: Loan book is performing relatively well
Loan book is performing relatively well Loan loss ratio(1), 9M2009 annualised, in bps PCAM 785 CIB / Other 674 606 457 227 201 186 198 183 191 146 144 152 120 75 40 7 19 Citi BoA JPM BAR(2) BNP SOC UBS CS Group 618 570 458 215 170 147 102 67 30 (1) Provision for credit losses divided by loan book as
Slide 10: Summary: Well prepared for a changing landscape
Summary: Well prepared for a changing landscape 30 Sep 30 Sep 2008 2009 Income before income taxes (YTD, in EUR bn) 0.5 4.4 Profitability N t income Net i (YTD in (YTD, i EUR b bn)) 09 0.9 36 3.6 Pre-tax RoE (YTD, target definition)(1) (3)% 18% Tier 1 capital ratio 10.3% 11.7% Capital strength Core
Slide 11: Agenda
Agenda 1 Well prepared for a changing landscape 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside 4 Acquisition of Sal. Oppenheim Investor Relations 12/09 · 11
Slide 12: Successful recalibration of a diversified platform
Successful recalibration of a diversified platform Sales & Trading revenues by business area Indicative Debt and other p products Equity q y Pre-crisis Current* Pre-crisis Current* Com- EM Com- EM MM & FX Prop Prop modities modities MM & FX Cash Cash Prime P i Prime Broke- Broke- rage rage Credit Ra
Slide 13: Sales & Trading revenues close to all-time highs
Sales & Trading revenues close to all-time highs … January – September, in EUR bn Specific S ifi ititem Mark-downs Net revenues (1) 0.4 1.6 0.8 4.2 10.2 10.4 10.6 83 8.3 6.7 4.3 2004 2005 2006 2007 2008 2009 (1) Includes charges related to Ocala Funding LLC of approx. EUR 350 m Note: 2004-2005 based
Slide 14: Improved asset efficiency and lower risk
… but with improved asset efficiency and lower risk Global Markets, indexed, 2005 / Oct 2008 = 100% Revenues to assets ratio(1) Assets Value-at-Risk Value at Risk 297 GM VaR GM constant input VaR 167 148 100 97 100 92 100 83 84 73 60 68 55 57 46 45 2005 2006 2007 2008 30 Sep 2005 2006 2007 2008 30 S
Slide 15: We have consolidated or extended market share
We have consolidated or extended market share ... Before crisis Current Rank Rank FX 22% 1 FX 21% 1 Interest Rate Interest Rate 12% 1 12% 1 Derivatives Derivatives Emerging g g Emerging 12% 2 11% 1 Markets Debt Markets Debt HY Credit 11% 3 HY Credit 14% 1 IG Credit 7% 6 IG Credit 8% 2 EU Equities 11
Slide 16: Significant gains in the critical U.S. market
… with significant gains in the critical U.S. U S market U.S. clients’ expected increase/decrease in business with leading investment banks Change in U.S. market share Expected change in business due to the crisis 28% 3.0% Equities Pre-crisis 18% 5.9% After crisis 7% 6.4% Investment Grade 8.9% (6)%
Slide 17: Agenda
Agenda 1 Well prepared for a changing landscape 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside 4 Acquisition of Sal. Oppenheim Investor Relations 12/09 · 17
Slide 18: GTB: Current environment impacts revenues
GTB: Current environment impacts revenues … GTB, Income before income taxes Key features In EUR m R Revenues Continued impact of weak corporate environment Negative effect from constant low interest rates across all products and regions 291 Trade Finance: Continued strong top-line 283 281 perf
Slide 19: GTB: But upside potential exists
… but upside potential exists GTB, Income before income taxes Upside potential I EUR m In 9M Business External drivers 1,106 Cash Normalisation of interest rates 945 Management Rising cross border payments Recovery in global trade volumes 705 Trade Growing g demand for long g term Fi Finance
Slide 20: AWM: Recovery in the third quarter
AWM: Recovery in the third quarter AWM, Income before income taxes Key features In EUR m A Asset M Management Lower specific charges 242 188 Retail revenues and performance fees boosted by tightening spreads 134 Positive impact of repositioning / rightsizing Net new money of EUR 5 bn (850) (
Slide 21: PBC: Positioning in a tight revenue environment
PBC: Positioning in a tight revenue environment PBC, Income before income taxes Revenues in key product areas In EUR m Severance(1) In EUR m Investment products (incl (incl. brokerage) Deposits Credit products 4 5 403 400 366 281 257 6 253 275 15 415 407 424 427 438 377 373 304 328 12 262 150 106 20
Slide 22: Net new money inflows in the third quarter 2009
Net new money inflows in the third quarter 2009 In EUR bn 11 11 10 1 PBC 5 AM 5 PWM (2) (2) (6) (17) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 Investor Relations 12/09 · 22
Slide 23: Agenda
Agenda 1 Well prepared for a changing landscape 2 Investment banking: Recalibrated for the post-crisis era 3 Non-investment banking businesses: Geared to upside 4 Acquisition of Sal. Oppenheim Investor Relations 12/09 · 23
Slide 24: A strategically and financially attractive transaction
A strategically and financially attractive transaction Price / AuM 1.0% Acquisition of 100% of Sal. Oppenheim S.C.A. for EUR 1.0 bn Includes Sal. Oppenheim S.C.A., BHF Asset Servicing GmbH (BAS) and Sal. Oppenheim Private Equity Partners S.A. (SOPEP) Transaction Additional Addi i l payment ffo
Slide 25: A major step forward in private wealth management
A major step forward in private wealth management Clear leadership in Germany … … and a top-4 position in Europe Rank Players PB AuM, in EUR bn (2008) Rank Players PB AuM, in EUR bn (2008) 1 44 (1) 47 141(1) 232 1 927 2 45(2) 2 407 3 29 3 250 (1) 4 24 4 164 58 189(1) 411 5 23 Deutsche Bank PWM 5 187
Slide 26: 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. them These statements are based on plans, estimates an
Deutsche Bank — Société Générale Premium Review Conference 2009 on 6ix