Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Morgan Stanley European Financials Conference 2012
25 slides from Deutsche Bank's conference presentation, Mar 28, 2012
Slide 1: Morgan Stanley European Financials Conference
Deutsche Bank Deutsche Bank Stefan Krause Chief Financial Officer Deutsche Bank Stefan Krause Morgan Stanley European Financials Conference financial transparency. Investor Relations London, 28 March 2012 Morgan Stanley European Financials Conference 2012
Slide 2: Agenda
Agenda 1 2011 overview 2 Capital, funding and liquidity 3 Capitalizing our franchise strength Deutsche Bank Stefan Krause financial transparency. 2 Investor Relations Morgan Stanley European Financials Conference 2012
Slide 3: Results overview
Results overview FY2011 FY2010 Income before income taxes (in EUR bn) 5.4 4.0 Net income (in EUR bn) 4.3 2.3 (1) Profitability Pre-tax RoE (target definition) 10% 15% Diluted EPS (in EUR) 4.30 2.92 (2) Dividend per share (in EUR) 0.75 0.75 31 Dec 2011 31 Dec 2010 Core Tier 1 capital ratio 9.5% 8.7%
Slide 4: Prepared for challenges and for performance
Prepared for challenges and for performance Transformed towards a more balanced, lower-risk business model Strengthened footprints in PBC, PWM and GTB Delivered execution excellence on acquisitions Focused vigorously on high-quality liquidity and funding profile Maintained high capital discipline De
Slide 5: Agenda
Agenda 1 2011 overview 2 Capital, funding and liquidity 3 Capitalizing our franchise strength Deutsche Bank Stefan Krause financial transparency. 5 Investor Relations Morgan Stanley European Financials Conference 2012
Slide 6: Highest year-end capital ratios ever despite Basel 2.5
Highest year-end capital ratios ever despite Basel 2.5 At period end Basel 1 Basel 2 Basel 2.5 14.7 12.9 12.6 12.3 10.1 8.6 10.8 9.5 8.7 8.7 6.9 7.0 346 381 329 308 327 273 2007 2008 2009 2010 2011 pro-forma 2011 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Tier 1 ratio = Tier 1 c
Slide 7: Preparation of implementation of Basel 3 well underway
Preparation of implementation of Basel 3 well underway Simulation(1), in EUR bn xx Core Tier 1 ratio (%) Pro forma RWA Pro forma Core Tier 1 capital and ratios 9.5% 9.7% 8.5% 9.5% 105 499 499 5 47 2 2 43 381 12 394 36 2 38 Dec 11 Normali- Jun 12 Basel 3 1 Jan Dec 2013 Dec 11 Net Jun 12 Net Add-back
Slide 8: Differences in risk weightings reflect different regimes
Differences in risk weightings reflect different regimes RWA as % of total assets adj. for netting (Dec 2011) US ― Large internationally active banks show BAC 60% average risk weights of about 50% JPM 54% ― Broker dealer focused banks show somewhat lower risk weights; banks more akin to C 52% univer
Slide 9: Higher average risk weights coincide with higher risk
Higher average risk weights coincide with higher risk Large corporate, 45% LGD, 1 year maturity 300% ― Regulatory risk weights are designed to capture the risk of unexpected losses per 200% exposure unit Basel II risk weight ― Higher default probabilities lead to higher risk weights - and so do high
Slide 10: Strong funding profile and record liquidity reserves
Strong funding profile and record liquidity reserves Development through the crisis Composition of liquidity reserves In EUR bn, at period end As at 31 Dec 2011 Liquidity reserves(1) Discretionary Unsecured Wholesale Funding(2) 219 Highly liquid securities(3) 30% 156 150 133 104 62% 65 Other 8% cent
Slide 11: Agenda
Agenda 1 2011 overview 2 Capital, funding and liquidity 3 Capitalizing our franchise strength Deutsche Bank Stefan Krause financial transparency. 11 Investor Relations Morgan Stanley European Financials Conference 2012
Slide 12: Banks still facing further sector specific challenges
Banks still facing further sector specific challenges Restrictions on banking business model and activities Regulation Growing capital and liquidity requirements More constraining accounting rules Balance sheet utilization Competitive Standardisation / commoditisation dynamics Increasing concentrati
Slide 13: Good revenue performance vs. peers
Good revenue performance vs. peers revenues(1), FY 2011 vs FY 2010, in % Deutsche Bank Peers(2) Group Corporate Banking & Securities Global Transaction Banking 13 14(3) 8 7 (8) (15) (23) Asset Management Private Wealth Management Private and Business Clients 73(4) 3 6 2 4 (11) (1) Based in EUR, ad
Slide 14: Investment bank significantly affected by environment in 2011
Investment bank significantly affected by environment in 2011 Corporate Banking & Securities Income before income taxes 2011 impacted by In EUR m ― Significant slowdown in industry-wide activity as a result of the ongoing European 5,033 sovereign debt crisis 4,202 3,393 ― Significant unanticipated i
Slide 15: However, CB&S showed relative resilience ...
However, CB&S showed relative resilience ... % YoY change 2010: Rank 5 DB performance drivers 2011: Rank 3 CB&S revenues(1), in EUR bn CB&S revenues(1), in EUR bn BoA 21.0 ― More Top-3 positions than JPM 18.1 (7)% any other bank(2) JPM 19.5 BoA 16.2 (23)% GS 18.3 ― Benefits from further 14.9 (15)% i
Slide 16: ... with strong momentum despite lower capital level
... with strong momentum despite lower capital level DB’s CIB franchise broader than virtually all of our key competitors … ... with strong momentum ... ... despite lower Core Tier 1 ratio Number of markets ranked Top 3(1), Change in number of Top 3 Reported ratio, 2011 in % 2011 positions, 2008 – 2
Slide 17: Best result ever in PCAM and GTB
Best result ever in PCAM and GTB Income before income taxes, in EUR bn PBC(1) GTB AWM 78% 3.7 2011 vs. 2009 0.8 x 3.8 31% 2.1 1.1 x 1.2 1.6 (3) 0.2 0.2 (2) 1.0 0.9 1.8 x 3.9 0.9 0.5 2009 2010 2011 IBIT share 32% 29% 56% classic banking(2) (1) Includes Postbank since December 2010 (2) In percent of
Slide 18: Global Transaction Banking: Performance, growth, and a safe haven
Global Transaction Banking: Performance, growth, and a safe haven Market share: Cash Net liquidity provided to DB Income before income taxes Management(1) Group In EUR m Euro Clearing At period end, in EUR bn 19% +4ppt 10% 1,123 17% 21% 70 945 63 2007 2011 Market share: Trade Finance(2) Export LCs G
Slide 19: Asset Management: Focus on core business
Asset Management: Focus on core business DWS: # 1 in German mutual Income before income taxes Invested assets fund market(1) In EUR m In EUR bn Market share in % of AUM, Dec 2011 646 49 DWS/DB 23% DB Advisors 172 Strategic 446 review / AGI 18% for sale Deutsche Insurance Deka 16% Asset 157 Managemen
Slide 20: Private Wealth Management: An established player
Private Wealth Management: An established player Income before income taxes Invested assets # 1 in high net worth clients In EUR m In EUR bn, at period end By invested assets, German market, 31 Dec 2011, in EUR bn Organic Acquisitions 20% 321 +75 (1) 267 118 269 39% APAC Sal. Oppenheim 194 EMEA excl
Slide 21: Private & Business Clients: A quantum leap
Private & Business Clients: A quantum leap Sizeable investments … …resulted in a quantum leap… … and further ambition Income before income taxes, in EUR m ~EUR 6.0 bn(1) Revenues of EUR >10 bn 55% 1,782 Income before income Huaxia taxes of EUR >3 bn ~EUR 1.4 bn(2) Bank 1,146 Cost / income ratio of <
Slide 22: Benefiting from resilient German economy ...
Benefiting from resilient German economy ... Germany with strong economic performance IBIT in Germany 2011 vs. 2009 Germany EU In EUR m IBIT from PB acquisition IBIT ex PB 3.0 GDP 1.5 Illustrative Growth, real, in % (5.1) (4.3) 2009 2011 51% Expected growth: Low Medium High House 15% 120 Prices inde
Slide 23: ... and well positioned in markets seeing strong growth or recovery
… and well positioned in markets seeing strong growth or recovery from the crisis DB revenues(1) by region Macro development FY2011, in % Strong post crisis GDP growth (>3% yoy) Germany 38% Germany Constant decline of unemployment since 2005 Growing economies/ Moderate inflation positive outlo
Slide 24: Deutsche Bank's leading franchise
Deutsche Bank’s leading franchise CB&S improved market position to #3(1) despite lower capital level GTB market leader in Euro Clearing and Trade Finance DWS market leader in core German mutual fund market PWM leading position in private wealth management Germany PBC has emerged as fourth pillar in
Slide 25: 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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