Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Deutsche Bank Financial Services Conference 2013
22 slides from Deutsche Bank's conference presentation, Jun 4, 2013
Slide 1: Deutsche Bank: Adapting to a new world
Deutsche Bank Deutsche Bank: Adapting to a new world Anshu Jain Co-Chairman of the Management Board and the Group Executive Committee Deutsche Bank Financial Services Conference New York York, 4 June 2013 Deutsche Bank Anshu Jain, DB FIG Conference, 4 June 2013 financial transparency.
Slide 2: Agenda
Agenda 1 A changed environment from a year ago 2 Deutsche Bank’s journey Deutsche Bank Anshu Jain, DB FIG Conference, 4 June 2013 financial transparency. 1
Slide 3: Macro/Market trends: Over the past year, decisive intervention has bought us time
Macro/Market trends: Over the past year, decisive intervention has bought us time One year ago: Concerns Action Result Italy implied default (40% recovery), in % 40 ― Break-up Break up of the “[[…]] the ECB is ready to Eurozone do whatever it takes to 30 preserve the euro […]” ― Default of large 20
Slide 4: Macro/Market trends: Understandably, markets have responded
Macro/Market trends: Understandably, markets have responded Lower costs of borrowing Rising equity markets US HY debt yields, in % Indexed to 100 on 31 May 2012, Euro Stoxx 50 MSCI EM in % S&P 500 DAX 20 +35% 130 +34% 15 120 +27% 110 +13% 10 100 5 90 2006 2007 2009 2011 2013 Jun-12 Sep-12 Nov-12 Mar
Slide 5: Macro/Market trends: As ever, intervention creates winners and losers
Macro/Market trends: As ever, intervention creates winners and losers 10 year Treasury note yield, in % Banks Savers 18 Household NIM European banks(1), in % NIM, Retail deposit rates, rates in % pp.a. a borrowers ~1.5% of 2.0 UK/EU/US GDP 16 11% 1.8 lost interest Government borrowers 4.0 income
Slide 6: Regulation trends: In addition to quantum of regulation, the risk of balkanization has increased
Regulation trends: In addition to quantum of regulation, the risk of balkanization has increased Change in regulatory intensity United States Europe Asia Proposals likely delayed / Additional recent proposals relaxed: affecting European banks: More nuanced regulation by ― Prudential rules / Basel 3
Slide 7: Regulation trends: A leverage ratio is undoubtedly important, but has significant flaws
Regulation trends: A leverage ratio is undoubtedly important, but has significant flaws that could lead to perverse outcomes Leverage ratios were not a good indicator of bank stability in the past... ...and cannot be used alone Leverage ratios(1) at peak of crisis or prior to failure or acquisition(
Slide 8: Competitive trends: As expected, higher regulatory thresholds are leading to consolidation
Competitive trends: As expected, higher regulatory thresholds are leading to consolidation Increasing concentration… ...and higher returns for industry leaders % of business accruing to the top 5 firms FY 2007 IB adjusted pre-tax pre tax RoE average 2011 / 2012 2012, grouping based on FY 2012 IB mar
Slide 9: Agenda
Agenda 1 A changed environment from a year ago 2 Deutsche Bank’s journey Deutsche Bank Anshu Jain, DB FIG Conference, 4 June 2013 financial transparency. 8
Slide 10: Deutsche Bank delivered strong results in 1Q 2013
Deutsche Bank delivered strong results in 1Q 2013 In EUR bn, unless otherwise stated Group p Core Bank(1) 1Q 2013 1Q 2012 1Q 2013 1Q 2012 Net revenues 9.4 9.2 9.0 9.0 Total noninterest expenses (6.6) (7.0) (6.1) (6.3) Performance Income before income taxes 2.4 1.9 2.6 2.4 highlights Net income 1.7 1
Slide 11: Capital: We outperformed our ambitious organic capital targets
Capital: We outperformed our ambitious organic capital targets thanks to significant asset sales and hedging hedging... Two quarters of outperformance Significant RWA reduction Pro-forma Basel 3 CT 1 ratio (fully loaded), in %, at period end Pro-forma Basel 3 RWA equivalent(1) relief, 1 Jul 2012 to
Slide 12: Capital: ...platform to raise equity and become one of the best capitalized banks
Capital: …which created the platform for us to raise equity and become one of the best capitalized banks in the world Set of announced capital measures DB now one of the best capitalized banks(1) Pro forma Basel 3 CT 1 ratio (fully loaded) Pro-forma loaded), in % %, at period end ― Issued 90m new sh
Slide 13: CB&S: Strengthening our leading franchise despite a challenging environment
CB&S: Strengthening our leading franchise despite a challenging environment Example challenges Business response Resource reduction in CB&S since June 2012 Macroeconomic concerns Resource (6)% (7)% reduction (10)% (17)% RWA(1) FTE(2) Cost(3) Adj assets Adj. Lower industry volumes — Integration of FI
Slide 14: GTB: Performing solidly, but facing headwinds
GTB: Performing solidly, but facing headwinds Example challenges Business response GTB revenues, in EUR bn FY 2007(1) FY 2011 FY 2012(2) Persistent low Higher fee and 1.9 2.2 1.8 1.8 interest rates interest income 1.5 1.1 Fee income Interest income GTB revenue growth(3), 2012 vs. 2011, in % Market(4
Slide 15: AWM: Integration and streamlining progressing well
AWM: Integration and streamlining progressing well Example challenges Business response 1Q13 vs. 1Q12 +5% +6% +4% Complex business Stabilized and integration growing platform Invested Revenues(1) IBIT assets AWM FTE(2) ~(12)% Resource ~7,300 Streamlining of ~6,500 ~6,400 reduction and platform dupli
Slide 16: PBC: Growth in core products and successful integration
PBC: Growth in core products and successful integration Example challenges Business response Mortgage volume(1) 1Q 2013 vs. 1Q 2012, growth in % Persistently low Growth in +7% interest rate mortgages environment 1Q 12 1Q 13 Investment product revenues(2), indexed (1Q 12 = 100) 100 90 108 Continued r
Slide 17: NCOU: A driving force in strengthening our capital position
NCOU: A driving force in strengthening our capital position A series of successful transactions... ...enabled significant RWA reduction Selected de-risking examples Pro-forma Basel 3 RWA equivalent(1), in EUR bn De-risking activity(2) resulted in a pre-tax Sale of Actavis reduced RWA gain of EUR 0.2
Slide 18: Costs: Operational Excellence program is on track
Costs: Operational Excellence program is on track On track to deliver 2013 target Examples of success In EURbn ― ~900 applications eliminated IT platform 4.5 ― >20 million retail clients migrated to new renewal IT platform (“Magellan“) 4.0 2014 target ― Progress in recalibrating CB&S and Organizatio
Slide 19: Clients: Client-centricity at work
Clients: Client-centricity at work In our home market... ...and globally Example Apple CB&S GTB Infra- Infra structure Integrated commercial banking coverage: ~11,500 small-/ mid-sized corporate clients (Mittelstand) transferred from CB&S and GTB to PBC Deutsche Bank Anshu Jain, DB FIG Conference, 4
Slide 20: Culture: Committed to being at the forefront of cultural change
Culture: Committed to being at the forefront of cultural change Variable comp has decreased significantly Selected examples of cultural change Variable compensation in % of net revenues(1) ― Aligning compensation more Implementing p g closely to values and risk recommendations management of independ
Slide 21: Conclusion
Conclusion Deutsche Bank delivered strong g performance in 1Q 2013 Through strong organic capital formation and our equity raise, we are now one of the best capitalized banks in the world However, uncertainties remain around the timing and size of litigation and However further evolution of the regu
Slide 22: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts;; they y include statements about our beliefs and expectations p and the assumptions p underlying y g them. These statements are based on plans, estima
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