Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Cheuvreux Treasury Seminar (December 2007)
22 slides from Deutsche Bank's conference presentation, Dec 11, 2007
Slide 1: Treasury Management at Deutsche Bank
Treasury Management at Deutsche Bank Knut Pohlen, Deputy Group Treasurer and Global Head of Funding & Liquidity Management Cheuvreux Treasury Seminar London, 11 December 2007
Slide 2: Agenda
Agenda 1 Organizational set-up 2 Asset & liability management 3 Funding strategy 4 Summary Investor Relations 12/07 · 2
Slide 3: Agenda
Agenda 1 Organizational set-up 2 Asset & liability management 3 Funding strategy 4 Summary Investor Relations 12/07 · 3
Slide 4: Organizational set-up
Organizational set-up Chief Risk Officer Hugo Banziger Group Treasurer Chris Whitman Treasury Functions Policy Regions Committee Capital & Balance Asia / Liquidity & Funding Americas Europe Sheet Pacific Knut Pohlen Richard Gunar Rainer Rainer Rauleder (Deputy Treasurer) Ferguson Schramm Rauleder In
Slide 5: Treasury & Capital Management fully integrated into corporate governance process
Treasury & Capital Management fully integrated into corporate governance process Functional Committees Group-wide Finance Capital and Risk Compliance functional Human Resources Risk Executive IT & Operations Investment committees Management Board Group Executive Committee (includes Business Heads &
Slide 6: Strategic functions in Treasury & Capital Management
Strategic functions in Treasury & Capital Management Liquidity Management ¾ Liquidity Risk Management to safeguard the ability of the bank to meet all payment obligations when they come due ¾ Framework to identify, measure, monitor, and control liquidity risk under normal market conditions and under
Slide 7: Agenda
Agenda 1 Organizational set-up 2 Asset & liability management 3 Funding strategy 4 Summary Investor Relations 12/07 · 7
Slide 8: Treasury and Global Markets – partnering on various fields
Treasury and Global Markets – partnering on various fields Treasury Global Markets Banking book risk Transferred into trading books Issuance of senior & junior instrum. GM Global Capital Markets Securitizations / GM Global Credit Trading Secondary market trading Share buybacks GM Equities FX hedging
Slide 9: Deposit bucketing as effective asset & liability management tool
Deposit bucketing as effective asset & liability management tool Empirical stability of retail core deposits Determine “core balance“ and duration serves as natural hedge for interest rate & liquidity risk of retail loans balance Business core volume scenarios Duration of deposit bucketing to r
Slide 10: Daily cash flow projection and limits for the first 8 weeks
Daily cash flow projection and limits for the first 8 weeks 8-week horizon 80-week horizon Net cash flow Cash inflows profile Cash outflows 8 Week Limit Cumulative cash flow profile Daily cash flow projection based on contractual maturity Modelling of liabilities and loan assets with non-contrac
Slide 11: Structural Funding Profile
Structural Funding Profile Further improvement due to long-term capital market issues and stable retail deposits Structural Funding Profile 500 Illustrative Assets 450 400 Equity 350 Liabilities 300 Mismatch 250 200 150 100 50 0 1y 2y 3y 4y 5y 6y 7y 8y 9y 10y Profile includes all assets and all li
Slide 12: Agenda
Agenda 1 Organizational set-up 2 Asset & liability management 3 Funding strategy 4 Summary Investor Relations 12/07 · 12
Slide 13: Balance sheet structure boosted since IFRS implementation
Balance sheet structure boosted since IFRS implementation Illustrative Assets Liabilities Cash / Bank / Central bank(1) Equity Other assets Unsecured Loans (net) funding Other(2) Secured funding Financial Other assets liabilities(3) Total EUR 1.9 tn Total EUR 1.9 tn Note: Indicative figures as per 3
Slide 14: Secured funding
Secured funding Repo market: Repo diversification by region and type Deutsche Bank is a significant player in bilateral 100% Asia Repo Triparty Repo and tri-party repo and stock loan market. Pacific 80% A substantial portion of the trading assets are Europe funded on a secured basis, some of which
Slide 15: Broad and stable unsecured funding base
Broad and stable unsecured funding base Total unsecured funding diversification year-to-date, in EUR bn 3Q2007 total: 510 4Q2006 total: 465 Stable & other deposits +51 -6 Short-term wholesale funding 122 106 107 102 98 81 61 24% 21% 51 22% 47 23% 19% 39 33 17% 23 24 29 13% 18 14 9% 10% 4% 4% 10
Slide 16: Deutsche Bank’s issuance strategy
Deutsche Bank’s issuance strategy Internal drivers External drivers Capital planning Market opportunities Spread management Diversification Integrated long- Investor demand term issuance strategy Funding requirements Investor Relations 12/07 · 16
Slide 17: Capital markets issues are well diversified
Capital markets issues are well diversified Total outstanding of EUR 98 bn* Distribution by type Distribution by currency JPY Other 4% 5% CHF 3% Capital instruments Senior plain GBP 2% vanilla 15% CAD 1% 15% 5% 46% 49% EUR 46% 46% 39% 39% 36% 39% USD Senior structured * Includes all Debt evidenced b
Slide 18: Review of issuance plan 2007
Review of issuance plan 2007 Orig. funding plan largely completed by end-July Issuance activity year-to-date, in EUR bn – ~ EUR 19bn based upon leading the cycle strategy Initial Plan 2007: 23.0 Treasury revised long-term funding plan in light of Actual: 42.8 this summer’s liquidity squeeze: By
Slide 19: Issuance plan 2008
Issuance plan 2008 Total issuance at EUR 38 bn Key demand drivers for issuance plan Capital markets issuance plan 2008, in EUR bn – Business growth – Diversify away from dislocated money markets Case – Funding of 2008 maturities and partial pre-funding Low Base High of 2009 maturities Key figure
Slide 20: Agenda
Agenda 1 Organizational set-up 2 Asset & liability management 3 Funding strategy 4 Summary Investor Relations 12/07 · 20
Slide 21: Summary
Summary Virtually all banking book rate risk transferred into trading books Significant duration extension in 2007 Strong growth in stable deposit base in 2007 Continuation of duration extension & stable deposit growth in 2008 Investor Relations 12/07 · 21
Slide 22: Cautionary statements
Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under the International Financial Reporting Standards (IFRS). It may be subject to adjustments based on the preparation of the full set of financial statements for 2007. The segment informat
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