Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (May 2009)
34 slides from Deutsche Bank's debt investor presentation, May 29, 2009
Slide 1: Inaugural Mortgage Pfandbrief Fixed Income Investor Roadshow
Deutsche Bank Inaugural g Mortgage g g Pfandbrief Fixed Income Investor Roadshow The Netherlands / Germany / Switzerland 25 - 29 May 2009
Slide 2: Agenda
Agenda 1 Group Performance 2 Funding and Capital Management 3 Cover Pool Investor Relations / Treasury 05/09 · 2
Slide 3: We remain a relative winner through the crisis
We remain a relative winner through the crisis Aggregate IBIT, 3Q2007-1Q2009, reported, adjusted for FV gains on own debt, in EUR bn 98 9.8 (1) 9.0 (2) 6.0 (1.4) (3) (7.9) (9.4) (4) (32.1) Fair value gains (46.3) on own debt (1) 3Q2007-4Q2008 3Q2007 4Q2008 IBIT and FV gains on own debt based on dive
Slide 4: Intrinsic capital strength
Intrinsic capital strength Impact of state capital injections Tier I ratio as of 31 March 2009, in % Tier I ratio excluding state capital injections 16.7 16.0 14 1 14.1 11.9 11.4 10.5 10.2 10.1 8.8 8.7 8.6 13.2 13.4 9.3 8.4 6.8 7.4 7.8 7.7 (1) (2) MS GS CS C JPM UBS DB BoA BNP SOC BAR (1) Based on B
Slide 5: Strong revenue generation in the first quarter 2009
Strong revenue generation in the first quarter 2009 In EUR bn Significant g p property p y impairment p Mark-downs Monolines 0.8 * 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 * Includes EUR 0.9 bn of mark-downs Investor Relations / Treasury 05/09 · 5
Slide 6: Substantial profitability, even after mark-downs
Substantial profitability profitability, even after mark-downs In EUR bn Income before income taxes Net income 3.2 2.7 2.1 1.8 1.8 1.6 1.4 1.4 1.0 1.2 06 0.6 06 0.6 0.4 0.1 (0 3) (0.3) (0.1) (6 2) (6.2) (4 8) (4.8) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 00 2007 008 2008
Slide 7: Significant reduction in balance sheet leverage
Significant reduction in balance sheet leverage Total assets, in EUR bn 30 June 2008 31 Mar 2009 Leverage ratio(2) 2,103 38 1,991 1,338 28 (653) 25 982 (1,122) IFRS Netting(1) U.S. GAAP IFRS Netting(1) U.S. GAAP 30 Jun 31 Dec 31 Mar ‘pro-forma’ ‘pro-forma’ 2008 2008 2009 (1) Based on netting rules a
Slide 8: Agenda
Agenda 1 Group Performance 2 Funding and Capital Management 3 Cover Pool Investor Relations / Treasury 05/09 · 8
Slide 9: Capital ratios have been strengthened
Capital ratios have been strengthened 10.3 10.2 10.1 Target: g 8.7 8.8 9.2 9.3 ~10% 8.4 8.6 72 7.2 75 7.5 7.0 7.1 7.1 6.9 6.9 7.0 6.8 329 319 316 308 311 308 303 305 285 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: 2007 based on Basel I, f
Slide 10: Increasing Tier 1 capital during the crisis
Increasing Tier 1 capital during the crisis In EUR bn 1.9 5.3 32.3 3.2 (4 0) (4.0) 26 0 26.0 (0.1) EUR 12.2 bn of capital raised1) 30 June Net Equity Hybrid Other Other 31 March 2007 income capital capital2) capital3) measures 2009 & effects4) 1) Includes EUR 1.8 bn sales of industrial holdings 2) I
Slide 11: Funding
Funding Strong growth of stable funding sources, in EUR bn Growth in retail deposits & clearing balances Stable deposit p growth by g y business line – PBC: Strong organic deposit growth – GTB: Organic growth and ‘flight-to-quality’ inflows PWM GTB PBC – PWM: Increase through deposit campaigns and
Slide 12: Funding
Funding Unsecured funding by source, in EUR bn 511 495 Cash and liquidity reserves exceed 15% 75 short-term wholesale 153 30% f di funding + 62 420 358 30 JJune 2007 31 M Mar 2009 Short-term wholesale funding Capital markets Fiduciary clearing & other deposits Fiduciary, Retail deposits Investor Rel
Slide 13: Liquidity Management
Liquidity Management Structural liquidity profile positive across all term buckets The liquidity profile aggregates all Liquidity Profile (as of December 2008), in EUR bn assets and liabilities across the maturity profile and calculates the 300 cumulative net position per bucket Assets 250 Equity
Slide 14: Liquidity Management
Liquidity Management Strategic Liquidity Reserve (SLR) Deutsche Bank has created a Strategic Strategic Liquidity Reserve, in EUR bn Liquidity Reserve which it has substantially 70 increased between Dec 2007 and Dec 2008 60 (+ EUR 48 bn) The SLR constitutes portfolios of liquid 50 securities and
Slide 15: Funding Plan 2009
Funding Plan 2009 Capital market issuance EUR 16 bn; total stable funding EUR 33 bn Funding plan 2009, in EUR bn Modest requirements for 2009 in light of nearly EUR 100 bn issuance in 2007-2008 in EUR bn Plan YTD Capital 2 0 Key demand drivers for funding plan Plain Vanilla Senior 4 3 – Balance
Slide 16: Pfandbrief issuance
Pfandbrief issuance Attractive funding alternative Funding cost advantage outweighs … DB CDS vs. Pfandbriefe, in bps – Significant Si ifi t ffunding di advantage d t ffor the th bbank k 180 DB 5yr senior CDS – Diversification benefit – increase penetration of certain 160 Mortgage Pfandbrief invest
Slide 17: Agenda
Agenda 1 Group Performance 2 Funding and Capital Management 3 Cover Pool Investor Relations / Treasury 05/09 · 17
Slide 18: Summary of Key Terms
Summary of Key Terms Summary of Key Terms Pfandbrief Pf db i f Issuance I Amount: A t EUR [1[1,000,000,000] 000 000 000] Currency: EUR Term: [5-7 years] Rating (Moody’s / S&P): Aaa / AAA Coupon: Fixed Rate, equating to a yield of Mid-Swaps + [TBD] bps C Coupon P Payment FFrequency: A Annual l Liquid
Slide 19: Maturity
Maturity The cover pool predominantly consists of medium term loans Cover Pool maturity profile Remaining term (yrs) % of Pool <3 10 0% 10.0% 60 0% 60.0% 3.0 – 3.5 20.4% 50.0% 3.5 – 4.0 0.0% 40.0% 4.0 – 4.5 4.6% 30.0% 4.5 – 5.0 5.3% 20.0% 5.0 – 5.5 55.8% 10.0% 5.5 – 6.0 0.0% 0.0% <3 6.0 3.5 5.5 6.0
Slide 20: Seasoning
Seasoning Cover Pool seasoning profile Seasoning (yrs) % of Pool < 1.25 1 25 0 0% 0.0% 40 0% 40.0% 1.25 – 1.50 29.1% 30.0% 1.50 – 1.75 3.7% 20.0% 1.75 – 2.00 34.7% 2.00 – 2.25 22.4% 10.0% 2.25 – 2.50 6.1% 0.0% < 1.25 > 2.75 1.25 - 1.50 2.25 - 2.50 2.50 - 2.75 2.00 - 2.25 1.50 - 1.75 2.00 2.50 – 2.75
Slide 21: Interest Rate Type, Currency
Interest Rate Type Type, Currency The cover pool predominantly consists of fixed rate, EUR denominated loans Cover Pool interest rate type yp Mortgage loans – interest rate % of pool Fixed 90.0% Floating 10.0% Fixed Floating Total 100.0% Cover Pool currency Mortgage loans – currency % of pool EUR 93
Slide 22: Credit quality – stability
Credit quality – stability The loans in the cover p pool feature extraordinarily y stable income characteristics – Locations: The loans are predominantly secured by real estate located in Germany and the UK. Locations within these countries are diversified and feature strong demographic profiles M
Slide 23: Credit quality – diversity
Credit quality – diversity The loans in the cover pool feature a high degree of diversity of collateral and income sources – Collateral – the pool is secured by more than 3,250* properties – more than 70% of the loans (by balance) are collateralised by 20 or more properties – more than 35% of the
Slide 24: Credit quality – diversity (continued)
Credit quality – diversity (continued) The loans in the cover pool feature a high degree of diversity of collateral and income sources – IIncome sources – the pool derives income from leases on more than 23,000 units – nearly 90% of the loans (by balance) are serviced with income generated from 10
Slide 25: Additional information
financial transparency. Additional information Roadshow A Passion to Perform. Deutsche Bank
Slide 26: DB's Real Estate Group
DB’s DB s Real Estate Group DB’s Real Estate Group incorporates the specialised knowledge centres required to originate, underwrite and fund high quality mortgage financings Real Estate / Pfandbrief Group Deutsche Bank AG (DB) – Loan Origination and Underwriting: Interfaces with clients Real Est
Slide 27: DB's Credit Risk Management Group
DB’s DB s Credit Risk Management Group Credit Risk Management (CRM) is the independent credit approval and monitoring function for DB. CRM represents the Bank's Bank s centre of competence for all counterparty risk related matters CRM has approximately 3,000 employees worldwide, located in 20 co
Slide 28: Credit approval for new loans
Credit approval for new loans The origination platform follows established procedures when originating a loan. These provide independent internal and external checks to the process process, thereby protecting the bank from a credit and legal perspective Legal and ComplianceReal Estate Group Third
Slide 29: Credit approval for new loans (continued)
Credit approval for new loans (continued) – C Capital it l Markets: M k t Before B f presenting ti the th deal d l ffor credit dit approval, l th the originator i i t consults lt th the group’s ’ CCapital it l M Markets k t tteam, which hi h approves the loan’s pricing and structure as suitable for
Slide 30: Deutsche Bank's credit ratings profile
Deutsche Bank’s Bank s credit ratings profile As of 22 May 2009 Senior unsecured debt Aa1 A+ AA- Outlook Negative Stable Watch Negative Short term debt P1 P-1 A1 A-1 F1+ Investor Relations / Treasury 05/09 · 30
Slide 31: Relatively small loan book and manageable risk cost
Relatively small loan book and manageable risk cost In EUR bn Loan book Provision for credit losses As of 31 December 2008 FY2008 CIB / Other Private clients other Private clients mortgages Note: Private Clients reflects for CS: "Consumer Consumer loans“; loans ; UBS: “Global Global Wealth Managemen
Slide 32: Deutsche Postbank: Considerable strategic optionality
Deutsche Postbank: Considerable strategic optionality Clients of German retail banks as of 2008, in million* Sparkassen ~50.0 Volksbanken ~30.0 14.1 11.0 Cooperation As of 2008 (figures for Germany only) Branches 856 930 10.1 Mobile sales force ~4,260 ~1,600 6.7 FTE ~21,130 ~15,460 ~4.0 3.3 * Source
Slide 33: Balance sheet leverage ratio (target definition)
Balance sheet leverage ratio (target definition) In EUR bn 31 Mar 31 Dec 2009 2008 Total assets (IFRS) 2,103 2,202 Adj t derivatives Adjust d i ti according di tot U.S. U S GAAP netting tti rules l (1 020) (1,020) (1 097) (1,097) Adjust pending settlements according to U.S. GAAP netting rules (97) (
Slide 34: Cautionary statements
Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). (IFRS) This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact
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