Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Barclays Global Financial Services Conference 2011
28 slides from Deutsche Bank's conference presentation, Sep 13, 2011
Slide 1: Deutsche Bank Barclays Global Financial Services Conference 2011
Deutsche Bank Deutsche Bank Rainer Neske Head of Private & Business Clients and Member e be o of tthe e Management a age e t Board oa d Deutsche Bank Barclays 2011 Global Financial Barclays Global Financial Services Conference 2011 financial transparency. Services Conference Investor Relations Raine
Slide 2: Agenda
Agenda 1 2Q2011 results 2 Private & Business Clients 3 The new Deutsche Bank Deutsche Bank Barclays Global Financial Services Conference 2011 financial transparency. 2 Investor Relations Rainer Neske, Member of the Management Board
Slide 3: Robust earnings despite difficult market conditions
Robust earnings despite difficult market conditions Income before income taxes Net income I EUR bn In b I EUR bn In b 2.8 3.0 1.8 1.8 2.1 15 1.5 13 1.3 ((1)) 1.2 1.1(1) 1.2 0.7 0.6 (1.0) (1.2) 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 2010 2011 2010 2011 Pre-tax return on equity(2), in % Effective tax rat
Slide 4: Good progress towards a more balanced business mix
Good progress towards a more balanced business mix Income before income taxes – share of operating businesses Classic banking (PBC / AWM / GTB) Investment banking (CB&S) therein PBC 23% 29% 71% 40% 60% ABN AMRO Netherlands 2009 2010 1H2011 Deutsche Bank Barclays Global Financial Services Conference
Slide 5: Capital ratios at record levels
Capital ratios at record levels att period i d end d 14 0 14.0 12.6 12.3 Tier 1 ratio, in % 10.1 8.5 8.6 10.2 8.7 8.7 Core Tier 1 ratio, in % 6.9 6.9 7.0 328 346 320 275 307 273 67 Postbank 58 RWA, in EUR bn 2006 2007 2008 2009 2010 1H2011 Note: Tier 1 ratio = Tier 1 capital / RWA; Core Tier 1 ratio
Slide 6: Sovereign exposures well under control
Sovereign exposures well under control I EUR b In bn Overview of net sovereign exposure Key features 31 Dec 2010 — Joint sovereign exposure (net) ( ) to 30 Jun 2011 12.1 Greece, Ireland, Italy, Portugal and Spain declined 70% to EUR 3.7 bn as of 30 Jun 2011 vs. 31 Dec 2010, due to targetedd risk i k
Slide 7: Update on 2011 targets
Update on 2011 targets I Income before b f income i taxes, t in i EUR bn b Phase 4 1H2011 potential 2011 Key features / Prospects — Material deterioration of market assumptions versus plan. Corporate Banking & Concerns intensified over sovereign debt risk leading to 3.3 6.4 increased client uncertai
Slide 8: Outlook into 2H2011
Outlook into 2H2011 — Considerable near term uncertainties in the Eurozone, in the world economy, in financial markets, and in the new regulatory environment — EUR 10 bn earnings target is still achievable but predicated on a recovery in European g capital markets and progress with regards g to a so
Slide 9: Agenda
Agenda 1 2Q2011 results 2 Private & Business Clients 3 The new Deutsche Bank Deutsche Bank Barclays Global Financial Services Conference 2011 financial transparency. 9 Investor Relations Rainer Neske, Member of the Management Board
Slide 10: PBC - dominant in Germany and sizable in Europe
PBC - dominant in Germany and sizable in Europe ... t l(1) PBC ttotal — ~ 29 million clients — > EUR 530 bn CBV, CBV thereof: — EUR 186 bn credit products — EUR 205 bn deposits and payments — EUR 142 bn investment and insurance products — ~ 2,900 branches at attractive locations — ~ 43,800 FTE — Com
Slide 11: As a result of significant investments
… as a result of significant investments Name Timing Description Status Holding Consideration — 61 branches in the area of Berlin — fully integrated 2006 100%(1) ~EUR EUR 680 m — ~ 320,000 clients acquired — ~ 350,000 clients — 98 branches in Germany — > 600,000 clients — > 300,000 clients and — EUR
Slide 12: Our new integrated target operating model
Our new integrated target operating model will enable us to b benefit fit from f broad b d market k t coverage … Strategy & Steering One integrated management Consumer Advisory Advisory Two brands B ki Banking B ki Banking B ki Banking Germany Germany International Two value propositions Platform (p
Slide 13: Composed of distinct franchises
... as it is composed of distinct franchises Clients Client Business Volume Branches 31 Dec 2010, in m FY2010, in EUR bn 31 Dec 2010 Advisory Advisory Advisory Advisory Banking Advisory Banking Advisory Banking Banking International Banking International Banking International Germany Germanyy German
Slide 14: The German retail market offers room for profit growth
The German retail market offers room for profit growth Clients Income before income taxes German retail segment, 31 Dec 2010, in m German retail segment, FY2010, in EUR bn Savings ~50 Savings banks banks 5.6 Mutual Mutual banks ~30 banks 4.5 PBC+ 10 14 24 PBC+ 1.7 11 0.5 7 0.4 6 0.3 4 0 05 0.05 Tota
Slide 15: EUR ~1 bn synergies p.a. target
We target to deliver EUR ~1 bn synergies p.a. with cumulative l i cost-to-achieve hi off EUR ~1.4 1 4 bn b In EUR million Synergies y g by y type yp Synergies y g by y category g y Cumulative cost-to-achieve ~1 bn p.a. ~ 1 bn p.a. ~1.4 bn 100 Revenue e e ue Revenue synergies y g / 250 ~250 Cross-div
Slide 16: CtA to be recovered by synergies at an early stage
CtA to be recovered by synergies at an early stage I EUR m In Run rate synergies of EUR ~1 bn p.a. Cumulative cost-to-achieve of EUR ~1.4 bn Revenue / cross-divisional synergies CtA distribution illustrative Sales Optimization Premium Processes ~1 bn S Sourcing i / costt managementt Operations IT He
Slide 17: Joint platform is a huge opportunity for efficiency gains
Creating the joint platform is a huge opportunity to realize significant i ifi efficiency ffi i gains i Efficiency Retail CIR, FY 2010, in % The platform comprises: BBVA 35 — all harmonized middle and back office processes Santander 40 — central COO functions Nordea 54 — product management ING 57 —
Slide 18: Strong momentum across all franchises in 1H2011
Strong momentum across all franchises in 1H2011 … I Income b f before income i ttaxes, in i EUR m EUR 1.6 bn Therein ~EUR 236 m net Huaxia 532 Bank one-off 1,245 (after hedging costs and performance related compensation) p ) (118) 403 428 Advisory Advisory Consumer Cost-to- IBIT FY 2011 Banking g Ba
Slide 19: Roadmap to PBC's ambition level
... supports the roadmap to PBC’s ambition level I Income before b f income i taxes, t in i EUR bn b >3.0 ~0.9 ~1.3 Advisory Banking Postbank(2) Synergies(3) Combined Ambition Germany & growth level International 2011(1) (1) Excluding HuaXia one-off impact , cost-to-achieve and Complexity Reduction
Slide 20: Creating value for Deutsche Bank
Creating value for Deutsche Bank Objectives Growth EUR 1.6 bn IBIT target 2011 1 EUR >3.0 bn IBIT ambition 2014 / 2015 Integration EUR 1 bn synergies 2 Significant de-risking at Postbank level(1) Culture Develop an adequate common culture 3 Maintain strong employee commitment (1) ~EUR 9 bn RWA reduc
Slide 21: Recent PBC Workshop presentations provide further insights
Recent PBC Workshop presentations provide further insights Webcast replay: http://www.deutsche-bank.com/ir/video-audio Slides: http://www.deutsche-bank.com/ir/presentations Deutsche Bank Barclays Global Financial Services Conference 2011 financial transparency. 21 Investor Relations Rainer Neske, Me
Slide 22: Agenda
Agenda 1 2Q2011 2 Private & Business Clients 3 The new Deutsche Bank Deutsche Bank Barclays Global Financial Services Conference 2011 financial transparency. 22 Investor Relations Rainer Neske, Member of the Management Board
Slide 23: While PBC is delivering on its ambitions
While PBC is delivering on its ambitions … Revenues of EUR >10 10 bn Income before income taxes of EUR >3 bn Cost / income ratio of <60% Pre-tax RoE of >20% Top 5 retail deposit taker in Europe Assumptions: Full run-rate, i.e. full synergies realized PPA effects fully amortized No further cost-to-ac
Slide 24: It will contribute to shape the 'new Deutsche Bank'
… it will contribute to shape the ‘new Deutsche Bank’ Well capitalised More balanced Core tier 1 ratio Income before income taxes 10.2% (1) Classic banking (PCAM / GTB) Investment bank (CB&S) > 8% Basel 2.5 B Basel l3 29% >40% De-risking <60% Retained 71% ABN AMRO earnings Netherlands June 2011 Jan
Slide 25: Key take-aways
Key take-aways 1H2011 Group results: Robust earnings despite difficult market conditions C it l ratios Capital ti are att record d llevels l - core tier ti 1 ratio ti iincreased d 150 b bps iin 1H2011 alone l PBC with 'quantum leap' in profits: More than double year-on-year, significant contribution
Slide 26: Additional information
Deutsche Bank Additional information
Slide 27: Well-established advisory banking franchise in Europe and India
Well-established advisory banking franchise in Europe and I di and India, d strong strategic i partnership hi iin China Chi As of 30 June 2011, in EUR bn, PBC only Established PBC franchises HXB partnership Germany Italy Spain Portugal Poland Belgium India China Strategic Branches ~2,000 318 250 51
Slide 28: Cautionary statements
Cautionary statements This presentation contains forward forward-looking looking statements. Forward Forward-looking 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 b
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