Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2009 Earnings Presentation
53 slides from Deutsche Bank's earnings presentation, Apr 28, 2009
Slide 1: 1Q2009 Results
1Q2009 Results Stefan Krause Chief Financial Officer 28 April 2009
Slide 2: Agenda
Agenda 1 Group p results 2 Segment results 3 Key current issues Investor Relations 04/09 · 2
Slide 3: 1Q2009 Highlights
1Q2009 Highlights Income before income taxes of EUR 1.8 1 8 bn, bn net income of EUR 1.2 1 2 bn Group Provision for credit losses of EUR 0.5 bn performance Diluted EPS of EUR 1.92 Pre Pre-tax tax return on equity* equity of 25% Capital p and Tier 1 ratio of 10.2%, above target balance To
Slide 4: Results in summary
Results in summary In EUR bn 1Q2009 1Q2009 vs. vs. 1Q2009 1Q2008 4Q2008 1Q2008 4Q2008 N t revenues Net 72 7.2 46 4.6 (0 9) (0.9) 56 % n.m. Provision for credit losses (0.5) (0.1) (0.6) n.m. (11)% Noninterest expenses (4 9) (4.9) (4 8) (4.8) (4 7) (4.7) 2% 2% Income before income taxes 1.8 (0.3) (6.2
Slide 5: Net revenues
Net revenues Significant property impairment Mark-downs In EUR bn 0.1 0.5 Monolines 0.8 08 10 1.0 2.2 3.2 2.3 9.6 1.2 8.8 73 7.3 72 7.2 5.1 4.6 5.4 4.4 (0.9) * 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 * Includes EUR 0.9 bn of mark-downs Investor Relations 04/09 · 5
Slide 6: Provision for credit losses
Provision for credit losses Single Si l counterparty t t relationship l ti hi In EUR m Related to IAS 39 reclassified assets 591 526 185 218 329 236 105 114 135 72 98 81 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 Thereof: CIB (20) (42) (19) 190 (11) (9) 66 361 357 117 124 124 136 125 145 169 229 169
Slide 7: Noninterest expenses
Compensation and benefits Noninterest expenses General and administrative expenses In EUR bn Other non-comp expenses* 6.3 6.0 5.5 4.8 46 4.6 47 4.7 4.9 4.0 4.3 3.9 3.5 3.2 2.9 2.1 3.0 2.7 1.9 1.7 2.1 2.3 1.9 2.1 1.8 1.9 1.8 2.1 1.9 0.1 0.2 (0.1) 0.1 0.4 (0.1) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 200
Slide 8: Income before income taxes
Income before income taxes In EUR bn 32 3.2 2.7 1.8 1.4 1.4 0.6 01 0.1 (0.3) (6.2) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 Investor Relations 04/09 · 8
Slide 9: Net income
Net income In EUR bn 2.1 1.8 1.6 1.2 10 1.0 0.6 0.4 (0.1) (4.8) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 ETR, in % 33 34 (13) 33 45 (0) n.m. 23 35 Investor Relations 04/09 · 9
Slide 10: Capital ratios and Risk-Weighted Assets
Capital ratios and Risk-Weighted Assets 10.3 10.2 10.2 10.1 Target: g 9.2 9.3 ~10% 8.7 8.8 8.6 8.4 7.5 7.2 7.1 7.1 7.0 7.0 6.9 6.8 6.9 329 319 316 308 311 308 303 305 285 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,
Slide 11: Development of Tier 1 capital and RWA
Development of Tier 1 capital and RWA Tier 1 capital RWA In EUR bn In EUR bn 1.0 0.1 32.3 8 12 316 1.2 31 1 31.1 (1 1) (1.1) 308 (12) 31 Dec Net Shares Deduction Other 31 Mar 31 Dec FX Reductions Postbank 31 Mar 2008 income issued to for measures / 2009 2008 transaction 2009 Dt. Post Postbank effect
Slide 12: Development of total assets
Development of total assets In EUR bn 31 Dec 2008 31 Mar 2009 Leverage ratio(2) 2,202 2,103 32 28 25 1,030 982 (1,173) (1,122) IFRS Netting(1) U.S. GAAP IFRS Netting(1) U.S. GAAP 30 Sep 31 Dec 31 Mar ‘pro-forma’ ‘pro-forma’ 2008 2008 2009 (1) For 31 Dec 2008 incl incl. derivatives netting of EUR 1 1
Slide 13: Funding situation – Assets and liabilities
Funding situation – Assets and liabilities Balance sheet by product, as of 31 Mar 2009, in EUR bn 2,103 2,103 Unfunded IFRS Derivatives & Derivatives & Settlement Balances(1) 1,208 1,154 balance sheet Settlement Balances(1) it items Reverse Repo & 129 Repo & Other Secured 173 Other Secured 47 Tradin
Slide 14: Unsecured funding by source
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 Mar M 2009 Short-term wholesale funding Capital markets Fiduciary clearing & other deposits Fiduciary, Retail deposits Note: Figures may not
Slide 15: Agenda
Agenda 1 Group p results 2 Segment results 3 Key current issues Investor Relations 04/09 · 15
Slide 16: Pre-tax results by segment
Pre-tax results by segment 1Q2008 1Q2009 Income before income taxes, in EUR m Δ vs. 1Q2008 CB&S (1,604) 2,928 1,323 250 GTB 221 (29) 188 AWM (361) (173) 304 PBC (98) 206 679 CI 65 ((615)) (72) C&A 244 173 Note: Figures may not add up due to rounding differences Investor Relations 04/09 · 16
Slide 17: Sales & Trading revenues
Sales & Trading revenues Mark-downs Revenues In EUR bn 1.0 5.1 1.4 2.1 4.3 4.0 1.6 2.7 2.1 0.7 10 1.0 14 1.4 0.8 8)* (4.8) (4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 * Includes EUR 1.7 bn of mark-downs Note: 2007 based on structure as of 2008, 2008 onwards based on latest structure Investor Relati
Slide 18: Sales & Trading: Earnings power
Sales & Trading: Earnings power Revenues, in EUR bn Recalibrated business model High g loss absorption p capacity p y Illustrative 5% 1.1 6.1 4.0 38 3.8 <5% 1.0 Highly illiquid ~15% 4.0 Monolines 0.8 ~55% Medium / ~60% High Liquidity Most liquid ~40% ~25% flow First quarter 1Q2009 1Q2009 Mark-downs
Slide 19: Sales & Trading: Revenues in key 'flow' businesses
Sales & Trading: Revenues in key ‘flow’ flow businesses Indexed, 1Q2007 = 100 Foreign g Exchange g Money y Markets x2.0 x4.5 1Q2007 1Q2008 1Q2009 1Q2007 1Q2008 1Q2009 Rates x2.7 1Q2007 1Q2008 1Q2009 Note: 2007 based on structure as of 2008, 2008 onwards based on latest structure Investor Relations 0
Slide 20: Continued reduction of risk and costs
Continued reduction of risk and costs Maintaining de-levered balance sheet Continued management of legacy exposures Global Markets balance sheet (U (U.S. S GAAP ‘pro-forma’)* pro forma ) U S RMBS exposures U.S. exposures* Hedges Net exposure (43)% (56)% 1Q08 2Q08 3Q08 4Q08 1Q09 4Q07 1Q08 2Q08 3Q08 4
Slide 21: Sales & Trading debt and other products
Sales & Trading debt and other products Net revenues Trends vs. 4Q2008 / key features I EUR bn In b Mark-downs Mark downs FX/Rates/MM Net revenues Record and near-record client flows across all products 1.0 Favourable margin development RMBS/CRE 3.8 Limited write-downs given de-risking 1.4 2.1
Slide 22: Sales & Trading equity
Sales & Trading equity Net revenues Trends vs. 4Q2008 / key features I EUR m In E i Equity Derivatives Continued de-risking of legacy positions Recalibration continues 745 830 Cash Equities 275 Continued market share growth in North America Lower European revenues reflecting (142) lower mark
Slide 23: Origination & Advisory
Origination & Advisory Net revenues Trends vs. 4Q2008 / key features I EUR m In Advisory Advisory Revenues down in difficult markets Origination #5 globally and #1 in EMEA (announced M&A volume) 1,090 1 090 Continued strategic investments 152 Equity Origination #5 globally and #2 in EMEA (fe
Slide 24: Global Transaction Banking
Global Transaction Banking Income before income taxes Trends vs. 4Q2008 / key features I EUR m In Cash Mgmt. Fin. Inst. Continued leadership in Euro clearing Market share gains in U.S. Dollar clearing 283 281 291 Trust & Sec. Significant blue-chip mandates for Services American Depositary Rece
Slide 25: Brokerage and portfolio- / fund management revenues
PBC Brokerage and portfolio- / fund management revenues AWM Brokerage Portfolio- / fund management I EUR m In Δ vs. I EUR m In Δ vs. 1Q2008 1Q2008 ((136)) (186) 636 656 617 55 58 528 539 88 547 459 55 450 392 41 (14) 290 297 365 239 157 204 (86) 581 598 529 29 492 409 (172) 238 242 220 207 188 (50)
Slide 26: Asset and Wealth Management
Asset and Wealth Management Income before income taxes Trends vs. 4Q2008 / key features I EUR m In Asset Management Non-recurrence of 4Q2008 specific 242 items 188 However, further mark-downs on real estate assets in RREEF Retail revenues driven by lower equity market values (850) Continued
Slide 27: Private & Business Clients
Private & Business Clients Income before income taxes Trends vs. 4Q2008 / key features In EUR m Revenues Non-recurrence of specific items Slightly increased client activity Loan revenues benefiting from interest 328 rate environment 304 Provision for 262 credit losses Release in relation to
Slide 28: Agenda
Agenda 1 Group p results 2 Segment results 3 Key current issues Investor Relations 04/09 · 28
Slide 29: Cost reduction in businesses
Cost reduction in businesses Business Current status Global Markets: Substantial cost decrease driven by headcount reductions and management-driven cost reduction program CB&S Corporate Finance: Further headcount reductions; selective strategic investments; continued cost discipline Cost incre
Slide 30: Impact of Postbank transaction on Deutsche Bank
Impact of Postbank transaction on Deutsche Bank As of closing date 25 February 2009 Assets EUR 4.9 bn (Carrying value of acquired shares and mandatory exchangeable) Liabilities EUR 0.9 bn (Carrying value of put / call structure) RWA EUR 11.4 bn Tier 1 capital deduction EUR 1.1 bn Capital issuance EU
Slide 31: Monoline exposure related to U.S. residential mortgages
Monoline exposure related to U.S. U S residential mortgages In EUR bn Exposures Breakdown As of 31 March 2009 Subprime Super Other Alt-A FV prior to FV after Senior subprime Credit Monoline rating Notional credit credit provision* provision By notional Fair value prior to credit provision provision*
Slide 32: Other monoline exposure
Other monoline exposure In EUR bn Exposures Breakdown As of 31 March 2009 Corporate single CMBS Trust Preferred FV prior to FV after name / CDO and other CLOs Credit Monoline rating Notional credit provision provision* credit Student loans Other provision* provision* By notional 8% Fair value prior
Slide 33: Value of Level 3 assets
Value of Level 3 assets((1)) Asset sset c classes asses 1Q2009 Q 009 development de e op e t In EUR bn Key changes: 88 – Deconsolidated, matured and sold assets 2 80 6 – Termination of structured credits 14 72 – Net transfer from Level 3 to Level 2 10 49 45 17 15 31 D Dec 2008 31 Mar M 2009 Financ
Slide 34: Deutsche Bank's credit position in context of peers
Deutsche Bank Bank’s s credit position in context of peers In EUR bn Loan book Provision for credit losses As of 31 December 2008 FY2008 CIB / Other Private clients other 659 Private clients mortgages 23.2 491 509 527 18.5 478 14.6 358 271 231 160 6.7 5.8 2.0 2.7 05 0.5 1.1 CS UBS DB SOC BAR C BNP J
Slide 35: Intrinsic capital strength in peer context
Intrinsic capital strength in peer context Impact of state capital injections Tier 1 ratio as of 31 March 2009, in % Tier 1 ratio excluding state capital injections 16.4 16.0 14 1 14.1 11.3 10.2 10.1 10.0 12.9 13.4 9.2 7.4 (1) (2) MS GS CS JPM DB BoA UBS (1) Based on Basel I (2) Based on preliminary
Slide 36: 1Q2009 Highlights
1Q2009 Highlights Income before income taxes of EUR 1.8 1 8 bn, bn net income of EUR 1.2 1 2 bn Group Provision for credit losses of EUR 0.5 bn performance Diluted EPS of EUR 1.92 Pre Pre-tax tax return on equity* equity of 25% Capital p and Tier 1 ratio of 10.2%, above target balance To
Slide 37: Additional information
financial transparency. Additional information Analyst Call A Passion to Perform. Deutsche Bank
Slide 38: Number of shares for EPS calculation
Number of shares for EPS calculation In million Average At end of period 1Q FY 1Q 31 Mar 31 Dec 31 Mar 2008 2008 2009 2008 2008 2009 Common shares issued 530 542 585 531 571 621 Total shares in treasury (31) (25) (6) (30) (8) (3) Common shares outstanding 500 517 579 500 563 618 (1) Forward purchase
Slide 39: Group headcount
Group headcount Full-time equivalents, at period end 31 Mar 2009 vs. 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 31 Dec 2008 Net of 2008 2008 2008 2008 2009 Total de-/consoli- change dation CIB 15,567 15,555 15,494 14,988 14,445 (543) (540) PCAM 31 683 31,683 32 123 32,123 32 550 32,550 32 283 32,283 32 280
Slide 40: Invested assets report
Invested assets((1)) report In EUR bn Net new 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar money 2008 2008 2008 2008 2009 1Q2009 Asset and Wealth Management 698 700 700 628 627 (4) Asset Management 516 515 510 463 462 (3) Institutional 157 161 162 164 169 (0) Retail 208 205 187 147 142 (2) Alternatives 52 52
Slide 41: Regional invested assets – AM and PWM
Regional invested assets((1)) – AM and PWM In EUR bn 31 Mar 09 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar vs. 2008 2008 2008 2008 2009 31 Mar 08 Asset Management 516 515 510 463 462 (11)% G Germany 252 248 232 200 194 (23)% UK 16 16 19 18 17 5% Rest of Europe 36 34 34 32 32 (11)% Americas 187 192 202 196 20
Slide 42: Regional net new money – AM and PWM
Regional net new money – AM and PWM In EUR bn 1Q2008 2Q2008 3Q2008 4Q2008 FY2008 1Q2009 Asset Management 2 1 (11) (15) (22) (3) G Germany 2 (3) (7) (22) (29) (3) UK 1 1 3 (1) 4 (0) Rest of Europe (0) (1) 0 (1) (2) (0) Americas 0 4 (6) 9 7 1 Asia / Pacific ( ) (1) ( ) (0) ( ) (1) ( ) (1) ( ) (3) ( )
Slide 43: Corporate Investments
Corporate Investments Income before income taxes Key features I EUR m In Positive impact from mark-to-market gains of EUR 321 m from derivatives related to the acquisition of Postbank shares 679 Gains of EUR 60 m from the partial sale of Linde and gains from option to increase share in Hua Xia
Slide 44: Listed holdings
Listed holdings In EUR m Stake Market value (in %) 31 Mar 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2009 2008 2008 2008 2008 2009 Daimler AG 2.5% 1,567 1,027 943 692 509 Allianz SE - 867 584 - - - Linde AG 0.2% 571 570 418 250 16 Other - 141 122 135 129 117 Total market value 3,147 2,303 1,497 1,071 642 To
Slide 45: IFRS balance sheet: Development by category
IFRS balance sheet: Development by category Positive market values In EUR bn from derivatives 1,624 Trading securities Other trading assets 2 202 2,202 1 516 1,516 Reverse repos / 2,103 securities borrowed Loans des. at FV Other financial assets des. at FV through P&L 1,224 1,624 1,141 1,516 Financi
Slide 46: U.S. GAAP 'pro-forma' assets
U S GAAP ‘pro-forma’ U.S. pro-forma assets In EUR bn 1,318 , Positive market 107 values from derivatives 1,030 Trading securities 347 982 Financial assets at FV through P&L 128 121 Other trading assets 69 205 Reverse repos / 191 securities borrowed 185 42 20 28 Loans des. at FV 117 Other des. at FV
Slide 47: Loan book
Loan book xx IAS 39 impact on CIB loan book In EUR bn 32% 271 276 255 12 14 CI 217 38 209 25 34 145 151 154 CIB 107 112 109 108 108 PCAM 102 105 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2008 2009 Note: Total incl. CI / Other; figures may not add up due to rounding differences Investor Relations 04/09 · 47
Slide 48: Problem loans
Problem loans Problem loans not considered impaired under IFRS In EUR bn IFRS impaired loans(1) IFRS impaired loans coverage ratio(2) 5.7 46 4.6 3.9 4.5 3.2 3.3 37 3.7 3.2 2.7 2.5 62% 65% 53% 53% 50% 31 Mar 30 Jun 30 Sep 31 D Dec 31 Mar M 2008 2009 (1) IFRS impaired loans include loans which are ind
Slide 49: Funding position in 2009
Funding position in 2009 Modest additional capital market funding CDS spreads support funding cost advantage New issuance, in EUR bn Remaining 5-year senior CDS, 24 April 2009, in bps 565 54 45 367 286 243 21 189 189 167 169 16 145 15 94 2005 2006 2007 2008 Plan BNP CS JPM BAR UBS GS BoA MS Citi 200
Slide 50: VaR of CIB trading units
VaR of CIB trading units 99%, 1 day, in EUR m EUR 2.1 bn Sales & Trading revenues EUR 4.0 bn 190 170 150 130 110 90 70 ∅ 117.8 ∅ 112.5 ∅ 123.7 ∅ 133.8 ∅ 140.8 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 Investor Relations 04/09 · 50
Slide 51: IAS 39 reclassifications
IAS 39 reclassifications In EUR bn Pro-forma impact p from reclassifications FY2008 1Q2009(1) Total Net revenues 3.6 (4) 1.4 5.0 Provision for credit losses (0.3) (0.2) (0.5) Noninterest expenses - - - Income before income taxes 3.3 1.2 4.5 Net gains (losses) not recognized i d ini income i 18 1.8 0
Slide 52: 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 53: 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