Deutsche Bank Ag · XETR:DBK
Deutsche Bank — CA Cheuvreux Financials Conference 2009
25 slides from Deutsche Bank's conference presentation, Dec 1, 2009
Slide 1: Deutsche Bank
Deutsche Bank Dr. Christian Ricken COO of Deutsche Bank - Private & Business Clients CA Cheuvreux Financials Conference London, 1 December 2009
Slide 2: Agenda
Agenda 1 Deutsche Bank – Well prepared for a changing landscape 2 P i t &B Private Business i Cli Clients t – Weathering W th i the th storm t 3 Private & Business Clients – Regaining strength in a new era Investor Relations 12/09 · 2
Slide 3: Profitability at a glance
Profitability at a glance In EUR bn Income before income taxes Net income 1.8 1.3 1.3 1.4 1.2 1.1 0.6 0.6 (850) 04 0.4 (850) 0.1 ((0.3)) (0.1) (4.8) (6 2) (6.2) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 2008 2009 Investor Relations 12/09 · 3
Slide 4: Capital ratios have been strengthened
Capital ratios have been strengthened 11.7 11.7 11 0 11.0 10.3 10.2 Target: 10.1 ~10% 9.2 9.3 8.1 78 7.8 7.5 6.9 7.0 7.1 6.8 319 316 303 305 308 295 288 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: Core Tier 1 ratio = Tier 1 capital less hybrid Tier
Slide 5: Significant de-leveraging
Significant de-leveraging Balance sheet, in EUR bn 30 June 2008 30 Sep 2009 g ratio(2) Leverage 38 3 1,991 (31%) 8 32 1,338 1,660 Target: 28 25x (653) 25 25 915 24 (745) IFRS Netting(1) U.S. U S GAAP IFRS tti (1) U.S. Netting N U S GAAP J Jun S Dec Sep D M Mar J Jun S Sep ‘pro-forma’ ‘pro-forma’ 200
Slide 6: Liquidity and Funding: Quantity, quality and consistency
Liquidity and Funding: Quantity, Quantity quality and consistency In EUR bn Unsecured funding g Capital market funding progress New issuance 511 54 481 30% 16% 76 45 153 FY2009 plan completed + 47 21 405 16 358 15 30 Jun 2007 30 Sep 2009 2005 2006 2007 2008 YTD 2009 Short-term wholesale funding Capi
Slide 7: Well prepared to use opportunities: Example Sal. Oppenheim
Well prepared to use opportunities: Example Sal Sal. Oppenheim Private Banking assets under management as of 31 Dec 2008, in EUR bn Clear leadership in Germany … … and a top-4 position in Europe Rank Players Size Rank Players Size 1 44 (1) 47 (1) 141 232 1 927 2 45(2) 2 407 3 29 3 250 (1) 4 24 4 164
Slide 8: 2009 so far: A strong platform for the future
2009 so far: A strong platform for the future 30 Sep 30 Sep 2008 2009 Income before income taxes (YTD, in EUR bn) 0.5 4.4 Profitability N t income Net i (YTD (YTD, iin EUR b bn)) 09 0.9 36 3.6 Pre-tax RoE (YTD, target definition)(1) (3)% 18% Tier 1 capital ratio 10.3% 11.7% Capital strength Core Tie
Slide 9: Agenda
Agenda 1 Deutsche Bank – Well prepared for a changing landscape 2 P i t &B Private Business i Cli Clients t – Weathering W th i the th storm t 3 Private & Business Clients - Regaining strength in a new era Investor Relations 12/09 · 9
Slide 10: PBC: An international franchise
PBC: An international franchise As of 30 September 2009 Branches Revenues(1), in EUR m FTE ~16,000 2,991 Private & Business Clients 930 23% IBIT contribution to Group (EUR 4 bn from 2005 – 2008) 1 200 ~1,200 29 EUR ~6 bn total revenues p.a. 16 EUR 320 bn client business ~8,000 o u e(2) volume
Slide 11: Financial crisis has hit PBC's business in 3 dimensions simultaneously
Financial crisis has hit PBC PBC's s business in 3 dimensions simultaneously … Average share of PBC revenues 2007 – 08 Investment products Credit products* Significantly reduced Economic recession client activity Lower L new production d ti Strong margin pressure 31% 33% 35% Deposits and pay
Slide 12: … translating into significant revenue and risk implications
… translating into significant revenue and risk implications PBC revenues, in EUR m Investment products Credit products* products Deposits p and payments p y LLP (14)% 427 438 (31)% 424 403 400 (4)% 385 375 377 366 338 325 253 216 169 144 125 +28% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2008 2008 *
Slide 13: A comprehensive set of revenue measures was established
A comprehensive set of revenue measures was established resulting in strong revenue pick-up Initiatives PBC revenues In EUR m Product innovations (e.g. capital guaranteed, less risky) 75 Shift from f passive i brokerage b k to t DPM 1 389 1,389 30 Strong margin expansion for credit and 18 (45)
Slide 14: Several measures were introduced to mitigate increasing LLP
Several measures were introduced to mitigate increasing LLP PBC p provision for loan losses Introduced countermeasures In EUR m Dedicated organisation to support strategy 653 Switch of operational management (7)% for Collections and Recoveries New Strategy from Credit Risk Mgmt. to PBC 224 217 501
Slide 15: Tactical cost management with tangible results
Tactical cost management with tangible results … First tangible g results Cost p program g in detail PBC non-compensation direct costs*, in EUR m Strict FTE management in head offices Cut on non sales-relevant trainings (4)% Germany Cut C t on marketing k ti spendsd Significant reduction of
Slide 16: Strategic investments will deliver savings of more than EUR 200 m
… while strategic investments will deliver savings of more than EUR 200 m Severance charges for Net FTE reduction Cost savings strategic efficiency measures Timing Severances(1) Measure Target 2012 Completed Target 2012 in EUR m in EUR m 4Q08 90 Middle office Italy 300 35 Berliner Bank pre- ret
Slide 17: PBC with ongoing positive profit contribution
PBC with ongoing positive profit contribution PBC income before income taxes In EUR m Severance* S PBC has been hit by the 4 5 financial crisis especially in 6 4Q2008 15 Recovery of IBIT before 328 severances in 2009 vs. 4Q2008 304 12 262 150 106 206 Efficiency programme launched 149 resulting
Slide 18: Agenda
Agenda 1 Deutsche Bank – Well prepared for a changing landscape 2 P i t &B Private Business i Cli Clients t – Weathering W th i the th storm t 3 Private & Business Clients - Regaining strength in a new era Investor Relations 12/09 · 18
Slide 19: Banking industry faces changing market trends
Banking industry faces changing market trends Clients have lost trust in financial institutions Peak of insolvencies still to come and will more carefully f select banks in the Solid credit portfolio management will be future key for success Economic cycle Credit cycle Future market trends C
Slide 20: Expected market rebound and initiated measures will boost PBC's bottom line
Expected market rebound and initiated measures will boost PBC’s bottom line Investment Products Credit Efficiency Revenue margin, Investment Provisioning ratio*, IBIT impact from efficiency products, in bps in bps initiatives, in EUR m ~210 140 90 120 2008 2009 2010 2011 2012 70 100 (~90) 80 50 (~23
Slide 21: Successful integration of norisbank and Berliner Bank start to pay off
Successful integration of norisbank and Berliner Bank start to pay off High – significant High - strong positioning in Strategic fit improvement of market share consumer banking in Germany’s capital Integration started started, to be Integration Successful integration in 2007 finalized in 20
Slide 22: Deutsche Bank and Postbank – A value creating cooperation
Deutsche Bank and Postbank – A value creating cooperation … Successful supplement of Postbank’s product portfolio by DB products and Asset Management solutions Strong sales figures especially in investment products Product Sales (EUR ~330 330 m sale volume in one structured product) and insuranc
Slide 23: Potential for PBC to become a dominant player in Germany
… with potential for PBC to become a dominant player in Germany and to close the gap to international competitors German retail p peers Domestic revenues of European p retail p players y IBIT, FY 2008, in EUR bn Net revenues, FY 2008, in EUR bn German Saving g 22 2.2 Intesa SanPaolo 13.2 3 Banks San
Slide 24: Weathering the storm: Strength in a new era
Weathering the storm: Strength in a new era Significant profit increase with already implemented measures Option for undisputable leadership in Germany Highly profitable European franchise Proven track record of successful integrations Creation of standardized highly efficient private clie
Slide 25: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. them These statements are based on plans, estimates an
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