Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Non-Deal Roadshow (September 2010)
51 slides from Deutsche Bank's roadshow presentation, Sep 8, 2010
Slide 1: Deutsche Bank Investor Roadshow
Deutsche Bank Deutsche Bank Stefan Krause Chief C e Financial a ca O Officer ce Deutsche Bank 8 September 2010 Investor Roadshow financial transparency. Investor Relations Stefan Krause, CFO Amsterdam, 8 September 2010
Slide 2: Agenda
Agenda 1 Solid group performance and capital position 2 Segment results 3 Well placed for Phase 4 Deutsche Bank 8 September 2010 financial transparency. 2 Investor Relations Stefan Krause, CFO
Slide 3: Second quarter 2010: Highlights
Second quarter 2010: Highlights 2Q2010 2Q2009 Income before income taxes (in EUR bn) 15 1.5 13 1.3 Net income (in EUR bn) 1.2 1.1 Profitability Pre-tax RoE (target definition)(1) 13% 16% Diluted EPS (in EUR) 1.75 1.64 30 Jun 2010 31 Mar 2010 Tier 1 capital ratio 11.3% 11.2% Capital Core Tier 1 capit
Slide 4: Net revenues
Net revenues I EUR bn In b Charges related to Ocala Funding LLC(1) Specific property impairment 0.5 0.3 Mark-downs 1.0 0.3 0.2 0.5 04 0.4 1.0 0.3 0.1 0.2 16.2 15.2 90 9.0 7.2 7.9 7.2 (2) 7.2 (3) 5.5 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2009 2010 2009 2010 Note: Figures may not add up due to rounding differences
Slide 5: Provision for credit losses at lower level
Provision for credit losses at lower level I EUR m In Related to IAS 39 reclassified assets 1,526 1,000 526 544 560 506 262 243 800 492 308 329 249 352 159 193 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2009 2010 2009 2010 Thereof: CIB 357 779 323 357 90 77 1,136 167 169 221 214 201 174 175 391 349 Thereof: PCAM Note:
Slide 6: Noninterest expenses impacted by acquisitions
Noninterest expenses impacted by acquisitions I EUR bn In b In EUR m Compensation and benefits Compensation and benefits PWM: Sal. Oppenheim / BHF 121 General and administrative expenses p GTB: ABN AMRO 33 Other non-comp expenses(1) UK payroll tax 56 General and admin. expenses PWM: Sal. Opp
Slide 7: Sound capital ratios and risk-weighted assets
Sound capital ratios and risk-weighted assets (117) bps(1) (35) bps(2) 12.6 11.7 11.3 11.3 11 0 11.0 11.2 10.2 Target: ≥10% 8.7 78 7.8 81 8.1 75 7.5 7.1 7.5 7.5 316 295 288 292 303 273 17 8 1Q 2Q 3Q 4Q 1Q 2Q 2009 2010 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Sal. Oppenheim Group imp
Slide 8: Tier 1 capital and RWA development
Tier 1 capital and RWA development I EUR bn In b Tier 1 capital RWA 11.4 16 1.6 03 0.3 303 5 303.5 7.5 (4.7) (0.1) 0.2 (3.5) 34.3 292.5 1.2 (1.1) (0.3) 32 8 32.8 31 Mar 2Q10 FX Dividend Capital Equity Other 30 Jun 31 Mar ABN FX Credit Market Opera- 30 Jun 2010 Net effects accruals de- based 2010 201
Slide 9: Strong funding and liquidity profile
Strong funding and liquidity profile I EUR bn In b Funding sources overview Liquidity position 31 Mar 2010 (Total: EUR 856 bn) — Increase of stable funding from 30 Jun 2010 (Total: EUR 911 bn) 211 207 organic growth and acquisitions 3 178 166 167 173 1 — Discretionary wholesale funding reflects incr
Slide 10: Timely and cost-effective funding through the crisis
Timely and cost-effective funding through the crisis ~ EUR 135 bn b raised i d iin capital it l markets k t since i 2007 Senior benchmark issuance: Deutsche Bank vs. peers(1) Bps over Euribor / Libor 350 350 DB 5yr EUR new issue spread DB 5yr senior CDS 300 European Peer 300 US Peer European Peer 25
Slide 11: Agenda
Agenda 1 Solid group performance and capital position 2 Segment results 3 Well placed for Phase 4 Deutsche Bank 8 September 2010 financial transparency. 11 Investor Relations Stefan Krause, CFO
Slide 12: Segment overview
Segment overview I Income before b f income i taxes, t i EUR m in 2Q2010 2Q2009 Acquisition impact 779 CB&S 823 EUR 215 m(1) 478 GTB 187 45 EUR (89) m(2) AWM (85) 233 PBC 55 (64) CI 377 53 C&A (41) (1) Includes EUR 208 m gain representing provisional negative goodwill from the commercial banking act
Slide 13: Sales & Trading revenues
Sales & Trading revenues I EUR bn In b Charges related to Ocala Funding LLC Mark-downs Net revenues 1.1 0.3 0.3 03 0.3 1.0 0.1 0.4 0.3 7.3 7.5 4.7 01 0.1 4.1 0.2 3.3 3.0 (1) 2.8 1.9 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2009 2010 2009 2010 Note: Prior periods have been adjusted due to a transfer between loan prod
Slide 14: Global Transaction Banking benefits from ABN Amro transaction
Global Transaction Banking benefits from ABN Amro t transaction ti Income before income taxes Key features In EUR m General — Record fee earnings offsetting impact of low interest rate environment 478 — First time consolidation of the commercial ABN AMRO Netherlands banking activity of ABN AMRO in t
Slide 15: Solid performance in Asset Management
Solid performance in Asset Management Income before income taxes Key features In EUR m — Solid performance despite volatile markets Reversal of impairment DWS Scudder — Higher performance fees vs. 1Q2010 in DWS Europe driven by securities lending 348 and equities business 94 — Net new money outflows
Slide 16: Private Wealth Management
Private Wealth Management Income before income taxes Key features In EUR m xx IBIT ex Sal. Sal Oppenheim / BHF — Increased revenues across all regions 28 79 — Revenues benefited from good performance in product mix initiatives, lending and cooperation with our 39 Investment Bank Sal. Oppenheim / BHF
Slide 17: PBC: Best quarter since the peak of the crisis
PBC: Best quarter since the peak of the crisis Income before income taxes Key features In EUR m Revenues: — Deposits: Positive margin development leads to Severance(1) record quarterly result — Credit Products: Solid margins and stable volumes underline p positive revenue trend — Investment & Insura
Slide 18: Agenda
Agenda 1 Solid group performance and capital position 2 Segment results 3 Well placed for Phase 4 Deutsche Bank 8 September 2010 financial transparency. 18 Investor Relations Stefan Krause, CFO
Slide 19: Well placed to deliver on Phase 4
Well placed to deliver on Phase 4 Management Agenda Phase 4 2009 – 2011 Increase CIB profitability with renewed Focus on core PCAM businesses risk and balance sheet discipline and home market leadership Focus on Asia as a key driver Reinvigorate our of revenue growth performance culture Deutsche Ban
Slide 20: Phase 4: Financial potential 2011
Phase 4: Financial potential Phase 4 potential 2011 Revenue growth p.a. ~ 8% Perfformance Income before income taxes, in EUR bn(1) ~ 10.0 Return on Equity(2) 25% over-the-cycle Cost / income ratio ~ 65% Consttraints Tier 1 ratio ≥10% Leverage(3) ≤25x ( ) (1) Before Corporate p Investments and Consol
Slide 21: Performance vs. targets
Performance vs. targets g Income before income taxes, in EUR bn Phase 4 1H2010 potential reported 2011 Acquisition impact Corporate Banking & 3.4 6.3 Securities Global Transaction 1H2010 excluding ABN AMRO Netherlands 0.6 1.3 Banking acquisition: EUR 0.4 bn Asset and Wealth 1H2010 excluding Sal. Opp
Slide 22: Additional information
Deutsche Bank Additional information
Slide 23: Specific items
Specific items I EUR m In Noninterest expenses Business Revenues Total Comp & benefits Gen. & Admin Other non-comp ABN AMRO (negative goodwill) GTB 208 - - - 208 FV gains / (losses) on own debt CB&S / C&A 101 (1) - - - 101 Specific positive effects 309 - - - 309 Ocala Funding LLC CB&S (270) - - - (2
Slide 24: Loan book
Loan book I EUR bn In b xx IAS S 39 impact on C CIB loan book 9% 292 276 268 270 CI 263 261 10 14 13 13 13 11 35 38 37 35 34 34 (2) 154 CIB 154 144 137 133 136 (1) 108 110 113 115 123 128 (1) PCAM 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2009 2010 Germany excl. excl Financial Institutions: 96 96 96
Slide 25: Composition of loan book and provisions by category
Composition of loan book and provisions by category I EUR bn, In b as off 30 JJun 2010 xx 2Q2010 provision for credit losses(1), in EUR m IAS 39 reclassified assets 243 104 101 38 – Low loan 292 to value 35 – Highly – Substantially diversified hedged – Short term – Mostly – Substantially – Credit C
Slide 26: Exposures to central and local governments
Exposures to central and local governments I EUR m, as off 31 March In M h 2010 Gross exposures Gross exposures of which of which of which of which banking trading Net banking trading Net Total book book exposures Total book book exposures Austria 1,123 51 1,072 437 Latvia 117 0 117 76 Belgium 783 4
Slide 27: Pro-forma impact of IAS 39 reclassifications
Pro-forma impact of IAS 39 reclassifications I EUR m In Total Total FY2008 - 2Q2009 - FY08- 1Q2010 2Q2010 FY08- 1Q2009 4Q2009 FY09 2Q10 Incremental reported p income(1) (162) (1,188) (1,350) (128) (83) (1,561) Fair value P&L impact of reclassified 4,653 (231) 4,422 (279) 0 4,144 assets Net pro-forma
Slide 28: PBC loan book: Delinquency ratio
PBC loan book: Delinquency ratio At period i d end, d 90≤ ≤269 days 90≤x≤269 d pastt due d (1)(2) Small corporates Mortgage g g Consumer Mortgage loans represent ~70% of PBC loan book 3.39% 3.31% 2.76% 2 2.71% 71% 2 2.65% 65% 2.49% 2 58% 2.58% 2.52% 2.34% 2.40% 2.15% 2.21% 1.90% 1.95% 1.99% 2.01% 1.
Slide 29: Impaired loans
Impaired loans I EUR bn In b xx IAS 39 impact – IFRS impaired loans 7.2 7.4 7.4 4 6.7 6.8 45 4.5 1.1 2.6 2.6 2.8 2.9 2.8 50% 46% 47% 46% 47% 48% 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2009 2010 IFRS impaired loans(1) IFRS impaired loans coverage ratio(2) (1) IFRS impaired loans include loans whic
Slide 30: Monoline update
Monoline update Reduction since 1Q2009 peak Exposure adequately reserved In EUR bn(1) In EUR bn, as of 30 Jun 2010 Fair value after CVA CVA Fair value after CVA CVA 9.1 (38)% 7.6 Net exposure to non-investment grade: 5.9 5.6 EUR 1.1 bn 5.2 5.1 6.8 5.5 47 4.7 3.5 4.0 3.7 4.0 3.0 1.1 0.9 07 0.7 04 0.4
Slide 31: Value of Level 3 assets
Value of Level 3 assets(1) Asset classes 2Q2010 development In EUR bn — Key changes: — Increase of EUR 2 bn mainly due to changes in the fair value of derivative 58 56 58 instruments due to the widening of 3 3 3 3 43 credit spreads and foreign exchange 11 6 6 translation effect 25 26 29 Financial as
Slide 32: Deutsche Bank is well-prepared for a changing environment
Deutsche Bank is well-prepared for a changing environment i t — Deutsche Bank remains focused on capital and balance sheet discipline — ‘Excess capital’ above 10% Tier 1 target now at EUR 4 bn — Confidence in capital formation capabilities through successful recalibration of business model in invest
Slide 33: Dodd-Frank Wall Street Reform and Consumer Protection Act
Dodd-Frank Wall Street Reform and Consumer Protection Act P li i Preliminary expectations t ti pending di regulatory l t rulemaking l ki iin th the U U.S. S Initial views — Rules for Governments / Regulators — Increased oversight by new agencies with broad powers Preparation for full compliance when
Slide 34: Capital position of major U.S. entities
Capital position of major U.S. entities Cli t f i regulated Client-facing l t dUU.S. S subsidiaries b idi i hi highly hl capitalized it li d Update on Taunus — Scope of German regulators BaFin and Bundesbank Deutsche Bank Group(1) Total assets: EUR 1,926 bn Tier 1 ratio: 11.3% Tier 1 capital: EUR 34
Slide 35: Bank levies
Bank levies Deutsche Bank´s Bank s main hubs Other DB Locations United Kingdom Germany United States Sweden, Hungary, Proposal UK Bank Levy Draft Bill Restructuring Act "Financial Crisis Responsibility Fee" France, Austria, as a PROXY Others Expected 1 January 2011 31 December 2010 (first applicatio
Slide 36: Capital authorizations
Capital authorizations AGM Mio shares Mio. approval Status Maturity Authorized capital Rights issue or ex-rights issue(1) 12 2007 registered 30 April 2012 Rights issue or ex-rights ex rights issue(1) 50 2009 registered 30 April 2014 Rights issue or contribution-in-kind 55 2008 registered 30 April 20
Slide 37: Group headcount
Group headcount F ll ti Full-time equivalents, i l t att period i d end d 30 Jun 2010 vs. 31 M Mar 30 JJun 30 S Sep 31 D Dec 31 M Mar 30 JJun 31 Mar 2010 Net of 2009 2009 2009 2009 2010 2010 Total de-/consoli- change dation CIB 14,367 14,127 14,312 14,279 14,467 15,852 1,385 191 PCAM 32,599 31,853 3
Slide 38: Number of shares for EPS calculation
Number of shares for EPS calculation I million In illi Average At end of period 2Q 1Q 2Q 30 Jun 31 Mar 30 Jun 2009 2010 2010 2009 2010 2010 Common shares issued 621 621 621 621 621 621 Total shares in treasury (3) (3) (2) (3) (2) (2) Common shares outstanding 618 618 619 618 619 619 Vested share awa
Slide 39: Invested assets report
Invested assets(1) report I EUR bn In b Net new 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun money 2009 2009 2009 2009 2010 2010 2Q2010 Asset and Wealth Management 627 632 657 686 853 870 (15) Asset Management 462 460 476 496 537 551 (12) Institutional 169 160 165 173 180 177 (11) Retail 142 153 162 16
Slide 40: Regional invested assets – AM and PWM
Regional invested assets(1) – AM and PWM I EUR bn In b 30 Jun 10 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun vs. 2009 2009 2009 2009 2010 2010 30 JJun 09 Asset Management 462 460 476 496 537 551 20 % Germany 194 200 211 214 239 239 19 % UK 17 18 17 21 21 22 26 % Rest of Europe 32 28 29 29 32 33 16 % A
Slide 41: Regional net new money – AM and PWM
Regional net new money – AM and PWM I EUR bn In b 1Q2009 Q 009 2Q2009 Q 009 3Q 3Q2009 009 4Q2009 Q 009 FY2009 009 1Q2010 Q 0 0 2Q2010 Q 0 0 Asset Management (3) (3) 5 9 9 4 (12) Germany (3) (2) 2 1 (2) 4 0 UK (0) 1 0 4 5 (0) 1 Rest of Europe (0) (1) (1) (0) (1) 1 (1) Americas 1 (2) 4 5 7 0 (11) Asia
Slide 42: Corporate Investments
Corporate Investments Income before income taxes Key features In EUR m — Net revenues of EUR 44 m include EUR 116 m related to Deutsche Postbank AG and EUR 39 m from the sale of investments 377 — Partly offset by an impairment charge of EUR 124 m on The Cosmopolitan Resort and Casino property 117 65
Slide 43: Asset Management: P&L at a glance
Asset Management: P&L at a glance I EUR m In 2Q2010 vs. 2Q2010 vs. 2Q2010 2Q2009 1Q2010 2Q2009 1Q2010 Net revenues 414 268 390 54% 6% Provision for credit losses (0) (0) (0) n.m. n.m. Noninterest expenses (359) (381) (360) (6)% (0)% I Income before b f income i taxes t 55 (112) 30 n.m. 81% CIR 87% 1
Slide 44: Private Wealth Management: P&L at a glance
Private Wealth Management: P&L at a glance I EUR m In 2Q2010 vs. 2Q2010 vs. 2Q2010 2Q2009 1Q2010 2Q2009 1Q2010 Net revenues 555 349 509 59% 9% Provision for credit losses (4) (4) (4) 2% (13)% Noninterest expenses (562) (319) (522) 76% 8% I Income before b f income i taxes t (10) 27 (18) n.m. (42)% S
Slide 45: Complexity reduction program on track to achieve EUR 1 bn efficiency gains
Complexity reduction program on track to achieve EUR 1 bn efficiency ffi i gains i b by end d off 2011 ((exit i run-rate)) P Progress off idea id generation ti K features Key f t In EUR bn — EUR ~700 m efficiency gains already 2.5 2 5 committed — Ca. 75 workshops held in all 2.0 business and infrast
Slide 46: Entire organization involved in process of idea generation
The entire organization across all regions is involved in the process off id idea generation i RM PWM CFO 10 GTB 13 130 2 AM 2 CRO Wider team GT 25 members: 20 CF Idea genera- 63 CF 10 tion/initiative 7 development workshops RM GM 20 GTB GBS 3 10 13 Wider GLS GBS CRO team 4 10 5 members: GM 20 5 PBC
Slide 47: Examples of committed initiatives within complexity reduction program
Examples of committed initiatives within complexity reduction d i program In EUR m Efficiency gains exit Lever Initiative examples rate 2011 — Finalize integration of recent acquisitions into DB operating model, processes, and systems — Optimize p g global operations p footprint p by y consolidating
Slide 48: VaR of CIB trading units
VaR of CIB trading units 99% 1 day, 99%, d in i EUR m VaR of CIB trading units Constant VaR of CIB trading units(1) EUR 3.3 bn Sales & Trading revenues EUR 2.8 bn 180 160 140 120 100 80 60 40 20 145 114 108 116 102 44 35 36 47 49 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 (1) Constant Va
Slide 49: U.S. GAAP pro-forma assets
U.S. GAAP pro-forma assets I EUR bn In b 1,043 9 8 978 78 Derivatives post-netting post netting Positive market 68 Derivatives post-netting values from derivatives 242 Trading securities 233 273 Trading assets 263 Trading assets Financial assets 31 at FV through P&L Other trading assets 30 Reverse r
Slide 50: Balance sheet leverage ratio (target definition)
Balance sheet leverage ratio (target definition) I EUR bn In b 2009 2010 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun Total assets ((IFRS)) 2,103 1,733 1,660 1,501 1,670 1,926 Adjust derivatives according to U.S. GAAP netting rules (1,019) (681) (617) (533) (559) (735) Adjust pending settlements accord
Slide 51: 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