Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2011 Earnings Presentation
44 slides from Deutsche Bank's earnings presentation, Apr 28, 2011
Slide 1: 1Q2011 Results
Deutsche Bank 1Q2011 Results Stefan Krause Chief Financial Officer Analyst Call, 28 April 2011 Deutsche Bank 1Q2011 results financial transparency. Investor Relations Stefan Krause, CFO
Slide 2: Key take-aways
Key take-aways — Strong capital generation and increasing risk efficiency result in higher capital ratios — Solid CIB performance across all major business lines demonstrates strength of global franchise, results of focused investments and synergies from CIB integration — PCAM with best quarter ever
Slide 3: Agenda
Agenda 1 Group results 2 Segment results 3 Key current topics Deutsche Bank 1Q2011 results financial transparency. 3 Investor Relations Stefan Krause, CFO
Slide 4: Highlights
Highlights 1Q2011 1Q2010 Income before income taxes (in EUR bn) 3.0 2.8 Profita- Net income (in EUR bn) 2.1 1.8 bility Pre-tax RoE (target definition)(1) 22% 30% Diluted EPS (in EUR) 2.13 2.43 31 Mar 2011 31 Dec 2010 Core Tier 1 capital ratio 9.6% 8.7% Capital Tier 1 capital ratio 13.4% 12.3% Tier 1
Slide 5: Profitability
Profitability Income before income taxes Net income In EUR bn In EUR bn 2.8 3.0 (2) 1.8 2.1 1.5 1.3 1.2 1.1(2) 0.7 0.6 (1.0) (1.2) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2010 2011 Pre-tax return on equity(1), in % Effective tax rate, in % 30 15 (10)/13(2) 6 24 36 23 (16)/13(2) 14 29 FY10: 10 /15(2)
Slide 6: Noninterest expenses
Noninterest expenses In EUR bn Acquisitions:(2) Compensation and benefits In EUR m 4Q2010 1Q2011 General and administrative expenses Other noninterest expenses(1) Compensation and benefits 303 514 740 1,064 General and admin. expenses 437 550 6.3 7.1 5.9 5.7 5.4 3.1 4.3 3.6 3.0 3.0 2.2 2.5 3.1 2.7 2
Slide 7: Cost development 1Q2011 vs. 1Q2010
Cost development 1Q2011 vs. 1Q2010 Total noninterest expenses, incremental changes, in EUR m 1,137 56 103 369 877 71 (74) (17) (100) (149) 7,080 5,944 1Q2010 Special Acqui- Cosmo Policy- CRP CRP Career Other Other 1Q2011 items(1) sitions holder CtA savings retirement comp. and benefits on Feb benefi
Slide 8: Capital ratios and risk-weighted assets
Capital ratios and risk-weighted assets 13.4 13.4 12.3 Tier 1 ratio, in % 11.2 11.3 11.5 9.6 9.6 8.7 Core Tier 1 ratio, in % 7.5 7.5 7.6 346 328 292 303 277 RWA, in EUR bn 1Q 2Q 3Q 4Q 1Q 2010 2011 Note: Tier 1 ratio = Tier 1 capital / RWA; Core Tier 1 ratio = (Tier 1 capital - hybrid Tier 1 capital)
Slide 9: Core Tier 1 capital and RWA development
Core Tier 1 capital and RWA development In EUR bn Core Tier 1 capital RWA In EUR bn In EUR bn 346.2 2.1 0.1 31.6 (0.2) (0.4) (7.2) 30.0 0.9 327.9 (11.6) (0.4) 31 Dec Net Dividend FX effect Others 31 Mar 31 Dec FX effect Credit risk Market risk Operational 31 Mar 2010 income(1) accrual 2011 2010 risk
Slide 10: Update on funding activities
Update on funding activities Funding cost development 1Q2011 observations In bps European Sovereign CDS iTraxx Senior Financials — Improved market conditions during 1Q2011 240 DB 5yr Senior CDS although many macro challenges remain DB issuance spread DB issuance activity — 2011 funding plan of EUR 2
Slide 11: Agenda
Agenda 1 Group results 2 Segment results 3 Key current topics Deutsche Bank 1Q2011 results financial transparency. 11 Investor Relations Stefan Krause, CFO
Slide 12: Segment overview
Segment overview Income before income taxes, in EUR m 1Q2011 1Q2010 2,304 CB&S 2,589 257 GTB 119 190 AWM (5) 788 EUR 236 m net HuaXia one-off impact PBC 189 (165) CI 65 (353) C&A (165) Deutsche Bank 1Q2011 results financial transparency. 12 Investor Relations Stefan Krause, CFO
Slide 13: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m In EUR m 1Q11 1Q11 vs. 1Q11 4Q10 1Q10 vs. 1Q10 4Q10 2,589 Revenues 5,831 3,697 5,992 (3)% 58% (1) 2,304 Provisions (12) (75) (93) (87)% (84)% Noninterest exp. (3,504) (2,997) (3,295) 6% 17% IBIT 2,304 625 2,589 (11)% n.m
Slide 14: Sales & Trading debt and other products
Sales & Trading debt and other products Net revenues Key features In EUR m Overall — Strong performance with improvements in RMBS, Commodities offsetting declines in flow products due to a difficult market environment 3,802 3,650 FX / Money Markets / Rates — Lower revenues yoy driven by subdued clie
Slide 15: Sales & Trading equity
Sales & Trading equity Net revenues Key features In EUR m Overall — Solid revenues from all businesses and no major losses across products — Results included a gain on sale from the sale in Russian 944 943 stock exchange RTS, however, this was partially offset by 872 other one-off losses during the
Slide 16: Origination & Advisory
Origination & Advisory Net revenues Key features In EUR m Overall — Continued momentum, ranked No. 4 globally: Best ever Advisory start to the year, benefiting from synergies across Origination investment bank 809 — Ranked No. 1 EMEA, No. 2 in APAC and top-5 in M&A, ECM, HY and Investment Grade 717
Slide 17: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m In EUR m 1Q11 1Q11 1Q11 4Q10 1Q10 vs. vs. Negative goodwill(1) 1Q10 4Q10 4Q2010 efficiency measures(2) Revenues 865 881 636 36% (2)% 478 Provisions (3) (21) (68) 4 n.m. (69)% Noninterest exp. (587) (719) (520) 13% (18)% IBIT
Slide 18: Asset Management
Asset Management Income before income taxes Key features 1Q11 1Q11 In EUR m In EUR m 1Q11 4Q10 1Q10 vs. vs. 1Q10 4Q10 96 Revenues 441 459 393 12% (4)% 84 Provisions (1) (0) (1) (0) n.m. n.m. 75 Noninterest exp. (366) (362) (362) 1% 1% IBIT 75 96 32 136% (22)% (2) 56 Invested assets 529 550 537 (2)%
Slide 19: Private Wealth Management
Private Wealth Management Income before income taxes Key features In EUR m In EUR m 1Q11 1Q11 1Q11 4Q10 1Q10 vs. vs. 1Q10 4Q10 Revenues 561 551 436 29% 2% (1) Provisions (19) (13) (3) n.m. 49% 116 Noninterest exp. (426) (575) (469) (9)% (26)% IBIT 116 (37) (37) n.m. n.m. (2) Invested assets 271 275
Slide 20: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m In EUR m 1Q11 1Q11 788 1Q11 4Q10 1Q10 vs. vs. Net HuaXia one-off impact 1Q10 4Q10 Net Postbank contribution(1) Revenues 3,072 1,824 1,412 118% 68% 236 Provisions(2) (320) (240) (170) 88% 33% Noninterest exp. (1,888) (1,354)
Slide 21: Agenda
Agenda 1 Group results 2 Segment results 3 Key current topics Deutsche Bank 1Q2011 results financial transparency. 21 Investor Relations Stefan Krause, CFO
Slide 22: Provision for credit losses
Provision for credit losses In EUR m Related to IAS 39 reclassified assets Postbank releases shown as interest income at DB Group / PBC level 406 (1) 362 373 46 262 243 129 117 22 103 50 (1) 360 233 234 256(3) 159 193 1Q 2Q 3Q 4Q 1Q Thereof: CIB 2010 2011 90 77 179 143 33 173 174 185 254 (2) 338 (2)
Slide 23: Impaired loans
Impaired loans In EUR bn xx Relating to IAS 39 loans 7.4 7.4 7.4 6.7 6.3 2.9 2.8 2.7 1.2 1.1 53% 50% 47% 48% 49% 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2010 2011 IFRS impaired loans(1) IFRS impaired loans coverage ratio(2) (1) IFRS impaired loans include loans which are individually impaired under IFRS,
Slide 24: Corporate Investments
Corporate Investments Income before income taxes 1Q2011 key features In EUR m — EUR 89 m of one-off charges: — Equity pick-up loss of Actavis, transferred from CB&S as of 1 Jan 65 2011, impacted by a provision related to a litigation; however, ongoing positive contribution expected (85) (165) — Sale
Slide 25: C&A: Impacted by valuation differences reversing over time
C&A: Impacted by valuation differences reversing over time Illustrative example of timing difference Key points Deposit product with interest payment of 10/period(1) — C&A reflects the reversal of effects from different Segment C&A LTD accounting methods between management reporting EUR C&A Group an
Slide 26: Update on 2011 targets
Update on 2011 targets Income before income taxes, in EUR bn Phase 4 potential 1Q2010 1Q2011 2011 Key features / Prospects Corporate Banking & — Actavis with expected positive contribution 2.6 2.3 6.4 transferred to Corporate Investments Securities Global Transaction 0.1 0.3 1.0 — Potential positive
Slide 27: Summary and Outlook
Summary and Outlook — Strong results validate our strategy laid out in Management Agenda Phase 4 – EUR 10 bn pre-tax profit target for our business divisions in sight — Regulatory and fiscal challenges will have meaningful impact on international competitiveness but will also provide opportunities —
Slide 28: Additional information
Deutsche Bank Additional information
Slide 29: Specific significant items 1Q2011
Specific significant items 1Q2011 In EUR m Noninterest expenses Business Revenues Provisions(1) Compensation General and Other Noncontrolling IBIT administrative noninterest Total & benefits interest expenses expenses(2) Hua Xia one-off impact PBC 263 - (26) - - (26) - 236 Credit crisis related mark
Slide 30: Amortization of Feb 2011 deferred compensation
Amortization of Feb 2011 deferred compensation In EUR m Career retirement effect Key features 1Q2011 1Q2010 — EUR 369 m acceleration of 2,141 equity compensation CB&S 291 230 369 expenses for employees 1Q2011 amortization GTB 19 20 eligible for career retirement in 201 AM 33 29 February 2011, which
Slide 31: Loan book
Loan book In EUR bn xx IAS 39 impact on CIB loan book 34 35 32 27 25 411 398 8 CI 11 270 292 283 147 CIB 135 13 12 11 126 PCAM ex 136 154 147 126 Postbank 121 126 125 129 125 Postbank 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2010 2011 Germany excl. Financial Institutions and Public Sector: 90 95 94 175(1)
Slide 32: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR bn, as of 31 Mar 2011 xx DB 1Q2011 provision for credit losses ex. PB(1), in EUR m xx Postbank (PB) 1Q2011 provision for credit losses(1), in EUR m 167 IAS 39 reclassified assets Postbank 373 129 36 2 206 398 25 – Highly – Substan- – Partial
Slide 33: IAS 39 reclassification
IAS 39 reclassification Fair value minus carrying value 1Q2011 developments In EUR m — EUR 2.2 bn reduction in carrying value during Sales & Trading - Debt 1Q2011 driven by redeemed/matured assets of Origination and Advisory EUR 0.6 bn, sold assets of EUR 0.7 bn and FX Loan Products movements of EUR
Slide 34: Funding sources and liquidity
Funding sources and liquidity In EUR bn Funding sources overview Liquidity position 31 Dec 2010 (Total: EUR 1,075 bn) — Overall funding demand remained 31 Mar 2011 (Total: EUR 1,078 bn) stable in 1Q2011 — March-end balances reflect impact of weaker USD, especially in capital markets and transaction
Slide 35: Group headcount
Group headcount Full-time equivalents, at period end 31 Mar 2011 vs. 31 Dec 31 Dec 31 Mar 31 Dec 2010 2009 2010 2011 Total Net of change de-/consolidation CIB 14,190 15,943 15,642 (301) (301) PCAM 30,611 50,820 50,558 (262) 34 Corporate Investments 28 1,690 1,469 (221) (221) Infrastructure 32,224 33
Slide 36: Number of shares for EPS calculation
Number of shares for EPS calculation In million Average At end of period FY FY 1Q 31 Dec 31 Dec 31 Mar 2009 2010 2011 2009 2010 2011 Common shares issued(1) 673 741 929 683 929 929 Total shares in treasury (4) (4) (7) (1) (10) (4) Common shares outstanding 669 737 922 682 919 925 Vested share awards
Slide 37: Invested assets report
Invested assets(1) report In EUR bn Net new money 31 Dec 2009 31 Dec 2010 31 Mar 2011 FY2010 1Q2011 Asset and Wealth Management 686 825 799 (1) (2) Asset Management 496 550 529 (1) (5) Institutional 173 175 164 (2) (4) Retail 166 178 175 (5) 1 Alternatives 41 46 46 (1) 0 Insurance 116 151 143 6 (3)
Slide 38: Regional invested assets – AM and PWM
Regional invested assets(1) – AM and PWM In EUR bn 31 Mar 11 vs. 31 Dec 2009 31 Dec 2010 31 Mar 2011 31 Dec 10 Asset Management 496 550 529 (4)% Germany 214 244 242 (1)% UK 21 25 23 (9)% Rest of Europe 30 34 30 (11)% Americas 209 223 209 (6)% Asia / Pacific 21 25 25 1% Private Wealth Management 190
Slide 39: Regional net new money – AM and PWM
Regional net new money – AM and PWM In EUR bn FY2009 1Q2010 2Q2010 3Q2010 4Q2010 FY2010 1Q2011 Asset Management 9 4 (12) 2 4 (1) (5) Germany (2) 4 0 (1) 3 6 2 UK 5 (0) 1 1 3 4 (4) Rest of Europe (1) 1 (1) (0) (1) (1) (2) Americas 7 0 (11) 3 (1) (9) (2) Asia / Pacific (0) (1) (0) (1) 2 (0) 1 Private
Slide 40: Asset and Wealth Management
Asset and Wealth Management Income before income taxes Key features In EUR m In EUR m 1Q11 1Q11 1Q11 4Q10 1Q10 vs. vs. 190 1Q10 4Q10 Revenues 1,002 1,010 829 21% (1)% (1) Provisions (19) (13) (3) n.m. 41% Noninterest exp. (792) (937) (830) (5)% (15)% IBIT 190 59 (5) n.m. 224% (2) Invested assets 799
Slide 41: VaR of CIB trading units
VaR of CIB trading units 99%, 1 day, in EUR m VaR of CIB trading units Constant VaR of CIB trading units(1) EUR 4.7 bn Sales & Trading revenues EUR 4.6 bn 180 160 140 120 100 80 60 40 20 116 102 87 78 80 47 49 46 45 46 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 (1) Constant VaR is an approximation of how th
Slide 42: Total assets (adjusted)
Total assets (adjusted) In EUR bn 1,211 1,202 Positive market values from derivatives 64 Derivatives post-netting 62 Derivatives post-netting Trading securities 238 Financial assets 271 Trading assets 252 286 Trading assets at FV through P&L Other trading assets 33 33 Reverse repos / securities borr
Slide 43: Balance sheet leverage ratio (target definition)
Balance sheet leverage ratio (target definition) In EUR bn 2009 2010 2011 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar Total assets (IFRS) 1,501 1,670 1,926 1,958 1,906 1,842 Adjustment for additional derivatives netting (533) (559) (735) (760) (602) (508) Adjustment for additional pending settlements
Slide 44: 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. These statements are based on plans, estimates and pro