Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Deutsche Bank Aktiengesellschaft — FY2008 Earnings Presentation
38 slides from Deutsche Bank's earnings presentation, Feb 5, 2009
Slide 1: Financial Analysis
Financial Analysis Stefan Krause Chief Financial Officer 5 February 2009
Slide 2: Agenda
AgendaAgenda Agenda 1 Group summaryp y 2 Capital and balance sheet 3 Liquidity and funding Investor Relations 02/09 · 2
Slide 3: Results in summary
Results in summaryResults in summary In EUR bn 4Q2008 4Q2007 3Q2008 FY2008 FY2007 Net revenues (0.9) 7.3 4.4 13.5 30.7 Provision for credit losses (0.6) (0.3) (0.2) (1.1) (0.6) Noninterest expenses (4.7) (5.5) (4.0) (18.2) (21.4) Income (loss) before income taxes (6.2) 1.4 0.1 (5.7) 8.7 Net income (
Slide 4: Segment results: Fourth quarter
Segment results: Fourth quarterSegment results: Fourth quarter In EUR m CB&S GTB AWM PBC CI C&A Group R (3 774) 751 588 1 410 28 112 (885) Revenues (3,774) 751 588 1,410 28 112 (885) Provision for credit losses (358) (3) (13) (216) (1) (0) (591) Noninterest expenses (1,657) (457) (1,451) (1,143) (26
Slide 5: Net revenue development
Net revenue developmentNet revenue development In EUR bn (56)% 9.6 8.8 73 30.7 5.1 7.3 4.6 5.4 4.4 13.5 (0.9)(0.9) Full year 20082007 1Q 2Q 3Q 4Q 2007 1Q 2Q 3Q 4Q 2008 Investor Relations 02/09 · 5
Slide 6: Noninterest expenses
Non-interest expensesNoninterest expenses In EUR bn G&A expenses: In EUR m VAT benefit ~(110) Litigation provision ~100 21 4 (15)% RREEF infrastructure investment ~80 Auction Rate Securities provision ~40 Other non-comp expenses: Impairment on RREEF infrastr. investment ~270 6.3 6.0 5.5 48 46 47 21.
Slide 7: Trading exposures in key areas
Trading exposures in key areas 31 Dec 2007 Trading exposures in key areas In EUR bn US RMBSCDO Subprime 31 Dec 2008 29 9.7 U.S. RMBSCDO Subprime (70)% (59)% (50)% (65)% Net Net 2.9 0.9 1.2 0.5 GrossGross 4.8 3.6 1.3 Net NetGrossGross Leveraged FinanceCRE (73)% (83)% (98)% (98)% 4.6 15.4 2.6 17.2 09
Slide 8: Monoline exposure related to U.S. residential mortgages
Monoline exposure related to U S residential mortgagesMonoline exposure related to U S residential mortgages Monoline exposure related to U.S. residential mortgages Exposures in EUR bn Breakdown Exposures, in EUR bn Breakdown By Notional Fair Value before credit provision Subprime Super Senior Alt-A
Slide 9: Other monoline exposure
Other monoline exposureOther monoline exposure Other monoline exposure Exposures in EUR bn Breakdown Exposures, in EUR bn Breakdown Corporate single name / CDO Trust Preferred and other CLOs CMBS OtherStudent LoansFV prior to Credit FV after By Notional Fair Value before credit provision AA Rated 2.
Slide 10: Value of Level 3 assets unchanged
Value of Level 3 assets(1) unchangedValue of Level 3 assets() unchanged Asset classes Comments 6 6 88 89 23 ..Criteria for level 3 categorization unchanged In EUR bn 41 14 6 6 ..Key changes in composition year over year: — Transfer from Level 2 to level 3 — Market volatility drives rises in derivati
Slide 11: Agenda
AgendaAgenda Agenda 1 Group summaryp y 2 Capital and balance sheet 3 Liquidity and funding Investor Relations 02/09 · 11
Slide 12: Development of Tier 1 capital in fourth quarter 2008
Development of Tier I capital in fourth-quarter 2008 Development of Tier I capital in fourth quarter 2008 In EUR bn 32.8 1.2 31.1 (4.8) 1.0 0.9 1.2 ( ) 30 Sep 2008 Net income Release of dividend accrual Contingent capital conversion Other measures / effects 31 Dec 2008 Investor Relations 02/09 · 13
Slide 13: IFRS balance sheet: Development by category
IFRS balance sheet: Development by category 2 202 IFRS balance sheet: Development by category In EUR bn Positive market values from derivatives Reverse repos / securities borrowed Trading securities 1,624 2,062 2,202 Other trading assets securities borrowed 1,383 Loans des. at FV Other financial ass
Slide 14: Derivative market values driven by certain factors
Derivative market values driven by certain factorsDerivative market values driven by certain factors In EUR bn Key driversQuarter-on-quarter development Netting under U.S. GAAP ‘proforma’ U.S. GAAP ‘proforma’ ..Increase driven by sharp falls in USD and EUR interest Rates ..Volatile FX, Credit and Eq
Slide 15: U.S. GAAP pro-forma assets: Analysis of managed reductions
U S GAAP ‘pro-forma’ assets: Analysis of ‘managed reductions’ 1318 U.S. GAAP pro forma assets: Analysis of managed reductions In EUR bn ‘Managed reductions‘ 319 107 1,318 1,030 Positive market values from derivatives 319 69 347 128 , 205 Trading securities Reverse repos / Financial assets at FV thro
Slide 16: Development of total assets: IFRS and U.S. GAAP pro-forma
Development of total assets: IFRS and U S GAAP ‘pro-forma’Development of total assets: IFRS and U.S. GAAP pro forma Total assets, in EUR bn 30 Sep 2008 31 Dec 2008 2062 30 Sep 2008 31 Dec 2008 2,202 2,062 (22)% (23)(101) (620) 1,318 1030 () 1,030 (1,097) (69) (7) IFRSRepo netting Derivatives netting
Slide 17: Leverage ratio development
Leverage ratio developmentLeverage ratio development Balance sheet leverage ratio per target definition* 32 38 32 28 30 June 2008 30 September 2008 31 December 2008 Investor Relations 02/09 · 18 * Assets based on U.S. GAAP ‘pro-forma’; 30 Sep 2008 and 31 Dec 2008 figures reflect revision of applicat
Slide 18: Provision for credit losses
Provision for credit losses Si l t t Provision for credit losses In EUR m Single counterparty relationship IAS 39 impact 591 257 1,076 329 236 185 612 98 81 105 114 135 236 72 2007 2008 Full year 20082007 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Thereof: CIB 2007 2008 20082007 (20) (42) (19) 190 (11) (9) 66 361 109
Slide 19: Problem loans
Problem loans Problem loans not considered Problem loans In EUR bn IFRS impaired loans coverage ratio(2) IFRS impaired loans(1) impaired under IFRS 39 4.6 3.2 3.1 2.9 2.8 3.1 3.2 3.3 3.9 3.7 2.6 2.5 2.4 2.6 2.7 3.2 2.5 63% 66% 64% 64% 62% 65% 53% 53% (3) 31 D (1) IFRS impaired loans include loans wh
Slide 20: Agenda
AgendaAgenda Agenda 1 Group summaryp y 2 Capital and balance sheet 3 Liquidity and funding Investor Relations 02/09 · 21
Slide 21: Unsecured funding by source
Unsecured funding by sourceUnsecured funding by source In EUR bn 511 498 7330% 15% Cash and liquidity reserves exceed short term 153 30% short-term wholesale funding 358 426 + 68 Short-term wholesale fundingCapital markets 30 June 2007 31 December 2008 Investor Relations 02/09 · 22 Note: Figures may
Slide 22: Deutsche Bank's funding position
Deutsche Bank’s funding position Deutsche Bank s funding position Modest additional capital market funding CDS spreads support funding cost advantage New issuance, in EUR bn 5-year senior CDS, in bps 1 July 2007 2 February 2009 54 381 45 167 171 263 295 306 16 70 106 127 163 167 171 35 351819 Plan 2
Slide 23: Additional information
Additional information Additional information
Slide 24: Leveraged Finance exposure: Current status
Leveraged Finance exposure: Current statusLeveraged Finance exposure: Current status Composition of current loans and loan commitments In EUR bn 30 Sep 2008 total loans and loan commitments 24.1 FX 0.2 Sales (1.0) FundedIn EUR bn (1.0) 10.9 ( ) Restructured 0.1 New Commitments 0.1 Cancelled (12.2) (
Slide 25: Commercial Real Estate: Current status
Commercial Real Estate: Current statusCommercial Real Estate: Current status Composition of traded whole loans and loan commitments(1) In EUR bn 30 Sep 2008 traded loans at fair value 12.4 FX (0.5) Sales (1.8) 2.6 In EUR bn (2) Total IAS 39 reclass in 2008: EUR 6.9 bn Sales (1.8) Transfer to loans h
Slide 26: Assets and Liabilities: Analysis
Assets and Liabilities: Analysis 2 202 2 202 Assets and Liabilities: Analysis Liquidity management view by product, as of 31 Dec 2008, in EUR bn Assets and Liabilities: Analysis 2 202 2 202 Assets and Liabilities: Analysis Liquidity management view by product, as of 31 Dec 2008, in EUR bn 2,202 2,20
Slide 27: FY2008 IAS 39 reclassifications
FY2008 IAS 39 reclassificationsFY2008 IAS 39 reclassifications In EUR bn FY2008 total impact from reclassifications Assets reclassified in 3Q2008 Assets reclassified in 4Q2008 Total Net Revenues 2.3 1.2 3.6 (1) Provision for credit losses (0.2) (0.1) (0.3) Noninterest expenses — Income before income
Slide 28: Number of shares for EPS calculation
Number of shares for EPS calculation Average At end of period In million Number of shares for EPS calculation FY 2007 FY 2008 4Q 2008 31 Dec 2007 30 Sep 2008 31 Dec 2008 Common shares issued 527 542 571 530 571 571Common shares issued 527 542 571 530 571 571 Total shares in treasury (28) (25) (16) (
Slide 29: Group headcount
Group headcount 31 Dec 2008 vs. Full-time equivalents, at period end Group headcount 30 Sep 2008 Total change Net of de-/consoli- 31 Dec 2008 30 Sep 2008 31 Mar 2008 31 Dec 2007 30 Jun 2008 change dation CIB 16,510 15,638 15,614 15,547 15,033 (514) (612) PCAM 31,196 31,706 32,143 32,569 32,310 (259)
Slide 30: Invested assets report
Invested assets(1) report Net new money 31 D 31 M 30 J 30 S 31 D Invested assets() report In EUR bn 4Q2008 FY2008 Asset and Wealth Management 749 698 700 700 628 (23) (13) Net new money 31 Dec 2007 31 Mar 2008 30 Jun 2008 30 Sep 2008 31 Dec 2008 Asset and Wealth Management 749 698 700 700 628 (23) (
Slide 31: Regional invested assets — AM and PWM
Regional invested assets(1) — AM and PWM 31 Dec 31 Mar 30 Jun 31 Dec 08 31 Dec 30 Sep Regional invested assets() AM and PWM In EUR bn Asset Management 555 516 515 510 463 (17)% 31 Dec 2007 31 Mar 2008 30 Jun 2008 vs. 31 Dec 07 31 Dec 2008 30 Sep 2008 Germany 264 252 248 232 200 (24)% UK 16 16 16 19
Slide 32: Regional net new money — AM and PWM
Regional net new money — AM and PWM Regional net new money AM and PWM In EUR bn Asset Management 5 27 2 1 (11) (15) (22) G 1 20 2 (3) (7) (22) (29) 4Q2008 FY2008 1Q2008 FY2007 4Q2007 3Q2008 2Q2008 Germany 1 20 2 (3) (7) (22) (29) UK 1 7 1 1 3 (1) 4 Rest of Europe 1 (7) (0) (1) 0 (1) (2) Americas 1 3
Slide 33: Listed holdings
Listed holdings Stake Market value Listed holdings In EUR m (in %) 31 Dec 2008 31 Dec 2007 31 Mar 2008 30 Jun 2008 30 Sep 2008 31 Dec 2008 Market value 2008 2007 2008 2008 2008 2008 Daimler AG 2.7% 2,967 1,567 1,027 943 692 Allianz SE -1,154 867 584 — Linde AG 2.4% 789 571 570 418 250 Other n.m. 171
Slide 34: Loan book
Loan book IAS 39 impact on CIB loan book xx Loan book In EUR bn 35% IAS 39 impact on CIB loan book 217 12 271 255 CI 107 186 193 195 201 209 217 151 112 145 CIB 3425 91 97 97 100 107 112 PCAM 94 96 98 100 102 108105 109 PCAM 31 Mar 30 Jun 30 Sep 31 Dec 2007 31 Mar 30 Jun 30 Sep 31 Dec 2008 Investor
Slide 35: Risk
RiskRisk VaR of CIB trading units (99%, 1 day), in EUR m Sales & Trading revenues 170 EUR (4.8) bn EUR 2.7 bn 130 150 90 110 70 90 50 4Q20084Q2007 ·117.8 1Q2008 ·112.5 2Q2008 3Q2008 ·91.0 Ø133.8Ø123.7 Investor Relations 02/09 · 36 RiskRisk VaR of CIB trading units (99%, 1 day), in EUR m Sales & Trad
Slide 36: Consolidated balance sheet — Assets
Consolidated balance sheet — Assets Change Absolute In % 31 Dec 2007 31 Dec 2008 Consolidated balance sheet Assets In EUR bn Assets Cash and due from banks 10 9 1 14% Interest-earning deposits with banks 65 22 43 200%Interest earning deposits with banks 65 22 43 200% Central bank funds sold and secu
Slide 37: Balance sheet leverage ratio (target definition)
Balance sheet leverage ratio (target definition)Balance sheet leverage ratio (target definition) In EUR bn 31 Dec 2008 30 Sep 2008 Total assets (IFRS) 2,202 2,062 Adjust derivatives according to U.S. GAAP netting rules (1,097) (620) Adjust pending settlements according to U.S. GAAP netting rules (69
Slide 38: Cautionary statements
Cautionary statementsCautionary statements Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial It is preliminary and unaudited and may subject adjustments based the ReportingReporting StandardsStandards (IFRS)(IF
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