Deutsche Bank Ag · XETR:DBK
Deutsche Bank — BofAML Banking & Insurance CEO Conference 2012
28 slides from Deutsche Bank's conference presentation, Sep 25, 2012
Slide 1: Deutsche Bank: Winning in a changed environment
Deutsche Bank Deutsche Bank: Winning in a changed environment Anshu Jain Co-Chairman of the Management Board and the Group Executive Committee BofAML Banking & Insurance CEO Conference London, 25 September 2012 Deutsche Bank Anshu Jain financial transparency. Investor Relations BofAML Conference, 25
Slide 2: Agenda
Agenda 1 Operating environment 2 Strategy 2015+: Recalibrating the Bank 3 Capital and operational excellence 4 Summary Deutsche Bank Anshu Jain financial transparency. 1 Investor Relations BofAML Conference, 25 September 2012
Slide 3: We face a challenging medium-term environment
We face a challenging medium-term environment Low growth; further potential for shocks Macroeconomic Continued dependence on policy stimulus challenges Significant, prolonged deleveraging ahead Changing global demographics Megatrends drive significant Urbanization and financial deepening in emerging
Slide 4: In this environment, the banking industry shrinks …
In this environment, the banking industry shrinks … Has shrunk in previous crises … … and is shrinking now Number of commercial Share of total assets Number of banks by geography banks in the US held by second tier banks in Japan(1) EU 15 60% ~ 20,000 (33)% (34)% ~(20)ppt 10,924 ~(50)% 10,043 40% 8,
Slide 5: … and winners emerge
… and winners emerge Global integrated firms survive … … and capture increased share of business March 2008 Today % of business accruing to the top 5 firms Pre-financial crisis 51 Post-financial crisis 44 40 36 12 13 (1) Investment Asset & Wealth Transaction banking(2) Management(3) banking(4) (1) S
Slide 6: What is Deutsche Bank's starting point?
What is Deutsche Bank’s starting point? Unique strengths … … and identified weaknesses Deep roots in Europe’s strongest Long-term underperformance of some economy and long presence in EM businesses Unique brand, IB franchise and undisputed home market leader Historical lack of earnings balan
Slide 7: Agenda
Agenda 1 Operating environment 2 Strategy 2015+: Recalibrating the Bank 3 Capital and operational excellence 4 Summary Deutsche Bank Anshu Jain financial transparency. 6 Investor Relations BofAML Conference, 25 September 2012
Slide 8: Of the many priorities, three are key
Of the many priorities, three are key Aspiration FY2011 2015 Key assumptions Fully — Normalization/stabilization of loaded B3 asset valuations <6%(1) >10% Core Tier 1 — Revenue growth in line with ratio market — No major changes to current Cost regulatory frameworks on Income 78% <65% capital or sep
Slide 9: We plan to grow our geographic footprint in Germany, the Americas and Asia Pacific
We plan to grow our geographic footprint in Germany, the Americas and Asia Pacific Indicative IBIT CAGR aspiration 2011-2015 (1) >20% 10-20% ≤0% — Build on existing strong platform as bank of choice Germany — Increase loan volume by at least EUR 10 bn by 2015 — Streamline resource consumption in lin
Slide 10: We will allocate assets dynamically across our portfolio
We will allocate assets dynamically across our portfolio Key principles Operating portfolio implications: Does the business ... — DB will emphasize and ...meet ...align well ILLUSTRATIVE ...add value ...contribute invest in businesses which performance to trends/ for clients? to balance? criteria? o
Slide 11: Dynamic asset allocation at work – selected examples
Dynamic asset allocation at work – selected examples PBC CB&S AWM GTB — Postbank customer — FX — AM European retail — Trade Finance bank — Emerging markets — Passive, Alternatives — CMC/CMFI Invest — Advisory banking — Platforms — UHNWI — TSS Germany — Asia — Emerging Markets — PBC Europe — Flow Rat
Slide 12: Private & Business Clients
Private & Business Clients Building a powerhouse while improving efficiency Where we aspire How we will get there: Where we are today to be in 2015 The journey Focus on delivering Postbank Challenging environment PBC operating business(1) — Product standardization (low interest rates, low client — S
Slide 13: Corporate Banking & Securities
Corporate Banking & Securities Retaining our leading position while recalibrating Where we aspire How we will get there: Where we are today to be in 2015 The journey — More top-3 positions than CB&S operating business(2) Focus any other IB(1) — Re-evaluate CB&S portfolio to — A truly global franchis
Slide 14: Corporate Banking & Securities: Increasing efficiency
Corporate Banking & Securities Increasing efficiency Priorities Major cost measures Cost impact aspiration, in EUR bn 2012 savings (implemented) — Announced 900 front office headcount reduction; focus on Achieve leading Equities/Corporate Finance in EU/APAC 0.4 position in cultural — Improved cost m
Slide 15: Asset & Wealth Management
Asset & Wealth Management We aspire to double profitability through integration and efficiency Where we aspire Where we are today How we will get there: The journey to be in 2015 AWM operating Three solid pillars Realize potential of business(1) — Private Wealth Management underperforming businesses
Slide 16: Global Transaction Banking
Global Transaction Banking We aspire to double profitability by investing in growth Where we aspire Where we are today How we will get there: The journey to be in 2015 GTB operating Grow Trade Finance & Cash Management Growth business across the cycle, business(1) resilient to external shocks Corpor
Slide 17: We will be at the forefront of our industry's cultural change
We will be at the forefront of our industry’s cultural change Our commitments Our key actions — Increase time horizon for bonus payouts to senior management We will lead the — Extend equity vesting period from 3 to 5 years industry on — Remove interim payment on deferred bonuses; Realigning realigni
Slide 18: Agenda
Agenda 1 Operating environment 2 Strategy 2015+: Recalibrating the Bank 3 Capital and operational excellence 4 Summary Deutsche Bank Anshu Jain financial transparency. 17 Investor Relations BofAML Conference, 25 September 2012
Slide 19: We will realize our capital goals organically
We will realize our capital goals organically B3 RWA equivalent(2) Core Tier 1 goals Capital tool box relief, in EUR bn Basel 3 Core Tier 1 ratio, fully loaded June Reduction Included in capital plan 2012 2Q 12 –1Q 13 Non-Core Operations ~135 ~45 10.2%(1) >10% Available Portfolio optimization ~17 ca
Slide 20: We will establish a Non-Core Operations unit ...
We will establish a Non-Core Operations unit ... Pro-forma B3 RWA equivalent(1), 30 Jun 2012, Rationale Scope in EUR bn Clear criteria used for identifying assets / liabilities in scope Accelerate de- risking — Trading: securitization portfolio — Assets in run-off: CB&S monoline, legally and CB&S ~1
Slide 21: ... with dedicated governance
... with dedicated governance Governance model Non-Core Operations de-risking aspiration RWA equivalent(1), in EUR bn — De-risking and capital formation interests aligned between operating and Non-Core ~(45) businesses ~135 — Centralized coordination of Non-Core 110 Operations with Management Board-
Slide 22: Operational excellence – we aim to save EUR 4.5 bn annually …
Operational excellence – we aim to save EUR 4.5 bn annually … Business savings aspiration Infrastructure savings aspiration 2015 yearly run-rate savings(1), in EUR bn 2015 yearly run-rate savings(1), in EUR bn CB&S 1.1 Global Technology 0.7 GTB 0.2 Global Business 0.4 Services AWM 0.4 Other COO(3) &
Slide 23: … through a one-off investment of EUR ~4 bn
… through a one-off investment of EUR ~4 bn Our aspiration 2015 Structural levers Examples In EUR bn Savings(3) — Magellan platform Postbank CtA IT platform — Invest in world class 0.8 renewal — Golden source for data already announced technology platform reference 4.5 — More effective — Reduce from
Slide 24: Agenda
Agenda 1 Operating environment 2 Strategy 2015+: Recalibrating the Bank 3 Capital and operational excellence 4 Summary Deutsche Bank Anshu Jain financial transparency. 23 Investor Relations BofAML Conference, 25 September 2012
Slide 25: In summary: Quantifying our aspiration
In summary: Quantifying our aspiration Deutsche Bank aspiration Divisional aspiration 2015(5) Cost savings of EUR 4.5 bn — IBIT: ~EUR 3.0 bn PBC Accelerated de-risking of Non-Core Operations — CIR: ~60% Aspiration FY 2011 2015 — CIR: <65% Fully loaded — RWA equivalent(6): CB&S B3 Core Tier 1 <6%(1)
Slide 26: Appendix
Deutsche Bank Appendix Deutsche Bank Anshu Jain financial transparency. Investor Relations BofAML Conference, 25 September 2012
Slide 27: Reconciliation of key financials shown in the presentation
Reconciliation of key financials shown in the presentation 2011 SPLIT OPERATING vs. NON-CORE INDICATIVE Re-segmentation Non-Core Operating (1) As reported Operations Other businesses Cost/income ratio 78% (6)ppt (1)ppt 71% RWA (in EUR bn) 229 (52) (3) 173 CB&S Memo: RWA equivalent (in EUR bn) (2) 25
Slide 28: 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
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