Deutsche Bank Ag · XETR:DBK
Deutsche Bank — BoAML Banking & Insurance CEO Conference 2013
23 slides from Deutsche Bank's conference presentation, Sep 25, 2013
Slide 1: Strategy 2015+: Our journey
Deutsche Bank Strategy 2015+: Our journey Anshu Jain Co-Chief Executive Officer, Deutsche Bank BoAML Banking & Insurance CEO Conference London, 25 September 2013 Deutsche Bank Anshu Jain, BoAML Banking & Insurance CEO Conference financial transparency. 25 September 2013
Slide 2: We are 16 months into our three year journey
We are 16 months into our three year journey Progress on controllables Capital Cap a Reached eac ed 10% 0% Basel ase 3 co common o equ equity y tier e 1 ratio a o Cost Adjusted cost base reduced by EUR 600 m yoy(1) Competencies p Strengthened g 1H2013 results across divisions Clients Progressed in d
Slide 3: Agenda
Agenda 1 The environment 2 Our journey 3 The dividend Deutsche Bank Anshu Jain, BoAML Banking & Insurance CEO Conference financial transparency. 2 25 September 2013
Slide 4: Macro/markets: In the past year, the macroeconomic and market environment has mostly improved
Macro/markets: In the past year, the macroeconomic and market environment has mostly improved Key developments since June 2012 Recovery momentum today vs. June 2012 Jun-12 Sep-13 p Containment of Euro crisis Germany Europe Fed tapering US US recovery Japan Chi China EM volatility
Slide 5: Intensified regulatory environment in the last year
Intensified regulatory environment in the last year EU compensation Foreign bank rules in B k lleverage ratio Bank ti B k structure Bank t t reform f rules l th US the Leverage as key Proposal for stricter Proposal for enhanced regulatory metric Multiple proposals for compensation regulatory agreed,
Slide 6: Agenda
Agenda 1 The environment 2 Our journey 3 The dividend Deutsche Bank Anshu Jain, BoAML Banking & Insurance CEO Conference financial transparency. 5 25 September 2013
Slide 7: Solid performance in 1H2013
Solid performance in 1H2013 In EUR bn, unless otherwise stated Group Core Bank(1) 1H2013 1H2012 1H2013 1H2012 Net revenues 17.6 17.2 17.0 16.6 Total noninterest expenses 13.6 13.6 12.3 12.5 P f Performance M Memo: adjusted dj t d costt base b (2) 11 9 11.9 12 5 12.5 - - highlights Income before inco
Slide 8: Capital: Our common equity tier 1 ratio is in line with peers but focus has shifted to leverage
Capital: Our common equity tier 1 ratio is in line with peers but focus has shifted to leverage Basel 3 common equity tier 1 ratio New regulatory leverage ratio Pro-forma (fully-loaded) as of 30 June 2013, in % Reported leverage ratio(1), as of 30 June 2013, in % 11.2 5.0 10.4 4.9 10.0 4.8 10.0 4.7
Slide 9: Capital: Why do EU banks have structurally lower leverage?
Capital: Why do EU banks have structurally lower leverage? In %, as of 30 June 2013 except loan loss ratio Lower RWA density of European banks… …reflect lower loan losses Reported leverage ratio(1) Reported leverage ratio(1) 5.6 5.6 4.9 4.9 US banks US banks 4.2 4.2 European 3.5 banks 3.5 European b
Slide 10: Capital: We have decided to reduce EUR 250 bn of exposure
Capital: We have decided to reduce EUR 250 bn of exposure to create a buffer to expected European standards CRD4 leverage exposure Leverage toolbox In EUR bn Clearing house netting 1,583 CRD4 Tear-ups / trade compression EUR 120 – gross-up Review of unutilized lending 170 bn CRD4 gross-up 413
Slide 11: Costs: OpEx program is on track
Costs: OpEx program is on track Targeted cost-to-achieve and savings Program to date progress In EUR bn In EUR bn Cost-to-achieve per year Cumulative savings 1H2013 Invested/achieved 2H2012 4.5 4.5 4.0 2014 target 2.9 2014 target 2013 target 1.7 1.6 1.5 2013 target 1.1 1.1 0.6 1H2013 0.6 0.7 1H2013
Slide 12: CB&S: Focused on doing more with less
CB&S: Focused on doing more with less As of 30 June 2013 Example challenges Business response Macro – emerging Debt and equity origination(1) +38% three-speed-world Franchise Sales & Trading Equities(1) +30% Regulatory resilience pressure Sales & Trading Debt(1) (13)% Lower industry volumes Front-of
Slide 13: PBC: Delivering record profitability while integrating
PBC: Delivering record profitability while integrating As of 30 June 2013 Example challenges Business response Persistently low Credit products(1) +4% interest rate environment Investment / insurance products(1) +7% Adapting to the environment Deposits / payment services(1) (5)% Continued risk avers
Slide 14: GTB: Solid performance despite headwinds
GTB: Solid performance despite headwinds As of 30 June 2013 Example challenges Business response Revenues(1) R +2% 2% Persistently low Solid performance interest rate and strong cost Non-interest expenses(1) (6)% environment i t di i li discipline Return on equity(2) 22% Revenue growth vs. peer +2.4
Slide 15: DeAWM: Cutting, merging, and growing
DeAWM: Cutting, merging, and growing As of 30 June 2013 Example challenges Business response Net new money(1) EUR 6 bn Complex business integration Improving our Revenues(2) +7% offering g to clients Gap in revenue margin to top 3 ~50 bps peers(1) Elimination of platform duplication Front-office ful
Slide 16: NCOU: Addition through subtraction
NCOU: Addition through subtraction As of 30 June 2013 Example challenges Business response Adjusted assets(1) EUR (46) bn Uncertain financial markets Significant Basel 3 risk weighted assets(1) EUR (61) bn de-risking g Basel 3 common equity tier 1 ratio +84 bps(2) generation(1) Industrial/operating
Slide 17: Clients: Improved client proximity and cross-divisional collaboration
Clients: Improved client proximity and cross-divisional collaboration Example Germany Strengthened footprint in Germany Key initiatives Regional hub North East Key locations Integrated commercial banking coverage Existing locations for ~900,000 small- and mid-sized for mid-sized Hamburg corporate
Slide 18: Culture: We launched our new values and beliefs
Culture: We launched our new values and beliefs Our values Integrity Sustainable Client Innovation Discipline Partnership Performance Centricity Our beliefs We live by the We drive value for We earn our clients’ We foster We protect the We build diverse highest standards of shareholders by trust by
Slide 19: Agenda
Agenda 1 The environment 2 Our journey 3 The dividend Deutsche Bank Anshu Jain, BoAML Banking & Insurance CEO Conference financial transparency. 18 25 September 2013
Slide 20: By 2015 Deutsche Bank will emerge as one of a handful of strong global universal banks
By 2015 Deutsche Bank will emerge as one of a handful of strong global universal banks banks… …with institutions grouping around three Clear evidence of consolidation... key models Number of banks(1) ― High standing in their communities and among (17)% Regionally ~7,300 regulators and public officia
Slide 21: …who are positioned to capture opportunities from future trends
…who are positioned to capture opportunities from future trends Disruptive financial Emerging markets growth Aging populations technology Urban population in China and India, in bn Number of >65yr old people, in bn Share of online vs. traditional bank users in the US, US 2013 ~2.0 ~1.0 >70% ~1.0 ~0.
Slide 22: Strategy 2015+: Committed to delivery
Strategy 2015+: Committed to delivery The most ambitious and comprehensive reconfiguration of Deutsche Bank in recent times Market developments and underlying business performance validate Strategy 2015 2015+ Progress achieved on capital and risk reduction, but leverage is a challenge Near-term meas
Slide 23: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts;; they y include statements about our beliefs and expectations p and the assumptions p underlying y g them. These statements are based on plans, estima
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