Deutsche Bank Ag · XETR:DBK
Deutsche Bank — FY2008 Earnings Presentation
22 slides from Deutsche Bank's earnings presentation, Feb 5, 2009
Slide 1: Dr. Josef Ackermann, Chairman of the Management Board
Dr. Josef Ackermann Chairman of the Management Board Frankfurt, 5 February 2009
Slide 2: 2008 in context of Deutsche Bank's management agenda
2008 in context of Deutsche Bank’s management agenda In EUR bn Net revenues Net income Tier I capital Mark-downs Net revenues 6.5 31.1 6.1 2.3 28.3 28.5 26.5 30.7 25.6 3.5 22.7 23.5 21.6 21.9 21.3 21.9 2.5 18.7 1.4 7.0 0.4 13.5 (3.9) „02 „03 „04 „05 „06 „07 „08 „02 „03 „04 „05 „06 „07 „08 „02 „03 „0
Slide 3: Unprecedented conditions in the quarter
Unprecedented conditions in the quarter 2008 Basis risk Correlation CDS bond-basis funding spread, in bps EURJPY-Nikkei correlation, in % 300 .90 225 150 .70 75 .50 0 (75) .30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Volatility Liquidity EuroStoxx volatility 3M Euribor – 3M Eonia swap rate, in bps 100 200 150 50 100
Slide 4: CB&S: Principal reasons for losses
CB&S: Principal reasons for losses Business model positioning Impact Market dislocations affect specific Prop trading: Relative value strategies positions / relationships between assets Volatility exposes illiquidity of large Scale: Market leadership in key areas notional positions Complexity: Custo
Slide 5: However, flow businesses performed well
However, flow businesses performed well Revenue development, 2006-2008 Foreign Exchange Money Markets(1) x2.3 x3.6 2006 2007 2008 2006 2007 2008 Rates(2) +12% FX / MM / Rates 2007: ~30% of Global Markets revenues 2006 2007 2008 (1) Excluding prop (2) Core Rates Trading excluding municipals and prop
Slide 6: Press and Media Relations 02/09 · 6
Press and Media Relations 02/09 · 6
Slide 7: GTB: Another successful year
GTB: Another successful year Income before income taxes, in EUR m 2008 quarterly development 2004 – 2008 291 1,106 >4x 283 281 945 705 250 433 254 1Q 2Q 3Q 4Q 2004 2005 2006 2007 2008 Note: 2004-2005 based on U.S. GAAP and on structure as of 2006, 2006 onwards based on IFRS and on latest structure P
Slide 8: AWM impacted by asset impairments and exceptional items
AWM impacted by asset impairments and exceptional items Revenues, in EUR bn Income before income taxes, in EUR m Specific items In EUR bn (25)% DWS Scudder impairment (0.3) 4.4 Infrastructure impairment (0.3) Infrastructure investment (0.2) European money mkt fund injections (0.2) 3.3 Seed
Slide 9: PBC: Respond to shifts in revenue mix, and leverage benefits of 'flight to quality'
PBC: Respond to shifts in revenue mix, and leverage benefits of ‘flight to quality’ Shift in revenue mix Substantial capture of new clients and deposits Net revenues, in EUR bn Total clients, in m x Deposits(2), in EUR bn Germany 5.8 5.8 83 +19 Investment (15)% 64 products 0.8 14.6 13.8 Consumer & 2
Slide 10: Trading exposures in key areas
Trading exposures in key areas 31 Dec 2007 31 Dec 2008 In EUR bn CDO Subprime RMBS (70)% (59)% (50)% (65)% 9.7 2.9 4.8 0.9 1.2 3.6 0.5 1.3 Gross Net Gross Net CRE Leveraged Finance (73)% (83)% (98)% (98)% 17.2 15.4 36.2 34.9 4.6 (1),(2) 2.6 (1) 0.9 0.5 Gross Net Gross Net CDO / RMBS: Exposure repres
Slide 11: Press and Media Relations 02/09 · 11
Press and Media Relations 02/09 · 11
Slide 12: Level 3 assets
Level 3 assets(1) Asset classes Comments In EUR bn Criteria for level 3 categorization unchanged 88 89 3 2 6 6 Key changes in composition year over year 14 – Transfer from Level 2 to Level 3 41 – Market volatility – IAS 39 reclasses 50 – Maturing and sold assets 18 20 17 31 Dec 31 Dec 2007 2008
Slide 13: Risks in derivatives portfolio
Risks in derivatives portfolio In EUR bn 128 (16) (7) (10) 61 (34) EUR 67 bn (>50%) Credit Risk Mitigants Uncollateralised Non-cash Exchange Sovereign Other Credit Remaining collateral Counterparts & State Risk Credit Risk sponsored mitigants entities Press and Media Relations 02/09 · 13
Slide 14: Press and Media Relations 02/09 · 14
Press and Media Relations 02/09 · 14
Slide 15: A shift in the Global Markets business model
A shift in the Global Markets business model Shift in business model (revenue mix) Key actions Illustrative De-risk Highly illiquid Scale-back / eliminate illiquid prop activity ~5% Sharply reduced retention of structured un- ~15% positions hedgeable risk Significant curtailment of non-collate
Slide 16: Corporate Finance: Recalibrating our platform
Corporate Finance: Recalibrating our platform Commercial Real Estate Reposition Reengineer Leveraged Finance Sectors: Financial Institutions, Natural Resources Countries: Selected Europe, China, Brazil Invest Products: M&A and „rescue‟ advisory Maintain commitment to German mid-cap Ali
Slide 17: Global Transaction Banking: Continued growth agenda
Global Transaction Banking: Continued growth agenda Increase penetration of existing client base in core markets Expansion into Leverage „flight to quality‟ opportunities new markets Monitor opportunities to expand by acquisition Target profitable lower mid-cap corporate client groups Attrac
Slide 18: AWM will reposition its platforms to a changed environment
AWM will reposition its platforms to a changed environment Reengineer platform to restore operating leverage at current market levels: Reposition exposure to European money-market fund business Right-size RREEF / infrastructure Asset Downsize hedge fund platform Management Centralize shared
Slide 19: PBC: Implementation of 'Growth and Efficiency' program
PBC: Implementation of ‘Growth and Efficiency’ program Advisory banking: Position for recovery in PBC investment products via selective investments Business Advisory Consumer Consumer banking: Position for margin model Banking Banking compression via cost-efficiency Efficiency measures Leverag
Slide 20: Summary: Looking forward in 2009
Summary: Looking forward in 2009 Capital ratios remain solid Reduced exposure to legacy positions Trading assets in key areas have been significantly reduced Strong liquidity and funding base Cost-efficiency measures underway Repositioning businesses to the current environment Press and
Slide 21: Press and Media Relations 02/09 · 21
Press and Media Relations 02/09 · 21
Slide 22: Cautionary statements
Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). It is preliminary and unaudited and may be subject to adjustments based on the preparation of the full set of financial statements f