Deutsche Bank AG · XETR:DBK
Deutsche Bank — Investor Day (October 2006)
20 slides from Deutsche Bank's investor day presentation, Oct 6, 2006
Slide 1: Private Wealth Management
Private Wealth Management Pierre de Weck Head of Private Wealth Management London, 5 - 6 October 2006
Slide 2: Competitive position …
financial transparency. Competitive position … Invested assets as of 31 Dec 2005, in EUR bn 1,115 1,108 930 472 374 294 265 261 193 168 UBS Citigroup Merrill Credit Morgan HSBC JPMorgan W achovia BoA DB Lynch Suisse Stanley Chase PWM Private Banking US Brokerage Note: Minimum investments range from
Slide 3: … especially strong in core private banking
financial transparency. … especially strong in core private banking Invested assets as of 31 Dec 2005, in EUR bn 632 424 294 265 193 152 128 128 63 0 UBS Credit HSBC JPMorgan BoA Citigroup DB Morgan W achovia Merrill Suisse Chase Stanley Lynch PWM Private Banking Source: Scorpio Consulting, June 200
Slide 4: Asset growth across all markets
financial transparency. Asset growth across all markets 18 month NNM*, in EUR bn PWM invested assets, in EUR bn growth rate FY2005 1H2006 Germany 43 +22% 2 2 35 Europe / Latin America / 56 +18% 5 2 Middle East 47 USA 54 +8% 1 2 50 Asia / Pacific 16 +58% 3 2 10 Global 169 +19% 11 8 143 30 Jun 2006 31
Slide 5: Top tier growth rate
financial transparency. Top tier growth rate Change in overall invested assets in private banking division in reporting currency 2005 vs. 2004 25% 23% 18% 18% 14% 14% 9% 9% 7% 3% UBS Credit BoA DB HSBC Citigroup Morgan W achovia Merrill JP Morgan Suisse Stanley Lynch Chase PWM Source: Scorpio Consul
Slide 6: Growth driven by portfolio performance above benchmark …
financial transparency. Growth driven by portfolio performance above benchmark … Discretionary portfolio management performance, per annum Benchmark Portfolio Income 4.8% 5.9% Private Asset Management Core 7.4% 9.2% Germany Growth 9.9% 13.0% Conservative 5.6% 6.3% Private Asset Management Core 8.8%
Slide 7: … as well as through first-class net new money gathering …
financial transparency. … as well as through first-class net new money gathering … Net new money, in % of invested assets* 9.1% 7.7% 4.4% 2004 2005 1H2006 annualised * Net new money at end of period over invested assets at start of period Investor Relations 10/06 · 7
Slide 8: … fuelled by increasing Relationship Manager productivity
financial transparency. … fuelled by increasing Relationship Manager productivity Front office hiring NNM per client advisor, in EUR m 8% 10% 11% 36% 400 13 117% 332 293 9 6 2004 2005 2006E 2004 2005 1H2006 annualised % Share of total FTE Source: GMIS, HR cube Investor Relations 10/06 · 8
Slide 9: PWM with strong profit momentum
financial transparency. PWM with strong profit momentum Private Wealth Management, underlying pre-tax profit 45% 21% 2004 2005 1H2005 1H2006 Investor Relations 10/06 · 9
Slide 10: PWM’s distinct success factors
financial transparency. PWM’s distinct success factors Cutting edge products for best-in-class asset diversification House View Global Player PWM’s PWM global investment PWM network as integral process success part of Deutsche Bank factors Client centric model: Regional expansion to meet growing cli
Slide 11: House view: Deutsche Bank intellectual capital …
financial transparency. House view: Deutsche Bank intellectual capital … Global Investment Committee (GIC) HousePWM Global CIO, Regional Strategists & CIOs View & Strategic Asset Allocation Global Product Management & Investment Solutions experts DWS Head Equity Fund Management Global Markets Chief
Slide 12: …delivering outperformance for our clients
financial transparency. …delivering outperformance for our clients Discretionary portfolio management performance, per annum Benchmark Portfolio Income 4.8% 5.9% Private Asset Management Core 7.4% 9.2% Germany Growth 9.9% 13.0% Conservative 5.6% 6.3% Private Asset Management Core 8.8% 9.8% Internati
Slide 13: Cutting edge products for best-in-class asset diversification
financial transparency. Cutting edge products for best-in-class asset diversification Single Manager Private Equity Real Estate Proprietary Products Hedge Funds Global diversified Wide coverage of HF Access to global and CROCI product family: investment program strategies with open regional,
Slide 14: Attractiveness of mature and emerging markets
financial transparency. Attractiveness of mature and emerging markets Growth rates of selected wealth management markets 25% HNWI growth rate 2005 India 20% Russia 15% Brazil ME/A 10% China UK US Spain 5% Switzerland Italy Germany 0 100 200 300 400 500 600 700 800 900 2700 3000 Number of HNWIs (‘000
Slide 15: PWM’s dedicated regional growth strategies
financial transparency. PWM’s dedicated regional growth strategies 25% Strengthen India onshore & offshore HNWI growth rate 2005 20% Expand Russia onshore & offshore Grow ME/A 15% presence / RSA Expand onshore market Business model share convergence Grow Greater China Strengthen UK 10% LatAm presenc
Slide 16: Progressing with convergence strategy for US market
financial transparency. Progressing with convergence strategy for US market PWM model pre-empts emerging trend in the industry high Increased distribution PWM ‘Convergence scale PWMBanks Investment PCS Model’ Product driven model PB & Brokerages Improved sales force effectiveness Building out
Slide 17: Asia: Sustained investment is paying off
financial transparency. Asia: Sustained investment is paying off Development PWM Asia 2002 - 2006 258 280 360 450 560 Tokyo Shanghai 20.6 17.8 New Delhi Taipei Mumbai Hong Kong Bangkok Bangalore Chennai 11.9 220% 9.4 9.5 180% Singapore 140% Jakarta 120% Surabaya 100% PWM offshore location Sydney 200
Slide 18: Five priority initiatives for increased annuity income and margin expansion
financial transparency. Five priority initiatives for increased annuity income and margin expansion Discretionary Portfolio Expand DPM as PWM key proposition Management (DPM) Wealth Advisory Establish industry-leading and globally consistent advisory process, Process (WAP) with structured approach s
Slide 19: Increased quality of earnings to further create shareholder value
financial transparency. Increased quality of earnings to further create shareholder value Recurring income development RoA development CAGR 17% 27% Trans- 39% actional 92bps 73% 81bps Recurring 61% Revenue 2006E Revenue 2008E RoA 2006E RoA 2008E PWM‘s contribution to Group Vision 2008 is EUR 500 m u
Slide 20: Cautionary statement regarding forward-looking statements and non-U.S. GAAP financial measures
financial transparency. Cautionary statement regarding forward-looking statements and non-U.S. GAAP financial measures This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expecta