Deutsche Bank Ag · XETR:DBK
Deutsche Bank — UBS Global Financial Services Conference 2009
27 slides from Deutsche Bank's conference presentation, May 12, 2009
Slide 1: Deutsche Bank - Dr. Hugo Bänziger, Chief Risk Officer
Deutsche Bank g Banziger Dr. Hugo g Chief Risk Officer UBS Global Financial Services Conference New York, 12 May 2009
Slide 2: Agenda
Agenda 1 Strength through the crisis 2 Well positioned to stay strong ... 3 ... and emerge stronger Investor Relations 05/09 · 2
Slide 3: Deutsche Bank through the crisis
Deutsche Bank through the crisis 3Q2007-1Q2009, reported, in EUR bn Aggregate Net Income Fair value gains on own debt JPM 9.8 JPM 1.9 GS(1) 7.0 GS(1) 0.8 BoA 6.4 BoA 1.7 (0.1) 0.3 MS(2) (2.6) MS(2) 3.0 CS (2 9) (2.9) CS 39 3.9 UBS(3) (23.4) UBS(3) 4.5 C (23 9) (23.9) C 37 3.7 MER(4) (28.2) MER(4) 4.
Slide 4: Capital ratios have been strengthened
Capital ratios have been strengthened 10.3 10.2 10.2 10.1 Target: g 9.2 9.3 ~10% 8.7 8.8 8.6 8.4 7.5 7.2 7.1 7.1 7.0 7.0 6.9 6.8 6.9 329 319 316 308 311 308 303 305 285 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 Tier 1 ratio, in % Core Tier 1 ratio, in % RWA, in EUR bn Note: 2007 based on Basel I, fr
Slide 5: Intrinsic capital strength
Intrinsic capital strength Impact of state capital injections Tier I ratio as of 31 March 2009, in % Tier I ratio excluding state capital injections 16.4 16.0 14 1 14.1 11.9 11.3 10.5 10.2 10.1 8.8 8.7 8.6 12.9 13.4 9.2 8.4 8.2 7.4 7.4 7.8 (1) (2) (2) MS GS CS C JPM UBS DB BoA BNP SOC BAR (1) Based
Slide 6: Unsecured funding: Quantity, quality, consistency
Unsecured funding: Quantity, Quantity quality, quality consistency In EUR bn 511 495 Cash and liquidity reserves exceed 15% 75 short-term wholesale 153 30% f di funding + 62 420 358 30 JJune 2007 31 Mar M 2009 Short-term wholesale funding Capital markets Fiduciary clearing & other deposits Fiduciary
Slide 7: Current funding position is very robust
Current funding position is very robust Modest additional capital market funding CDS spreads support funding cost advantage New issuance, in EUR bn Remaining 5-year senior CDS, 5 May 2009, in bps 584 54 45 364 307 237 181 21 157 165 175 15 16 138 89 2005 2006 2007 2008 Plan BNP CS JPM UBS BAR GS BoA
Slide 8: Agenda
Agenda 1 Strength through the crisis 2 Well positioned to stay strong ... 3 ... and emerge stronger Investor Relations 05/09 · 8
Slide 9: Significant reduction in balance sheet leverage
Significant reduction in balance sheet leverage Total Assets, in EUR bn 30 June 2008 31 Mar 2009 Leverage ratio(2) 2,103 38 1,991 1,338 28 (653) 25 982 (1,122) IFRS Netting(1) U.S. GAAP IFRS Netting(1) U.S. GAAP 30 Jun 31 Dec 31 Mar ‘pro-forma’ ‘pro-forma’ 2008 2008 2009 (1) Based on netting rules a
Slide 10: Provision for credit losses have risen, partly reflecting transfers ...
Provision for credit losses have risen risen, partly reflecting transfers ... In EUR m Single counterparty relationship Related to IAS 39 reclassified assets 591 526 185 218 329 236 105 114 135 72 98 81 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 Thereof: CIB (20) (42) (19) 190 (11) (9) 66 361 357 117
Slide 11: ... but remain relatively low
... but remain relatively low In EUR bn Loan book Provision for credit losses As of 31 December 2008 FY2008 CIB / Other Private clients other 659 Private clients mortgages 23.2 491 509 527 18.5 478 14.6 358 271 231 160 6.7 5.8 2.0 2.7 05 0.5 1.1 CS UBS DB SOC BAR C BNP JPM BoA CS DB UBS SOC BNP BAR
Slide 12: Loan hedging significantly mitigates largest credit exposures
Loan hedging significantly mitigates largest credit exposures As of 31 Dec 2008, in EUR bn CIB loans (accrual) 151 EUR 266 bn 21% Hedged by CIB loans (fair value) 19 LEMG CIB Commitments 96 11% Hedged by Global Total 266 268 Markets 675 LEMG related exposures 134 Int’l book: Top p 25 limits German M
Slide 13: Significant de-risking in key areas
Significant de-risking in key areas 31 Dec 2007 31 Mar 2009 In EUR bn CDO Subprime U S RMBS U.S. (74)% (64)% (56)% (62)% 2.9 9.7 1.2 4.3 3.6 0.8 0.4 1.4 Gross Net Gross Net CRE Leveraged Finance (74)% (86)% (99)% (99)% 17.3 15.5 36.2 34.9 (1),(2) 4.5 (1) 22 2.2 05 0.5 02 0.2 Gross Net Gross Net CDO
Slide 14: Monoline exposure in summary
Monoline exposure in summary As of 31 Mar 2009, in EUR bn Notional Fair value Provision Fair value pre-provision after provision U.S. RMBS 5.4 2.2 (0.2) 2.0 Investment related Grade Other 11.6 2.1 (0.2) 2.0 U.S. U S RMBS 1.9 0.8 (0.6) 0.2 Non-investment related Grade Other 16.9 3.9 (1.3) 2.6 U.S.
Slide 15: Agenda
Agenda 1 Strength through the crisis 2 Well positioned to stay strong ... 3 ... and emerge stronger Investor Relations 05/09 · 15
Slide 16: Strong revenue generation in the first quarter 2009
Strong revenue generation in the first quarter 2009 In EUR bn Significant g p property p y impairment p Mark-downs 01 0.1 0.5 Monolines 0.8 1.0 2.2 3.2 2.3 9.6 12 1.2 8.8 7.3 7.2 5.1 4.6 5.4 4.4 (0.9) * 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 * Includes EUR 0.9 bn of mark-downs Investor Relations
Slide 17: Substantial profitability, even after mark-downs
Substantial profitability profitability, even after mark-downs In EUR bn Income before income taxes Net income 3.2 2.7 2.1 1.8 1.8 1.6 1.4 1.4 1.0 1.2 06 0.6 06 0.6 0.4 0.1 (0 3) (0.3) (0.1) (6 2) (6.2) (4 8) (4.8) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2009 00 2007 008 2008
Slide 18: Sales & Trading demonstrated its earnings power
Sales & Trading demonstrated its earnings power Revenues, in EUR bn Successfully y recalibrated business model High g loss absorption p capacity p y Illustrative 5% 1.1 6.1 4.0 38 3.8 <5% 1.0 Highly illiquid ~15% Monolines 0.8 4.0 ~55% Medium / ~60% High Liquidity Most liquid ~40% ~25% flow First qu
Slide 19: Sales & Trading 'flow' businesses have grown through the crisis
Sales & Trading ‘flow’ flow businesses have grown through the crisis Indexed, 1Q2007 = 100 Foreign g Exchange g Money y Markets x2.0 x4.5 1Q2007 1Q2008 1Q2009 1Q2007 1Q2008 1Q2009 Rates x2.7 1Q2007 1Q2008 1Q2009 Note: 2007 based on structure as of 2008, 2008 onwards based on latest structure Investo
Slide 20: Potential to leverage share gains in key 'flow' businesses
Potential to leverage share gains in key ‘flow’ flow businesses Deutsche Bank market share Foreign Exchange Interest Rate Derivatives Credit Default Swaps* Swaps x.x ppt = Gap to #2 2.7 ppt 4 3 ppt 4.3 5.8 ppt 15.9% 21.0% 11.6% 11.6% 19.3% 16.7% 8 9% 8.9% 10.1% 10.5% 6.4 ppt 4.5 ppt 4.3 ppt 2005 200
Slide 21: Corporate Finance: Capturing share in tougher conditions
Corporate Finance: Capturing share in tougher conditions M&A announced: Ranking by volume in USD bn Global EMEA 2008 1Q09 2008 1Q09 Rank Rank Rank Rank 1 Goldman Sachs 858 1 Morgan Stanley 219 1 Goldman Sachs 554 1 Deutsche Bank 110 2 JP Morgan 782 2 JP Morgan 203 2 JP Morgan 532 2 Credit Suisse 109
Slide 22: Global Transaction Banking: Leveraging 'flight to quality'
Global Transaction Banking: Leveraging ‘flight flight to quality quality’ 2004 – 1Q2009 IBIT Market share capture - Clearing I EUR m In I %, In % att period i d end d 1Q USD EUR 1 106 1,106 19 4 19.4 18.7 945 9.0 8.2 17.4 705 6.8 433 254 221 2004 2005 2006 2007 2008 1Q09 2007 2008 1Q09 2007 2008 1Q0
Slide 23: A challenging environment for Private Clients and Asset Mgmt.
A challenging environment for Private Clients and Asset Mgmt Mgmt. Equity indices Brokerage and portfolio- Volatility / fund management Indexed 1 Jan 2008 = 100 Revenues, in EUR m PBC AWM 110 (28)% 1,165 1 195 1,195 S&P 500 1,076 90 345 355 912 327 842 213 70 DAX 245 ((46)% ) (49)% 820 840 50 749 69
Slide 24: AWM: Restoring operating leverage at lower market levels
AWM: Restoring operating leverage at lower market levels Income before income taxes Outlook & prospects I EUR m In 242 Asset Management 188 Reposition R iti E European MM ffund d exposure Right-size RREEF Downsize hedge fund platform (850) Cost C t savings i iin mid id / b back k office ffi
Slide 25: PBC: Implementation of 'Growth and Efficiency' program
PBC: Implementation of ‘Growth Growth and Efficiency Efficiency’ program Income before income taxes Business model In EUR m Advisory Ad i b ki banking: P iti ffor recovery iin Position investment products via selective investments Consumer banking: Position for margin 328 compression via cost-ef
Slide 26: Deutsche Postbank: Considerable strategic optionality
Deutsche Postbank: Considerable strategic optionality Clients of German retail banks as of 2008, in million* Sparkassen ~50.0 Volksbanken ~30.0 14.1 11.0 Cooperation As of 2008 (figures for Germany only) Branches 856 930 10.1 Mobile sales force ~4,260 ~1,600 6.7 FTE ~21,130 ~15,460 ~4.0 3.3 * Source
Slide 27: Cautionary statements
Cautionary statements Unless otherwise indicated, the financial information provided herein has been prepared under International Financial Reporting Standards (IFRS). (IFRS) This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact
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