Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2013 Earnings Presentation
47 slides from Deutsche Bank's earnings presentation, Apr 29, 2013
Slide 1: 1Q2013 results
Deutsche Bank Deutsche Bank 1Q2013 results 29 April 2013
Slide 2: Comprehensively strengthening capital
Comprehensively strengthening capital Deutsche Bank capital structure Generic future capital structure Basel Basel 3 (fully loaded)(1) Basel 3 minimum requirements 2.5 pro-forma 2.0% Total capital ratio: 17.7% T2(5) 1.7% T2 3.8% 3.9% Tier 1 ratio: 16.0% hybridhybrid T1 T1 T2/ Addtional Issuance of E
Slide 3: Accelerated roadmap to 10% Basel 3 ratio
Accelerated roadmap to 10% Basel 3 ratio Basel 3 Common Equity Tier 1 (CET1) ratio fully loaded, loaded pro-forma pro forma Rationale to increase CET1 now — Success of accelerated reduction in capital it l d demandd and d strong t organici increase in fully loaded Basel 3 Common > 10.0% Equity Tier
Slide 4: Agenda
Agenda 1 Group results 2 Segment g results Deutsche Bank 1Q2013 results financial transparency. 4 Investor Relations 29 April 2013
Slide 5: 1Q2013 overview
1Q2013 overview 1Q2013 1Q2012 Income before income taxes (in EUR bn) 2.4 1.9 Net income (in EUR bn) 1.7 1.4 Profitability Post-tax return on average active equity 12.3% 10.3% Diluted EPS (in EUR) 1.71 1.45 31 Mar 2013 31 Dec 2012 Common Equity Tier 1 capital ratio 12.1% 11.4% Capital (Basel 2.5) Tie
Slide 6: Group financial performance – 1Q2013
Group financial performance – 1Q2013 1Q2013 Non-Core In EUR m Group Core Bank (1) Operations Unit Net revenues 9,391 8,964 427 Provision for credit losses (354) (267) (87) Total noninterest expenses (6,622) (6,085) (537) N Noncontrolling t lli interest i t t 0 (1) 1 IBIT (reported) 2,414 2,610 (196)
Slide 7: Net revenues
Net revenues In EUR bn 9.2 9.4 8.6 8.0 7.9 1Q 2Q 3Q 4Q 1Q 2012 2013 Deutsche Bank 1Q2013 results financial transparency. 7 Investor Relations 29 April 2013
Slide 8: Provision for credit losses
Provision for credit losses In EUR m Non-Core Operations Unit Core Bank 555 418 434 300 105 354 314 138 87 91 281 328 223 255 267 1Q 2Q 3Q 4Q 1Q 2012 2013 CB&S 32 10 23 58 48 GTB 32 47 35 53 96 PBC 160 216 189 216 111 Note: Divisional figures do not add up due to omission of Asset & Wealth Managemen
Slide 9: Noninterest expenses
Noninterest expenses In EUR bn 10 6 10.6 Compensation and benefits 3.2 General and 7.0 6.6 7.0 6.6 administrative expenses Other noninterest 3.6 3.6 3.4 3.3 3.3 expenses(1) 3.4 5.3 5.3 3.5 3.6 3.2 3.3 3.2 2.8 2.9 3.3 21 2.1 1H2012 0.2 (0.0) (0.0) 0.4 0.3 0.2 annualized: EUR 25.1 bn 1Q 2Q 3Q 4Q 1Q 20
Slide 10: Progress on Operational Excellence Program
Progress on Operational Excellence Program CtA and targeted savings Program to date progress In EUR bn In EUR bn CtA p per yyear Cumulative run-rate savings g 2H2012 1Q2013 4.5 4.5 4.0 2014 target 2014 target 2.9 2013 target 1 7 1.6 1.7 1.5 2013 target 0.6 0.7 1,1 0.4 0.2 0.6 0.2 0.2 05 0.5 0 40.4 0
Slide 11: Profitability
Profitability Income before income taxes Net income In EUR bn Adjusted IBIT(2) In EUR bn 24 2.4 1.9 1.7 1.1 1.4 1.0 0.3 0.7 0.8 (2.5) (3.2) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2012 2013 2012 2013 Post-tax return on equity(1), in % Effective tax rate, in % 10 5 5 (18) 12 25 31 33 21 31 FY2012: 0 1 : n.a. F
Slide 12: Basel 2.5 – Capital ratios and risk-weighted assets
Basel 2.5 – Capital ratios and risk-weighted assets 16.0 15 1 15.1 13.6 14.2 Tier 1 capital ratio, in % 12.9 13.4 11.4 12.1 10.0 10.2 10.7 Common Equity Tier 1 9.5 ratio in % ratio, 381 368 373 366 334 325 RWA, in EUR bn 4Q 1Q 2Q 3Q 4Q 1Q 2011 2012 2013 Note: Tier 1 ratio = Tier 1 capital / RWA; Com
Slide 13: Basel 2.5 – Common Equity Tier 1 capital and RWA development
Basel 2.5 – Common Equity Tier 1 capital and RWA development Common Equity Tier 1 capital RWA In EUR bn In EUR bn 1.7 0.1 0.2 39.3 (0.2) (0.3) 333.6 1.6 (0.2) 4.3 0.9 324.9 38.0 ((15.5)) 31 Dec Net Divi- CDI(2) Equity Other FX 31 Mar 31 Dec FX effect Credit Market Operational 31 Mar 2012 income(1) d
Slide 14: Reconciliation to Basel 3 pro-forma (fully loaded)
Reconciliation to Basel 3 pro-forma (fully loaded)(1) In EUR bn, bn as per 31 Mar 2013 RWA Common Equity Tier 1 capital 12.1% 13.6% 8.8% B 3 phase-in B 3 fully loaded B 3 phase-in B 3 fully loaded 61 386 380 2 53 11 325 (6) 8 5% 8.5% 39 33 (19) B 2.5 Total Total B 2.5 T1 Total Total deductions put a
Slide 15: Successful delivery on capital demand targets
Successful delivery on capital demand targets Material RWA reduction since … with largest contribution from 30 June 2012 … asset sale/hedging Pro forma Basel 3 RWA equivalent(1) relief 2H2012 – Pro-forma Pro-forma 1Q2013, in EUR bn 103 100% Basel 3 RWA equivalent(1) relief Core 43 Non-C (in EUR) Ass
Slide 16: Agenda
Agenda 1 Group results 2 Segment g results Deutsche Bank 1Q2013 results financial transparency. 16 Investor Relations 29 April 2013
Slide 17: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m In EUR m 1Q13 vs. 1Q13 vs. 1Q13 1Q12 4Q12 Impairment p of g goodwill and 1Q12 4Q12 other intangible assets Revenues (1) 4,604 4,813 3,430 (4)% 34 % 1,881 1,852 Prov. for credit (48) (32) (58) 50 % (17)% losses Noninteres
Slide 18: Sales & Trading debt and other products
Sales & Trading debt and other products Revenues Key features In EUR m Overall 1Q13 1Q12 4Q12 1Q2013 1Q2012 — Overall solid performance y-o-y y o y despite absence of LTRO stimulus seen in Revenues 1Q2012 and a slow down in client activity in the middle of the quarter Prov. for credit 3,165 losses F
Slide 19: Sales & Trading equity
Sales & Trading equity Revenues Key features In EUR m Overall 1Q13 1Q12 4Q12 1Q2013 1Q2012 — Strong performance in 1Q2013 1Q2013, up 12% yy-o-y, o y driven by higher revenues Revenues in Cash Equities and Equity Derivatives Prov. for credit losses 766 Cash Equities Noninterest 683 — Higher revenues
Slide 20: Origination & Advisory
Origination & Advisory Revenues Key features In EUR m Origination Overall 1Q13 1Q12 4Q12 1Q2013 1Q2012 Advisory — Record global market share share, same as in FY2012 Revenues — Gained share in EMEA and Asia Pacific from FY2012 Prov. for credit — Ranked No. 1 in EMEA 677 701 676 losses 638 Noninteres
Slide 21: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m In EUR m 1Q13 vs. 1Q13 vs. 1Q13 1Q12 4Q12 Impairment of goodwill and 1Q12 4Q12 other intangible assets Revenues 992 967 1,070 3% (7)% Prov. for credit 320 294 324 309 (96) (32) (53) 196 % 81 % losses Noninterest exp. (587) (
Slide 22: Asset & Wealth Management
Asset & Wealth Management Income before income taxes Key features In EUR m In EUR m 1Q13 vs. 1Q13 vs. 1Q13 1Q12 4Q12 Impairment of goodwill and 1Q12 4Q12 other intangible assets Revenues (1) 1,243 1,155 1,100 8% 13 % 208 221 Prov. for credit (13) 1 (2) n.m. n.m. losses 98 114 (2) (1,008) (947) (1,35
Slide 23: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m In EUR m 1Q13 vs. 1Q13 vs. 1Q13 1Q12 4Q12 1Q12 4Q12 Revenues 2,386 2,398 2,402 (1)% (1)% 460 482 Prov. for credit (111) (160) (216) (30)% (49)% 404 losses 367 Noninterest exp. (1,792) (1,770) (1,898) 1% (6)% 287 IBIT 482 460
Slide 24: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 1Q13 vs. 1Q13 vs. 1Q13 1Q12 4Q12 1Q12 4Q12 IBIT (255) (432) (694) (41)% (63)% thereof V&T differences (1) (159) (319) (62) (50)% 156 % (72) FX heding of (79) (82) (79) (3)% 0% net investments Bank levies (10) (73)
Slide 25: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 1Q13 vs. 1Q13 vs. 1Q13 1Q12 4Q12 Impairment of goodwill and 1Q12 4Q12 other intangible assets Revenues 427 243 (0) 76 % n.m. (1,226)(5) Prov. for credit (87) (91) (105) (5)% (17)% losses (216) (196) Noninterest exp. (
Slide 26: NCOU de-risking on track to achieve targets
NCOU de-risking on track to achieve targets Major 1Q2013 accomplishments (Pro-forma Basel 3 RWA equivalents) Size of Non-Core Operations Unit Adjusted assets(1), in EUR bn — De De-leveraging leveraging ahead of schedule 120(2) (28)% — Portfolio de-risking, primarily from sales of Former 95 86 low ra
Slide 27: Appendix
Deutsche Bank Appendix 27
Slide 28: Funding activities update
Funding activities update Funding cost development Observations In bps European Peer CDS(1) — 2012 recap: EUR 18 bn raised in 360 US Peer CDS(2) capital markets at an average spread DB 5yr Senior CDS 320 of L+64 bps DB issuance spread(3) 280 DB issuance volume — EUR 5 bn (~30%) by benchmark issuance
Slide 29: Funding Profile
Funding Profile Funding well diversified Highlights 1Q2013 As of 31 Mar 2013 — Funding liabilities materially unchanged at Financing Vehicles 2% EUR 1,107 bn 61% from most stable funding sources — Most stable funding sources provided Secured Funding and Capital Markets and approx. 60% of funding Equ
Slide 30: Successful delivery of Capital Demand Toolbox targets
Successful delivery of Capital Demand Toolbox targets 1Q2013 Solid capital demand reduction in 1Q2013 … … largely driven by asset sales Pro forma Basel 3 RWA equivalent(1) relief, Pro-forma relief in EUR bn forma Basel 3 RWA equivalent(1) relief 1Q2013 Pro-forma Pro 1Q2013, ~55 in EUR bn 23 100% Non
Slide 31: NCOU: Total adjusted assets
NCOU: Total adjusted assets(1) 31 Dec 2012 31 Mar 2013 In EUR bn In EUR bn AWM IAS 39 re- AWM IAS 39 re- classified classified CI 1.8 assets 1.5 assets CI 15.4 17.0 15.6 15.3 PBC: Other 4.2 Other Other 7.3 loans PBC: Other 4.0 6.1 loans 8 0 Monolines 8.0 7.4 Monolines PBC: Postbank 22.1 1.5 PBC: Pos
Slide 32: Impact of new capital allocation approach
Impact of new capital allocation approach Average active equity FY2012, in EUR bn ― Starting 2013, the book equity allocation is based on 10% Core Based on 10% Core Based on Tier 1 ratio (Basel 3) Tier 1 ratio (instead of 9% Core 9% Core Tier 1 ratio Tier 1 ratio previously) reflecting (Basel 2.5) E
Slide 33: Litigation
Litigation Mortgage repurchase Litigation reserves Contingent liabilities(1) demands/reserves In EUR bn In EUR bn In USD bn Demands R Reserves ~5.3 ~2.4 ~2.4 ~4.6 ~1.5 ~1.3 ~0.5 ~0.5 31 Dec 2012 31 Mar 2013 31 Dec 2012 31 Mar 2013 31 Dec 2012 31 Mar 2013 (1) Contingent liabilities, also referred to
Slide 34: IAS 39 reclassification
IAS 39 reclassification Carrying Value vs. Fair Value 1Q2013 developments In EUR bn — The g gap p between carrying y g value and fair value Dec Dec Dec Dec Mar has decreased by EUR 0.5 bn in 1Q2013 2009 2010 2011 2012 2013 — Decrease of fair value by EUR 1.2 bn largely Carrying Value 33.6 26.7 22.9
Slide 35: Balance sheet and risk weighted assets
Balance sheet and risk weighted assets XX RWA density incl. operational risk RWA(1) vs. balance sheet (adj. assets) XX RWA density excl. operational risk In EUR bn, as of 31 Mar 2013 ~27% 272 272 ~22% 1,225 , Avg RWA density Avg. Market Risk RWA 58 Non-derivative trading assets 62 ~25% 251 ~27% ~23%
Slide 36: Total assets (adjusted)
Total assets (adjusted) In EUR bn 1,209 Derivatives post- 1,225 Derivatives post- Positive market values netting netting from derivatives 70 72 Financial assets Trading securities 226 at FV through P&L 228 254 Trading assets 251 Trading assets Other trading assets 27 25 Reverse repos / securities bo
Slide 37: PBC business division performance
PBC business division performance In EUR m, m post post-minorities minorities (1) norisbank reported under Consumer Banking Germany (2) Net regular FVA amortization Deutsche Bank 1Q2013 results financial transparency. 37 Investor Relations 29 April 2013
Slide 38: Impaired loans
Impaired loans(1) In EUR bn Core Bank Non-Core Operations unit 10.5 10.9 10.3 10.1 10.1 98 9.8 4.0 4.2 4.4 4.0 3.7 3.8 60 6.0 60 6.0 62 6.2 64 6.4 63 6.3 64 6.4 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2011 2012 2013 Cov. 41% 42% 42% 42% 45% 48% ratio(2) Note: Figures may not add up due to rounding
Slide 39: Loan book
Loan book In EUR bn 417 412 415 408 402 400 NCOU 65 63 58 54 50 43 AWM 28 27 29 29 30 29 PBC 208 208 209 211 209 211 GTB 59 59 60 59 59 65 CB&S 58 55 58 56 54 52 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2011 2012 2013 Germany excl. Financial Institutions and Public Sector: 180 180 178 181 181 182 N
Slide 40: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR bn, bn as of 31 Mar 2013 Core Bank 354 1Q2013 provision for credit losses, in EUR m Non-Core Operations Unit 225 93 36 400 ― Low loan to value 43 (8) ― Partially hedged ― Highly diversified― Mostly (1) ― Short collate- ― Sub- S b (151) term
Slide 41: Group headcount
Group headcount Full-time Full time equivalents, at period end 31 Mar 2013 31 Mar 2012 30 Jun 2012 30 Sep 2012 31 Dec 2012 31 Mar 2013 vs. 31 Dec 2012 CB&S 9,936 9,754 9,535 9,046 8,792 (254) GTB 4,406 , 4,460 , 4,510 , 4,500 , 4,453 , 3 ((47)) AWM 7,015 7,000 6,884 6,548 6,413 (135) PBC 41 999 41,9
Slide 42: Number of shares
Number of shares In million Average used for EPS End of period numbers calculation 31 Dec 31 Dec 31 Mar FY2011 FY2012 1Q2013 2011 2012 2013 Common shares issued 929 929 929 929 929 929 Total shares in treasury (17) (9) (3) (25) 0 0 Common shares outstanding 913 921 927 905 929 929 Vested share award
Slide 43: Regional invested assets - AWM
Regional invested assets - AWM In EUR bn 31 Mar 2013 31 Mar 2013 31 Mar 2012 30 Jun 2012 30 Sep 2012 31 Dec 2012 31 Mar 2013 vs. vs. 31 Dec 2012 31 Mar 2012 Americas_Region 286 292 296 286 300 5% 5% Asia Pacific 50 52 54 55 58 4% 15% EMEA excl. Germany 296 288 295 293 281 (4)% (5)% Germany_Region 29
Slide 44: Invested assets - PBC
Invested assets - PBC In EUR bn 31 Mar 2013 31 Mar 2013 31 Mar 2012 30 Jun 2012 30 Sep 2012 31 Dec 2012 31 Mar 2013 vs. vs. 31 Mar 2012 31 Dec 2012 Private & Business Clients 301 294 297 293 290 ((11)) ((3)) Investment & Insurance products 141 136 138 139 142 1 3 Deposits excl. sight deposits 160 15
Slide 45: Balance sheet leverage ratio (adjusted)
Balance sheet leverage ratio (adjusted) In EUR bn, bn except ratios 2012 2013 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar Total assets (IFRS) 2,111 2,249 2,194 2,022 2,033 Adjustment for additional derivatives netting(1) (688) (782) (741) (705) (642) Adjustment for additional pending settlements netting and
Slide 46: Value-at-Risk
Value-at-Risk DB Group, Group 99% 99%, 1 day day, in EUR m Average VaR Constant VaR(1) EUR 3.8 bn Sales & Trading revenues EUR 3.5 bn 120 100 80 60 40 20 55 57 56 60 59 30 30 30 33 32 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 (1) Constant VaR is an approximation of how the VaR would hav
Slide 47: 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