Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (November 2009)
36 slides from Deutsche Bank's debt investor presentation, Nov 25, 2009
Slide 1: Fixed Income Investor Roadshow London
Deutsche Bank Fixed Income Investor Roadshow London 24 – 25 November 2009
Slide 2: Agenda
Agenda 1 G Group Performance P f 2 Funding and Capital Management Investor Relations / Treasury 11/09 · 2
Slide 3: 3Q2009 Highlights
3Q2009 Highlights Revenues of EUR 7 7.22 bn Provision for credit losses of EUR 544 m Group Income before income taxes of EUR 1.3 bn, net income of EUR 1.4 bn performance Diluted EPS of EUR 2.10 Pre-tax return on average active equity of 15% (per target definition: 14%) Tier 1 ratio of 11
Slide 4: Development of total assets
Development of total assets In EUR bn 30 Jun 2009 30 Sep 2009 Leverage ratio(2) 1,733 1,660 25 25 24 928 915 (805) (745) IFRS N tti (1) U.S. Netting U S GAAP IFRS tti (1) U.S. Netting N U S GAAP 31 Mar M 30 JJun 30 S Sep ‘pro-forma’ ‘pro-forma’ 2009 2009 2009 (1) For 30 Sep 09 incl. incl derivatives
Slide 5: Loan book
Loan book xx IAS 39 impact on CIB loan book In EUR bn 3% 271 276 268 255 14 263 12 13 13 CI 209 217 25 34 38 37 35 145 151 154 144 137 CIB 107 112 102 105 109 108 108 110 113 PCAM 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 2008 2009 Germany excl. Financial Institutions: 86 87 88 93 96 96 96 No
Slide 6: Provision for credit losses
Provision for credit losses Related to IAS 39 reclassified assets In EUR m 2 070 2,070 1,000 591 526 544 236 485 1,129 114 135 406 492 308 329 413 164 1Q 2Q 3Q 4Q 1Q 2Q 3Q Jan-Sep Jan-Sep 2008 2009 2008 2009 Thereof: Th f CIB (11) (9) 66 361 357 779 323 46 1,459 125 145 169 229 169 221 214 440 605 T
Slide 7: Successful recalibration of a diversified platform
Successful recalibration of a diversified platform Revenues by business area Indicative Debt and other p products Equity q y Pre-crisis Current* Pre-crisis Current* Com- EM Com- EM MM & FX Prop Prop modities modities MM & FX Cash Cash Prime P i Prime Broke- Broke- rage rage Credit Rates Credit Rates
Slide 8: Sales & Trading revenues close to all-time highs …
Sales & Trading revenues close to all-time highs … Spec c item Specific e Mark-downs January – September, in EUR bn Net revenues (1) 0.4 1.6 0.8 4.2 10.2 10.4 10.6 83 8.3 6.7 4.3 2004 2005 2006 2007 2008 2009 (1) Includes charges related to Ocala Funding LLC of approx. EUR 350 m Note: 2004-2005 base
Slide 9: … but with improved asset efficiency and lower risk
… but with improved asset efficiency and lower risk Global Markets, indexed, 2005 / Oct 2008 = 100% Revenues to assets ratio(1) Assets Value-at-Risk Value at Risk 297 GM VaR GM constant input VaR 167 148 100 97 100 92 100 83 84 73 60 68 55 57 46 45 2005 2006 2007 2008 30 Sep 2005 2006 2007 2008 30 S
Slide 10: GTB: Current environment impacts revenues …
GTB: Current environment impacts revenues … Income before income taxes Key features In EUR m R Revenues Continued impact of weak corporate environment Negative effect from constant low interest rates across all products and regions 291 Trade Finance: Continued strong top-line 283 281 performan
Slide 11: … but upside potential exists
… but upside potential exists GTB, 2004 – 9M2009 IBIT Upside potential I EUR m In 9M Business External drivers 1,106 Cash Normalisation of interest rates 945 Management Rising cross border payments Recovery in global trade volumes 705 Trade Growing g demand for long g term Fi Finance financi
Slide 12: AWM: Recovery in the third quarter
AWM: Recovery in the third quarter Income before income taxes Key features In EUR m A Asset M Management Lower specific charges 242 188 Retail revenues and performance fees boosted by tightening spreads 134 Positive impact of repositioning / rightsizing Net new money of EUR 5 bn (850) (95) (
Slide 13: PBC: Positioning in a tight revenue environment
PBC: Positioning in a tight revenue environment Income before income taxes Revenues in key product areas In EUR m Severance(1) In EUR m Investment products (incl (incl. brokerage) Deposits Credit products 4 5 403 400 366 281 257 6 253 275 15 415 407 424 427 438 377 373 304 328 12 262 150 106 206 149
Slide 14: Net new money inflows in the third quarter 2009
Net new money inflows in the third quarter 2009 In EUR bn 11 11 10 1 PBC 5 AM 5 PWM (2) (2) (6) (17) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 Investor Relations / Treasury 11/09 · 14
Slide 15: A strategically and financially attractive transaction
A strategically and financially attractive transaction Price / AuM 1.0% Acquisition of 100% of Sal. Oppenheim S.C.A. for EUR 1.0 bn Includes Sal. Oppenheim S.C.A., BHF Asset Servicing GmbH (BAS) and Sal. Oppenheim Private Equity Partners S.A. (SOPEP) Transaction Additional Addi i l payment ffo
Slide 16: A major step forward in private wealth management
A major step forward in private wealth management Clear leadership in Germany … … and a top-4 position in Europe Rank Players PB AuM, in EUR bn (2008) Rank Players PB AuM, in EUR bn (2008) 1 44 (1) 47 141(1) 232 1 927 2 45(2) 2 407 3 29 3 250 (1) 4 24 4 164 58 189(1) 411 5 23 Deutsche Bank PWM 5 187
Slide 17: Summary
Summary 30 Sep 30 Sep 2008 2009 Income before income taxes (YTD, in EUR bn) 0.5 4.4 Profitability N t income Net i (YTD in (YTD, i EUR b bn)) 09 0.9 36 3.6 Pre-tax RoE (YTD, target definition)(1) (3)% 18% Tier 1 capital ratio 10.3% 11.7% Capital strength Core Tier 1 capital ratio 7.5% 8.1% Tier 1 ca
Slide 18: Agenda
Agenda 1 G Group Performance P f 2 Funding and Capital Management Investor Relations / Treasury 11/09 · 18
Slide 19: Funding and Liquidity: quantity, quality and consistency
Funding and Liquidity: quantity, quantity quality and consistency In EUR bn Unsecured U secu ed funding u d g Long-Term o g e Issuance ssua ce 511 481 Cash and liquidity reserves exceed 153 30% 16% 76 short-term wholesale funding Σ+36 Σ+22 139 103 + 47 405 81 358 30 Jun 2007 30 Sep 2009 Dec-2006 Dec
Slide 20: Funding Plan 2009: Completed
Funding Plan 2009: Completed Modest requirements for 2009 in light of nearly Funding Plan 2009 €100b iissuance iin 2007 €100bn 2007-2008 2008 in EUR bn Plan YTD Capital 2 1.5 Key demand drivers for funding plan Plain Vanilla Senior 4 5.2 – Balance sheet shrinkage reduced unsecured funding Struct
Slide 21: DB's European Retail Network
DB’s DB s European Retail Network Key contributor of liquidity Belgium: € 0.2bn Germany: € 5.2bn S it l d € 0.1bn Switzerland: 0 1b Portugal: € 0.1bn Italy: € 1.7bn S i € 0.5bn Spain: 0 5b Total in 2009: € 7.8bn Investor Relations / Treasury 11/09 · 21
Slide 22: DB's benchmark issuance strategy during the crisis
DB’s DB s benchmark issuance strategy during the crisis Benchmark Issuance: DB vs Peers1) Aug ‘07 to June ‘08 350 350 DB 5 year € new issue spread DB sourced €30bn via DB 5yr senior CDS benchmark transactions in 300 European Peer 300 the beginning of the crisis US Peer European Peer 250 250 July
Slide 23: Attractive funding without government aid
Attractive funding without government aid Key advantages 200 Spain N th l d Netherlands Lower L Longer L Greater G t Issuance costs vs. Libor (bps) 175 costs tenor flexibility UK Australia 150 U.S. Germany 125 SoFFin: 100 Savings: Delta: only EUR, 40-60bps 40 60bps up to 2yrs maturity 75 restriction
Slide 24: Liquidity Management
Liquidity Management Structural liquidity profile positive across all term buckets The liquidity profile aggregates all Liquidity Profile (as of September 2009), in €bn assets and liabilities across the maturity profile and calculates the 300 Assets cumulative net position per bucket Equity 250
Slide 25: Liquidity Management
Liquidity Management Strategic Liquidity Reserve (SLR) Deutsche Bank has created a Strategic Strategic Liquidity Reserve, in €bn Liquidity Reserve which it has substantially 60 increased between Dec-07 and Dec-08 (+€48bn) 50 The SLR constitutes portfolios of liquid 40 securities and other measur
Slide 26: Capital Management: Targets met
Capital Management: Targets met Our targets: Tier 1 ratio of ~10% and leverage BIS Tier 1 ratio development p ratio of 25x (based on US-GAAP numbers) 11.0% 11.7% In 3Q09, we reported our highest Tier 1 and 9.2% 9.3% 10.3% 10.1% 10.2% Target Core Tier 1 ratio of 11.7% and 8.1%, 7.5% 7.0% 7.1% 7.8
Slide 27: Increasing Tier 1 capital during the crisis
Increasing Tier 1 capital during the crisis €14.0bn of capital raised crisis-to-date 1.9 6.6 33.7 3.2 2.3 (6.4) 26.0 EUR 14.0 bn of capital raised 30 June Net q y Equity Hybrid y Other Other p 30 September 2007 income Capital Capital Capital measures 2009 Raisings Raisings1) Raisings2) & effects3) 1
Slide 28: Capital demand and supply: Overview
Capital demand and supply: Overview – Capital demand + Capital supply Regulatory impact on RWAs Retained earnings ~EUR 50 bn market risk (Basel II) Asset reduction initiative New Basel II rules will become effective b 1 JJan 2011 by Continue to reduce legacy and Level 3 assets Organic
Slide 29: Capital impact of acquisition of Sal. Oppenheim
Capital impact of acquisition of Sal. Sal Oppenheim Expected Tier 1 capital consumption per closing 1.6 3.7 Tier 1 capital consumption upon closing: EUR 3.7 bn Optionality for Deutsche Bank to 2.5 pay the purchase price with new 2.2 (1.3) Deutsche Bank shares (contribution-in-kind); use of optio
Slide 30: Additional information
financial transparency. Additional information Roadshow A Passion to Perform. Deutsche Bank
Slide 31: Deutsche Bank's credit ratings profile
Deutsche Bank’s Bank s credit ratings profile As of 12 November 2009 Senior unsecured debt Aa1 A+ AA- Outlook Negative Stable Negative Short term debt P1 P-1 A1 A-1 F1+ Investor Relations / Treasury 11/09 · 31
Slide 32: Composition of loan book and provisions by category
Composition of loan book and provisions by category xx 3Q2009 provision for credit losses, in EUR m In EUR bn, as of 30 Sep 2009 IAS 39 reclassified assets 544 123 134 287 Low loan to 263 value 35 Substantially hedged Highly diversified Substantially Short term / Fully collateralised on
Slide 33: Problem loans
Problem loans xx IAS 39 impact - IFRS impaired loans In EUR bn 8.2 8.7 5.7 4.6 6.8 3.9 4.5 6.7 3.2 3.3 3.7 3.2 27 2.7 25 2.5 06 0.6 08 0.8 11 1.1 26 2.6 26 2.6 62% 65% 53% 53% 50% 46% 47% 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 2008 2009 Problem loans not considered impaired under IFRS IFRS
Slide 34: Value of Level 3 assets
Value of Level 3 assets((1)) Asset sset c classes asses 3Q2009 3Q 009 development de e op e t In EUR bn Key changes: (25)% – Reduction in derivatives market values 80 2 – Sales and unwinds 7 64 10 60 52 4 2 9 8 45 33 28 Financial assets AfS / Other 15 13 16 Financial assets(2) Other trading assets
Slide 35: Risk-based analysis of monoline exposure
Risk-based analysis of monoline exposure Fair value assets, in EUR bn X% CVA in % of FV prior to CVA g y Risk category Non-investment g grade monolines AA monolines FV assets FV assets Provision- FV assets Provision- FV assets prior to prior to ing ratio after CVA ing ratio after CVA CVA CVA U.S. RM
Slide 36: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. them These statements are based on plans, estimates an
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