Bank of the Year 2003

Annual General Meeting 2004
Dr. Josef Ackermann
Spokesman of the Board of Managing Directors
Frankfurt, 2 June 2004
A Passion to perform
Bank of the Year 2003
“Transformation is an overused word. For one
firm, however, the word perfectly describes the
shift to a lean, aggressive, focused universal bank.
Deutsche Bank is IFR’s Bank of the Year.”
Source: International Financing Review (IFR), “Review of the year 2003“
1
2
1
Creating value for
our shareholders
2
Results 2003 and
1st Quarter 2004
3
Our business
in Germany
4
Strategy for
continued growth
Transformation recognized by the market
Share price development, in EUR(1)
Indexed, 1 Jan 2003 = 100
Index of
international peers(3)
46%
22%
18%
100
Index of
German peers(2)
1 Jan 2003
1 Jan 2004
(1) International peers’ share prices converted into EUR based on daily FX rates
(2) Allianz / Dresdner Bank, Commerzbank, HypoVereinsbank
(3) Citigroup, JP Morgan Chase, Merrill Lynch, UBS, Credit Suisse
Source: Bloomberg
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28 May 2004
Creating value for our shareholders
Dividends per share
Capital returned
In EUR
In EUR bn
5.5
1.50
1.30 1.30 1.30
1.6
Total dividend payouts(1)
1.12 1.15
0.92
2003
2002
2001
2000
1999
1998
1997
3.9
Proposed
(1) For the financial years 2002 and 2003 –
excluding shares in Treasury
(2) Since the beginning of 2002 – excluding buybacks for equity-based compensation programs
4
Share buybacks(2)
5
1
Creating value for
our shareholders
2
Results 2003 and
1st Quarter 2004
3
Our business
in Germany
4
Strategy for
continued growth
Revenue growth in 2003
Revenues, in EUR bn
Total revenues
Underlying revenues
26.5
21.3
9%*
2002
2003
* Based on underlying revenues and adjusted for currency movements and de-/consolidations
6
Costs reduced by EUR 6.0 bn since 2001
Operating cost base, in EUR bn
23.3
(3.9)
(6.0)
19.4
17.3
Underlying costincome ratio
2001*
2002
2003
89%
85%
79%
* 2001 operating cost base pro forma, including full year net effect of Scudder / RREEF / Herold transactions (EUR 0.8 bn);
underlying CIR not adjusted for Scudder / RREEF / Herold
Note: Figures may not add up due to rounding differences
7
Strong improvement in profitability in 2003
Underlying pre-tax return on
equity
Underlying pre-tax profit
In EUR bn
In %
13
3.6
163%
1.4
2002
4
2003
2002
8
2003
Successful risk management
Problem loans
Provisions for credit issues
In EUR bn
In EUR bn
(50%)
(39%)
12.7
2.1*
10.8
6.6
31 Dec
2001
31 Dec
2002
1.1
1.0
31 Dec
2003
2001
* Includes change in measurement of other inherent loss allowance of EUR 0.2 bn
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2002
2003
Revenue growth in the 1st quarter 2004
Revenues, in EUR bn
Total revenues
Underlying revenues
6.2
5.0
13%*
1Q
2003
1Q
2004
* Based on underlying revenues and adjusted for currency movements and de-/consolidations
10
Significant improvement in profitability in the 1st quarter
Underlying pre-tax return
on equity
Underlying pre-tax profit
In EUR bn
In % (annualized)
45%
22
1.4
1.0
1Q
2003
13
1Q
2003
1Q
2004
11
1Q
2004
CIB – performance in the 1st quarter
Revenues
Pre-tax profit
In EUR bn
In EUR m
4.1
0.5(1)
1,448
4.0
1,165
508(1)
17%(2)
3.6
940
1Q
2003
1Q
2004
1Q
2003
(1) Sale of substantial parts of the Global Securities Services business
(2) Based on underlying revenues and adjusted for currency movements and de-/consolidations
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24%
1Q
2004
PCAM – performance in the 1st quarter
Revenues
Pre-tax profit
In EUR bn
In EUR m
7%*
2.0
51%
410
2.1
272
1Q
2003
1Q
2004
1Q
2003
* Based on underlying revenues and adjusted for currency movements and de-/consolidations
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1Q
2004
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1
Creating value for
our shareholders
2
Results 2003 and
1st Quarter 2004
3
Our business
in Germany
4
Strategy for
continued growth
Our business in Germany
Deutsche Bank Group, 2003
Share of DB Group
In EUR bn
Revenues(1)
7.3
33%
Loans
84
57%
Deposits(2)
105
34%
Invested assets
389
41%
Private clients(3)
~ 11,500,000
54%
~ 26,000
47%
29,857
44%
Corporate clients(4)
Employees(5)
(1) Underlying revenues
(2) Deposits with DB Group units in Germany
(3) All clients of Group Division Private Clients and Asset Management
(4) All clients of Group Division Corporate and Investment Bank
(5) Full-time equivalent
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Leading bank for private clients in Germany
Products
„
3.5 million current accounts
„
Customer deposits
~ EUR 49 billion
„
„
Distribution channels
Consumer loans /
mortgages
~ EUR 51 billion in loans
Investment / pension products
~ EUR 105 billion in invested
assets
Note: Data as of 31 Dec 2003;
All data relates to Corporate Division Private & Business Clients
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„
770 Investment &
Financial Centers
„
~ 1,200 mobile advisors
„
Telephone banking with
1.4 million clients
„
Online banking with
2.4 million clients
Full range of products for German „Mittelstand“
Lending business(1)
Product offering
Revenues FY2003 by product type(2)
As of 31 Dec 2003, in EUR bn
Cash
management
61
Lending
44
38%
21%
15%
a
14%
12%
Other
Capital market
products
Drawn
Credit lines
(1) Global Banking Division and Private & Business Clients
(2) Global Banking Division
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Trade
finance
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1
Creating value for
our shareholders
2
Results 2003 and
1st Quarter 2004
3
Our business
in Germany
4
Strategy for
continued growth
Phase 2 – strategic initiatives for further profitable growth
Maintaining strict cost,
capital and risk discipline
Capitalizing on
global leadership in CIB
Delivering profitable
growth in PCAM
Establishing Deutsche Bank
as the most reputable brand
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CIB – “top 3” global position
Net revenues FY2003:
CIB vs. major peers, in EUR bn
Other revenues
17.6
16.2
GTB
Transaction services
CB&S
Loan products
Investment banking
Sales & trading
14.2
1.9
1.5
1.5
11.7
10.0
9.2
8.9
8.0
Merrill
Lynch
Credit
Suisse
9.2
Citigroup JP Morgan
Chase
Goldman Morgan
Sachs
Stanley
UBS
Note: Translation into EUR based on average quarterly FX rates; figures may not add up due to rounding difference;
UBS: only total investment banking and loan products available
Source: Company data
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CIB – the path to market leadership
FX
1995
International bond
issuance
Equity derivatives
2003
1995
2003
1995
2003
1
2
Equity capital
markets
1995
2003
2
7
7
17
22
>20
Note: Ranking in global key products 1995 versus 2003
Source:FX: Euromoney
Equity derivatives: International Financing Review (IFR); Base year: 1997 (no data available for previous periods);
>20 = Deutsche Bank not ranked
International bond issuance: Thomson Financial („all international bonds“)
Equity capital markets: Thomson Financial („equity & equity linked“); proportional credit to bookrunners
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PCAM – a leading asset gatherer
PCAM invested assets, as of 31 Dec 2003, in EUR bn
Fidelity Investments
UBS(1)
Merrill Lynch
State Street(2)
872
Deutsche Bank
Morgan Stanley
Credit Suisse
Citigroup
JPM Chase
Goldman Sachs
0
200
400
600
(1) Excluding Private Banks und GAM
(2) Group
Note: in comparison to our peer group; currency translation into EUR sport rates
Source: Company data
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800
1.000
1.200
1.400
1.600
Our mission
“We compete to be the leading global provider of
financial solutions for demanding clients creating
exceptional value for our shareholders and people.“
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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 expectations. Any statement
in this presentation that states our intentions, beliefs, expectations or predictions (and the assumptions
underlying them) is a forward-looking statement. These statements are based on plans, estimates and
projections as they are currently available to the management of Deutsche Bank. Forward-looking
statements therefore speak only as of the date they are made, and we undertake no obligation to
update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important
factors could therefore cause actual results to differ materially from those contained in any forwardlooking statement. Such factors include the conditions in the financial markets in Germany, in Europe,
in the United States and elsewhere from which we derive a substantial portion of our trading revenues,
potential defaults of borrowers or trading counterparties, the reliability of our risk management policies,
procedures and methods, and other risks referenced in our filings with the U.S. Securities and
Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 25 March 2004
in the section "Risk Factors." Copies of this document are available upon request or can be
downloaded from www.deutsche-bank.com/ir.
This presentation contains non-U.S. GAAP financial measures. For a reconciliation to directly
comparable figures reported under U.S. GAAP refer to the 1Q2004 Financial Data Supplement, which
is accompanying this presentation and available on our Investor Relations website at www.deutschebank.com/ir.
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