Annual General Meeting 2004

Transcription

1 Annual General Meeting 2004 Dr. Josef Ackermann Spokesman of the Board of Managing Directors Frankfurt, 2 June 2004 A Passion to perform

2 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

3 Creating value for our shareholders Results 2003 and 1st Quarter 2004 Our business in Germany Strategy for continued growth 2

4 Transformation recognized by the market Share price development, in EUR (1) Indexed, 1 Jan 2003 = 100 Index of international peers (3) 46% % 18% Index of German peers (2) 1 Jan Jan May 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 3

5 Creating value for our shareholders Dividends per share Capital returned In EUR 1.50 In EUR bn Total dividend payouts (1) Share buybacks (2) 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

6 Creating value for our shareholders Results 2003 and 1st Quarter 2004 Our business in Germany Strategy for continued growth 5

7 Revenue growth in 2003 Revenues, in EUR bn Total revenues Underlying revenues %* * Based on underlying revenues and adjusted for currency movements and de-/consolidations 6

8 Costs reduced by EUR 6.0 bn since 2001 Operating cost base, in EUR bn 23.3 (3.9) 19.4 (6.0) 17.3 Underlying costincome ratio 2001* % 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

9 Strong improvement in profitability in 2003 In EUR bn Underlying pre-tax profit 3.6 In % Underlying pre-tax return on equity %

10 Successful risk management Problem loans Provisions for credit issues In EUR bn In EUR bn (39%) 2.1* (50%) Dec Dec Dec * Includes change in measurement of other inherent loss allowance of EUR 0.2 bn 9

11 Revenue growth in the 1st quarter 2004 Revenues, in EUR bn Total revenues Underlying revenues %* * Based on underlying revenues and adjusted for currency movements and de-/consolidations 10

12 Significant improvement in profitability in the 1st quarter Underlying pre-tax profit In EUR bn 45% Underlying pre-tax return on equity In % (annualized)

13 CIB performance in the 1st quarter Revenues Pre-tax profit In EUR bn (1) 17% (2) In EUR m 1, (1) 1, % (1) Sale of substantial parts of the Global Securities Services business (2) Based on underlying revenues and adjusted for currency movements and de-/consolidations

14 PCAM performance in the 1st quarter Revenues Pre-tax profit In EUR bn 2.0 In EUR m 7%* 51% * Based on underlying revenues and adjusted for currency movements and de-/consolidations 13

15 Creating value for our shareholders Results 2003 and 1st Quarter 2004 Our business in Germany Strategy for continued growth 14

16 Our business in Germany Deutsche Bank Group, 2003 Share of DB Group In EUR bn Revenues (1) Loans Deposits (2) Invested assets % 57% 34% 41% Private clients (3) Corporate clients (4) (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 15 ~ 11,500,000 54% Employees (5) 29,857 44% ~ 26,000 47%

17 Leading bank for private clients in Germany Products 3.5 million current accounts Customer deposits ~ EUR 49 billion Consumer loans / mortgages ~ EUR 51 billion in loans Investment / pension products ~ EUR 105 billion in invested assets Distribution channels 770 Investment & Financial Centers ~ 1,200 mobile advisors Telephone banking with 1.4 million clients Online banking with 2.4 million clients Note: Data as of 31 Dec 2003; All data relates to Corporate Division Private & Business Clients 16

18 Full range of products for German Mittelstand Lending business (1) As of 31 Dec 2003, in EUR bn Product offering Revenues FY2003 by product type (2) Lending 38% Cash management 21% Other 15% a 14% Capital market products 12% Trade finance Drawn Credit lines (1) Global Banking Division and Private & Business Clients (2) Global Banking Division 17

19 Creating value for our shareholders Results 2003 and 1st Quarter 2004 Our business in Germany Strategy for continued growth 18

20 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 19

21 CIB top 3 global position Net revenues FY2003: CIB vs. major peers, in EUR bn Other revenues GTB Transaction services Loan products CB&S Investment banking Sales & trading Citigroup JP Morgan Chase Goldman Sachs Morgan Stanley UBS Merrill Lynch Credit Suisse 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 20

22 CIB the path to market leadership FX Equity derivatives International bond issuance Equity capital markets >20 17 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 21

23 PCAM a leading asset gatherer Fidelity Investments PCAM invested assets, as of 31 Dec 2003, in EUR bn UBS (1) Merrill Lynch State Street (2) Deutsche Bank Morgan Stanley Credit Suisse Citigroup JPM Chase Goldman Sachs (1) Excluding Private Banks und GAM (2) Group Note: in comparison to our peer group; currency translation into EUR sport rates Source: Company data 22

24 Our mission We compete to be the leading global provider of financial solutions for demanding clients creating exceptional value for our shareholders and people. 23

25 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 This presentation contains non-u.s. GAAP financial measures. For a reconciliation to directly comparable figures reported under U.S. GAAP refer to the 2004 Financial Data Supplement, which is accompanying this presentation and available on our Investor Relations website at 24