Private & Business Clients Rainer Neske

Transcription

1 Private & Business Clients Rainer Neske Head of Private & Business Clients Member of the Group Executive Committee Frankfurt / London, June

2 Agenda 1 A dynamic business 2 Update on growth initiatives 3 Managing the cost base 4 Growth and value creation Investor Relations 06/07 2

3 A dynamic business Expansion of distribution network Initiatives & Acquisitions Co-operations Investor Relations 06/07 3

4 with growth across the board In EUR bn Revenues Invested assets Loan book 4.5 CAGR 7% CAGR 11% CAGR 10% Dec Mar 31 Dec Mar Note: 2004 based on U.S. GAAP; from onwards based on IFRS Investor Relations 06/07 4

5 and a track-record of delivery Income before income taxes, in EUR m Target: EUR >1.3 bn Target: EUR 1 bn 1,005 1,005 1, Q Underlying U.S. GAAP Reported IFRS Note: figures are underlying results based on U.S. GAAP; from onwards figures are reported results based on IFRS Investor Relations 06/07 5

6 Agenda 1 A dynamic business 2 Update on growth initiatives 3 Managing the cost base 4 Growth and value creation Investor Relations 06/07 6

7 A stable business model based on two core competencies Private & Business Clients Advisory Banking Consumer Banking 1 Berliner Bank 2 Norisbank 3 Poland: branch network 4 Poland: db kredyt 5 India: branch business 5 India: credit card business 6 China: cooperation HuaXia/branches Distinctive advisory banking solutions for personal, private and business banking customers 6 China: launch credit card business Consumer finance products complemented by basic banking products with attractive pricing Investor Relations 06/07 7

8 1 Berliner Bank: Smooth integration resulting in strong business results Integration success 1Q Smooth change of ownership 5,300 net new clients in the first quarter Client business volume integrated First group revenues synergies realized Post-Integration Grow with existing business model on DB platform: - Strengthen PBC in our core market proposition (German affluents) - Revenue growth - Client base growth IT migrated to DB platform Investor Relations 06/07 8

9 2 Norisbank: Successful integration shows first business results Closing Today Post-Integration Portfolio Ca. 330,000 clients EUR 1.4 bn loan portfolio and EUR 1.4 bn deposits Stable client base Stable client business volume Growing client base to 1 million in 2010 Staff No captive staff Sales force in place (including staff temporarily hired from Teambank and own staff) New salary model and own hires Products Pure consumer finance products Successful products launched (e.g. RiesterRente, NorisTagesgeld) Focused assortment Platform Nationwide branch network with 98 branches No captive IT platform Operating on existing IT platform, migration of the infrastructure to DB systems Deutsche Bank Credit Scoring tool implemented Entire branch network processes and IT up and running on DB platform Investor Relations 06/07 9

10 3 Poland: Investments in advisory banking pay off Number of branches Revenues x In EUR m x Dec Dec Dec 31 Mar Q annualised Number of employees Client Business Volume* x In EUR m 813 1,276 3x 2,160 2, Dec Dec Dec 31 Mar 31 Dec Dec Dec 31 Mar * Client Business Volume = Invested assets and sight deposits and loans Note: 2004 and 2005 based on U.S. GAAP; from onwards based on IFRS Investor Relations 06/07 10

11 4 Poland: Successful entry in consumer finance market Number of db kredyt-shops Revenues +140% Feb 30 Apr 30 Jun (Target) Jan - Feb Jan - Apr Jan Jun (Forecast) Number of employees +71% In EUR m Client Business Volume* 7x Feb 30 Apr 30 Jun (Forecast) 28 Feb 30 Apr 30 Jun (Forecast) * Client Business Volume = Invested assets and sight deposits and loans Investor Relations 06/07 11

12 5 India: Successful start for branch business and credit card activities Delhi Clients In thds. Credit card business only x Kolkata 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar approved new licences Bangalore Mumbai Chennai ~ 900 FTE Branch business 8 branches 2 licences to be executed in 2H Application for new licences Credit card business CBV* Revenues In EUR m Mar Jun 5x Sep 7x Dec Mar 1Q 2Q 3Q 4Q 1Q * Client Business Volume = Invested assets and sight deposits and loans Investor Relations 06/07 12

13 6 China: Market entry via own branches and cooperation HuaXia investment 10% stake in HuaXia Bank: 243 branches in Tier 1 and 2 cities 8.5m clients 7th largest listed bank in China in terms of market cap ~ 200% upward move of HXB share price since closing in May HuaXia cooperation & PBC business Cooperation with HuaXia Bank includes: Exclusive credit card cooperation to be launched in 2Q Development of joint affluent proposition Knowledge transfer in risk management area started to further strengthen HuaXia Bank s business operations, in particular: Credit Risk Management Asset Liability Management Operational Risk Management DB with board seat in HuaXia Bank s board of directors PBC business: Branch openings in Beijing and Shanghai in March Investor Relations 06/07 13

14 Investment in Emerging Markets will continue Poland Continue with branch network expansion Extend Consumer Finance activities India Continue with branch network expansion Further develop credit card business China Extend business cooperation with Hua Xia Bank (mainly credit card business) Vietnam Develop cooperation with Habubank Investor Relations 06/07 14

15 Agenda 1 A dynamic business 2 Update on growth initiatives 3 Managing the cost base 4 Growth and value creation Investor Relations 06/07 15

16 Costs are managed in a systematic way Targets Cost/Income-Ratio Cost structure Operating model Cost optimization actions Structural/strategic Operational/tactical Service relationships Governance Accountability/Responsibility KPIs Cost committees Cost management processes Policies Incentives Cost culture Discipline Commitment Communication Transparency Investor Relations 06/07 16

17 After bold restructuring rigid cost management and step by step optimization of cost base Some cost optimization projects since 2004 Timing Results Germany: Infrastructure Move on new branch IT infrastructure % reduction of branch IT infrastructure costs Germany: Credit factory Bundling of credit processing in two centers % reduction of direct operating costs for credit servicing Italy: Captive Service Provider Transfer of selected support functions in a separate entity % cost reduction of bundled support functions Globally: Cost management Rigid control of discretionary spending to enforce IBIT Ongoing Managing towards PBC s global CIR target of 68% Investor Relations 06/07 17

18 Results include massive investments in future growth Noninterest expenses, in EUR m PBC total PBC without initiatives* CIR PBC total CIR PBC without initiatives* CAGR 8% % CAGR 3% % 72.2% 71.3% 71.0% 68.8% Q annualised * Norisbank, Berliner Bank, Poland, Asia Note: 2005 figures based on U.S.GAAP, from onwards based on IFRS Investor Relations 06/07 18

19 Agenda 1 A dynamic business 2 Update on growth initiatives 3 Managing the cost base 4 Growth and value creation Investor Relations 06/07 19

20 Revenue growth outperforming GDP growth in all markets PBC revenues, in EUR bn Regional split GDP growth (3) CAGR 7% CAGR > 8% > 6 Germany CAGR 6% CAGR 9% 1.4% Europe (1) 1.1 CAGR 8% 1.2 CAGR 5% 1.5% 2004 Target 2008 Emerging Markets (2) (1) Italy, Spain, Belgium, Portugal (2) Poland, India, China (3) CAGR 2004-, weighted average, source: Global Insight WWM Note: 2004 based on U.S. GAAP, from onwards based on IFRS Investor Relations 06/ CAGR 67% 0.1 CAGR 79% 2004 Indicative %

21 PBC will deliver on clear targets Strategic focus Vision 2008 Advisory Banking Consumer Banking Germany Keep revenue momentum and capitalise on acquisitions > EUR 6 bn revenues Europe Emerging Markets One bank Strengthen visibility of our franchises Get foothold in high growth regions Further capitalise on one bank philosophy > EUR 1.3 bn pre-tax profit Cost / income ratio ~ 68% Investor Relations 06/07 21

22 Cautionary statements The information provided herein does not represent a full set of financial statements in accordance with IAS 1 and IFRS 1. Therefore it may be subject to adjustments based on the preparation of the full set of financial statements for. The segment information is based on IFRS 8: Operating Segments. IFRS 8, whilst approved by the International Accounting Standards Board (IASB), has yet to be endorsed by the European Union. This presentation also 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. 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 forward-looking 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 implementation of our management agenda, 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 27 March on pages 9 through 15 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from This presentation contains non-ifrs financial measures. For a reconciliation to directly comparable figures reported under IFRS refer to the 1Q Financial Data Supplement, which is accompanying this presentation and available on our Investor Relations website at Investor Relations 06/07 22