Citigroup Smith Barney - Swiss Private Banking Roundtable

Transcription

1 Citigroup Smith Barney - Swiss Private Banking Roundtable Zurich, 11 July 2005 Pierre de Weck Global Head of Private Wealth Management Member of the Group Executive Committee

2 Agenda 1 PWM in context 2 Global business model 3 Track record and outlook Investor Relations 07/05-2

3 Agenda 1 PWM in context 2 Global business model 3 Track record and outlook Investor Relations 07/05-3

4 One of Deutsche Bank s five core businesses CIB PCAM Global Markets Global Banking Private Wealth Management Asset Management Private & Business Clients PWM Mission Statement To be the lead trusted advisor for wealthy individuals, their families and select individuals worldwide Top tier global franchise EUR 143 bn invested assets* More than 70,000 clients covered through 3,000 staff in 80 locations* Strong fit with DB Group s business portfolio Stable annuity franchise business with high PE ratio Low equity requirements Connectivity / cross-selling the group * As of 31 December 2004 Investor Relations 07/05-4

5 PWM offers access to Deutsche Bank's global know-how IFR - Bank of the Year 2003 Real Estate Funds EUR 42 bn Invested Assets* Group Invested Assets of EUR 901 bn * Absolute Return Strategies EUR 6 bn Invested Assets* Best Bank Overall Euromoney 2000, 2001, 2002 Derivatives House of the Year IFR Dec 2004, Risk June 2005 Credit Derivatives House of the Year Risk, IFR Dec Jan 2005 PWM client World s Best FX House Euromoney May 2005 No.1 Equity Derivatives Research Institutional Investor Dec 2004 No. 1 Portfolio Trading in Europe and in the US Institutional Investor Jan 2005 No.1 All investment grade Bonds in Euros Thomson, March 2005 World s Best High-Grade Debt House Euromoney July 2005 * as of 31 Dec 2004 Sources: External Rankings Investor Relations 07/05-5

6 PWM with attractive position among global peers Private Banking industry ranking 950 Invested assets as of 31 Dec 2004, in EUR bn PCS PWM UBS Merrill Lynch Credit Suisse JP Morgan Deutsche Bank Citibank HSBC Dresdner Bank ABN Amro Wachovia PB business Brokerage business DB PWM DB PCS Source: Scorpio Consulting, June 2005; DB PWM estimates Investor Relations 07/05-6

7 PWM s strategic programme Holistic business model Global investment process and House View Global product management with regional implementation Strengthening of cooperation between PWM and DB Group Upgrading US franchise PWM US and PCS Investing in Asia Capitalise on dominant market position in Germany Progress monitoring with key performance indicators (KPIs) Continued focused growth strategy Achieved Continued Investor Relations 07/05-7

8 Agenda 1 PWM in context 2 Global business model 3 Track record and outlook Investor Relations 07/05-8

9 Integrated holistic service offering Financial Planning Asset Allocation / risk management Discretionary Portfolio Management Succession planning Management of foundations Client s personal situation and objectives Client Tailored investment strategy Active Advisory Alternative Investments Philanthropy Cross Border Investments & Booking Monitoring and review Corporate Wealth Management Loans & Credit solutions FX and Structured products Investor Relations 07/05-9

10 Delivering the bank to our clients Relationship Management Team Philanthropic Wealth Wealth Planning CIO / Portfolio Manager PMIS regional & global product managers Credit Asset Management Investment Bank 3rd party providers PWM platform combines the strengths of DB Group with an open architecture solution Investor Relations 07/05-10

11 Our intellectual capital for private clients Global Investment Committee (GIC) House View & Strategic Asset Allocation PWM Global CIO; regional Strategists & CIO s, Global PMIS experts DWS Head Equity Fund Management Global Markets Chief European Economist Global Markets Senior European Equity Strategist House View & Strategic Asset Allocation Discretionary Portfolio Management (DPM) Active Advisory Tactical model portfolios by region along different risk profiles Ideas Products Global product idea creation by asset class to foster House View Regional product delivery Advisory Portfolio Tool supported implementation: optimising portfolios according to the client s individual needs Investor Relations 07/05-11

12 Truly global business model; strong in on- and offshore Global Head of PWM Regional Heads Invested Assets as of 31 Dec 2004 PCS EUR 37 bn US Onshore EUR 13 bn Germany EUR 35 bn International EUR 48 bn Asia Pacific EUR 10 bn Global Functions Product Management CIO COO Investor Relations 07/05-12

13 PWM s US businesses compete in a difficult environment US fee-based players Pre-tax margin (%) US commission-based players Pre-tax margin (%) e* e* High Median Low High Median Low PWM US Onshore and PCS with dedicated growth strategy and systematic hiring * First BCG estimate, final results of survey expected for August 2005 Source: BCG Global Wealth Report Investor Relations 07/05-13

14 Revenue growth through active change of product mix - improved return on assets Example: PWM Asia-Pacific Offshore: Selected revenue components 2004 vs % 27% % 8% 3% 10% 5% 10% 9% 10% 0% 0% Depository Products Bonds Mutual Funds Alternative Investments Discretionary Portfolio Management Structured Products Low Return on Assets High Investor Relations 07/05-14

15 Successful client retention at PWM Client retention to Deutsche Bank in Germany % of PWM clients 51% 17% 64% 27% 68% 27% 34% 37% 41% Loyal PWM clients Very loyal PWM clients Source: Infratest Investor Relations 07/05-15

16 Successful client servicing results in financial performance for PWM Client needs Market expectations towards PWM Performance Indicators Performance Product -/Market know-how New client acquisition Net new assets Risk diversification Joint success Margin expansion Return on assets Estate planning Operational efficiency Cost- incomeratio Tax optimisation Investor Relations 07/05-16

17 Agenda 1 PWM in context 2 Global business model 3 Track record and outlook Investor Relations 07/05-17

18 Business managed globally along key performance indicators (KPI) Cost-income ratio (CIR) Down 8ppt since 2002 Growth financed by efficiency gains Improved quality of operating platform Net new assets (NNA) Increased five-fold 2004 vs Reaching best-in class level Continued strong performance expected Return on assets (RoA) Consistently sound progress since 2002 Stickiest KPI to turnaround Dedicated margin expansion strategy Investor Relations 07/05-18

19 Net new assets on best-in-class level paving the way for tomorrow s revenues NNA in % of invested assets (IA) Industry benchmark: Peer comparison NNA 4.9% NNA 2.7% NNA (0.9%) 4.4% 9.4 NNA % Top tier Middle tier Bottom tier Source: BCG Global Wealth Reprot New IA Lost IA Investor Relations 07/05-19

20 Focus now is margin expansion Phase 1: Phase 2: Increase of net new assets (NNA) Acquisition of new clients, share of wallet Hiring of relationship managers Client retention programmes Building product infrastructure Turnaround of investment performance Global product experts & asset class teams Open architecture Increase of return on assets (RoA) Increase share of discretionary portfolio management High-value added products according to personalised asset allocation Innovative product development and delivery in cooperation with other DB businesses Investor Relations 07/05-20

21 Summary 1 PWM in context Core division within Deutsche Bank 2 Global business model Trusted advisor Core offering around asset allocation and risk management 3 Track record and outlook Best-in-class net new asset gatherer Increasing focus on return on assets Investor Relations 07/05-21

22 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 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 Business Realignment Program, 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 24 March 2005 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 1Q2005 Financial Data Supplement, which is accompanying this presentation and available on our Investor Relations website at Investor Relations 07/05-22