Funding Update Alexander von zur Mühlen - Group Treasurer Investor Meeting, 24 February 2011 - Deutsche Bank
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Deutsche Bank
Funding Update
Alexander von zur Mühlen
Group Treasurer
Investor Meeting,
Meeting 24 February 2011
Deutsche Bank Financial transparency.
TreasuryDeutsche Bank’s funding costs are a source of competitive
advantage
Funding cost development Observations
European Sovereign CDS — Challenging
Ch ll i market
k t conditions
diti d
due tto
In bps
iTraxx Senior Financials
240 DB 5yr Senior CDS economic concerns, regulatory
DB issuance spread developments and Eurozone difficulties
DB funding activity
200 — DB ffunding
di spreads
d remained
i d relatively
l ti l
stable and market access unaffected
160 throughout 2010
120
— € 23 b
bn iissued
d iin 2010 att an average
spread of L+66; 42% sold via retail
networks
80
— Modest
M d t 2011 F Funding
di Pl Plan off € 26 bbn
40 (€ 22 bn debt issuance, € 4 bn term
retail deposits), flexibility to adjust split
1Q2010: € 2Q2010: 3Q2010: 4Q2010: YTD depending on market conditions;
0 € 8 bn € 7 bn € 4 bn € 4 bn € 6.8 bn
45% completed YTD
31 Dec 31 Mar 30 Jun 30 Sep 31 Dec
2010 2011
Source: Bloomberg
Deutsche Bank Financial transparency. 2
TreasuryTimely and cost-effective funding through the crisis
~ €150 bn raised in capital markets since 2007
S i benchmark
Senior b h k issuance:
i Deutsche
D t h B Bankk vs. peers
Bps over Euribor / Libor
350 350
DB 5yr EUR new issue spread
DB 5
5yr senior
i CDS
European Peer
300 US Peer 300
European Peer
250 250
200 200
150 150
100 100
60
50 50
0 0
Jul‐07 Dec‐07 Jun‐08 Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10 Feb - 11
DB sourced € 30bn through …result: no benchmark DB returns 2010 issuance 2011: $2.6 bn plus
benchmark issuance at attractive funding needed during crisis after 14 month plan completed €2 bn in
prices… months hiatus by September benchmarks YTD
1) Triangles represent government-guaranteed issues and diamonds unguaranteed; all of Deutsche Bank’s issues are non-government-guaranteed
Deutsche Bank Financial transparency. 3
TreasuryFunding update
45% of plan completed YTD
2011: YTD Funding vs. Plan
Funding Plan 2011
in € bn Plan 2011 YTD
– Issuance plan comprises both benchmark transactions together with
arbitrage-driven structured note and plain vanilla private placements Capital 0 0
– Deposit
D it campaigns
i with
ith contractual
t t l maturity
t it emphasis
h i off >1yr
1 Plain Vanilla Senior 11 4.6
– Fungibility between deposits and debt issuance allows flexibility
Structured Senior 9 2.2
depending on market development
Pfandbrief 2 0
Issuance activities YTD T t l Issuance
Total I 22 68
6.8
– YTD issuance at € 6.8bn (vs, € 3.1bn pro-rata plan), avg. tenor: 4.2yrs,
avg. spread: 61bps Stable Deposits 4 4.9
– Raised $ 2.6bn in US market at favourable levels relative to Euromarket Total 26 11.7
– Issued €2 bn 2yr
y FRN at 3m€+45bps; p ; jjoint largest
g and tightest
g 2yy FRN
from non-AAA bank in 2011 DB YTD Issuance Activities
240 DB 5y CDS
Deposit campaign update 220 iTraxx Senior Financials
– € 4.9bn generated YTD from 12-month deposit campaign vs. € 4bn full 200 European Sovereign CDS
year plan
l 180
Basis points
$1bn
160
– Above-plan deposit generation allows more flexible approach to issuance 3.25% 5y
$0.5bn $0.75bn
140 fixed €2bn
2y FRN $0.3bn
plan 5y
2y FRN 5y fixed tap
120 extendible
Pfandbrief program 100
80
– Up to € 2bn mortgage Pfandbrief planned for 2011
60
– Significant cost saving vs unsecured funding, particularly for longer
40
tenors 31-Dec 06-Jan 12-Jan 18-Jan 24-Jan 30-Jan 05-Feb 11-Feb 17-Feb
Source: Bloomberg
Deutsche Bank Financial transparency. 4
TreasuryBalanced maturity profile
Capital markets maturities as per 31 Dec 2010
25
20
15
€bn
10
5
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+
2021
Concious decision, also during crisis, not to compromise duration of portfolio for
short term gains
short-term
Capital markets maturities of €18bn in 2011; balanced outflows for the next
10yrs not exceeding € 20bn p.a.
Provides flexibility to increase stock of term debt as response to regulatory
changes (NSFR: Net Stable Funding Ratio)
Deutsche Bank Financial transparency. 5
TreasuryCautionary statements
This presentation contains forward
forward-looking
looking statements. Forward
Forward-looking
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.
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, y, in Europe,
p , in the United States and elsewhere from which we
derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of
asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our
strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in
our filings with the U.S.
U S Securities and Exchange Commission.
Commission Such factors are described in detail in our SEC Form 20-F
of 16 March 2010 under the heading “Risk Factors.” Copies of this document are readily available upon request or can be
downloaded from www.deutsche-bank.com/ir.
Deutsche Bank Financial transparency. 6
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