Deutsche Bank 德意志银行 SWOT 2010

Company Profile

Publication Date: 30 Jun 2010

www.datamonitor.com

Americas

Europe, Middle East & Africa

Asia Pacific

245 5th Avenue

119 Farringdon Road

Level 46

London

4th Floor

2 Park Street

EC1R 3DA

Sydney, NSW 2000

New Y ork, NY 10016

United Kingdom

USA

Australia

t: +1 212 686 7400

t: +44 20 7551 9000

t: +61 2 8705 6900

f: +1 212 686 2626

f: +44 20 7551 9090

f: +61 2 8088 7405

e: euroinfo@datamonitor.com

e: apinfo@datamonitor.com

e: usinfo@datamonitor.com

ABOUT DATAMONITOR

Datamonitor is a leading business information company specializing in industry analysis.

Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services.

The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New Y ork, Frankfurt, and Hong Kong.The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas.

Our series of company, industry and country profiles complements our premium products, providing top-level information on 10,000 companies, 2,500 industries and 50 countries.While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts.

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc.

The facts of this profile are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. Deutsche Bank AG Page 2

TABLE OF CONTENTS

Company Overview (4)

Key Facts (4)

SWOT Analysis.....................................................................................................5Deutsche Bank AG

Page 3

T ABLE OF CONTENTS

COMPANY OVERVIEW

Deutsche Bank (DB) is the largest bank in Germany. It is one of the largest financial institutions in Europe with assets of E1,500.7 billion. It offers a range of financial services such as asset

management, cash management, securities issuance, and trading and conventional banking services.The bank has operations in 76 countries spread across Europe, Americas and the Asia-Pacific. It is headquartered in Frankfurt, Germany and employs 77,053 people.

The company recorded revenues of E25,322 million ($36,294.8 million) in the financial year (FY)ended December 2009, compared to E12,537 million ($17,969.7 million) in FY2008.The company recorded an operating profit of E5,202 million ($7,456.2 million) in FY2009, as compared to an operating loss of E5,741 million in ($8,228.8 million) FY2008.The company recorded a net profit of E4,973 million ($7,128 million) in FY2009, as compared to a net loss of E3,835 million ($5,496.8million) in FY2008.KEY FACTS

Deutsche Bank AG

Head Office Deutsche Bank

Theodor Heuss Allee 70

60486 Frankfurt

DEU

49 69 910 00

Phone 49 69 910 34225

Fax http://www.deutsche-bank.de/index_e.htm?ghpmeta=DEU_english Web Address

25,322.0

Revenue / turnover (EUR Mn)

December Financial Year End

77,053Employees

DB

New York Ticker Deutsche Bank AG

Page 4

Company Overview

SWOT ANAL YSIS

Deutsche Bank (DB) is a leading financial services company offering a range of services, including asset management, cash management, securities issuance and trading and conventional banking.It is the largest bank in Germany with an asset base of over about E1,500.7 billion and an extensive network of global operations. Given the intensity of the competition in the financial service market,Deutsche bank relies on the strength of its market position to win business. However, weak economic growth in eurozone, and competition for retail deposits could impact the company ’s revenue and earnings.

Weaknesses Strengths

Higher expenses affecting profitability Strong market position in Germany and

global financial markets

Increasing non performing assets impacting asset turnover and profitability Broad product offerings helping retain large

customers with varied needs

Strong capital position cushions against

market volatility

Threats Opportunities

Weak economic growth in Germany and other Euro zone economies Acquisitions likely to sustain growth

Organic growth initiatives complementing

inorganic growth initiatives

Regulatory changes could increase compliance spending and alter business plans

Buoyant asset management market likely

provide upside to fee income Competition for retail deposits likely to

increase funding costs

Strengths

Strong market position in Germany and global financial markets

DB is one of the largest financial services providers in Germany. It is the largest bank in Germany with an asset base of E1,500.7 billion ($2,151 billion), and 961 domestic branches at end FY2009.The company has significant market share in the global financial services industry across product segments. For instance at end 2009, the company ’s global market share in credit derivatives was 14.6% (ranked #1). DB was voted world ’s top prime broker for a second year by Global Custodian,in 2009.The company ’s global market share in foreign exchange market was 21% at end 2009(ranked #1). DB ’s corporate finance division gained market share and improved its league table Deutsche Bank AG

Page 5

positions in key areas in 2009.This large scale of operations provides the company with a strong competitive advantage and enables it to serve multiple customer segments.

Broad product offerings helping retain large customers with varied needs

The company enjoys a strong brand image and maintains long-term relationships with its clients by delivering a wide range of innovative commercial banking solutions across geographies.The company virtually offers a one-stop shop for asset management, investment banking and conventional banking needs of its customers. It provides various products and services through its business segments. Corporate and investment bank division conducts capital markets business including debt, equity, and other securities, together with corporate advisory, corporate lending and transaction banking businesses. Private client and asset management division provides asset and wealth management, absolute return strategies, real estate asset management, portfolio management, tax advisory, inheritance planning and philanthropic advisory services. It also offers various traditional banking products, including current accounts, deposits and loans, investment management products and business banking services. Corporate investment division includes real estate assets, private equity and venture capital activities. Leveraging its broad products portfolio, DB efficiently caters to its global clients with special requirements.

Strong capital position cushions against market volatility

DB improved its capital position significantly in 2009, despite not accepting any government aid. The company’s Tier 1 capital ratio improved from 10.1% at end 2008 to 12.6% at end 2009, its best level since the introduction of the Basel capital framework. DB’s ‘core’Tier 1 ratio, which excludes hybrid instruments, improved from 7.0% at end 2008 to 8.7% at end 2009.The company’s total capital ratio improved to 13.9% at end 2009 from 12.2% at end 2008. DB also reduced its leverage ratio to 23% by the end of 2009, compared to 28% in 2008. Strong capital position enables the company to withstand market volatility with ease.

Weaknesses

Higher expenses affecting profitability

DB’s expense management has been deteriorating (as indicated by cost/income ratio) over the last few quarters.The company’s cost/income ratio (total noninterest expenses as a percentage of total net interest income before provision for credit losses plus noninterest income) has deteriorated sharply from 69.6% in 2007 to 134.6%. Although it improved to 72% in 2009, that is still high relative to its peers and also by its own historical standards. Compared to its peers, the company’s profitability is low on account of higher expenses.

Increasing non performing assets impacting asset turnover and profitability

Deutsche Bank AG Page 6

DB continues to report increasing non performing assets in 2009. As on December 31, 2009, Deutsche Bank’s impaired loans totaled E7.2 billion ($10.3 billion), compared to E3.7 billion ($10.3 billion) in 2008. In 2008 also, the company reported significant jump in non performing assets. Increase in impaired loans was broads based. Impaired loans in Germany rose to E1.7 billion ($2.4 billion), compared to E1.6 billion ($2.3 billion) in 2008. Impaired loans outside of Germany rose to E5.5 billion ($7.9 billion), compared to E3.7 billion ($5.3 billion) in 2008. As a result, the company’s asset turnover was considerably impacted in 2009. Continued rise in non-performing assets could lead to significant write-downs and curtailment of lending operations in those markets.

Opportunities

Acquisitions likely to sustain growth

In the last three years, DB made a number of acquisitions that are expected to provide long term growth opportunities for the company. For instance, in October 2008, DB completed the acquisition of the operating platform of Pago eT ransaction GmbH into the Deutsche Card Services GmbH, based in Germany. In November 2008, the company acquired a 40% stake in UFG Invest, the Russian investment management company of UFG Asset Management, with an option to become a 100% owner in the future. In March 2009, Deutsche Bank AG acquired a stake in London Dry Bulk, a subsidiary of London Commodity Brokers, Ltd., a UK-based inter dealer broking house. In November 2009, Dow Jones reported that Deutsche Bank AG acquired a 6.78% stake in Grontmij NV. In December 2009, DB a completed its acquisition of Dresdner Bank AG's Global Agency Securities Lending business from Commerzbank AG. In March 2010, DB closed the acquisition of Sal. Oppenheim Group and in April 2010, DB acquired commercial bank business in Holland from ABN Amro N.V.These acquisitions are expected to provide significant upside potential to the company’s revenue and earnings.

Organic growth initiatives complementing inorganic growth initiatives

DB focus on growth is well balanced with organic and inorganic initiatives. Since 2007, the company has been investing significant capital to increase its organic growth. For instance in September 2007, DB launched trading in catastrophe event-linked futures (ELF) on the Chicago Climate Futures Exchange (CCFE) along with Climate Exchange Plc. DB launched the Single Euro Payments Area in 2008.This is designed to deliver its clients instant financial and business benefits. DB finalized an agreement to operate on the Open Platform for Unregistered Securities (OPUS-5), the new trading platform for equity securities. DB opened its new Beijing office tower with 500 staff in April 2008. DB received an International Islamic Banking license from Bank Negara Malaysia, in March 2010.The launch of Islamic Banking is expected to enable the bank accelerate its growth in Islamic markets and complement the company’s inorganic growth initiatives.

Buoyant asset management market likely provide upside to fee income

Deutsche Bank AG Page 7

The global asset management and custody banks sector grew by 14.9% in 2009 to reach a value of $70,758.3 billion.The sector is anticipated to reach a value of $142,366.5 billion by the end of 2014.The main factor driving this growth is the need for private individuals to make provision for their pension requirements to counter the widespread weakening of government pension products. Since, DB is one of the largest asset managing companies in the world, a positive outlook in the global asset management market would enable it to improve its fee income.

Threats

Weak economic growth in Germany and other Euro zone economies

In January, the International Monetary Fund (IMF) forecasted Germany’s economic growth of 1.5% in 2010 and 1.9% in 2011. However, in March 2010, IMF revised down its forecasts for Germany economic growth to 1.2% in 2010 and 1.7% in 2011. So was the case in several Euro zone economies. In the euro zone, Greece, Spain, Italy, and Ireland are facing a tough time emerging from recession. Weak economic growth in major economies within euro zone could impact the company’s prospects in 2010.

Regulatory changes could increase compliance spending and alter business plans

There are potential strategic and structural risks to the organisation, nature and scope of the group's business activities and opportunities posed by many of the proposals for regulatory reform being debated both internationally and domestically in response to the recent financial crisis.The Basel Committee on Banking Supervision has issued a comprehensive reform package to address the lessons of the crisis which includes proposals on strengthening global capital and liquidity regulations and the resolution of systemically significant crossborder banks such as DB.The reforms could be implemented by 2012. DB is also subject to several regulations across geographies that could have an impact on its strategy, and financial performance and health.

Competition for retail deposits likely to increase funding costs

The financial crisis has begun to re-shape the banking landscape globally and those institutions which have emerged the strongest have reinforced both the importance of a core retail and commercial deposit funding base and strong capitalisation. As a consequence, financial firms have sought to reduce the proportion of their balance sheets funded in the wholesale markets. As a result, competitions for retail deposits and tighter balance sheet control have resulted in re-pricing of loans and advances. Competition for retail deposits is expected to intensify further in 2010 as conditions in the global wholesale markets are still not favorable. Consequently, funding costs could go up and decrease net interest margin.

Deutsche Bank AG Page 8Copyright of Deutsche Bank AG SWOT Analysis is the property of Datamonitor Plc and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.