Deutsche Bank (XETRA: DBKGn.DE / NYSE:DB) today released its Annual Report and supplementary documents for the financial year 2002. This follows the publication of unaudited results 2002 on 7 February 2003.
For 2002 Deutsche Bank reported income before income tax expense of EUR 3.5 billion (previous year: EUR 1.8 billion). Allowing for special effects - in particular gains from divestments and write-downs of our industrial holdings - income before income tax expense was EUR 1.9 billion, compared to last year's figure of EUR 2.2 billion. This was achieved in spite of higher loan loss provisions of EUR 2.1 billion during 2002. Revenues fell as economic and political uncertainty lead to increased caution among private and institutional clients. However, this decline was more than compensated for by significantly increased cost savings.
An unchanged dividend of EUR 1.30 per share for 2002 will be proposed to the shareholders for approval at the General Meeting. This is an expression of Deutsche Bank's confidence in the prospects for the current financial year.
In his letter to shareholders Josef Ackermann, Chairman of the Group Executive Committee, writes: "The financial year 2003 has got off to a good start for Deutsche Bank. This makes me and my colleagues confident for the development of business in the coming months. Deutsche Bank's 2002 earnings power proved robust. We used the financial year ended to strengthen and transform the Bank, thereby laying important foundations for our ongoing business success. We have consistently worked through the package of measures we announced and have already exceeded our targets at an early stage. We have reduced costs strongly, focused on our core businesses and divested industrial shareholdings. We have improved the quality of our balance sheet and strengthened our core capital."
As part of its continuous efforts to improve financial transparency Deutsche Bank has made several improvements to its reporting documents, partly in anticipation of future SEC regulations. The Bank has also published its Corporate Governance report. The Corporate Governance Principles voluntarily adopted by the Bank go beyond the requirements of law and beyond those of the German Corporate Governance code.
- Critical Accounting Policies
Deutsche Bank has enhanced its disclosure in relation to Critical Accounting Policies. Improvements include an expanded description of each policy and disclosure of segments impacted by policies.
- Share-Based Compensation
The Bank has enhanced its disclosure of the expensing policy for its significant share-based compensation plans, providing information about retention awards granted after year end. Starting in 2003 Deutsche Bank will change its method of accounting for employee stock options to an approach that recognises as an expense the fair value of the options granted. This is the preferred approach under current accounting standards (FASB Statement No. 123, Accounting for Stock-Based Compensation).
- Board of Managing Directors compensation
For the first time Deutsche Bank has disclosed the individual compensation of the members of the Board of Managing Directors. The aggregate remuneration paid to the Board in 2002 was EUR 27.2 million (including Board members that resigned in 2002). Josef Ackermann, Spokesman of the Board of Managing Directors, received EUR 6.2 million in the form of cash and Equity-Units and EUR 0.7 million in the form of Performance Options.
- Share Ownership and Directors' Dealings
Deutsche Bank has published all the transactions by members of the Board of Managing Directors and Supervisory Board in Deutsche Bank shares or derivatives based on them. The Bank shows also for the first time the individual share ownership of each member of the Supervisory Board.
- Sarbanes-Oxley Act implementation
As a listed company on the New York Stock Exchange Deutsche Bank is subject to the Sarbanes-Oxley Act. This requires the Chief Executive Officer and Chief Financial Officer to certify the financial and other information contained in the 2002 Annual Report on Form 20-F. This certification confirms that the Annual Report contains no material misstatements or omissions, that the Financial Statement fairly presents the Banks' financial condition and that adequate disclosure controls and procedures are in place.
The following documents are available on the internet page www.deutsche-bank.com/ir
- Annual Report,
- Form 20-F (will be filed with the SEC later today),
- Corporate Governance Principles and Report,
- List of Shareholdings,
- List of Mandates.
The Annual Report is also directly available on the following internet page www.deutsche-bank.com/02.
For a quick reference please find attached to this release the following tables from the Annual Report, all relating to Deutsche Bank Group:
- Attachment B1: Income Statement
- Attachment B2: Balance Sheet
- Attachment B3 - B5: Segment Information
This Investor Relations Release contains forward-looking statements. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Any statement in this Investor Relations Release that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a for-ward-looking statement. These statements are based on plans, estimates and projections as they are cur-rently 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.
Forward-looking statements involve inherent 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 restructuring including the envisaged reduction in headcount; the reliability of our risk manage-ment policies, pro-cedures 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 March 27, 2003 on pages 9 through 13 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir