Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today published its Annual Report for the financial year 2008. The Annual Report consists of the Annual Review and the Financial Report. The Annual Review provides information about Deutsche Bank’s structure, core businesses, capital market performance, human resources and social responsibility activities. The Financial Report contains the audited consolidated financial statements for the financial year 2008, which have been prepared according to International Financial Reporting Standards (IFRS). Deutsche Bank is also publishing its Form 20-F, which will be filed with the U.S. Securities and Exchange Commission (SEC) later today.
Josef Ackermann, Chairman of the Management Board: "As we look forward in 2009, our industry continues to face significant challenges. A global economic downturn af-fects all our client segments, and financial markets remain under pressure. Neverthe-less, we are confident that Deutsche Bank is correctly positioned to weather these diffi-cult conditions. At this stage, we do not see any requirement for raising capital from whatever external source.
We remain firmly convinced that Deutsche Bank’s identity - a leading global investment bank with a strong private clients franchise – positions us well to emerge stronger from this crisis. We have made a good start to 2009."
In its Financial Report the bank publishes a detailed outlook (pages 62-67). Regarding the development of the world economy it is stated: “The global economy is currently ex-periencing its steepest decline in post-war history and is expected to suffer its first net decline since World War II in the current year. Germany, with its pronounced depend-ence on exports, is hit particularly hard by the slump in global demand. We expect real Gross Domestic Product in Germany to shrink by 3.5%. The German economy may see a slight recovery in 2010, with GDP growth of around 1%.”
Regarding the banking industry and Deutsche Bank it is stated: “In 2009, very difficult conditions are likely to persist for the banking industry. Revenues will be adversely im-pacted by softening demand from clients in some product areas as a result of slower economic activity, restrictions on credit availability, and wariness on the part of both pri-vate and institutional investors. In 2010, some degree of recovery in the banking industry is foreseeable. If the global economy, financial markets, legal and regulatory envi-ronment, and competitive environment develop as foreseen, Deutsche Bank expects to return to profitability in 2009.”
Deutsche Bank also provides added transparency on those risk positions that have been principally affected by the crisis in the credit markets, including its exposures to subprime CDOs, other US mortgage businesses, monoline insurers, commercial real estate and leveraged finance (pages 19–28).
The Financial Report also contains a Compensation Report (pages 51–57). In 2008 the total compensation paid to the Management Board was EUR 4.48 million (2007: EUR 33.18 million). Total compensation paid to Josef Ackermann, Chairman of the Management Board, was EUR 1.39 million (2007: EUR 13.98 million).
The number of shareholders increased significantly in 2008. According to the Annual Review (page 18), the number of shareholders was 581,938 at year-end 2008 after 360,785 in 2007. 55% of its shares were held by German investors by end of year 2008. In 2007, 45% of the shares have been held by German investors.
The Annual Review, the Financial Report, the Form 20-F (to be filed this afternoon with the SEC) and additional publications, such as a list of shareholdings and a list of mandates, can be retrieved from Deutsche Bank's website at www.deutsche-bank.com/08. Also available on this website is the final version of the 4Q2008 Financial Data Supplement. Hard copies of the complete audited Annual Report and of the Form 20-F will be available upon request by mid April free of charge.
This release 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 24 March 2009 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir .