Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) published its Annual Report for 2009 today. It consists of two sections: Annual Review and Financial Report. The Annual Review presents the bank’s corporate profile and corporate divisions, the development of the share as well as the bank’s staff and its corporate social responsibility activities. The Financial Report contains the audited Consolidated Financial Statements of Deutsche Bank for the 2009 financial year, prepared in accordance with the International Financial Reporting Standards (IFRS).
Josef Ackermann, Chairman of the Management Board, writes in his letter to the shareholders: “2009 was a year of considerable achievement for Deutsche Bank. Financially, we delivered a significant turnaround after the exceptionally difficult conditions of 2008. We delivered substantial profitability with a significantly lower balance sheet, while risk-weighted assets declined steadily. Strategically, we laid a firm basis for success in the post-crisis era.”
In its Financial Report, the bank also presents an extensive outlook, on pages 130-137. On the development of the banking industry, it states: “The banking industry is likely to slowly progress towards a new form of normality in 2010 and 2011, in an environment of fundamentally changed regulation, with new market structures and altered investor preferences.”
Deutsche Bank will continue to be impacted by this. “However, with the flight to quality in the post-crisis competitive environment, there are opportunities for Deutsche Bank to capture market share. Based on certain assumptions about the competitive environment (including no further major market dislocations, a normalization of asset valuations, high single-digit growth in the global fee pool, margins stabilizing at levels which remain higher than the pre-crisis period and modest but positive global GDP growth of at least 2%), Deutsche Bank sees potential income before income taxes in its core businesses for 2011 of EUR 10 billion.”
As stated in the Financial Report (pages 116ff), total compensation for the eight members of the Management Board came to EUR 38.98 million for 2009. The compensation approved for the Chairman of the Management Board, Josef Ackermann, amounted to EUR 9.55 million for the 2009 financial year. Of this figure, 70% is deferred and will first be disbursed at a later date depending on the future development of Group earnings. For the year 2008 the entire Management Board waived its variable compensation components.
The number of Deutsche Bank shareholders continued to increase in 2009. According to the Annual Review (page 20), there were 586,295 shareholders at the end of 2009, compared to 581,938 in 2008. At the end of 2009, 46% of the shares were held by shareholders from Germany. In 2008, this figure stood at 55%.
New Group Remuneration Report (referencing to BaFin and FSB)
Furthermore, in accordance with its own voluntary commitment, Deutsche Bank published, for the first time ever in this form, a Group Remuneration Report for the 2009 financial year. In this report, the bank presents its compensation structures and practices, along with the related corporate governance structure. Over the past few months, Deutsche Bank revised its compensation systems, while fully taking into account the principles of the G-20 states as well the regulations of the bank’s principal supervisory authorities. A section of the report is also dedicated to various key compensation figures. It shows, for example, that the Group’s 2009 compensation and benefits, at EUR 11.3 billion, were 14% below the figure for the pre-crisis 2007 financial year.
There is also detailed information on the structure of compensation for employees who can create high risk positions. For the financial those employees received fixed pay of EUR 367m and variable components consisting of EUR 921m cash paid in February 2010 and deferred awards. The deferred awards are all subject to the Banks future performance. EUR 961m of the deferred awards were granted in the form of restricted equity awards which are deferred over 3.75 years and tied to the future share price of DB. EUR 317m of the deferred awards were granted in the form of restricted incentive awards deferred over 3 years and tied to the Group NIBT and a Variable Adjustment based on RoE less cost of funds. For the population above, on average nearly 60% of the variable compensation is deferred and subject to future performance and clawback – this is compliant with BaFin and FSB requirements. The ratio between fixed and variable components will be shifted towards fixed elements from 2010 on.
The Annual Review and Financial Report 2009 as well as additional publications, such as the List of Shareholdings and the List of Mandates can be downloaded from Deutsche Bank’s Internet website:
Also available on this website: the final version of the Financial Data Supplement 4Q2009 as well as the Annual Report on Form 20-F (only in English) that will be submitted to the U.S. Securities and Exchange Commission (SEC) over the course of today. Printed copies of the complete audited Annual Report and the Form 20-F can be ordered from Deutsche Bank and will be available upon request free-of-charge starting in the middle of April.
The Group Remuneration Report can be downloaded in the Internet from http://www.deutsche-bank.de/ir/en/content/reports_2009.htm.
This release 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 strategic initiatives, 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 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 .
This release may also contain non-IFRS financial measures. For a reconciliation to directly comparable figures reported under IFRS, refer to the 4Q2009 Financial Data Supplement, which is available at www.deutsche-bank.com/ir.