September 4, 2007

Deutsche Bank gives 3Q2007 performance update

Josef Ackermann, Chairman of the Management Board of Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) will today be speaking on the US sub-prime crisis and its implications at a banking conference in Frankfurt. With respect to the impact of recent market turbulence on Deutsche Bank and financial institutions he makes the following comments:

“In the communication of our second-quarter results we said that we were satisfied with the development of our business in July.

Going into August, we continue to be pleased with the performance of our ‘stable’ businesses (Private & Business Clients, Asset Management, Private Wealth Management, and Global Transaction Banking). In Sales & Trading and Corporate Finance our customer-oriented flow businesses also performed well. In addition, thanks to Deutsche Bank’s strong risk management, our counterparty and credit exposures remained well-controlled.

Nevertheless, the turbulent market conditions during the month of August inevitably affected Deutsche Bank, notably in Sales & Trading and Corporate Finance. Market corrections, triggered in part by the drying-up of liquidity, have been significant and impacted mark-to-market valuations in our trading books and leveraged loan book. Going forward, these valuations will depend on how the market develops.

In the last few days, there have been signs that markets begin to stabilise. Liquidity is returning.  But without doubt, some “blocked” transactions will take some time to work through. Despite an environment of higher spreads and a focus on the short end, availability of funding has not been a problem for Deutsche Bank in recent weeks.

In conclusion – although it may take some time to work through the system – for the reasons I have alluded to, namely the scale of the problems relative to the larger financial system and the actions of regulators and central bankers, I am optimistic about the environment globally for financial institutions.”

Ackermann also notes that Deutsche Bank is not exposed to further deterioration in US sub-prime mortgages across its books. Total assets in Deutsche Bank-sponsored Asset Backed Commercial Paper (ABCP)-conduits are EUR 32 billion. Commercial paper investors in Deutsche Bank sponsored conduits have no exposure to US sub-prime mortgages. In Leveraged Finance Deutsche Bank has a total pipeline of loans to sponsors of EUR 29 billion.


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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 27 March 2007 on pages 9 through 15 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from .