March 5, 2008

Deutsche Bank Shipfinancing very successful in 2007

  • Regular income of € 56.5 million, up by 10.8 percent
  • Pre-tax profit climbs by 10.8 percent to € 47.3 million
  • New business / outstandings grow to € 2.2 billion

Deutsche Bank Shipfinancing (DB Shipping) remains on course for success. Managing Directors Ralf Bedranowsky, Annemarie Ehrhardt, Torsten Wagner und Tjark H. Woydt presented the 2007 annual financial statements of DB Shipping today in Hamburg. DB Shipping is made up of Schiffshypothekenbank zu Lübeck AG (SHL) and the ship financing department of Deutsche Bank AG.

“DB Shipping turned in another record profit in the financial year just ended“, reported Tjark H. Woydt. Regular income grew by € 5.5 million or 10.8 percent to € 56.5 million, which was the best result ever achieved by Deutsche Bank’s ship financing operations. Pre-tax profit stood at € 47.3 million, reflecting an increase of € 4.6 million or 10.8 percent over the preceding year. The share of non-capital-related income stabilized at a level of 40 percent. Management was highly satisfied with the results achieved in an environment marked by competitive pressure and the recent financial crisis.

New lending showed a positive development. In 2007, the volume of drawings rose to € 2.2 billion compared with € 1.6 billion in 2006. Some 70 percent of the traditionally well diversified DB Shipping loan portfolio was made up of investment-grade lending, explained Annemarie Ehrhardt. Once again, customers’ excellent creditworthiness meant that no provisions for loan losses had to be formed in 2007.

“2007 was definitely a good year for the shipping industry“, said Ralf Bedranowsky. As in the previous year, growth in 2008 is expected to be underpinned by business with Asia, above all China and India. He described 2007 as a record year for the dry cargo shipping industry (bulk carriers). Charter rates, ship values, ship newbuilding prices and shipyards’ order books set new records. Charter rates reached historical peaks owing to continued strong demand for iron ore from China and worldwide demand for coal, and remained at high levels. An increasing supply of tonnage expected between 2009 and 2012 is likely to cause charter rates to decline.
The medium-term outlook for the offshore drilling market was also positive, according to Bedranowsky. Demand for mobile oil rigs and drilling ships has risen steadily over the past two years as a result of persistently high oil prices. Demand is expected to climb further in line with growing oil consumption. This will be of special benefit to units equipped to work under extreme circumstances such as deepwater drilling in regions which present difficult environmental challenges.

The turmoil on the financial markets over the past few months caused perceptible uncertainty among shipowners and operators. Torsten Wagner gave his assurance that “in this situation DB Shipping remains fully committed to its lending operations and faces the new financial year with great confidence.“ Besides its operations in traditional markets in Germany and Scandinavia and plans to build up staff at its agency in Piraeus, DB Shipping intends to focus on the newly developing Asian markets. A DB Shipping team is to be set up in Singapore as a major regional centre.

Alongside traditional ship financing business, other banking products are also gaining in significance: in cooperation with Hamburg-based fund issuer Lloyd Fonds AG, Deutsche Bank placed two funds last year for a total volume of over € 300 million. In addition, DB Shipping advised two international shipping companies in the listing for an initial public offering at the Singapore stock exchange totalling some € 340 million.

Further information can be obtained from:

Deutsche Bank Press Department  

Anke Veil       
Tel.: 069/ 910-42846 
E-mail: anke.veil@db.com    

DB Shipping

L. Peter Flug
Tel.: 040/ 3701-4640

Digital photos of the Managing Directors of DB Shipping are available from anke.veil@db.com.


Background information:
DB Shipping comprises all business operations of Schiffshypothekenbank zu Lübeck AG (SHL) and of the ship financing department of Deutsche Bank AG in Hamburg. SHL is a wholly owned subsidiary of Deutsche Bank AG and is operated under the same management as the ship financing department of the bank’s Hamburg branch.


About Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 78,291 employees in 76 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.

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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 www.deutsche-bank.com/ir