The following discussion and analysis should be read in conjunction with the consolidated financial statements and the related notes to them. Our consolidated financial statements for the years ended December 31, 2004 and 2003 have been audited by KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft that issued an unqualified opinion.
| Deutsche Bank at a glance | 2004 | 2003 |
| Share price at period end | € 65.32 | € 65.70 |
| Share price high | € 77.77 | € 66.04 |
| Share price low | € 52.37 | € 32.97 |
| Dividend per share (proposed for 2004) | € 1.70 | € 1.50 |
| Basic earnings per share | € 5.02 | € 2.44 |
| Diluted earnings per share1 | € 4.53 | € 2.31 |
| Average shares outstanding, in m., basic | 493 | 559 |
| Average shares outstanding, in m., diluted | 532 | 590 |
| Return on average total shareholders’ equity (post-tax) | 9.1% | 4.7% |
| Adjusted return on average active equity (post-tax)2,3 | 10.5% | 5.2% |
| Pre-tax return on average total shareholders’ equity | 14.8% | 9.5% |
| Pre-tax return on average active equity3 | 16.3% | 10.1% |
| Cost/income ratio4 | 79.9% | 81.8% |
| in € m. | in € m. | |
| Total revenues | 21,918 | 21,268 |
| Provision for loan losses | 372 | 1,113 |
| Total noninterest expenses | 17,517 | 17,399 |
| Income before income tax expense and cumulative effect of accounting changes |
4,029 | 2,756 |
| Net income | 2,472 | 1,365 |
| Dec 31, 2004 in € bn. |
Dec 31, 2003 in € bn. | |
| Total assets | 840 | 804 |
| Loans, net | 136 | 145 |
| Shareholders’ equity | 25.9 | 28.2 |
| BIS core capital ratio (Tier I) | 8.6% | 10.0% |
| Number | Number | |
| Branches | 1,559 | 1,576 |
| thereof in Germany | 831 | 845 |
| Employees (full-time equivalent) | 65,417 | 67,682 |
| thereof in Germany5 | 27,093 | 29,878 |
| Long-term rating | ||
| Moody’s Investors Service, New York | Aa3 | Aa3 |
| Standard & Poor’s, New York | AA– | AA– |
| Fitch Ratings, New York | AA– | AA– |
| 1 | Including effect of dilutive derivatives, net of tax. |
| 2 | Net income of € 2,472 million for 2004 and € 1,365 million for 2003 is adjusted for the reversal of 1999/2000 credits for tax rate changes of € 120 million for 2004 and € 215 million for 2003 and for the effect of accounting changes of € 151 million for 2003 (no effect in 2004). |
| 3 | We calculate this adjusted measure of our return on average total shareholders’ equity to make it easier to compare us to our competitors. We refer to this adjusted measure as our “return on average active equity”. However, this is not a measure of performance under U.S. GAAP and you should not compare our ratio to other companies’ ratios without considering the differences in calculation of the ratios. The items for which we adjust the average shareholders’ equity of € 27,194 million for 2004 and € 28,940 million for 2003 are the average unrealized net gains on securities available for sale, net of applicable tax effects of € 1,601 million for 2004 and € 810 million for 2003 and the average dividends of € 815 million for 2004 and € 756 million for 2003. The dividend is paid once a year following its approval by the general shareholders’ meeting. |
| 4 | Noninterest expenses as a percentage of net interest revenues before provision for loan losses plus noninterest revenues. |
| 5 | Number for the year 2003 is restated for revised assignment of representation offices employees. |
