Discussion of Group Results

Net revenues were € 7.2 billion, after mark-downs of € 1.0 billion, including € 841 million from further provisions against monoline insurers, and an impairment charge of € 500 million on The Cosmopolitan Resort and Casino property. Net revenues increased 56 % versus € 4.6 billion (after mark-downs of € 3.2 billion) in the first quarter 2008.

In the Corporate and Investment Bank (CIB), net revenues were € 4.9 billion versus € 1.5 billion in the first quarter 2008.

In Corporate Banking & Securities (CB&S), net revenues were € 4.2 billion, up from € 880 million in the prior year quarter, driven predominantly by revenues in Sales & Trading (debt and other products) of € 3.8 billion, up 185 % versus the first quarter 2008. This performance reflects strong year-on-year growth in ‘flow’ products including foreign exchange, money market and interest rate trading. Mark-downs in the first quarter 2009 were € 1.0 billion, compared to € 1.4 billion in the same quarter last year. In Sales & Trading (equity), net revenues were € 275 million in the quarter, versus € 745 million in the first quarter 2008, reflecting losses in equity derivatives and lower cash equities revenues, which more than offset year-on-year growth in prime brokerage. Revenues in Origination were € 219 million in the quarter, up from negative revenues of € 1.3 billion in the first quarter 2008, principally reflecting the non-recurrence of mark-downs on leveraged loans and loan commitments in the prior year quarter, together with strong levels of market activity in investment-grade debt issuance. Advisory revenues were € 129 million, essentially unchanged from the first quarter 2008. Revenues from Other products included the aforementioned impairment charge related to The Cosmopolitan Resort and Casino property and impairment losses on private equity investments.

In Global Transaction Banking (GTB), net revenues were € 666 million, marginally higher compared to the first quarter 2008. Growth in Trade Finance revenues, achieved despite declining volumes of international trade, was offset by lower revenues in Corporate Cash Management and Trust and Securities Services, reflecting lower interest rates, the adverse impact of exchange rate movements and lower valuations on our assets under custody.

In Private Clients and Asset Management (PCAM), net revenues were € 1.9 billion, compared to € 2.5 billion in the first quarter 2008.

In Asset and Wealth Management (AWM), net revenues were € 515 million, compared to € 1.0 billion in the prior year quarter. This development reflects lower brokerage and portfolio/fund management revenues arising from declines in equity market valuations and lower levels of portfolio activity. Revenues in the current quarter were also negatively impacted by impairment charges in the RREEF business, together with the non-recurrence of certain one-time gains recorded in the prior year quarter.

In Private & Business Clients (PBC), net revenues were € 1.4 billion, down 5 % versus the first quarter 2008. Revenues in brokerage and portfolio/fund management were lower due to reduced levels of client activity and lower market valuations, together with a decline in insurance brokerage revenues compared to the prior year quarter.

Provision for credit losses was € 526 million, versus € 114 million in the first quarter 2008. Provision for credit losses in the current quarter included € 218 million related to assets reclassified in accordance with IAS 39. In CIB, provision for credit losses was € 357 million, versus a credit of € 11 million in the first quarter 2008. This increase was primarily driven by charges taken in respect of the aforementioned reclassifications and reflects the generally weaker credit environment. In PCAM, provision for credit losses was € 169 million, versus € 125 million in the first quarter 2008, predominantly reflecting higher provisions in PBC. The positive effect of a € 60 million release in relation to revised parameter and model assumptions was offset by rising delinquencies in Germany, a deteriorating credit environment in Spain, and the expansion of the consumer finance business in Poland.

Noninterest expenses were € 4.9 billion in the quarter, up 2 % versus € 4.8 billion in the first quarter 2008. Compensation and benefits were € 3.0 billion, up 1 % versus the prior year quarter, primarily reflecting higher accruals of performance-related compensation. The ratio of compensation and benefits to revenues was 41 %, versus 64 % in the prior year quarter. General and administrative expenses were € 1.9 billion, essentially unchanged from the prior year quarter. Current quarter general and administrative expenses included charges for litigation provisions of almost € 90 million, compared to insignificant provision releases in the prior year quarter. Other non-compensation expenses were a credit of € 62 million arising from policyholder benefits and claims, versus a credit of € 126 million in the prior year quarter (offset in revenues).

Income before income taxes was € 1.8 billion in the quarter, versus a loss before income taxes of € 254 million in the first quarter 2008. The cost-income ratio for the quarter was 67 %, compared to 103 % in the same period last year.

Net income was € 1.2 billion in the quarter, versus a net loss of € 141 million in the first quarter 2008. The effective tax rate for the quarter was 34.9 %. Earnings per share, on a diluted basis, were € 1.92, compared to negative 27 cents in the prior year quarter.

Our Tier 1 capital ratio was 10.2 % at the end of the quarter, up from 10.1 % at the end of the fourth quarter 2008, and above our published target of 10%. The core Tier 1 ratio, which excludes hybrids, was 7.1 % at the end of the quarter, up from 7.0 % at the year end. Tier 1 capital at the end of the quarter was € 32.3 billion, up by € 1.2 billion from the end of the fourth quarter 2008. Tier 1 capital increased primarily from retained earnings. The effect of the issue of shares to Deutsche Post AG as contribution in kind for our purchase of a minority stake in Deutsche Postbank AG during the quarter, was offset by a capital deduction in respect of this purchase. Risk-weighted assets were € 316 billion at the end of the quarter, up € 8 billion versus the end of the fourth quarter 2008, including € 12 billion in relation to the Deutsche Postbank transaction structure and € 8 billion due to exchange rate movements, which were partly offset by initiatives to reduce risk-weighted positions of € 12 billion.