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Deutsche Bank AG 03 July 2008

Company News Alert

Deutsche Bank to acquire commercial banking units in the Netherlands

Common HOLD On 02 July 2008, Deutsche Bank AG (DB) announced that it will acquire some of ABN Amro’s
Direct access
commercial banking to the
units fullNetherlands
in the report free of charge
for €709 at N.V. The company has stated
mn from Fortis
Stock http://www.iirgroup.com/researchoracle/viewreport/show/20181
that this transaction is in line with the company’s strategy to expand its “stable business” and will offer
the company a strong client base in the Netherlands. The bank also issued an update on its quarterly
performance, indicating that it anticipates a profitable 2Q 08, with a Tier 1 ratio of approximately 9%,
Ticker: DBKGn.DE
and that it therefore does not expect any requirement for further capital raising. Despite these positive
Target price: €89.09 developments, we remain concerned about the sensitivity of the global banking sector to ongoing
Current price: €54.48 volatility in global financial markets. Furthermore, Management’s near term outlook on liquidity and the
US housing market is very weak. We plan to lower our estimates and target price significantly when we
revalue the bank in our next full update report. Therefore, although our current common stock target
Price change price suggests a BUY rating, we maintain our HOLD rating.
(37.9%)
since last report:
We will reassess our common stock rating for DB in our next full update report.

NYSE Stock HOLD Following a further change in our currency forecast, we now expect to continue to value the company
over an investment horizon of 6-24 months1. As we now anticipate a negative currency impact on the
NYSE stock, which along with the fundamental reduction will reduce our target price significantly, we
Ticker: DB maintain our HOLD rating at current levels.
Target price: US$111.37
Current price: US$85.64
Price change We will reassess our NYSE stock rating for DB in our next full update report.
(32.4%)
since last report:

Supervisor: Somnath Banerjee

Analyst: Vishal Ajmera
Editor: Heloise Capon
Global Research Director:
Satish Betadpur, CFA
Investment horizon - short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-24 months. If this
report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
readers with a shorter trading horizon. These are available online only at www.researchoracle.com

Next news due:

2Q 08 results, 31 July 2008
On 02 July 2008, DB announced that it plans to acquire some of ABN Amro’s commercial banking
activities in the Netherlands from the Belgian-Dutch bank Fortis for €709 mn (US$1.13 bn) in cash.
DB will acquire two corporate client units, 13 commercial advisory branches that serve medium-sized
clients, parts of the Rotterdam-based bank, Hollandsche Bank Unie N.V. and the Dutch part of ABN
Amro’s factoring unit, IFN Group Finance. The sale price represents a discount of approximately €300
mn to the net asset value of the businesses that are to be sold. The transaction is expected to be
closed at the beginning of 4Q 08. The sale of the businesses is in line with Fortis’ commitment to the
European Commission, to address concerns over concentration in the Dutch banking market resulting
from Fortis’ acquisition of ABN Amro assets. The decision to take over commercial-banking units in the
Netherlands is in line with DB’s strategy to expand its corporate and investment banking in the country
and provides an opportunity for the bank to continue growing its businesses, with the acquisition of
well-established and stable business assets at a healthy discount. The bank’s quarterly performance
update, released on the same day, outlines that it anticipates a profitable 2Q 08, with a Tier 1 ratio of
approximately 9%, and that it has no expectation of a requirement to raise further capital., However,
we remain concerned about Management’s highly uncertain near term outlook regarding liquidity and
the US housing market, and sensitivity of the global banking sector to ongoing volatility in global
financial markets.
Footnote
After a short term appreciation, we now expect the Euro to depreciate against the US dollar to trade at €1.50 over
12 months and €1.35 over 24 months. In order to capture the long term currency impact we expect to maintain our
6-24 month investment horizon for this stock.

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