Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (September 2015)
34 slides from Deutsche Bank's debt investor presentation, Sep 7, 2015
Slide 1: Asia fixed income investor update
Deutsche Bank Deutsche Bank Asia fixed income investor update Jonathan Blake, Global Head of Debt Issuance James Rivett, Head of Debt Investor Relations 7-11 September 2015
Slide 2: Deutsche Bank at a glance
Deutsche Bank at a glance 2Q2015 Key figures (in EUR bn) Revenues by business(2) Core bank adjusted IBT(3) FY2014 FY2014 Total IFRS assets 1,694 Leverage 1,461 Exposure(1) GTB GTB Risk-weighted 416 13% 16% assets(1) AWM AWM Common Equity 15% 13% 47.4 Total: Total: Tier 1 capital(1) Germany CB&S CB&S
Slide 3: Agenda
Agenda 1 Strategy update 2 Capital and funding 3 Results update Deutsche Bank Asia fixed income investor update financial transparency. 3 Treasury / Investor Relations September 2015
Slide 4: Strategy 2020: Medium term ambitions
Strategy 2020: Medium term ambitions Our targets Leverage CET1 ~11% ≥5% ratio ratio Organic ~EUR 3.5bn gross savings RoTE(1) >10% CIR ~65% Our aspiration Payout ratio(2) Aspiration to deliver 50%+ dividend payout ratio Note: Gross cost savings are countered by increasing cost from inflation, FX chan
Slide 5: Strategy 2020: Six key decisions
Strategy 2020: Six key decisions Aspirations Deliver sustainable client-driven franchise by: Leverage reduction: Reposition 1 ‒ Reducing transactional business and focus product suite gross ~EUR 200bn, CB&S ‒ Invest in client solutions, advisory and equities net ~EUR 130-150bn Net leverage red
Slide 6: 5% Leverage ratio target drivers
5% Leverage ratio target drivers CRD4 leverage ratio, fully loaded, in % Impact from and business growth deleveraging Impact from capital accretion ≥5% 0.2% 4.6% 0.4% 0.4% 3.5% 4Q14 Postbank de- CB&S NCOU Pro-forma Redeployment Cumulative Target consolidation deleveraging derisking ambition after fo
Slide 7: Reposition CB&S: Shrinking and re-deploying balance sheet
Reposition CB&S: Shrinking and re-deploying balance sheet CRD4 leverage exposure, in EUR bn Expected impact of Targeted leverage exposure exposure reduction reduction: gross ~EUR 200bn; net ~EUR 130-150bn >900 ~EUR 0.8bn deleveraging exit costs ~EUR 0.6bn negative run- (80-90) rate revenue impac
Slide 8: Our pro-forma funding profile remains robust
Our pro-forma funding profile remains robust Funding profile (pre-CB&S deleveraging) 31 March 2015, external funding sources, in EUR bn ■ Postbank is a self-funding entity with 996 858 no material funding contribution to DB Group Other 25% 29% ■ Substantial majority of funding 75% continues to come
Slide 9: Capital: RWA inflation a manageable headwind
Capital: RWA inflation a manageable headwind In EUR bn unless stated differently, CRD4, fully loaded 11.1% CET1 ratio ~11% Risk density 28% (RWA / leverage ~40% exposure) <500 431 ~EUR 80-120bn 1Q15 Disposals Deleveraging Credit Risk Market Risk Op. Risk Pro-forma Business (2015-2017) incl. NCOU (20
Slide 10: Agenda
Agenda 1 Strategy update 2 Results update 3 Liquidity and funding Deutsche Bank Asia fixed income investor update financial transparency. 10 Treasury / Investor Relations September 2015
Slide 11: Key Group financial highlights
Key Group financial highlights In EUR bn, unless otherwise stated Group 2Q2015 2Q2014 1H2015 1H2014 Income before income taxes 1.2 0.9 2.7 2.6 Net income 0.8 0.2 1.4 1.3 Diluted EPS (in EUR) 0.40 0.21 0.78 1.17 Profitability Post-tax return on average active equity 4.5% 1.6% 3.8% 4.7% Post-tax retur
Slide 12: Key messages
Key messages — Net income of EUR 0.8bn, up EUR 0.6bn vs. 2Q2014 Net — Good top line with growth across all businesses; net revenues up 17% (EUR 1.3bn) vs. income 2Q2014 — EUR 1.1bn increase of noninterest expenses vs. 2Q2014 — Cost base of EUR 7.8bn increased by EUR 0.6bn vs. 2Q2014 at constant FX r
Slide 13: Quarterly Net Income
Quarterly Net Income Net income 2Q2015 vs 2Q2014, in EUR m (106) 99 — 9% revenue increase (183) 262 primarily driven by CB&S and NCOU 818 (3) — Benign LLP environment 163 310 — 3% increase in adjusted cost 3 36 base as cost increases offset (703) OpEx saves and lower NCOU expenses 392 309 — Increase
Slide 14: First Half Net Income
First Half Net Income Net income 1H2015 vs 1H2014, in EUR m 128 (402) — 12% revenue increase 556 primarily driven by CB&S, Deutsche AWM and NCOU 528 — Benign LLP environment 365 (2,251) — 3% increase in adjusted cost 22 73 base as regulatory spend 512 101 1,377 1,341 (including full-year 2015 33 BRR
Slide 15: Noninterest expenses
Noninterest expenses 2Q2015 vs. 2Q2014, in EUR bn CIR: CIR: 85.2% 85.0% — Cost increase of EUR 1.1bn despite OpEx Not included in adjusted cost base Part of adjusted cost base 0.5 7.8 savings and deconsolidation effects within NCOU 0.1 0.5 7.3 0.4 — Two main drivers for cost increase: (0.3) 0.7 0.4
Slide 16: Litigation: Update
Litigation: Update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves (1) In USD Demands Reserves 4.8 3.2 3.2 4.8 3.8 2.6 0.4 0.5 31 Mar 2015 30 Jun 2015 31 Mar 2015 30 Jun 2015 31 Mar 2015 30 Jun 2015 — Significant uncertainty as to the — Includes possible obl
Slide 17: Litigation: Status update on selected cases
Litigation: Status update on selected cases Kirch ― All legal disputes between DB and Kirch Group settled in February 2014 with a payment of EUR 0.8 bn ― Settlement on EC IBOR in December 2013 (EUR 0.7bn); settlement of investigations with US and UK regulators IBOR over interbank offered rates bench
Slide 18: Tier 1 Capital
Tier 1 Capital CRD4, fully loaded Tier 1 capital Events in the quarter Common Equity Tier 1 In EUR bn Additional Tier 1 capital — CET 1 capital flat except for FX reductions — 2Q15 net income materially offset by dividend accrual 4.7 0.8 4.6 required per ECB decision (1H15 accrual in line with 0.2 a
Slide 19: Risk weighted assets
Risk weighted assets In EUR bn 11.1% CET 1 ratio, fully loaded 11.4% Events in the quarter 431 RWA reduction key driver of ~30bps CET 1 ratio increase: (1) (4) 5 — Market risk RWA down due reduction of securitisation 416 inventory, reduced default exposure and overall lower risk (10) (5) levels — FX
Slide 20: Leverage exposure
Leverage exposure CRD4 Leverage exposure development, in EUR bn 3.4% CRD4 Leverage ratio, fully loaded 3.6% Events in the quarter 1,549 — ~20bps leverage ratio increase driven by strong de- 0 levering of derivative portfolio through (54) — trade novations, (6) 0 2 (29) 1,461 — reduction of client pe
Slide 21: Agenda
Agenda 1 Strategy update 2 Results update 3 Liquidity and funding Deutsche Bank Asia fixed income investor update financial transparency. 21 Treasury / Investor Relations September 2015
Slide 22: Funding activities and profile
Funding activities and profile Funding profile well diversified Funding profile developments As of 30 June 2015 — Total external funding increased by EUR 62 bn to EUR 982 bn Secured (vs. EUR 919 bn as of Dec 2014) Financing Funding and Vehicles, 1% — Increase of EUR 22 bn in transaction banking and
Slide 23: Funding activities and profile
Funding activities and profile Funding cost and volume development (1) Maturities (1) (3) (4) DB Issuance, in EUR bn Total: EUR 128 bn (as of 30 June 2015) DB issuance spread, 12 week moving average, in bps (2) 200 30 Senior Covered Tier 1 and Tier 2 Senior Covered Tier 1 and Tier 2 27 180 25 160 23
Slide 24: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) DB well positioned to meet future TLAC requirements — Final FSB guidance on TLAC expected before year-end following consultation period and expected to be based on RWA and/or leverage ratio with application not before January 2019 — German draft legislation(1) wo
Slide 25: Additional Information
Deutsche Bank Additional Information 7-11 September 2015
Slide 26: Deutsche Bank's credit current ratings profile
Deutsche Bank’s credit current ratings profile As of 24 August 2015 Stand-alone rating(1) baa3 bbb+ a a Pfandbrief Aaa - - - Counterparty assessment A2 - - - 2 Senior unsecured debt A3(negative) BBB+(stable) A (negative) A (high)(RUR ) Tier 2 Ba1 BBB- A- - - Legacy Tier 1 (Basel 2.5) Ba3 BB BBB- Add
Slide 27: CRD4 – Leverage Exposure and risk weighted assets
CRD4 – Leverage Exposure and risk weighted assets In EUR bn Leverage Exposure vs. RWA(1) In EUR bn CRD4 – Leverage Exposure RWA 1,445 1,461 335 335 Non-derivative trading assets 196 64 64 206 62 66 Market Risk RWA CVA 19 Derivatives(2) 358 307 59 Lending 406 425 250 126 Reverse repo / Credit Risk RW
Slide 28: Loan book
Loan book In EUR bn 434 430 401 411 18 386 393 17 19 18 43 NCOU 22 21 44 37 39 33 34 DeAWM 216 216 214 215 PBC 213 213 77 84 81 GTB 76 77 77 CB&S 48 53 62 72 72 42 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 2014 2015 Germany excl. Financial Institutions and Public Sector: 186 185 184 184 185 189 Note
Slide 29: Impaired loans
Impaired loans(1) Period-end, in EUR bn Core Bank Non-Core Operations Unit Impaired loan ratio Deutsche Bank Group(3) (3) (2) Impaired loan ratio Core Bank(3) 12.0 3.10% 10.3 10.0 9.5 9.3 9.3 10.0 8.7 2.60% 3.3 3.3 8.0 2.9 2.8 2.10% 2.6 2.4 6.0 1.60% 4.0 1.10% 6.9 6.8 6.7 6.5 6.6 6.2 2.0 0.60% - 0.1
Slide 30: NCOU IBIT components
NCOU IBIT components IBIT in EUR m, Assets and RWA data as of 30 Jun 2015 Component FY2014 2Q15 1H2015 Comments/Outlook Portfolio Revenues 994 142 282 De-risking IBIT 179 94 205 — Net IBIT impact to MtM/Other (885) 12 169 decrease with lower LLPs (1) Asset Driven (301) (29) (71) LLP’s / MtM volatili
Slide 31: NCOU: Asset composition
NCOU: Asset composition Total IFRS assets Total IFRS assets In EUR bn, as of 31 March 2015 In EUR bn, as of 30 June 2015 AWM SCG AWM SCG IAS 39 IAS 39 0.9 0.4 reclassified assets Corporate reclassified assets Corporate 0.9 0.2 7.3 Investments 6.4 Investments 5.8 5.4 PBC: Other (1) 1.6 Other loans (2
Slide 32: 2Q 2015: IBIT detail
2Q 2015: IBIT detail 2Q2015 (1) In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other IBIT adjusted CB&S 1,200 (61) (266) 213 (24) 1,338 PBC 483 (37) (0) 0 (3) 524 GTB 283 (17) (139) 0 1 437 AWM 422 (28) (25) 0 (2) 477 C&A (250) 4 (0) (109) (13) (132) Core Bank 2,137 (139) (430) 104 (42) 2,644
Slide 33: 2Q 2014: IBIT detail
2Q 2014: IBIT detail 2Q2014 (1) In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other IBIT adjusted CB&S 828 (161) (259) (111) (5) 1,363 PBC 379 (94) (0) 0 (2) 475 GTB 221 (32) (100) 0 (2) 355 AWM 204 (82) (10) 0 (1) 297 C&A (124) 1 (6) (26) (5) (89) Core Bank 1,507 (368) (375) (137) (15) 2,40
Slide 34: Cautionary statements
Cautionary statements This presentation 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 pro
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