Deutsche Bank AG · XETR:DBK
Deutsche Bank — Deutsche Bank Aktiengesellschaft — Q4 2016 Earnings Presentation
49 slides from Deutsche Bank's earnings presentation, Feb 2, 2017
Slide 1: Exhibit 99.2 February 2017
Exhibit 99.2 02 February 2017
Slide 2: Group financial highlights
EUR bn, unless otherwise stated Group financial highlights Group financial highlights Note:Figures may not add up due to rounding differences Total noninterest expense excluding restructuring & severance, litigation, impairment of goodwill and other intangibles, policyholder benefits and claims Incl
Slide 3: Litigation update
Litigation update Litigation Reserves, in EUR bn Achievements 2016 Settled or otherwise resolved a significant number of large matters Current reserves of EUR 7.6bn include EUR ~ 4.7bn for matters already settled/agreements-in-principle to settle have been reached. Resolved matters without action Ba
Slide 4: NCOU lifetime achievements
NCOU lifetime achievements EUR bn Jun 2012 RWA, IFRS and CRD4 represents restated positions which excludes Postbank and includes Special Commodities Group . Jun 2012 RWA also reflects Fully loaded Basel 3 impacts Jun 2012 CRD4 Leverage incorporates estimates for BCBS rules Bps calculation based on R
Slide 5: Quarterly Net Income
Revenues increased EUR 0.5 bn including a gain on sale related to the Hua Xia Bank Ltd. stake of EUR 0.8bn Provisions for credit losses increased primarily related to the shipping portfolio Adjusted Costs declined EUR 465 m reflecting lower performance related compensation 4Q2016 included EUR 1.6 bn
Slide 6: Full year Net Income
FX-adjusted deltas(1) Full year Net Income Net income FY2016 vs FY2015, EUR m CLP Excluding FX effects Total delta incl. FX effects FX effects (2) (52) (53) (26) (55) (0) (21) (40) 3 531 7 180 37 54 (1,567) (564) 207 (1) 254 (1,176) (663) (427) 1,717 284 2,821 4,402 129 Revenues Impairments Policyho
Slide 7: Costs
Costs EUR bn Note: Figures may not add up due to rounding differences Impairments refer to impairments of goodwill and other intangibles Includes EUR 31m release of provisions for loan processing fees in 4Q2016 Total noninterest expense excluding restructuring & severance, litigation, impairment of
Slide 8: Adjusted Costs
Adjusted Costs EUR m Note: Figures may not add up due to rounding differences Total noninterest expense excluding restructuring & severance, litigation, impairment of goodwill and other intangibles and policyholder benefits and claims To exclude the FX effects the prior year figures were recalculate
Slide 9: Tier 1 capital
Tier 1 capital CRD4, fully loaded, EUR bn Events in the quarter Tier 1 capital Note:Figures may not add up due to rounding differences CET1 capital down by EUR (0.2)bn q-o-q to EUR 42.7bn as negative net income was offset by the benefit from the disposal of the stake in Hua Xia Bank Ltd. and FX effe
Slide 10: RWA
RWA CRD4, fully loaded, EUR bn Events in the quarter 4Q2016 fully loaded CET1 ratio of 11.9%, ~80bps above 3Q2016, including 54bps from disposal of 19.99% stake in Hua Xia Bank Ltd. RWA down by EUR (27)bn, including EUR (10)bn from disposals of Abbey Life (EUR (4)bn) and Hua Xia Bank Ltd. stake (EUR
Slide 11: Pillar Requirements – DB above required minimum levels
Pillar 2 Requirements – DB above required minimum levels Events in the quarter ECB notified DB of its Supervisory Review and Evaluation Process (SREP) conclusions for 2017, setting Pillar 2 minimum requirements for the Common Equity Tier 1 (CET 1) ratio at 9.51% on a CRR/CRD 4 phase-in basis This re
Slide 12: Leverage exposure
Leverage exposure CRD4, fully loaded, EUR bn Events in the quarter Fully loaded Leverage ratio at 3.5% in 4Q2016 vs 3.5% in 3Q2016 Leverage exposure down by EUR (7)bn, including FX effect of EUR 33bn. FX neutral decrease is EUR (39)bn Portfolio movements reflect de-leveraging of business assets (SFT
Slide 13: Funding and liquidity
Funding and liquidity As of 31 December 2016, EUR bn Well diversified funding profile 72% from most stable funding sources Total funding sources(4): EUR 977bn EUR 218bn of Liquidity Reserves (EUR 200bn September) 128% Liquidity Coverage Ratio (increase vs. September 122%) Total Loss Absorbing Capaci
Slide 14: Net balance sheet
Net loans Repo / Securities borrowed(2) Securities(1) Cash, central bank and interbank balances Other assets(5) Brokerage receivables(4) Trading liabilities(7) , including - Retail EUR 292bn Transaction banking EUR 199bn Other liabilities(5) Brokerage payables(4) Derivatives(3) Long-term debt(8) Uns
Slide 15: Segment results
Segment results 402016 results 15 Investor Relations 02 February 2017
Slide 16: Global Markets
Global Markets FY 2016 revenues were 14% lower y-o-y, impacted by a challenging environment for Equities, DB-specific concerns & the impact of Strategy 2020 implementation 4Q 2016 revenues were 3% lower y-o-y (2% higher ex- CVA/DVA/FVA) versus 4Q 2015. DB specific concerns adversely impacted client
Slide 17: Sales & Trading revenues
Sales & Trading revenues Sales & Trading Debt Sales & Trading revenues 4Q2016 FX revenues were higher y-o-y driven by higher client activity as a result of increased volatility particularly around US elections Rates revenues were flat y-o-y driven by solid client flow offset by challenging condition
Slide 18: Corporate and Investment Banking
Note: Figures may not add up due to rounding differences Based on average shareholders' equity Based on average tangible shareholders’ equity Corporate and Investment Banking 4Q2016 IBIT and revenues flat y-o-y as strong revenue performance in Corporate Finance was counterbalanced by lower Transacti
Slide 19: Corporate and Investment Banking
Corporate and Investment Banking Origination & Advisory Advisory Transaction Banking Origination, Loan Products & Other Transaction Banking: TFCMC 4Q2016 9% down y-o-y. Performance has been impacted by persistent low interest rates in Europe, subdued trade volumes combined with ongoing portfolio man
Slide 20: Private, Wealth & Commercial Clients
Note: Figures may not add up due to rounding differences Based on average shareholders’ equity Based on average tangible shareholders’ equity Includes EUR 31m release of provisions for loan processing fees in 4Q2016 Includes goodwill / other intangible impairment; excl. Hua Xia Bank Ltd. Private,Wea
Slide 21: Private, Wealth & Commercial Clients: Business Units
Private,Wealth & Commercial Clients: Business Units Includes revenues of the Business Units PCC Germany and PCC International; excludes revenues from Hua Xia Bank Ltd. Decline driven by PCS deconsolidation effect (2) Private & Commercial Clients (PCC) FY2016 PCC revenues down 7% versus FY2015 driven
Slide 22: Deutsche Asset Management
Note: Figures may not add up due to rounding differences Net revenues ex mark to market movements on policyholder positions in Abbey Life Noninterest expenses ex policyholder positions in Abbey Life and impairments In EUR bn Based on average shareholders’ equity Deutsche Asset Management Deutsche As
Slide 23: Postbank
Note:Figures may not add up due to rounding differences Postbank segment figures do not match Postbank stand-alone view figures due to separation cost and other items in C&A segment as well as further consolidation effects (e.g. PPA) Based on average shareholders’ equity Based on average tangible sh
Slide 24: Non-Core Operations Unit
Note: Figures may not add up due to rounding differences Fully loaded, in EUR bn In EUR bn Non-Core Operations Unit Non-Core Operations Unit Net revenues include de-risking gains of EUR 40m Noninterest expenses higher due to litigation costs related to the DoJ RMBS settlement De-risking activity in
Slide 25: Consolidation & Adjustments
Consolidation & Adjustments Consolidation & Adjustments Note:Figures may not add up due to rounding differences From 2016 onwards, certain Liquidity Management activities previously included within the business segments are now being centrally managed by Treasury and therefore have been transferred
Slide 26: Outlook
Outlook Adjusted Costs target 2018 of EUR <22bn expected to be achieved Whilst 2015 and 2016 were peak year for litigation, 2017 continues to be burdened by resolving legacy matters 2017 revenues expected to grow on the back of improved outlook – January start strong across almost all businesses Man
Slide 27: Appendix
Appendix 402016 results 2 Investor Relations 02 February 2017
Slide 28: Appendix: Table of Contents
Appendix: Table of Contents 30 P&L details 41 NCOU details 43 CRD4 – Leverage Exposure and Risk Weighted Assets 44 Loan book 45 Impaired loans 46 Value-at-Risk Invested assets 47 Headcount 49
Slide 29: Net revenues
EUR bn Net revenues Net revenues (1)Figures may not add up due to rounding differences (2)Includes EUR (43)m unfavorable FX movements Contribution to Group revenues ex Consolidation & Adjustments by business segment (1):
Slide 30: Provision for credit losses
Provision for credit losses EUR m 2015 (1) (1) 2015 Cost of Risk DB Group Cost of Risk Core Bank Cost of Risk(1) GM 1 5 0 43 15 39 30 58 50 142 CIB 50 39 90 163 136 115 176 244 342 672 PW&CC 80 74 54 92 36 66 57 95 300 255 Postbank 57 26 64 64 41 34 45 63 211 184 Note:Divisional figures do not add u
Slide 31: Key drivers of credit loss provisions in 2016
Key drivers of credit loss provisions in 2016 Industry and Regional Breakdown of EUR 1,383m CLPs, 31 Dec 2016 CLPs by major industries CLPs by major regions Technology Consumer Industrials Homogeneous (1) Steel, Metals & Mining CLPs are determined with statistical approach, based on days past due; h
Slide 32: Group Shipping Loan Portfolio
Group Shipping Loan Portfolio Portfolio well diversified by asset class (26% container, 21% bulker, 21% tanker, 7% ECA, 5% offshore, 20% other) and region (41% Germany, 28% Greece, 14% EMEA, 10% Nordic) and single names (top 15 at 25%) Provisions primarily driven by developments affecting the contai
Slide 33: Reported and adjusted costs
Noninterest expenses, in EUR bn Reported and adjusted costs Cost: Reported and adjusted Compensation and benefits Noninterest expenses excl. compensation and benefits Note: Adjusted Costs is a non-GAAP financial measure most directly comparable to the IFRS financial measure noninterest expenses. Adj
Slide 34: Litigation update
Litigation update EUR bn Litigation reserves Contingent liabilities Mortgage repurchase demands/reserves(1) Demands Reserves In USD bn In 4Q2016, Deutsche Bank continued to make progress resolving some of its highest risk and other legacy matters DOJ-RMBS (FIRREA) Russia/ UK Equities Trading with re
Slide 35: 4Q2016: IBIT detail
4Q2016: IBIT detail 2Q16: IBIT detail Note:Figures may not add up due to rounding differences (1)Includes EUR 31m release of provisions for loan processing fees in 4Q16
Slide 36: 4Q2015: IBIT detail
4Q2015: IBIT detail 2Q15: IBIT detail Note:Figures may not add up due to rounding differences
Slide 37: FY2016: IBIT detail
FY2016: IBIT detail 1H16: IBIT detail Note:Figures may not add up due to rounding differences (1)Includes EUR 31m release of provisions for loan processing fees in 4Q16
Slide 38: FY2015: IBIT detail
FY2015: IBIT detail 1H15: IBIT detail Note:Figures may not add up due to rounding differences
Slide 39: Post-tax RoTE
In EUR m, unless otherwise stated Post-tax RoTE Post Tax RoTE Note:Post-tax return on average tangible shareholders’ equity is calculated as net income (loss) attributable to Deutsche Bank shareholders as a percentage of average tangible shareholders’ equity. Net income (loss) attributable to Deutsc
Slide 40: NCOU IBIT components
NCOU IBIT components EUR m Note:Figures may not add up due to rounding differences De-risking impact reported in LLPs are combined with revenues in the de-risking IBIT line NCOU (2,264) (3,207) Asset-driven Portfolio revenues De-risking IBIT(1) MtM/Other LLPs Costs Total Most significant Litigation
Slide 41: NCOU: Residual assets to be transferred
NCOU: Residual assets to be transferred EUR bn, as of 31 December 2016 Total IFRS assets Total RWA Operational Risk RWA to be reallocated across the divisions EUR 9 bn EUR 6 bn GM PW&CC CIB C&A GM PW&CC CIB C&A Operational Risk(1) Operational Risk(1) Credit Risk Market Risk RWA, fully-loaded
Slide 42: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, fully loaded, EUR bn Leverage Exposure vs. RWA(1) 171 Note:Figures may not add up due to rounding differences RWA excludes Operational Risk RWA of EUR 93bn Excludes any related Market Risk RWA which has been fully allocated to non-derivatives trading
Slide 43: Loan book
Loan book In EUR bn Note:Loan amounts are gross of allowances for loan losses. Figures may not add up due to rounding differences. 2015 2016 433 30-Sep 433 30-Jun 31-Mar 31-Dec
Slide 44: Impaired loans
Impaired loans(1) Period-end, EUR bn Note:Figures may not add up due to rounding differences (1)IFRS impaired loans include loans which are individually impaired under IFRS, i.e. for which a specific loan loss allowance has been established, as well as loans collectively assessed for impairment whic
Slide 45: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, EUR m Average VaR Stressed VaR(1) (1)Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses a historical market data from a period of significant financial stress (i.e. characterized by high volatilities and extreme price movements) 4Q2015 4Q20
Slide 46: Invested Assets / Client Assets – PW&CC
Invested Assets / Client Assets – PW&CC EUR bn Note: Figures may not add up due to rounding differences Assets under Administration include assets over which DB provides non investment services such as custody, risk management, administration and reporting (including execution only brokerage) as wel
Slide 47: Invested Assets / Client Assets – AM
Invested Assets / Client Assets – AM EUR bn Note: Figures may not add up due to rounding differences Assets under Administration include assets over which DB provides non-investment services such as custody, risk management, administration and reporting. 1Q2015 2Q2015 3Q2015 4Q2015 FY2015 1Q2016 2Q2
Slide 48: Group headcount
Full-time equivalents, at period end Group headcount Group headcount
Slide 49: Forward-looking 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 projections as they are c
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