Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (August 2022)
33 slides from Deutsche Bank's debt investor presentation, August 2022
Slide 1: Client & Creditor Overview
Deutsche Bank Investor Relations Client & Creditor Overview August 2022
Slide 2: A strong German bank with a broad global network
A strong German bank with a broad global network As of 31 December 2021 12% 38% Regional 22% revenue split 28% Germany EMEA Americas APAC 82,969 156 58 € 1.5 tn € 476 bn € 25.4 bn Employees Nationalities Countries Assets under Loan book Revenues Management Deutsche Bank Client & Creditor Overview 1
Slide 3: Agenda
Agenda 1 Our transformation achievements 2 Strategic evolution to 2025 3 Appendix Deutsche Bank Client & Creditor Overview 2 Investor Relations
Slide 4: Delivering on the promises we made in 2019
Delivering on the promises we made in 2019 1 2 3 4 5 Create four Exit Cut Invest in Manage and client-centric businesses costs technology & liberate capital divisions growth Focus on market Exit Equities Sales & Overhaul our front- Invest in our leading Create a Capital leading businesses Trading, r
Slide 5: On track to achieve our financial milestones
On track to achieve our financial milestones In % 2018 2021 H1 2022 2022 guidance Return on tangible (0.1) 3.8 8.0 8 equity (RoTE) Core Bank RoTE 2.4 6.4 10.1 >9 CIR 92.7 84.6 73.3 mid to low 70s CET1 ratio 13.6 13.2 13.0 >12.5 Leverage ratio 4.1 4.9 4.3 ~4.5 Note: Throughout this presentation total
Slide 6: Continued improvement in profitability
Continued improvement in profitability In € bn, unless stated otherwise Profit (loss) before tax H1 2022 progress x% RoTE x% Cost/income ratio Significant improvement in profitability bolsters (0)% (11)% 0% 4% 8% 8% resilience in an uncertain environment: € 2.4bn post-tax profit, +31% YoY 93% 108% 8
Slide 7: All core businesses demonstrating clear momentum
All core businesses demonstrating clear momentum H1 2022(1) Continued improvement in Corporate Bank operating leverage from higher rates, business volumes and +18% 10% 66% growth in fees, as well as a lower Revenue RoTE CIR cost base growth Continued FIC franchise Investment Bank development, with i
Slide 8: Ongoing progress, despite pressures
Ongoing progress, despite pressures In % Cost/income ratio Comments 87.1 78.5 Continued progress reducing cost/income ratio, 73.3 despite unforeseen and uncontrollable items Strict cost discipline with select investments in core businesses to deliver efficiencies over time Cost/income ratio target o
Slide 9: Self-funded transformation offsetting headwinds
Self-funded transformation offsetting headwinds CET1 ratio, in % 13.6 13.2 0.2 13.0 (1.3) 0.5 1.4 (1.0) 2018 Regulatory Capital impact Core Bank CRU net impact Other 2021 Q2 2022 impact of capital transformation accretion effects Self-funded transformation while Capital distribution announced in ~€
Slide 10: High quality loan book supports credit loss provisions
High quality loan book supports credit loss provisions >75% composed of Private Bank and Corporate Bank(1) Resilient loan book with conservative Other Investment composition, full year credit loss provision 1% Bank guidance of ~25bps confirmed Private Bank 20% 53% 26% Corporate Bank Strong risk mana
Slide 11: Agenda
Agenda 1 Our transformation achievements 2 Strategic evolution to 2025 3 Appendix Deutsche Bank Client & Creditor Overview 10 Investor Relations
Slide 12: Your Global Hausbank
Building on our heritage Your Global Hausbank Deep understanding Long-term oriented partner of client needs through every cycle Global network combined with Digital channels and local expertise personal advice Comprehensive and Agile organization anticipating sophisticated product suite future clien
Slide 13: Key themes of this decade playing to our strengths
Key themes of this decade playing to our strengths Further deploy risk Further invest into management expertise to data and advisory clients capabilities Continue to strengthen Build out transition advisory propositions dialogue and across businesses financing capabilities Expand lending a
Slide 14: Revenues planned to reach ~€ 30bn by 2025
Revenues planned to reach ~€ 30bn by 2025 Revenues, in € bn, unless stated otherwise Positioning as Global Hausbank enables growth on the back +3.5-4.5% CAGR of key themes of this decade ~30 25.4 Volume growth particularly in low risk, € 2.0bn - € 2.5bn stable businesses Strategic initiatives at low
Slide 15: Stable cost base supports further CIR reduction
Stable cost base supports further CIR reduction Cost/income Ratio (22.5)pp Significantly enhanced operating leverage driven by revenue 85% growth and continued cost discipline <62.5% Absence of transformation-related ~€ (2.7)bn → effects and lower CRU costs Targeted additional operational ~€ (2.0)bn
Slide 16: Operating leverage to drive increased RoTE target
Operating leverage to drive increased RoTE target Return on tangible equity and CIR in % CIR 85 (>22)pp <62.5 RoTE >6pp (1) 3 (2) >10 6 3.8 2021 Revenues Costs Provision for Other(1) 2025 target credit losses Objectives (1) Includes impacts from noncontrolling interests, additional equity components
Slide 17: Strong capital on glidepath to Basel III implementation
Strong capital on glidepath to Basel III implementation CET1 ratio, in % ~€ 25bn RWA ~13 13.2 Distance to € 5bn(1) MDA ≥200bps Includes Core Bank net income and ~2.5% ~11 RWA growth p.a. 10.4 Cyclical buffer(2) Maximum Distributable Amount 2021 2021 Core Bank Capital Release Basel III Capital return
Slide 18: Growing shareholder distribution over time
Growing shareholder distribution over time Distribution, in € bn 8(1) ~ € 3.3bn 2025+ payout guidance anticipated total dividends for FY 2021-2024 2025 Dividends per share (in €) 50% total payout ratio through a combination of dividends paid in respect of FY 2024 and share buy- +50% p.a. 0.68 backs
Slide 19: Financial targets and capital objectives
Financial targets and capital objectives Our financial targets to 2025 >10% 3.5-4.5% <62.5% Post-tax RoTE Revenue CAGR Cost/income ratio in 2025 2021-2025 in 2025 Capital objectives ~13% CET1 ratio 50% Total payout ratio from 2025 Deutsche Bank Client & Creditor Overview 18 Investor Relations
Slide 20: Our path from stabilization to industry leadership
Our path from stabilization to industry leadership ✓ Stabilization and transformation Sustainable growth Industry leadership (2019 – today) (today – 2025) (2025+) Client centric-setup Strong competitive positioning Leading Global Hausbank Rightsizing and efficiency Profitable growth and ea
Slide 21: Appendix
Appendix Deutsche Bank
Slide 22: Russia: credit risk overview
Russia: credit risk overview Q2 2022 Loan exposure to Russia Additional contingent risk € 1.3bn (1) € 0.5 bn € 0.6bn on a net basis(2) Material operations and cash flows outside € 0.9 bn of Russia Booked offshore € 0.4bn Largely mitigated via − Export Credit Agency coverage Large Russian € 0
Slide 23: Balance sheet of subsidiary OOO Deutsche Bank
Balance sheet of subsidiary OOO “Deutsche Bank” Q2 2022 Balance Sheet Capital Liquidity € 1.6bn € 0.4bn (1) ~€ 0.7bn excess liquidity in No cross-border funding foreign currency placed required; local operations self- with Group funded Assets ~€ 0.6bn of Central Bank >30% CET1 ratio cash (RUB)
Slide 24: Sustainable Finance strategy well on track
Sustainable Finance strategy well on track In € bn, cumulative since 2020 Sustainable Finance(1) volumes versus target Reported volumes by business and product type +9% +8% +5% >200 106 191 177 28 157 52 10 78 32 46 42 32 YE 2020 YE 2021 Q1 2022 H1 2022 YE 2022 Investment Bank Corporate Bank Private
Slide 25: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Q2 2022 highlights Our key focus areas Recent achievements – Increase of cumulative volumes in sustainable financing and investment to € 191bn (1), with growth in all businesses Sustainable – Deal highlights: 1st green bond issuance by Austrian government due in May 2
Slide 26: Deutsche Bank's performance in leading ESG ratings
Deutsche Bank’s performance in leading ESG ratings Overview of core ESG ratings as of June 30, 2022 Score range Rating Rating agency ESG rating criteria (weighting) (best to Rating development score DB worst) − Environment (15%) − Social (50%) AAA to CCC A Stable at A − Governance (35) − Corporate G
Slide 27: Ongoing enhancements in risk management and controls pivotal to 2025 strategy
Ongoing enhancements in risk management and controls pivotal to 2025 strategy Building on strong risk culture and enriching non-financial risk framework Risk framework Evolution of ESG / climate framework per regulatory and industry practices evolution Increasing vigilance over escalating risk
Slide 28: Current ratings
Current ratings August 2022 Moody‘s Investors S&P Global Fitch Ratings DBRS Services Ratings Counterparty obligations (e.g. deposits / structured notes / A2 A-(1) A- A (high) derivatives / swaps / trade finance obligations) Senior Preferred(2) A2 A- A- A (low) Long- term unse- cured Non-preferred Ba
Slide 29: Depositors and counterparties are protected by €115bn loss-absorbing capacity
Depositors and counterparties are protected by € 115bn loss-absorbing capacity(1) Loss absorbing capacity as % of RWA(6) Deposits ≤ €100k / short-term liabilities(2) Deposits > €100k of Loss participation natural persons / SMEs 46 45 only if TLAC is Other deposits(3), operating exhausted liabilities
Slide 30: Level 3 assets
Level 3 assets In € bn, as of 30 June 2022 Assets (total: € 29bn) Comments Equity securities Mortgage backed securities Other 1 3 0 — Level 3 is an indicator of valuation uncertainty and not of asset quality Debt 12 Derivative — The movements in level 3 assets reflect securities 5 Assets that the po
Slide 31: Conservatively managed balance sheet
Conservatively managed balance sheet Net(1) in € bn, as of 30 June 2022 Assets Liabilities & equity Comments 1,038 1,038 Trading and Liquidity 164 related liabilities(3) reserves(2) 244 43 Other liabilities(5) — Resilient balance sheet — Liquidity reserves account for 24% of Trading and 243 net bala
Slide 32: Contacts and key additional materials
Contacts and key additional materials Investor Relations contact details Deutsche Bank AG Investor Relations Team Tel: +49.69.910-8000 [email protected] Links to key investor presentations: • Q2 2022 results (27 July 2022): Q2 2022 - Equity Analyst Presentation (db.com) • Investor Deep Dive (10 March 202
Slide 33: Cautionary statements
Cautionary statements 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
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