Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (November 2015)
30 slides from Deutsche Bank's debt investor presentation, Nov 13, 2015
Slide 1: Australia fixed income investor roadshow
Deutsche Bank Deutsche Bank Australia fixed income investor roadshow Jonathan Blake, Global Head of Debt Issuance Bernt Gade, Director Investor Relations 10 – 13 November 2015 Deutsche Bank Australia fixed income roadshow 0 November 2015
Slide 2: Deutsche Bank at a glance
Deutsche Bank at a glance Key figures, as of 30 Sep 2015 (in EUR bn) Revenues by business(2) Leverage exposure by business(3) 9M2015 30 September 2015 Total IFRS assets 1,719 Leverage 1 420 1,420 exposure(1) GTB GTB Risk-weighted 408 13% 15% assets(1) AWM Common E C Equity it AWM 5% 46.9 15% Total:
Slide 3: Agenda
Agenda 1 Executing Strategy 2020 2 Liquidity and funding Deutsche Bank Australia fixed income roadshow 2 November 2015
Slide 4: Deutsche Bank at a glance – where we are going
Deutsche Bank at a glance – where we are going Reported Group financial targets 2014 2018 2020 Simpler & CET 1 ratio 11.7% ≥12.5% more efficient Leverage ratio 3.5% ≥4.5% ≥5.0% Less risky Post-tax RoTE 3.5% >10% Aspiration to deliver Dividend per share 0.75 Competitive payout ratio Better capitalise
Slide 5: Strategy 2020: It is all about execution
Strategy 2020: It is all about execution Targeted Execution plan 2018 financial impact Reposition — RWA and CRD4 exposure reductions Investment — Split p division along g client lines — Adjusted j Costs(1) egy 2020 Banking — Exit selected Global Markets business lines and markets EUR <22 bn — IPO /
Slide 6: Reorganised our operating divisions along our client lines
Reorganised our operating divisions along our client lines Current segments Future segments (effective 1Q2016) Sales & Trading Debt Global Markets Corporate Banking & Sales & Trading Equity Securities Corporate Finance Corporate and Investment Global Transaction Banking Global Transaction Banking Ba
Slide 7: RWA planned to be reduced materially but offset by regulatory inflation
RWA planned to be reduced materially but offset by regulatory l t iinflation fl ti Risk-weighted assets, in EUR bn 408 ~60+ ~410+ ~40+ ~360+ ~(10) ~(40) ~20 ~320 ~(40) ( ) ~(30) 3Q2015 Disposal of NCOU Global Business 2018 2015-2018 2018 2019/2020 Further 2020 Postbank wind-down Markets net growth /
Slide 8: Conservative capital growth achieves capital ratios
Conservative capital growth achieves capital ratios Minimum required CET1 capital to achieve target capital ratio In EUR bn Reported Minimum required CET1 capital — 3Q2015 – 2018: No growth in ~51-55 CET1 capital required to reach 12.5% CET1 ratio,, assumingg planned RWA reduction — By 2020: EUR ~4
Slide 9: Further exposure reduction planned to improve leverage ratio
Further exposure reduction planned to improve leverage ratio CRD4 exposure, exposure in EUR bn CRD4 leverage ratio, x.x% fully-loaded 3.6% ≥4.5% ≥5.0% 1,420 ~(140) ( ) — Leverageg ratio target g reflects likely EU regulatory requirements ~(60) and DB’s strategic ~90 ~1,250 ~1,250 objectives ~(70+) (
Slide 10: Control issues must be resolved
Control issues must be resolved In EUR bn Litigation — Insufficient controls and poor Reported net income behavior led to enormous litigation burden — Robust R b t iinvestment t t required i d tto strengthen weak control infrastructure 2.6 4.0 — Know-Your-Customer and Anti- Money-Laundering infrastr
Slide 11: Top priority: Achieve structurally affordable cost base
Top priority: Achieve structurally affordable cost base In EUR bn Revenue expectations — Restructuring including country, client and product reductions to result in revenue loss Planned — Concurrent investments to drive growth in disposals(1) ~4 key areas like Transaction Banking, Asset Management,
Slide 12: Key areas to achieve cost savings
Key areas to achieve cost savings Cumulative targeted savings 2015 – 2018, 2018 in EUR bn Target gross Measures savings — Focus Global Markets business model Expected restructuring — Re-shape Retail banking and severance cost Business — Reduce client footprint in Global Markets ~2 1 ~2.1 — Total 201
Slide 13: In the next three years, we intend to make Deutsche Bank…
In the next three years, we intend to make Deutsche Bank… — Materially reduce number of products, clients and locations … Simpler & — Simplify structure with fewer legal entities more efficient — Manage g towards competitive p cost structure based on a more efficient infrastructure — Exit from highe
Slide 14: Executing Strategy 2020
Agenda 1 Executing Strategy 2020 2 Liquidity and funding Deutsche Bank Australia fixed income roadshow 13 November 2015
Slide 15: Funding activities and profile
Funding activities and profile Funding cost and volume development Funding profile well diversified Issuance, in EUR bn As of 30 September 2015 DB issuance spread, 4 week moving average, in bps(1) Secured 200 Financing Funding and Vehicles; 1% Shorts; 11% 180 160 Unsecured 75% from most stable 17 Wh
Slide 16: Pro forma funding remains robust and well positioned for new regulation
Pro forma funding remains robust and well positioned for new regulation l ti External funding profile In EUR bn X% Most stable funding sources 977 843 ~850 — 2015 funding plan complete with EUR 33 bn raised vs EUR 30 – 35 bn target; Other 25% ~25% 29% 2016 requirements expected to be similar to 2015
Slide 17: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) Deutsche Bank well positioned to meet future TLAC requirements — Final FSB guidance on TLAC to be released in November; expected to be based on Group RWA (16-20% plus buffers) and leverage exposure (twice the leverage ratio requirement) with application not befor
Slide 18: Appendix: Table of Contents
Appendix: Table of Contents Deutsche Bank credit ratings 18 New leadership team 19 Regulatory pressures / RWA inflation 20 Risk reduction in Global Markets 22 C t / employee Cost l reduction d ti ttargets t 23 Litigation update 25 Loan book 26 Impaired loans 27 Non Core Operations Unit Non-Core 28 D
Slide 19: Deutsche Bank's current credit ratings profile
Deutsche Bank’s credit current ratings g pprofile As of 31 October 2015 Stand-alone rating(1) baa3 bbb+ a a Pfandbrief Aaa - - - Counterparty A2 - - - assessment Senior unsecured debt A3(negative) BBB+(stable) A (negative) A (high)(RUR2) Tier 2 Ba1 BBB- A- - - Legacy Tier 1 (Basel 2.5) Ba3 BB BBB- A
Slide 20: New leadership team
New leadership team John Cryan Jürgen Fitschen Co-Chief Executive Officer Co-Chief Executive Officer Kim Hammonds Stuart Lewis Sylvie Matherat Chief Operating Officer Chief Risk Officer Chief Regulatory Officer Quintin Price Garth Ritchie Karl von Rohr Head of Deutsche Asset Management Head of Globa
Slide 21: Regulatory pressures will continue
Regulatory pressures will continue Issues Deutsche Bank intended response — Basel 4 — Fundamental Review of the Trading Book — EUR ~90 bn RWA reduction by 2018 before RWA inflation — Standardised Approach for RWA Counterparty Credit Risk and — Further portfolio optimisation in Global inflation Credi
Slide 22: RWA inflation from regulatory requirements
RWA inflation from regulatory requirements(1) In EUR bn ~100+ Operational risk M k t Risk Market Ri k C dit Ri Credit Risk k Total estimated impact — Fundamental — SA CCR / — Additional own Review of the CRSA(2) Driver and industry Trading Book loss data — Floor assumed — Main impact on at 60 – 70%
Slide 23: Reallocating CB&S resources, primarily in Global Markets
Reallocating CB&S resources, primarily in Global Markets 3Q2015 – 2018 targeted change change, in EUR bn RWA CRD4 Exposure Revenues Exit Market making uncleared CDS Rates legacy: e.g. uncleared Swaps with dealers ~(15) ~(40) ~(0.4) Agency RMBS trading High risk weight securitised trading R ti Ration
Slide 24: Adjusted Cost target EUR <22 bn in 2018
Adjusted Cost target EUR <22 bn in 2018 In EUR bn Intend to execute over the Disposals ~4(1) next 12 – 24 months 9M2015 Policyholder benefits and All goodwill in CB&S and claims / 5.9 PBC written down in 3Q2015 Impairments 9M2015 Litigation 4.0 ~0.6 Net cost reduction ~0.2 ~0.8 ~(1.5-2.5) Restructur
Slide 25: ~9,000 internal employee reductions planned
~9,000 internal employee reductions planned Internal full-time full time equivalents (FTE) (FTE), in 000s ~105 ~103 ~3 ~(20) ~86 ~(5) ~2 ~(6) ~77 ~(9) Total reduction in internal FTE End 2015 Planned GTO Pro-forma Planned Baseline Business Business Infrastructure 2018 plan estimate(1) internalisatio
Slide 26: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation g reserves Contingent g liabilities demands/reserves(1) In USD bn Demands Reserves 4.8 3.2 2.6 2.6 38 3.8 26 2.6 05 0.5 04 0.4 30 Jun 2015 30 Sep 2015 30 Jun 2015 30 Sep 2015 30 Jun 2015 30 Sep 2015 — Significant uncertainty remains as — Inc
Slide 27: Loan book
Loan book In EUR bn 434 430 433 401 411 18 16 393 17 386 18 NCOU 21 19 43 44 44 22 37 39 33 34 AWM 216 216 218 214 215 PBC 213 213 84 81 79 77 77 GTB 76 77 53 62 72 72 77 CB&S 42 48 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 2014 2015 Germany excl. Financial Institutions and Public Sector: 186
Slide 28: Impaired loans
Impaired loans(1) Period end in EUR bn Period-end, (2) (2) Core Bank Non-Core Operations Unit Impaired loan ratio Deutsche Bank Group(3) Impaired loan ratio Core Bank(3) 12,0 3,10% 10,3 10,0 9,5 9,3 , 9,3 , 10 0 10,0 87 8,7 2 60% 2,60% 8,1 3,3 3,3 8,0 2,9 2,8 2,10% 2,6 2,5 6,0 2,2 1,60% 40 4,0 1 10%
Slide 29: Non-Core Operations Unit (NCOU)
Non-Core Operations Unit (NCOU) In EUR bn RWA reduction: Accelerated wind-down Book by IFRS assets 142 As of 30 June 2015 AWM SCG IAS 39 Corporate reclassified assets 0,9 0.2 Investments 6,4 5,4 PBC: Other (1) Other loans (2) 41 2,3 1,6 <10 38 3,8 Monolines PBC: Postbank 4,7 non-core 0,2 June 2012 S
Slide 30: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not hi t i l facts; historical f t they th include i l d statements t t t about b t our beliefs b li f and d expectations t ti andd the th assumptions ti underlying d l i t
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