Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (November 2015)
32 slides from Deutsche Bank's debt investor presentation, Nov 12, 2015
Slide 1: Cédulas Hipotecarias Investor Update
Deutsche Bank Deutsche Bank Cédulas Hipotecarias Investor Update 9-12 November 2015
Slide 2: Deutsche Bank at a glance
Deutsche Bank at a glance 3Q2015 Key figures (in EUR bn) Revenues by business(2) Leverage Exposure by business(3) 9M15 9M15 Total IFRS assets 1,719 Leverage 1,420 Exposure(1) GTB GTB Risk-weighted 408 13% 15% assets(1) AWM Common Equity AWM 5% 46.9 15% Total: Total: Tier 1 capital(1) Germany CB&S EU
Slide 3: Agenda
Agenda 1 DB S.A.E. 2 Cédulas Hipotecarias 3 Strategy 2020 update Deutsche Bank Cédulas Hipotecarias Investor update financial transparency. 3 Treasury / Investor Relations 9-12 November 2015
Slide 4: Deutsche Bank history in Spain
Deutsche Bank history in Spain 125th Anniversary of DB’s presence in Spain Deutsche acquires Banco de Creation of a joint venture The bank launches a new, Madrid with a view to between Deutsche Bank and ambitious strategy with the ensuring its leadership with Zurich Financial Services to creation of
Slide 5: DB S.A.E. – DB's presence in Spanish banking markets
DB S.A.E. – DB’s presence in Spanish banking markets Deutsche Bank AG 99.8% Commitment ownership Deutsche Bank to Spain(1) S.A.E. Corporate & Investment Private,Wealth Private, Wealthand and Global Markets(2) Deutsche Asset Banking(2) Commercial Commercial Clients Clients (2) Management(2) Value add
Slide 6: DB S.A.E. – PWCC Spain Overview
DB S.A.E. – PWCC Spain Overview Extensive franchise… … with a strong focus on clients satisfaction… — DB S.A.E. is the largest foreign bank in the Spanish Transparency(2) Relationship(2) market(1) — Branch network located in all major cities, usually with over 70,000 inhabitants Branches 253 1 St in
Slide 7: DB S.A.E. – Mortgage business
DB S.A.E. – Mortgage business Value proposition of mortgage business Market Share DB S.A.E. New Origination(1)(2) High 2.81% Key Anchor 2.58% quality product product product 2.06% 1.86% Creates > 50% of DB S.A.E.’s Total attractive cross- Low loan loss 1.28% 1.25% selling provisions Assets opportuni
Slide 8: DB S.A.E Financials
DB S.A.E Financials FY2014 Key figures DB S.A.E.’s balance sheet composition In EUR bn In EUR mn Rest of assets, Total: EUR 15,662mn Tax liabilities Total assets 15.7 provisions, 530 42 accruals 1,073 198 Equity 807 Tax Assets 240 Total client loans 13.2 Other financial liabilities Client loans 7,43
Slide 9: Agenda
Agenda 1 DB S.A.E. 2 Cédulas Hipotecarias 3 Strategy 2020 update Deutsche Bank Cédulas Hipotecarias Investor update financial transparency. 9 Treasury / Investor Relations 9-12 November 2015
Slide 10: Key Features
Key Features DB S.A.E.'s inaugural issuance of Spanish mortgage Covered Bonds (“Cédulas Hipotecarias”) Issuance of up to EUR 4-5bn of Cédulas with targeted tenor of 5-10 years Portfolio with very high level of eligibility (as measure of high asset quality) Low-risk portfolio with strong focus on res
Slide 11: Summary of Key Terms of Cédulas
Summary of Key Terms of Cédulas Issuer — Deutsche Bank S.A.E., Madrid Notes — Cédulas Hipotecarias — Currency: EUR — Benchmark size — Medium to long-term tenor [5-10y] — Fixed rate, annual coupons — Spanish law Offering — Denomination: EUR 100,000 — Spanish language documentation registered with the
Slide 12: Cover Pool Details - Overview
Cover Pool Details - Overview DB S.A.E.’s mortgage portfolio vs. Cédulas Cover Pool details (as of 3Q2015) In EUR bn — Average outstanding loan size: EUR 104k Plan — Number of loans: 82,739 — Weighted avg. loan seasoning (years): 6.3 — Weighted avg. remaining loan maturity (years): 20.8 8.6 7.7 — To
Slide 13: Cover Pool Details – Mortgage quality 1/2
Cover Pool Details(1) – Mortgage quality 1/2 High level of Eligibility 90% 6% Main eligibility criteria — Registration on Focus on residential Spanish Property mortgages Register Residential — New production targets only Commercial — Loans must be residential mortgages guaranteed by first mortgage —
Slide 14: Cover Pool Details – Mortgage quality 2/2
Cover Pool Details(1) – Mortgage quality 2/2 High level of Eligibility 90% NPL ratios of Spanish banks (as of 2Q2015) 14% 12% Low non-performing loans 10% (NPL) ratio 8% 6% — DB S.A.E. at low end of Spanish peer range 4% — Debt to income ratio of 2% Spanish Peers clients predominately < 45% 0% Sourc
Slide 15: Cover Pool Details – Tenor profile and purpose
Cover Pool Details(1) – Tenor profile and purpose Long-term mortgage profile > 10y 5y - 10y — Typical mortgage maturity up to 30 years 88% < 5y — Remaining average maturity: 20.9 years 70% 60% Seasoning 50% Avg. 6.3 years 40% — High credit quality demonstrated by high seasoning 30% score 20% — Lower
Slide 16: Credit quality - Locations
Credit quality - Locations Mortgage loans - location % of Pool Madrid 25.5 Barcelona 24.5 Málaga 4.9 Alicante 4.6 Valencia 4.3 Sevilla 3.8 Baleares 3.1 Girona 2.6 Tarragona 2.4 Cadiz 2.2 Rest 22.2 — Top 10 regions account for over 75% of DB S.A.E.‘s mortgage portfolio — Madrid and Barcelona region r
Slide 17: Spanish Real Estate market and Economy
Spanish Real Estate market and Economy House prices stabilizing Spanish’s economy is recovering GDP growth y-o-y Annual house price change in Spain 3.40% 3.40% 20 2.80% 1.40% 15 10 Forecast -1.20% -2.10% 5 2012 2013 2014 2015 2016 2017 In % Source: INE, DB Research 0 Mortgages and housing transactio
Slide 18: Agenda
Agenda 1 DB S.A.E. 2 Cédulas Hipotecarias 3 Strategy 2020 Update Deutsche Bank Cédulas Hipotecarias Investor update financial transparency. 18 Treasury / Investor Relations 9-12 November 2015
Slide 19: DB at a glance – where we are going
DB 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 competitive payout Dividend per share 0.75 ratio Better capitalised Costs(1),
Slide 20: Strategic priorities of Strategy 2020
Strategy 2020: It is all about execution Execution plan Targeted 2018 financial impact Reposition — RWA and CRD4 exposure reductions Investment — Split division along client lines — Adjusted Costs(1) Strategic priorities of Strategy 2020 Banking — Exit selected Global Markets business lines and mark
Slide 21: 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, assuming planned RWA reduction — By 2020: EUR ~4 –
Slide 22: Key areas to achieve cost savings
Key areas to achieve cost savings Cumulative targeted savings 2015 – 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 and ~2.1 Corporate & Inves
Slide 23: 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 towards competitive cost structure based on a more efficient infrastructure — Exit from higher ri
Slide 24: Additional Information
Deutsche Bank Additional Information 9-12 November 2015
Slide 25: Funding activities and profile
Funding activities and profile Funding profile well diversified Funding profile developments As of 30 September 2015 — Total external funding increased by EUR 58 bn to EUR 977 bn Secured Financing (vs. EUR 919 bn as of Dec 2014) Funding and Vehicles, 1% — Increase of EUR 21 bn in transaction banking
Slide 26: 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 131 bn (as of 30 September 2015) DB issuance spread, 12 week moving average, in bps (2) 200 30 29 180 Senior Covered Tier 1 and Tier 2 Senior Covered Tier 1 and Tier 2 160
Slide 27: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) DB 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 before January 2
Slide 28: Deutsche Bank's credit current ratings profile
Deutsche Bank’s credit current ratings profile As of 06 November 2015 Stand-alone rating(1) baa3 bbb+ a a DB AG Pfandbrief Aaa - - - DB S.A.E. Cédulas Aa2 A+ - - DB AG senior unsec A3(negative) BBB+(stable) A (negative) A (stable) Tier 2 Ba1 BBB- A- - - Legacy Tier 1 (Basel 2.5) Ba3 BB BBB- Addition
Slide 29: PWCC Credit Process
PWCC Credit Process Governed by the Credit Cycle Concept – Relationship Manager/Front Office in charge of data gathering of all new clients – New client must comply with all internal and regulatory checks (Know Your Customer, etc) Client Adoption & Due Diligence – Collections process split between P
Slide 30: Credit Strategy
Credit Strategy Focus on high quality clients with conservative credit standards PWCC – Private Households PWCC – SMEs – Maintain existing credit strategy to – Maintain portfolio rotation to enhance ensure good quality of new business overall quality, focus on risk / reward and capital efficiency Mo
Slide 31: Cautionary statements 1/2
Cautionary statements 1/2 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
Slide 32: Cautionary statements 2/2
Cautionary statements 2/2 This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by DB SAE. Neither this presentation nor any part or copy of it may be taken, transmitted into, disclosed or
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