Deutsche Bank AG · XETR:DBK
Deutsche Bank — Deutsche Bank Global Financial Services Conference 2015
36 slides from Deutsche Bank's conference presentation, Jun 3, 2015
Slide 1: Deutsche Bank Global Financial Services Conference: Fixed income update
Deutsche Bank Deutsche Bank Global Financial Services Conference Fixed income update Jonathan Blake, Global Head of Debt Issuance James Rivett, Head of Debt Investor Relations 2-3 June 2015
Slide 2: Deutsche Bank at a glance
Deutsche Bank at a glance 1Q2015 Key figures (in EUR bn) Revenues by business(2) Core bank adjusted IBT(3) FY2014 FY2014 Total IFRS assets 1,955 Leverage 1,549 Exposure(1) GTB GTB Risk-weighted 431 13% 16% assets(1) AWM AWM Common Equity 15% 13% 47.8 Total: Total: Tier 1 capital(1) Germany CB&S CB&S
Slide 3: Agenda
Agenda 1 Strategy update 2 Results update 3 Liquidity and funding Deutsche Bank Deutsche Bank Global Financial Services Conference financial transparency. 3 Treasury / Investor Relations June 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 chang
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 net ~EUR 130-150bn Invest in client solutions, advisory and equities Net leverage reduction of
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 for
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 impact… 5
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 from
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: Top-down savings targets
Top-down savings targets In EUR bn Target Gross cost savings p.a. Cum. CtA Details on next page Narrow perimeter (e.g., de-emphasizing of product/client Additional segments, locations) ~3.5 ~3.7 gross savings Increase efficiency (e.g., process streamlining, IT/Ops platform optimization) Modernize DB
Slide 11: Transform our operating model: Contributing ~EUR 3.5bn additional organic gross savings
Transform our operating model: Contributing ~EUR 3.5bn additional organic gross savings In EUR bn Target Gross cost savings p.a. Cum. CtA Structural efficiency levers Rightsizing of FTE and platform in alignment with: Narrow – Exit of structurally unprofitable businesses ~1.3 ~1.4 perimeter – Countr
Slide 12: Agenda
Agenda 1 Strategy update 2 Results update 3 Liquidity and funding Deutsche Bank Deutsche Bank Global Financial Services Conference financial transparency. 12 Treasury / Investor Relations June 2015
Slide 13: Key Group financial highlights
Key Group financial highlights In EUR bn, unless otherwise stated Group Core Bank (1) 1Q2015 1Q2014 1Q2015 1Q2014 Income before income taxes 1.5 1.7 1.9 2.2 Net income 0.6 1.1 n.a. n.a. Diluted EPS (in EUR) 0.38 0.98 n.a. n.a. Post-tax return on average active equity 3.1% 8.0% 5.1% 12.3% Profitabili
Slide 14: Net revenues
Net revenues In EUR bn EUR 2.0bn(1) 10.4 8.4 7.9 7.9 7.8 1Q 2Q 3Q 4Q 1Q 2014 2015 1Q2015 year-over-year revenue development CB&S PBC GTB DeAWM — Revenues +15% y-o-y — Revenues +1% y-o-y — Revenues +11% y-o-y — Revenues +18% y-o-y — Strong performance in — Record revenues in — Performance driven by (
Slide 15: Core Bank adjusted IBIT
Core Bank adjusted IBIT In EUR bn 1Q2015 Group reported IBIT to Core Bank adjusted IBIT: EUR (4) EUR 2.0 bn 0.9 bn 0.2 3.5 0.2 1.2 2.6 0.4 1.9 1.5 1Q2015 NCOU Core Bank Litigation (1) Investing in our CVA / DVA / 1Q2015 1Q2014 Group reported reported IBIT platform (2) FVA (3) Core Bank Core Bank IBI
Slide 16: Costs: Operating Cost and OpEx Development
Costs: Operating Cost and OpEx Development In EUR bn 1Q2015 vs. 1Q2014 OpEx program to date 1Q2015 In EUR bn Invested/ Further strengthening 2012-14 achieved of control functions Target and regulatory 4.5 framework 6.7 4.0 6.0 0.5 (0.3) 0.1 (0.1) 0.5 0.3 0.2 1Q2015 reflects full year 2015 BRRD bank
Slide 17: Litigation: Update
Litigation: Update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves (1) In USD Demands Reserves 4.8 3.2 4.8 4.8 3.2 1.9 0.5 0.4 31 Dec 2014 31 Mar 2015 31 Dec 2014 31 Mar 2015 31 Dec 2014 31 Mar 2015 — There continues to be significant — Includes possible obl
Slide 18: Capital: Common Equity Tier 1 development
Capital: Common Equity Tier 1 development CRD4, fully loaded Common Equity Tier 1 capital Events in the quarter In EUR bn ECB decision on recognition of interim profits 11.7% 11.1% requires dividend accrual based on the highest of: 1.9 47.8 (a) the bank’s internal dividend policy 0.5 (b) previous ye
Slide 19: Capital: RWA development
Capital: RWA development CRD4, fully loaded RWA Events in the quarter In EUR bn — Business growth in credit and market risk 18.2 431.4 — Market risk RWA also impacted by methodology changes (EUR 3.2 bn) 8.4 6.3 — Further increase in Operational Risk RWA given 4.6 394.0 recognition of external losses
Slide 20: Leverage ratio: Strong ratio despite FX headwinds
Leverage ratio: Strong ratio despite FX headwinds CRD4, fully-loaded 1Q 2015 Events in the quarter CRD4 FX Movements x% Leverage ratio, Exposure (net of FX) fully loaded — Almost all of the 1Q2015 increase in Leverage Exposure is explained by FX movements 3.5% 3.4% FX neutral EUR 3bn 1,549 (15) (1)
Slide 21: Agenda
Agenda 1 Strategy update 2 Results update 3 Liquidity and funding Deutsche Bank Deutsche Bank Global Financial Services Conference financial transparency. 21 Treasury / Investor Relations June 2015
Slide 22: Funding activities and profile
Funding activities and profile Funding cost and volume development Funding profile well diversified Issuance, in EUR bn As of 31 March 2015 DB issuance spread, 4 week moving average, in bps (1) Secured Financing 200 Funding and Vehicles, 1% Shorts, 10% 75% from most stable 180 Unsecured funding sour
Slide 23: Issuance strategy
Issuance strategy Historical funding activities 2015 Funding activities In EUR bn — Funding plan already more than 50% completed Senior Covered AT1 / Tier 2 — Raised EUR 20 bn at average spread of 49bps over relevant floating index and average tenor of 5.4 years — Highlights in 2015 5 — EUR 1.25 bn
Slide 24: Capital markets maturity profile
Capital markets maturity profile As of 31 Mar 2015, in EUR bn Maturities Observations Total: EUR 155 bn(1) (2) — Well laddered maturity profile Senior Covered Tier 1 and Tier 2 35 — Maturities (including Postbank) not more than EUR 24 bn p.a. 30 — Capital issues reflected as per maturity date; 25 14
Slide 25: 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 implementation not before January 2019 — German draft legislation(1)
Slide 26: Additional Information
Deutsche Bank Additional Information 2-3 June 2015
Slide 27: Deutsche Bank's credit current ratings profile
Deutsche Bank’s credit current ratings profile As of 29 May 2015 Pfandbrief Aaa - - - Stand-alone rating(1) baa3 (stable) bbb+ a a 2 3 Senior unsecured debt A3(negative) A(CWN ) A (negative) A (high)(RUR ) Tier 2 Ba1 BBB A- - Legacy Tier 1 (Basel 2.5) - Ba3 BBB- BBB- Additional Tier 1 (Basel 3) Ba3
Slide 28: DB Mortgage Pfandbrief
DB Mortgage Pfandbrief In EUR bn, unless otherwise stated Mortgage Cover Pool Pfandbrief issuance volumes 2.5 Cover Pool 1Q 2015 4Q 2013 4Q 2012 Pfandbrief Outstanding €5.6 bn €5.0 bn € 4.0 bn 2.0 Cover Pool Outstanding € 7.2 bn € 6.5 bn € 5.8 bn OC (as % of Mortgage Portfolio) 28.22% 30.17% 44.55%
Slide 29: CRD4 – Leverage Exposure and risk weighted assets
CRD4 – Leverage Exposure and risk weighted assets In EUR bn Leverage Exposure vs. RWA(1) CRD4 – Leverage Exposure RWA 1,445 1,549 356 356 Non-derivative trading assets 196 64 64 212 77 Market Risk RWA 73 Derivatives(2) 358 368 CVA 23 69 Lending 406 429 250 126 Reverse repo / Credit Risk RWA 260 secu
Slide 30: Loan book
Loan book In EUR bn 434 401 411 18 386 393 18 NCOU 21 19 43 22 37 39 33 34 AWM 216 214 215 PBC 213 213 77 84 GTB 76 77 77 CB&S 48 53 62 72 42 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 2014 2015 Germany excl. Financial Institutions and Public Sector: 186 185 185 184 184 184 184 185 184 Note: Loan amounts ar
Slide 31: Impaired loans
Impaired loans(1) Period-end, in EUR bn Core Bank Non-Core Operations Unit (3) Impaired loan ratio Deutsche Bank Group(3) (2) Impaired loan ratio Core Bank(3) 12.0 10.3 3.10% 10.0 9.5 9.3 9.4 10.0 2.60% 3.3 3.3 2.9 2.7 2.10% 8.0 2.8 6.0 1.60% 4.0 6.9 1.10% 6.8 6.7 6.5 6.7 2.0 0.60% - 0.10% 1Q 2Q 3Q
Slide 32: NCOU IBIT components
NCOU IBIT components IBIT in EUR m, Assets and RWA data as of 31 Mar 2015 Component FY2013 FY2014 1Q2015 Comments/Outlook Portfolio Revenues 1,592 1,107 163 Asset Driven De-risking IBIT 454 181 111 — Net IBIT impact to MtM/Other (785) (901) 166 decrease with lower (RWA 46bn, IFRS LLPs(1) (812) (309)
Slide 33: NCOU: Asset composition
NCOU: Asset composition Total IFRS assets Total IFRS assets In EUR bn, as of 31 December 2014 In EUR bn, as of 31 March 2015 AWM SCG AWM SCG IAS 39 IAS 39 reclassified assets 0.9 0.4 reclassified assets CI 0.7 1.2 CI 7.4 5.8 7.3 5.6 (2) PBC: Other (1) Other loans (2) PBC: Other (1) 1.5 Other loans 2
Slide 34: 1Q 2015: IBIT detail
1Q 2015: IBIT detail 1Q2015 (1) In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other IBIT adjusted CB&S 643 (70) (1,161) (226) (24) 2,124 PBC 536 (84) (1) 0 (0) 622 GTB 409 (12) (0) 0 (1) 422 AWM 291 (38) (1) 0 (2) 332 C&A (18) (2) (1) 1 (5) (12) Core Bank 1,861 (206) (1,164) (224) (32) 3,487
Slide 35: 1Q 2014: IBIT detail
1Q 2014: IBIT detail 1Q2014 (1) In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other IBIT adjusted CB&S 1,439 (111) 18 3 (12) 1,540 PBC 475 (107) (0) 0 (4) 586 GTB 357 (19) 2 0 (1) 375 AWM 167 (56) (13) 0 (4) 239 C&A (216) (5) (1) (95) (7) (109) Core Bank 2,221 (297) 6 (91) (27) 2,630 NCOU (5
Slide 36: 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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