Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (June 2018)
31 slides from Deutsche Bank's debt investor presentation, June 2018
Slide 1: Deutsche Bank - Strategy on Group's Covered Bond Platforms
Deutsche Bank Deutsche Bank - Strategy on Group’s Covered Bond Platforms Marco Zimmermann, Head of Issuance Thomas Rueckert, Treasury Markets – Issuance Philip Teuchner/Nikolaus Poehlmann, Investor Relations June 2018
Slide 2: Agenda
Agenda 1 Deutsche Bank – Focus & Growth 2 Deutsche Bank Covered Bond strategy 3 Appendix Deutsche Bank 2 Treasury Strategy on DB Group‘s Covered Bond Platforms June 2018
Slide 3: DB Group: A materially safer and more secure institution
DB Group: A materially safer and more secure institution In EUR bn, unless stated otherwise 2007 1Q 2018 Tier 1 capital 28 56 CET 1 capital ratio 8.6%(1) 13.4% Total assets (IFRS) 2,020 1,478 Most stable funding(2) 30% 73% (% of funded balance sheet) Liquidity reserves 65 279 Level 3 assets 88 22 (1
Slide 4: DB Group: Shifting towards a more stable revenue base
DB Group: Shifting towards a more stable revenue base Our strategic priorities 1 Delivering on PCB and DWS to execute on communicated strategies PCB and DWS 2 Reshaping Corporate & Investment Bank to focus on core strengths CIB 3 Reducing cost Cut costs through a series of tactical and strategic mea
Slide 5: PCB: Delivering in the Private & Commercial Bank
1 PCB: Delivering in the Private & Commercial Bank Targeted Key achievements Ongoing initiatives synergies Aspiration Private — Sales channel optimisation Clients and product consolidation — Increase cross-sell and — Legal entity merger and regulatory grow volumes in core 2022 synergy Commercial wai
Slide 6: DWS: Delivering in DWS
1 DWS: Delivering in DWS Well diversified assets Strong investment performance DWS medium-term financial targets(3) 2017 AuM: € 700 bn % of DWS funds outperforming 2017 Medium-term targets benchmarks(2) Cash 8% 3% to 5% Active multi-asset 8% 2.3% 78% Active SQI (1) 9% 74% 68% Net flows(3) Alternativ
Slide 7: CIB: Reallocating leverage to higher return areas
2 CIB: Reallocating leverage to higher return areas In EUR bn, as of 31 March 2018, unless otherwise stated Corporate & Investment Bank CRD4 leverage exposure 1,049 Pending settlements 52 Revenue/ Business Resource Liquidity Reserve 243 Leverage allocation (2017 in bps) intent Businesses — GTB: Cash
Slide 8: CIB: A resilient franchise
2 CIB: A resilient franchise Global Transaction Banking FIC Sales & Trading 7.7 4.4 6.6 Rev. Share 3.9 Rev. Share Trend Trend Rev pool Rev pool Trend Trend 2014-2016 Avg. 2017 DB 2019 rev. 2014-2016 Avg. 2017 DB 2019 rev. expect vs 2017 expect vs 2017 — Build on strengths and invest in capabilities
Slide 9: DB Group: Reducing costs
3 DB Group: Reducing costs In EUR bn, unless stated otherwise Adjusted costs(1) (0.8) 24.7 (0.9) 23.9 (1.0) 23.0 22.0 2016 2017 2018 target 2019 target (1) Adj. costs are calculated by deducting from noninterest expenses under IFRS (i) impairment of goodwill and other intangible assets, (ii) litigat
Slide 10: DB Group: Cost reduction supported by FTE adjustments
3 DB Group: Cost reduction supported by FTE adjustments Full-time equivalent (FTE) in thousands 97.1 Disposals CIB ~1k reductions PCB already completed Infra- <93 structure Disposals CIB PCB Infra- <90 structure 31 Mar 2018 April-Dec 2018 2018 plan 2019 reductions 2019 plan Deutsche Bank 10 Treasury
Slide 11: DB Group: Return on Tangible Equity trajectory
4 DB Group: Return on Tangible Equity trajectory Post-tax RoTE, in % 93% <70% ~10% >4% 2.9%(1) 2017 adj. Costs Revenues Other(2) 2019 target Costs Revenues Other(2) 2021 RoTE aspiration Note: Totals may not sum due to rounding (1) Reported ROTE of (1.4)% adjusted to exclude EUR (513)m of DVA and mov
Slide 12: Agenda
Agenda 1 Deutsche Bank – Focus & Growth 2 Deutsche Bank Covered Bond strategy 3 Appendix Deutsche Bank 12 Treasury Strategy on DB Group‘s Covered Bond Platforms June 2018
Slide 13: Deutsche Bank Covered Bond strategy
Deutsche Bank Covered Bond strategy Overview of DB Group’s covered bond platforms Key Metrics of DB Group’s cover pools Update on issuance strategy for covered bonds Deutsche Bank 13 Treasury Strategy on DB Group‘s Covered Bond Platforms June 2018
Slide 14: Overview of DB Group's Covered Bond Platforms
Overview of DB Group’s Covered Bond Platforms Active platforms Other platforms with active collateral management DB Privat- und DB Mortgage Firmenkundenbank AG DB SAE Cédulas DB SpA OBG Pfandbrief (former Postbank AG) covered bond programs No future issuance out of DB >88% prime residential Strong c
Slide 15: DB Residential Mortgage Pfandbrief
DB Residential Mortgage Pfandbrief Cover Pool – Key facts Cover Pool break down as of 31 Mar 2018(2) Maturity Profile Strong focus on residential mortgage loans > 88%; among the top group In EUR bn of German peers 4.50 High quality mortgage book in cover pool (one of the lowest Moody‘s 4.00 Mort
Slide 16: DB SAE Cédulas
DB SAE Cédulas Cover Pool – Key facts Cover Pool break down as of 31 Mar 2018(2) Mortgage Loans – Maturity Profile Size by Nominal Value Strong focus on residential mortgage loans > 95% High quality mortgage book in cover pool (lowest collateral scores at In EUR bn 43% 6.7% and third lowest cove
Slide 17: DB SpA OBG
DB SpA OBG Cover Pool – Key facts Cover Pool break down as of 31 Mar 2018 Currently retained issuances only: Maturity Profile In EUR bn ISIN Rating Issue Date Maturity Notional Amount Currency IT0005115024 Aa2 29-May-15 28-Jul-22 3,000 mn EUR 4.0 OBGs Cover Assets IT0005115123 Aa2 29-May-15 28-Jul
Slide 18: DB Privat-und Firmenkundenbank AG Covered Bonds (1/2)
DB Privat-und Firmenkundenbank AG Covered Bonds (1/2) Cover Pool – Key facts Cover Pool “C” break down as of 31 Mar 2018(2) No future issuances out of new DB Privat- und Firmenkundenbank AG Maturity Profile 5 cover pools: In EUR bn Cover Pools Issuer Classification Status Covered Bonds Cover Ass
Slide 19: DB Privat- und Firmenkundenbank AG Covered Bonds (2/2)
DB Privat- und Firmenkundenbank AG Covered Bonds (2/2) Mortgage Cover Pool “D” (PfandBG) – Key figures(1) Cover Pool “D” break down as of 31 Mar 2018(1) Focus on residential mortgage loans = 100% Mortgage Loans – Size by Granular mortgage loan portfolio: 97.8% < EUR 0.3mn Maturity Profile Nomina
Slide 20: DB's issuance strategy
DB’s issuance strategy Frequent issuer in covered bond market via active Deutsche Bank platforms Deutsche Bank AG’s covered bond platform intended to be prime refinancing instrument for Group wide mortgages Maintain European platforms to benefit from country-specific covered bond frameworks Format:
Slide 21: Agenda
Agenda 1 Deutsche Bank – Focus & Growth 2 Deutsche Bank Covered Bond strategy 3 Appendix Deutsche Bank 21 Treasury Strategy on DB Group‘s Covered Bond Platforms June 2018
Slide 22: External funding profile
External funding profile As of 31 March 2018, € bn Financing Equity, Secured funding Vehicles 0%, 6%, € 63bn(1) and shorts, € 2bn 18%, € 176bn(4) — Total funding sources(5) decreased by € 12bn to € 73% from 1,002bn over the quarter Unsecured Capital most stable wholesale, funding — The decrease was
Slide 23: 2018 funding plan and contractual maturities
2018 funding plan and contractual maturities € bn Funding Plan 2018 Maturity profile Covered Bonds(1) Senior Structured / Preferred(1) Senior Plain Vanilla(2) Capital instruments(2) Contractual maturities(3) 25-30 2-3 23 24 21 21 2 12-13 4 10-12 17 4 17 3 3 4 11 5 11 1 4 1 3 15 14 4 12-13 7 8 7 6 1-
Slide 24: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) 2019 Transitional TLAC requirements(1) and availability as of Q1 2018 € 124bn Plain-vanilla 62bn senior debt(2) € 85bn TLAC € 73bn adjust- G-SIB buffer 0.6bn 2.0% ments(3) Capital Conservation buffer 2.5% 6.0% 15bn AT1/T2(4) DB has TLAC of 35% 8.0% 20.5% (of of R
Slide 25: Current Ratings
Current Ratings Covered Bonds (DB Pfandbrief/DB SAE Aaa/Aa1 - - - Cédulas) Counterparty obligations ICR(2): (e.g. Deposits / Structured A3(cr)(1) A-(3) A(high) Notes / Derivatives / Swaps) BBB+ Preferred 4) A3 BBB+ A- - Long- term Senior Non- unse- Preferred Baa2 BBB- BBB+ A (low) cured Short-term P
Slide 26: Group financial summary
Group financial summary € bn, unless stated otherwise Q1 2018 vs. Q1 2018 vs. Q1 2018 Q1 2017 Q4 2017 Q1 2017 Q4 2017 Net revenues 7.0 7.3 (5)% 5.7 22% Provision for credit losses (0.1) (0.1) (34)% (0.1) (32)% Noninterest expenses (6.5) (6.3) 2% (7.0) (8)% Profit & Loss of which : Adjusted costs (6.
Slide 27: Litigation update
Litigation update € bn, unless stated otherwise Litigation provisions(1) Contingent liabilities(1) 2.0 1.9 2.7 2.5 31 Dec 2017 31 Mar 2018 31 Dec 2017 31 Mar 2018 ― Decrease due to settlement payments for major cases as well ― Includes possible obligations where an estimate can be made as releases f
Slide 28: Net Interest Income sensitivity
Net Interest Income sensitivity Hypothetical +100bps parallel shift impact by business line and major currency, € bn First year Second year 1.7 1.4 > 3M > 3M 0.3 0.6 0.9 EUR 0.7 0.7 0.8 ≤ 3M 1.1 ≤ 3M 1.0 0.2 USD 0.2 > 3M ≤ 3M > 3M ≤ 3M 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 PCB CIB Group PCB CIB Group Tota
Slide 29: Market risk at historically low levels
Market risk at historically low levels In € m, unless stated otherwise Average Value-at-Risk (VaR)(1) 122 127 96 86 72 57 54 52 43 32 30 27 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 Q1 2018 VaR versus peers(2) 84 76 49 46 33 28 27 25 18 15 (1) VaR converted to 1 day, 99% confide
Slide 30: Best-in-class credit risk
Best-in-class credit risk Loan loss provisions as a % of gross loans, in bps as of 31 March 2018 109 50 36 32 29 17 9 7 7 3 Net credit loss provisions versus peers, in bps DB DB average 2007-17 574 US peers US peer average 2017 Peak Avg. DB 19 13 96 39 4.74x US 68 574 179 peers 96 2007 2008 2009 201
Slide 31: 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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