Slide 1: Q3 2024 results
Deutsche Bank Investor Relations Q3 2024 results October 23, 2024
Slide 2: Strong 9M performance provides confidence in full-year ambitions
Strong 9M performance provides confidence in full-year ambitions Franchise momentum continues across all businesses, with revenue CAGR within target range and € 22.9bn € 30bn full-year objective in sight 9M Revenues Third sequential quarter of adjusted costs at € 5.0bn, underpinning forward traj
Slide 3: Disciplined execution driving continuously improving performance
Disciplined execution driving continuously improving performance In € bn, unless stated otherwise Pre-provision profit1 Revenues Costs Year-on-year By division3 Adjusted costs +5% +17% 22.2 +3% 22.9 (1)% Group 5.6% 69% CAGR, Q3 2024 LTM vs. FY 20214 7.0 22.1 +3% 22.8 15.3 15.1 Cost/income ratio 6.0
Slide 4: Ongoing momentum across businesses through focused growth strategies
Ongoing momentum across businesses through focused growth strategies 9M 2024, unless stated otherwise Corporate Bank Investment Bank 18% increase year on year in incremental deals won1 Growth in activity with priority clients – activity with top with multinational corporate clients ~100 institut
Slide 5: Continued execution across strategic pillars
Continued execution across strategic pillars Revenue growth Efficiency measures Capital efficiency 5.5-6.5% € 2.5bn € 25-30bn 2 Revenue CAGR 2021-2025 targeted Operational efficiencies targeted RWA reductions targeted 5.6% revenue CAGR1 in Q3 2024 LTM vs. FY € 1.7bn delivered or expected savings Rea
Slide 6: Global Hausbank strategy continues to deliver growth and profitability
Global Hausbank strategy continues to deliver growth and profitability on the path to long-term ambitions Strong momentum across all businesses Resilient performance across divisions lays the foundation for further growth in targeted areas, to reach € 32bn revenues in 2025 Sustained operating levera
Slide 7: Group financials
Group financials Deutsche Bank Investor Relations Q3 2024 results, October 23, 2024 7
Slide 8: Key performance indicators
Key performance indicators In % Revenue CAGR2 9M 2024 LTM vs FY 2021 CIR development 75 75 Sustained revenue growth momentum with Group 73 CAGR in line with updated target of 5.5-6.5%1 14.9 5.0 5.6 Cost/income ratio (CIR) and return on tangible 1.4 equity3 (RoTE) impacted by Postbank takeover (2.6)
Slide 9: Q3 2024 highlights
Q3 2024 highlights In € bn, unless stated otherwise Financial results Divisional revenues Key highlights Q3 2024 Δ vs. Δ vs. +5% +5% Δ vs. Q3 2023 Q2 2024 Q3 2023 Statement of income 7.5 Revenues 7.5 5% (1)% 7.1 Revenues ex-specific items1 7.5 5% (2)% Provision for credit losses 0.5 102% 4% 1.8 (3)%
Slide 10: Net interest income (NII) / Net interest margin (NIM)
Net interest income (NII) / Net interest margin (NIM) In € bn, unless stated otherwise Group development Key banking book segment1 development 1.4% 1.3% 1.3% 1.2% 1.3% 3.9% 4.1% 4.2% 4.1% 3.7% Corporate Bank 3.3 3.2 3.1 3.0 3.3 1.2 1.3 1.3 1.3 1.2 0.1 0.0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2.3%
Slide 11: Adjusted costs – Q3 2024 (YoY)
Adjusted costs – Q3 2024 (YoY) In € bn, unless stated otherwise Key highlights Q3 2023 ex- bank levies 4,961 FX impact Compensation Adjusted costs increased by 2% year on year, in line with and benefits1 (6) 103 the quarterly run-rate guidance of around € 5.0bn Higher compensation and benefit co
Slide 12: Provision for credit losses
Provision for credit losses In € m, unless stated otherwise Key highlights Stage 1+2 Stage 3 In bps of average loans annualized1 30 33 20 41 37 40 41 488 494 439 476 12 30 35 Q3 2024 provision for credit losses slightly higher 372 401 sequentially due to increased Stage 3 provisions 63 245 Stage
Slide 13: Provisioning trends
Provisioning trends Provision for credit losses, in € m, unless stated otherwise Key highlights 494 40 50 Key portfolio quality indicators closely monitored and Q3 2024 107 298 broadly stable; no indication of structural deterioration in underlying asset quality Persisting specific drivers affec
Slide 14: Capital metrics
Capital metrics Movements in basis points (bps), unless stated otherwise, period end CET1 ratio Leverage ratio MREL / TLAC, in € bn Surplus above requirements 13.5% 0 44 13.8% 4.6% 2 12 4.6% (14) (14) 131 Senior 14 preferred2 21 30 Senior non- 50 Q2 2024 FX effect RWA Capital Q3 2024 Q2 2024 FX effe
Slide 15: Segment results
Segment results Deutsche Bank Investor Relations Q3 2024 results, October 23, 2024 15
Slide 16: Corporate Bank
Corporate Bank In € m, unless stated otherwise Financial results Revenue performance Key highlights Q3 2024 Δ vs. Δ vs. Δ vs. Q3 2023 Q2 2024 Q3 2023 Statement of income Revenues essentially flat year on year, as Corporate Treasury 1,841 (3)% (4)% Services Revenues 1,028 normalization of deposit m
Slide 17: Investment Bank
Investment Bank In € m, unless stated otherwise Financial results Revenue performance Key highlights Q3 2024 Δ vs. Δ vs. Δ vs. Higher revenues year on year, driven by strength Q3 2023 Q2 2024 Q3 2023 in FIC and improvement in O&A Statement of income Fixed Income & Currencies Revenues 2,523 11% (3
Slide 18: Private Bank
Private Bank In € m, unless stated otherwise Financial results Revenue and AuM performance Key highlights Q3 2024 Δ vs. Δ vs. Revenues Δ vs. Q3 2023 Q2 2024 Q3 2023 Statement of income Revenues essentially flat both sequentially and Personal Banking Revenues 2,319 (1)% (1)% year on year with highe
Slide 19: Asset Management
Asset Management In € m, unless stated otherwise Financial results Revenue and AuM performance Key highlights Δ vs. Δ vs. Revenues Δ vs. Q3 2024 Q3 2023 Q2 2024 Q3 2023 Statement of income trans. Mgmt. fees Revenues 660 11% (0)% 626 +6% Revenues ex-specific items1 660 11% (0)% Perf. & Other fees Pro
Slide 20: Corporate & Other
Corporate & Other In € m, unless stated otherwise Financial results Profit (loss) before tax Key highlights Q3 2024 Δ vs. Δ vs. Abs. Δ vs. Q3 2023 Q2 2024 Q3 2023 Statement of income Funding & liquidity (11) +48 Profit before tax of € 424m, compared to a loss Revenues 157 n.m. 114% before tax of €
Slide 21: Outlook
Outlook Revenue trajectory on track to meet € 30bn full-year target, supported by momentum in all businesses Ongoing focus on managing adjusted cost run rate down, through disciplined spend and efficiency measures Provision for credit losses of ~€ 1.8bn for the full-year, with normalization in 2025
Slide 22: Appendix
Appendix Deutsche Bank Investor Relations Q3 2024 results, October 23, 2024 22
Slide 23: 2025 financial targets and capital objectives
2025 financial targets and capital objectives Financial targets Capital objectives > 10% 5.5-6.5% < 62.5% ~ 13% 50% Post-tax RoTE Revenue CAGR Cost/income ratio CET1 ratio Total payout ratio in 2025 2021-2025 in 2025 from 2025 Well-positioned to Increased revenue Reiterate CIR target, with Aim to op
Slide 24: Committed to increasing shareholder distributions
Committed to increasing shareholder distributions Total payout1 Payout trajectory details Share buybacks Executed in FY, in € m Organic capital generation from net income and improved capital efficiency support shareholder distributions, as well as business growth +50% p.a. potential Upside 675 450
Slide 25: Sustainability
Sustainability Q3 2024 highlights Recent achievements Sustainable Finance1 volumes Increased Sustainable Finance volumes by € 30bn to € 352bn1 (cumulative since 2020), including a € 10bn one-off contribution following integration of ESG criteria in Deutsche Bank’s German pension plans, which is re
Slide 26: Definition of certain financial measures
Definition of certain financial measures Revenues excluding specific items are calculated by adjusting net revenues under IFRS for specific revenue items which generally fall outside the usual nature or scope of the Revenues excluding business and are likely to distort an accurate assessment of the
Slide 27: Specific revenue items and adjusted costs – Q3 2024
Specific revenue items and adjusted costs – Q3 2024 In € m, unless stated otherwise Q3 2024 Q3 2023 Q2 2024 CB IB PB AM C&O Group CB IB PB AM C&O Group CB IB PB AM C&O Group Revenues 1,841 2,523 2,319 660 157 7,501 1,890 2,271 2,341 594 35 7,132 1,922 2,599 2,331 663 74 7,589 Specific revenue items
Slide 28: Pre-provision profit, CAGR and operating leverage
Pre-provision profit, CAGR and operating leverage In € m, unless stated otherwise CAGR2 FY 2021 – 9M 2024 vs FY 2021 Q3 2024 LTM 9M 2023 9M 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2024 LTM 9M 2023 Net revenues Corporate Bank 5,153 1,912 1,878 1,922 1,841 7,553 14.9% 5,807 5,642 (3)% Investment Bank
Slide 29: Pre-provision profit, post-tax RoTE, CIR ex-Postbank litigation impact
Pre-provision profit, post-tax RoTE, CIR and operating leverage ex-Postbank takeover litigation provision impact In € m, unless stated otherwise Q3 2023 Q3 2024 9M 2023 9M 2024 Pre-provision profit 1,968 2,757 5,998 6,118 Provision for credit losses (245) (494) (1,017) (1,410) Profit (loss) before t
Slide 30: Indicative divisional currency mix
Indicative divisional currency mix Q3 2024 Net revenues Noninterest expenses 8% 4% 4% 9% 20% 18% 5% 18% 17% 16% 18% 0% 4% 22% 1% 25% 14% 16% 18% 25% 32% 0% 34% 15% 6% 19% 1% 19% 1% 87% 85% 66% 40% 59% 60% 55% 52% 46% 45% 11% CB IB PB AM Group CB IB PB AM Group EUR GBP USD Other1 Notes: classificatio
Slide 31: Net interest income (NII) sensitivity
Net interest income (NII) sensitivity Hypothetical +/-25bps shift in yield curve, in € m Net interest income (NII) sensitivity1 Key highlights +25bps shift in yield curve -25bps shift in yield curve ~135 ~70 ~(20) ~15 ~(75) ~(140) Low NII sensitivity reflecting dynamic hedge strategy responding to
Slide 32: Interest rate hedge
Interest rate hedge In € bn, unless stated otherwise Income from long-term hedge portfolio1 Key highlights Avg yield 10y EUR swap Locked-in Roll-over 3.0% 2.5% 2.3% 2.4% 2.5% 1.9% Hedge contribution to NII steadily increased 1.8% 1.6% since 2022 1.4% 1.2% 0.9% Long-term hedge notional of ~€ 230b
Slide 33: Loan and deposit development
Loan and deposit development In € bn, unless stated otherwise; loan-to-deposit ratio 73% Loan development1,2 Key highlights QoQ YoY Loans remained stable during the quarter adjusted for 485 479 480 482 477 (0)% (0)% FX: Continued FIC Financing growth from new client Investment Bank 103 101 103 1
Slide 34: Loan book composition
Loan book composition Q3 2024, IFRS loans: € 477bn1 Key highlights Other2 Other IB3 0% 11% Leveraged Debt Capital Markets German Mortgages and 1% Home Loans & Savings 54% of loan portfolio in Private Bank, consisting of retail Asset Backed Securities mortgages mainly in Personal Banking (Germany)
Slide 35: Provision for credit losses and Stage 3 loans
Provision for credit losses and Stage 3 loans Provision for credit losses, in € m Stage 3 at amortized cost, in € bn Private Bank Corporate Bank Investment Bank PB (ex-POCI) CB (ex-POCI) IB (ex-POCI) POCI 488 494 Group Stage 3 2.6% 2.8% 3.1% 3.1% 3.3% 439 476 loans at amortized 135 cost %2 15.7 14.8
Slide 36: Commercial Real Estate (CRE) 1 / 2
Commercial Real Estate (CRE) 1 / 2 CRE non-recourse portfolio: € 37 bn € 30bn in scope of severe stress test2 By region By region Non-recourse € 37bn – 8% of total loans1 APAC APAC EU 1% € 7bn deemed as lower risk, includes data centers and 8% 21% municipal social housing CRE higher risk loans
Slide 37: Commercial Real Estate (CRE) 2 / 2
Commercial Real Estate (CRE) 2 / 2 US CRE in scope of severe stress test1: € 15bn US CRE loan risk management US CRE loan risk management In € bn In € m By type Office: € 7bn Cumulative modified loans CLPs per quarter New York 13 130 Other 123 121 Other Office 18% 27% Miami 30% 46% Philadelphia 3% 2
Slide 38: Asset quality in Germany
Asset quality in Germany In € bn, unless stated otherwise German loan book well diversified Solid fundamentals in home market Stable baseline CLPs5 in Germany Provision for credit losses, in bps 68% (2) 2.8% +0.5 Corporate Bank ppt YTD ppt YTD Germany (baseline) Germany (reported) Investment Bank In
Slide 39: Level 3 assets and liabilities
Level 3 assets and liabilities As of September 30, 2024, in € bn Assets: € 26bn Liabilities: € 13bn Key highlights Other Other 3 0 Derivative 8 Assets Level 3 is an indicator of valuation Debt Debt Securities securities 5 5 uncertainty and not of asset quality The Group classifies financial inst
Slide 40: Leverage exposure and risk-weighted assets
Leverage exposure and risk-weighted assets CRD4, in € bn, period end Leverage exposure Risk-weighted assets 356 356 58 Operational risk RWA 58 1,262 1,284 Market risk RWA Trading assets 126 143 33 26 Credit valuation 3 Derivatives1 128 125 18 adjustments Lending 469 464 147 Lending Credit risk RWA 2
Slide 41: Litigation update
Litigation update In € bn, unless stated otherwise, period end Litigation provisions Key highlights 2.7 2.0 Litigation provisions decreased by € 0.7bn quarter on 1.6 quarter 1.3 1.3 Quarter-on-quarter decrease in provisions mainly driven by Postbank takeover litigation, where the bank reached Q3
Slide 42: Group Trading Book Value-at-Risk (VaR) and stressed VaR
Group Trading Book Value-at-Risk (VaR) and stressed Value-at-Risk (sVaR) As of September 30, 2024, in € m, 99% confidence level Trading P&L1, VaR sVaR 500 160 400 250 300 120 172 162 200 121 100 80 44 0 34 33 40 25 -100 -200 0 -300 -400 (40) -500 (80) Q4 2023 Q1 2024 Q2 20242 Q3 2024
Slide 43: Assets under management – Private Bank
Assets under management – Private Bank In € bn, unless stated otherwise AuM1,2 – by client segments and product group +10% +10% +2% +2% 578 605 612 625 567 97 102 103 103 104 114 110 114 118 120 60 64 65 65 66 Inv. Prod. 356 366 388 391 401 296 302 323 326 335 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
Slide 44: Assets under management – Asset Management
Assets under management – Asset Management In € bn, unless stated otherwise AuM development Quarterly mgmt. 27.1 Year-on-year 26.2 26.4 Quarter-on-quarter 26.2 fee margin, in bps 963 963 (1) (1) 933 18 (14) 26 105 860 18 (19) Q3 2023 Net flows FX Market Other Q3 2024 Q2 2024 Net flows FX Market Othe
Slide 45: Footnotes 1 / 2
Footnotes 1 / 2 Slide 2 – Strong 9M performance provides confidence in full-year ambitions Slide 10 – Net interest income (NII) / Net interest margin (NIM) 1. Defined on slide 26 and detailed on slide 27 1. Defined on slide 26 2. Throughout this presentation post-tax return on average tangible share
Slide 46: Footnotes 2 / 2
Footnotes 2 / 2 Slide 19 – Asset Management Slide 34 – Loan book composition 1. Detailed on slides 27-28 1. Loan amounts are gross of allowances for loans 2. Detailed on slide 44 2. Mainly includes Corporate & Other and Institutional Client Services in the Corporate Bank 3. Post-tax return on averag
Slide 47: 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