Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (July 2022)
38 slides from Deutsche Bank's debt investor presentation, Jul 29, 2022
Slide 1: Q2 2022 Fixed Income Investor Conference Call
Deutsche Bank Q2 2022 Fixed Income Investor Conference Call July 29, 2022
Slide 2: Solid results despite challenging environment
Solid results despite challenging environment H1 2022 Performance Profitability Resilience Group revenues of € 14.0bn, Significant improvement in Strong risk management reflecting average growth of profitability: € 2.4bn post-tax through unprecedented 9% across four core businesses profit, +31% YoY
Slide 3: Resilient loan book with strong risk management
Resilient loan book with strong risk management Credit loss provision history Loan book composition by division3 x In bps of average loans Provision for credit losses Other Investment x 1% Bank 33 13 13 17 41 12 22 20% Private 53% 1.8 1.4 Bank 26% 0.5 0.5 0.7 0.5 0.5 Corporate Bank 2016 2017 2018 20
Slide 4: All core businesses demonstrating clear momentum
All core businesses demonstrating clear momentum H1 20221 Continued improvement in Corporate Bank operating leverage from higher rates, business volumes and +18% 10% 66% growth in fees, as well as a lower Revenue RoTE CIR cost base growth Continued FIC franchise Investment Bank development, with inc
Slide 5: Significant improvement in pre-provision profit
Significant improvement in pre-provision profit Core Bank1, in € bn, unless stated otherwise RoTE (10.3)% 4.1% 9.3% 10.1% 4.3 Corporate Bank Investment Bank 1.0 Private Bank 3.6 Asset Management 0.4 C&O 2.9 0.5 2.7 2.5 2.2 1.0 0.1 1.1 0.6 0.5 0.0 0.2 0.2 0.3 0.5 0.5 (0.3) (0.3) (1.0) H1 20192 H1 202
Slide 6: Ongoing progress, despite pressures
Ongoing progress, despite pressures In %, unless stated otherwise RoTE and CIR development Ratio impacts in H1 2022 RoTE RoTE CIR 8.0 6.5 Additional bank levies (0.5) 1.3 Valuation & timing differences (V&T) (0.6) 1.0 (0.5) H1 2020 H1 2021 H1 2022 CIR 87.1 Regulatory enforcement / litigation (0.2) 0
Slide 7: Resilient loan & deposit development
Resilient loan & deposit development In € bn Loan development Comments QoQ YoY — Lending growth of € 8bn compared to Q1 2022 456 476 481 493 3% 11% 445 adjusted for FX and hedge accounting effects: 7 6 4 1 6% 7 93 94 99 33% — Stable growth of € 4bn in Private Bank driven by 75 80 mortgages in Privat
Slide 8: Net interest margin has begun to increase
Net interest margin has begun to increase Evolution of Group NIM and average interest earning assets Comments Average interest earning assets, in € bn1 Net interest margin, in %2 — NIM increase driven predominantly by USD interest rate rises in H1 2022 as 1.37% 1.39% well as lower average cash balan
Slide 9: NII sensitivity shows incremental revenue upside
NII sensitivity shows incremental revenue upside Hypothetical +/-25bps shift in yield curve, in € m Net interest income (NII) sensitivity1,2 Comments +25bps shift in yield curve -25bps shift in yield curve ~330 ~180 ~210 ~90 — Revenue change grows larger over time ~(50) due to cumulative effect of h
Slide 10: Strong liquidity position in line with targets
Strong liquidity position in line with targets Liquidity coverage ratio1 Comments High-quality liquid assets, in € bn Surplus above requirements 143% 137% 133% 135% 133% ~130% € 67bn € 59bn € 52bn € 55bn € 51bn ~€ 50bn — Liquidity remains robust and aligned with targeted levels, despite recent marke
Slide 11: CET1 ratio increase driven by earnings
CET1 ratio increase driven by earnings Period end CET1 ratio, movements in basis points Comments 13 13.0% 12.8% 4 (3) — CET1 ratio up 14bps compared to Q1 2022: — (3)bps from FX translation effects — 13bps from capital changes reflecting strong Q2 2022 earnings net of deductions for dividends and AT
Slide 12: Capital ratios well above regulatory requirements
Capital ratios well above regulatory requirements In %, unless stated otherwise, as of June 30, 2022 Comments 17.6 T2 2.7 261bps 15.0 AT1 2.0 2.6 T2 requirement4 — Buffer to CET1 capital ratio requirement 253bps increased by 14bps to 253bps over the quarter, 2.0 AT1 requirement3 reflecting higher CE
Slide 13: Leverage ratio unchanged on a like-for-like basis
Leverage ratio unchanged on a like-for-like basis In € bn, except movements (in bps), period end 4.6% Comments 10 4.3% 1 (3) (2) 4.3% Q1 2022 FX Effect Leverage Capital Q2 2022 — On April 1, 2022, the exclusion of certain central exposure change bank balances from the leverage exposure was change di
Slide 14: Significant buffer over MREL/TLAC requirements
Significant buffer over MREL/TLAC requirements Loss-absorbing capacity, in € bn, as of June 30, 2022 Comments Surplus above requirement 124 Senior 10 preferred1 15 — Q2 2022 loss-absorbing capacity 23 significantly above all regulatory Senior 28 requirements, with MREL remaining non- 48 most binding
Slide 15: Substantial portion of issuance plan already achieved in H1
Substantial portion of issuance plan already achieved in H1 In € bn, unless stated otherwise Covered bonds Senior structured/preferred Senior non-preferred AT1/T2 26 24 1 19 2 20 5 1 15-20 16 7 14 14 4 2-3 2 7 12 12 2 1 1-3 12 1 4 3 3 1 2 3 19 9-10 12 12 10 6 3 7 7 8 7 6 3 3-4 4 3 3 3 4 2 2 1 YTD FY
Slide 16: Outlook
Outlook Managing through continued uncertain macro-economic and financial market environment Strong Core Bank operating performance together with benefits from higher rate environment Continue to focus on delivery of 2022 targets, despite updated CIR guidance Focus will remain on managing a resilien
Slide 17: Appendix
Appendix Deutsche Bank Q2 2022 Fixed Income Investor Call Investor Relations July 29, 2022
Slide 18: Q2 2022 Group financial highlights
Q2 2022 Group financial highlights In € m, unless stated otherwise Change in % Change in % Q2 2022 vs. Q2 2021 vs. Q1 2022 Revenues 6,650 7 (9) Revenues Revenues ex specific items1 6,639 7 (9) Noninterest expenses 4,870 (3) (9) Costs Adjusted costs 4,767 1 (11) Profit (loss) before tax 1,547 33 (7)
Slide 19: Conservatively managed balance sheet
Conservatively managed balance sheet In € bn, net1, as of June 30, 2022 Comments Assets Liabilities & equity 1,038 1,038 Trading and Liquidity 164 related liabilities3 reserves2 244 43 Other liabilities5 — Resilient balance sheet — Liquidity reserves account for 24% of net Trading and balance sheet
Slide 20: Current ratings
Current ratings As of July 28, 2022 Moody‘s Investors S&P Global Fitch Ratings DBRS Services Ratings Counterparty obligations (e.g. deposits / structured notes / A2 A-1 A- A (high) derivatives / swaps / trade finance obligations) Senior Preferred2 A2 A- A- A (low) Long- term unse- cured Non-preferre
Slide 21: Additional Tier 1 instruments outstanding
Additional Tier 1 instruments outstanding Original Current Nominal Next call Subsequent Issuer ISIN issuance coupon outstanding date call period date Deutsche Bank Frankfurt US251525AN16 7.500% $ 1,500m Nov 21, 2014 Apr 30, 2025 Every 5 years Deutsche Bank Frankfurt XS1071551474 4.789% $ 1,250m May
Slide 22: Additional funding disclosure
Additional funding disclosure Q2 2022, capital markets issuance outstanding, in € bn By product By currency Senior Senior Capital instruments EUR USD GBP Other non-preferred structured (T1/T2) Senior Covered preferred bonds 7 20 4 14 54 113 113 56 46 17 7 Deutsche Bank Q2 2022 Fixed Income Investor
Slide 23: Loan book composition
Loan book composition Q2 2022, IFRS loans: € 493bn Comments Other1 — Well diversified loan portfolio Other IB2 Leveraged Debt Capital Markets 1% — YTD increase from FX impact on loan book is 8% 1% € 11bn Asset Backed Securities German Mortgages 7% — 53% of loan portfolio in Private Bank, mainly 31%
Slide 24: Provision for credit losses
Provision for credit losses In € m Comments Stage 1 + 2 Stage 3 761 — Quarter-on-quarter reduction driven by lower level of new provisions on Russian portfolio and the benefits of a portfolio sale in Private 252 Bank 506 — Second order effects from Ukraine war, supply chain challenges and rising inf
Slide 25: Value-at-Risk / stressed Value-at-Risk (VaR / sVaR)
Value-at-Risk / stressed Value-at-Risk (VaR / sVaR) In € m, unless stated otherwise Historical simulation VaR, DB Group Trading book, 99%, 1 day Quarterly average 41 33 34 30 47 80 60 40 20 0 Q2 2021 Q3 2021 Q4 2021 Q1 2021 Q2 2022 Historical simulation sVaR, DB Group Regulatory scope, 99%
Slide 26: Deposit repricing in Q2 2022
Deposit repricing in Q2 2022 In € bn, unless otherwise stated Quarterly charging revenues, in € m Comments QoQ 139 153 +10% 126 22 — Further increase in quarterly revenues by 10% 108 20 +15% 94 17 driven by Corporate Bank and Private Bank 12 8 — Q2 2022 annualized run-rate of € 612m, up 120 131 +9%
Slide 27: Evolution of market implied interest rates
Evolution of market implied interest rates In % ECB deposit facility rate Federal Reserve interest on reserve balances 4.0 4.0 3.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 -1.0 -1.0 01/22 07/22 01/23 07/23 01/24 07/24 01/25 01/22 07/22 01/23 07/23 01/24 07/24 01/25 EUR 10-year swap rate USD 10-year swap rate 3.5
Slide 28: TLTRO take-up and maturities
TLTRO take-up and maturities In € bn TLTRO outstanding at end of period TLTRO contractual maturity in period 0 0 0 0 22 4 4 3 1 10 45 45 45 45 23 19 15 12 10 0 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Deutsche Bank Q2 2022 Fixed Income Investor Call 27 Investor
Slide 29: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, in € bn, period end Leverage exposure Risk weighted assets 370 370 59 Operational risk RWA 59 1,247 1,277 103 Market risk RWA Trading assets 111 36 28 Credit valuation 5 Derivatives1 143 148 23 adjustments Lending 488 503 145 250 Lending Credit risk R
Slide 30: Litigation update
Litigation update In € bn, period end Litigation provisions1 Comments 1.0 1.1 1.1 1.2 0.9 ― Provisions increased modestly by € 0.1bn quarter Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 on quarter ― Contingent liabilities increased modestly by € 0.1bn quarter on quarter; contingent liabilities include po
Slide 31: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Q2 2022 highlights Our key focus areas Recent achievements – Increase of cumulative volumes in sustainable financing and investment to € 191bn1, with growth in all businesses Sustainable – Deal highlights: 1st green bond issuance by Austrian government due in May 2049
Slide 32: Sustainability strategy well on track
Sustainability strategy well on track In € bn, cumulative since 2020 Sustainable Finance1 volumes versus target Reported volumes by business and product type +9% +8% +5% >200 106 191 177 28 157 52 10 78 32 46 42 32 YE 2020 YE 2021 Q1 2022 H1 2022 YE 2022 Investment Bank Corporate Bank Private Bank F
Slide 33: Deutsche Bank's performance in leading ESG ratings
Deutsche Bank’s performance in leading ESG ratings Overview of core ESG ratings as of June 30, 2022 Score range Rating Rating agency ESG rating criteria (weighting) (best to Rating development score DB worst) − Environment (15%) − Social (50%) AAA to CCC A Stable at A − Governance (35) − Corporate G
Slide 34: Simplified legal entity structure
Simplified legal entity structure Entities without Branches Subsidiaries Deutsche Bank AG Issuing direct issuance Germany entities activities Americas EMEA APAC DWS DB AG DB AG DB AG DB AG DB AG New London Singapore Hong Kong Sydney York Branch Branch Branch Branch Branch USA Great Britain Singapore
Slide 35: Definition of adjustments
Definition of adjustments Revenues excluding specific items are calculated by adjusting net revenues under IFRS for specific revenue items which Revenues generally fall outside the usual nature or scope of the business and are likely to distort an accurate assessment of the excluding specific divisi
Slide 36: Specific revenue items and adjusted costs – Q2 2022
Specific revenue items and adjusted costs – Q2 2022 In € m Q2 2022 Q2 2021 Q1 2022 Core Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Bank Revenues 1,551 2,646 2,160 656 (370) 6,643 7 6,650 1,230 2,394 2,018 626 (6) 6,262 (24) 6,238 1,461 3,323 2,2
Slide 37: Specific revenue items and adjusted costs – H1 2022
Specific revenue items and adjusted costs – H1 2022 In € m H1 2022 H1 2021 Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Revenues 3,012 5,969 4,381 1,338 (723) 13,976 1 13,977 2,543 5,491 4,196 1,263 (80) 13,413 57 13,471 revenue items DVA - IB Other / CRU - 4 - - - 4 (5) (
Slide 38: 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
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