Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (July 2024)
38 slides from Deutsche Bank's debt investor presentation, Jul 25, 2024
Slide 1: Q2 2024 Fixed Income Investor Conference Call
Deutsche Bank Investor Relations Q2 2024 Fixed Income Investor Conference Call July 25, 2024
Slide 2: Robust underlying profit driven by disciplined delivery
Robust underlying profit driven by disciplined delivery In € bn, unless stated otherwise Pre-provision profit1 Revenues Costs Year-on-year By division3 Adjusted costs +8% +17% Group 15.1 +2% 15.4 5.7% (2)% 4.7 +3% 15.4 CAGR, Q2 2024 LTM vs. FY 20214 69% 15.0 Cost/income ratio 10.3 10.1 ex-Postbank t
Slide 3: Strengthening franchise underpins revenue momentum
Strengthening franchise underpins revenue momentum H1 2024 Corporate Bank Investment Bank 16% increase year on year in incremental deals won O&A market share momentum maintained; H1 share with multinational clients >70bps higher vs. FY 2023, ranked 7th globally1 Strong momentum in commissions
Slide 4: 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 5.7% revenue CAGR1 in Q2 2024 LTM vs. € 1.5bn delivered or expected savings from F
Slide 5: 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 Q2 2024 provisions slightly higher sequentially due to higher Stage 1+2 charges resulting from net effect of 488 overlays and models enhancements, part
Slide 6: Steady deposit growth over last four quarters
Steady deposit growth over last four quarters In € bn, unless stated otherwise Loan development1,2 Key highlights QoQ YoY 482 485 479 480 482 0% (1)% Loans remained stable during the quarter adjusted for FX: Investment Bank 103 103 101 103 106 2% 2% Good momentum in FIC Financing Stable loans
Slide 7: Net interest income expected to outperform prior guidance
Net interest income expected to outperform prior guidance In € bn, unless stated otherwise Group development Key banking book segment1 development 1.5% 1.4% 1.3% 1.3% 1.2% 4.2% 3.9% 4.1% 4.2% 4.1% Corporate Bank 3.6 0.3 3.3 3.2 3.1 3.0 1.3 1.2 1.3 1.3 1.3 0.1 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
Slide 8: Sound liquidity and funding base
Sound liquidity and funding base In € bn, unless stated otherwise Liquidity coverage ratio (LCR)1 Key highlights 3M daily avg. High-quality liquid assets (HQLA) LCR 134% 136% 131% 136% 131% Daily average LCR at 131% in line with targeted level LCR 137% 132% 140% 136% 136% ~130% Spot LCR stable a
Slide 9: CET1 ratio remains stable
CET1 ratio remains stable As of June 30, 2024, period end CET1 ratio, movements in basis points (bps) Key highlights 6 13.5% CET1 ratio up slightly compared to Q1 2024: 4 6bps from CET1 capital reflecting lower regulatory 13.4% adjustments with strong Q2 2024 earnings were offset by (4) Postbank
Slide 10: Capital ratios well above regulatory requirements
Capital ratios well above regulatory requirements As of June 30, 2024, in % of RWA, unless stated otherwise Key highlights 18.6 T2 2.4 279bps 15.8 Buffer to CET1 requirement of 231bps (equivalent AT1 2.8 2.7 T2 requirement4 to € 8bn), broadly unchanged: 6bps increase in the CET1 ratio 231bps 2.0
Slide 11: Leverage ratio increase led by AT1 issuance
Leverage ratio increase led by AT1 issuance As of June 30, 2024, movement in bps, unless stated otherwise Key highlights 14 4.6% 4.5% 1 (2) 3.85% 0.75% G-SIB 0.10% Pillar 2 requirement Pillar 1 Leverage ratio up by 13bps compared to Q1 2024: 3.00% requirement 14bps Tier 1 capital change, princip
Slide 12: Significant buffer over MREL/TLAC requirements
Significant buffer over MREL/TLAC requirements As of June 30, 2024, loss-absorbing capacity, in € bn unless stated otherwise Key highlights 127 Senior preferred1 14 17 Surplus 25 28 above Q2 2024 loss-absorbing capacity significantly Senior requirements above all regulatory requirements, with MREL
Slide 13: Issuance plan well advanced
Issuance plan well advanced In € bn, unless stated otherwise Key highlights Covered bonds Senior preferred2 Senior non-preferred AT1/T2 24 4 17 DB’s credit spreads continued to develop 17 16 13-18 1 constructively throughout Q2, leading to a YTD 7 1 1 4 3 13 tightening of senior non-preferred spre
Slide 14: Summary and outlook
Summary and outlook Strong franchise momentum, reflecting investments, with businesses positioned for further growth Reconfirm guidance for quarterly forward run-rate of adjusted costs for the year at around € 5bn Full-year guidance for provisions for credit losses revised to slightly above 30 basis
Slide 15: Appendix
Appendix Deutsche Bank. Investor Relations Q2 2024 Fixed Income Conference Call, July 25, 2024 14
Slide 16: Current ratings
Current ratings As of July 24, 2024 Moody‘s Investors Morningstar Services S&P Global Ratings Fitch Ratings DBRS Counterparty obligations (e.g. deposits / structured notes / derivatives / swaps / A1 A1 A AA (low) trade finance obligations) Long-term Preferred2 A1 A A A senior unsecured Non-preferred
Slide 17: Q2 2024 highlights
Q2 2024 highlights In € bn, unless stated otherwise Financial results Divisional revenues Key highlights Δ vs. Δ vs. Δ vs. Q2 2024 Q2 2023 Q1 2024 +2% +2% Q2 2023 Statement of income 7.6 Revenues 7.6 2% (2)% 7.4 Revenues ex-specific items1 7.6 2% (2)% Provision for credit losses 0.5 19% 8% Revenue
Slide 18: Capital markets issuance outstanding
Capital markets issuance outstanding As of June 30, 2024, in € bn By product1 By currency1 Other Capital GBP Instruments 7 (AT1/T2) 4 23 Senior 52 non-preferred Covered bonds 15 118 118 64 EUR USD 43 13 Senior structured 15 Senior preferred Notes: for footnotes refer to slides 35 and 36 Deutsche Ban
Slide 19: Conservatively managed balance sheet
Conservatively managed balance sheet As of June 30, 2024, net1 in € bn High-quality loan portfolio Assets Liabilities & Equity Stable funding mix 1,053 1,053 Investment grade Trading and Weighted-average life 71% Corporate Bank 160 7y in long-term debt HQLA4 221 related liabilities5 exposure2 portfo
Slide 20: Net interest income (NII) sensitivity
Net interest income (NII) sensitivity Hypothetical +/-25bps shift in yield curve, in € m Net interest income (NII) sensitivity1 +25bps shift in yield curve -25bps shift in yield curve ~140 ~70 ~25 ~(35) ~(75) ~(145) 2025 2026 2027 Breakdown of sensitivity by currency for +25bps shift in yield curve
Slide 21: Stable and well diversified deposit portfolio
Stable and well diversified deposit portfolio € 641bn deposit base as of June 30, 2024 Investment Bank & Treasury Term deposits Other APAC / MEA Americas Institutional 4% Term deposits CB 4% 7% 10% Client Services 12% Personal Banking 14% 30% Private Bank Europe excl. Germany 13% 39% Retail Non-oper
Slide 22: Loan book composition
Loan book composition Q2 2024, IFRS loans: € 482bn1 Key highlights Other2 Other IB3 0% Leveraged Debt Capital Markets 11% 54% of loan portfolio in Private Bank, consisting of retail German Mortgages and 1% Home Loans & Savings mortgages mainly in Personal Banking (Germany) and Asset Backed Securit
Slide 23: Commercial Real Estate (CRE) 1 / 2
Commercial Real Estate (CRE) 1 / 2 CRE non-recourse portfolio: € 38bn € 31bn in scope of severe stress test2 Non-recourse € 38bn – 8% of total loans1 By region By region APAC APAC € 7bn deemed as lower risk, includes data centers EU and municipal social housing 7% 16% 1% CRE higher risk loans
Slide 24: Commercial Real Estate (CRE) 2 / 2
Commercial Real Estate (CRE) 2 / 2 US CRE in scope of severe stress test1: € 16bn US CRE loan risk management US CRE CLPs By type Office: € 7bn Modified loans, in € bn CLPs per quarter, in € m 12 130 Other 123 121 Other New York 17% 27% Office Miami 29% Philadelphia 3% 3% 74 45% 5% 5.3% 66 Boston Re
Slide 25: Leverage exposure and risk-weighted assets
Leverage exposure and risk-weighted assets CRD4, in € bn, period end Leverage exposure Risk-weighted assets 356 356 59 Operational risk RWA 59 1,254 1,262 Market risk RWA Trading assets 133 126 29 22 Credit valuation 4 128 17 adjustments Derivatives1 136 Lending 468 469 149 Lending commitments2 Cred
Slide 26: Debt securities hold-to-collect portfolio
Debt securities hold-to-collect portfolio As of June 30, 2024, € 21bn Portfolio breakdown Maturity breakdown, in € bn Fair value GAP (FVG), in € bn 9 5% 21 1% 37% 19 27% 6 (2) 4 2 30% up to 1 year 1 year to 5 years to more than Carrying Value FVG Fair Value 5 years 10 years 10 years Other foreign go
Slide 27: Derivatives bridge
Derivatives bridge Q2 2024, IFRS derivative trading assets and the impact of netting and collateral, in € bn Key highlights 237 Gross notional derivative exposure amounts are not exchanged and relate only to the reference amount of all contracts; it is no reflection of the credit or market risk ru
Slide 28: Level 3 assets and liabilities
Level 3 assets and liabilities As of June 30, 2024, in € bn Assets: € 25bn Liabilities: € 12bn Key highlights Other Other 0 Derivative Liabilities Level 3 is an indicator of valuation uncertainty 3 Derivative and not of asset quality Debt 8 Assets Debt Securities 4 securities 5 The Group classif
Slide 29: Group Trading Book Value-at-Risk and stressed Value-at-Risk
Group Trading Book Value-at-Risk (VaR) and stressed Value-at-Risk (sVaR) As of June 30, 2024, in € m, 99% confidence level Trading P&L1, VaR sVaR 400 160 300 174 162 172 200 120 121 100 80 0 44 34 34 -100 40 33 -200 0 -300 -400 (40) -500 (80) Q3 2023 Q4 20232 Q1 2024 Q2 2024 -600 1-d
Slide 30: Sustainability
Sustainability Q2 2024 highlights Recent achievements Sustainable Finance1 volumes Increased Sustainable Finance volumes by € 21bn to € 322bn1 (cumulative since 2020) 322 500 Involved as Senior Mandated Lead Arranger and Hedging Bank on H2 Green Steel’s € 4.2bn project financing for the world’s
Slide 31: Deutsche Bank's performance in leading ESG ratings
Deutsche Bank’s performance in leading ESG ratings As of July 10, 2024 Score range Rating Rating agency ESG rating criteria (weighting) Rating development (best to worst) score DB Corporate Governance & Corporate Financing Environmental Impact (15%) Behavior (35%) Privacy & Data Security (15%)
Slide 32: 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 Revenues excluding the business and are likely to distort an accurate assessment of the
Slide 33: Specific revenue items and adjusted costs – Q2 2024
Specific revenue items and adjusted costs – Q2 2024 In € m Q2 2024 Q2 2023 Q1 2024 CB IB PB AM C&O Group CB IB PB AM C&O Group CB IB PB AM C&O Group Revenues 1,922 2,599 2,332 663 73 7,589 1,943 2,361 2,400 620 85 7,409 1,878 3,047 2,378 617 (140) 7,779 revenue items Specific DVA - IB Other / Legacy
Slide 34: Pre-provision profit, CAGR and operating leverage
Pre-provision profit, CAGR and operating leverage In € m, unless stated otherwise CAGR2 FY 2021 – H1 2024 vs FY 2021 Q2 2024 LTM H1 2023 H1 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2024 LTM H1 2023 Net revenues Corporate Bank 5,153 1,889 1,911 1,878 1,922 7,601 16.8% 3,916 3,800 (3)% Investment Bank
Slide 35: Pre-provision profit, post-tax RoTE, CIR ex-Postbank litigation provision
Pre-provision profit, post-tax RoTE, CIR and operating leverage ex-Postbank takeover litigation provision In € m, unless stated otherwise Q2 2023 Q2 2024 H1 2023 H1 2024 Pre-provision profit 1,806 887 4,030 3,362 Provision for credit losses (401) (476) (772) (915) Profit (loss) before tax 1,405 411
Slide 36: Footnotes 1/2
Footnotes 1/2 Slide 1 – Robust underlying profit driven by disciplined delivery Slide 8 – CET1 ratio remains stable 1. Defined on slide 24 and detailed on slide 26 1. Including credit valuation adjustment (CVA) risk-weighted assets 2. Adjusted for the Postbank takeover related litigation booking of
Slide 37: Footnotes 2/2
Footnotes 2/2 Slide 18 – Conservatively managed balance sheet Slide 24 – Leverage exposure and risk-weighted assets 1. Net balance sheet of € 1,053bn is defined as IFRS balance sheet (€ 1,351bn) adjusted to reflect the funding 1. Excludes any derivatives-related market risk RWA, which have been full
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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