Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2014 Earnings Presentation
48 slides from Deutsche Bank's earnings presentation, Apr 29, 2014
Slide 1: Deutsche Bank 1Q2014 results
Deutsche Bank Deutsche Bank 1Q2014 results 29 April 2014
Slide 2: Key Group financial highlights
Key Group financial highlights In EUR bn, unless otherwise stated Group Core Bank(1) 1Q2014 1Q2013 1Q2014 1Q2013 Income before income taxes 1.7 2.4 2.2 2.7 Net income 1.1 1.7 n.a. n.a. Diluted EPS (in EUR) 1.03 1.71 n.a. n.a. Profitability Post-tax return on average active equity(2) 7.9% 12.3% 12.3%
Slide 3: Core bank adjusted IBIT
Core bank adjusted IBIT In EUR bn 2.8 0.3 0.1 2.6 0.5 2.2 0.0 1.7 1Q2014 NCOU Core Bank Litigation/ Investing in CVA / DVA / 1Q2014 1Q2013 Group reported IBIT impair- our platform(2) FVA(3) Core Bank Core Bank reported IBIT ments(1) adjusted IBIT adjusted IBIT 1Q2014 Group reported IBIT to Core Bank
Slide 4: Agenda: Key current themes
Agenda 1 Key current themes 1.1 Capital 1.2 Leverage 1.3 Cost 2 Group results 3 Segment results Deutsche Bank 1Q2014 results financial transparency. 3 29 April 2014
Slide 5: Capital: Common Equity Tier 1 and RWA development
Capital: Common Equity Tier 1 and RWA development CRD4, fully-loaded Common Equity Tier 1 capital RWA In EUR bn In EUR bn Normalization of risk levels and targeted growth in CB&S 9.7% 9.5% 0.2 35.3 8.3 373.3 1.1 0.4 0.2 3.9 (0.1) 11.6 (0.5) (0.2) (0.2) 350.1 34.0 (0.1) Model updates: EUR 3.5 bn Busi
Slide 6: Capital: Key achievements to date
Capital: Key achievements to date CRD4 Common Equity Tier 1 ratio, in% Fully-loaded Key achievements to date — Capital position significantly strengthened 9.7% since June 2012 following announcement of 9.5% Strategy 2015+ priorities — Fully-loaded ratio increased by more than <6.0% 50% — More than E
Slide 7: We are committed to our 10% CET1 ratio target
We are committed to our 10% CET1 ratio target CET1 ratio and target Outlook CRD4 Common Equity Tier 1ratio, fully-loaded Risks Measures >10% ― EBA Regulatory Technical ― Retained earnings Standards, e.g. 9.5% ― NCOU de-risking ― Prudent Valuation: Potential EUR 1.5 – 2.0 bn ― Other divisional de-ris
Slide 8: Leverage: Exposure and ratio update
Leverage: Exposure and ratio update Pro-forma, adjusted fully loaded Reductions to 1Q2014 Composition of reductions In EUR bn CRD4 FX Reductions In EUR bn exposure (net of FX) Achieved Achieved x% Leverage ratio, in Achieved Jun 2013 - adj. fully loaded 2H2013(5) in 1Q2014 Mar 2014 3.0% 3.1% 3.2% NC
Slide 9: Leverage: Updated impact of revised rules
Leverage: Updated impact of revised rules Basel 3 / CRD4 differences before management action Leverage Exposure Key updates In EUR bn Derivative exposure ~100 ― Interpretation of Cash Variation ~(60) Margin rules aligned to industry ~200 ~(40) consensus Correlation Portfolio roll-off portfolio ― Con
Slide 10: Leverage: Simulation for 2015
Leverage: Simulation for 2015 CRD4, in EUR bn, period end Leverage exposure Tier 1 capital CRD4 leverage ratio Eligible AT1(1) Targeted AT1 1,583 issuance 3.0% 3.2% 3.1% >3% (44) 1,423 Adjusted fully loaded Fully loaded ((116)) ~1,290 47.8 ~(130) 45.4 8.1 11.3 40.3 10.0 5.0 36.5 35.3 35.3 Jun FX Red
Slide 11: Leverage: Inaugural Additional Tier 1 issuance
Leverage: Inaugural Additional Tier 1 issuance DB's inaugural issuance of CRR/CRD4 compliant Additional Tier 1 (“AT1”) capital Regulatory and tax issues clarified Key features: — multi currency issue — minimum of EUR 1.5 bn in aggregate — 5.125% CET1 trigger, based on phase-in ratio — temporary writ
Slide 12: Cost: Reported and adjusted
Cost: Reported and adjusted In EUR bn Non-Compensation Compensation and 6.9 7.2 7.6 6.6 6.5 benefits 3.1 3.7 4.3 4.9 3.1 3.5 3.2 2.9 2.7 3.3 1Q 2Q 3Q 4Q 1Q 2013 2014 Adj. cost base 6,034 5,910 5,600 5,604 5,992 (in EUR m) excludes: Cost-to-Achieve 224 357 242 509 310 Litigation 132 630 1,163 1,111 0
Slide 13: Cost: Update on operating cost and OpEx development
Cost: Update on operating cost and OpEx development 1Q2014 vs. 1Q2013 OpEx program to date In EUR bn Key drivers: In EUR bn — Establishing new control function capabilities 1Q2014 — Integrating platforms and enhancing end-to-end Invested/ (E2E) processes FY2013 achieved — Strengthening our regulator
Slide 14: Agenda: Group results
Agenda 1 Key current themes 2 Group results 3 Segment results Deutsche Bank 1Q2014 results financial transparency. 13 29 April 2014
Slide 15: Net revenues
Net revenues In EUR bn 9.4 8.2 7.7 8.4 6.6 1Q 2Q 3Q 4Q 1Q 2013 2014 Contribution to Group revenues ex Consolidation & Adjustments by business segment (1): CB&S 47% 43% 37% 36% 47% PBC 25% 29% 29% 35% 28% GTB 11% 12% 13% 14% 12% DeAWM 13% 12% 16% 17% 12% NCOU 5% 3% 5% (2)% 1% (1) Figures may not add
Slide 16: Provision for credit losses
Provision for credit losses In EUR m Non-Core Operations Unit Cost of Risk Deutsche Bank Group(1) Core Bank Cost of Risk Core Bank(1) Cost of Risk(1) 0.80% 0.70% 725 512 0.60% 473 319 354 239 0.50% 174 0.40% 87 246 0.30% 67 0.26% 299 407 0.20% 267 273 0.20% 179 0.10% 1Q 2Q 3Q 4Q 1Q 2013 2014 CB&S 51
Slide 17: Profitability
Profitability Income before income taxes Net income In EUR bn In EUR bn 2.4 1.7 1.7 1.1 0.8 0.0 0.3 0.1 (1.4) (1.8) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2013 2014 Post-tax return on equity(1) Effective tax rate 12% 2% 0% (10)% 8% 31% 58% (183)% 23% 34% FY2013: 1.2% FY2013: 53% (1) Annualized, bas
Slide 18: Agenda: Segment results
Agenda 1 Key current themes 2 Group results 3 Segment results Deutsche Bank 1Q2014 results financial transparency. 17 29 April 2014
Slide 19: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m In EUR m 1Q14 vs. 1Q14 vs. 1Q14 1Q13 4Q13 1Q13 4Q13 1,908 Revenues (1) 4,076 4,547 2,500 (10)% 63 % 1,492 Prov. for credit (16) (51) (70) (70)% (78)% losses Noninterest exp. (2,547) (2,578) (2,303) (1)% 11 % 758 IBIT 1,4
Slide 20: Sales & Trading debt and other products
Sales & Trading debt and other products Revenues Key features Debt S&T, in EUR m Debt Sales & Trading — 1Q2014 Debt S&T revenues down 10% y-o-y in a more 2,717 challenging market environment 2,433 — FX revenues significantly lower y-o-y driven by lower client 1,823 activity and a difficult trading e
Slide 21: Origination & Advisory
Origination & Advisory Revenues Key features In EUR m Advisory Overall Origination — Revenues down 7% y-o-y as weakness in Debt Origination revenues was only partially offset by higher 737 revenues in Equity Origination and Advisory 674 701 116 656 625 69 140 Advisory 155 107 — Revenues significantl
Slide 22: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m In EUR m 1Q14 vs. 1Q14 vs. 1Q14 1Q13 4Q13 1Q13 4Q13 507 520 Revenues 2,476 2,385 2,393 4% 3% 483 Prov. for credit (140) (111) (243) 26 % (42)% losses 347 Noninterest exp. (1,815) (1,791) (1,932) 1% (6)% IBIT 520 483 218 8% 1
Slide 23: Private & Business Clients: Profit by business unit
Private & Business Clients: Profit by business unit Income before income taxes, in EUR m Cost-to-Achieve(1) Private & Commercial Banking Postbank Advisory Banking International 48 32 63 19 11 59 1 5 11 41 51 25 53 155 204 204 177 86 188 204 161 155 146 118 126 117 128 74 52 21 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3
Slide 24: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m In EUR m 1Q14 vs. 1Q14 vs. 1Q14 1Q13 4Q13 Impairment of goodwill and other intangible assets 1Q13 4Q13 379 367 Revenues 1,028 1,034 976 (1)% 5% 324 Prov. for credit 318 losses (24) (92) (86) (74)% (72)% Noninterest exp. (637
Slide 25: Deutsche Asset & Wealth Management
Deutsche Asset & Wealth Management Income before income taxes Key features In EUR m In EUR m 1Q14 vs. 1Q14 vs. 1Q14 1Q13 4Q13 Impairment of goodwill and other intangible assets 1Q13 4Q13 Revenues 1,067 1,244 1,185 (14)% (10)% 282 Prov. for credit 1 (13) (9) n.m. n.m. 219 214(3) losses (14) Nonintere
Slide 26: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m SCG NCOU excl. SCG In EUR m 1Q14 vs. 1Q14 vs. 1Q14 1Q13 4Q13 1Q13 4Q13 27 (196) Revenues 74 441 (157) (83)% n.m. (340) (62) Prov. for credit (67) (87) (319) (23)% (79)% (258) (699) (191) losses (1,184) (1,227) Noninterest exp.
Slide 27: NCOU IBIT components
NCOU IBIT components IBIT in EUR m, TAA and RWA data as of 31 Mar 2014 FY2012 FY2013 1Q2014 Performance Drivers / Outlook Financial — Net margin, LLPs and costs mainly related to Wholesale assets, Portfolio 556 (842) (140) impacted by Credit / Interest rates / CRE exposures (TAA 39 bn, RWA 50 bn) —
Slide 28: NCOU: De-risking since June 2012
NCOU: De-risking since June 2012 De-risking milestones Size of Non-Core Operations Unit Total adjusted assets, in EUR bn NCOU excl. SCG — Since June 2012: Capital generation of EUR 6.3 bn, (63)% SCG 149 bps CET1 ratio benefit(1) 132 — Since June 2013: EUR 30 bn reduction in CRD4 12 leverage exposure
Slide 29: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 1Q14 vs. 1Q14 vs. 1Q14 1Q13 4Q13 1Q13 4Q13 IBIT (336) (255) (1,131) 31 % (70)% thereof (205) (153) V&T differences (1) (133) (159) (23) (16)% n.m. (255) (336) FVA (94) - (276) n.a. (66)% Spreads for capital (92) (7
Slide 30: Appendix
Deutsche Bank Appendix 29
Slide 31: Appendix: Table of Contents
Appendix: Table of Contents IBIT detail 31 Litigation update 33 NCOU Portfolio Overview 34 Total assets (adjusted) 35 CRD4 – Balance sheet and risk weighted assets 36 Loan book 37 Impaired loans 39 Value-at-Risk 40 Funding 41 Number of shares 43 Invested assets 45 Group headcount 46 Deutsche Bank 1Q
Slide 32: 1Q2014: IBIT detail
1Q2014: IBIT detail 1Q2014 CVA/DVA/ In EUR m IBIT reported CtA Litigation Other(1) IBIT adjusted FVA CB&S 1,492 (111) 18 7 (12) 1,588 PBC 520 (107) (0) 0 (4) 631 GTB 367 (19) 2 0 (1) 385 DeAWM 169 (56) (13) 0 (4) 241 C&A (336) (5) (1) (94) (7) (228) Core Bank 2,212 (297) 6 (87) (27) 2,617 NCOU (532)
Slide 33: 1Q2013: IBIT detail
1Q2013: IBIT detail 1Q2013 CVA/DVA/ In EUR m IBIT reported CtA Litigation Other(1) IBIT adjusted FVA CB&S 1,908 (102) (56) 137 1 1,929 PBC 483 (84) (0) 0 (5) 571 GTB 318 (7) (0) 0 (2) 327 DeAWM 219 (14) (14) 0 (1) 249 C&A (255) (0) (1) 0 (1) (252) Core Bank 2,673 (208) (72) 137 (9) 2,825 NCOU (258)
Slide 34: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves In USD Demands Reserves 2.0 1.8 1.8 5.0 5.0 1.5 0.5 0.6 31 Dec 2013 31 Mar 2014 31 Dec 2013 31 Mar 2014 31 Dec 2013 31 Mar 2014 — While litigation expenses were — This includes obligations whe
Slide 35: NCOU Portfolio Overview
NCOU Portfolio Overview Total adjusted assets(1) Total adjusted assets(1) In EUR bn, as of 31 December 2013 In EUR bn, as of 31 March 2014 SCG IAS 39 reclassified SCG assets AWM IAS 39 AWM reclassified assets 6.4 2.9 1.2 8.6 Other CI 1.1 loans 8.3 3.5 7.4 Other loans 3.1 13.9 Monolines CI 5.0 PBC: O
Slide 36: Total assets (adjusted)
Total assets (adjusted) In EUR bn Positive market values 1,066 from derivatives 1,056 post netting 51 43 Trading securities Financial assets 188 210 Trading assets 180 at FV through P&L 200 Trading assets Other trading assets Reverse repos / 23 20 securities borrowed 132 129 Loans des. at FV 16 14 O
Slide 37: CRD4 – Balance sheet and risk weighted assets
CRD4 – Balance sheet and risk weighted assets XX RWA density incl. operational risk RWA(1) vs. balance sheet (assets adj.) XX RWA density excl. operational risk In EUR bn, as of 31 Mar 2014 ~35% 323 323 ~31% 1,056 Avg. RWA density Market Risk RWA 75 64 Non-derivative 79 ~40% 200 64 trading assets ~4
Slide 38: Loan book
Loan book In EUR bn 400 393 387 386 382 NCOU 43 34 32 23 22 DeAWM 30 31 31 32 33 PBC 211 211 214 213 213 GTB 75 77 72 73 76 CB&S 41 40 39 40 42 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 2013 2014 Germany excl. Financial Institutions and Public Sector: 182 182 183 183 186 Note: Loan amounts are gross of all
Slide 39: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR m, as of 31 Mar 2014 Note: Loan amounts are gross of allowances for loan losses. Figures may not add up due to rounding differences Deutsche Bank 1Q2014 results financial transparency. 38 29 April 2014
Slide 40: Impaired loans
Impaired loans(1) In EUR bn Non-Core Operations Unit Impaired loan ratio Deutsche Bank Group(3) Core Bank Impaired loan ratio Core Bank(3) 4.50% Impaired loan ratio 4.00% 3.50% 10.1 9.7 10.1 10.3 9.3 3.00% 3.3 3.7 3.5 3.5 3.2 2.66% 2.50% 2.00% 1.90% 6.4 6.2 6.7 6.9 1.50% 6.1 31 30 30 31 31 Mar Jun S
Slide 41: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, in EUR m Average VaR Stressed VaR(1) EUR 3.5 bn Sales & Trading revenues EUR 3.2 bn 180 160 140 120 100 80 60 40 20 59 55 48 53 54 136 129 95 97 108 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 (1) Stressed Value-at-Risk is calculated on the same portfoli
Slide 42: Funding activities update
Funding activities update Funding cost development Observations In bps — Funding plan of EUR 20 bn for 2014 European Peer CDS(1) 280 US Peer CDS(2) — As per 31 Mar 2014 issuance at DB 5yr Senior CDS DB issuance spread(3) EUR 8.5 bn at average L+37 bps 240 DB issuance volume (ca. 20 bps inside CDS) a
Slide 43: Funding Profile
Funding Profile Funding well diversified Highlights 1Q2014 As of 31 March 2014 — Total funding liabilities slightly lower at EUR 969 bn (vs. EUR 984 bn as of Dec 2013) Financing Vehicles 2% 65% from most stable — Disposal of BHF business reduced retail funding sources deposits by EUR 5 bn Secured Fu
Slide 44: Number of shares
Number of shares In million Average used for EPS calculation End of period numbers 31 Dec 31 Dec 31 Mar FY2012 FY2013 1Q2014 2012 2013 2014 Common shares issued 929 989 1,019 929 1,019 1,019 Total shares in treasury (9) (2) (3) 0 0 0 Common shares outstanding 921 987 1,016 929 1,019 1,019 Vested sha
Slide 45: Regional invested assets – DeAWM
Regional invested assets – DeAWM In EUR bn 31 Mar 2014 31 Dec 2012 31 Mar 2013 30 Jun 2013 30 Sep 2013 31 Dec 2013 31 Mar 2014 vs. 31 Dec 2013 Americas 277 291 281 267 263 258 (5) Asia-Pacific 55 57 53 54 56 58 2 EMEA (ex Germany) 280 286 281 287 299 310 10 Germany 308 316 316 315 305 309 4 DeAWM 92
Slide 46: Invested assets – PBC
Invested assets – PBC In EUR bn 31 Mar 2014 31 Dec 2012 31 Mar 2013 30 Jun 2013 30 Sep 2013 31 Dec 2013 31 Mar 2014 vs. 31 Dec 2013 Private & Business Clients 293 290 285 285 282 284 2 Investment & Insurance Products 139 142 141 143 146 149 3 Deposits excl. Sight Deposits 154 148 144 142 136 135 (1)
Slide 47: Group headcount
Group headcount Full-time equivalents, at period end 31 Mar 2014 31 Dec 2012 31 Mar 2013 30 Jun 2013 30 Sep 2013 31 Dec 2013 31 Mar 2014 vs. 31 Dec 2013 CB&S 8,499 8,271 8,107 8,466 8,359 8,215 (145) PBC 37,995 38,509 38,596 38,608 37,969 38,298 329 GTB 4,313 4,265 4,197 4,185 4,067 4,061 (6) DeAWM
Slide 48: 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