Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q3 2016 Earnings Presentation
42 slides from Deutsche Bank's earnings presentation, Oct 27, 2016
Slide 1: Deutsche Bank – 3Q2016 results
Deutsche Bank Deutsche Bank – 3Q2016 results 27 October 2016
Slide 2: Group financial highlights
Group financial highlights EUR bn, unless otherwise stated 3Q2016 vs. 9M2016 vs. 3Q2016 3Q2015 9M2016 9M2015 3Q2015 9M2015 Net revenues 7.5 7.3 22.9 26.9 2% (15)% Provision for credit losses (0.3) (0.2) (0.9) (0.6) 58% 55% Noninterest expenses (6.5) (13.2) (20.5) (29.7) (50)% (31)% (1) therein: Adju
Slide 3: Quarterly net income 3Q2016 vs. 3Q2015
Quarterly net income 3Q2016 vs. 3Q2015 EUR m — Revenues increased by EUR 0.1bn, FX-adjusted deltas(1): including: — Strong performance in GM Incl. EUR (193)m Policyholder 278 — Non-recurrance of a negative benefits & claims vs. 3Q15 vs. 2Q16 impact from Hua Xia Bank recorded in 3Q2015 in PWCC Revenu
Slide 4: Costs
Costs EUR bn Noninterest expenses Key facts 3Q2016 vs 3Q2015 FX (6.5)bn — Noninterest expenses in 3Q2016 are 13.2 13.1 EUR 6.5bn lower than in 3Q2015 — 3Q2015 included EUR 5.8bn impairment Impairments of goodwill and other intangible assets / Policyholder 5.7 5.7 — Litigation is EUR 0.7bn lower than
Slide 5: Adjusted Costs
Adjusted Costs EUR m Adjusted Costs(1) Key facts 3Q2016 vs 3Q2015 FX 3Q15 — Adjusted costs are EUR 0.2bn lower than in 3Q2015, primarily 3Q15 2Q16 3Q16 FX(2) due to lower performance related compensation, this is also the Compensation and Benefits 3,248 3,193 2,931 2,864 main driver for the reductio
Slide 6: Litigation update
Litigation update EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves(1) In USD bn Demands Reserves 5.9 5.5 2.4 2.4 1.7 1.6 0.3 0.3 30 Jun 2016 30 Sep 2016 30 Jun 2016 30 Sep 2016 30 Jun 2016 30 Sep 2016 — In 3Q2016, Deutsche Bank continued to — Includes possible o
Slide 7: Tier 1 capital
Tier 1 capital CRD4, fully loaded, EUR bn Common Equity Tier 1 Tier 1 capital Additional Tier 1 capital Events in the quarter 4.6 4.6 — CET1 capital down by EUR (0.7)bn, including EUR (0.2)bn FX effect 0.2 — EUR 0.3bn net income in the quarter is more 0.3 43.5 than offset by Other: (0.1) — EUR (0.3)
Slide 8: RWA
RWA CRD4, fully loaded, EUR bn 10.8% CET1 ratio, fully loaded 11.1% 12.2% CET1 ratio, phase in 12.6% Events in the quarter 402 — 3Q2016 fully loaded CET1 ratio of 11.1%, ~30bps above 385 (9) (2) 2Q2016 (4) (0) (2) — RWA down by EUR (18)bn, including EUR (2)bn FX effect — EUR (10)bn reduction across
Slide 9: Leverage exposure
Leverage exposure CRD4, fully loaded, EUR bn 3.4% CRD4 Leverage ratio, fully loaded 3.5% Events in the quarter 1,415 — Leverage Ratio at 3.5% vs 3.4% in 2Q2016 (2) (18) (4) (0) — Leverage exposure is EUR (60)bn below 2Q2016 1,354 (27) (including FX effect of EUR (9)bn) (9) — Derivatives decreased EU
Slide 10: Funding and liquidity
Funding and liquidity As of 30 September 2016, EUR bn Well diversified funding profile Comments — EUR 200bn of liquidity reserves (EUR 223bn June) — 122% Liquidity Coverage Ratio (broadly flat to June) Secured Financing Equity, 6% (1) — 72% of total funding from most stable sources, stable versus Fu
Slide 11: Segment results
Segment results Deutsche Bank 3Q2016 results 11 Investor Relations 27 October 2016
Slide 12: Global Markets
Global Markets Income before income taxes Key features In EUR m In EUR m 3Q16 3Q15 3Q16 vs. 9M 16 9M15 9M16 vs. 3Q15 9M15 1,083 (1) Net revenues 2,588 2,344 10% 7,826 9,355 (16)% 753 Prov. for credit losses (30) (0) n.m. (84) (7) n.m. 395 Noninterest exp. (2,206) (4,345) (49)% (6,942) (10,186) (32)%
Slide 13: Sales & Trading revenues
Sales & Trading revenues Revenues Key revenue features Debt S&T, in EUR m Debt Sales & Trading revenues — FX revenues broadly flat y-o-y 6,970 — Rates revenues were significantly higher y-o-y driven by strong 14% 5,959 performance in Europe, with robust deal flow in interest rate swaps with 2,892 bo
Slide 14: Corporate and Investment Banking
Corporate and Investment Banking Income before income taxes Key features In EUR m In EUR m 3Q16 3Q15 3Q16 vs. 9M 16 9M15 9M16 vs. 1,387 3Q15 9M15 1,130 Net revenues 1,963 1,988 (1)% 5,676 6,277 (10)% Prov. for credit losses (176) (90) 96% (427) (179) 139% 722 596 640 Noninterest exp. (1,147) (2,086)
Slide 15: Corporate and Investment Banking
Corporate and Investment Banking Revenues Key revenue features Transaction Banking: In EUR m Advisory Origination, Loan Products & Other Trade Finance & Cash Management Corporates down 3% y-o-y due to continued deterioration in the interest rate environment, downward Transaction Banking 6,277 trend
Slide 16: Private, Wealth & Commercial Clients
Private, Wealth & Commercial Clients Income before income taxes Key features In EUR m In EUR m 3Q16 3Q15 3Q16 vs. 9M 16 9M15 9M16 vs. 3Q15 9M15 483 Net revenues 1,740 1,450 20% 5,338 5,633 (5)% 404 367 Prov. for credit losses (57) (54) 5% (160) (208) (23)% 187 62 117 Noninterest exp. (1,566) (2,531)
Slide 17: Private, Wealth & Commercial Clients: Business Units
Private, Wealth & Commercial Clients: Business Units Revenues Key revenue features Private & Commercial Clients, in EUR m Private & Commercial Clients (PCC) 4,276 3,991 PCC revenues down versus an exceptionally strong 3Q2015, which benefited from a EUR ~100 m extraordinary dividend payment from a PC
Slide 18: Deutsche Asset Management
Deutsche Asset Management Income before income taxes Key features In EUR m In EUR m 3Q16 vs. 9M16 vs. 3Q16 3Q15 9M 16 9M15 549 3Q15 9M15 511 Net revenues 823 633 30% 2,220 2,151 3% Memo: Net revenues 628 680 (8)% 1,911 2,021 (5)% ex-Ab b ey gross-up (1) Prov. for credit losses (0) (1) (99)% (1) (1)
Slide 19: Postbank
Postbank Income before income taxes Key features In EUR m In EUR m 3Q16 3Q15 3Q16 vs. 9M 16 9M15 9M16 vs. 3Q15 9M15 369 Net revenues 779 837 (7)% 2,542 2,497 2% Prov. for credit losses (45) (64) (30)% (121) (147) (18)% 179 Noninterest exp. (665) (3,258) (80)% (2,052) (4,634) (56)% 113 122 88 68 IBIT
Slide 20: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 3Q16 3Q15 3Q16 vs. 9M 16 9M15 9M16 vs. 3Q15 9M15 Net revenues (191) 236 n.m. (524) 854 n.m. (192) Prov. for credit losses (17) 0 n.m. (96) (34) 182% (317) (533) (538) Noninterest exp. (330) (427) (23)% (1,083) (2,198)
Slide 21: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 3Q16 3Q15 3Q16 vs. 9M 16 9M15 9M16 vs. 3Q15 9M15 IBIT (215) (255) (16)% (116) (260) (56)% 413 thereof (1) V&T differences (153) (147) 4% 90 21 n.m. (2) 57 FVA (20) 31 n.m. (40) (77) (48)% 42 Postbank separation (3)
Slide 22: Appendix
Appendix Deutsche Bank 3Q2016 results 22 Investor Relations 27 October 2016
Slide 23: Appendix: Table of Contents
Appendix: Table of Contents P&L details 25 NCOU details 35 CRD4 – Leverage Exposure and Risk Weighted Assets 36 Loan book 37 Impaired loans 38 Value-at-Risk 39 Invested assets 40 Headcount 42 Deutsche Bank 3Q2016 results 23 Investor Relations 27 October 2016
Slide 24: Year-to-date net income 9M2016 vs. 9M2015
Year-to-date net income 9M2016 vs. 9M2015 EUR m FX-adjusted deltas(1): 534 Incl. EUR (155) m 152 331 Policyholder benefits & claims (4,647) 5,369 (1,476) (547) 45 (270) 89 (1,357) (219) (402) 3,049 (317) 733 9M15 GM CIB PWCC (2) AM PB NCOU C&A LLP Adj. Restr. Liti- Policyh./ Tax Net FX 9M16 Revenues
Slide 25: Net revenues
Net revenues EUR bn EUR 0.2 bn (2) 26.9 22.9 10.4 9.2 7.3 6.6 8.1 7.4 7.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9M 9M 2015 2016 2015 2016 Contribution to Group revenues ex Consolidation & Adjustments by business segment (1): GM 37% 36% 31% 23% 35% 33% 34% 35% 34% CIB 22% 23% 27% 27% 23% 25% 25% 23% 25% PW&CC 21% 22%
Slide 26: Provision for credit losses
Provision for credit losses EUR m 891 Cost of Risk(1) 96 Core NCOU (1) (1) Cost of Risk DB Group Cost of Risk Core Bank 0.60% 576 380 327 34 17 304 259 17 0.40% 794 218 75 5 207 362 29 151 542 0.20% 6 254 310 189 145 208 230 0.00% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9M 9M 2015 2016 2015 2016 GM 1 5 0 43 15 39 30 7
Slide 27: Relatively small loan exposure to 'focus industries'
Relatively small loan exposure to ‘focus industries’ As of 30 September 2016 Loan exposure Oil & Gas: ~ EUR 9bn loan exposure — Slightly higher drawings compared to Q2 mainly from national oil & gas companies — ~50% to IG borrowers (mainly oil majors and national oil & gas companies) Retail — 25% to
Slide 28: Reported and adjusted costs
Reported and adjusted costs Noninterest expenses, EUR bn 29.7 Compensation and benefits Noninterest expenses excl. compensation and benefits 20.5 19.5 13.2 11.4 8.7 7.8 9.0 9.9 7.2 6.7 6.5 5.2 4.4 5.9 4.0 3.8 3.7 10.2 9.0 3.4 3.4 3.3 3.1 3.2 3.0 2.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9M 9M 2015 2016 2015 2016 Adj
Slide 29: 3Q2016: IBIT detail
3Q2016: IBIT detail 3Q16 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM 330 50 (47) (342) 0 CIB 640 0 (19) (1) 0 PW&CC 117 0 2 1 0 AM 216 0 (11) 0 0 Postbank 68 3 (1) 3 0 C&A (215) (20) (0) 0 0 Core Bank 1,156 33 (75) (338) 0 NCOU (538) 1 (1) (163) 49 Group 619 3
Slide 30: 3Q2015: IBIT detail
3Q2015: IBIT detail 3Q15 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM (1,989) 62 (41) (846) (1,568) CIB (188) (1) (17) (183) (600) PW&CC (1,135) 0 0 (20) (1,006) AM 142 0 (1) 3 0 Postbank (2,486) (1) 0 (1) (2,597) C&A (255) 31 1 (21) 0 Core Bank (5,909) 91 (58)
Slide 31: 9M2016: IBIT detail
9M2016: IBIT detail 9M2016 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM 753 194 (178) (408) (285) CIB 1,387 0 (174) (8) 0 PW&CC 367 0 (137) (31) 0 AM 549 0 (67) (1) 0 Postbank 369 (6) (2) (29) 0 C&A (116) (40) (1) 67 0 Core Bank 3,308 149 (559) (408) (285) NCOU
Slide 32: 9M2015: IBIT detail
9M2015: IBIT detail 9M2015 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM (863) 40 (104) (2,270) (1,568) CIB 1,130 (1) (42) (325) (600) PW&CC (247) 0 (4) (43) (1,006) AM 511 0 (5) (1) 0 Postbank (2,285) 5 1 (1) (2,597) C&A (260) (77) 1 (22) 0 Core Bank (2,014) (3
Slide 33: Post-tax RoTE
Post-tax RoTE EUR m, unless otherwise stated GM CIB PW&CC AM Postbank NCOU C&A Group 3Q16 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 3Q15 IBIT 330 (1,989) 640 (188) 117 (1,135) 216 142 68 (2,486) (538) (192) (215) (255) 619 (6,101) Taxes (1) 114 (704) 221 (67) 41 (402) 75
Slide 34: NCOU IBIT components
NCOU IBIT components EUR m Component FY2015 9M16 3Q2016 Comments/Outlook Portfolio revenues 509 314 117 De-risking IBIT(1) 412 (839) (259) — Net IBIT will be impacted MtM/Other (77) 23 2 by accelerated wind down Asset-driven LLPs (102) (68) (19) strategy Costs (643) (434) (129) Total 99 (1,005) (287
Slide 35: CRD4 – Leverage Exposure and Risk Weighted Assets
CRD4 – Leverage Exposure and Risk Weighted Assets Leverage Exposure vs. RWA(1) In EUR bn CRD4 – Leverage Exposure RWA 1,415 1,354 289 289 Non-derivative trading assets 173 64 171 43 Market Risk RWA 40 64 CVA 12 Derivatives(2) 244 225 45 Lending 417 411 127 250 Credit Risk RWA 237 Reverse repo / secu
Slide 36: Loan book
Loan book EUR bn 434 430 433 433 429 433 428 GM 50 50 55 58 58 61 61 CIB 106 103 100 97 97 97 92 PW&CC 160 161 163 164 162 163 163 DAM 0 0 0 0 0 0 0 PB 104 104 104 104 104 105 105 NCOU 13 12 11 9 8 6 5 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 30-Sep 2015 2016 Note: Loan amounts are gross of allowan
Slide 37: Impaired loans
Impaired loans(1) Period-end, EUR bn Non-Core Operations Unit Core Impaired loan ratio Deutsche Bank Group (3) Impaired loan ratio Core Bank (3) 9.4 8.7 8.1 8.2 7.6 7.5 2.7 7.4 2.50% 2.5 2.2 2.1 1.1 1.6 1.3 2.00% 1.50% 6.7 6.4 1.00% 6.2 5.9 6.0 6.0 6.1 0.50% 0.00% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2015 2016 Cove
Slide 38: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, EUR m Average VaR Stressed VaR(1) 180 EUR 2.5 bn Sales & Trading revenues EUR 2.7 bn 160 140 120 100 80 60 40 20 40 38 37 37 28 111 99 98 89 77 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 (1) Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses a hist
Slide 39: Invested Assets / Client Assets – PW&CC
Invested Assets / Client Assets – PW&CC EUR bn 3Q2016 decline includes PCS deconsolidation impact of EUR (37) bn (affects both PW&CC and WM). FY2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 Invested Assets 489 525 514 492 503 479 480 438 Assets under Administration (1) 138 153 154 149 153 15
Slide 40: Invested Assets / Client Assets – AM
Invested Assets / Client Assets – AM EUR bn FY2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 Invested Assets 691 773 755 726 744 711 719 715 Assets under Administration (1) 42 54 53 51 54 57 63 65 Client Assets 733 828 808 777 798 768 782 779 Breakdown of Invested Assets 691 773 755 726 744 7
Slide 41: Group headcount
Group headcount Full-time equivalents, at period end 30 Sep 2016 30 Sep 2015 31 Dec 2015 31 Mar 2016 30 Jun 2016 30 Sep 2016 vs. 30 Jun 2016 GM 4,953 4,921 4,789 4,676 4,754 78 CIB 7,327 7,360 7,295 7,178 7,244 66 PW&CC 25,746 25,670 25,616 25,497 25,005 (492) AM 2,629 2,705 2,673 2,597 2,606 9 Post
Slide 42: 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