Slide 1: Q4/FY 2019 results
Deutsche Bank Q4/FY 2019 results 30 January 2020
Slide 2: Strong execution on our strategic transformation
Strong execution on our strategic transformation Disciplined execution drove in-line or outperformance against all financial targets Clear signs of franchise stabilization with stakeholders welcoming revitalized strategy 8th consecutive quarter of annual adjusted cost(1) reductions Risk weighted ass
Slide 3: Delivered on all objectives in 2019
Delivered on all objectives in 2019 2019 objectives 2019 Adjusted costs(1) € 21.5bn € 21.5bn CET 1 ratio >13% 13.6% Leverage ratio 4% 4.2% Capital Release Unit risk weighted assets 52 46 Capital Release Unit leverage exposure ~140 127 (1) Employees(2) <90k 87.6k Excluding transformation
Slide 4: Stabilizing and building momentum in the Core Bank
Stabilizing and building momentum in the Core Bank In € bn Revenues ex. specific items(1) Adjusted profit (loss) before tax(2) 24.6 Capital 1.9 23.2 (83)% 0.3 Release Unit Core 2.6 2.8 Bank Core 22.8 22.7 0% Bank (1.4) Capital (2.4) Release Unit 2018 2019 2018 2019 Note: Throughout this presentation
Slide 5: Stabilizing revenues
Stabilizing revenues Core Bank revenues(1) excluding specific items(2), in € bn 2% 11.0 10.8 — Higher revenues in our commercial clients business in Germany driven by steady loan growth Corporate 0% — Solid revenue performance in Asia 2.6 CB Bank 2.6 — Introduction of ECB tiering and roll out of dep
Slide 6: 8th consecutive quarter of annual adjusted cost reductions
8th consecutive quarter of annual adjusted cost(1) reductions In € bn Adjusted cost ex. transformation charges(2) Full year adjusted cost development Bank levies 22.8 22.8 Transformation (6)% 1.1 charges 0.7 (0.3) 0.6 0.1 Global Prime Finance(3) Adjusted costs ex. 21.5 transformation charges and 5.7
Slide 7: Maintained strong CET1 ratio
Maintained strong CET1 ratio CET 1 ratio Capital Release Unit risk weighted assets (€ bn) 13.6% 13.4% 72 65 Target At least 12.5% (19) 2019 target 46 52 11.6% Maximum Distributable Amount(1) Q2 2019 Core Bank Capital Regulatory Q4 2019 2018 Q2 2019 Q4 2019 Release impact Unit (1) Reduced Pillar 2 re
Slide 8: Conservatively managed balance sheet
Conservatively managed balance sheet 2019 Comment Reflects strong underwriting Provision for credit losses as a % of loans 17bps standards and low risk portfolios Loans as a % of deposits(1) 76% Supports continued loan growth Strong funding base due to Most stable funding(2) 83% structural improveme
Slide 9: Building momentum in our franchises
Building momentum in our franchises Corporate Bank Investment Bank Private Bank Asset Management # Corporate cash transactions, Revenues with top Loans, in € bn Net flows, in € bn in bn 100 institutional clients +4% +9% +15% 230 2.9 221 25 2.7 (23) 2018 2019 2018 2019 2018 2019 2018 2019 Deutsche Ba
Slide 10: Confidence in strategic delivery
Confidence in strategic delivery Client momentum building across franchise Broad stakeholder support and continued progress on regulatory remediation Delivery in 2019 and clear 2020 roadmap supports confidence in reaching adjusted cost targets Current macroeconomic environment more supportive Strong
Slide 11: Q4 and FY 2019 Group financial highlights
Q4 and FY 2019 Group financial highlights In € m, unless stated otherwise Change in % Change in % Q4 2019 vs. Q4 2018 FY 2019 vs. FY 2018 Revenues 5,349. (4) 23,165. (8) Revenues of which: specific items(1) 34( (8)( Revenues ex specific items 5,315( (1) 23,173( (6) Noninterest expenses 6,395( 13. 25
Slide 12: Transformation-related effects
Transformation-related effects In € bn 2019 – 2022 expected cumulative % of total Q4 2019 expenses in 2019 Deferred tax Deferred Tax Asset 2.8 0.4 3.4 82% asset valuation valuation adjustment adjustment Nonoperating Goodwill impairment - 1.0 100% costs(4) Restructuring & Goodwill 1.0 0.5 1.8 40% Sev
Slide 13: Core Bank financial highlights
Core Bank financial highlights Q4 2019, in € bn, unless otherwise stated Core Change vs. Capital Release Bank Q4 2018 Unit Revenues 5.5 5% (0.2) Revenues ex. specific items 5.5 8% (0.2) Noninterest expenses 5.7 16% 0.7 Adjusted costs ex. transformation charges(1) 4.6 (2)% 0.5(3) Profit (loss) before
Slide 14: Adjusted costs
Adjusted costs In € m, FX adjusted Global Prime Finance(1) (7)% Drivers 23,135 22,761 — Reductions across all major cost 21,616 1,145 (799) (39) (249) categories in both FY and Q4 (433) 102 2019 — Decline in compensation and 21,514 benefit costs primarily reflects workforce reductions FY 2018 Compen
Slide 15: Capital ratios
Capital ratios In € bn except movements (in basis points), period end CET1 ratio 73 — CET1 capital ratio increased by 24bps in the quarter as risk weighted asset reductions more than offset the 13.6% 13.4% transformation-related effects on net income (47) (2) — Risk weighted asset reductions of € 6b
Slide 16: Segment results
Segment results Deutsche Bank Q4 2019 results 15 Investor Relations 30 January 2020
Slide 17: Corporate Bank
Corporate Bank In € m, unless otherwise stated Change in Change in % vs. % vs. Q4 2019 Q4 2018 FY 2019 FY 2018 FY 2019 year-on-year comments Revenues 1,291. (5) 5,264. 0 Revenues — Revenues essentially flat despite Revenues ex. specific items(1) 1,291. (5) 5,264. 1 interest rate headwinds and lower
Slide 18: Q4 2019 Corporate Bank revenue performance
Q4 2019 Corporate Bank revenue performance In € m X% X% Excluding specific items(1) Change vs. Q4 2018 Q4 2019 year-on-year drivers Global Transaction Banking: Global Transaction Banking 942 (6)% (6)% — Cash Management revenues impacted by lower interest rate environment, partially compensated by sh
Slide 19: Investment Bank
Investment Bank In € m, unless otherwise stated Change in Change in % vs. % vs. Q4 2019 Q4 2018 FY 2019 FY 2018 FY 2019 year-on-year comments — Revenues ex. specific items Revenues 1,520. 13 6,961. (7) declined driven by lower Revenues of which: specific items(1) 28. 3. revenues in Origination & Rev
Slide 20: Q4 2019 Investment Bank revenue performance
Q4 2019 Investment Bank revenue performance In € m X% X% Excluding specific items(1) Change vs. Q4 2018 Q4 2019 year-on-year drivers Fixed Income, Currency Sales & Trading: Fixed Income, Currency — Credit revenues significantly higher Sales & Trading 1,188 31% 34% driven by stronger performance in F
Slide 21: Private Bank
Private Bank In € m, unless otherwise stated Change in Change in % vs. % vs. Q4 2019 Q4 2018 FY 2019 FY 2018 FY 2019 year-on-year comments Revenues 1,986 (4) 8,245 (5) — Revenues ex. specific items Revenues of which: specific items(1) 21 105 negatively impacted by Revenues ex. specific items 1,965 (
Slide 22: Q4 2019 Private Bank revenue performance
Q4 2019 Private Bank revenue performance In € m X% Excluding specific items(1) Change vs. Q4 2018 Q4 2019 year-on-year drivers Private Bank Germany: — Impact of deposit margin compression, higher liquidity and funding costs and lower Private Bank Germany 1,209 (7)% (7)% gains from smaller asset sale
Slide 23: Asset Management
Asset Management In € m, unless otherwise stated Change in Change in % vs. % vs. Q4 2019 Q4 2018 FY 2019 FY 2018 FY 2019 year-on-year comments Revenues Revenues 671) 31 2,332) 7 — Revenues up driven by significantly higher performance fees in Multi-Asset and Alternatives Noninterest expenses 438) 3.
Slide 24: Q4 2019 Asset Management revenue performance
Q4 2019 Asset Management revenue performance In € m X% X% Excluding specific items(1) Change vs. Q4 2018 Q4 2019 year-on-year drivers Management Fees: Management Fees 552 6% 6% — Management fees increased due to improved markets and inflows partly offset by margin compression — Net inflows of € 12bn
Slide 25: Corporate & Other
Corporate & Other In € m Profit before tax Change Change vs. Q4 vs. FY Q4 2019 FY 2019 2018 2018 Profit before tax (154) (45) (229) 204 (109) Funding & liquidity (127) (69) (207) (124) (161) (154) Valuation & Timing differences(1) 246. 149 574 463 (229) Shareholder expenses (84) 23 (477) (54) Litiga
Slide 26: Capital Release Unit
Capital Release Unit In € m, unless otherwise stated Absolute change vs. Q4 2019 Q3 2019 FY 2019 Q4 2019 quarter-on-quarter comments — Negative net revenues in the quarter Revenues (179) 43 208 driven by mark-to-market impacts as Revenues Revenues ex. specific items(1) (164) (42) 323 well as hedging
Slide 27: Our near-term objectives and financial targets
Our near-term objectives and financial targets 2020 2022 Adjusted costs(1) € 19.5bn € 17bn CET 1 ratio At least 12.5% At least 12.5% Leverage ratio 4.5% ~5% Group return on tangible equity 8% Core Bank return on tangible >9% equity Cost income ratio 70% (1) Excluding transformation charges and expen
Slide 28: Appendix
Appendix Deutsche Bank Q4 2019 results 27 Investor Relations 30 January 2020
Slide 29: Definition of certain adjustments
Definition of certain adjustments Adjusted costs is calculated by deducting (i) impairment of goodwill and other intangible assets, (ii) litigation charges, net Adjusted costs and (iii) restructuring and severance from noninterest expenses under IFRS Revenues excluding specific items is calculated b
Slide 30: Adjusted profit (loss) before tax
Adjusted profit (loss) before tax In € m Q4 2019 Q4 2018 Transfor- Transfor- Revenue Goodwill Restructuring Revenue Goodwill Restructuring PBT reported mation PBT Adjusted PBT reported mation PBT Adjusted specific items impairments & severance specific items impairments & severance charges(1) charge
Slide 31: Specific revenue items – Q4 2019 / Q3 2019 / H2 2019
Specific revenue items – Q4 2019 / Q3 2019 / H2 2019 In € m Q4 2019 Q3 2019 H2 2019 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 1,291 1,520 1,986 671 59 5,528 (179) 5,349 1,335 1,646 2,037 543 (76) 5,484 (222) 5,262 2,626 3,166
Slide 32: Specific revenue items – FY 2019
Specific revenue items – FY 2019 In € m FY 2019 FY 2018 Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Revenues 5,264 6,961 8,245 2,332 155 22,957 208 23,165 5,263 7,467 8,641 2,187 (120) 23,438 1,878 25,316 (1) DVA - IB Other / CRU - (140) - - - (140) (35) (175) - 126 - - -
Slide 33: Adjusted costs – Q4 2019 / FY 2019
Adjusted costs – Q4 2019 / FY 2019 In € m Q4 2019 Q4 2018 Q3 2019 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 Noninterest expenses 1,294 1,553 2,150 438 269 5,704 691 6,395 940 1,484 1,954 427 129 4,934 708 5,642 1,026 1,585 1,872 404 1
Slide 34: Reconciliation Adjusted costs including transformation charges
Noninterest expense trends In € m, unless otherwise stated Q4 FY Q4 Q4 YoY FY FY YoY YoY 2018 YoY 2018 2019 2018 ex FX 2019 2018 ex FX ex FX(1) ex FX(1) Adjusted costs including transformation charges Compensation and benefits 2,605 2,824 (8)% 2,858 (9)% 10,981 11,611 (5)% 11,780 (7)% IT costs 1,392
Slide 35: Adjusted costs excluding transformation charges
Adjusted costs excluding transformation charges In € m, unless otherwise stated Q4 FY Q4 Q4 YoY FY FY YoY YoY 2018 YoY 2018 2019 2018 ex FX 2019 2018 ex FX ex FX(1) ex FX(1) Adjusted costs excluding transformation charges Compensation and benefits 2,605 2,824 (8)% 2,858 (9)% 10,981 11,611 (5)% 11,78
Slide 36: Indicative regional currency mix Q4 2019
Indicative regional currency mix Q4 2019 Net revenues Total noninterest expenses 6% 8% 5% 9% 14% 14% 12% Other(1) 20% 20% Other(1) 18% 4% 5% 16% 1% 0% 29% 19% 10% 24% US$ 17% US$ 18% 32% GB Pound 0% 35% 1% GB Pound 9% 19% 23% 0% 87% 85% 68% Euro 62% 61% 47% Euro 56% 50% 45% 42% 7% Corporate Investme
Slide 37: Litigation update
Litigation update In € bn, period end Litigation provisions(1) 1.2 ― Provisions remained stable quarter-over-quarter, 1.1 1.1 1.1 as new provisions were offset by decreases due to settlement payments ― Provisions include approximately € 0.1bn related to settlements already achieved or agreed in Q1 2
Slide 38: Loan book
Loan book In € bn, period end Change vs. Q4 2018 Reported ex. FX 431 434 415 419 398 405 392 395 4% 2% 71 70 69 71 Global Transaction 65 67 67 65 Banking 48 49 6% 6% 46 47 44 44 46 Commercial Banking 43 74 75 16% 14% 65 69 69 Investment Bank(1) 57 58 62 43 43 9% 7% Wealth Management 37 39 39 40 42 4
Slide 39: Loan book composition
Loan book composition As of 31 December 2019 Capital Release Unit Other(1) — Well diversified Loan Portfolio. The gross IB Other position of loans at amortized cost was Leveraged Debt Capital Markets 1% € 434bn as of Q4 2019 6% Asset Backed Securities 1% 2% — More than half of the loan portfolio is
Slide 40: Provision for credit losses and stage 3 loans
Provision for credit losses and stage 3 loans Provision for credit losses, € m Stage 3 at amortised cost, € bn Private Bank Investment Bank PB (ex-POCI) CRU (ex-POCI) Corporate Bank Capital Release Unit CB (ex-POCI) Purchased or Originated Credit Impaired (POCI) IB (ex-POCI) Group Stage 3 2.3% 2.3%
Slide 41: Net interest income sensitivity
Net interest income sensitivity Hypothetical +100 bps parallel shift impact, in € bn First year Second year 1.7 1.5 0.9 0.9 0.8 0.6 Retail Non-retail Group Retail Non-retail Group Maturity Maturity > 3M 0.3 0.1 0.3 > 3M 0.5 0.1 0.6 EUR EUR ≤ 3M 0.3 0.7 1.0 ≤ 3M 0.3 0.7 1.0 > 3M 0.0 0.0 0.1 > 3M 0.0
Slide 42: Level 3 assets
Level 3 assets In € bn, as of 31 December 2019 Assets (total: € 24bn) Equity securities Mortgage backed securities Other 10 2 — Level 3 assets arise from the bank’s activities in Derivative 9 Assets various markets, some of which are less liquid Debt securities 5 — Level 3 classification is not an i
Slide 43: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, fully loaded, in € bn, period end Leverage exposure Risk weighted assets 324 324 73 Operational Risk RWA 73 1,291 1,168 109 Market Risk RWA 25 Trading assets 137 31 Credit valuation 5 Derivatives(1) 177 148 23 adjustments Lending 427 431 250 114 Lendi
Slide 44: Trading book Value at Risk
Trading book Value at Risk DB Group, 99%, 1 day, in € m, unless otherwise stated Stressed Value at Risk(1) Value at Risk Quarterly average ∅ 95 ∅ 87 ∅ 79 ∅ 86 ∅ 79 ∅ 30 ∅ 27 ∅ 28 ∅ 30 ∅ 25 120 100 80 60 40 20 0 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 (1) Stressed Value-at-Risk is calculated on the s
Slide 45: Assets under Management – Private Bank
Assets under Management – Private Bank In € bn Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Assets under Management 472 478 475 451 478 483 487 487 Private Bank Germany 204 205 207 198 209 213 213 215 therein: Deposits(1) 102 103 103 103 107 109 107 105 therein: Investment Product
Slide 46: Reconciliation of Asset Management segment to DWS
Reconciliation of Asset Management segment to DWS Profit before tax, in € m Q4 2019 264 1 21 55 177 (2) 12 Asset Management Sold & DB group Noncontrolling Transformation Other perimeter DWS Reported reported discontinued allocation / minority interest charge adjustments businesses Funding charges Q4
Slide 47: Employees
Employees Full-time equivalents, period end Change vs. Q4 2018 Of which Q4 2019 Q4 2018 Absolute Q1 2019 Q2 2019 Q3 2019 disposals Corporate Bank 7,428 7,353 75 (11) 7,440 7,499 7,516 Investment Bank 10,095 9,960 135 - 10,249 10,297 10,277 Private Bank 37,266 38,415 (1,149) (37) 38,140 37,983 38,100
Slide 48: Cautionary statements
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2019 and SEC Form 20-F are scheduled to be published on 20 March 2020. This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact