Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2016 Earnings Presentation
44 slides from Deutsche Bank's earnings presentation, Apr 28, 2016
Slide 1: Deutsche Bank 1Q2016 results
Deutsche Bank Deutsche Bank 1Q2016 results 28 April 2016
Slide 2: Group financial highlights
Group financial highlights In EUR bn, unless otherwise stated 1Q2016 vs. 1Q2016 vs. 1Q2016 1Q2015 4Q2015 1Q2015 4Q2015 Net Revenues 8.1 10.4 6.6 (22)% 21% Provision for credit losses (0.3) (0.2) (0.4) 40% (20)% Noninterest expenses (7.2) (8.7) (9.0) (17)% (20)% (1) (6.7) therein: Adjusted Costs (1)
Slide 3: Quarterly Net Income
Quarterly Net Income Net income 1Q2016 vs. 1Q2015, in EUR m FX-adjusted deltas(1): Hua Xia Bank — Revenues declined 559 significantly as a result of a 236 challenging market environment and the 133 implementation of strategic decisions — LLP increased from specific 553 events in selected portfolios
Slide 4: Costs
Costs In EUR bn Noninterest expenses Key facts(4) 8.7 — Noninterest expenses in 1Q2016 were EUR 1.3bn lower 8.5 0.2 than 1Q2015 Impairments/ 0.1 Policyholder — Litigation down EUR 1.2bn, 1Q2016 resolutions of Benefits and Claims(1) 1.5 1.4 7.2 litigation matters were materially covered by existing L
Slide 5: Adjusted Costs
Adjusted Costs In EUR m Adjusted Costs(1) Key facts(4) 6,914 6,836 — Compensation and Benefits down EUR 229m, as lower 6,668 cash bonus and retention expense offset higher fixed Other 1,042 1,038 salary expense 1,005 Occupancy (3) 463 — IT cost increase of EUR 86m significantly influenced by Bank Le
Slide 6: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves(1) In USD bn Demands Reserves 5.5 5.4 2.4 2.4 2.4 2.1 0.3 0.3 31 Dec 2015 31 Mar 2016 31 Dec 2015 31 Mar 2016 31 Dec 2015 31 Mar 2016 — Settlements and resolutions have been — Includes possibl
Slide 7: Tier 1 capital
Tier 1 capital CRD4, fully loaded, in 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 on FX- neutral basis 0.2 — EUR 0.2bn net income offset by 44.1 (0.1) — EUR (0.1)bn AT1 coupon accrual — EUR (0.3)bn from equity
Slide 8: RWA
RWA CRD4, fully loaded, in EUR bn 11.1% CET 1 ratio, fully loaded 10.7%(1) Events in the quarter 8 — 1Q2016 CET 1 ratio of 10.7% driven by higher OR RWA 3 401 and lower CET1 capital levels 397 0 0 (6) — 1Q2016 phase-in CET 1 ratio of 12.0%, well above regulatory requirement of 10.76% — RWA up by EUR
Slide 9: Leverage exposure
Leverage exposure CRD4 Leverage exposure development, in EUR bn 3.5% CRD4 Leverage ratio, fully loaded 3.4% Events in the quarter 33 — 1Q2016 Leverage ratio 3.4%, a reduction of 9bps 16 against FY2015 reflecting reduction in CET 1 capital 1,395 — Leverage exposure materially unchanged as increases i
Slide 10: Relatively small exposure to 'focus industries'
Relatively small exposure to ‘focus industries’ As of 31 March 2016 Gross drawn loan exposure Oil & Gas: ~ EUR 7bn loan exposure — 50% to IG borrowers (mainly oil majors and national oil & gas companies) — <25% to higher risk, sub-investment grade exploration & production (predominantly Retail Corpo
Slide 11: Segment results
Segment results Deutsche Bank 1Q2016 results financial transparency. 11 Investor Relations 28 April 2016
Slide 12: Global Markets
Global Markets Income before income taxes Key features In EUR m In EUR m 1Q16 vs. 1Q16 vs. 1Q16 1Q15 4Q15 1Q15 4Q15 1,027 Net Revenues (1) 2,774 3,598 1,455 (23)% 91% Prov. for credit losses (15) (1) (43) n.m. (65)% 380 Noninterest exp. (2,356) (3,597) (2,374) (34)% (1)% IBIT 380 (16) (963) n.m. n.m
Slide 13: Sales & Trading revenues
Sales & Trading revenues Revenues Key revenue features Debt S&T, in EUR m Debt Sales & Trading revenues — FX revenues lower y-o-y vs. a strong prior year quarter, driven by (29)% lower client activity — Rates significantly lower y-o-y reflecting a challenging market 2,905 environment, compared to a
Slide 14: Corporate and Investment Banking
Corporate and Investment Banking Income before income taxes Key features In EUR m In EUR m 1Q16 vs. 1Q16 vs. 1Q16 1Q15 4Q15 1Q15 4Q15 722 Net Revenues 1,825 2,135 1,769 (15)% 3% 596 Prov. for credit losses (136) (50) (163) 171% (16)% Noninterest exp. (1,372) (1,363) (1,295) 1% 6% 311 316 IBIT 316 72
Slide 15: Corporate and Investment Banking
Corporate and Investment Banking Revenues Key revenue features In EUR m Advisory Overall: Origination, Loan Products & Other — Revenues down 15% y-o-y as a result of weak market conditions Transaction Banking and fee environment in ECM and DCM — M&A revenues have held up as a result of transactions
Slide 16: Private, Wealth & Commercial Clients
Private, Wealth & Commercial Clients Income before income taxes Key features In EUR m In EUR m 1Q16 vs. 1Q16 vs. 1Q16 1Q15 4Q15 1Q15 4Q15 481 403 Net Revenues 1,737 2,092 1,882 (17)% (8)% Prov. for credit losses (36) (80) (92) (54)% (61)% 71 Noninterest exp. (1,629) (1,609) (2,311) 1% (30)% IBIT 71
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) 1,454 PCC revenues down 5% versus a strong 1Q2015 1,429 1,393 Investment and insurance products down 21% in difficult markets 1,362 Deposit rev
Slide 18: Postbank
Postbank Income before income taxes Key features In EUR m In EUR m 1Q16 vs. 1Q16 vs. 1Q16 1Q15 4Q15 1Q15 4Q15 113 122 Net Revenues 861 858 615 0% 40% 88 Prov. for credit losses (41) (57) (64) (27)% (35)% Noninterest exp. (697) (688) (863) 1% (19)% IBIT 122 113 (312) 8% n.m. (312) CIR 81% 80% 140% 1
Slide 19: Deutsche Asset Management
Deutsche Asset Management Income before income taxes Key features In EUR m In EUR m 1Q16 vs. 1Q16 vs. 1Q16 1Q15 4Q15 1Q15 4Q15 Net Revenues 736 840 909 (12)% (19)% 325 Memo: Net Revenues (1) 693 663 782 4% (11)% ex Abbey Life Prov. for credit losses (0) (0) 0 n.m. n.m. Noninterest exp. (567) (667) (
Slide 20: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 1Q16 vs. 1Q16 vs. 1Q16 1Q15 4Q15 1Q15 4Q15 Net Revenues 16 395 (60) (96)% n.m. Prov. for credit losses (75) (29) (17) 158% n.m. (192) (318) Noninterest exp. (475) (684) (808) (31)% (41)% (533) IBIT (533) (318) (885) 6
Slide 21: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 1Q16 vs. 1Q16 vs. 1Q16 1Q15 4Q15 1Q15 4Q15 IBIT 55 402 (509) (86)% n.m. 402 thereof V&T differences (1) 172 324 (155) (47)% n.m. 55 (2) FVA (9) 1 149 n.m. n.m. Postbank separation (35) 0 (33) n.a. 5% Remaining (73)
Slide 22: Progress & Outlook 2016
Progress & Outlook 2016 Progress Outlook NCOU wind down on track – EUR <10bn RWA by year Challenging revenue environment end expected 2016 peak restructuring year Sale of Maher Port announced Restructuring and severance costs of EUR ~0.5 – 0.7bn Red Rock Resorts IPO priced in remainder of 2016 at cu
Slide 23: Appendix
Appendix Deutsche Bank 1Q2016 results financial transparency. 23 Investor Relations 28 April 2016
Slide 24: 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 Funding 40 Total Loss Absorbing Capacity (TLAC) 41 Invested assets 42 Group Headcount 43 Deutsche Bank 1Q2016 results financial transparency
Slide 25: Net revenues
Net revenues In EUR bn EUR (2.3) bn (2) 10.4 9.2 7.3 8.1 6.6 1Q 2Q 3Q 4Q 1Q 2015 2016 Contribution to Group revenues ex Consolidation & Adjustments by business segment(1): GM 36% 35% 30% 22% 35% CIB 22% 23% 27% 27% 23% PWCC 21% 22% 19% 29% 22% Postbank 9% 9% 11% 9% 11% AM 8% 9% 9% 14% 9% NCOU 4% 2%
Slide 26: Provision for credit losses
Provision for credit losses In EUR m Cost of Risk(1) Core NCOU (1) (1) Cost of Risk DB Group Cost of Risk Core Bank 380 17 304 75 0.40% 218 207 362 29 151 6 0.20% 189 208 230 145 0.00% 1Q 2Q 3Q 4Q 1Q 2015 2016 GM 1 5 0 43 15 CIB 50 39 90 163 136 PWCC 80 74 54 92 36 Postbank 57 26 64 64 41 Note: Divi
Slide 27: 1Q2016: IBIT detail
1Q2016: IBIT detail 1Q16 In EUR m IBIT reported CVA / DVA / FVA Restructuring and Severance Litigation Impairments GM 380 143 (90) 68 0 CIB 316 0 (95) 0 0 PWCC 71 0 (70) (4) 0 Postbank 122 0 (1) (4) 0 AM 168 0 (24) (1) 0 C&A 55 (9) 0 (5) 0 Core Bank 1,113 133 (279) 55 0 NCOU (533) (52) (6) (242) 0 G
Slide 28: 1Q2015: IBIT detail
1Q2015: IBIT detail 1Q15 In EUR m IBIT reported CVA / DVA / FVA Restructuring and Severance Litigation Impairments GM (16) (176) (38) (1,155) 0 CIB 722 (0) (14) (6) 0 PWCC 403 0 (3) (3) 0 Postbank 113 0 1 (0) 0 AM 173 0 (1) 0 0 C&A 402 1 0 (1) 0 Core Bank 1,797 (174) (56) (1,164) 0 NCOU (318) (74) (
Slide 29: 2Q2015: IBIT detail
2Q2015: IBIT detail 2Q2015 In EUR m IBIT reported CVA / DVA / FVA Restructuring and Severance Litigation Impairments GM 1,027 164 (24) (268) 0 CIB 596 (1) (11) (137) 0 PWCC 481 0 (1) (20) 0 Postbank 88 0 (0) (0) 0 AM 325 0 (2) (4) 0 C&A (418) (109) (0) (0) 0 Core Bank 2,099 54 (39) (430) 0 NCOU (870
Slide 30: 3Q2015: IBIT detail
3Q2015: IBIT detail 3Q2015 In EUR m IBIT reported CVA / DVA / FVA Restructuring and Severance Litigation Impairments GM (2,033) 52 (41) (846) (1,568) CIB (187) (1) (17) (183) (600) PWCC (1,140) 0 0 (20) (1,006)(1) Postbank (2,486) 0 0 (1) (2,597) AM 182 0 (2) 3 0 C&A (246) 31 1 (21) 0 Core Bank (5,9
Slide 31: 4Q2015: IBIT detail
4Q2015: IBIT detail 4Q2015 In EUR m IBIT reported CVA / DVA / FVA Restructuring and Severance Litigation Impairments GM (963) (179) (60) (333) 0 CIB 311 0 (46) (4) 0 (1) PWCC (522) 0 (589) 1 (6) Postbank (312) 0 (84) (13) 0 AM 174 0 (6) (1) 0 C&A (509) 149 (1) (358) (0) Core Bank (1,819) (30) (786)
Slide 32: FY2015: IBIT detail
FY2015: IBIT detail FY2015 In EUR m IBIT reported CVA / DVA / FVA Restructuring and Severance Litigation Impairments GM (1,984) (139) (163) (2,602) (1,568) CIB 1,442 (1) (88) (329) (600) (1) PWCC (778) 0 (593) (41) (1,011) Postbank (2,596) 0 (83) (14) (2,597) AM 854 0 (12) (2) 0 C&A (770) 72 (0) (38
Slide 33: FY2014: IBIT detail
FY2014: IBIT detail FY2014 In EUR m IBIT reported CVA / DVA / FVA Restructuring and Severance Litigation Impairments GM 1,750 (300) (135) (580) 0 CIB 2,307 0 (61) (120) 0 PWCC 1,066 0 (108) (296) 0 Postbank (123) 0 (57) (216) 0 AM 770 0 (6) (8) 83 C&A (235) (66) (2) (38) 0 Core Bank 5,535 (365) (368
Slide 34: Post-tax RoTE
Post-tax RoTE In EUR m, unless otherwise stated GM CIB PWCC Postbank AM NCOU C&A Group 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 IBIT 380 (16) 316 722 71 403 122 113 168 173 (533) (318) 55 402 579 1,479 Taxes 132 (6) 109 256 25 143 42 40 58 61 (23) 426 0 0 343 9
Slide 35: NCOU IBIT components
NCOU IBIT components IBIT, in EUR m Component FY2014 FY2015 1Q2016 Comments/Outlook Portfolio Revenues 994 509 92 — Net IBIT will be impacted De-risking IBIT(1) 179 412 (123) by accelerated wind down MtM/Other (885) (78) 14 strategy Asset Driven LLPs (301) (102) (42) Costs (1,139) (643) (131) — Quar
Slide 36: 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 1,395 1,390 303 303 Non-derivative trading assets 193 64 64 171 52 Market Risk RWA 49 249 CVA 15 Derivatives(2) 255 48 Lending 417 413 128 250 Reverse repo / Credit Risk RWA 239 secu
Slide 37: Loan book
Loan book In EUR bn 434 430 433 433 429 GM 50 50 55 58 58 CIB 106 103 100 97 97 PW&CC 160 161 163 164 162 DeAM 0 0 0 0 0 PB 104 104 104 104 104 NCOU 13 12 11 9 8 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 2015 2016 Note: Loan amounts are gross of allowances for loan losses. Figures may not add up due to rou
Slide 38: Impaired loans
Impaired loans(1) Period-end, in EUR bn (3) Non-Core Operations Unit Core Impaired loan ratio Deutsche Bank Group(3) Impaired loan ratio Core Bank 9.4 8.7 2.60% 2.7 8.1 8.2 7.6 2.5 2.10% 2.2 2.1 1.6 1.60% 1.10% 6.7 6.2 5.9 6.0 6.0 0.60% 0.10% 1Q 2Q 3Q 4Q 1Q Coverage Ratio(2) 57% 58% 60% 62% 61% Note
Slide 39: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, in EUR m Average VaR Stressed VaR(1) EUR 3.9 bn Sales & Trading revenues EUR 2.8 bn 180 160 140 120 100 80 60 40 20 50 46 40 38 37 109 102 111 99 98 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 (1) Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses a
Slide 40: Funding activities and profile
Funding activities and profile Funding cost and volume development Funding profile well diversified Issuance, in EUR bn As of 31 March 2016 Financing 300 DB issuance spread, 4 week moving average, in bps(1) Vehicles, 0% DB 5yr EUR-CDS in bps Secured 17 Funding and 250 16 Shorts, 14% Capital Unsecure
Slide 41: German bail-in law strengthens position of depositors and counterparties
German bail-in law strengthens position of depositors and counterparties In EUR bn, as of 1 January 2017 Deposits 100k EUR(1) Deposits EUR>100k of natural persons /SMEs — Depositors, derivative counterparties, holders of structured Loss participation Other deposits(2), notes and money market instrum
Slide 42: Invested assets / client assets: impact from policy change
Invested assets / client assets: impact from policy change In EUR bn FY2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 Private, Wealth & Commercial Clients Invested Assets - old definition 531 577 565 540 550 524 Impact policy change (42) (54) (51) (48) (52) (48) Invested Assets - new definition 489 523 515
Slide 43: Group headcount
Group headcount Full-time equivalents, at period end 31 Mar 2016 31 Mar 2015 30 Jun 2015 30 Sep 2015 31 Dec 2015 31 Mar 2016 vs. 31 Dec 2015 GM 4,865 4,785 4,857 4,828 4,656 (172) CIB 7,159 7,096 7,280 7,305 7,288 (17) PWCC 25,725 25,736 25,748 25,669 25,566 (104) Postbank 19,010 18,935 18,843 18,65
Slide 44: 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