Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Annual Media Conference 2019
22 slides from Deutsche Bank's conference presentation, Feb 1, 2019
Slide 1: Annual Media Conference 2019
Deutsche Bank Annual Media Conference 2019 1 February 2019 – Frankfurt am Main
Slide 2: From stabilisation to controlled growth
From stabilisation to controlled growth Controlled Stabilisation growth Achieved first full-year net profit since 2014 with increased pre-tax profit ✓ Delivered on adjusted cost and headcount target for 2018 ✓ Executed on our strategy while further strengthening our controls ✓ Maintained strong bala
Slide 3: 2018 | Our first full-year net profit since 2014
2018 | Our first full-year net profit since 2014 Profit (loss) before tax(1) (€ bn) Net income(2) (€ bn) Post-tax return on tangible equity 1.3 1.2 0.3 0.5% (1.4)% (0.8) (2.7)% (0.8) (1.4) (6.1) (6.8) (12.3)% 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 Note: Throughout this presentat
Slide 4: 2018 | We delivered on our promises
2018 | We delivered on our promises Target Results Adjusted costs(1) € 23 bn € 22.8 bn ✓ Employees(2) <93.0 k 91.7 k ✓ CET1 capital ratio >13% 13.6% ✓ (1) Throughout this presentation adjusted costs are defined as total noninterest expenses excluding impairment of goodwill and other intangible asset
Slide 5: 2018 | We reached important strategic milestones
2018 | We reached important strategic milestones Corporate & Investment Bank Private & Commercial Bank DWS / Asset Management Leverage exposure, in € bn 1,030 ~950 893 2017 2018 2019 ambition German legal entity Enhanced independent ✓ Integrated client coverage ✓ merger completed including waiver ap
Slide 6: 2018 | Solid balance sheet and strong liquidity
2018 | Solid balance sheet and strong liquidity 2007 – pre-crisis 2015 2018 CET1 ratio(1) 8.6%(2) 11.1% 13.6% Total assets (IFRS) € 2,020 bn € 1,629 bn € 1,348 bn Liquidity reserves € 65 bn € 215 bn € 259 bn Average Value-at-Risk € 86 m € 43 m € 27 m Most stable funding(3) 30% 74% 79% (1) Fully-load
Slide 7: 2018 | Select financials at a glance
2018 | Select financials at a glance In € m, unless stated otherwise FY 2018 vs. FY 2017 4Q 2018 vs. 4Q 2017 Profit (loss) before tax(1) 1.3 8% (0.3) (77)% Net income (loss)(2) 0.3 n.m. (0.4) (82)% Revenues 25.3 (4)% 5.6 (2)% Adjusted costs 22.8 (5)% 5.4 (15)% Provision for credit losses 0.5 (0)% 0.
Slide 8: 2018 | Revenue development not satisfactory
2018 | Revenue development not satisfactory Full year, in € bn (16)% Fourth quarter, in € bn (4)% (4.2)% 26.4 25.3 (2)% 0.0% 5.7 5.6 Corporate & Investment 14.2 Bank 13.0 Corporate & Investment 2.7 2.6 Bank Private & Private & Commercial 10.2 10.2 Commercial 2.3 2.5 Bank Bank Asset Asset Management
Slide 9: 2018 | But ahead of target on adjusted costs
2018 | But ahead of target on adjusted costs Full year, reported in € bn Fourth quarter, reported in € bn (5)% (15)% 23.9 6.4 22.8 5.4 2017 Compensation IT Professional Other 2018 2017 Compensation IT Professional Other 2018 and benefits(1) costs Service and benefits(1) costs Service Fees Fees (1) D
Slide 10: 2018 | Conservatively managed balance sheet
2018 | Conservatively managed balance sheet Net balance sheet assets, in € bn 1,495 65 1,010 995 Liquidity Liquidity reserves: 26% of total net assets 259 Reserve (2007: 4%) Trading: 29% of total net assets Trading and 296 related assets(1) Of which derivatives: 3% of total net assets (2007: 11%) 20
Slide 11: 2018 | Divisional revenue development
2018 | Divisional revenue development In € m Corporate & Investment Bank Private & Commercial Bank Asset Management Other O&A Equities Wealth Management (Global) GTB FIC PCB (International) PCB (Germany) (8)% -8.3% Exited businesses 14.2 (0)% -1.0% 13.0 3.9 10.2 10.2 (2)% 3.8 2.0 (14)% 1.7 (14)% 2.2
Slide 12: 2018 | Resolving litigation risks and improving controls
2018 | Resolving litigation risks and improving controls Resolving litigation risks Improving controls Litigation provisions, in € bn ✓ Tripled to ~1,500 the number of employees in AFC(1) since the beginning Investments of 2015 ✓ ~€ 300m total investment in upgrading our AFC(1) technology over the l
Slide 13: A year with clear strategic priorities
2019 | A year with clear strategic priorities Controlled Stabilisation growth Remaining disciplined on cost, controls and capital Focusing our businesses on Deutsche Bank’s core strengths Improving balance sheet productivity Deutsche Bank Annual Media Conference 12 1 February 2019
Slide 14: 2019 | Remaining disciplined on cost
2019 | Remaining disciplined on cost Adjusted costs, in € bn — Lower compensation costs from 2018 headcount actions (1.1) — Disposals — Non-compensation reductions, e.g. vendor rationalisation 23.9 (1.0) 22.8 21.8 — Targeted headcount reductions — German retail merger synergies — Further non-compens
Slide 15: 2019 | On the way towards the right revenue mix
2019 | On the way towards the right revenue mix Revenue share by business, FY 2018 CIB: Origination CIB: & Advisory Equities CIB: Fixed Income 64% Stable banking businesses & Currencies 23% Market share leading revenues PCB 14% Sharpened focus CIB: GTB DWS Deutsche Bank Annual Media Conference 14 1
Slide 16: 2019 | Corporate & Investment Bank – targeting growth opportunities
2019 | Corporate & Investment Bank – targeting growth opportunities Building on core strengths Market-leading FX platform Continue to grow revenues in Global Transaction Banking and Foreign Exchange No. 1 global cash management platform Targeted hiring in FIC and debt origination businesses Leading
Slide 17: 2019 | Private & Commercial Bank – building a platform for growth
2019 | Private & Commercial Bank – building a platform for growth Building on core strengths Undisputed No. 1 in our home market with 20 million clients, Continue to grow loans and thereof >10 million digital clients deposits focused on consumer finance and ‘Mittelstand’ Focus on our franchises in I
Slide 18: 2019 | DWS – growing our Asset Management business
2019 | DWS – growing our Asset Management business Building on core strengths Strong home market position Leverage recent partnerships and top 5 in Europe and alliances to drive additional revenue growth Broad capabilities to offer clients investment solutions Launch new products focused on Active,
Slide 19: 2019 | Improving balance sheet productivity
2019 | Improving balance sheet productivity Liquidity reserves, in € bn Liquidity composition, in € bn Loan growth, in € bn Highly liquid and other securities(1) Cash and cash equivalents (7)% -8 280 5% 5% 280 31% 259 402(2) 58 259 75 381(2,3) 222 (17)% 184 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4
Slide 20: 2019 | A clear path towards our target return for shareholders
2019 | A clear path towards our target return for shareholders Post-tax RoTE, in % Includes: — Adjusted cost reductions (€ 1bn) >4% — Balance sheet and liquidity optimization (>€ 300 m) — Growth in stable businesses (including YoY loan growth in 2018 of 5%) — Tax rate normalization (to ~35%)(1) >1.0
Slide 21: 2019 | We continue to focus on our near-term targets
2019 | We continue to focus on our near-term targets 2018 2019 Post-tax return on tangible >4% equity(1) Updated Adjusted costs € 23 bn ✓ € 21.8 bn Employees(2) <93,000 ✓ <90,000 Common Equity Tier 1 capital ratio >13% ✓ >13% (1) Post-tax return on average tangible shareholders’ equity (2) Internal
Slide 22: Cautionary statements
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2018 and SEC Form 20-F are scheduled to be published on 22 March 2019. This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact