Slide 1: Deutsche Bank – 2Q2016 results
Deutsche Bank Deutsche Bank – 2Q2016 results 27 July 2016
Slide 2: 2Q2016 – Further progress on restructuring
2Q2016 – Further progress on restructuring Current macroeconomic and geo-political outlook uncertain Remain committed to substantial restructuring in 2016 Making early progress across all businesses and infrastructure areas, but more to do Continued investment in strengthening control infrastructure
Slide 3: Group financial highlights
Group financial highlights In EUR bn, unless otherwise stated 2Q2016 vs. 1H2016 vs. 2Q2016 2Q2015 1H2016 1H2015 2Q2015 1H2015 Net revenues 7.4 9.2 15.5 19.6 (20)% (21)% Provision for credit losses (0.3) (0.2) (0.6) (0.4) 72% 53% Noninterest expenses (6.7) (7.8) (13.9) (16.5) (14)% (16)% (1) therein:
Slide 4: Quarterly net income 2Q2016 vs. 2Q2015
Quarterly net income 2Q2016 vs. 2Q2015 In EUR m FX-adjusted deltas(1): Hua Xia — Revenues declined by EUR 1.7bn 818 Impairments as a result of a challenging market environment and the implementation of strategic (64) decisions — LLP increased mainly from 20 deterioration of shipping and 16 metals &
Slide 5: Net revenues development
Net revenues development In EUR m 2Q16 vs. 2Q15, 1H16 vs. 1H15, 2Q16 2Q15 1H16 1H15 in % in % Global Markets 2,420 3,344 (28)% 5,238 7,011 (25)% Corporate & Investment Bank 1,888 2,154 (12)% 3,713 4,290 (13)% (1) Private Wealth &Commercial Clients 1,855 1,948 (5)% 3,715 3,916 (5)% Postbank 903 803 1
Slide 6: Costs
Costs In EUR bn Noninterest expenses Key facts(4) Impairments/ 7.8 7.7 — Noninterest expenses in 2Q2016 were EUR 1.0bn Policyholder Benefits and Claims (1) <0.1 lower than 2Q2015 <0.1 Litigation 1.2 — Impairments / policyholder benefits and claims are up 1.3 6.7 Restructuring 0.4 by EUR 0.3bn mainly
Slide 7: Adjusted Costs
Adjusted Costs In EUR m Adjusted Costs(1) Key facts 2Q16 vs. 2Q15 FX 2Q15 — Compensation and benefits down EUR 413m driven 2Q15 1Q16 2Q16 FX(2) by lower cash bonus and retention expense Compensation and benefits 3,407 3,344 3,119 2,931 — IT cost increase of EUR 154m. Main components are higher depre
Slide 8: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves(1) In USD bn Demands Reserves 5.4 5.5 2.4 2.4 2.2 1.7 0.3 0.3 31 Mar 2016 30 Jun 2016 31 Mar 2016 30 Jun 2016 31 Mar 2016 30 Jun 2016 — Settlements and resolutions have been — Includes possibl
Slide 9: 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 up by EUR 0.8bn q-o-q — EUR 0.2bn FX effect, principally USD 0.2 43.5 strengthening 0.3 42.8 0.0 0.2 — EUR 0.2bn positive impact from equity (0.1) c
Slide 10: RWA
RWA CRD4, fully loaded, in EUR bn 10.7% CET 1 ratio, fully loaded 10.8% Events in the quarter 7 2 402 — 2Q16 CET 1 ratio of 10.8%, 15bps above 1Q2016 401 (2) (5) — RWA up by EUR 1bn, including EUR 2bn FX effect (1) — EUR 7bn higher Credit Risk RWA due to methodology changes and business growth acros
Slide 11: Leverage exposure
Leverage exposure CRD4 Leverage exposure development, in EUR bn 3.4% CRD4 Leverage ratio, fully loaded 3.4% Events in the quarter 19 1.415 1.390 5 11 — 2Q2016 leverage ratio of 3.4%, unchanged from 1Q2016 (1) (8) (2) — Leverage exposure up EUR 24bn, including FX effect of EUR 19bn — Continued NCOU d
Slide 12: EBA / ECB Stress Test
EBA / ECB Stress Test Integration of Stress Test results into SREP decision SREP Decision 2015/16 – Impact on MDA level (CET1 phase-in) Background 10.76% - current - illustrative - 0.25% Early The stress test of 2016 was launched by EBA in coordination with MDA restriction warning buffer ECB to asse
Slide 13: Robust external funding profile
Robust external funding profile As of 30 June 2016, in EUR bn Funding profile well diversified Funding cost and volume development DB issuance spread, 4 week moving average, in bps(4) 300 Secured Financing DB 5yr EUR-CDS in bps Equity, 6% (1) Funding and Vehicles, 0% Shorts, 15% 250 17 72% from most
Slide 14: Segment results
Segment results Deutsche Bank 2Q2016 results 14 Investor Relations 27 July 2016
Slide 15: Global Markets
Global Markets Income before income taxes Key features In EUR m In EUR m 2Q16 vs. 1H16 vs. 2Q16 2Q15 1H16 1H15 2Q15 1H15 1,086 1,131 (1) Net revenues 2,420 3,344 (28)% 5,238 7,011 (25)% Prov. for credit losses (39) (5) n.m. (54) (6) n.m. 394 423 Noninterest exp. (2,351) (2,231) 5% (4,736) (5,836) (1
Slide 16: Sales & Trading revenues
Sales & Trading revenues Revenues Key revenue features Debt S&T, in EUR m Debt Sales & Trading revenues — Debt Sales & Trading revenues lower y-o-y, driven by the impact of (19)% Strategy 2020 execution, including exits of high risk-weight securitised trading and Agency RMBS trading, coupled with th
Slide 17: Corporate & Investment Banking
Corporate & Investment Banking Income before income taxes Key features In EUR m In EUR m 2Q16 vs. 1H16 vs. 1,316 2Q16 2Q15 1H16 1H15 2Q15 1H15 Net revenues 1,888 2,154 (12)% 3,713 4,290 (13)% 721 747 Prov. for credit losses (115) (39) 194% (251) (89) 181% 595 432 Noninterest exp. (1,341) (1,519) (12
Slide 18: Corporate & Investment Banking revenues
Corporate & Investment Banking revenues Revenues Key revenue features Transaction Banking: In EUR m Advisory Trade Finance & Cash Management Corporates revenues down 6% Origination, Loan Products & Other y-o-y due to further deterioration in the interest rate environment, Transaction Banking continu
Slide 19: Private, Wealth & Commercial Clients
Private,Wealth & Commercial Clients Income before income taxes Key features In EUR m In EUR m 2Q16 vs. 1H16 vs. 2Q16 2Q15 1H16 1H15 2Q15 1H15 887 Net revenues 1,861 2,091 (11)% 3,597 4,183 (14)% 483 Prov. for credit losses (66) (74) (10)% (103) (154) (33)% 404 187 249 Noninterest exp. (1,608) (1,534
Slide 20: 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) 2,822 2,727 PCC revenues down 2% versus a very strong 2Q2015. 2Q2016 included a positive impact from a sale of a stake in VISA Europe 1,429 1,39
Slide 21: Deutsche Asset Management
Deutsche Asset Management Income before income taxes Key features In EUR m In EUR m 2Q16 vs. 1H16 vs. 2Q16 2Q15 1H16 1H15 2Q15 1H15 366 334 Net revenues 706 769 (8)% 1,397 1,518 (8)% Memo: Net revenues 635 768 (17)% 1,283 1,340 (4)% 265 ex-Ab b ey gross-up (1) Prov. for credit losses (0) (0) (94)% (
Slide 22: Postbank
Postbank Income before income taxes Key features In EUR m In EUR m 2Q16 vs. 1H16 vs. 2Q16 2Q15 1H16 1H15 2Q15 1H15 301 Net revenues 903 803 13% 1,764 1,660 6% 201 Prov. for credit losses (34) (26) 31% (76) (84) (9)% 179 113 122 88 Noninterest exp. (690) (688) 0% (1,387) (1,376) 1% IBIT 179 88 103% 3
Slide 23: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 2Q16 vs. 1H16 vs. 2Q16 2Q15 1H16 1H15 2Q15 1H15 Net revenues (349) 223 n.m. (333) 618 n.m. Prov. for credit losses (5) (6) (10)% (80) (35) 130% (192) Noninterest exp. (278) (1,088) (74)% (753) (1,772) (58)% (318) (533
Slide 24: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 2Q16 vs. 1H16 vs. 2Q16 2Q15 1H16 1H15 2Q15 1H15 IBIT 42 (418) n.m. 99 (6) n.m. 413 thereof (1) V&T differences 71 (156) n.m. 243 168 45% 99 57 42 FVA (2) (11) (109) (90)% (20) (108) (81)% (6) Postbank (47) (30) 57%
Slide 25: Strategy 2020 - Progress & Outlook
Strategy 2020 - Progress & Outlook Challenging revenue environment, particularly post Brexit vote 2016 remains peak restructuring year Restructuring and severances of EUR 0.3 – 0.5bn currently expected for 2H2016 Adjusted Costs for 2016 currently expected to remain flat versus 2015 FTE reductions in
Slide 26: Appendix
Appendix Deutsche Bank 2Q2016 results 26 Investor Relations 27 July 2016
Slide 27: Appendix: Table of Contents
Appendix: Table of Contents P&L details 28 Transfer of businesses from AM to GM 38 NCOU details 39 CRD4 – Leverage Exposure and Risk Weighted Assets 40 Loan book 41 Impaired loans 42 Value-at-Risk 43 Invested assets 44 Headcount 46 Deutsche Bank 2Q2016 results 27 Investor Relations 27 July 2016
Slide 28: First half net income 1H2016 vs. 1H2015
First half net income 1H2016 vs. 1H2015 In EUR m — Revenues declined significantly as FX-adjusted deltas(1): Hua Xia 1,377 Impairments a result of a challenging market environment and the implementation of strategic decisions 256 — LLP increased from specific events 37 151 in selected portfolios as
Slide 29: Net revenues
Net revenues In EUR bn EUR (1.8) bn (2) (2) 19.6 15.5 10.4 9.2 7.3 8.1 7.4 6.6 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2015 2016 2015 2016 Contribution to Group revenues ex Consolidation & Adjustments by business segment (1): GM 37% 36% 31% 23% 35% 33% 36% 34% CIB 22% 23% 27% 27% 23% 25% 22% 24% PWCC 21% 22% 19% 29
Slide 30: Provision for credit losses
Provision for credit losses In EUR m Cost of Risk(1) Core NCOU (1) (1) 564 Cost of Risk DB Group Cost of Risk Core Bank 80 0.60% 380 369 17 304 35 259 0.40% 207 362 75 5 218 484 29 151 6 334 0.20% 254 189 208 230 145 0.00% 1Q 2Q 3Q 4Q 1Q 2Q2 2Q3 1H 1H 2015 2016 2015 2016 GM 1 5 0 43 15 39 6 54 CIB 5
Slide 31: Loan exposure to 'focus industries'
Loan exposure to ‘focus industries’ Oil & Gas: ~ EUR 8bn loan exposure Loan exposure — Slightly higher drawings compared to Q1 mainly from national oil & gas companies — ~50% to IG borrowers (mainly oil majors and national oil & gas companies) — 25% to higher risk; sub-investment grade exploration &
Slide 32: Reported and adjusted costs
Reported and adjusted costs Noninterest expenses, in EUR bn Compensation and benefits Noninterest expenses excl. compensation and benefits 16.5 13.2 13.9 8.7 9.0 9.6 7.8 7.2 7.8 9.9 6.7 5.2 4.4 5.9 4.0 3.8 6.9 6.2 3.4 3.4 3.3 3.1 3.2 3.0 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2015 2016 2015 2016 Adjusted Costs (in
Slide 33: 2Q2016: IBIT detail
2Q2016: IBIT detail 2Q16 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM 28 2 (41) (134) (285) CIB 432 0 (61) (7) 0 PWCC 187 0 (69) (28) 0 Postbank 179 0 (1) (27) 0 AM 171 0 (33) (0) 0 C&A 42 (11) (1) 72 0 Core Bank 1,039 (9) (205) (125) (285) NCOU (632) 44 (1) 5
Slide 34: 2Q2015: IBIT detail
2Q2015: IBIT detail 2Q15 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM 1,086 164 (24) (268) 0 CIB 595 (1) (11) (137) 0 PWCC 483 0 (1) (20) 0 Postbank 88 0 (0) (0) 0 AM 265 0 (2) (4) 0 C&A (418) (109) (0) (0) 0 Core Bank 2,099 54 (39) (430) 0 NCOU (870) (16) (6)
Slide 35: 1H2016: IBIT detail
1H2016: IBIT detail 1H2016 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM 423 145 (131) (66) (285) CIB 747 0 (155) (7) 0 PWCC 249 0 (139) (32) 0 Postbank 301 0 (2) (31) 0 AM 334 0 (56) (1) 0 C&A 99 (20) (1) 67 0 Core Bank 2,152 125 (484) (70) (285) NCOU (1,165) (
Slide 36: 1H2015: IBIT detail
1H2015: IBIT detail 1H2015 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM 1,131 (12) (62) (1,423) 0 CIB 1,316 (1) (25) (142) 0 PWCC 887 0 (4) (23) 0 Postbank 201 0 1 (0) 0 AM 366 0 (3) (4) 0 C&A (6) (108) 0 (1) 0 Core Bank 3,896 (120) (95) (1,595) 0 NCOU (1,188)
Slide 37: Post-tax RoTE
Post-tax RoTE In EUR m, unless otherwise stated GM CIB PWCC Postbank AM NCOU C&A Group 2Q16 2Q15 2Q16 2Q15 2Q16 2Q15 2Q16 2Q15 2Q16 2Q15 2Q16 2Q15 2Q16 2Q15 2Q16 2Q15 IBIT 28 1,086 432 595 187 483 179 88 171 265 (632) (870) 42 (418) 408 1,228 Taxes (1) 10 384 149 211 65 171 62 31 59 94 (219) (308) 2
Slide 38: Transfer of businesses from Deutsche AM to GM
Transfer of businesses from Deutsche AM to GM (in EUR m) 1Q2015 2Q2015 3Q2015 4Q2015 FY2015 1Q2016 Net Revenues 92 91 65 41 289 47 Noninterest exp. 20 32 25 34 111 46 IBIT 72 60 40 7 178 1 CRD IV leverage exposure 11,348 12,007 10,242 11,937 11,937 10,656 RWA 3,475 2,906 2,166 1,731 1,731 447 Invest
Slide 39: NCOU IBIT components
NCOU IBIT components In EUR m Component FY2015 1H16 2Q2016 Comments/Outlook Portfolio revenues 509 196 104 De-risking IBIT(1) 411 (580) (457) — Net IBIT will be impacted MtM/Other (77) 20 7 by accelerated wind down Asset-driven LLPs (102) (50) (8) strategy Costs (643) (304) (175) Total 98 (717) (529
Slide 40: 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 1,390 1,415 306 306 Non-derivative trading assets 171 64 173 47 Market Risk RWA 44 64 CVA 14 Derivatives(2) 249 244 52 Lending 413 417 130 250 Reverse repo / Credit Risk RWA 248 secu
Slide 41: Loan book
Loan book In EUR bn 434 430 433 433 429 433 GM 50 50 55 58 58 61 CIB 106 103 100 97 97 97 PW&CC 160 161 163 164 162 163 DAM 0 0 0 0 0 0 PB 104 104 104 104 104 105 NCOU 13 12 11 9 8 6 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 2015 2016 Note: Loan amounts are gross of allowances for loan losses. Figur
Slide 42: Impaired loans
Impaired loans(1) Period-end, in 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 2.7 7.6 7.4 2.50% 2.5 2.2 2.1 1.6 1.3 2.00% 1.50% 6.7 1.00% 6.2 5.9 6.0 6.0 6.1 0.50% 0.00% 1Q 2Q 3Q 4Q 1Q 2Q 2015 2016 Coverage 57% 58% 6
Slide 43: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, in EUR m Average VaR Stressed VaR(1) 180 EUR 3.3 bn Sales & Trading revenues EUR 2.5 bn 160 140 120 100 80 60 40 20 46 40 38 37 37 102 111 99 98 89 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 (1) Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses a
Slide 44: Invested Assets / Client Assets – PW&CC
Invested Assets / Client Assets – PW&CC In EUR bn In EUR bn FY2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 Invested Assets 489 523 515 492 499 476 478 Assets under Administration (1) 138 155 153 149 157 154 158 Client Assets 626 678 668 642 656 630 636 Breakdown of Invested Assets 489 523 515 492
Slide 45: Invested Assets / Client Assets – AM
Invested Assets / Client Assets – AM In EUR bn FY2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 Invested Assets 691 773 755 726 744 711 719 Assets under Administration (1) 42 54 53 51 54 57 63 Client Assets 733 828 808 777 798 768 782 Breakdown of Invested Assets 691 773 755 726 744 711 719 Regional
Slide 46: Group headcount
Group headcount Full-time equivalents, at period end 30 Jun 2016 30 Jun 2015 30 Sep 2015 31 Dec 2015 31 Mar 2016 30 Jun 2016 vs. 31 Mar 2016 GM 4,891 4,947 4,915 4,783 4,671 (112) CIB 7,124 7,327 7,359 7,295 7,178 (117) PWCC 25,759 25,774 25,696 25,640 25,525 (115) Postbank 18,935 18,843 18,659 18,8
Slide 47: 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