Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2019)
14 slides from Deutsche Bank's investor day presentation, Dec 10, 2019
Slide 1: Investor Deep Dive Capital Release Unit
Investor Deep Dive Capital Release Unit Louise Kitchen 10 December 2019 Deutsche Bank
Slide 2: Summary
Summary Q3 2019 Revenues € (0.2)bn Allow group to fund transformation through existing capital resources Adjusted costs(1) € 0.6bn Execute on cost reduction program Leverage exposure € 177bn Execute on objectives while maintaining core client franchise and relationships Risk weighted € 56bn assets (
Slide 3: Capital Release Unit framework established
Capital Release Unit framework established Phase 1 Phase 2 Phase 3 (Set-Up) (Preparation) (Execution) — Established new division with — Set up standardized utility — Execute defined asset reduction team of wind-down experts functions (cross asset novation programs from 2020 teams) — Established risk
Slide 4: Asset composition
Asset composition Q2 2019, in € bn Weighted average life (in years) — Cash equities 65 250 Equities — Equity flow derivatives 2 — Equity exotic derivatives — Equity platforms 76 Finance Prime Operational Global Prime Finance and Electronic Equities platform Risk 33 1 — 61 Rates — Interest rate swaps
Slide 5: Asset Reduction on track
Asset Reduction on track In € bn Capital Release Unit strategic plan Risk weighted assets — Derivatives (by type, client, term) 72 65 — Credit assets (9) 56 52 — Platforms (e.g. Prime Finance, Portfolio Electronic Equities, warrants) 38 segmentation 32 — Joint ventures & equity stakes — Cash assets
Slide 6: Global Prime Finance transition to BNP Paribas
Global Prime Finance transition to BNP Paribas In € bn, unless otherwise stated Rationale Impact Process — Realize the value embedded in 2.1 — Transaction closed on 29th Deutsche Bank’s Prime Finance Risk November 2019 and Electronic Equities weighted ~0.5 platform: assets(1) — Deutsche Bank will co
Slide 7: Revenue Drivers
Revenue Drivers In € m Q3 2019 Expected Quarterly Revenues Description revenue Outlook (2020 – 2021) 2020 2021 – 2022 — Positive revenues from reimbursement from BNP Paribas — Income from business — Small income from loan portfolios retained for transition/ — Funding costs to decline as assets sale
Slide 8: Cost drivers
Cost drivers Adjusted costs ex transformation charges, in € bn 3.3 0.6 2.6 0.3 0.5 Cost reduction through transfer of Global Prime Finance and Electronic Equities to BNP Paribas 0.7 0.6 0.3 Reduction in Sales, Trading & Research staff following business exits 0.3 0.5 Reduction of Single Resolution F
Slide 9: Capital Release Unit wind-down broadly self-funding
Capital Release Unit wind-down broadly self-funding Estimated Capital Release Unit impact on group CET1 ratio, in basis points Net impact on ~20 ~0 ~(10) ~(20) group CET1 ratio Increase in Group CET1 of ~160bps due Risk weighted to reduction of risk ~85 asset reduction weighted assets ~50 ~20 ~5 ~(3
Slide 10: Key take-aways
Key take-aways Asset reduction framework in place for controlled, cost-effective release of capital and de-leveraging of the balance sheet Dedicated management team focused on wind-down mandate, notably simplification and expense elimination Declining loss profile and resource reductions support imp
Slide 11: Appendix
Deutsche Bank Appendix
Slide 12: Speaker biography
Speaker biography Louise leads the Capital Release Group. Louise has over twenty five years experience in the markets joining Deutsche Bank in 2005. Prior to 2005, Louise worked in Trading, Sales and Structuring roles at UBS and a number of companies in the energy sector. Since joining the bank, Lou
Slide 13: Capital Release Unit organisational structure
Capital Release Unit organisational structure Frank Kuhnke Management Board Member for the Capital Release Unit Head of Global Prime Finance Head of Capital Release Group Transition Unit Louise Kitchen 12 Investor Deep Dive, 10 December 2019
Slide 14: Cautionary statements
Cautionary statements Non-IFRS Financial Measures This document contains non-IFRS financial measures. For a reconciliation to directly comparable figures under IFRS, to the extent not provided herein, please refer to the Financial Data Supplement which can be downloaded from www.db.com/ir. Forward-L