Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2024 Earnings Presentation
45 slides from Deutsche Bank's earnings presentation, Apr 25, 2024
Slide 1: Q1 2024 results
Deutsche Bank Investor Relations Q1 2024 results April 25, 2024 Deutsche Bank Investor Relations
Slide 2: Disciplined execution of management agenda
Disciplined execution of management agenda Q1 2024 Strong franchise momentum in operating businesses € 7.8bn Revenues 11% year-on-year growth in commissions and fee income, and resilient NII, reflecting the benefit of complementary business mix € 5.0bn Adjusted costs1 Adjusted costs of € 5.0bn
Slide 3: Delivering against key objectives
Delivering against key objectives In € bn, unless stated otherwise Improving pre-provision profit1 Higher net revenues Lower adjusted costs Year-on-year By division2 Year-on-year Quarter-on-quarter +14% +11% Group 7.7 +1% 7.8 6.0% (6)% (5)% CAGR, Q1 2024 LTM 2.5 7.7 +3% 7.9 vs. FY 20213 2.2 5.4 5.3
Slide 4: Notable franchise achievements driving revenue momentum
Notable franchise achievements driving revenue momentum Q1 2024 Corporate Bank Investment Bank ~5% increase year on year in incremental deals won +70bps O&A market share gain in the growing fee pool with multinational corporate clients in Q1 vs FY 2023; up to 7th rank from 11th respectively1 A
Slide 5: Strong foundation for strategic execution
Strong foundation for strategic execution Revenue growth Efficiency measures Capital efficiency 5.5-6.5% € 2.5bn € 25-30bn 2 Revenue CAGR 2021-2025 targeted Operational efficiencies targeted RWA reductions targeted 6.0% revenue CAGR1 in Q1 2024 LTM vs. Ongoing progress on € 2.5bn target in FY 2021,
Slide 6: Global Hausbank strategy delivering on commitments
Global Hausbank strategy delivering on commitments Continued revenue growth Four well-balanced businesses demonstrating ability to grow revenues and gain market share Capitalizing on recent franchise investments via key business wins, to provide clients with strong European alternative Improving ope
Slide 7: Group financials
Group financials Deutsche Bank Q1 2024 results 6 Investor Relations April 25, 2024
Slide 8: Key performance indicators
Key performance indicators In % Revenue CAGR2 Q1 2024 LTM vs FY 2021 CIR development 75 75 Sustained revenue growth momentum with 68 Group CAGR in line with updated target of 5.5-6.5%1 19.0 6.6 6.0 (0.5) Improvement in cost/income ratio (CIR) and (5.0) return on tangible equity3 (RoTE) vs FY 2023 CB
Slide 9: Q1 2024 highlights
Q1 2024 highlights In € bn, unless stated otherwise Financial results Divisional revenues Key highlights Δ vs. Δ vs. Δ vs. Q1 2024 +1% +1% Q1 2023 Q4 2023 Q1 2023 Statement of income Revenues slightly up year on year Revenues 7.8 1% 17% 7.8 driven by growth in Investment 7.7 Revenues ex-specific i
Slide 10: Net interest margin (NIM) / Net interest income (NII)
Net interest margin (NIM) / Net interest income (NII) In € bn, unless stated otherwise NIM / NII development of key banking book segments Group NIM / NII development 1.5% 1.4% Corporate Bank 4.1% 4.2% 3.9% 4.1% 4.2% 1.4% 1.3% 1.3% 1.3 1.3 1.2 1.3 1.3 Group NII 3.4 3.6 3.3 3.2 3.1 Thereof: Q1 2023 Q2
Slide 11: Adjusted costs – Q1 2024 (YoY)
Adjusted costs – Q1 2024 (YoY) In € bn, unless stated otherwise Key highlights Q1 2023 ex- 4,895 bank levies Adjusted costs in line with the run-rate guidance of around FX impact € 5bn per quarter; excluding bank levies adjusted costs Compensation and benefits1 (1) 163 increased by 3% year on year
Slide 12: Provision for credit losses
Provision for credit losses In € m, unless stated otherwise Key highlights Stage 1+2 Stage 3 In bps of average loans annualized1 30 33 20 41 37 Q1 2024 provisions reduced quarter on quarter benefiting from moderate Stage 1+2 releases, driven 488 439 30 by improved macroeconomic forecasts and model
Slide 13: Capital metrics
Capital metrics Movements in basis points (bps), unless stated otherwise, period end CET1 ratio Leverage ratio MREL/TLAC, in € bn 13.7% 1 4.5% Surplus above requirements 4.5% 13.4% (1) (1) (5) (12) 123 (20) Senior preferred1 12 16 26 Senior non- 45 preferred Q4 2023 FX effect RWA Capital Q1 2024 Q4
Slide 14: Segment results
Segment results Deutsche Bank Q1 2024 results 13 Investor Relations April 25, 2024
Slide 15: Corporate Bank
Corporate Bank In € m, unless stated otherwise Financial results Revenue performance Key highlights Δ vs. Δ vs. Δ vs. Q1 Q1 2024 Q1 2023 Q4 2023 2023 Corporate Treasury Services Statement of income Revenues essentially flat sequentially 1,070 (10)% (10)% Revenues 1,878 (5)% (2)% Slight reduction
Slide 16: Investment Bank
Investment Bank In € m, unless stated otherwise Financial results Revenue performance Key highlights Δ vs. Δ vs. Δ vs. Q1 Q1 2024 Q1 2023 Q4 2023 2023 Higher revenues driven by material recovery Fixed Income & Currencies in O&A, with ongoing strength in FIC Statement of income 1,713 805 2,518 7% 7
Slide 17: Private Bank
Private Bank In € m, unless stated otherwise Financial results Revenue and AuM performance Key highlights Δ vs. Δ vs. Revenues Δ vs. Q1 Q1 2024 Q1 2023 Q4 2023 2023 Revenues essentially flat both sequentially Private Personal Banking Banking Statement of income and year on year with higher investm
Slide 18: Asset Management
Asset Management In € m, unless stated otherwise Financial results Revenue and AuM performance Key highlights Δ vs. Δ vs. Revenues Δ vs. Q1 Q1 2024 Q1 2023 Q4 2023 2023 trans. Mgmt. Other fees fees Statement of income 592 4% Revenues 617 5% 6% Perf. & Revenues ex-specific items1 617 5% 6% 17 56% A
Slide 19: Corporate & Other
Corporate & Other In € m, unless stated otherwise Financial results Profit (loss) before tax Key highlights Δ vs. Δ vs. Abs. Δ vs. Q1 2024 Q1 2023 Q4 2023 Q1 2023 Statement of income Funding & liquidity (39) 67 Revenues (140) n.m. 116% Loss before tax of € 302m, compared to a loss before tax of €
Slide 20: Outlook
Outlook Strong franchise momentum, with businesses positioned for further growth Reconfirm guidance for forward run-rate of adjusted costs of around € 5bn for subsequent quarters Full-year guidance for provision for credit losses unchanged at the higher end of the range, with solid portfolio quality
Slide 21: Appendix
Appendix Deutsche Bank Q1 2024 results 20 Investor Relations April 25, 2024
Slide 22: 2025 financial targets and capital objectives
2025 financial targets and capital objectives Financial targets Capital objectives > 10% 5.5-6.5% < 62.5% ~ 13% 50% Post-tax RoTE Revenue CAGR Cost/income ratio CET1 ratio Total payout ratio in 2025 2021-2025 in 2025 from 2025 Well-positioned to Increased revenue Reiterate CIR target, Aim to operate
Slide 23: Committed to increasing shareholder distributions
Committed to increasing shareholder distributions Total payout1 Payout trajectory details Share buybacks Executed in FY, in € m Strong organic capital generation, with € 1.4bn of net income in Q1 2024, supporting shareholder distributions as potential +50% p.a. well as business growth Upside 450 300
Slide 24: Sustainability
Sustainability Q1 2024 highlights Recent achievements Sustainable Finance1 volumes Increased Sustainable Finance volumes by € 21bn to € 300bn1 (cumulative since 2020) Participated in Automotive Cells Company’s € 4.4bn non-recourse project financing, enabling the development of three gigafactorie
Slide 25: Definition of certain financial measures
Definition of certain financial measures Revenues Revenues excluding specific items are calculated by adjusting net revenues under IFRS for specific revenue items which generally fall outside the usual nature or scope of the business and are likely to distort an accurate assessment of the divisional
Slide 26: Specific revenue items and adjusted costs – Q1 2024
Specific revenue items and adjusted costs – Q1 2024 In € m Q1 2024 Q1 2023 Q4 2023 CB IB PB AM C&O Group CB IB PB AM C&O Group CB IB PB AM C&O Group Revenues 1,878 3,047 2,378 617 (140) 7,779 1,973 2,691 2,438 589 (10) 7,680 1,911 1,837 2,395 580 (65) 6,658 revenue items Specific DVA - IB Other / Le
Slide 27: Pre-provision profit, CAGR and operating leverage
Pre-provision profit, CAGR and operating leverage In € m, unless stated otherwise CAGR2 FY 2021 – Q1 2024 vs FY 2021 Q1 2024 LTM Q1 2023 Q1 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2024 LTM Q1 2023 Net revenues Corporate Bank 5,153 1,943 1,889 1,911 1,878 7,622 19.0% 1,973 1,878 (5)% Investment Bank
Slide 28: Indicative divisional currency mix
Indicative divisional currency mix Q1 2024 Net revenues Noninterest expenses 8% 4% 4% 14% 10% 19% 18% 16% 17% 0% 5% 22% 1% 5% 24% 27% 13% 17% 28% 16% 0% 32% 34% 16% 15% 1% 5% 17% 1% 87% 84% 69% 39% 56% 57% 57% 55% 47% 49% 13% CB IB PB AM Group CB IB PB AM Group EUR GBP USD Other1 Notes: Classificati
Slide 29: Net interest income (NII) sensitivity
Net interest income (NII) sensitivity Hypothetical +/-25bps shift in yield curve, in € m Net interest income (NII) sensitivity1 +25bps shift in yield curve -25bps shift in yield curve ~15 ~110 ~60 ~(15) ~(55) ~(110) 2024 2025 2026 Breakdown of sensitivity by currency for +25bps shift in yield curve
Slide 30: Loan and deposit development
Loan and deposit development In € bn, unless stated otherwise; loan-to-deposit ratio 76% Loan development1,2 Key highlights QoQ YoY 488 482 485 479 480 (0)% (2)% Lending remained essentially flat during the quarter adjusted for FX: Investment Bank 103 103 103 101 103 0% (1)% Macroeconomic enviro
Slide 31: Loan book composition
Loan book composition Q1 2024, IFRS loans: € 480bn1 Key highlights Other IB3 Other2 0% Leveraged Debt Capital Markets 10% Asset Backed Securities 1% 54% of loan portfolio in Private Bank, consisting of retail German Mortgages 6% mortgages mainly in Personal Banking (Germany) and 32% collateralized
Slide 32: Provision for credit losses and stage 3 loans
Provision for credit losses and stage 3 loans Provision for credit losses, in € m Stage 3 at amortized cost, in € bn Private Bank Corporate Bank Investment Bank PB (ex-POCI) CB (ex-POCI) IB (ex-POCI POCI 488 439 Group stage 3 2.7% 2.7% 2.6% 2.8% 3.1% 401 loans at 372 amortized 186 14.8 41 150 cost %
Slide 33: Commercial Real Estate (CRE) 1/2
Commercial Real Estate (CRE) 1 / 2 CRE non-recourse portfolio: € 38bn € 31bn in scope of severe stress test2 Non-recourse € 38bn – 8% of total loans1 By region By region3 € 7bn deemed as lower risk, includes data centers APAC EU and municipal social housing 6% 18% CRE higher risk loans € 31bn
Slide 34: Commercial Real Estate (CRE) 2/2
Commercial Real Estate (CRE) 2 / 2 US CRE in scope of severe stress test1: € 17bn US CRE loan risk management US CRE CLPs By types Office: € 7bn Modified loans, in € bn CLPs per quarter, in € m 10 123 121 Other Other NY Office 19% 28% 30% Miami 44% 3% 74 Philadelphia 3% 66 5% 4.8% 5% Boston CLP impa
Slide 35: Level 3 assets and liabilities
Level 3 assets and liabilities As of March 31, 2024, in € bn Assets: € 24bn Liabilities: € 11bn Key highlights Other Other 2 0 Derivative Liabilities Derivative Level 3 is an indicator of valuation uncertainty and Debt Assets Debt Securities 8 4 not of asset quality securities 4 The Group classi
Slide 36: Leverage exposure and risk-weighted assets
Leverage exposure and risk-weighted assets CRD4, in € bn, period end Leverage exposure Risk-weighted assets 355 355 57 Operational risk RWA 57 1,240 1,254 Market risk RWA Trading assets 122 133 27 19 Credit valuation 5 20 adjustments Derivatives1 131 136 Lending 466 250 468 148 Lending commitments2
Slide 37: Litigation update
Litigation update In € bn, period end Litigation provisions Key highlights 1.2 1.5 1.6 1.3 1.3 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Litigation provisions increased by € 0.1bn quarter on quarter Contingent liabilities Contingent liabilities decreased by € 0.3bn quarter on quarter; contingent l
Slide 38: Group Trading Book Value-at-Risk (VaR) and stressed VaR
Group Trading Book Value-at-Risk (VaR) and stressed Value-at-Risk (sVaR) In € m, 99% confidence level, as of March 31, 2024 Trading P&L1, VaR sVaR 400 160 300 124 174 162 200 120 121 100 80 0 44 44 34 34 -100 40 -200 0 -300 -400 (40) -500 (80) Q2 2023 Q3 2023 Q4 20232 Q1 2024 -600 1-
Slide 39: Investment Bank: Fixed Income & Currencies
Investment Bank: Fixed Income & Currencies Net revenues, in € bn, unless stated otherwise Top 3 in Fixed Income Financing business globally1 The business provides lending, structuring, underwriting, syndication and securitization of a range of products for clients, predominantly on a collateralize
Slide 40: Private Bank: new client segments
Private Bank: new client segments Q1 2024, unless stated otherwise Revenues by client segment Private Bank € 2.4bn WM & Private Personal Banking € 606bn 1 26k ~ 2 key metrics Revenues Banking 44% 56% AuM FTE >30% of DB Group Personal Banking Wealth Management & Private Banking Focus on retail and
Slide 41: Assets under management – Private Bank
Assets under management – Private Bank In € bn, unless stated otherwise AuM1,2,3 – by business unit and product group +9% +5% 565 568 579 606 556 93 94 97 102 102 114 113 115 112 116 56 58 62 63 Inv. Prod. 52 350 358 356 366 388 298 302 298 304 325 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 PeB - Depos
Slide 42: Assets under management – Asset Management
Assets under management – Asset Management In € bn, unless stated otherwise AuM development Quarterly mgmt. 27.7 Year-on-year 26.0 26.2 Quarter-on-quarter 26.0 fee margin, in bps 941 941 0 1 896 30 68 7 8 841 2 30 Q1 2023 Net Flows FX Market Other Q1 2024 Q4 2023 Net Flows FX Market Other Q1 2024 Au
Slide 43: Footnotes 1 / 2
Footnotes 1 / 2 Slide 1 – Disciplined execution of management agenda Slide 10 – Adjusted costs – Q1 2024 (YoY) 1. Defined on slide 24 and detailed on slide 25 1. Excludes severance of € 23m in Q1 2023, € 94m in Q1 2024 as this is excluded from adjusted costs 2. Throughout this presentation post-tax
Slide 44: Footnotes 2 / 2
Footnotes 2 / 2 Slide 21 – 2025 financial targets and capital objectives Slides 32 – Commercial Real Estate (CRE) 1/2 1. € 8bn anticipated cumulative payout in respect of FY 2021-2025 (including distributions in respect of 2025, payable in 1. Based on Deutsche Bank’s definition of non-recourse CRE l
Slide 45: Cautionary statements
Cautionary statements Forward-looking 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