Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2019)
34 slides from Deutsche Bank's investor day presentation, Dec 10, 2019
Slide 1: Investor Deep Dive Private Bank
Investor Deep Dive Private Bank Karl von Rohr Manfred Knof Ashok Aram Claudio de Sanctis 10 December 2019 Deutsche Bank
Slide 2: Summary
Summary FY 2018 9M 2019 Leading German and niche international retail bank with Revenues € 8.6bn € 6.3bn unique advisory capabilities coupled with a distinctive and (% of group) (34%) (35%) growing global wealth management platform Adjusted € 1.4bn adjusted cost base reduction opportunity driven by
Slide 3: Private Bank at a glance
Private Bank at a glance Global reach, ~22m ~€ 490bn ~€ 230bn >60 Top 5 ~€ 60bn Clients Assets under Loan Countries actively Eurozone countries Net liquidity deep roots in worldwide Management book served by GDP covered provider to group Europe Private Bank Private & Commercial Wealth Germany Busine
Slide 4: Significant progress towards our near-term objectives
Significant progress towards our near-term objectives 2016 2018 08th July 2019 2019 2020 Achievements Near-term objectives Track record of progress Reshaped operating model Accelerate German integration to ~€ 0.2bn cost synergies in 2019, deliver ~60%(1) of integration related through branch reduc
Slide 5: Our path to improved profitability
Our path to improved profitability Post-tax return on tangible equity(1), in % Cost/ income ~90% ~70% ratio Target: 2019–2022 € 1.4bn adj. cost reduction (2)% (2)-(3)% 10-11% 9% Target: 2019–2022 revenue CAGR 2%(3) 2-3% 4% 9M 2019 Revenue Cost Provision for Other(4) 2022 ex items(2) drivers drivers
Slide 6: € 1.4bn cost reduction program planned (2019 – 2022)
€ 1.4bn cost reduction program planned (2019 – 2022) Adjusted costs, in € bn Cost reduction as shown on New split of 8 July 2019 cost reduction Key measures — Reduction of distribution channel costs Private Bank — Building highly efficient end-to-end retail IT and operations platform Germany 0.6 1.0
Slide 7: Private Bank Germany
Private Bank Germany Manfred Knof
Slide 8: Business overview
Private Bank Germany Business overview Private Bank Germany’s leading retail bank ready to drive scale benefits from a single platform Germany Clients Products Distribution channels Revenues by client segment, 9M 2019 Client Business volume(1), Sep 2019 New business loan volume, 9M 2019 Investment B
Slide 9: Our competitive advantage
Private Bank Germany Our competitive advantage German Banking Market: Large, low return, low risk Private Bank Germany: Ready to deliver benefits of scale — Leveraging ~19m clients high quality clients - ~€ 51bn(1) Europe’s largest revenue pool delinquency ratio ~0.2%(4) — Two strong and complementa
Slide 10: Our path to improve shareholder returns
Private Bank Germany Our path to improve shareholder returns In € bn Reducing costs Stabilizing revenues Postbank integration Other measures +0% CAGR 0.2 0.2 1.0 0.2(2) 0.5(1) 0.1 0.3 0.5 0.4 2019 2020 2021-2022 2020-2022 Target 2019 Interest rate Operating Target 2022 headwinds growth 2022 Planned
Slide 11: Costs: Technology driven efficiencies are key
Private Bank Germany Costs: Technology driven efficiencies are key In € bn Adjusted costs(1) Driver Measures Impact(2) Indicative — Create one pure play end-to-end retail platform by Operations 2022 and Retail IT € ~0.4bn — Comprehensive recalibration of the Operations model delivering ~30% cost red
Slide 12: Revenues: Operating growth offsets headwinds
Private Bank Germany Revenues: Operating growth offsets headwinds In € bn Revenues(1) Driver Measures Indicative — Grow lending volume ~5% annual per year focused on Loans mortgages and consumer finance 0% CAGR Advisory — Convert >€ 10bn of deposits into commission and fee products 5.4 business — Gr
Slide 13: Private & Commercial Business International
Private & Commercial Business International Ashok Aram
Slide 14: Business overview
Private & Commercial Business International Business overview Private & Commercial A leading international advisory bank in major Eurozone markets, Business International with strong growth potential in India Regions Products Revenue distribution, 9M 2019 Revenue distribution, 9M 2019 Belgium Consum
Slide 15: Our competitive advantage
Private & Commercial Business International Our competitive advantage Strong brand recognition with target client groups #1 best international bank(1) #1 multichannel bank(2) Local branch network in affluent regions (e.g. Lombardia, Northern Spain, Belgium) #1 in service quality(3) Market leading cl
Slide 16: Revenues: our growth drivers
Private & Commercial Business International Revenues: our growth drivers In € bn Revenues Driver Measures Indicative Investment — Grow assets under management (4% CAGR(2)) leveraging on products our unique digital advisory tool and DB research capabilities 3% CAGR — Continue shift of consumer financ
Slide 17: Costs: investments paying off
Private & Commercial Business International Costs: investments paying off In € bn Adjusted costs(1) Driver Measures Impact(3) Indicative — Normalized investments ((12)% CAGR(2)) after Investments completion of platform implementation, especially in Italy (go-live in Q2 2020) € 0.07bn — Optimization
Slide 18: Wealth Management
Wealth Management Claudio de Sanctis
Slide 19: A unique client proposition
Wealth Management A unique client proposition Entrepreneurial families Sophisticated U/HNW Wealthy German clients with European connectivity investors +22% forecast growth of ~5% growth rate p.a. in Market Fastest growing client segment at opportunity global population worth Germany’s millionaires a
Slide 20: Business overview
Wealth Management Business overview Leading wealth manager focused on serving wealthy entrepreneurial Wealth Management families with sophisticated international needs Clients(1) Regions Products Client business volume(2), Sep 2019 Revenues ex specific items, 9M 2019 Revenues ex specific items, 9M 2
Slide 21: Holistic coverage of entrepreneurs and families
Wealth Management Holistic coverage of entrepreneurs and families Client example Bespoke One Bank coverage Corporate Investment Bank Bank European billionaire Cash Equity entrepreneurial family clearing issuance Looking for access to expert Liquidity Structured advice on: mgmt. lending solutions sol
Slide 22: Monetizing investments to drive growth
Wealth Management Monetizing investments to drive growth Coverage hiring Net new assets(3) Revenues Adjusted costs 9M 2019, Relationship Manager Ex specific items Ex transformation charges growth, in %(1) Δ € 9bn 5% 2% +8% ~0%(2) DB WM øPeers FY 2018 9M 2019 Q3 2018 Q3 2019 9M 2018 9M 2019 — Quality
Slide 23: Revenue growth in target segments
Wealth Management Revenue growth in target segments In € bn Revenues Driver Measures Indicative Strategic — Monetization of Relationship/Investment manager hires in 2019 growth (~90 Relationship/Investment Managers) initiatives 6% CAGR DB — Systematic coverage of clients across Wealth Management, 2.
Slide 24: Business to self fund growth
Wealth Management Business to self fund growth In € bn Adjusted costs Driver Measures Impact(1) Indicative — Focus product offering Focus — Optimize less profitable relationships — Lean organization with local empowerment 0.0 (0.1) — Consolidation of office space (~10% reduction) Footprint — Head of
Slide 25: Key take-aways
Key take-aways Well on track to achieve near-term targets Clear growth and efficiency priorities for all businesses Targeted € 1.4bn of adjusted cost reduction by 2022 Operating revenue growth intended to offset interest rate headwinds Improve our return of tangible equity to targeted 10 – 11% in 20
Slide 26: Appendix
Deutsche Bank Appendix
Slide 27: Financial overview
Financial overview In € bn 2017 2018 9M 2018 9M 2019 Revenues 8.7 8.6 6.6 6.3 Revenues ex specific items(1) 8.3 8.3 6.3 6.2 Non interest expenses (8.1) (7.6) (5.6) (6.0) Adjusted costs (7.7) (7.6) (5.7) (5.5) Adj. costs ex transformation charges (7.7) (7.6) (5.7) (5.5) Profit before tax 0.3 0.7 0.7
Slide 28: Overview of Corporate Bank / Private Bank refinements
Overview of Corporate Bank / Private Bank refinements In € m FY 2018 9M 2019 Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Net revenues 5,193 7,467 8,712 2,187 (120) 23,438 1,878 25,316 3,920 5,443 6,311 1,662 95 17,431 385 17,816 CB / PB refinements 71 - (71) - - - - - 52
Slide 29: Speaker biography
Speaker biography In July 2019 Karl von Rohr took on responsibility for the Private Bank and Asset Management (DWS) as well as retaining regional responsibility for Germany. In addition he was responsible for Human Resources until November 1, 2019. Temporarily, he continues to be responsible for Leg
Slide 30: Speaker biography
Speaker biography Manfred Knof joined Deutsche Bank in August 2019 as Head of the Private Bank Germany and a member of the Group Management Committee. He has about 25 years of experience in the financial-services industry. Before joining Deutsche Bank, he was CEO of Allianz’s German business where h
Slide 31: Speaker biography
Speaker biography In November 2018 Ashok Aram additionally took over the responsibility for the Private & Commercial Business International. Since July 2019 he is a member of the Group Management Committee of Deutsche Bank. Became CEO for Europe, Middle East and Africa in November 2015. Joined Deuts
Slide 32: Speaker biography
Speaker biography Since November 2019 Claudio de Sanctis is Global Head of Wealth Management and a member of the Group Management Committee of Deutsche Bank. Additionally he is responsible for Switzerland as Chief Country Officer. Joined Deutsche Bank in December 2018 as Head of Deutsche Bank Wealth
Slide 33: Private Bank organisational structure
Private Bank organisational structure K. von Rohr Head of Private Bank Head of Head of Head of Head of Chief CFO/Head Chief Chief Head of Human Private Bank PCB (1) Wealth Digital of Business Risk Operating Strategy Resources/ Germany International Management Officer Insights Officer Officer DCO(2)
Slide 34: 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