Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (May 2018)
27 slides from Deutsche Bank's debt investor presentation, May 2, 2018
Slide 1: Q1 2018 Fixed Income Investor Conference Call
Deutsche Bank Q1 2018 Fixed Income Investor Conference Call James von Moltke, Chief Financial Officer Dixit Joshi, Group Treasurer 2 May 2018
Slide 2: Overview of strategic adjustments
Overview of strategic adjustments Key management objectives Specific actions — Reshape CIB — Align Corporate Finance with industries and segments reflecting strengths in German and — Shift the bank to a more stable revenue European economies as well as leading and earnings profile financing and unde
Slide 3: Agenda
Agenda 1 Q1 2018 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank Q1 2018 Fixed Income Investor Call 2 Investor Relations 2 May 2018
Slide 4: Q1 2018 summary
Q1 2018 summary Successful execution of key strategic priorities, including the IPO of DWS and the agreements to sell our retail operations in Portugal and Poland German retail bank integration is progressing on schedule; capital waiver confirmed by the ECB and legal merger on track for Q2 2018 Time
Slide 5: Group financial summary
Group financial summary € bn, unless otherwise stated Q1 2018 vs. Q1 2018 vs. Q1 2018 Q1 2017 Q4 2017 Q1 2017 Q4 2017 Net revenues 7.0 7.3 (5)% 5.7 22% Provision for credit losses (0.1) (0.1) (34)% (0.1) (32)% Noninterest expenses (6.5) (6.3) 2% (7.0) (8)% Profit & Loss of which : Adjusted costs (6.
Slide 6: Rolling last 12 months noninterest expenses
Rolling last 12 months noninterest expenses € bn Total costs: € (13.8)bn, (36)% Adjusted costs: € (2.5)bn, (10)% 38.7 37.2 36.1 Non-operating costs(1) 12.2 11.0 10.4 29.4 29.4 28.6 27.6 26.7 4.1 4.7 4.2 24.7 24.8 3.6 3.0 0.8 0.9 Adjusted costs(2) 26.5 26.2 25.7 25.4 24.7 24.4 24.0 23.7 23.9 23.9 Q4
Slide 7: Adjusted costs
Adjusted costs(1) € m, unless stated otherwise Q1 2017 YoY drivers (ex FX) Q1 2018 YoY ex FX(2) — Adjusted costs run rate in Q1 2018 on-track to reach Compensation and benefits(3) 2,960 2,979 (1)% € 23bn expectation, adjusting for the timing of the bank levies IT costs 1,022 904 13% — Compensation a
Slide 8: Agenda
Agenda 1 Q1 2018 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank Q1 2018 Fixed Income Investor Call 7 Investor Relations 2 May 2018
Slide 9: Common Equity Tier 1 Capital and Risk-weighted assets
Common Equity Tier 1 Capital and Risk-weighted assets CRD4, fully loaded 14.0% CET1 ratio, fully loaded 13.4% — Q1 2018 CET1 capital down by € (0.7)bn on an FX neutral basis CET1, € bn — € (0.4)bn from ECB mandated deduction of irrevocable payment commitments to Single 48.3 0.6 Resolution Fund/Depos
Slide 10: Leverage
Leverage CRD4, fully loaded, unless otherwise stated 3.8% Leverage ratio, fully loaded 3.7% — Leverage exposure up € 14bn incl. € (13)bn FX 4.1% Leverage ratio, phase-in 4.0% benefit. FX neutral exposure increase of € 27bn Leverage exposure, € bn — Pending settlements increased € 33bn reflecting 33
Slide 11: Liquidity
Liquidity Liquidity Coverage Ratio(1) (LCR) 148% 147% — LCR up by 7ppts over the quarter to 147%, a 144% 141% 140% € 84bn € 84bn surplus versus the required 100% level 128% above 100% — The increase in LCR QoQ is driven by lower 119% require projected net cash outflows as a result of the -ment reduc
Slide 12: External funding profile
External funding profile As of 31 March 2018, € bn Financing Equity, Secured funding and Vehicles 0%, 6%, € 63bn(1) shorts, € 2bn 18%, € 176bn(4) — Total funding sources(5) decreased by € 12bn to € 1,002bn 73% from over the quarter Unsecured most stable wholesale, Capital funding — The decrease was
Slide 13: 2018 funding plan and contractual maturities
2018 funding plan and contractual maturities € bn Funding Plan 2018 Maturity profile Covered Bonds(1) Senior Structured / Preferred(1) Senior Plain Vanilla(2) Capital instruments(2) Expected contractual maturities(3) 25-30 2-3 23 24 21 21 2 10-12 12-13 4 17 17 4 3 3 4 11 5 11 1 4 1 3 12-13 15 14 4 7
Slide 14: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) 2019 Transitional TLAC requirements(1) and availability as of Q1 2018 € 124bn Plain-vanilla 62bn senior debt(2) € 85bn TLAC € 73bn G-SIB buffer adjust- 2.0% 0.6bn ments(3) Capital Conservation buffer 2.5% Additional 6.0% 15bn AT1/T2(4) DB has TLAC of 35% TLAC 8.0
Slide 15: Current Ratings
Current Ratings Counterparty obligations (e.g. ICR(2): A- Deposits / Structured Notes / A3(cr)(1)/neg A-(4) A(high) /CWN(3) Derivatives / Swaps) Senior Preferred(5) A3/neg A-/CWN(3) A- - Long- term unse- cured Non-preferred Baa2/neg BBB- BBB+ A (low) Tier 2 Ba2 BB+ BBB - Legacy T1 B1 B+ BB - AT1 B1
Slide 16: Outlook
Outlook Year-to-date issuance covers close to 50% of 2018 anticipated funding requirements Planned leverage exposure reductions allow for optimization of funding profile Large TLAC surplus provides flexibility in the timing of future issuance Continue to manage risk and balance sheet conservatively
Slide 17: Agenda
Agenda 1 Q1 2018 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank Q1 2018 Fixed Income Investor Call 16 Investor Relations 2 May 2018
Slide 18: AT1 and Trust Preferred Securities instruments outstanding
AT1 and Trust Preferred Securities instruments outstanding(1) Original Regulatory Capital Nominal Next call Subsequent Issuer ISIN Coupon issuance treatment(1) recognition(1) outstanding date call period date DB Contingent Capital Trust II AT1 / Tier 2 100% / 100% US25153X2080 6.550% USD 800mn 23-Ma
Slide 19: Total capital requirements
Total capital requirements 31 March 2018 (phase-in) Fully loaded(1) CET1 AT1 Tier 2 X.X Contribution from legacy Tier 1 instruments(2) 17.5% 17.5% 1.8% 2.9% 1.1% 15.3% 2.4% 1.1% 14.2% 1.3% 2.0% 2.0% 1.5% 1.5% 13.4% 13.4% 11.8% 10.7% Reported 2018 SREP Reported Illustrative 2019 (31 Mar 2018) Require
Slide 20: Funding sources to TLAC reconciliation
Funding sources to TLAC reconciliation As of 31 March 2018, € bn 200.7 Covered bonds 22.3 (22.3) Structured 25.6 (25.6) notes (10.5) (2.3) (17.3) +0.6 124.4 Plain-vanilla 74.6 Plain-vanilla senior debt senior debt 61.7 TLAC AT1/T2 16.0 0.6 adjustments 14.8 AT1/T2(5) Shareholder’s 63.4 Equity 47.3 CE
Slide 21: Rating landscape – senior unsecured and short-term ratings
Rating landscape – senior unsecured and short-term ratings Moody‘s S&P Operating company / Preferred Senior(1) Holding company / Non-preferred Senior(2) Rating scale EU Peers Swiss Peers US Peers Short-term Long-term BAR BNP HSBC SOC CS UBS BoA Citi GS JPM MS P/A-1 Aa2/AA P/A-1 Aa3/AA- P/A-1 A1/A+ P
Slide 22: Balance sheet overview
Balance sheet overview As of 31 March 2018, € bn Assets (after netting) Liabilities & equity (after netting) Comments 1,088 1,088 — Net balance sheet of € 1,088bn represents the 38 Unsecured Wholesale(7) funding required after recognizing (i) legal Cash, central bank 224 netting agreements, (ii) cas
Slide 23: Indicative regional mix of revenues/expenses
Indicative regional mix of revenues/expenses Q1 2018 Net Revenues Other 21% 9% 4% 7% 11% — The information presented provides an illustrative 0% 19% currency mix of Revenues and Noninterest expenses 25% 13% 1% — Classification is based primarily on the currency of DB’s USD 40% Group office in which
Slide 24: Net Interest Income sensitivity
Net Interest Income sensitivity Hypothetical +100bps parallel shift impact by business line and major currency, € bn First year Second year 1.7 1.4 > 3M > 3M 0.3 0.6 EUR 0.9 0.7 0.7 0.8 ≤ 3M ≤ 3M 1.1 1.0 USD 0.2 0.2 > 3M ≤ 3M > 3M ≤ 3M 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 PCB CIB Group PCB CIB Group Tota
Slide 25: Litigation update
Litigation update € bn, unless otherwise stated Litigation provisions(1) Contingent liabilities(1) 2.0 1.9 2.7 2.5 31 Dec 2017 31 Mar 2018 31 Dec 2017 31 Mar 2018 ― Decrease due to settlement payments for major cases as well ― Includes possible obligations where an estimate can be made as releases f
Slide 26: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, € m unless otherwise stated Average VaR Stressed VaR(1) € 3.0bn Sales & Trading revenues € 2.5bn 180 160 140 120 100 80 60 40 20 32 32 30 25 28 76 83 81 67 87 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 (1) Stressed Value-at-Risk is calculated on t
Slide 27: 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
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