Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Presentation (April 2015)
27 slides from Deutsche Bank's investor presentation, Apr 27, 2015
Slide 1: Strategy 2020: Delivering Value
Deutsche Bank Strategy 2020: Delivering Value Analyst Call Frankfurt, 27 April 2015 Anshu Jain Co-Chief Executive Officer 0
Slide 2: Strategy 2020: Focusing Deutsche Bank to deliver value
Strategy 2020: Focusing Deutsche Bank to deliver value A leading global bank based in Germany What’s constant What changes Client-centricity: placing our clients Refocusing on clients who offer at the centre of what we do mutually beneficial partnerships Moving toward a more focused Keeping a global
Slide 3: Deutsche Bank's unique positioning is a long-term competitive advantage
Deutsche Bank’s unique positioning is a long-term competitive advantage Market position of Deutsche Bank Positioning of Deutsche Bank Germany Europe Global Capital markets expertise and global cash / trade platform CB&S No. 1 Top 1-3 Top 5 Leading domestic retail franchise International reach with p
Slide 4: Agenda
Agenda 1 Taking stock 2 Strategy 2020 Deutsche Bank Anshu Jain 27 April 2015 3
Slide 5: Taking stock: Strategy 2015+ has delivered significant achievements
Taking stock: Strategy 2015+ has delivered significant achievements… Balance and Core business balance and performance: All core performance businesses exceeding EUR 1 billion IBIT for the first time(1) Capital Stronger capital position, with strong deleveraging, de- position risking and near-doubli
Slide 6: Taking stock: but we have also faced significant setbacks
Taking stock: …but we have also faced significant setbacks Environment Execution Regulatory bar raised: Cost of regulatory compliance ‒ FBO / CCAR(1) rules in the US and new controls materially higher than originally ‒ TLAC(2) foreseen ‒ Leverage ratios in Europe / US Costs of Regulation regulat
Slide 7: Our outlook
Our outlook Positive outlook Negative outlook Key themes Outlook 2015 to 2020 US and Asia: recovery / sustainable growth Macro Europe: historically low interest rates persist Rising geopolitical tensions create uncertainties Improving global outlook anchored to US and EM growth Recovering
Slide 8: Agenda
Agenda 1 Taking stock 2 Strategy 2020 Deutsche Bank Anshu Jain 27 April 2015 7
Slide 9: Strategy 2020: Six key decisions
Strategy 2020: Six key decisions Aspirations Deliver sustainable client-driven franchise by: Leverage reduction: Reposition 1 ‒ Reducing transactional business and focus product suite gross ~EUR 200bn, CB&S ‒ Invest in client solutions, advisory and equities net ~EUR 130-150bn Net leverage red
Slide 10: Result: A reshaped business model
Result: A reshaped business model Targeted indicative resource utilization (CRD4 exposure) by 2020 Afflu- Change 2020 vs. 2014 Mass ent / Corp- retail(1) HNWI orates Institutions / other 2014 Re-affirming our Clients commitment to clients: at the center 2020 of what we do Advi- Cash As
Slide 11: Strategy 2020: Medium term ambitions
Strategy 2020: Medium term ambitions Our targets Leverage ≥5% RoTE(1) >10% ratio Organic gross ~EUR 3.5bn CET1 savings ~11% ratio CIR ~65% Our aspiration Payout ratio(2) Aspiration to deliver 50%+ dividend payout ratio Note: Gross cost savings are countered by increasing cost from inflation, FX chan
Slide 12: Reposition CB&S: Delivering a sustainable, resilient and well-controlled investment bank
Reposition CB&S: Delivering a sustainable, resilient and well-controlled investment bank Emphasis H / M / L= high / medium / low De-emphasis CRD4 leverage consumption 2012- Aspiration CRD4 2014 2020 usage Top 3 global Debt S&T business H Invest Top 5 global Corporate Finance house L Top
Slide 13: Reposition CB&S: Shrinking and re-deploying balance sheet
Reposition CB&S: Shrinking and re-deploying balance sheet CRD4 leverage exposure, in EUR bn Expected impact of Targeted leverage exposure exposure reduction reduction: gross ~EUR 200bn; net ~EUR 130-150bn >900 ~EUR 0.8bn deleveraging exit costs ~EUR 0.6bn negative (80-90) run-rate revenue impact
Slide 14: Reposition CB&S: Trimming while investing
Reposition CB&S: Trimming while investing Optimizing our client franchise Grow Size of bubble relates to CRD4 2014 Aspiration 2020 Corporate Finance leverage exposure Cash Equities Equity Derivatives #1-2 EM Debt FX Credit Solutions Optimize Rates and GLM Rates and Prime Finance CB&S revenue rank(3)
Slide 15: Reshape retail: Substantial investments in Postbank since 2010
Reshape retail: Substantial investments in Postbank since 2010 Postbank in 2010 Substantial investments Postbank today(1) Disposed / wound down Balance sheet (total assets, 215 non-core assets 155 in EUR bn) EUR 42.3bn: ‒ EUR 3.7bn structured credit portfolio Non-customer assets ‒ EUR 13.1bn comme
Slide 16: Reshape retail: Postbank's strategic fit with DB
Reshape retail: A number of factors has led us to reconsider Postbank’s strategic fit with DB Key factors Implications Postbank’s mortgage and home loans products drive high returns at high balance DB's proactive focus on ≥5% sheet usage medium-term leverage ratio would Leverage negatively impact
Slide 17: Reshape retail: Postbank deconsolidation process and timeline
Reshape retail: Postbank deconsolidation process and timeline Intention to launch squeeze-out Next steps Cease integration efforts especially in IT and middle/back-office operations To prepare the execution of our strategy, Imme- Revert to stand-alone business and we acquired additional 2.7% o
Slide 18: Reshape retail: A leading advisory bank
Reshape retail: A leading advisory bank Substantial actions planned… …to deliver our new PBC Sharpen distribution model 2016-2020 ‒ Up to 200 branches closed by 2017 Leading digitally-enabled advisory bank for >13m ‒ Strengthen omni-channel clients with strong home base in Europe capabilities ‒
Slide 19: Grow GTB: Continue to invest in scale
Grow GTB: Continue to invest in scale Trajectory to build on Why we want to grow GTB Planned investments GTB performance(1) IBIT Market leader in In EUR bn Revenues ■ EUR 50bn+ incremental leverage ‘annuity- like’ 0.9 +36% 1.2 business to corporate exposure supporting corporates and financial inst
Slide 20: Grow Deutsche AWM: Invest to capture future growth
Grow Deutsche AWM: Invest to capture future growth Significant global growth opportunities for the industry Planned investments to capture growth AuM, in USD trn Balance Sheet: U/HNWI growth Prudently grow lending balance sheet 5-6% p.a. 5-10% p.a. to support client needs 220 Wealth Client coverag
Slide 21: Rationalize our footprint: Exit or reduce presence while investing in high growth hubs
Rationalize our footprint: Exit or reduce our presence while investing in high growth hubs Key drivers of our footprint optimization decisions - De-emphasize + Emphasize – examples Reducing complexity # of countries/presences China Market size and growth (7)-(10) CAGR 2014- CAGR 2014- Growth 201
Slide 22: Transform our operating model: Top-down savings targets
Transform our operating model: Top-down savings targets In EUR bn Target Gross cost savings p.a. Cum. CtA Details on next page Narrow perimeter (e.g., de-emphasizing of Additional product/client segments, locations) ~3.5 ~3.7 gross savings Increase efficiency (e.g., process streamlining, IT/Ops
Slide 23: Transform our operating model: Contributing ~EUR 3.5bn additional organic gross savings
Transform our operating model: Contributing ~EUR 3.5bn additional organic gross savings In EUR bn Target Gross cost savings p.a. Cum. CtA Structural efficiency levers Rightsizing of FTE and platform in alignment with: Narrow – Exit of structurally unprofitable businesses ~1.3 ~1.4 perimeter – Countr
Slide 24: Journey to 5% leverage ratio target
Journey to 5% leverage ratio target coming from balance sheet reduction and capital accretion CRD4 leverage ratio, fully loaded Impact from change in leverage exposure Impact from capital accretion ≥5% 0.2% 4.6% 0.4% 0.4% 3.5% 4Q14 Postbank de- CB&S NCOU Pro-forma Redeployment Cumulative Target cons
Slide 25: Our pro-forma funding profile remains robust
Our pro-forma funding profile remains robust Funding profile (pre-CB&S deleveraging) 31 Dec 2014, external funding sources, in EUR bn ■ Postbank is a self-funding entity with 919 781 no material funding contribution to DB Group Other 24% 28% ■ Substantial majority of funding 76% continues to come fr
Slide 26: What comes next
What comes next Today Strategy 2020 announcement Refine key levers Operating Design detailed transformation roadmap model review Refine governance and operating model Footprint Finalize outcomes of global country review decisions Engage stakeholders and initiate implementation Breakdown
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