Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (June 2020)
19 slides from Deutsche Bank's debt investor presentation, Jun 24, 2020
Slide 1: Fixed Income Investor update
Deutsche Bank Fixed Income Investor update James von Moltke – Chief Financial Officer Dixit Joshi – Group Treasurer Wednesday, 24 June 2020
Slide 2: Executing well in unprecedented conditions
Executing well in unprecedented conditions Strategy well aligned with the current environment – home market in Germany is a source of strength Franchise strength is increasingly visible – 11% positive operating leverage(1) in the Core Bank in Q1 2020 Well diversified loan book with strong collateral
Slide 3: Our business is strongly rooted in Germany
Our business is strongly rooted in Germany 2019 Revenues Access point to state Loans(1) sponsored lending as ‘Hausbank’ to ~900k corporate and commercial Other clients Other APAC APAC 3% APAC 2% 9% 11% Leading German corporate finance franchise – 14% market share in Q1 2020 North North 43% GY Americ
Slide 4: Germany is one of the most resilient economies in this crisis
Germany is one of the most resilient economies in this crisis As a % of 2019 GDP Corporate debt Announced government COVID-19 measures 155 48 44 122 Fiscal measures 21 14 Liquidity/Guarantees 82 26 69 75 22 59 12 7 14 27 30 9 14 15 12 3 GY IT US UK S FR GY IT FR UK US CH Household debt GDP growth es
Slide 5: Four leading divisions with continued franchise momentum
Four leading divisions with continued franchise momentum Investment Bank Corporate Bank RoTE(1): 10% RoTE(1): 5% #1 Euro clearer 80% revenues from Leading non-US domiciled franchises in top 5 market USD clearer positions Banking network across 145 #3 in Credit globally countries #3 in FX
Slide 6: Strategic transformation drives growth and higher profitability
Strategic transformation drives growth and higher profitability In € bn Revenues ex. specific items(1) Adjusted profit (loss) before tax(2) 6.3 6.3 Capital 0.4 Release Unit Core 1.1 Bank 32% Core 7% 6.4 0.8 Bank 5.9 (0.5) Capital (0.8) Release Unit Q1 2019 Q1 2020 (0.1) Q1 2019 Q1 2020 (1) Q1 2020 r
Slide 7: 9th consecutive quarter of annual adjusted cost reductions
9th consecutive quarter of annual adjusted cost(1) reductions Adjusted cost ex. transformation charges, in € bn Bank levies Global Prime Finance(2) 21.6 0.1 19.9 0.4 0.7 (0.4) 0.6 0.5 Q2 - Q4 15.6 14.1 € 19.5bn adjusted cost target ex. transformation 5.7 5.6 5.5 5.4 charges and 5.3 5.3 5.2 5.1 4.9 G
Slide 8: Low risk, well diversified loan portfolio
Low risk, well diversified loan portfolio In € bn, period end, loans at amortized cost — ~50% of total loan portfolios in the Private Bank Private Bank — ~60% of Private Bank loans in low risk German mortgages Other – median LTV 64% 2% — Wealth Management portfolio 99% collateralized Investment Bank
Slide 9: Loan loss reserves aligned with peers on a risk-adjusted basis
Loan loss reserves aligned with peers on a risk-adjusted basis 4% Loan Loss Reserves - % of total loans Citi 3% JPM BNP SAN 2% BARC BAML 1% UBS HSBC 0% 0% 5% 10% 15% 20% 25% Consumer credit lending - % of total loans Source: Company reports Deutsche Bank Fixed Income Investor update 9 Investor Relat
Slide 10: Consistently low levels of net credit loss provisions
Consistently low levels of net credit loss provisions Net Credit Loss Provisions Net Credit Loss Provision peer(1) comparison, in bps In bps 54 28 22 33 13 13 17 35-45 In € bn 300 Peer avg Peer last 5yr avg DB 250 DB last 5yr avg 200 2.1 150 1.4 100 1.1 1.0 0.7 50 0.5 0.5 0 2013 2014 2015 2016 2017
Slide 11: 2018 EBA stress test not comparable to current environment
2018 EBA stress test not comparable to current environment Continuous 3 year downturn with no recovery Severe shock with quicker recovery Macro No Government support assumed Significant Government support in place Overlays for credit provisions (~20bps) and Detailed, conservative internal bottom up
Slide 12: Maintained strong fundamentals
Maintained strong fundamentals 2019 Q1 2020 Comment Common Equity Tier 1 capital 239bps above current regulatory 13.6% 12.8% ratio requirements € 18bn above most binding MREL Loss-absorbing capacity (MREL) € 115bn € 112bn requirement Maintained a strong liquidity profile Liquidity Reserves € 222bn €
Slide 13: Conservatively managed balance sheet
Conservatively managed balance sheet Net balance sheet(1), in € bn, as of 31 March 2020 Assets Liabilities & Equity 994 994 Liquidity Trading and — Balance sheet provides robust foundation to 205 174 reserves related liabilities(2) execute our transformation and manage through the current environmen
Slide 14: Strong capital position to weather the crisis
Strong capital position to weather the crisis CET1 ratio drivers Q1 2020: 12.8% — COVID-19 related Credit Loss Provisions COVID-19 — Ratings migration impact on credit risk RWA impacts — Committed facilities repayment / extension ~(40) bps — Market risk weighted assets — Benefit from Prudential Valu
Slide 15: Improved distance to regulatory capital requirements
Improved distance to regulatory capital requirements In %, as of 31 March 2020, phase-in view, pro forma reflecting Tier 2 issuance(1) 16.96 T2 2.12 192bps 15.04 AT1 2.01 2.63(4) 239bps 1.97(3) CET1 12.83 10.44(2) Available pro forma capital Q1 2020 Capital requirement Note: Figures might not add up
Slide 16: Loss absorbing capacity well above all requirements
Loss absorbing capacity well above all requirements In € bn, unless stated otherwise, as of 31 March 2020 Deutsche Bank available MREL surplus / TLAC surplus TLAC/MREL MREL subordination surplus 112 — Deutsche Bank comfortably meets its MREL, 3 Plain-vanilla senior subordinated MREL and TLAC require
Slide 17: 2020 issuance plan
2020 issuance plan In € bn Issuance plan Contractual maturity profile(1) Covered Bonds Senior Structured / Preferred Senior Non-Preferred AT1 / Tier 2 25 4 17 2 15-20 4 14 3-5 10-15 1 13 1 4 10 2 3-4 5 9 5-7 8.3 18 1 3 2.3 0.5 3 8 4 8-10 2 5 3-6 3.1 8 4 4 3 1 1 2.4 2 Original 2020 Revised 2020 YTD 2
Slide 18: Maintaining a sound liquidity profile
Maintaining a sound liquidity profile Liquidity Reserves, € bn Cash and cash equivalents(1) Highly liquid and other securities(2) 260 246 243 222 205 >200 Temporary operating range — Reduced excess liquidity reserves and Liquidity 71% 64% 67% 60% 55% Coverage Ratio (LCR), mainly reflecting € 18bn of
Slide 19: 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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