Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Deutsche Bank Aktiengesellschaft — Q4 2015 Earnings Presentation
44 slides from Deutsche Bank's earnings presentation, Jan 28, 2016
Slide 1: Deutsche Bank 4Q2015 results
Deutsche Bank 4Q2015 results 28 January 2016 Exhibit 99.2
Slide 2: Group financial highlights
Group financial highlights In EUR bn, unless otherwise stated Group financial highlights Note:Figures may not add up due to rounding differences (1)Total noninterest expense excluding Restructuring & Severance, Litigation, impairment of goodwill and other intangibles and policyholder benefits and cl
Slide 3: Quarterly Net Income
Quarterly Net Income Net income 4Q2015 vs. 4Q2014, in EUR m Revenues declined by 19% mainly driven by weak CB&S performance, MtM losses in NCOU and the sale of Cosmo in 4Q2014 Overall credit environment remains benign Costs increased mainly from higher Litigation and higher Restructuring and Severan
Slide 4: Full year Net Income
Full year Net Income Net income FY2015 vs. FY2014, in EUR m FY2015 EUR 6.5 bn impact from impairment of goodwill and other intangibles and Hua Xia Bank stake Revenues slightly up excluding impairment of Hua Xia Bank Favourable LLP environment Adjusted cost improved with lower NCOU expenses and other
Slide 5: Costs
Costs In EUR bn Note: Figures may not add up due to rounding differences Litigation includes “loan processing fees” according to new Adjusted Cost definition Impairments refer to Impairments of goodwill and other intangibles (3)Total noninterest expense excluding Restructuring and Severance, Litigat
Slide 6: Litigation update
Litigation update In EUR bn Litigation reserves Contingent liabilities Mortgage repurchase demands/reserves(1) Demands Reserves In USD bn Settlements and resolutions have been achieved in 4Q2015 including: US Sanction Violations (FED and NY State DFS) - USD 258 m DoJ Tax Program for Swiss Banks EC’s
Slide 7: Tier 1 capital CRD4, fully loaded
Tier 1 capital CRD4, fully loaded Events in the quarter Tier 1 capital In EUR bn Note:Figures may not add up due to rounding differences (1)Includes both DTAs on temporary differences and DTAs on unused tax losses/tax credits (1) CET1 capital down by EUR (2.8) bn, mainly driven by EUR (2.1) bn net l
Slide 8: RWA
RWA In EUR bn Events in the quarter RWA reduction of EUR (11) bn, key drivers: Credit Risk RWA decreased reflecting our de-risking efforts and reduced risk levels, partly offset by the increase in the applicable risk weight for Abbey Life from 100% to 370%, following ECB guidance in the context of h
Slide 9: SREP Requirements – DB above required minimum levels
SREP Requirements – DB above required minimum levels Events in the quarter 294bps 177bps ECB notified DB of its Supervisory Review and Evaluation Process (SREP) requirement to maintain a Common Equity Tier 1 (CET 1) ratio of at least 10.25% on a phase-in (CRR/CRD 4) basis This requirement includes t
Slide 10: Leverage exposure CRD4
Leverage exposure CRD4 Leverage exposure development, in EUR bn Events in the quarter 30 Sep 2015 31 Dec 2015 QoQ Change Therein FX CB&S 802 807 5 15 PBC 264 265 1 0 GTB 214 197 (17) 2 AWM 76 78 2 1 NCOU 59 41 (18) 1 Other 5 7 1 0 Total 1,420 1,395 (25) 19 (1) 3.6% 3.5% CRD4 Leverage ratio, fully lo
Slide 11: Segment results
Segment results 402015 results financial transparency. 1 Investor Relations 28 January 2016
Slide 12: Corporate Banking & Securities
Corporate Banking & Securities Note: Figures may not add up due to rounding differences 4Q2015 revenues include four valuation adjustment items totaling EUR 167 m loss (loss of EUR 25 min 4Q2014). First, EUR 49 m CVA loss from RWA mitigation efforts (loss of EUR 18 m in 4Q2014). Second, EUR 146 m lo
Slide 13: Sales & Trading
Sales & Trading Sales & Trading revenues Note:4Q2015 Sales and Trading revenues include three valuation adjustment items totaling EUR (136) m loss, of which EUR (135) m loss was included in Debt S&T and EUR (1) m loss was included in Equity S&T. First, EUR (49) m CVA loss from RWA mitigation efforts
Slide 14: Origination & Advisory
Origination & Advisory Advisory Origination Origination & Advisory Note:Rankings and market share refer to Dealogic fees; figures may not add up due to rounding differences Overall Origination and Advisory market share declined in FY2015 partially reflecting lower risk appetite, particularly in Leve
Slide 15: Private & Business Clients
Note: Figures may not add up due to rounding differences Based on average active equity Based on average tangible shareholders’ equity Litigation includes “loan processing fees” according to new ACB definition 3Q2015 includes Goodwill /other intangible impairment of EUR 3.6 bn and impairment of Hua
Slide 16: Private & Business Clients: Profit by business unit
Private & Business Clients: Profit by business unit Income before income taxes, in EUR m Therein HXB equity pick-up: 95 110 104 110 123 143 144 112 62(5) (505)(4) : 110(3) (2) 4Q2015 IBIT significantly impacted by restructuring costs of EUR 0.6 bn and a software write-off of EUR 0.1 bn. Continued gr
Slide 17: Global Transaction Banking
Note: Figures may not add up due to rounding differences Based on average active equity Based on average tangible shareholders’ equity Trade Finance and Cash Management Corporates Institutional Cash and Securities Services The Banker, Transaction Banking Awards 2015, Oct 2015 Euromoney Cash Manageme
Slide 18: Deutsche Asset & Wealth Management
Note: Figures may not add up due to rounding differences In EUR bn Based on average active equity Based on average tangible shareholders’ equity Partial reversal of an intangible write-down for Scudder Deutsche Asset & Wealth Management Deutsche Asset & Wealth Management (4) (4) FY2015 IBIT rose 23%
Slide 19: Non-Core Operations Unit
Non-Core Operations Unit Non-Core Operations Unit Revenue includes MtM losses, partially offset by net gains from asset sales FY2015 Noninterest expenses excluding Litigation related charges were ~40% lower compared to FY2014, mainly due to Cosmo sale in 4Q2014 Litigation remains a material driver o
Slide 20: Consolidation & Adjustments
Note:Figures may not add up due to rounding differences Valuation and Timing (V&T) reflects the effects from different accounting methods used for management reporting and IFRS Funding Valuation Adjustment (FVA) Charges reflected in 1Q2015 allocated to corporate Divisions over the course of the year
Slide 21: Outlook 2016
Outlook 2016 Consolidation & Adjustments Expect sufficient ADI capacity to service AT1 coupons Litigation will remain a burden, but expected to be below 2015 levels Restructuring and Severance charges of EUR ~1.0 billion in 2016 Cost pressure to be offset by savings, Adjusted Cost expected to be fla
Slide 22: Appendix
Appendix 402015 results financial transparency. 2 Investor Relations 28 January 2016
Slide 23: Appendix: Table of Contents
Appendix: Table of Contents 24 P&L Details 33 NCOU Details 34 CRD4 – Leverage Exposure and Risk Weighted Assets 35 Loan book 36 Impaired loans 37 Value-at-Risk Funding Total Loss Absorbing Capacity (TLAC) 38 39 Invested assets 40 Group Headcount 43
Slide 24: Net revenues
Net revenues In EUR bn Net revenues Contribution to Group revenues ex Consolidation & Adjustments by business segment(1): (1)Figures may not add up due to rounding differences (2)Includes EUR 0.4 bn favorable FX movements
Slide 25: Provision for credit losses
Provision for credit losses In EUR m 2014 2015 (1) (1) 2014 2015 246 250 269 369 218 151 1,134 956 Cost of Risk DB Group Cost of Risk Core Bank Cost of Risk(1) 207 CB&S 16 44 33 9 37 57 56 115 103 265 GTB 24 47 43 42 15 (12) 34 91 156 127 PBC 140 145 150 187 135 100 116 150 622 501 Note:Divisional f
Slide 26: Reported and adjusted costs
Reported and adjusted costs Noninterest expenses, in EUR bn Cost: Reported and adjusted Compensation and benefits Noninterest expenses excl. compensation and benefits Note: Adjusted Cost is a non-GAAP financial measure most directly comparable to the IFRS financial measure noninterest expenses. Adju
Slide 27: New definition of Adjusted Costs
New definition of “Adjusted Costs” Noninterest expenses 2015, in EUR bn In October 2015 we presented the new concept of “Adjusted Cost” with reduced carve-outs: Litigation cost Restructuring and Severance Impairments Policyholder benefits and claims All other costs are included in Adjusted Cost. Res
Slide 28: 4Q2015: IBIT detail
4Q2015: IBIT detail 3Q2015: IBIT detail Note:Figures may not add up due to rounding differences (1)Includes EUR (49) m Hua Xia Bank reversal of stake impairment and other transaction related valuation effects
Slide 29: 4Q2014: IBIT detail
4Q2014: IBIT detail 3Q2014: IBIT detail Note:Figures may not add up due to rounding differences In EUR m IBIT reported CVA / DVA / FVA Restructuring and Severance Litigation Impairments CB&S 323 (25) (50) (42) 0 PBC 8 0 (86) (330) 0 GTB 247 0 (13) (18) 0 AWM 358 0 17 (13) 83 C&A 25 18 31 (30) 0 Core
Slide 30: FY2015: IBIT detail
FY2015: IBIT detail 9M2015 IBIT detail Note:Figures may not add up due to rounding differences (1)Includes impairment of goodwill and other intangibles; 3Q2015 impairment of goodwill and other intangibles of EUR (2.2) bn in CB&S and EUR (3.6) bn in PBC as well as EUR (649) m Hua Xia Bank stake impai
Slide 31: FY2014: IBIT detail
FY2014: IBIT detail 9M2014: IBIT detail Note:Figures may not add up due to rounding differences
Slide 32: 3Q2015: IBIT detail
3Q2015: IBIT detail Note:Post-tax return on average tangible shareholders’ equity is calculated as net income (loss) attributable to Deutsche Bank shareholders as a percentage of average tangible shareholders’ equity. Net income (loss) attributable to Deutsche Bank shareholders is defined as net inc
Slide 33: NCOU IBIT components
NCOU IBIT components IBIT, in EUR m Note:Figures may not add up due to rounding differences (1)De-risking impact reported in LLPs are combined with revenues in the de-risking IBIT line (2)Litigation excludes Postbank related matters NCOU (2,899) (2,732) Asset Driven Portfolio Revenues De-risking IBI
Slide 34: CRD4 – Leverage Exposure and Risk Weighted Assets
CRD4 – Leverage Exposure and Risk Weighted Assets Leverage Exposure vs. RWA(1) In EUR bn 250 64 64 (2) 31 Dec 2015 (3) CRD4 – Leverage Exposure RWA Note:Figures may not add up due to rounding differences; Dec 2014: NDTA, Loans, Cash and deposits for the leverage exposure are based on the IFRS consol
Slide 35: Loan book
Loan book In EUR bn Germany excl. Financial Institutions and Public Sector: 2014 2015 Note:Loan amounts are gross of allowances for loan losses. Figures may not add up due to rounding differences 186 185 185 188 184 184 186 184
Slide 36: Impaired loans
Impaired loans(1) Period-end, in EUR bn Note:Figures may not add up due to rounding differences (1)IFRS impaired loans include loans which are individually impaired under IFRS, i.e. for which a specific loan loss allowance has been established, as well as loans collectively assessed for impairment w
Slide 37: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, in EUR m Average VaR Stressed VaR(1) 4Q2014 4Q2015 Æ 46 Æ 50 Æ 111 Æ 109 Æ38 Æ 99 1Q2015 Æ 46 Æ 102 2Q2015 3Q2015 Æ 40 Æ 111 (1)Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses a historical market data from a period of significant financi
Slide 38: Funding activities and profile
Funding activities and profile Funding cost and volume development Funding profile well diversified 2015 recap: Funding plan fully completed Raised EUR 39 bn at average spread of 57(1) bps, ca. 40 bps inside interpolated CDS and average tenor of 6.3 years EUR 11 bn by public benchmark issuances / EU
Slide 39: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) DB well positioned to meet future TLAC requirements Transitional TLAC requirement for DB (applicable from 2019) CET1 Final FSB term sheet requirements: higher of 16% RWAs (plus buffers) and 6% leverage exposure from 2019; higher of 18% RWAs (plus buffers) and 6.7
Slide 40: Regional invested assets – Deutsche AWM
Regional invested assets – Deutsche AWM In EUR bn Regional invested assets - DeAWM In EUR bn Regional net new money – Deutsche AWM Note: Figures may not add up due to rounding differences
Slide 41: Client view invested assets – Deutsche AWM
Client view invested assets – Deutsche AWM In EUR bn Invested assets by client type - Deutsche AWM In EUR bn Client view net new money - Deutsche AWM Note: Figures may not add up due to rounding differences 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 FY2015 Retail 4 7 2 8 9 1 (2) 15 Institution
Slide 42: Invested assets – PBC
Invested assets – PBC In EUR bn Invested Assets - PBC Note: Figures may not add up due to rounding differences
Slide 43: Group headcount
Group headcount Full-time equivalents, at period end Group headcount
Slide 44: 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 on plans, estimates and projections as they are c
Deutsche Bank Aktiengesellschaft — Q4 2015 Earnings Presentation on 6ix