Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q3 2015 Earnings Presentation
43 slides from Deutsche Bank's earnings presentation, Oct 29, 2015
Slide 1: 3Q2015 results
Deutsche Bank Deutsche Bank 3Q2015 results 29 October 2015
Slide 2: Group financial highlights
Group financial highlights In EUR bn, unless otherwise stated Group 3Q2015 3Q2014 9M2015 9M2014 Income before income taxes (6.1) 0.3 (3.4) 2.9 Net income (6.0) (0.1) (4.6) 1.2 Diluted EPS (in EUR) (4.35) (0.07) (3.53) 1.00 Profitability Post-tax return on average active equity (35.2)% n.m. (0.6)% (9
Slide 3: Key messages for 3Q2015
Key messages for 3Q2015 — Net loss of EUR 6.0 bn vs. net loss of EUR 0.1 bn in 3Q2014 Net — 3Q2015 included specific items of EUR 7.6 bn, largely not deductible for tax purposes, i.e.: — EUR 5.8 bn impairment of goodwill and other intangibles income — EUR 1.2 bn litigation charges — EUR 0.6 bn impai
Slide 4: Quarterly Net Income
Quarterly Net Income Net income 3Q2015 vs. 3Q2014, in EUR m FX-adjusted deltas(1): 467 12 — EUR 6.4 bn impact from impairment of goodwill and other intangibles and from 163 Hua Xia Bank stake 380 — 5% net revenue decrease at 84 136 constant FX and excl. (92) 124 impairment of Hua Xia Bank (221) stak
Slide 5: Nine Months Net Income
Nine Months Net Income Net income 9M2015 vs. 9M2014, in EUR m FX-adjusted deltas(1): 536 — EUR 6.4 bn impact from impairment of goodwill and 194 other intangibles and from 184 664 (8) Hua Xia Bank stake — 6% net revenue increase at 210 constant FX and excl. 157 103 impairment of Hua Xia Bank 145 499
Slide 6: Noninterest expenses
Noninterest expenses 3Q2015 vs. 3Q2014, in EUR bn CIR: CIR: — Excluding impairments of goodwill and 93% 180% other intangibles, costs in 3Q2015 are 0.4 13.2 EUR 0.3 bn lower at constant FX- Not included in adjusted cost base 0.1 rates(2) than in 3Q2014 Part of adjusted cost base 0.3 5.8 — Litigation
Slide 7: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves(1) In USD bn Demands Reserves 4.8 3.2 2.6 2.6 3.8 2.6 0.5 0.4 30 Jun 2015 30 Sep 2015 30 Jun 2015 30 Sep 2015 30 Jun 2015 30 Sep 2015 — Significant uncertainty remains as to — Includes possibl
Slide 8: Impairment of goodwill and other intangible assets
Impairment of goodwill and other intangible assets In EUR bn Background Regulatory impact ― DB conducted an impairment test triggered by financial plans for Strategy 5.8 ~0 2020 ― Resulted in a full impairment of goodwill in CB&S and PBC, partial Background impairment of other intangibles in PBC ― I
Slide 9: Impairment of the carrying value of DB's Hua Xia Bank stake
Impairment of the carrying value of DB’s Hua Xia Bank stake Development of DB‘s holding in Hua Xia Bank HXB Carrying Value, in EUR bn ― DB’s 19.99% stake in Hua Xia Bank held under Equity Method 3.7 accounting 0.7 (0.6) 3.0 ― Hua Xia Bank stake no longer Background considered strategic 1.7 1.3 ― 3Q2
Slide 10: Tier 1 capital
Tier 1 capital CRD4, fully loaded Tier 1 capital Events in the quarter In EUR bn Common Equity Tier 1 — Impairments with no impact on DB’s fully loaded CET1 Additional Tier 1 capital capital 4.6 4.6 — First time consideration of PruVal in reported numbers 1.1 0.4 impacted CET1 capital negatively by
Slide 11: Risk weighted assets
Risk weighted assets In EUR bn Events in the quarter 11.4% CET 1 ratio, fully loaded 11.5% RWA down QoQ by EUR (8.2) bn mainly driven by: 416 — Increase in Operational Risk RWA driven by recent 7 internal and industry losses/settlements 408 (2) — Credit risk RWA down predominantly due to application
Slide 12: Leverage exposure
Leverage exposure CRD4 Leverage exposure development, in EUR bn Events in the quarter 3.6% CRD4 Leverage ratio, fully loaded 3.6% — Leverage ratio flat QoQ as the reduction of Tier 1 Capital 1,461 was offset by lower exposure 19 — Application of revised EBA treatment(1) to defined benefit (22) 1,420
Slide 13: Segment results
Segment results Deutsche Bank 3Q2015 results financial transparency. 13 Investor Relations 29 October 2015
Slide 14: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features Impairment of goodwill and other 2,586 In EUR m 3Q15 vs. 9M15 vs. In EUR m intangible assets 3Q15 3Q14 9M15 9M14 3Q14 9M14 1,439 829 1,200 Net Revenues (1) 3,172 3,119 2% 12,139 10,668 14% 644 (2,168) Prov. for credit 319 323 (56
Slide 15: Sales & Trading revenues
Sales & Trading revenues Revenues Key revenue features Debt S&T, in EUR m 6,477 Debt Sales & Trading revenues 20% 5,693 — FX revenues in-line y-o-y as lower revenues in Europe and North America were offset by stronger performance in Asia 2,642 — Rates significantly higher y-o-y reflecting increased
Slide 16: Origination & Advisory
Origination & Advisory Revenues Key revenue features In EUR m Advisory Overall Origination — Revenues down 8% y-o-y primarily driven by significantly lower 2,274 ECM revenues partially offset by higher Advisory and flat DCM 2,127 revenues 393 471 — Origination and Advisory market share declined in 9
Slide 17: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m In EUR m 3Q15 vs. 9M15 vs. 3Q15 3Q14 9M15 9M14 1,181 3Q14 9M14 70 Net Revenues 1,851 2,375 (22)% 6,679 7,176 (7)% Prov. for credit 474 379 328 536 483 (116) (150) (23)% (351) (435) (19)% losses 32 38 330 Noninterest exp. (5,
Slide 18: Private & Business Clients: Profit by business unit
Private & Business Clients: Profit by business unit Income before income taxes, in EUR m Cost-to-Achieve (1) Loan processing fees Impairments(4) Private & Commercial Banking Postbank(2) Advisory Banking International Therein HXB: 48 95 104 110 110 123 143 144 (3) 17 18 19 5 5 64 14 17 69 7 17 19 11
Slide 19: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m In EUR m 3Q15 vs. 9M15 vs. 3Q15 3Q14 9M15 9M14 3Q14 9M14 (3) 1,092 Net Revenues 1,164 1,032 13% 3,441 3,080 12% Prov. for credit 905 (34) (43) (22)% (36) (114) (68)% losses Noninterest exp. (728) (660) 10% (2,313) (2,061) 12
Slide 20: Deutsche Asset & Wealth Management
Deutsche Asset & Wealth Management Income before income taxes Key features Recovery of goodwill and other In EUR m 3Q15 vs. 9M15 vs. In EUR m intangible assets 3Q15 3Q14 9M15 9M14 3Q14 9M14 976 Net Revenues 1,198 1,266 (5)% 3,992 3,464 15% Prov. for credit (0) (1) (69)% (5) 7 n.m. losses Noninterest
Slide 21: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 3Q15 vs. 9M15 vs. 3Q15 3Q14 9M15 9M14 3Q14 9M14 (278) Net Revenues 169 11 n.m. 706 20 n.m. (381) (543) (590) Prov. for credit (709) (2) (42) (95)% (35) (128) (73)% (909) losses (1,058) Noninterest exp. (444) (1,026) (
Slide 22: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 3Q15 vs. 9M15 vs. 3Q15 3Q14 9M15 9M14 61 3Q14 9M14 25 IBIT (127) 61 n.m. (396) (276) 43% (18) thereof V&T differences (1) (147) 4 n.m. 21 (143) n.m. (124) (127) FVA (2) 31 36 (15)% (77) (84) (8)% (213) Bank levies
Slide 23: Appendix
Appendix Deutsche Bank 3Q2015 results financial transparency. 23 Investor Relations 29 October 2015
Slide 24: Appendix: Table of Contents
Appendix: Table of Contents P&L Details 25 NCOU Details 32 CRD4 – Leverage Exposure and risk weighted assets 33 Loan book 34 Impaired loans 35 Value-at-Risk 36 Funding 37 Total Loss Absorbing Capacity (TLAC) 38 Number of shares 39 Invested assets 40 Deutsche Bank 3Q2015 results financial transparenc
Slide 25: Net revenues
Net revenues In EUR bn 26.9 EUR (0.5) bn(2) 24.1 10.4 9.2 8.4 7.9 7.9 7.8 7.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9M 9M 2014 2015 2014 2015 Contribution to Group revenues ex Consolidation & Adjustments by business segment(1): CB&S 47% 44% 40% 38% 47% 46% 42% 44% 45% PBC 28% 30% 30% 31% 25% 25% 24% 29% 25% GTB 12%
Slide 26: Provision for credit losses
Provision for credit losses In EUR m Cost of Risk(1) NCOU Core Cost of Risk DB Group (1) Cost of Risk Core Bank (1) 765 128 576 35 369 250 269 246 218 131 207 637 0.30% 67 42 151 541 19 2 28 0.20% 5 0.10% 230 227 237 179 190 146 205 0.00% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9M 9M 2014 2015 2014 2015 CBS 16 44 33 9
Slide 27: Reported and adjusted costs
Reported and adjusted costs Noninterest expenses, in EUR bn 29.7 Compensation and benefits Noninterest expenses excl. compensation and benefits 20.5 19.5 13.2 11.0 7.3 7.2 8.7 7.8 6.5 6.7 9.9 3.1 3.7 4.1 4.2 5.2 4.4 9.5 10.2 3.3 3.0 3.2 3.0 3.4 3.4 3.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9M 9M 2014 2015 2014 2015
Slide 28: 3Q2015: IBIT detail
3Q2015: IBIT detail 3Q2015 (1) In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other IBIT adjusted CB&S (2,726) (55) (1,027) 51 (2,210) 515 PBC (3,634) (69) (12) 0 (4,254) 701 GTB 402 (14) (2) 0 2 416 AWM 263 (33) (5) 0 (2) 302 C&A (127) (12) (21) 31 (6) (119) Core Bank (5,823) (183) (1,067) 8
Slide 29: 3Q2014: IBIT detail
3Q2014: IBIT detail 3Q2014 (1) In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other IBIT adjusted CB&S 319 (69) (304) (166) (18) 876 PBC 328 (98) (0) 0 (3) 430 GTB 329 (23) 3 0 (4) 352 AWM 287 (66) (1) 0 (3) 357 C&A 61 10 (1) 36 (12) 29 Core Bank 1,324 (247) (303) (130) (40) 2,044 NCOU (1,058
Slide 30: 9M2015: IBIT detail
9M2015: IBIT detail 30 Sep 2015 (1) In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other IBIT adjusted CB&S (882) (188) (2,454) 39 (2,258) 3,979 PBC (2,615) (195) (13) 0 (4,258) 1,850 GTB 1,092 (44) (140) 0 2 1,274 AWM 976 (100) (31) 0 (6) 1,112 C&A (396) (2) (22) (77) (24) (271) Core Bank (1
Slide 31: 9M2014: IBIT detail
9M2014: IBIT detail 30 Sep 2014 (1) In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other IBIT adjusted CB&S 2,586 (341) (544) (274) (35) 3,780 PBC 1,181 (300) (0) 0 (9) 1,490 GTB 905 (74) (95) 0 (7) 1,080 AWM 658 (203) (24) 0 (8) 893 C&A (276) 6 (8) (84) (24) (166) Core Bank 5,054 (912) (672)
Slide 32: NCOU IBIT components
NCOU IBIT components IBIT in EUR m Component FY2014 1H2015 3Q2015 Comments/Outlook Portfolio Revenues 994 281 116 — Net IBIT impact to De-risking IBIT 179 205 164 decrease with lower LLPs MtM/Other (885) 169 (25) — Quarterly performance Asset Driven LLPs (1) (301) (71) (19) impacted by MtM volatilit
Slide 33: CRD4 – Leverage Exposure and risk weighted assets
CRD4 – Leverage Exposure and risk weighted assets Leverage Exposure vs. RWA(1) In EUR bn CRD4 – Leverage Exposure RWA 1,445 1,420 321 321 Non-derivative 196 64 197 60 trading assets 64 62 Market Risk RWA 285 CVA 19 Derivatives(2) 358 54 428 Lending 406 250 128 Reverse repo / Credit Risk RWA 242 secu
Slide 34: Loan book
Loan book In EUR bn 434 430 433 401 411 393 18 17 16 386 18 NCOU 21 19 43 44 44 22 37 39 33 34 AWM 216 216 218 214 215 PBC 213 213 84 81 79 77 77 GTB 76 77 CB&S 53 62 72 72 77 42 48 30 Mar 30 Jun 30 Sep 31 Dec 30 Mar 30 Jun 30 Sep 2014 2015 Germany excl. Financial Institutions and Public Sector: 186
Slide 35: Impaired loans
Impaired loans(1) Period-end, in EUR bn Core Bank Non-Core Operations Unit Impaired loan ratio Deutsche Bank Group(3) (2) (2) Impaired loan ratio Core Bank(3) 12.0 3.10% 10.3 10.0 9.5 9.3 9.3 10.0 8.7 2.60% 8.1 8.0 3.3 3.3 2.9 2.10% 2.8 2.6 2.5 6.0 2.2 1.60% 4.0 1.10% 6.9 6.8 6.7 6.5 6.6 6.2 5.9 2.0
Slide 36: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, in EUR m Average AverageVaRVaR Stressed VaR(1) Stressed VaR (1) EUR 2.2 bn Sales & Trading revenues EUR 2.3 bn 180 160 140 120 100 80 60 40 20 2014 3Q 50 4Q2014 46 50 1Q 2015 2015 2Q 46 3Q40 2015 108 111 109 102 111 3Q2014 4Q2014 1Q2015 2Q2015 3Q2
Slide 37: Funding activities and profile
Funding activities and profile Funding cost and volume development Funding profile well diversified Issuance, in EUR bn As of 30 September 2015 DB issuance spread, 4 week moving average, in bps(1) Secured Financing 200 Funding and Vehicles; 1% 180 Shorts; 11% Unsecured 160 Capital 75% from most stab
Slide 38: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) DB well positioned to meet future TLAC requirements — Final FSB guidance on TLAC to be released in November; expected to be based on Group RWA (16-20% plus buffers) and leverage exposure (twice the leverage ratio requirement) with application not before January 2
Slide 39: Number of shares
Number of shares In million Average used for EPS calculation End of period numbers 31 Dec 31 Dec 30 Sep FY2013 FY2014 3Q2015 2013 2014 2015 (1) Common shares issued 1,037 1,236 1,379 1,069 1,379 1,379 Total shares in treasury (1) (2) (2) (7) - 0 (1) Common shares outstanding 1,034 1,234 1,373 1,069
Slide 40: Regional invested assets – Deutsche AWM
Regional invested assets – Deutsche AWM In EUR bn 30 Sep 2015 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 30 Jun 2015 30 Sep 2015 vs. 30 Jun 2015 Americas 265 261 282 297 338 327 316 (11) Asia-Pacific 71 75 85 86 97 96 91 (5) EMEA (ex Germany) 249 263 272 280 315 292 280 (12) Germany
Slide 41: Client view invested assets - Deutsche AWM
Client view invested assets - Deutsche AWM In EUR bn 30 Sep 2015 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 30 Jun 2015 30 Sep 2015 vs. 30 Jun Retail 244 255 267 272 310 338 308 2015 (31) Institutional 403 406 432 449 495 445 440 (5) Private Client 287 294 307 317 354 351 340 (11) A
Slide 42: Invested assets – PBC
Invested assets – PBC In EUR bn 30 Sep 2015 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 30 Jun 2015 30 Sep 2015 vs. 30 Jun 2015 Private & Business Clients 284 286 289 291 303 295 283 (11) Investment & Insurance Products 149 153 154 156 167 161 154 (8) Deposits excl. Sight Deposits 13
Slide 43: 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