Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2019)
17 slides from Deutsche Bank's investor day presentation, Dec 10, 2019
Slide 1: Investor Deep Dive: Investment Bank
Investor Deep Dive Investment Bank Mark Fedorcik Ram Nayak 10 December 2019 Deutsche Bank
Slide 2: Summary
Summary FY 2018 9M 2019 Reduce costs to materially improve return on tangible Revenues € 7.5bn € 5.4bn equity to 7-8% (% of group) (30%) (31%) Adjusted € 6.2bn € 4.5bn Stabilize and grow revenues costs(1) (27%) (27%) (% of group) Risk We offer competitive products and have strong weighted € 124bn €
Slide 3: Investment Bank at a glance
Investment Bank at a glance Deep institutional & Key corporate Global leader in Financing Global FX powerhouse strengths client franchise Fixed Income, Currency Sales & Trading(1) Origination & Advisory Revenues 9M 2019: € 4.3bn Revenues 9M 2019: € 1.3bn FX M&A ~15% Leveraged Well- ~25% Finance(2) d
Slide 4: Serving clients where we have a competitive advantage
Serving clients where we have a competitive advantage We have a strong franchise … Global leader in Global FX powerhouse Debt Origination expert Financing # 3 Global Credit # 2 Global FX # 1 EMEA(2) Leveraged Finance # 1 Commercial Real Estate # 1 Derivatives # 5 Global Leveraged Finance Financing &
Slide 5: Strategic priorities to improve return on tangible equity
Strategic priorities to improve return on tangible equity Reduce costs Reduce funding costs Stabilize our franchise and grow revenues Mark Fedorcik, Ram Nayak 4 Investor Deep Dive, 10 December 2019
Slide 6: Our path to improved profitability
Our path to improved profitability Post-tax return on tangible equity, in % Cost/ Income 86% <65% ratio (1%) (0-1)% 7-8% 4% 2-3% 3% 9M 2019 Revenue Cost Provision for Other(2) 2022 ex. items(1) drivers drivers credit losses Target Outlook 9M 2019 2022 RWA € 125bn ~€ 133bn Leverage € 494bn ~€ 450bn (
Slide 7: Reduce costs: progress and outlook
Reduce costs: progress and outlook Adjusted costs ex transformation charges(1), in € bn Phase 1 Phase 2 2017 – 2019 2020 – 2022 Primarily Front office Primarily Back office Cost reductions(2) 2017 – 2019 2020 – 2022 Front office Back office 6.5 ~0.6 ~1.2 (7)% 5.9 CAGR Front office 4.7 70% ~0.4 ~0.2
Slide 8: Reduce costs: specific initiatives
Reduce costs: specific initiatives Adjusted costs(1), in € bn Driver Measures Impact(2) — Front office restructuring largely completed Front Office € 0.2bn — Increase expense management discipline (7)% CAGR — Investment Bank technology 6.5 5.9 — Migrate to single platforms — Decommission application
Slide 9: Stabilize revenues: transform EMEA flow and refocus Emerging Markets
Stabilize revenues: transform EMEA flow and refocus Emerging Markets Investment Bank revenue Driver Measures composition(1), in € bn 6.1 5.6 — Turn around specific flow businesses — New leadership Grow revenue — Disciplined risk management in EMEA FIC — Automate and standardize flow businesses — Lev
Slide 10: Stabilize revenues: partner with the Corporate Bank and reduce funding costs
Stabilize revenues: partner with the Corporate Bank and reduce funding costs Investment Bank revenue Driver Measures composition(1), in € bn 6.1 5.6 — Build on existing areas of partnership Partnership — Payment-linked Foreign Exchange with — Risk / Treasury solutions Corporate Bank — Autobahn — Lev
Slide 11: Stabilize revenues: play to our strengths
Stabilize revenues: play to our strengths Investment Bank revenue Driver Measures composition(1), in € bn 6.1 5.6 Prioritize — Maintain underwriting standards and portfolio quality Financing — Deepen financing activities in asset backed markets businesses — Continue targeted investment in secured Co
Slide 12: Disciplined approach to lending
Disciplined approach to lending Q3 2019 loans at amortized cost(1), in € bn Measures Leveraged Debt Risk management Capital Markets — Well diversified across geographies and industries Commercial — Concentration risk managed within granular limit Other frameworks (with constraint on higher-risk segm
Slide 13: Key take-aways
Key take-aways Committed to reducing costs and to improving return on tangible equity to 7 – 8% in 2022 Stabilizing the franchise and setting solid foundations for growth Serving our clients and partnering with the Corporate Bank Mark Fedorcik, Ram Nayak 12 Investor Deep Dive, 10 December 2019
Slide 14: Appendix
Appendix
Slide 15: Financial overview
Financial overview In € bn 2017 2018 9M 2018 9M 2019 Revenues 8.3 7.5 6.1 5.4 Revenues ex specific items(1) 8.7 7.2 5.9 5.5 Noninterest expenses (6.7) (6.5) (5.0) (4.8) Adjusted costs (6.5) (6.2) (4.7) (4.6) Adj. costs ex transformation charges (6.5) (6.2) (4.7) (4.5) Profit before tax 1.5 0.9 1.0 0
Slide 16: Speaker biography
Speaker biography Mark Fedorcik joined Bankers Trust in 1995 before it was acquired by Deutsche Bank. Since then he has taken on various leadership roles within the Investment Bank, including Co-President of the Corporate & Investment Bank (CIB) in the Americas and Co-Head of Corporate Finance. Mark
Slide 17: Cautionary statements
Cautionary statements Non-IFRS Financial Measures This document contains non-IFRS financial measures. For a reconciliation to directly comparable figures under IFRS, to the extent not provided herein, please refer to the Financial Data Supplement which can be downloaded from www.db.com/ir. Forward-L