Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (November 2020)
24 slides from Deutsche Bank's debt investor presentation, November 2020
Slide 1: Deutsche Bank – Client & Creditor Presentation
Deutsche Bank Deutsche Bank – Client & Creditor Presentation November 2020
Slide 2: A German bank with a global network
A German bank with a global network Deutsche Bank is present in 59 countries(1) Largest bank in Germany with approx. 20m clients(1) Regional revenue split(1) 1,931 branches worldwide, of which 1,332 in Germany(1) APAC 13% Americas Germany 20% 41% Managing over € 1.2tn of wealth for clients(2) EMEA 2
Slide 3: Agenda
Agenda 1 Transformation progress 2 Balance sheet and fundamental strength 3 Creditor / counterparty considerations Deutsche Bank 3 Investor Relations
Slide 4: Delivering against key milestones
Delivering against key milestones Invest in Exit Create four client- Cut Manage and technology & businesses centric divisions costs liberate capital growth Focus on market leading Maintain conservative Exit from Equities Further improve businesses with Reduce adjusted costs(1) balance sheet with Tra
Slide 5: We have delivered a series of transformation milestones
We have delivered a series of transformation milestones - 81% of transformation related effects already behind us Outperformance Integration of Agreement on Further against financial De-risking within Corporate Bank closure of additional simplification of plan over the last 5 Capital Release Unit Ge
Slide 6: Supporting clients through COVID-19
Supporting clients through COVID-19 Loan # Customers Amount — More than 90% to Private Bank clients Legislative & voluntary ~104k € 9bn(2) — 80% relates to expired moratoria industry-driven moratoria(1) — Represents 2% of Group loan portfolio Voluntary bilateral — Bilateral forbearance mainly in the
Slide 7: Executing on our transformation
Executing on our transformation — Robust group performance with significant increase in Core Bank revenues and profitability — Strategic transformation well-advanced and beneficial in current environment Transformation — 11th consecutive quarter of annual adjusted cost reductions – outperformance ve
Slide 8: Strategic transformation drives growth in the Core Bank
Strategic transformation drives growth in the Core Bank In € bn Last 12 months (LTM) adjusted profit (loss) before tax(1) Refocus 3,7 Core Bank 2,4 55% Exit loss making businesses Capital (2.1) (2.4) Release Unit LTM Q3 2019(2) LTM Q3 2020 Focus on market Last 12 months (LTM) revenues ex. specific i
Slide 9: Improving efficiency and infrastructure
Improving efficiency and infrastructure In € bn Restructure Adjusted cost(1) 5.3 5.2 5.0 4.9 4.7 4.7 Reduce adjusted cost to € 17bn in 2022 81% of transformation- related effects already Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 absorbed 2019-2022 cumulative IT & Front-to-back cost reductions
Slide 10: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Our key focus areas Recent achievements Q3 achievements in blue – DB is ranked #3 on Deal-logic league tables for Green Bond volumes and helped clients raise more than € 27.2bn funding – Highlights of this quarter are Federal Republic of Germany’s inaugural Green Bond
Slide 11: Agenda
Agenda 1 Transformation progress 2 Balance sheet and fundamental strength 3 Creditor / counterparty considerations Deutsche Bank 11 Investor Relations
Slide 12: Maintained strong balance sheet
Maintained strong balance sheet Q1 2020 Q2 2020 Q3 2020 Common Equity Tier 1 285bps above regulatory 12.8% 13.3% 13.3% capital ratio requirements Deposit growth and loan facility Liquidity reserves € 205bn € 232bn € 253bn repayments € 76bn above regulatory Liquidity Coverage Ratio 133% 144% 151% req
Slide 13: We have transformed the balance sheet since 2009
We have transformed the balance sheet since 2009 After Netting(1), in € bn, as of 30 September 2020 995 891 Liquidity 253 85 Reserves Around a quarter of our balance sheet held in Liquidity Reserves Trading assets significantly reduced to ~25% of net Trading and 249 balance sheet related assets(2) 4
Slide 14: Strong capital position to support clients
Strong capital position to support clients Q3 2020 CET1 ratio 13.3% 10.4%(1) — CET1 ratio 285 bps (or € 9bn) above CET1 minimum regulatory requirement — Well positioned for excess capital distribution to shareholders from 2022 CET 1 capital CET1 capital requirement Leverage ratio ~5.0% 4.4% 3.75% 3.
Slide 15: Maintaining a sound liquidity profile
Maintaining a sound liquidity profile Q3 2020 Deutsche Bank’s liquidity reserves (in € bn) 246 243 253 222 232 205 200 64% 67% 66% 61% 55% 67% — Growth in year-to-date surplus liquidity driven by increase in 36% 33% 39% 45% 33% 34% stable and low cost TLTRO funding Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2
Slide 16: Low risk, well diversified loan portfolio
Low risk, well diversified loan portfolio Loans at amortized cost, in € bn, period end — Trade Finance and working capital, mainly short-term to German midcaps and global multinationals 433 — Commercial Banking loans to midcap and SME clients in Germany — Concentration risk subject to strict hedging
Slide 17: Strong credit quality versus peers
Strong credit quality versus peers Credit loss provisions vs. peers Loan loss reserves consistent with peers given our lower Credit loss provisions in relation to gross loans unsecured retail exposure in Q3 2020, in bps In % Loan Loss Reserves - % of total loans 10 4,0% 13 3,0% 25 25 2,0% 30 58 1,0%
Slide 18: Derivatives exposure – headline numbers materially overstate the economic risk
Derivatives exposure – headline numbers materially overstate the economic risk € bn, Q3 2020 IFRS derivative trading assets and the impact of netting and collateral — Gross notional derivative exposure amounts are not exchanged and relate only to the reference amount of all contracts. It is no refle
Slide 19: Level 3 assets – a small but natural part of our business
Level 3 assets – a small but natural part of our business € bn, Q3 2020 1,388 1.7% of — Level 3 classification is an accounting total indicator of valuation uncertainty due to assets lack of observability of at least one valuation parameter 23 — Variety of mitigants to valuation Total assets uncerta
Slide 20: Agenda
Agenda 1 Transformation progress 2 Balance sheet and fundamental strength 3 Creditor / counterparty considerations Deutsche Bank 20 Investor Relations
Slide 21: Depositors and counterparties are protected by €105bn loss-absorbing capacity
Depositors and counterparties are protected by € 105bn loss- absorbing capacity(1) Deposits ≤ €100k / Loss absorbing capacity as a % of RWA short-term liabilities(2) Q2 2020 Deposits > €100k of natural Loss participation persons / SMEs only if TLAC is exhausted Other deposits(3), operating liabiliti
Slide 22: Current Ratings
Current Ratings Moody‘s Investors S&P Global Fitch Ratings DBRS Services Ratings Counterparty obligations (e.g. Deposits / Structured Notes / A3 BBB+(1) BBB+ A (high) Derivatives / Swaps / Trade Finance obligations/ LOC‘s) Senior Preferred(2) A3 BBB+ BBB+ A (low) Long- term unse- cured Non-preferred
Slide 23: Simplified legal entity structure
Simplified legal entity structure Issuing Deutsche Bank AG Germany entities Americas EMEA APAC DWS DB AG DB AG DB AG DB AG DB AG New London York Branch Singapore Hong Kong Sydney Branch Branch Branch Branch USA Great Britain Singapore Hong Kong Australia Deutsche Bank, DB USA Deutsche Bank Polska De
Slide 24: 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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