Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q2 2013 Earnings Presentation
48 slides from Deutsche Bank's earnings presentation, Jul 30, 2013
Slide 1: 2Q2013 results
Deutsche Bank Deutsche Bank 2Q2013 results 30 July 2013
Slide 2: Agenda
Agenda 1 Group results 2 Segment g results 3 Key current issues Deutsche Bank 2Q2013 results financial transparency. 2 Investor Relations 30 July 2013
Slide 3: Overview
Overview 2Q2013 2Q2012 Income before income taxes (in EUR bn) 0.8 1.0 Net income (in EUR bn) 0.3 0.7 Profitability Post-tax return on average active equity 2.4% 4.7% Diluted EPS (in EUR) 0.32 0.69 30 Jun 2013 31 Mar 2013 Core Tier 1 capital ratio 13.3% 12.1% Capital Tier 1 capital ratio 17.3% 16.0%
Slide 4: Group financial performance – 2Q2013
Group financial performance – 2Q2013 2Q2013 Non-Core In EUR m Group Core Bank (1) Operations Unit Net revenues 8,215 8,022 193 Provision for credit losses (473) (299) (174) Total noninterest expenses (6,950) (6,232) (718) N Noncontrolling t lli interest i t t 0 0 0 IBIT (reported) 792 1,490 (699) In
Slide 5: Net revenues
Net revenues In EUR bn 9.2 9.4 8.6 8.2 8.0 7.9 1Q 2Q 3Q 4Q 1Q 2Q 2012 2013 Deutsche Bank 2Q2013 results financial transparency. 5 Investor Relations 30 July 2013
Slide 6: Provision for credit losses
Provision for credit losses In EUR m Non-Core Operations Unit Core Bank 555 473 418 434 300 105 354 174 314 138 87 91 281 328 299 223 255 267 1Q 2Q 3Q 4Q 1Q 2Q 2012 2013 CB&S 32 10 23 58 48 28 GTB 32 47 35 53 96 77 PBC 160 216 189 216 111 194 Note: Divisional figures do not add up due to omission of
Slide 7: Noninterest expenses
Noninterest expenses In EUR bn 10.6 Compensation and benefits 3.2 General and administrative expenses 7.0 66 6.6 7.0 66 6.6 6.9 Other noninterest expenses(1) 3.6 3.4 3.3 3.2 5.3 3.5 32 3.2 3.3 32 3.2 2.8 36 3.6 (0.0) 0.4 2.1 0.2 0.3 0.2 1Q 2Q 3Q 4Q 1Q 2Q 2012 2013 C Compensation ti ratio, ti ini % 4
Slide 8: Progress on Operational Excellence Program
Progress on Operational Excellence Program Targeted CtA and savings Program to date progress In EUR bn In EUR bn CtA p per yyear Cumulative savings g 1H2013 I Invested/achieved t d/ hi d 2H2012 4.5 4.5 4.0 2014 target 2.9 2014 target 2013 target 1.7 1.6 1.5 2013 target 1.1 1.1 0.6 1H2013 0.6 0.7 1H2
Slide 9: Initiatives with savings of EUR 2.4 bn already validated with execution ramping up
Initiatives with savings of EUR 2.4 bn already validated with execution ramping up 100% 93% EUR 1.1 bn savingsg already realized across categories 53% 22% Percent of 4% target 2015 Underlying savings 4.5 bn 4.2 bn 2.4 bn 1.0 bn 0.2 bn EUR bn Number of programs/ >160 ~160 160 ~100 100 ~25 25 ~5 5 ini
Slide 10: Profitability
Profitability Income before income taxes Net income In EUR bn Adjusted IBIT(2) In EUR bn 24 2.4 1.9 1.7 1.1 1.4 1.0 0.3 0.8 0.8 0.7 0.3 (2.5) (3.2) 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 2012 2013 2012 2013 Post-tax return on equity(1), in % Effective tax rate, in % 10 5 5 (18) 12 2 25 31 33 21 31 58 F
Slide 11: Basel 2.5 – Capital ratios and risk-weighted assets
Basel 2.5 – Capital ratios and risk-weighted assets 17.3 16 0 16.0 15.1 Tier 1 capital ratio, in % 13.4 13.6 14.2 13.3 11.4 12.1 Common Equity Tier 1 10.0 10.2 10.7 ratio, in % 368 373 366 334 325 314 RWA, in EUR bn 1Q 2Q 3Q 4Q 1Q 2Q 2012 2013 Note: Tier 1 ratio = Tier 1 capital / RWA; Common Equity
Slide 12: Basel 2.5 – Common Equity Tier 1 capital and RWA development
Basel 2.5 – Common Equity Tier 1 capital and RWA development Common Equity Tier 1 capital RWA In EUR bn In EUR bn 0.3 0.0 3.0 41.7 324.9 39.3 (0.2) (0.4) (0.3) (2.1) (2.8) 314.3 (2.4) (3 3) (3.3) 31 Mar Capital Net Dividend Actuarial Other FX 30 Jun 31 Mar FX effect Credit Market Operational 30 Jun
Slide 13: Reconciliation to Basel 3 pro-forma (fully loaded)
Reconciliation to Basel 3 pro-forma (fully loaded)(1) In EUR bn, bn as per 30 Jun 2013 RWA Common Equity Tier 1 capital 13.3% 14.8% 10.0% B 3 phase-in B 3 fully loaded B 3 phase-in B 3 fully loaded 58 372 367 2 55 11 314 ((6)) 42 37 (19) (3) (3) B 2.5 Incremental Total Incremental Total B 2.5 T1 Inc
Slide 14: RWA density vs. loan loss experience
Clear positive correlation between risk weighted asset density and loan loss experience RWA density vs. 5 year average loss 80 70 F G 60 n %)(1) H 50 E RWA density (in C 40 30 D A B 20 10 0 0 100 200 300 400 Average Loan Loss Ratio 2008-2012 (in bps)(2) Note: Numbers based on publicly disclosed data
Slide 15: Agenda
Agenda 1 Group results 2 Segment g results 3 Key current issues Deutsche Bank 2Q2013 results financial transparency. 15 Investor Relations 30 July 2013
Slide 16: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m In EUR m 2Q13 vs. 2Q13 vs. 2Q13 2Q12 1Q13 Impairment p of g goodwill and other intangible g assets 2Q12 1Q13 1,852 Revenues (1) 3,710 3,396 4,604 9% (19)% 1,881 Prov. for credit (28) (10) (48) 189 % (42)% losses 1,083 No
Slide 17: Sales & Trading debt and other products
Sales & Trading debt and other products Revenues Key features In EUR m Overall 2Q13 2Q12 1Q13 1H2013 1H2012 — Resilient performance y-o-y y o y across most products Revenues — Revenues were affected by higher volatility, lower liquidity, and a broad Prov.sell for off across asset classes credit 3,16
Slide 18: Sales & Trading equity
Sales & Trading equity Revenues Key features In EUR m Overall 2Q13 2Q12 1Q13 1H2013 1H2012 — Strong performance performance, up 55% yy-o-y, o y driven by significantly higher revenues Revenues in Cash Equities and Equity Derivatives Prov. for credit losses 766 787 Cash Equities Noninterest — Signifi
Slide 19: Origination & Advisory
Origination & Advisory Revenues Key features In EUR m Origination Overall 2Q13 2Q12 1Q13 1H2013 1H2012 Advisory — Strong performance performance, revenues up 45% y-o-y y o y, driven by greater market Revenues activity and market share gains 738 Prov. for credit — Highest ever global market share of
Slide 20: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m In EUR m 2Q13 vs. 2Q13 vs. 2Q13 2Q12 1Q13 Impairment p of g goodwill and other intangible g assets 2Q12 1Q13 Revenues 994 979 992 1% 0% 322 Prov. for credit 320 294 324 309 losses (77) (47) (96) 64 % (19)% Noninterest exp. (
Slide 21: Deutsche Asset & Wealth Management
Deutsche Asset & Wealth Management Income before income taxes Key features In EUR m In EUR m 2Q13 vs. 2Q13 vs. 2Q13 2Q12 1Q13 Impairment p of g goodwill and other intangible g assets 2Q12 1Q13 Revenues(1) 1,039 981 1,243 6% (16)% 208 222 Prov. for credit (0) (8) (13) (98)% (99)% losses 98 114 82 Non
Slide 22: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m In EUR m 2Q13 vs. 2Q13 vs. 2Q13 2Q12 1Q13 2Q12 1Q13 507 Revenues 2,447 2,304 2,384 6% 3% 460 482 Prov. for credit (194) (216) (111) (10)% 74 % 404 losses 367 Noninterest exp. (1,746) (1,713) (1,790) 2% (2)% 287 IBIT 507 367
Slide 23: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 2Q13 vs. 2Q13 vs. 2Q13 2Q12 1Q13 2Q12 1Q13 IBIT (205) (72) (255) 182 % (20)% thereof V&T differences (1) (9) (61) (159) (85)% (94)% (72) FX hedging of (100) (92) (79) 9% 27 % net investments Bank levies (26) (23) (
Slide 24: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 2Q13 vs. 2Q13 vs. 2Q13 2Q12 1Q13 Impairment p of g goodwill and other intangible g assets 2Q12 1Q13 Revenues 193 414 427 (53)% (55)% (1,225)(5) Prov. for credit (174) (138) (87) 27 % 100 % losses (216) (196) Nonintere
Slide 25: NCOU adjusted assets EUR 7 bn ahead of year end target
NCOU adjusted assets EUR 7 bn ahead of year end target De-risking successes since June 2012 Size of Non-Core Operations Unit Adjusted assets(1), in EUR bn — Basel 3 RWA equivalent reduction of 43%. At year end target 120(2) — Adjusted assets down 39% surpassing year end target 95 — Basel 3 regulator
Slide 26: Agenda
Agenda 1 Group results 2 Segment g results 3 Key current issues Deutsche Bank 2Q2013 results financial transparency. 26 Investor Relations 30 July 2013
Slide 27: CRD4 will be legal basis for regulatory leverage in Europe
CRD4 will be legal basis for regulatory leverage in Europe Exposure measure under CRD4 – June 2013 CRD 4 gross-up Bridge from total assets adjusted / total assets IFRS, in EUR bn Derivatives: Derivatives — Regulatory add-on add on(1) Non-derivative exposure — Add-back of cash collateral received 1,9
Slide 28: CRD4 leverage ratio
CRD4 leverage ratio As of 30 June 2013, 2013 in EUR bn x x% x.x% Leverage ratio 1,583 Tier 1 capital CRD4 3.5% 3.0% gross-up 413 11 (19) Total 55 adjusted 1 170 1,170 assets 48 Total CRD4 Phase-in Fully loaded Eligible AT1 Adjusted exposure CT1 deduction capital(1) fully loaded(2) N t Note: Fi Figur
Slide 29: Leverage toolbox: Flexibility to comply with CRD4 requirements
Leverage toolbox: Flexibility to comply with CRD4 requirements CRD4 exposure Leverage toolbox In EUR bn, as of 30 Jun 2013 Asset measures 1,583 CRD4 gross-up: gross up: — Clearing house netting 413 — Tear-ups / trade compression CRD4 gross-up EUR 120 – 170 bn — Review of unutilized lending commitmen
Slide 30: Appendix
Deutsche Bank Appendix
Slide 31: Funding activities update
Funding activities update Funding cost development Observations In bps European Peer CDS(1) — Funding plan of up to EUR 18 bn for 360 US Peer CDS(2) 2013 DB 5yr Senior CDS 320 DB issuance spread(3) 280 DB issuance volume — Issuance at EUR 12.8 bn per mid-July at average L+43 bps (ca. 55 bps inside 2
Slide 32: Funding Profile
Funding Profile Funding well diversified Highlights 2Q2013 As of 30 Jun 2013 — Funding liabilities reduced slightly, mainly in Financing Vehicles discretionary wholesale and secured 2% 63% from most stable funding and shorts funding sources Secured Funding Capital Markets — Most stable funding sourc
Slide 33: Litigation
Litigation Mortgage repurchase Litigation reserves Contingent liabilities(1) demands/reserves In EUR bn In EUR bn In USD bn Demands Reserves ~5.9 ~3.0 ~5.3 ~1.3 ~2.4 ~1.2 ~0 0.5 5 ~0 0.5 5 31 Mar 2013 30 Jun 2013 31 Mar 2013 30 Jun 2013 31 Mar 2013 30 Jun 2013 — The bulk of the bank’s current legal
Slide 34: Balance sheet and risk weighted assets
Balance sheet and risk weighted assets XX RWA density incl. operational risk RWA(1) vs. balance sheet (adj. assets) XX RWA density excl. operational risk In EUR bn, as of 30 Jun 2013 ~27% 265 265 ~23% 1,170 , Avg RWA density Avg. Non-derivative Market Risk RWA 55 64 64 trading assets 59 ~25% 237 ~27
Slide 35: Total assets (adjusted)
Total assets (adjusted) In EUR bn 1,225 Derivatives post- Derivatives post- Positive market values netting 1,170 netting 72 from derivatives 70 Trading securities 226 Financial assets 251 Trading assets 210 at FV through P&L 237 Trading assets Other trading assets 25 Reverse repos / 27 securities bo
Slide 36: NCOU: Total adjusted assets
NCOU: Total adjusted assets Total adjusted assets(1) – 31 Mar 2013 Total adjusted assets(1) - 30 June 2013 In EUR bn In EUR bn AWM IAS 39 re- AWM IAS 39 re- classified classified assets CI assets CI 1.5 1.5 15.4 17.0 15.3 11.7 15 6 15.6 14.4 Other Other PBC: Other 4.2 7.3 6.1 loans PBC: Other 3.8 5.
Slide 37: Impaired loans
Impaired loans(1) In EUR bn Core Bank Non-Core Operations unit 10.5 10.9 10.3 10.1 98 9.8 93 9.3 3.8 4.2 4.4 4.0 3.7 3.2 60 6.0 62 6.2 64 6.4 63 6.3 64 6.4 61 6.1 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2012 2013 Cov. 42% 42% 42% 45% 48% 54% Ratio(2) Note: Figures may not add up due to rounding di
Slide 38: Loan book
Loan book In EUR bn 412 415 408 402 400 393 NCOU 63 58 54 50 43 34 DeAWM 27 29 29 30 29 30 PBC 208 209 211 209 211 211 GTB 59 60 59 59 65 66 CB&S 55 58 56 54 52 52 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2012 2013 Germany excl. Financial Institutions and Public Sector: 180 178 181 181 182 182 Note
Slide 39: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR bn, bn as of 30 Jun 2013 Core Bank 473 2Q2013 provision for credit losses, in EUR m Non-Core Operations Unit 215 59 199 393 ― Low loan to value 34 (8) ― Partially hedged ― Highly diversified― Mostly (1) ― Short collate- ― Sub- S b (153) term
Slide 40: Group headcount
Group headcount Full-time Full time equivalents equivalents, at period end 30 Jun 2013 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun vs. 2012 2012 2012 2013 2013 31 Mar 2013 CB&S 9,685 9,468 8,979 8,728 8,543 (185) GTB 4,457 4,507 4,497 4,450 4,388 (62) DeAWM 7,006 6,890 6,554 6,419 6,344 (75) PBC 40,253 40,21
Slide 41: IAS 39 reclassification
IAS 39 reclassification Carrying Value vs. Fair Value 2Q2013 developments In EUR bn — The gap between carrying value and fair value has Dec Dec Dec Dec Mar Jun decreased by EUR 0.1 bn in 2Q2013 2009 2010 2011 2012 2013 2013 — Decrease of fair value by EUR 3.4 bn as well as Carrying Value 33.6 26.7 2
Slide 42: PBC business division performance
PBC business division performance In EUR m, m post post-minorities minorities FY2011 1Q2012 2Q2012 3Q2012 4Q2012 FY2012 1Q2013 2Q2013 Reported IBIT 522 233 137 93 5 468 118 126 Cost-to-achieve (180) (28) (42) (49) (149) (268) (51) (59) Advisory (2) B ki Banking PPA (1) Impact from Greek government b
Slide 43: Regional invested assets - DeAWM
Regional invested assets - DeAWM In EUR bn 30 Jun 2013 30 Jun 2013 30 Jun 2012 30 Sep 2012 31 Dec 2012 31 Mar 2013 30 Jun 2013 vs. vs. 31 Mar 2013 30 Jun 2012 Americas 292 296 286 300 281 (19) (11) Asia Pacific 52 54 55 58 54 (4) 2 EMEA excl. Germany 288 295 293 281 281 (1) (7) Germany 294 304 310 3
Slide 44: Invested assets - PBC
Invested assets - PBC In EUR bn 30 Jun 2013 30 Jun 2013 30 Jun 2012 30 Sep 2012 31 Dec 2012 31 Mar 2013 30 Jun 2013 vs. vs. 31 Mar 2013 30 Jun 2012 Private & Business Clients 294 297 293 290 285 (5) (9) Investment & Insurance Products 136 138 139 142 141 (1) 5 Deposits excl. Sight Deposits 158 158 1
Slide 45: Number of shares
Number of shares In million Average used for EPS calculation End of period numbers 31 Dec 31 Dec 30 Jun FY2011 FY2012 2Q2013 2011 2012 2013 Common shares issued 929 929 987 929 929 1,019 Total shares in treasury (17) (9) (1) (25) 0 0 Common shares outstanding 913 921 986 905 929 1,019 Vested share a
Slide 46: Balance sheet leverage ratio (adjusted)
Balance sheet leverage ratio (adjusted) In EUR bn, bn except ratios 2012 2013 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun Total assets ((IFRS)) 2,111 2,249 2,194 2,022 2,033 1,910 Adjustment for additional derivatives netting(1) (688) (782) (741) (705) (642) (571) Adjustment for additional pending set
Slide 47: Value-at-Risk
Value-at-Risk DB Group, Group 99% 99%, 1 day day, in EUR m Average VaR Constant VaR(1) EUR 2.6 bn Sales & Trading g revenues EUR 2.7 bn 120 100 80 60 40 20 57 56 60 59 55 30 30 33 32 31 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 (1) Constant VaR is an approximation of how the VaR would h
Slide 48: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts;; they y include statements about our beliefs and expectations p and the assumptions p underlying y g them. These statements are based on plans, estima