Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2017 Earnings Presentation
43 slides from Deutsche Bank's earnings presentation, Apr 27, 2017
Slide 1: Deutsche Bank – Q1 2017 results
Deutsche Bank Deutsche Bank – Q1 2017 results 27 April 2017
Slide 2: Highlights
Highlights Reported y-o-y revenue decline driven by losses for DVA and V&T from tightening of DB credit spreads Clients reengaging Continued resolution of litigation matters Progress becoming visible in costs with declines in Adjusted Costs and FTE Capital raise completed in April 2017 resulting in
Slide 3: First signs of improvement visible
First signs of improvement visible € bn, unless otherwise stated Q1 2017 vs. Q1 2017 vs. Q1 2017 Q1 2016 Q4 2016 Q1 2016 Q4 2016 Net revenues 7.3 8.1 7.1 (9)% 4% Provision for credit losses (0.1) (0.3) (0.5) (56)% (73)% Noninterest expenses (6.3) (7.2) (9.0) (12)% (30)% (1) therein: Adjusted Costs (
Slide 4: Solid operating results overshadowed by negative valuation and timing differences
Solid operating results overshadowed by negative valuation and timing differences Net income Q1 2017 vs. Q1 2016, € m 575 — Net revenues down € 0.8bn, mainly Operating revenues (Q1 2017 €7.7bn)(6) driven by a negative y-o-y swing due to own credit impacting both 129 42 Derivative DVA in Global Marke
Slide 5: Further progress on cost reduction
Further progress on cost reduction Noninterest expenses, € bn Noninterest expenses Key facts -0.8 — Noninterest expenses of € 6.3bn are 9.0 € 0.8m (12%) lower than FX-adjusted Q1 2016 Impairments 1.1 / Policyholder Benefits and Claims(1) 7.2 7.2 — Adjusted Costs reduction of € 0.3bn 0.2 1.6 reflects
Slide 6: Decline of adjusted costs and further FTE reduction achieved
Decline of adjusted costs and further FTE reduction achieved Adjusted Costs, € m Adjusted Costs(1) Key facts Q1 16 — Adjusted costs were € 296m (4%) below Q1 2016 FX Q1 16 Q4 16 Q1 17 FX(2) — Compensation and benefits costs down € 20m vs. Q1 2016 FX. Compensation and Benefits 3,119 3,125 2,762 3,104
Slide 7: Further progress in resolving highest risk matters without material impact on the P&L
Further progress in resolving highest risk matters without material impact on the P&L Litigation update, € bn Litigation reserves Contingent liabilities 7.6 2.3 2.4 3.2 31 Dec 2016 31 Mar 2017 31 Dec 2016 31 Mar 2017 — Decrease due to settlement payments for major cases, — Includes possible obligati
Slide 8: Tier 1 capital further strengthened by capital raise in April
Tier 1 capital further strengthened by capital raise in April Tier 1 capital, CRD4, fully loaded, € bn Common Equity Tier 1 capital Tier 1 capital Additional Tier 1 capital Events in the quarter 4.6 4.6 4.6 — Q1 2017 CET1 capital up by € 0.2bn to € 42.5bn; Tier 1 capital of € 47.0bn 50.7 — € 0.6bn n
Slide 9: Stable RWA despite increasing client activity …
Stable RWA despite increasing client activity … RWA CRD4, fully loaded, € bn 11.8% CET1 ratio, fully loaded 11.9% 14.1% 13.4% CET1 ratio, phase-in 12.7% 14.9% Events in the quarter 5 — Q1 2017 fully loaded CET1 ratio of 11.9%, 4bps above 4Q 358 358 358 2016 (0) — Overall Q1 2017 RWA remained flat vs
Slide 10: … which at this stage largely translates into higher Leverage exposure
… which at this stage largely translates into higher Leverage exposure CRD4, fully loaded, € bn 3.5% Leverage ratio, fully loaded 3.4% 4.0% Events in the quarter 4.1% Leverage ratio, phase-in 4.0% 4.5% — Fully loaded Leverage ratio at 3.4% in Q1 2017 vs. 3.5% 18 in Q4 2016 1,377 1,369 — Leverage exp
Slide 11: Strong funding profile and high liquidity further strengthened
Strong funding profile and high liquidity further strengthened Funding and liquidity, 31 March 2017, € bn Well diversified funding profile Comments — € 242bn of Liquidity Reserves (€ 219bn December 2016) — 148% Liquidity Coverage Ratio (128% December 2016) Financing Equity, 6% (1) — Total Loss Absor
Slide 12: Hypothetical 100bps parallel curve shift modelled to have a positive impact on Net Interest Income
Hypothetical 100bps parallel curve shift modelled to have a positive impact on Net Interest Income NII Sensitivity, +100bps parallel shift impact by business line and main currencies, € bn EUR Delta Net interest income (€ bn) Long term (> 3M) Short term ( 3M) 1.3 — Significant NII improvement of € 1
Slide 13: Segment results
Segment results Deutsche Bank Q1 2017 results 13 Investor Relations 27 April 2017
Slide 14: GM: Solid opening quarter
GM: Solid opening quarter Income before income taxes Key features In € m In € m Q1 2017 Q1 2017 Q1 2017 Q1 2016 vs. Q4 2016 vs. 395 Q1 2016 Q4 2016 (1) Net revenues 2,595 2,818 (8)% 1,465 77% 240 Memo: Net revenues 2,834 2,672 6% 1,713 65% ex-CVA/DVA/FVA 332 Prov. for credit losses (13) (15) (16)% (
Slide 15: S&T revenues: Revenue growth across most products
S&T revenues: Revenue growth across most products Revenues Key y-o-y revenue drivers Debt S&T, in € m Debt Sales & Trading revenues 11% Q1 2017 FX revenues were lower as a low volatility environment impacted client flow Rates revenues were significantly higher with solid performance across 2,067 2,0
Slide 16: CIB: Good progress in Corporate Finance
CIB: Good progress in Corporate Finance Income before income taxes Key features In € m In € m Q1 2017 Q1 2017 Q1 2017 Q1 2016 vs. Q4 2016 vs. 636 Q1 2016 Q4 2016 Net revenues 1,814 1,821 (0)% 1,802 1% 462 429 Prov. for credit losses (44) (135) (67)% (245) (82)% 313 300 Noninterest exp. (1,308) (1,37
Slide 17: CIB: GTB revenues impacted by business perimeter reduction
CIB: GTB revenues impacted by business perimeter reduction Revenues Key y-o-y revenue drivers In € m Advisory Global Transaction Banking TFCMC(1) revenues down 4% primarily in trade where a refocus of client, Origination, Loan Products & Other product and country perimeter, consistent with our strat
Slide 18: PW&CC: Solid operating result
PW&CC: Solid operating result Income before income taxes Key features In € m In € m Q1 2017 Q1 2017 Q1 2017 Q1 2016 vs. Q4 2016 vs. 702 Q1 2016 Q4 2016 Net revenues 1,931 1,736 11% 2,379 (19)% Prov. for credit losses (45) (36) 24% (95) (52)% Noninterest exp. (1,566) (1,637) (4)% (1,582) (1)% IBIT 32
Slide 19: PW&CC BUs: Stable revenues excluding specific items
PW&CC BUs: Stable revenues excluding specific items Revenues Key y-o-y revenue drivers Private & Commercial Clients, in € m (1) Private & Commercial Clients (PCC) PCC revenues down 5% versus a strong Q1 2016. The decline is mostly attributable to a specific dividend payment from a PCC shareholding i
Slide 20: Postbank: Stable client revenues and good progress on cost reduction achieved
Postbank: Stable client revenues and good progress on cost reduction achieved Income before income taxes Key features In € m In € m Q1 2017 Q1 2017 Q1 2017 Q1 2016 vs. Q4 2016 vs. Q1 2016 Q4 2016 179 Net revenues 771 861 (10)% 824 (6)% Prov. for credit losses (32) (41) (22)% (63) (49)% 122 81 Nonint
Slide 21: AM: Net asset inflows evidence the return of client business
AM: Net asset inflows evidence the return of client business Income before income taxes Key features In € m In € m Impairments Q1 2017 Q1 2017 Q1 2017 Q1 2016 vs. Q4 2016 vs. Q1 2016 Q4 2016 Net revenues 607 691 (12)% 799 (24)% 216 181 162 171 Memo: Net revenues 1,021 607 648 (6)% 712 (15)% ex-Ab b
Slide 22: C&A: Material losses from valuation and timing differences
C&A: Material losses from valuation and timing differences Income before income taxes Key features In € m In € m Q1 2017 Q1 2017 Q1 2017 Q1 2016 vs. Q4 2016 vs. Q1 2016 Q4 2016 IBIT (406) 57 n.m. (425) (5)% thereof 57 42 V&T differences (1) (187) 172 n.m. (342) (45)% FVA (2) 4 (9) n.m. 111 (97)% (21
Slide 23: Outlook 2017
Outlook 2017 Macroeconomic outlook improved from prior year, but remains subject to geopolitical uncertainty Prior disposals (HXB, Abbey, US PCS) will impact prior year comparisons Expected growth from regained market share Remain focused on cost management; Adjusted Costs expected to decline in 201
Slide 24: Appendix
Appendix Deutsche Bank Q1 2017 results 24 Investor Relations 27 April 2017
Slide 25: Appendix: Table of Contents
Appendix: Table of Contents P&L details 26 CRD4 – Leverage Exposure and Risk Weighted Assets 36 Loan book 37 Impaired loans 38 Value-at-Risk 39 Invested assets 40 Headcount 42 Deutsche Bank Q1 2017 results 25 Investor Relations 27 April 2017
Slide 26: Q1 2017 Financials – Old vs. New Structure
Q1 2017 Financials – Old vs. New Structure € m, unless stated otherwise Old Structure Group GM CIB PW&CC Postbank AM C&A Revenues Revenues 7,346 2,595 1,814 1,931 771 607 (372) New Structure Group New CIB PCB AM C&A Revenues (pro-forma) 7,346 4,409 2,702 607 (372) Old Structure Group GM CIB PW&CC Po
Slide 27: Net revenues
Net revenues € bn € (0.7) bn (2) 8.1 7.4 7.5 7.1 7.3 Q1 Q2 Q3 Q4 Q1 2016 2017 Contribution to Group revenues ex Consolidation & Adjustments by business segment (1): GM 35% 33% 34% 20% 34% CIB 23% 25% 25% 24% 24% PW&CC 22% 25% 23% 32% 25% Postbank 11% 12% 10% 11% 10% AM 9% 10% 11% 11% 8% NCOU 0% (5)%
Slide 28: Revenues Q1 2017
Revenues Q1 2017 €m Operating revenues(5) 606 7,733 0 (187) 771 7,346 (185) (219) 1,913 19 1,814 2,814 GM (1) CIB PW&CC (2) PB AM (3) NCOU C&A (4) Operating (5) DVA V&T Disposals(6) Net revenues revenues (reported) Delta to Q1 2016: 198 (6) 101 (89) 28 (16) (140) 76 (421) (359) (18) (722) (1) Exclud
Slide 29: Provision for credit losses
Provision for credit losses €m Cost of Risk(1) Core NCOU Cost of Risk DB Group (1) Cost of Risk Core Bank (1) 492 31 304 327 0.60% 259 17 461 75 5 310 0.40% 254 133 0 0.20% 230 133 0.00% Q1 Q2 Q3 Q4 Q1 2016 2017 GM 15 39 30 58 13 CIB 135 115 178 245 44 PW&CC 36 66 57 95 45 Postbank 41 34 45 63 32 No
Slide 30: Key drivers of credit loss provisions in Q1 2017
Key drivers of credit loss provisions in Q1 2017 Industry and Regional Breakdown of € 133m CLPs, 31 Mar 2017 CLPs by major industries CLPs by major regions 6 19 (45) 1 (20) 133 133 39 65 66 Thereof: Oil & Gas: (3) Steel, Metals & Mining: (3) 31 88 GVA: (25) 35 47 6 9 32 Homogeneous(1) Shipping Indus
Slide 31: Reported and adjusted costs
Reported and adjusted costs Noninterest expenses, € bn Compensation and benefits 9.0 Noninterest expenses excl. compensation and benefits 7.2 6.7 6.5 6.3 6.2 4.0 3.8 3.7 3.2 3.2 3.0 2.9 2.8 3.1 Q1 Q2 Q3 Q4 Q1 2016 2017 Adjusted Costs (in € m) 6,668 6,032 5,852 6,181 6,336 excludes: Impairment of Goo
Slide 32: Indicative currency mix
Indicative currency mix Group net revenues / Noninterest expenses, Q1 2017, % — The information presented provides an illustrative currency 48% mix of DB’s results EUR 61% — It has been classified based primarily on the currency of the Group’s office in which the 17% revenues are recorded GBP 1% USD
Slide 33: Q1 2017: IBIT detail
Q1 2017: IBIT detail Q1 2017 In € m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM 240 (239) (35) 27 0 CIB 462 0 (26) 0 0 PW&CC 320 0 37 (3) 0 Postbank 81 0 (1) 6 0 AM 181 0 (4) 1 0 C&A (406) 4 (0) (0) 0 Group 878 (235) (29) 31 0 Note: Figures may not add up due to roundi
Slide 34: Q1 2016: IBIT detail
Q1 2016: IBIT detail Q1 2016 In € m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM 395 145 (91) 68 0 CIB 313 0 (94) 0 0 PW&CC 63 0 (70) (4) 0 Postbank 122 0 (1) (4) 0 AM 162 0 (23) (1) 0 C&A 57 (9) 0 (5) 0 NCOU (533) (52) (6) (242) 0 Group 579 84 (285) (187) 0 Note: Figur
Slide 35: Post-tax RoTE
Post-tax RoTE € m, unless otherwise stated GM CIB PW&CC Postbank AM NCOU C&A Group Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 IBIT 240 395 462 313 320 63 81 122 181 162 - (533) (406) 57 878 579 Taxes (1) 79 137 152
Slide 36: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, fully loaded, € bn Leverage Exposure vs. RWA(1) CRD4 – Leverage Exposure RWA 1,348 1,369 260 260 Non-derivative trading assets 169 64 64 187 37 Market Risk RWA 33 CVA 8 Derivatives(2) 215 213 36 Lending 403 400 117 Reverse repo / 250 Credit Risk RWA 2
Slide 37: Loan book
Loan book € bn 429 433 428 414 413 GM 58 61 61 66 63 CIB 97 97 93 81 83 PW&CC 162 163 163 160 161 DAM 0 0 0 0 0 PB 104 105 105 105 105 NCOU 8 6 5 3 31-Mar 31-Mar 30-Jun 30-Sep 31-Dec 2016 2017 Note: Loan amounts are gross of allowances for loan losses. Figures may not add up due to rounding differen
Slide 38: Impaired loans
Impaired loans(1) Period-end, € bn Non-Core Operations Unit Core Impaired loan ratio Core Bank (3) Impaired loan ratio Deutsche Bank Group (3) 7.6 7.4 7.5 7.4 6.9 1.6 1.3 1.1 0.8 2.00% 1.80% 1.60% 1.40% 1.20% 6.4 6.7 6.9 1.00% 6.0 6.1 0.80% 0.60% 0.40% 0.20% 0.00% Q1 Q2 Q3 Q4 Q1 2016 2017 Coverage 6
Slide 39: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, € m Average VaR Stressed VaR (1) EUR 2.8 bn Sales & Trading revenues EUR 3.0 bn 180 160 140 120 100 80 60 40 20 37 37 28 27 32 98 89 77 78 76 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 (1) Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses a h
Slide 40: Invested Assets / Client Assets – PW&CC
Invested Assets / Client Assets – PW&CC € bn (3) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Invested Assets 525 514 492 503 479 480 438 424 432 (1) Assets under Administration 153 154 149 153 151 156 150 154 157 Client Assets 678 668 642 656 630 636 588 577 589 Breakdown
Slide 41: Invested Assets / Client Assets – AM
Invested Assets / Client Assets – AM € bn 4Q2016 decline includes Abbey Life deconsolidation impact Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Invested Assets 773 755 726 744 711 719 715 706 723 Assets under Administration (1) 54 53 51 54 57 63 65 68 67 Client Assets 828
Slide 42: Group headcount
Group headcount Full-time equivalents, at period end 31 Mar 2017 31 Mar 2016 30 Jun 2016 30 Sep 2016 31 Dec 2016 31 Mar 2017 vs. 31 Dec 2016 GM 4,869 4,754 4,832 4,810 4,578 (232) CIB 7,423 7,299 7,353 7,224 7,073 (151) PW&CC 25,810 25,684 25,180 24,686 24,176 (510) Postbank 18,888 18,728 18,511 18,
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