Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (April 2022)
35 slides from Deutsche Bank's debt investor presentation, Apr 29, 2022
Slide 1: Q1 2022 Fixed Income Investor Conference Call
Deutsche Bank Q1 2022 Fixed Income Investor Conference Call 29 April 2022
Slide 2: Results support trajectory to FY targets and ambitions
Results support trajectory to FY targets and ambitions Q1 2022 Performance Profitability Resilience Group revenues of € 7.3bn, Ongoing improvements in Continued prudent risk +1% YoY, with growth across profitability, with € 1.2bn of management through elevated all four core businesses after-tax prof
Slide 3: Progress on strategic priorities in core businesses
Progress on strategic priorities in core businesses Q1 2022 Loan and deposit growth 7% Strong client activity in FIC, 17% Investment Bank driving NII increase, Corporate Bank with year-on-year growth supported by interest rate RoTE RoTE across both institutional and tailwinds corporate clients
Slide 4: Russia: impact continues to be carefully monitored
Russia: impact continues to be carefully monitored Loan exposure reduced to € 1.3bn; net loan exposure reduced to € 0.5bn, with contingent risk Exposure(1) also significantly reduced and overall low levels of direct market risk exposure Existing controls, as a result of continued investments, suppor
Slide 5: Positive operating performance
Positive operating performance In € bn, unless stated otherwise Core Bank revenues(1) Group noninterest expenses Group 7.2 7.3 CIR 77% 73% Average (4)% +7% 7.3 5.6 7.2 0.1 5.4 Corporate 1.5 +11% 0.8 0.8 1.3 Divisional growth rates Bank Investment 3.3 +7% 3.1 Bank 4.7 4.6 Private Bank 2.2 2.2 +2% Ass
Slide 6: Resilient loan & deposit development
Resilient loan & deposit development In € bn Loan development Comments QoQ YoY 481 — Normalized lending growth of € 2bn compared to Q4 456 476 1% 9% 440 445 2021 adjusted for FX effects 7 6 4 9 7 93 94 1% 32% — Loan growth in FIC offset by episodic Q4 2021 71 75 80 effects in the Investment Bank as
Slide 7: Deposit repricing momentum continued in Q1 2022
Deposit repricing momentum continued in Q1 2022 In € bn, unless otherwise stated Quarterly charging revenues, in € m Comments QoQ 139 +11% 126 — Further increase in quarterly revenues by 11% 108 20 +15% 94 17 driven by Corporate Bank and Private Bank 80 12 8 — Q1 annualized run-rate of € 557m, up €
Slide 8: Net interest margin expected to have bottomed in 2021
Net interest margin expected to have bottomed in 2021 Evolution of Group NIM and average interest earning assets Comments Average interest earning assets, in € bn(1) Net interest margin, in %(2) — NIM decline in H1 2020 driven by 1.46% reduced U.S. base rates, largely 1.37% neutralized in P&L throug
Slide 9: Strong liquidity position in-line with targets
Strong liquidity position in-line with targets Liquidity coverage ratio(1) Comments High-quality liquid assets, in € bn Surplus above requirements 146% 143% 137% 133% 135% ~130% € 70bn € 67bn € 59bn € 52bn € 55bn ~ €50bn — Liquidity remains robust and close to targeted levels, despite recent market
Slide 10: CET1 ratio impacted by higher RWA
CET1 ratio impacted by higher RWA In € bn, except CET1 ratio movements (in basis points), period end CET1 ratio Comments 13.2% — CET1 ratio down 41bps compared to Q4 2021: 12.8% — (37)bps from RWA changes, including (20)bps (1) (37) (3) from ECB-mandated model adjustments with the remainder from inv
Slide 11: Capital ratios well above regulatory requirements
Capital ratios well above regulatory requirements In %, unless stated otherwise, as of 31 March 2022 250bps pro-forma MDA buffer incl. 21bps benefit of € 0.75bn AT1 issued Comments 17.3 on 28 March settled on 4 April 2022 229bps T2 2.7 15.0 AT1 1.8 2.6 T2 requirement(4) — Buffer to CET 1 ratio capit
Slide 12: Leverage ratio impacted by AT1 call
Leverage ratio impacted by AT1 call In € bn, except movements (in bps), period end 4.9% Comments (2) 4.6% (12) (16) Q4 2021 FX Effect Leverage Capital Q1 2022(1) exposure change — Leverage ratio decreased by 30bps in the quarter: change — (2)bps from FX translation effects Tier 1 54.8 0.3 - (1.9) 53
Slide 13: Significant buffer over loss-absorbing capacity requirements
Significant buffer over loss-absorbing capacity requirements Loss-absorbing capacity, in € bn, as of 31 March 2022 Comments Surplus above requirement 119 Senior preferred(1) 9 15 20 — Q1 2022 loss-absorbing capacity Senior 28 significantly above all regulatory non- 46 requirements, with MREL remaini
Slide 14: Substantial portion of issuance plan already achieved in Q1
Substantial portion of issuance plan already achieved in Q1 In € bn, unless stated otherwise Covered Bonds Senior Structured/Preferred Senior Non-Preferred AT1 / T2 26 24 1 2 19 20 5 1 15-20 7 4 7 14 14 2-3 12 1-3 12 1 11 2 2 8 1 3 3 19 2 12 12 3 10 1 9-10 6 3 7 4 7 7 3 3-4 4 5 3 3 4 2 3 2 1 Q1 FY I
Slide 15: Outlook
Outlook Operating environment increasingly challenging in light of macroeconomic uncertainty Anticipated near-term risks well contained, supported by prudent risk management Strong revenue momentum in core businesses continues to support 2022 targets Ongoing focus on cost discipline, anticipating pr
Slide 16: Appendix
Appendix Deutsche Bank Q1 2022 Fixed Income Investor Call Investor Relations 29 April 2022
Slide 17: Financial and regulatory targets for FY 2022
Financial and regulatory targets for FY 2022 Group post-tax return on average tangible equity 8% Core Bank post-tax return on average tangible equity >9% Cost/income ratio 70% Common Equity Tier 1 capital ratio >12.5% Leverage ratio (fully loaded) ~4.5% Deutsche Bank Q1 2022 Fixed Income Investor Ca
Slide 18: Q1 2022 Group financial highlights
Q1 2022 Group financial highlights In € m, unless stated otherwise Change in % Change in % Q1 2022 vs. Q1 2021 vs. Q4 2021 Revenues 7,328 1 24 Revenues Revenues ex specific items(1) 7,330 1 24 Noninterest expenses 5,377 (4) (3) Costs Adjusted costs 5,385 (1) 4 Profit (loss) before tax 1,658 4 n.m. P
Slide 19: Russia: credit risk overview
Russia: credit risk overview Loan exposure to Russia Additional contingent risk € 1.3bn (1) € 0.5 bn € 1.0bn on a net basis(2) Material operations and cash flows outside € 1.1 bn of Russia Booked offshore € 0.8bn Largely mitigated via − Export Credit Agency coverage Large Russian € 0.4bn on
Slide 20: Balance sheet of Russia subsidiary OOO Deutsche Bank
Balance sheet of Russia subsidiary OOO “Deutsche Bank” Balance Sheet Capital Liquidity € 1.5bn € 0.2bn (1) ~€ 0.4bn excess liquidity in foreign currency placed Deposits with DB with Group AG for currency ~€ 0.4bn Assets management ~€ 0.9bn of Central Bank > 20% CET1 ratio cash (RUB) Small, sho
Slide 21: Conservatively managed balance sheet
Conservatively managed balance sheet Net(1) in € bn, as of 31 March 2022 Comments Assets Liabilities & equity 1,016 1,016 Trading and Liquidity 151 related liabilities(3) reserves(2) 246 43 Other liabilities(5) — Resilient balance sheet — Liquidity reserves account for 24% of net Trading and balance
Slide 22: Current ratings
Current ratings As of 29 April 2022 Moody‘s Investors S&P Global Fitch Ratings DBRS Services Ratings Counterparty obligations (e.g. deposits / structured notes / A2 A-(1) A- A (high) derivatives / swaps / trade finance obligations) Senior Preferred(2) A2 A- A- A (low) Long- term unse- cured Non-pref
Slide 23: Additional Tier 1 instruments outstanding
Additional Tier 1 instruments outstanding Original Current Nominal Next call Issuer ISIN issuance Subsequent call period coupon outstanding date date Deutsche Bank Frankfurt US251525AN16 7.500% $ 1500m 21 Nov 14 30 Apr 25 Every 5 years Deutsche Bank Frankfurt XS1071551474 4.789% $ 1250m 27 May 14 30
Slide 24: Additional funding disclosure
Additional funding disclosure Capital markets issuance outstanding, in € bn, Q1 2022 By product By currency Senior Senior Capital instruments EUR USD GBP Other non-preferred structured (T1/T2) Senior Covered preferred bonds 6 3 21 53 14 110 bn 110 bn 57 43 16 6 Note: Numbers may not add up due to ro
Slide 25: Net interest income sensitivity
Net interest income sensitivity Hypothetical +100bps parallel shift impact, in € bn First year Second year 1.0 0.6 0.4 0.4 0.2 0.2 Retail Non-retail Group Retail Non-retail Group Maturity Maturity > 3M 0.3 0.1 0.4 > 3M 0.6 0.2 0.8 EUR EUR ≤ 3M -0.1 0.1 0.0 ≤ 3M -0.1 0.2 0.0 > 3M 0.0 0.0 0.1 > 3M 0.1
Slide 26: Provision for credit losses
Provision for credit losses In € m, unless stated otherwise Stage 1 + 2 Comments Stage 3 761 252 — Moderate quarter-on-quarter increase driven by war in Ukraine 506 — Elevated Stage 1+2 provisions relate to 273 Russian exposure migration and 230 251 additional overlays to reflect 292 macroeconomic u
Slide 27: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, fully loaded, in € bn, period end Leverage exposure Risk weighted assets 364 364 60 Operational Risk RWA 60 1,125 1,164 Market Risk RWA Trading assets 99 111 31 22 Credit valuation 6 24 adjustments Derivatives(1) 138 143 Lending 480 488 143 250 Credit
Slide 28: Litigation update
Litigation update In € bn, period end Litigation provisions(1) Comments 0.9 1.0 1.1 1.1 0.8 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 ― Provisions remained stable quarter on quarter ― Contingent liabilities remained stable quarter on quarter. Contingent liabilities include possible obligations where a
Slide 29: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Q1 2022 highlights Our key focus areas Recent achievements – Increase of cumulative volumes in sustainable financing and investment to € 177bn (1), with significant growth in all businesses Sustainable – As announced on IDD, DB plans to generate € 500bn in sustainable
Slide 30: Sustainability strategy well on track
Sustainability strategy well on track In € bn, cumulative since 2020 Sustainable Finance(1) volumes vs. target 46 157 177 Increase in ambition >500 Former ambition >400 >300 Targets >200 YE 2020 YE 2021 Q1 2022 2022 2023 2024 2025 Reported volumes by business and product type Key achievements in Q1
Slide 31: Deutsche Bank's performance in leading ESG Ratings
Deutsche Bank’s performance in leading ESG Ratings Overview of core ESG Ratings as of 31st March 2022 Score Range Rating Rating Agency ESG Rating Criteria (Weighting) (best to Rating Development Score DB worst) ▪ Environment (15%) ▪ Social (50%) AAA to CCC A Stable at A ▪ Governance (35) ▪ Corporate
Slide 32: Simplified legal entity structure
Simplified legal entity structure Entities without Branches Subsidiaries Deutsche Bank AG Issuing direct issuance Germany entities activities Americas EMEA APAC DWS DB AG DB AG DB AG DB AG DB AG New London Singapore Hong Kong Sydney York Branch Branch Branch Branch Branch USA Great Britain Singapore
Slide 33: Definition of adjustments
Definition of adjustments Revenues excluding specific items are calculated by adjusting net revenues under IFRS for specific revenue items which Revenues generally fall outside the usual nature or scope of the business and are likely to distort an accurate assessment of the excluding specific divisi
Slide 34: Specific revenue items and adjusted costs – Q1 2022
Specific revenue items and adjusted costs – Q1 2022 In € m Q1 2022 Q1 2021 Q4 2021 Core Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Bank Revenues 1,461 3,322 2,220 682 (353) 7,333 (5) 7,328 1,313 3,097 2,178 637 (73) 7,152 81 7,233 1,352 1,913 2,
Slide 35: Cautionary statements
Cautionary statements Forward-looking 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
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