Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (April 2021)
35 slides from Deutsche Bank's debt investor presentation, Apr 30, 2021
Slide 1: Q1 2021 Fixed Income Investor Conference Call
Deutsche Bank Q1 2021 Fixed Income Investor Conference Call 30 April 2021
Slide 2: Continued execution drives transformation and materially improved profitability
Continued execution drives transformation and materially improved profitability Strong profitability driven by continued revenue improvement at Group and Core Bank Outlook revisions by three leading Rating Agencies underline successful transformation delivery Robust balance sheet combined with prude
Slide 3: Rating Agencies acknowledge transformation progress
Rating Agencies acknowledge transformation progress Positive outlook revisions by three leading Rating Agencies since November 2020 validate transformation path Moody’s Fitch S&P Outlook Negative Stable Negative Positive Negative Positive Quick progression on restructuring plan reflecting discipli
Slide 4: Q1 2021 Group financial highlights
Q1 2021 Group financial highlights In € m, unless stated otherwise Change in % Change in % Q1 2021 vs. Q1 2020 vs. Q4 2020 Revenues 7,233 14 33 Revenues Revenues ex. specific items(1) 7,222 15 31 Noninterest expenses 5,574 (1) 11 Costs Adjusted costs ex. transformation charges(2) 5,322 (2) 14 Profit
Slide 5: Growing revenues under refocused strategy
Growing revenues under refocused strategy Core Bank revenues(1) excluding specific items(2), in € bn Group 6.3 7.2 23.1 24.9 25.0 7% 23.3 7.1 5.2 12% 6.4 5.2 1.3 Corporate 1.3 Bank 10.1 7.3 3.1 Investment 2.3 Bank Private 8.2 8.1 2.2 2.2 Bank Asset Management 0.5 0.6 2.3 2.3 Q1 2020 Q1 2021 LTM Q1 2
Slide 6: Strategic transformation drives higher profitability
Strategic transformation drives higher profitability In € bn, unless stated otherwise Last 12 months (LTM) adjusted profit (loss) before tax(1) 75% 5.3 Core Bank 4.2 3.7 2.7 3.0 3.1 2.4 Capital (2.0) (1.7) Release (2.1) (2.4) (2.4) (2.6) (2.7) Unit Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 (1) 2019 figure
Slide 7: Disciplined risk management
Disciplined risk management In € bn, unless stated otherwise Credit risk Market risk 32 13 13 17 41 6 4.3 4.0 1.8 3.8 3.6 1.4 2.2 1.9 0.5 0.5 0.7 0.1 2016 2017 2018 2019 2020 Q1 2021 2016 2017 2018 2019 2020 Q1 2021 Provisions for credit losses xx In bps of average loans(1) Market risk trading econo
Slide 8: Conservatively managed balance sheet
Conservatively managed balance sheet Net balance sheet(1), in € bn, as of 31 March 2021 Assets Liabilities & Equity 987 987 — Resilient balance sheet to navigate Trading and current environment 142 related liabilities(2) Liquidity reserves 243 — Liquidity Reserves account for 25% of 49 Other Liabili
Slide 9: Loan demand picking up in Q1
Loan demand picking up in Q1 In € bn, unless stated otherwise Loan growth Change vs. FX adjusted Q4 2020 change Private Bank 5 — Strong growth in Private Bank mainly from 242 4 mortgage and collateralized lending — Corporate Bank benefitting from growth in Corporate Bank 117 2 1 structured Trade Fin
Slide 10: Higher client acceptance of deposit charging
Higher client acceptance of deposit charging In € bn, unless otherwise stated Quarterly charging Charging agreements(1) Q1 2021 deposits by revenues, in € m total client holdings(2) — Performing well against updated revenue targets due to higher than expected client acceptance 140 132 — More than 85
Slide 11: Sound liquidity profile
Sound liquidity profile Liquidity Reserves, in € bn Cash and cash equivalents(1) Highly liquid and other securities(2) 253 243 243 232 205 >200 66% 64% 70% — Liquidity Reserves remained flat 55% 67% quarter-on-quarter with the majority held in cash and cash equivalents 45% 33% 34% 36% 30% — Deposit
Slide 12: CET1 ratio and RWA drivers
CET1 ratio and RWA drivers CET1 ratio movements in basis points, RWA in € bn, period end, fully-loaded 13.6% 11 13.7% — CET1 ratio up 9bps quarter on quarter (1) (2) — 11bps from RWA changes as lower market and operational risk RWA outweigh credit CET1 ratio risk increase including TRIM impact for l
Slide 13: Distance to regulatory capital requirements above 300 bps
Distance to regulatory capital requirements(1) above 300 bps In %, as of 31 March 2021, phase-in view 18.2 T2 2.4 321bps — Buffer to total capital requirement 15.0 increased by 39bps to 321bps over the AT1 2.1 quarter 2.6(4) — 8bps increase(5) relates to higher 330bps CET1 ratio with buffer over CET
Slide 14: Leverage ratio
Leverage ratio In € bn, except movements (in basis points), period end, fully-loaded 4.7% 4.6% (4) (3) (1) — Leverage ratio decreased by (8)bps in the quarter — (4)bps from FX translation effects Q4 2020(1) FX Effect Leverage Capital Q1 2021 — (3)bps from increased trading Exposure change volumes an
Slide 15: Significant buffer over loss absorbing capacity requirements
Significant buffer over loss absorbing capacity requirements Loss absorbing capacity, in € bn, as of 31 March 2021 Surplus above requirement 111 — Q1 2021 available loss absorbing Senior 4 capacity significantly above all preferred 20 regulatory requirements — MREL is the most binding bail-in Senior
Slide 16: Issuance and maturities
Issuance and maturities In € bn, unless stated otherwise Covered Bonds Senior Structured/Preferred Senior Non-Preferred AT1 / Tier2 25 1 24 2 22 19 7 4 1 15-20 7 16 4 2 3-4 2 14 12 2 4-5 1 4 9 10 4 7.5 4 1 3 16 12 12 16 1 6-8 4 2 7 8 5 7 4 5 2-3 3 3 3 1 1 Q1 FY Issuance FY contract. 2022 2023 2024 2
Slide 17: Recent issuance highlights
Recent issuance highlights Green senior Tier 2 Senior non-preferred Senior non-preferred preferred Currency / $ 1.25bn € 3.0bn $ 800m $ 750m size / tenor 6NC5 / 11NC10 Tenor 11NC10 5 years 4NC3 (dual tranche) Book size $ 5.6bn € 7.5bn $ 2.1bn $ 1.2bn Subscription x 4.4 x 2.5 x 2.6 x 1.7 Number of >
Slide 18: Outlook
Outlook Resilient and low-risk balance sheet with high portion of funding from stable funding sources Improved revenue trajectory in the Core Bank, supporting 2022 target Revenue growth and cost discipline driving cost/income ratio towards 70% Excess liquidity to be prudently managed towards targets
Slide 19: Appendix
Appendix Deutsche Bank Q1 2021 Fixed Income Investor Call 19 Investor Relations 30 April 2021
Slide 20: 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 21: AT1 and Trust Preferred Securities outstanding
AT1 and Trust Preferred Securities outstanding(1) Regulatory Original Current Nominal Next call Subsequent Issuer Type capital ISIN issuance coupon outstanding date call period treatment(1) date Postbank Funding Trust I Legacy AT1 / -(2) DE000A0DEN75 0.000% € 300m 02-Dec-04 02-Jun-21 Semi-annually P
Slide 22: Additional funding disclosure
Additional funding disclosure Capital markets issuance outstanding, in € bn, Q1 2021 By product By currency Senior Senior Capital instruments EUR USD GBP Other non-preferred Structured (T1/T2) Senior Covered preferred Bonds 7 16 3 18 115 bn 58 40 115 bn 65 18 4 Deutsche Bank Q1 2021 Fixed Income Inv
Slide 23: Simplified legal entity structure
Simplified legal entity structure Entities without Issuing Deutsche Bank AG entities direct issuance Germany 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 Hong Kong Australia D
Slide 24: Provision for credit losses
Provision for credit losses In € m Comment Stage 1 + 2 Stage 3 761 252 — Q1 provisions significantly below the 506 previous quarters — Materially lower Stage 3 provisions 273 quarter on quarter across all businesses 230 251 from fewer impairment events, with the 247 further benefit of releases in th
Slide 25: Provision for credit losses and stage 3 loans
Provision for credit losses and stage 3 loans Provision for credit losses, € m Stage 3 at amortised cost, € bn Private Bank Investment Bank PB (ex-POCI) CRU (ex-POCI) Corporate Bank Capital Release Unit CB (ex-POCI) Purchased or Originated Credit Impaired (POCI) IB (ex-POCI) 761 Group Stage 3 29 2.2
Slide 26: Net interest income sensitivity
Net interest income sensitivity Hypothetical +100 bps parallel shift impact, in € bn First year Second year 1.3 0.8 0.8 0.5 0.5 0.4 Retail Non-retail Group Retail Non-retail Group Maturity Maturity > 3M 0.3 0.1 0.3 > 3M 0.5 0.2 0.7 EUR EUR ≤ 3M 0.2 0.2 0.4 ≤ 3M 0.3 0.2 0.4 > 3M 0.0 0.0 0.1 > 3M 0.1
Slide 27: Level 3 assets
Level 3 assets As of 31 March 2021, in € bn Assets (total: € 22bn) Equity securities Mortgage backed securities Other 10 1 Debt Derivative securities 4 8 Assets — Level 3 is an indicator of valuation uncertainty and not of asset quality — The decrease in Level 3 assets reflects: — Portfolios are not
Slide 28: Litigation update
Litigation update In € bn, period end Litigation provisions(1) 1.0 1.1 1.0 ― Provisions remained stable quarter on quarter, 0.8 0.8 with new provisions being offset by provision releases as a result of settlement payments and Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 favorable court rulings ― Continge
Slide 29: 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 30: Specific revenue items and adjusted costs – Q1 2021
Specific revenue items and adjusted costs – Q1 2021 In € m Q1 2021 Q1 2020 Q4 2020 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 1,313 3,097 2,178 637 (74) 7,152 81 7,233 1,325 2,354 2,167 519 43 6,407 (57) 6,350 1,226 1,893 1,96
Slide 31: Reconciliation adjusted costs excluding transformation charges
Adjusted costs excluding transformation charges In € m, unless stated otherwise Q1 2021 Q1 2020 YoY Q4 2020 QoQ Compensation and benefits 2,589 2,675 (3)% 2,404 8% Adjusted costs excluding transformation Information Technology 887 911 (3)% 895 (1)% Professional service fees 206 220 (6)% 268 (23)% Oc
Slide 32: Adjusted profit (loss) before tax (PBT)
Adjusted profit (loss) before tax (PBT) In € m Q1 2021 Q1 2020 Transfor- Transfor- Specific Goodwill Restructuring Specific Goodwill Restructuring Reported PBT mation Adjusted PBT Reported PBT mation Adjusted PBT revenue items impairments & severance revenue items impairments & severance charges(1)
Slide 33: Last 12 months (LTM) reconciliation
Last 12 months (LTM) reconciliation In € m Q1 2020 Q1 2021 Q2 2019(1) Q3 2019(1) Q4 2019(1) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 LTM(2) LTM(3) Revenues Core Bank 5,982 5,483 5,528 6,407 6,353 5,974 5,518 7,152 23,400 24,998 CRU 221 (220) (180) (57) (66) (36) (65) 81 (236) (87) Group 6,203 5,262 5
Slide 34: Transformation-related effects
Transformation-related effects In € bn 2019 – 2019 – 2022 Q1 2021 expected % of total cumulative cumulative 2019 – Q1 2021 expenses expenses Q1 2021 Deferred tax Deferred Tax Asset asset valuation 2.8 - 2.8 2.9 97% valuation adjustment adjustment Nonoperating Goodwill impairment - 1.0 1.0 100% costs
Slide 35: 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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