Slide 1: Deutsche Bank – Q3 2017 Results
Deutsche Bank Deutsche Bank – Q3 2017 Results 26 October 2017
Slide 2: Highlights
Highlights Continued discipline on costs and credit support profitability, despite challenging revenue environment Significant progress on strategic initiatives Ongoing progress in resolution of regulatory enforcement actions and litigation matters Strong capital and liquidity profile provides found
Slide 3: Group financial summary
Group financial summary € bn, unless otherwise stated Q3 2017 vs. 9M 2017 vs. Q3 2017 Q3 2016 9M 2017 9M 2016 Q3 2016 9M 2016 Net revenues 6.8 7.5 (10)% 20.7 22.9 (10)% Provision for credit losses (0.2) (0.3) (44)% (0.4) (0.9) (56)% Noninterest expenses (5.7) (6.5) (14)% (17.7) (20.5) (13)% Profit &
Slide 4: Noninterest expenses
Noninterest expenses € bn (12)% € (2.5) 20.5 20.2 0.5 0.5 0.8 0.8 0.6 0.6 17.7 0.0 Impairments 0.1 0.1 (11)% / € (0.7) / Policyholder Benefits and Claims 6.5 6.4 0.1 0.1 Litigation 0.5 0.5 5.7 0.0 5.7 0.0 0.1 0.1 Restructuring and 0.1 0.1 0.1 Severance 0.0 18.6 18.3 17.5 Adjusted Costs(1) 5.9 5.7 5.
Slide 5: Adjusted costs
Adjusted costs(1) €m Q3 2016 9M 2016 Key facts Q3 2017 vs Q3 2016 FX Q3 2017 YoY 9M 2017 YoY ex FX(2) ex FX(2) — Compensation and benefits costs flat with Compensation and reduced salary expense offset by higher 2,788 2,797 (0)% 8,783 8,827 (1)% benefits(3) current year accruals for variable compens
Slide 6: Common Equity Tier 1 Capital and Risk-weighted assets (RWA)
Common Equity Tier 1 Capital and Risk-weighted assets (RWA) CRD4, fully loaded unless otherwise stated 14.1% CET1 ratio, fully loaded 13.8% 14.9% CET1 ratio, phase-in 14.6% — Q3 2017 CET1 capital down by € (0.6)bn on an FX- CET1, € bn neutral basis including € (0.1)bn equity 0.6 50.1 compensation im
Slide 7: Leverage
Leverage CRD4, fully loaded unless otherwise stated 3.8%(1) Leverage ratio, fully loaded 3.8% 4.2% Leverage ratio, phase-in 4.2% — Leverage exposure down € 22bn, including FX effect of Leverage exposure, € bn € (23)bn. FX neutral increase is € 1bn 1,443 — Cash reduction of € 19bn reflecting growth i
Slide 8: Segment results
Segment results Deutsche Bank Q3 2017 Results 8 Investor Relations 26 October 2017
Slide 9: Corporate & Investment Bank (CIB)
Corporate & Investment Bank (CIB) €m Income before income taxes Financial overview 2,138 Q3 2017 Q3 2016 YoY 9M 2017 9M 2016 YoY Net revenues 3,468 4,532 (23)% 11,494 13,493 (15)% 1,610 Prov. for credit losses (94) (208) (55)% (207) (513) (60)% 969 Noninterest expenses (3,011) (3,333) (10)% (9,653)(
Slide 10: CIB business unit revenues and YoY drivers
CIB business unit revenues and YoY drivers €m Revenues Q3 2017 YoY revenue drivers Global Transaction Banking 3,335 2,990 Cash Management revenues were lower as a result of strategic perimeter adjustments Trade revenues were lower due to lower volumes and continued margin pressure (14)% Trust, Agenc
Slide 11: CIB business unit revenues and YoY drivers (cont’d)
CIB business unit revenues and YoY drivers (cont’d) €m Revenues Q3 2017 YoY revenue drivers 1,754 1,709 Financing Revenue growth driven by Asset-Based Lending and Commercial Real Estate 5% Steady balance sheet deployment 585 586 583 621 551 547 610 Q1 Q2 Q3 Q4 Q1 Q2 Q3 9M 9M Credit revenues were sig
Slide 12: Private & Commercial Bank (PCB)
Private & Commercial Bank (PCB) €m Income before income taxes Financial overview 1,041 Q3 2017 Q3 2016 YoY 9M 2017 9M 2016 YoY 739 700 Net revenues 2,602 2,520 3% 7,865 7,885 (0)% Prov. for credit losses (90) (102) (12)% (190) (281) (32)% Noninterest expenses (2,179) (2,231) (2)% (6,634) (6,865) (3)
Slide 13: PCB business unit revenues and YoY drivers
PCB business unit revenues and YoY drivers €m Revenues Q3 2017 YoY revenue drivers Private & Commercial Clients(1) (PCC) 3,997 3,954 Revenues up 7% driven by a € 95m gain from the sale of shares in 7% Concardis GmbH (Germany-based payment service provider). Excluding this gain, revenues essentially
Slide 14: Deutsche Asset Management
Deutsche Asset Management €m Income before income taxes Financial overview 610 Q3 2017 Q3 2016 YoY 9M 2017 9M 2016 YoY 547 Net revenues ex Abbey Life gross-up (1) 628 627 0% 1,911 1,908 0% 234 215 Noninterest expenses ex 181 195 Abbey Life gross-up (2) (433) (439) (1)% (1,300) (1,384) (6)% 161 170 1
Slide 15: Consolidation & Adjustments (C&A)
Consolidation & Adjustments (C&A) €m Income before income taxes Financial overview Q3 2017 Q3 2016 YoY 9M 2017 9M 2016 YoY 57 42 44 IBIT 44 (215) n.m. (627) (116) n.m. of which : V&T differences(1) 186 (153) n.m. (4) 90 n.m. (116) CTA realisation(2) / (14) 9 n.m. (182) (1) n.m. loss on sale (215) Fu
Slide 16: Outlook 2017
Outlook 2017 Activity in capital markets remained muted in October although underlying economic fundamentals are strong Continued focus on cost management while maintaining investment in controls and revenue growth initiatives Restructuring charge likely in Q4 principally driven by PCB reorganizatio
Slide 17: Appendix
Appendix Deutsche Bank Q3 2017 Results 17 Investor Relations 26 October 2017
Slide 18: 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 Q3 2017 Results 18 Investor Relations 26 October 2017
Slide 19: Profit & Loss
Profit & Loss €m Q3 2016 Q3 2016 Q3 2017 Q3 2017 Q3 2017 9M 2016 9M 2016 9M 2017 9M 2017 9M 2017 ex FX(1) vs. vs. ex FX(1) vs. vs. Q3 2016 Q3 2016 9M 2016 9M 2016 ex FX(1) ex FX(1) Net revenues 7,493 7,313 6,776 (9.6)% (7.3)% 22,946 22,899 20,738 (9.6)% (9.4)% Provision for credit losses (327) (323)
Slide 20: Reported and adjusted costs
Reported and adjusted costs €m Compensation and benefits (in €bn) 20.5 Noninterest expenses excl. compensation and benefits (in €bn) 17.7 11.4 8.8 9.0 7.2 6.7 6.5 6.3 5.7 5.7 6.2 4.0 3.8 3.7 3.2 9.0 2.8 2.9 8.9 3.2 3.0 2.9 2.8 3.1 2.9 2.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 9M 9M 2016 2017 2016 2017 Adjusted costs
Slide 21: Litigation update
Litigation update € bn Litigation reserves(1) Contingent liabilities(1) 2.5 2.3 1.8 1.6 30 Jun 2017 30 Sep 2017 30 Jun 2017 30 Sep 2017 Decrease due to settlement payments for major cases as well Includes possible obligations where an estimate can be made as releases for lower than expected settleme
Slide 22: Provision for credit losses
Provision for credit losses €m Cost of risk DB Group(1) Non-Core Operations Unit PCB CIB 0.33% 0.28% 0.28% 0.26% 492 31 158 327 304 17 259 75 0.13% 0.13% 5 102 0.11% 101 184 78 303 133 90 208 78 79 150 155 22 94 57 56 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 Cost of risk CIB(1) 0.39% 0.39% 0.44% 0.56% 0.16% 0
Slide 23: Net Interest Income sensitivity
Net Interest Income sensitivity Hypothetical +100bps parallel shift impact by business line and major currency, € bn First year Second year 1.5 1.3 > 3M > 3M 0.4 0.6 EUR 0.8 0.7 0.6 0.7 0.9 3M 0.9 3M 0.3 USD > 3M 0.2 > 3M 0.2 0.2 0.1 0.1 0.0 0.1 0.2 3M 0.1 3M PCB CIB Group PCB CIB Group Total (EUR +
Slide 24: IBIT detail
IBIT detail €m Q3 2017 DVA and own credit Restructuring and IBIT Litigation Impairments Adjusted IBIT spreads severance CIB 361 (7) (10) (93) 0 471 PCB 332 - 3 (11) 0 341 Deutsche AM 195 - 0 (1) - 196 C&A 44 (28) 1 (34) - 106 NCOU - - - - - - Group 933 (35) (7) (140) 0 1,114 Q3 2016 DVA and own cred
Slide 25: IBIT detail
IBIT detail €m 9M 2017 DVA and own credit Restructuring and IBIT Litigation Impairments Adjusted IBIT spreads severance CIB 1,610 (329) (151) 12 (6) 2,084 PCB 1,041 - 30 (56) 0 1,067 Deutsche AM 610 - (8) (1) - 619 C&A (627) (218) (2) (38) - (369) NCOU - - - - - - Group 2,633 (548) (131) (82) (6) 3,
Slide 26: Leverage exposure and RWA
Leverage exposure and RWA CRD4, fully loaded, € bn Leverage Exposure vs. RWA(1) CRD4 – Leverage Exposure RWA 1,442 1,420 255 255 Non-derivative trading assets 185 64 185 40 Market Risk RWA 36 64 CVA 7 Derivatives(2) 198 197 31 Lending 394 389 114 Reverse repo / securities 250 148 Credit Risk RWA 213
Slide 27: Loan book
Loan book € bn 429 433 428 414 413 403 400 CIB 154 158 154 147 137 134 145 PCC 119 119 120 119 121 121 121 WM 43 44 43 40 40 39 37 PB 104 105 105 105 105 106 108 NCOU 8 6 5 3 31-Mar 30-Jun 30-Sep 31-Mar 30-Jun 30-Sep 31-Dec 2016 2017 Note: Loan amounts are gross of allowances for loan losses. Figure
Slide 28: Impaired loans
Impaired loans(1) Period-end, € bn Non-Core Operations Unit PCB CIB x.x% Impaired loan ratio Deutsche Bank Group(2) 1.8% 1.7% 1.8% 1.8% 1.7% 1.7% 1.7% 7.6 7.4 7.5 7.4 6.9 6.7 6.7 1.6 1.1 0.8 1.3 3.6 4.0 3.8 3.8 3.6 3.6 3.5 2.6 2.8 3.0 2.9 2.8 2.8 2.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 Cov. Ratio Group(3
Slide 29: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, € m unless otherwise stated Average VaR Stressed VaR(1) € 2.2bn Sales & Trading revenues € 1.5bn 180 160 140 120 100 80 60 40 20 28 27 32 32 30 77 78 76 83 81 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 (1) Stressed Value-at-Risk is calculated on the same portfolio as
Slide 30: Invested Assets / Client Assets – PCB
Invested Assets / Client Assets – PCB € bn FY2015 Q1 2016 Q2 2016 Q3 2016 (3) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Invested Assets 583 558 557 514 501 508 504 505 Assets under Administration (1) 188 187 194 189 194 198 201 206 Client Assets 771 744 751 703 694 706 705 711 Breakdown of Invested Assets 583
Slide 31: Invested Assets / Client Assets – AM
Invested Assets / Client Assets – AM € bn Q4 2016 decline includes Abbey Life deconsolidation impact FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Invested Assets 744 711 719 715 706 723 711 711 Assets under Administration (1) 54 57 63 65 68 67 62 59 Client Assets 798 768 782 780 7
Slide 32: Group headcount
Group headcount Full-time equivalents, at period end 30 Sep 2017 30 Sep 2016 31 Dec 2016 31 Mar 2017 30 Jun 2017 30 Sep 2017 vs. 30 Jun 2017 CIB 17,264 17,140 16,713 16,294 16,812 517 PCB 45,908 45,045 44,651 44,130 43,671 (459) Deutsche AM 3,909 3,888 3,823 3,799 3,842 42 NCOU 117 116 - - - - Infra
Slide 33: 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