Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (October 2022)
33 slides from Deutsche Bank's debt investor presentation, Oct 28, 2022
Slide 1: Q3 2022 Fixed Income Investor Conference Call
Deutsche Bank Q3 2022 Fixed Income Investor Conference Call October 28, 2022
Slide 2: Ongoing business momentum in line with 2022 targets
Ongoing business momentum in line with 2022 targets 9M 2022 Performance Profitability Resilience Group revenues of € 20.9bn, Significant improvement in Maintaining disciplined risk reflecting average growth of pre-provision profit management in uncertain 10% across four core market environment busin
Slide 3: Core businesses delivering strong results
Core businesses delivering strong results 9M 20221 Corporate Bank Higher interest rates and strong operating performance, with +20% 11% 65% increased business volumes Revenue RoTE CIR growth Continued client engagement and Investment Bank strength of risk management drove significantly higher FIC +8
Slide 4: Risk management actions support stable risk profile
Risk management actions support stable risk profile Provision for credit losses1 Early identification and management of risks risk management 24bps 8bps Risk monitoring via multiple downside analyses and stress tests Disciplined 9M 2022 9M 2021 Continued tight underwriting standards and portfolio ma
Slide 5: Significant improvement in pre-provision profit
Significant improvement in pre-provision profit Core Bank1, in € bn, unless stated otherwise RoTE (7.5)% 4.3% 7.5% 10.0% 6.4 Corporate Bank Investment Bank 1.6 Private Bank 4.6 Asset Management 4.1 0.7 Corporate & Other 0.7 3.6 3.4 3.2 1.4 0.4 1.7 0.7 0.7 0.4 0.2 0.7 0.7 0.4 0.5 (0.2) (0.7) (1.0) (1
Slide 6: Strong loan and deposit development
Strong loan and deposit development In € bn Loan development Comments QoQ YoY — Lending growth of € 2bn in the quarter adjusted 476 481 493 503 2% 10% for FX effects 456 6 4 1 105 — € 4bn growth in Private Bank driven by 7 93 94 99 6% 31% 80 collateralized lending in International Private 119 122 12
Slide 7: Continuing positive trend in net interest margin
Continuing positive trend in net interest margin Evolution of Group NIM and average interest earning assets Comments Average interest earning assets, in € bn1 Net interest margin, in %2 1.47% 1.39% — NIM growth continues to be 1.23% supported by increases in EUR and 1.22% 1.19% 1.14% 1.15% 1.17% USD
Slide 8: NII sensitivity shows incremental revenue upside
NII sensitivity shows incremental revenue upside Hypothetical +/-25bps shift in yield curve, in € m Net interest income (NII) sensitivity1,2 Comments +25bps shift in yield curve -25bps shift in yield curve TLTRO impact ~40 ~5 ~370 ~225 ~270 — Cumulative impact of current rate ~15 ~95 curve produces
Slide 9: Strong liquidity position in line with targets
Strong liquidity position in line with targets Liquidity coverage ratio1 Comments High-quality liquid assets, in € bn Surplus above requirements 137% 133% 135% 133% 136% ~130% — Solid liquidity position remains in € 59bn € 52bn € 55bn € 51bn € 60bn ~€ 50bn line with targeted levels, despite continue
Slide 10: CET1 ratio increase driven by risk profile and earnings
CET1 ratio increase driven by risk profile and earnings Period end CET1 ratio, movements in basis points Comments 24 13 13.3% 13.0% (0) — CET1 ratio up 37bps compared to Q2 2022 — 24bps from RWA reduction, primarily from credit and market risk RWA — 13bps from capital changes driven by strong Q3 202
Slide 11: Capital ratios well above regulatory requirements
Capital ratios well above regulatory requirements In %, unless stated otherwise, as of September 30, 2022 Comments 18.1 T2 2.8 304bps 15.0 AT1 2.0 2.6 T2 requirement4 — Buffer to CET1 capital ratio requirement 289bps increased by 36bps to 289bps over the 2.0 AT1 requirement3 quarter, reflecting high
Slide 12: Leverage ratio unchanged
Leverage ratio unchanged In € bn, except ratio movements (in bps), period end 4.3% 4 4.3% Comments (3) (1) Q2 2022 FX Effect Leverage Capital Q3 2022 exposure change — The leverage ratio is flat in the quarter change — (3)bps from FX translation effects, Tier 1 bringing the year-to-date impact from
Slide 13: Significant buffer over MREL / TLAC requirements
Significant buffer over MREL / TLAC requirements Loss-absorbing capacity, in € bn, as of September 30, 2022 Comments Surplus above requirement 128 Senior 9 preferred1 19 — Q3 2022 loss-absorbing capacity 27 30 significantly above all regulatory Senior requirements, with MREL remaining non- 50 most b
Slide 14: Issuance plan close to complete
Issuance plan close to complete In € bn, unless stated otherwise Covered bonds Senior structured/preferred Senior non-preferred AT1 / T2 26 24 1 2 19 15-20 19 5 20 1 3 2-3 16 16 7 4 7 1-3 2 2 4 12 12 12 3 1 4 1 2 3 19 9-10 12 12 9 6 3 10 7 7 10 6 3 3-4 4 3 3 3 4 2 1 1 YTD FY issuance FY contract. Is
Slide 15: Outlook
Outlook Strong business performance validates 2022 financial goals Delivered positive operating leverage while supporting investments in controls Disciplined risk management and a stable risk profile, supported by a resilient loan book Rating upgrade by Moody’s expected to positively impact issuance
Slide 16: Appendix
Appendix Deutsche Bank Q3 2022 Fixed Income Investor Call 15 Investor Relations October 28, 2022
Slide 17: Q3 2022 Group financial highlights
Q3 2022 Group financial highlights In € m, unless stated otherwise Change in % Change in % Q3 2022 vs. Q3 2021 vs. Q2 2022 Revenues 6,918 15 4 Revenues Revenues ex-specific items1 6,715 12 1 Noninterest expenses 4,954 (8) 2 Costs Adjusted costs 4,878 (7) 2 Profit (loss) before tax 1,615 192 4 Profit
Slide 18: Current ratings
Current ratings As of October 28, 2022 Moody‘s Investors S&P Global Fitch Ratings DBRS Services Ratings Counterparty obligations (e.g. deposits / structured notes / A1 A-1 A- A (high) derivatives / swaps / trade finance obligations) Senior Preferred2 A1 A- A- A (low) Long- term unse- cured Non-prefe
Slide 19: Evolution of market-implied interest rates
Evolution of market-implied interest rates In % ECB deposit facility rate Federal Reserve interest on reserve balances 5.0 5.0 4.0 4.0 3.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 01/23 07/23 01/24 07/24 01/25 01/23 07/23 01/24 07/24 01/25 EUR 10-year swap rate USD 10-year swap rate 5.0 5.0 4.0 4.0 3.0 3.0 2.0 2
Slide 20: Additional funding disclosure
Additional funding disclosure Q3 2022, capital markets issuance outstanding, in € bn By product By currency Senior Senior Capital Instruments EUR USD GBP Other non-preferred structured (AT1 / T2) Senior Covered preferred bonds 6 21 4 56 15 118 118 58 50 18 8 Deutsche Bank Q3 2022 Fixed Income Invest
Slide 21: Conservatively managed balance sheet
Conservatively managed balance sheet In € bn, net1, as of September 30, 2022 Comments Assets Liabilities & equity 1,065 1,065 Trading and Liquidity 168 related liabilities3 reserves2 262 43 Other liabilities5 — Resilient balance sheet — Liquidity reserves account for 25% of Trading and net balance s
Slide 22: Loan book composition
Loan book composition Q3 2022, IFRS loans: € 503bn Comments Other IB2 Other1 — Well-diversified loan portfolio Leveraged Debt Capital Markets 0% — YTD FX impact on loan book is € 19bn 9% 1% — 54% of loan portfolio in Private Bank, mainly Asset Backed Securities German Mortgages consisting of retail
Slide 23: Provision for credit losses and stage 3 loans
Provision for credit losses and stage 3 loans Provision for credit losses, in € m Stage 3 at amortized cost, in € 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) 350 IB (ex-POCI) Group Stage 3
Slide 24: Russia: credit risk overview
Russia: credit risk overview Q3 2022 Loan exposure to Russia Balance Sheet of subsidiary OOO “Deutsche Bank” € 1.0bn 1 € 0.5bn on a net basis 2 € 1.9bn Material operations and cash flows outside of Russia € 0.7bn Booked offshore ~€ 1.2bn of Central Bank cash (RUB) Large Russian ~€ 0.4bn exce
Slide 25: Leverage exposure and risk-weighted assets
Leverage exposure and risk-weighted assets CRD4, in € bn, period end Leverage exposure Risk-weighted assets 369 369 58 Operational risk RWA 58 1,280 1,310 Market risk RWA Trading assets 103 110 33 25 Credit valuation 6 Derivatives1 148 154 28 adjustments Lending 503 508 146 Lending 250 commitments2
Slide 26: Value-at-Risk / stressed Value-at-Risk (VaR / sVaR)
Value-at-Risk / stressed Value-at-Risk (VaR / sVaR) In € m, unless stated otherwise Historical simulation VaR, DB Group Trading book, 99%, 1 day Quarterly average 33 34 30 47 52 80 60 40 20 0 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Historical simulation sVaR, DB Group Regulatory scope, 99%
Slide 27: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Q3 2022 highlights Our key focus areas Recent achievements – Increase of cumulative volumes in sustainable financing and investment to € 197bn1; volume development reflects the implementation of the new Markets in Financial Instruments Directive (MiFID) Sustainable Fi
Slide 28: Sustainable Finance strategy well on track
Sustainable Finance strategy well on track In € bn, cumulative since 2020 Sustainable Finance1 volumes versus target Reported volumes by business and product type +8% +8% -10%2 >200 115 197 191 177 32 157 47 83 35 10 46 35 37 YE 2020 YE 2021 Q1 2022 Q2 2022 Q3 2022 YE 2022 Investment Bank Corporate
Slide 29: Deutsche Bank's performance in leading ESG ratings
Deutsche Bank’s performance in leading ESG ratings Overview of core ESG ratings as of October 28, 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%) − Corpora
Slide 30: Definition of certain financial measures
Definition of certain financial measures 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
Slide 31: Specific revenue items and adjusted costs – Q3 2022
Specific revenue items and adjusted costs – Q3 2022 In € m Q3 2022 Q3 2021 Q2 2022 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 1,564 2,372 2,268 661 71 6,935 (17) 6,918 1,255 2,227 1,999 656 (61) 6,076 (36) 6,040 1,551 2,646 2,
Slide 32: Specific revenue items and adjusted costs – 9M 2022
Specific revenue items and adjusted costs – 9M 2022 In € m 9M 2022 9M 2021 Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Revenues 4,575 8,341 6,648 1,998 (652) 20,911 (16) 20,895 3,799 7,718 6,195 1,919 (141) 19,489 21 19,510 revenue items DVA - IB Other / CRU - 95 - - - 95
Slide 33: 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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