Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (July 2016)
24 slides from Deutsche Bank's debt investor presentation, Jul 28, 2016
Slide 1: 2Q16 Fixed Income Investor Conference Call
Deutsche Bank 2Q16 Fixed Income Investor Conference Call Marcus Schenck, Chief Financial Officer Alexander von zur Mühlen, Group Treasurer 28 July 2016
Slide 2: 2Q2016 – Further progress on restructuring
2Q2016 – Further progress on restructuring Current macroeconomic and geopolitical outlook challenging Remain committed to substantial restructuring in 2016 Making early progress across all businesses and infrastructure areas, but more to do Continued investment in strengthening control infrastructur
Slide 3: Agenda
Agenda 1 2Q16 results update 2 Capital, funding and liquidity update 3 Appendix Deutsche Bank financial transparency. 2 Investor Relations
Slide 4: Group financial highlights
Group financial highlights In EUR bn, unless otherwise stated 2Q2016 vs. 1H2016 vs. 2Q2016 2Q2015 1H2016 1H2015 2Q2015 1H2015 Net revenues 7.4 9.2 15.5 19.6 (20)% (21)% Provision for credit losses (0.3) (0.2) (0.6) (0.4) 72% 53% Noninterest expenses (6.7) (7.8) (13.9) (16.5) (14)% (16)% (1) therein:
Slide 5: 2Q 2016 segment performance
2Q 2016 segment performance In EUR bn, unless otherwise stated Revenues IBIT Drivers — Reported revenues down 28% year-over-year Global Markets 2.4 0.0 — Lower litigation charges and compensation costs partly offset by higher IT and regulatory spend Corporate & — Revenues down 12% year-over-year Inv
Slide 6: Costs
Costs In EUR bn Noninterest expenses Key facts(4) — Noninterest expenses in 2Q16 were EUR 1.0bn lower 7.8 than 2Q15 7.7 <0.1 <0.1 — Impairments / policyholder benefits and claims are up Litigation 1.2 by EUR 0.3bn mainly attributable to goodwill 1.3 6.7 impairment following the transfer of fund-link
Slide 7: Adjusted Costs
Adjusted Costs In EUR m Adjusted Costs(1) Key facts 2Q16 vs. 2Q15 FX 2Q15 — Compensation and benefits down EUR 413m driven 2Q15 1Q16 2Q16 FX(2) by lower cash bonus and retention expense Compensation and benefits 3,407 3,344 3,119 2,931 — IT cost increase of EUR 154m. Main components are higher depre
Slide 8: Agenda
Agenda 1 2Q16 results update 2 Capital, funding and liquidity update 3 Appendix Deutsche Bank financial transparency. 7 Investor Relations
Slide 9: Tier 1 capital
Tier 1 capital CRD4, fully loaded in EUR bn Common Equity Tier 1 Tier 1 capital Additional Tier 1 capital Events in the quarter 4.6 4.6 — CET1 capital up by EUR 0.8bn q-o-q — EUR 0.2bn FX effect, principally USD 0.2 43.5 strengthening 0.3 0.2 42.8 0.0 — EUR 0.2bn positive impact from equity (0.1) co
Slide 10: RWA and Leverage Exposure
RWA and Leverage Exposure In EUR bn CET1 capital (fully loaded) Events in the quarter 10.7% CET 1 ratio, fully loaded 10.8% — RWA up by EUR 1bn, including EUR 2bn FX effect 12.0% CET 1 ratio, phase in 12.2% — EUR 7bn higher Credit Risk RWA due to methodology 7 changes and business growth across most
Slide 11: EBA / ECB Stress Test and SREP Decision 2015/16
EBA / ECB Stress Test Integration of Stress Test results into SREP decision SREP Decision 2015/16 – Impact on MDA level (CET1 phase-in) Stress test background - illustrative - 0.25% Early — The stress test of 2016 was launched by EBA in coordination 10.76% - current warning buffer with ECB to assess
Slide 12: Healthy liquidity position maintained in 2Q16
Healthy liquidity position maintained in 2Q16 Liquidity Coverage Ratio(1) (LCR) Summary details 119% 119% 124% ― Liquidity position further strengthened during EUR 38bn 2Q16 despite the market volatility surplus above ― Liquidity Coverage Ratio remained well above 100% 100% throughout 2Q16 ― Increas
Slide 13: Robust external funding profile
Robust external funding profile As of 30 June 2016, in EUR bn Funding profile well diversified Funding cost and volume development DB issuance spread, 4 week moving average, in bps(4) 300 Secured Financing DB 5yr EUR-CDS in bps Equity, 6% (1) Funding and Vehicles, 0% Shorts, 15% 250 17 72% from most
Slide 14: Funding plan reduced to EUR 30bn
Funding plan reduced to EUR 30bn In EUR bn Maturity profile(1) 2016 Funding plan Scheduled maturities Funding 30 Plan 68% complete Senior public benchmark(2) 9-11 20.2 22 19.9 20.8 20.8 17.9 Senior private placement(2) 8 8.5 16.4 12.6 12.8 Senior structured 8 4.8 Covered bonds 4.2 2-3 2.0 Capital in
Slide 15: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) DB well positioned to meet TLAC requirements 2019 Transitional TLAC availability and requirements(1) EUR 118bn EUR 83bn EUR 85bn Plain-vanilla G-SIB buffer 2.0% senior debt(2) Capital Conservation buffer 2.5% 59bn DB has EUR ~33bn of TLAC Additional 8% 10bn Tier
Slide 16: Rating methodologies increasingly reflect new resolution regime
Rating methodologies increasingly reflect new resolution regime and therefore require more differentiation Deposits / Derivatives / expected in A3(1) N/A A(high) Swaps 4Q16(2) Counterparties Senior unsecured Baa2 BBB+ A- A(low) Tier 2 Ba2 BB+ BBB+ - Legacy T1 B1 B+ BB+ - AT1 B1 B+ BB - — Counterpart
Slide 17: Outlook and Summary
Outlook and Summary 2H16 Outlook Summary — Challenging revenue environment, particularly post Brexit — Strength of capital, liquidity and funding creates flexibility vote to execute on the strategic plan — 2016 remains peak restructuring year — Capital ratios in excess of regulatory minima today and
Slide 18: Agenda
Agenda 1 2Q16 results update 2 Capital, funding and liquidity update 3 Appendix Deutsche Bank financial transparency. 17 Investor Relations
Slide 19: AT1 and Trust Preferred Securities instruments
AT1 and Trust Preferred Securities instruments(1) EUR6 bn of capital instruments called since January 2015 Original Regulatory Capital Nominal Call Next Subsequent Issuer ISIN Coupon issuance treatment(2) recognition(2) outstanding date call date call period date Capital Funding Trust VI DE000A0DTY3
Slide 20: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves(1) In USD bn Demands Reserves 5.4 5.5 2.4 2.4 2.2 1.7 0.3 0.3 31 Mar 2016 30 Jun 2016 31 Mar 2016 30 Jun 2016 31 Mar 2016 30 Jun 2016 — Settlements and resolutions have — Includes possible obl
Slide 21: Current credit ratings profile
Current credit ratings profile As of 27 July 2016 Counterparty Risk Assessment A3(cr) - - A(high) Deposits A3 - - - Short term senior debt P-2 A2 F1 R-1(low) Senior unsecured debt Baa2(stable) BBB+(negative A-(stable) A(low)(stable) outlook) Stand-alone rating(1) ba1 bbb a- A(low) Tier 2 Ba2 BB+ BBB
Slide 22: Rating landscape – senior unsecured and short-term ratings
Rating landscape – senior unsecured and short-term ratings Deutsche Bank’s senior unsecured ratings are broadly in-line with U.S. holding companies peers reflecting German bail-in law treatment of senior unsecured debt Moody‘s S&P Operating company Holding company Rating scale EU Peers Swiss Peers U
Slide 23: Relatively small loan exposure to 'focus industries'
Relatively small loan exposure to ‘focus industries’ As of 30 June 2016 Oil & Gas: ~ EUR 8bn loan exposure Loan exposure — Slightly higher drawings compared to Q1 mainly from national oil & gas companies — ~50% to IG borrowers (mainly oil majors and national oil & gas companies) — 25% to higher risk
Slide 24: 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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