Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q4 2024 Earnings Presentation
54 slides from Deutsche Bank's earnings presentation, Jan 30, 2025
Slide 1: Q4/FY 2024 results
Deutsche Bank Investor Relations Q4/FY 2024 results January 30, 2025
Slide 2: Actions taken in 2024 position Deutsche Bank to deliver return target in 2025 and beyond
Actions taken in 2024 position Deutsche Bank to deliver return target in 2025 and beyond Fundamental turnaround of recent years reflected in franchise strength, revenue momentum and operating leverage Achieved € 30.1bn revenues underpinning confidence in 2025 ambition of ~€ 32bn Delivered operating
Slide 3: Resilient full-year results reflecting ongoing strong operating performance
Resilient full-year results reflecting ongoing strong operating performance In € bn, unless stated otherwise Pre-provision profit1 Revenues Costs Year-on-year By division3 Adjusted costs +9% +19% Group 28.9 +4% 30.1 (1)% +13% € 20.2bn 8.8 +4% 30.1 20.6 20.4 Adjusted cost 28.8 Commissions and excludi
Slide 4: Clear traction across divisions set to deliver sustainable growth and higher profitability
Clear traction across divisions set to deliver sustainable growth and higher profitability Revenue CAGR1 RoTE2 At the heart of Global Hausbank with a global network and strengthened client franchise, 13% 13% Corporate evidenced by ~40% increase in incremental deals won with multinational clients s
Slide 5: Strong execution and positioning underpin confidence in revenue trajectory
Strong execution and positioning underpin confidence in revenue trajectory Net revenues, in € bn Revenue growth drivers in 2025 CAGR1 5.8% +18% ~5.9% Further growth and scaling of commissions and fee income in Trade Finance and in fee-based ~32.0 32.8 Corporate institutional businesses 30.1 at Dec
Slide 6: Significantly lower expenses in 2025, with ongoing focus on execution of efficiency measures
Significantly lower expenses in 2025, with ongoing focus on execution of efficiency measures Ongoing delivery of efficiency measures Cost management agenda for 2025 € 2.5bn Focus on delivering incremental savings towards our € 2.5bn efficiency objective, with in-year savings in 2025 to come from Ger
Slide 7: Set to achieve >10% RoTE target with positive operating leverage
Set to achieve >10% RoTE target with positive operating leverage Strategic delivery pillars Return on tangible equity (RoTE) In percentage points (ppt) unless stated otherwise Targeted ~3ppt 5.5-6.5% 0.4 (0.3) >10% Achieved Revenue CAGR 0.6 ‘21-’25 5.8% 2.4 20% Cost savings more than offset investme
Slide 8: Creating value for shareholders and increasing distributions
Creating value for shareholders and increasing distributions TBV per basic share outstanding € 2.1bn € 5.4bn Upside 21 +21% Capital distributions for Cumulative capital 2025 announced to date distributions since 2022 potential € 29.90 € 8.0bn € 28.41 Payout details 2026 dividend 2.1 € 1.9bn guidance
Slide 9: Driving the next phase of Deutsche Bank's evolution beyond 2025
Driving the next phase of Deutsche Bank’s evolution beyond 2025 Our goals Executing management agenda Delivering a more profitable bank Driving returns and capital generation at FY 2024 Aspiration More client-focused with clear purpose core of Global Hausbank steering: Disciplined capital alloca
Slide 10: Group financials
Group financials Deutsche Bank Investor Relations Q4/FY 2024 results, January 30, 2025 10
Slide 11: Key performance indicators
Key performance indicators In % Revenue CAGR2 FY 2024 vs FY 2021 CIR development 76 Sustained revenue growth momentum with Group 75 75 CAGR in line with updated target of 5.5-6.5%1 13.4 Cost/income ratio (CIR) and return on tangible 4.5 5.8 3.1 equity3 (RoTE) impacted by specific litigation (0.7) pr
Slide 12: FY 2024 and Q4 2024 highlights
FY 2024 and Q4 2024 highlights In € bn, unless stated otherwise Financial results Q4 divisional revenues Key highlights Δ vs. Δ vs. Q4 2024 Q4 2023 Q3 2024 Δ vs. FY 2024 FY 2023 +8% +8% Δ vs. Q4 2023 Statement of income 7.2 Revenues 7.2 8% (4)% 30.1 4% Revenues ex-specific items1 7.2 8% (3)% 30.1 4%
Slide 13: Net interest income (NII) / Net interest margin (NIM)
Net interest income (NII) / Net interest margin (NIM) In € bn, unless stated otherwise Group development Key banking book segment1 development 1.3% 1.3% 1.2% 1.3% 1.4% 4.1% 4.2% 4.1% 3.7% 3.7% Corporate Bank 3.7 3.2 3.1 3.0 3.3 0.3 1.3 1.3 1.3 1.2 1.2 0.0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2.4%
Slide 14: Net interest income (NII)
Net interest income (NII) In € bn, unless stated otherwise NII development1 Key highlights Corporate Bank Private Bank FIC Financing Other funding Key banking book 9.0 11.0 13.1 13.3 13.6 13.9 segments and at DecFX NII from banking book segments and other funding other funding remained resilient i
Slide 15: Adjusted costs – Q4 2024 and FY 2024 (YoY)
Adjusted costs – Q4 2024 and FY 2024 (YoY) In € m, unless stated otherwise Q4 2024 FY 2024 FY/Q4 2023 ex- 5,256 20,057 bank levies Compensation FX impact 33 FX impact 32 (23) 414 and benefits1 Information 13 26 (50) (145) technology 63 (2)% 78 +1% Professional 3 6 (21) (136) services Other 14 (24) 1
Slide 16: Noninterest expenses – FY 2024 results and FY 2025 outlook
Noninterest expenses – FY 2024 results and FY 2025 outlook In € bn, unless stated otherwise Noninterest expenses Key highlights CIR 76% <65% 23.0 Nonoperating costs in FY 2024 were impacted by specific litigation items of € 1,668m, specifically Postbank takeover litigation provision of € 906m, (1.
Slide 17: Provision for credit losses
Provision for credit losses In € m, unless stated otherwise Annual development Quarterly development Key highlights IB PB In bps of average loans annualized1 Stage 1+2 In bps of average loans annualized1 CB Other Stage 3 25 31 38 41 37 40 41 35 Full-year provisions elevated and affected by 1,830 4
Slide 18: Capital metrics
Capital metrics Movements in basis points (bps), unless stated otherwise, period end CET1 ratio Leverage ratio MREL / TLAC, in € bn Surplus above requirements 22 4.6% 4.7% 13.8% 13.9% 4.6% 7 13.8% 1 (2) (17) 134 (6) Senior 15 preferred1 23 Q3 2024 FX effect RWA Capital Q4 2024 CRR3 Q3 2024 FX effect
Slide 19: Segment results
Segment results Deutsche Bank Investor Relations Q4/FY 2024 results, January 30, 2025 19
Slide 20: Corporate Bank
Corporate Bank In € m, unless stated otherwise Financial results Revenue performance Key highlights Q4 2024 Δ vs. Δ vs. Δ vs. Q4 2023 Q3 2024 Q4 2023 Statement of income Corporate Treasury 1,864 (2)% 1% Services Revenues Revenues ex-specific items1 1,864 (2)% 1% 1,064 +1% +1% Revenues higher seque
Slide 21: Investment Bank
Investment Bank In € m, unless stated otherwise Financial results Revenue performance Key highlights Q4 2024 Δ vs. Δ vs. Δ vs. Q4 2023 Q3 2024 Q4 2023 Significantly higher revenues year on year with Ex-Financing Statement of income strong performance across FIC and O&A Fixed Income +19% YoY & Curr
Slide 22: Private Bank
Private Bank In € m, unless stated otherwise Financial results Revenue and AuM performance Key highlights Q4 2024 Δ vs. Δ vs. Revenues Δ vs. Q4 2023 Q3 2024 Q4 2023 Statement of income Q4 revenues up sequentially, driven by NII and Personal Banking Revenues 2,359 (1)% 2% essentially flat year on y
Slide 23: Asset Management
Asset Management In € m, unless stated otherwise Financial results Revenue and AuM performance Key highlights Δ vs. Δ vs. Revenues Δ vs. Q4 2024 Q4 2023 Q3 2024 Q4 2023 Statement of income trans. Mgmt. fees Revenues 709 22% 7% 647 +13% Revenues ex-specific items1 709 22% 7% Perf. & Significant impro
Slide 24: Corporate & Other
Corporate & Other In € m, unless stated otherwise Financial results Profit (loss) before tax Key highlights Q4 2024 Δ vs. Δ vs. Abs. Δ vs. Q4 2023 Q3 2024 Q4 2023 Statement of income Funding & liquidity (100) +11 Revenues (99) 53% n.m. Loss before tax of € 621m, driven by the Valuation & increase
Slide 25: Outlook
Outlook Confidence in 2025 revenue ambition of ~€ 32bn, in line with 2021-2025 CAGR target of 5.5%-6.5%, underpinned by 2024 performance and continued execution of growth agenda Resetting CIR target to below 65% to support sustained investments into franchise, offset by ongoing execution of efficien
Slide 26: Appendix
Appendix Deutsche Bank Investor Relations Q4/FY 2024 results, January 30, 2025 26
Slide 27: 2025 financial targets and capital objectives
2025 financial targets and capital objectives Financial targets Capital objectives > 10% 5.5-6.5% < 65% ~ 13% 50% Post-tax RoTE Revenue CAGR Cost/income ratio CET1 ratio Total payout ratio in 2025 2021-2025 in 2025 from 2025 Well-positioned to Increased revenue Reset CIR target, Aim to operate with
Slide 28: Committed to increasing shareholder distributions
Committed to increasing shareholder distributions Total payout1 Payout trajectory details Share buybacks Executed in FY, in € m Organic capital generation from net income and improved capital potential Upside efficiency support shareholder distributions, as well as business growth +50% p.a. 675 450
Slide 29: Adjusted costs – Q4 2024
Adjusted costs – Q4 2024 In € m, unless stated otherwise Key highlights Q4 2024 5,276 Real estate (100) measures Q4 adjusted costs of € 5,276m impacted by exceptional items and unfavorable FX movement by almost € 300m Real estate measures of € 100m UK bank levy (134) true-up UK bank levy true-
Slide 30: Sustainability
Sustainability Q4 2024 highlights Recent achievements Sustainable Finance1 volumes Increased Sustainable Finance volumes by € 21bn to € 373bn 1 (cumulative since 2020), including a first-time € 1bn contribution for market making activities in the Investment Bank, reflecting the annual average volu
Slide 31: 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 generally fall outside the usual nature or scope of the Revenues excluding business and are likely to distort an accurate assessment of the
Slide 32: Specific revenue items and adjusted costs – Q4 2024
Specific revenue items and adjusted costs – Q4 2024 In € m, unless stated otherwise Q4 2024 Q4 2023 Q3 2024 CB IB PB AM C&O Group CB IB PB AM C&O Group CB IB PB AM C&O Group Revenues 1,864 2,390 2,359 709 (99) 7,224 1,912 1,837 2,394 580 (64) 6,658 1,841 2,523 2,319 660 157 7,501 Specific revenue it
Slide 33: Specific revenue items and adjusted costs – FY 2024
Specific revenue items and adjusted costs – FY 2024 In € m, unless stated otherwise FY 2024 FY 2023 CB IB PB AM C&O Group CB IB PB AM C&O Group Revenues 7,506 10,558 9,386 2,649 (6) 30,092 7,718 9,160 9,571 2,383 47 28,879 Specific revenue items DVA - IB Other / Legacy portfolios1 - (30) - - (6) (37
Slide 34: Pre-provision profit, CAGR and operating leverage
Pre-provision profit, CAGR and operating leverage In € m, unless stated otherwise CAGR2 FY 2021 – FY 2024 vs FY 2021 FY 2024 FY 2023 FY 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 LTM FY 2023 Net revenues Corporate Bank 5,153 1,878 1,922 1,841 1,864 7,506 13.4% 7,718 7,506 (3)% Investment Bank 9,63
Slide 35: Adjusted key metrics – FY 2024
Adjusted key metrics – FY 2024 In € m, unless stated otherwise FY 2023 FY 2024 Pre-provision profit 7,184 7,121 Provision for credit losses (1,505) (1,830) Profit (loss) before tax 5,678 5,291 Noncontrolling interests (post tax) (119) (139) Income tax expense (-) / benefit (+) (787) (1,786) AT1 Coup
Slide 36: Indicative divisional currency mix
Indicative divisional currency mix Q4 2024 Net revenues Noninterest expenses 7% 3% 3% 12% 9% 15% 16% 16% 20% 5% 4% 19% 0% 18% 1% 28% 15% 15% 28% 14% 16% 0% 40% 6% 34% 2% 18% 18% 1% 88% 86% 66% 64% 63% 58% 43% 50% 49% 45% 7% CB IB PB AM Group CB IB PB AM Group EUR GBP USD Other1 Notes: classification
Slide 37: Net interest income (NII) sensitivity
Net interest income (NII) sensitivity Hypothetical +/-25bps shift in yield curve, in € m Net interest income (NII) sensitivity1 +25bps shift in yield curve -25bps shift in yield curve ~145 ~90 ~30 ~(30) ~(95) ~(155) 2025 2026 2027 Breakdown of sensitivity by currency for +25bps shift in yield curve
Slide 38: Interest rate hedge
Interest rate hedge In € bn, unless stated otherwise Income from long-term hedge portfolio (excl. equity)1 Key highlights 10y EUR swap Yield of maturing EUR hedges Locked-in Roll-over Average yield 0.6% 0.9% 1.2% 1.4% 1.6% 1.8% Hedge contribution expected to grow further 3.0% with limited sensitiv
Slide 39: Loan and deposit development
Loan and deposit development In € bn, unless stated otherwise; loan-to-deposit ratio 73% Loan development1,2 Key highlights QoQ YoY Loans remained stable with slight reduction of € 2bn 479 480 482 477 485 (0)% (1)% during the quarter adjusted for FX: Investment Bank 101 103 106 105 110 (0)% 5% C
Slide 40: Loan book composition
Loan book composition Q4 2024, IFRS loans: € 485bn1 Key highlights Other2 Other IB3 0% 11% Leveraged Debt Capital Markets German Mortgages and 1% Home Loans & Savings 53% of loan portfolio in Private Bank, consisting of retail Asset Backed Securities mortgages mainly in Personal Banking (Germany)
Slide 41: 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 Corporate Bank Investment Bank PB (ex-POCI) CB (ex-POCI) IB (ex-POCI) POCI 488 494 1,830 Group Stage 3 2.8% 3.1% 3.1% 3.3% 3.3% 439 476 loans at amortized 420 cost %2 135
Slide 42: 2024 provisioning trends
2024 provisioning trends Provision for credit losses, in € m, unless stated otherwise Provision for credit losses Key highlights 420 20 18 84 334 Q4 2024 As previously anticipated, impacts of transitory headwinds reduced in second half of the year reflecting stabilization of CRE and Postbank integ
Slide 43: Commercial Real Estate (CRE) 1 / 2
Commercial Real Estate (CRE) 1 / 2 CRE non-recourse portfolio: € 36 bn € 29bn in scope of severe stress test2 By region By region Non-recourse € 36bn – 8% of total loans1 APAC APAC EU 7% 3% € 7bn deemed as lower risk, includes data centers and 16% municipal social housing CRE higher risk loans
Slide 44: Commercial Real Estate (CRE) 2 / 2
Commercial Real Estate (CRE) 2 / 2 US CRE in scope of severe stress test1: € 15bn US CRE loan risk management US CRE CLPs2 In € bn In € m By type Office: € 7bn Cumulative modified loans CLPs per quarter New York 14 130 Other 123 121 Other Office 17% 27% Miami 28% Philadelphia 80 46% 3% 2% 74 5% 5.6%
Slide 45: Asset quality in Germany
Asset quality in Germany In € bn, unless stated otherwise German loan book well diversified Solid fundamentals in home market Broadly stable baseline CLPs6 Provision for credit losses, in bps 67% (3) 3.1% +0.8 Corporate Bank ppt YoY ppt YoY Germany (baseline) Germany (reported) Investment Bank Inves
Slide 46: Level 3 assets and liabilities
Level 3 assets and liabilities As of December 31, 2024, in € bn Assets: € 26bn Liabilities: € 13bn Key highlights Other Other 3 Derivative 0 Assets Debt 8 Debt Securities Level 3 is an indicator of valuation securities 4 5 uncertainty and not of asset quality The Group classifies financial instr
Slide 47: Leverage exposure and risk-weighted assets
Leverage exposure and risk-weighted assets CRD4, in € bn, period end Leverage exposure Risk-weighted assets 357 357 58 Operational risk RWA 58 1,284 1,316 Market risk RWA 128 26 19 Trading assets 143 Credit valuation 3 18 adjustments Derivatives1 125 137 Lending 464 470 148 Lending Credit risk RWA 2
Slide 48: Litigation update
Litigation update In € bn, unless stated otherwise, period end Litigation provisions Key highlights 2.7 2.0 2.1 1.3 1.3 Litigation provisions increased by € 0.1bn quarter on quarter Sequential increase was primarily driven by Polish FX Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 mortgages annual mod
Slide 49: Group Trading Book Value-at-Risk (VaR) and stressed Value-at-Risk (sVaR)
Group Trading Book Value-at-Risk (VaR) and stressed Value-at-Risk (sVaR) As of December 31, 2024, in € m, 99% confidence level Trading P&L1, VaR sVaR 500 160 400 250 300 120 152 172 200 121 100 80 0 44 33 40 25 24 -100 -200 0 -300 -400 (40) -500 (80) Q1 2024 Q2 20242 Q3 20242 Q4 2024
Slide 50: Assets under management – Private Bank
Assets under management – Private Bank In € bn, unless stated otherwise AuM1,2 – by client segments and product group +10% +10% +1% +1% 605 612 625 633 578 102 103 103 104 107 110 114 118 120 123 64 65 65 66 67 Inv. Prod. 366 388 391 401 403 302 323 326 335 337 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 202
Slide 51: Assets under management – Asset Management
Assets under management – Asset Management In € bn, unless stated otherwise AuM development Quarterly mgmt. 26.2 Year-on-year 25.9 26.2 Quarter-on-quarter 25.9 fee margin, in bps 1,012 1,012 0 0 0 64 963 30 18 896 26 26 Q4 2023 Net flows FX Market Other Q4 2024 Q3 2024 Net flows FX Market Other Q4 2
Slide 52: Footnotes 1 / 2
Footnotes 1 / 2 Slide 2 – Actions taken in 2024 position Deutsche Bank to deliver return target in 2025 and beyond Slide 13 – Net interest income (NII) / Net interest margin (NIM) 1. € 8bn anticipated cumulative payout in respect of FY 2021-2025 (including distributions in respect of 2025, payable i
Slide 53: Footnotes 2 / 2
Footnotes 2 / 2 Slide 23 – Asset Management Slide 41 – Provision for credit losses and Stage 3 loans 1. Detailed on slides 32 and 34 1. Quarterly provision for credit losses annualized as basis points of average loans gross of allowance at amortized cost 2. Detailed on slide 51 2. IFRS 9 Stage 3 ass
Slide 54: Cautionary statements
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2024 and SEC Form 20-F are scheduled to be published on March 13, 2025 Forward-looking statements This presentation contains forward-looking statements. Forward-looking statements are statements t