Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2020)
23 slides from Deutsche Bank's investor day presentation, Dec 9, 2020
Slide 1: Investor Deep Dive: Compete to win
Investor Deep Dive Compete to win Christian Sewing Chief Executive Officer 9 December 2020 Deutsche Bank
Slide 2: Our mindset: Tackling key issues head on
Our mindset: Tackling key issues head on Principle concerns from one year ago Stability and competitiveness of Core Bank Phase 1 Stabilisation Ability to deliver on cost reductions Phase 2 Transformation Growing revenues while cutting costs and exiting businesses Phase 3 Sustainable profitabilit
Slide 3: We have made material progress
We have made material progress Competitiveness Ability to deliver on Growing revenues Funding transformation and stability of Core Bank cost reductions amid transformation with own resources >70% 11th +11% 45% Revenues in businesses Consecutive quarter Operating Capital Release Unit where we have a
Slide 4: Demonstrating our relevance in challenging times
Demonstrating our relevance in challenging times We are part of the solution in unprecedented times We successfully adapted to a changing environment € 1.5tr ~€ 75bn ~60% 9M 2020 YoY increase bond issuance Deposit charging agreements in place volumes >€ 12bn € 28bn #1 sponsor of KfW programs
Slide 5: We continue to invest in technology and controls
We continue to invest in technology and controls Technology Controls 37% year-on-year increase in digital 3m transactions and 1m App usage in the first nine months of communications monitored daily 2020 >90k active Autobahn users 30bn valuations analyzed daily ~20bn tradable FX spot prices quoted In
Slide 6: Our employees are responding positively
Our employees are responding positively People Survey results, July 2020 % of respondents feeling committed to the Bank People embrace our strategy 87% 69 +10 ppts(1) People know how their job contributes to 57 58 delivering the strategy 2018 2019 2020 People feel valued 80% +7 ppts(1) The environme
Slide 7: Encouraging improvement, but still work to do
Encouraging improvement, but still work to do CDS spreads (in bps)(1) Price / Tangible Book Value(3) DB European peers(2) 38 74 0.2 0.4 20 0.6 0.6 58 0.4 36 38 0.3 10 Dec 2019 03 Dec 2020 10 Dec 2019 03 Dec 2020 (1) 5-year CDS spread, ask price (2) Peer average of Barclays, BNP Paribas, Credit Suiss
Slide 8: What’s next?
What’s next? Key questions today Continued cost reductions? Phase 1 Stabilisation Cost of credit amid pandemic? Phase 2 Transformation Sustainable revenue growth? Phase 3 Sustainable profitability Capital returns to shareholders? Christian Sewing 7 Investor Deep Dive, 9 December 2020
Slide 9: We have reduced our adjusted cost target
We have reduced our adjusted cost target In € bn Adjusted costs ex. transformation charges(1) (3.3) Current run rate of annual adjusted 22.8 21.5 costs excluding transformation 19.5 charges and bank levies at € 18.4bn 16.7 Targeting additional reductions in Capital Release Unit Experience from COVID
Slide 10: Maintaining best-in-class credit quality
Maintaining best-in-class credit quality In basis points of loans Provision for credit losses 41 25-30 Limited exposure to sectors most 17 affected by COVID-19 2019 2020 2021 2022 Outlook Diversified loan book with ~50% of exposure in stable home market 300 DB 250 Peer average(1) 200 158(2) 150 Supe
Slide 11: Four businesses, positioned to grow
Four businesses, positioned to grow Revenues excluding specific items, in € bn Corporate Bank Investment Bank − Global “Hausbank” in 5.5 − A leading global fixed income 9.2 5.2 5.2 5.2 8.5 Germany for 150 years and financing business; 7.3 7.0 − A leading network across focused global O&A franchise 1
Slide 12: Well positioned for key structural trends
Well positioned for key structural trends Key trends Our response Lower interest rates for longer Global financing and 1 transformation Aging societies 22 Wealth preservation Corporate response to climate change 33 Deep local presence Digitalization 44 Sustainability Glocalization Christian Sewing 1
Slide 13: Global financing demand: Aligns with our client franchise and capabilities
1 2 3 4 Global financing demand: Aligns with our client franchise and capabilities Global debt as % of GDP(1) The opportunity 43ppt 363 — COVID-19 has triggered a wave of government and 321 317 318 321 corporate debt issuance — Clients need advice and financing to navigate the challenges and opportu
Slide 14: Wealth preservation: Capabilities and distribution to capture increasing client demand
1 2 3 4 Wealth preservation: Capabilities and distribution to capture increasing client demand Market implied ECB deposit rates(1) The opportunity (0.0)% — Negative interest rates and aging populations result in client need for wealth preservation and (0.2)% generational transfer of wealth (0.4)% —
Slide 15: Deep local presence: Leveraging our network
1 2 3 4 Deep local presence: Leveraging our network Global trade volume as a % of GDP(1) The opportunity (5-year average) — Corporates are increasingly ‘thinking globally’ but 23.3 23.8 ‘acting locally’ 21.6 — Deep, local market expertise is becoming even more 19.2 important — Clients have greater n
Slide 16: Sustainability: A key growth driver across all businesses
1 2 3 4 Sustainability: A key growth driver across all businesses Deutsche Bank cumulative sustainable financing and The opportunity investing volumes (in € bn) >200 — € 1 trillion of sustainable financing mobilized in the 58% European Union by 2030(1) CAGR >150 — ESG compliance quickly gaining rele
Slide 17: Committed to returning capital to shareholders
Committed to returning capital to shareholders Common Equity Tier 1 (CET1) capital ratio Committed to maintaining a CET1 ratio above 12.5% through 13.6% 13.6% ~13.0% transformation period >12.5% Minimum regulatory requirement 10.4% Current CET1 ratio gives sufficient headroom to support clients and
Slide 18: Our path to a new bank continues
Our path to a new bank continues Our promise in July 2019 Our evolved management agenda Client centricity Leadership Technology Sustainability Risk Management Christian Sewing 17 Investor Deep Dive, 9 December 2020
Slide 19: Summary: We will continue to deliver
Summary: We will continue to deliver Transformation is on track – refocused business model and strategy is working Commitment to cost reductions, strong risk management and robust balance sheet are unchanged Positive momentum with clients and employees supports confidence in revenue outlook Well pos
Slide 20: We remain committed to our 2022 plans and targets
We remain committed to our 2022 plans and targets Group revenue Adjusted costs(1) CET1 ratio Group RoTE plan ~€ 24.4bn € 16.7bn >12.5% 8% € 5bn of capital for distribution to shareholders from 2022 (1) Adjusted costs excluding transformation charges Christian Sewing 19 Investor Deep Dive, 9 December
Slide 21: Appendix
Deutsche Bank Appendix
Slide 22: Our macroeconomic assumptions are conservative
Our macroeconomic assumptions are conservative 2020 2021 2022 Global (4.8) 4.1 3.6 GDP growth GDP to recover to pre-COVID-19 (in %) levels by early 2022 Germany (5.5) 4.1 2.8 2020 2021 2022 EUR (0.52) (0.54) (0.52) Interest rates (3 months, Lower for longer interest rates in %) USD 0.25 0.28 0.39 Ch
Slide 23: Cautionary statements
Cautionary statements Non-IFRS Financial Measures This document contains non-IFRS financial measures. For a reconciliation to directly comparable figures reported under IFRS, to the extent such reconciliation not provided herein, please refer to the Financial Data Supplement which can be downloaded