Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2020)
19 slides from Deutsche Bank's investor day presentation, Dec 9, 2020
Slide 1: Investor Deep Dive Investment Bank
Investor Deep Dive Investment Bank Mark Fedorcik Ram Nayak 9 December 2020 Deutsche Bank
Slide 2: Summary
Summary Deliver sustainable revenue growth across all businesses in a well-controlled manner Focus on tangible franchise improvements through deepening client intensity Ability to grow with consistent resources Reduce costs to materially improve return on tangible equity Mark Fedorcik, Ram Nayak 1 I
Slide 3: Investment Bank at a glance
Investment Bank at a glance 9M 2020 Product mix €7.4bn €2.6bn 4.1k Emerging Markets Origination & 11% Advisory Revenues Profit Before Tax FTE(1) 23% FX 14% Origination — Targeted client industry focus 25% 28% Rates Credit & Advisory — Debt origination experts (incl. Financing) (O&A) — Advisory and E
Slide 4: Material progress made
Material progress made Strategic objectives Progress in 2020 Stabilise and grow 4 consecutive quarters of year-on-year revenue growth since Q4 2019 revenues Sustainable revenue growth 4 consecutive quarters of year-on-year cost reduction since Q4 2019(1) Reduce costs € 225m reduction in fund
Slide 5: Revenue growth is anchored around client engagement
Revenue growth is anchored around client engagement In € bn 2019 – 2022 Revenues ex specific items Business Drivers impact — Intense focus on sectors with strategic advisory O&A opportunity 0.4 7% — Debt Capital Markets, with ESG a priority CAGR 9.1 8.5 7.0 — Increasing client confidence in Deutsche
Slide 6: O&A outperformance and market share gains
O&A outperformance and market share gains Outperformance versus global industry fee pool(1) Q3 2020 YoY market share development(1) YoY performance: Deutsche Bank vs. fee pool Origination & +10% +58% +13% +20bps — Highest share in 6 quarters Advisory 73% — Increased focus on SSA issuance Debt Capita
Slide 7: Client intensity: Driver of O&A revenue growth
Client intensity: Driver of O&A revenue growth Focused client coverage Higher client calling Increased client market share universe Calls per coverage MD, D(1) per month Platinum client count Market share with platinum clients(2) (10)% +22% +55% 9M 2019 9M 2020 9M 2019 9M 2020 2022 2019 9M 2020 2022
Slide 8: Transformation is the driver behind FIC revenue growth
Transformation is the driver behind FIC revenue growth FIC year-on-year monthly performance Pre market Post market dislocation dislocation +47% (3)% +39% 119% 81% 70% 49% 49% 38% 32% 20% 23% 23% 19% 18% 10% (48)% Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2019 2020 Note: 2019 and 2020 m
Slide 9: In FIC, we are stabilising and growing businesses
In FIC, we are stabilising and growing businesses 2019 – 2022 revenues, in € bn 2020 non-repeat assuming normalized markets 2020 sustainable revenues CEEMEA & Latam Client franchise >7.0 EU & US Flow Initiatives Local markets Credit Trading 6.7 Credit Solutions 6.4 Funding 5.5 Forwards Precious Meta
Slide 10: Client strategy is integral to FIC growth
Client strategy is integral to FIC growth Client relevance Client engagement Targeted client focus Led by technology Market leading position Improvement in Focus upon depth of Significant electronic in more products Deutsche Bank credit relationship with core platform market share outlook institutio
Slide 11: Transformation to further reduce costs
Transformation to further reduce costs Adjusted costs Well progressed 2021 – 2022 focus ex transformation charges Front Office Technology Infrastructure(1) (6)% CAGR — Front Office — Migration to single — Straight-through- 5.8 processing 5.3 headcount reduction platforms 4.8 — Strategic location — P
Slide 12: FIC reengineering driving efficiency & growth
FIC reengineering driving efficiency & growth Improved client insight Monetising the value of pre- and post-trade Delivering cost savings and and alignment of service activity enhanced controls Execution progress 40% 35% 30% Client interaction Pre-trade Trade capture Post-trade Infrastructure Electr
Slide 13: Revenue growth without business-led RWA increase
Revenue growth without business-led RWA increase In € bn Minimal risk weighted assets growth Operational risk Market & Credit risk 132 133 117 2019 Actuals Business growth Regulatory 2020 Outlook Business growth Regulatory 2022 Plan inflation inflation — Regulatory inflation drives majority of incre
Slide 14: Continued disciplined approach to lending
Continued disciplined approach to lending Balance sheet profile 9M 2020 loans at amortized cost(1), in € bn Risk management approach Leveraged Debt Capital Markets Diversified portfolio across multiple asset classes 7% Other(3) Asset Backed 29% Securities Investment 32% Well-structured portfolio Ban
Slide 15: Our path to sustainable profitability
Our path to sustainable profitability Return on tangible equity Cost/ Income 91% 56% ~56% ratio(1) 11% (1)% ~10% 2% (4)% 2% 2% 2019(2) 9M 2020 Revenue Cost Provision for Other(3) 2022 ex items(2) drivers drivers credit losses Target Outlook (1) Cost/income ratio defined as total noninterest expenses
Slide 16: Conclusion
Conclusion Sustainable revenue performance Increased client re-engagement and targeted client focus Material cost reductions and initiatives to further optimize Deliver growth with consistent resources and in a controlled manner We are fully committed to deliver ~10% return on tangible equity in 202
Slide 17: Appendix
Deutsche Bank Appendix
Slide 18: Speaker biography
Speaker biography Mark Fedorcik joined Bankers Trust in 1995 before it was acquired by Deutsche Bank. Since then he has taken on various leadership roles within the Investment Bank, including Co-President of the Corporate & Investment Bank (CIB) in the Americas and Co-Head of Corporate Finance. Mark
Slide 19: 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