Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (February 2023)
30 slides from Deutsche Bank's debt investor presentation, February 2023
Slide 1: Client & Creditor Overview
Deutsche Bank Investor Relations Client & Creditor Overview February 2023
Slide 2: Agenda
Agenda 1 Our transformation achievements 2 Strategic evolution to 2025 3 Appendix Deutsche Bank Client & Creditor Overview 1 Investor Relations
Slide 3: Financial milestones achieved
Financial milestones achieved In % 2018 2021 2022 2022 guidance Return on tangible (0.1) 3.8 9.41 8 equity (RoTE) Core Bank RoTE 2.4 6.4 11.31 >9 CIR 92.7 84.6 74.9 mid to low 70s CET1 ratio 13.6 13.2 13.4 >12.5 Leverage ratio 4.1 4.9 4.6 ~4.5 Note: Throughout this presentation totals may not sum du
Slide 4: Four client-centric businesses with improved revenue growth and profitability
Four client-centric businesses with improved revenue growth and profitability Revenue CAGR CIR RoTE1 Enhanced value proposition, with Corporate Bank global network and capabilities, and 5% 74% 62% 9% 12% strengthened client franchise 2018 to 2022 2018 2022 2018 2022 Transformation of FIC business, w
Slide 5: Diversified business with greater resilience
Diversified business with greater resilience Core Bank pre-provision profit1, in € bn, unless stated otherwise RoTE (7.4)% 4.0% 6.4% 11.3%2 Investment Bank Corporate Bank 7.8 Private Bank Asset Management Corporate & Other 3.8 5.3 5.0 3.8 2.4 3.9 1.3 1.0 2.6 0.9 0.6 0.8 0.4 0.6 0.1 1.0 0.8 0.6 0.7 (
Slide 6: Revenue performance has exceeded expectations
Revenue performance has exceeded expectations Group revenue development Achievements € 27.2bn Group revenues at € 27.2bn are 9% higher than originally planned, 7% higher than in 2019 25.4 ~€ 25bn 24.0 Compete to win 23.2 aspiration for Core Bank growth more than offsetting fore-gone 2022 revenues fr
Slide 7: Ongoing cost progress, despite pressures
Ongoing cost progress, despite pressures In % Cost/income ratio Comments Higher efficiency in all Core Bank businesses 108 driving operating leverage at Group level 88 85 Generated run-rate savings of more than 75 € 3bn by executing Compete to win transformation Restructuring, improved governance an
Slide 8: Self-funded transformation offsetting headwinds
Self-funded transformation offsetting headwinds CET1 ratio, in % 13.6 0.5 13.4 2.1 -1.7 -1.0 2018 Regulatory impact Capital impact of Core Bank CRU net impact 2022 transformation capital accretion effects Self-funded transformation while keeping Capital distribution via dividends and CET1 ratio abov
Slide 9: High-quality loan book supports credit loss provisions
High-quality loan book supports credit loss provisions ~80% composed of Private Bank and Corporate Bank1 Investment Bank Well-diversified loan book, with strong Private collateral and active hedging to mitigate 21% Bank downside risks 54% 25% Corporate 2022 provision for credit losses elevated, Bank
Slide 10: Disciplined risk management with strong balance sheet
Disciplined risk management with strong balance sheet 2022 Strong and stable balance sheet and sound CET1 ratio 13.4% liquidity metrics, positioned to navigate uncertainty Average Value-at-Risk € 47m Investments in risk framework, controls and technology facilitate timely and proactive risk manageme
Slide 11: Agenda
Agenda 1 Our transformation achievements 2 Strategic evolution to 2025 3 Appendix Deutsche Bank Client & Creditor Overview 10 Investor Relations
Slide 12: Your Global Hausbank
Building on our heritage Your Global Hausbank Deep understanding Long-term oriented partner of client needs through every cycle Global network combined with Digital channels and local expertise personal advice Comprehensive and Agile organization anticipating sophisticated product suite future clien
Slide 13: Positioning as Global Hausbank enables sustainable growth
Positioning as Global Hausbank enables sustainable growth Key themes Platform positioned for growth Leverage tailwinds from interest rate sensitive products Macro shifts Deploy risk management expertise to support clients in volatile markets Intensify transition dialogue with corporate and private c
Slide 14: Revenues planned to reach ~€ 30bn by 2025
Revenues planned to reach ~€ 30bn by 2025 Revenues, in € bn, unless stated otherwise Positioning as Global Hausbank enables growth on the back of key themes of this decade ~30 27.2 Volume growth particularly in low risk, stable businesses Strategic initiatives at low marginal CIR Interest rate tailw
Slide 15: Focus on cost base supports further CIR reduction
Focus on cost base supports further CIR reduction Cost/income Ratio Significantly enhanced operating leverage driven by revenue 75% growth and continued cost discipline <62.5% Absence of transformation-related effects → and lower CRU costs Targeted additional operational efficiencies → (>€ 2bn effic
Slide 16: Growing shareholder distribution over time
Growing shareholder distribution over time Distribution, in € bn 8(1) ~€ 3.3bn 2025+ payout guidance anticipated total dividends for FY 2021-2024 2025 Dividends per share (in €) 50% total payout ratio through a combination of dividends paid in respect of FY 2024 and share buy- +50% p.a. 0.68 backs e
Slide 17: Confirmation of 2025 targets
Confirmation of 2025 targets Financial targets Capital objectives 3.5- >10% <62.5% ~13% 50% 4.5% Cost/income Total payout Post-tax RoTE Revenue CAGR CET1 ratio in 2025 2021-2025 ratio ratio in 2025 from 2025 Confirm 2025 target Increased revenue Reiterate CIR target, Aim to operate with a Confirm 20
Slide 18: Our path from stabilization to industry leadership
Our path from stabilization to industry leadership ✓ Stabilization and transformation Sustainable growth Industry leadership (2019 – 2022) (today – 2025) (2025+) Client centric-setup Strong competitive positioning Leading Global Hausbank Rightsizing and efficiency Profitable growth and ear
Slide 19: Appendix
Appendix
Slide 20: Current ratings
Current ratings February 2023 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-preferred Baa1 BBB-
Slide 21: Continuing positive trend in net interest margin
Continuing positive trend in net interest margin Average interest earning assets, in € bn1 Net interest margin, in %2 1.47% 1.51% 1.39% 1.23% 1.22% 1.19% 1.15% 1.17% 1.11% 998 989 967 971 962 946 923 924 913 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 (1) Average balances
Slide 22: 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 04/23 07/23 10/23 01/24 04/24 07/24 10/24 01/25 04/23 07/23 10/23 01/24 04/24 07/24 10/24 01/25 EUR 10-year swap rate USD 10-year swa
Slide 23: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Q4 2022 highlights Our key focus areas Recent achievements — Increase of cumulative volumes in sustainable financing and investment by € 18bn to € 215bn1, reaching our three-year-target, announced 2020 — Deal highlights: Deutsche Bank acted as structuring advisor and
Slide 24: Deutsche Bank’s performance in leading ESG ratings
Deutsche Bank’s performance in leading ESG ratings Overview of core ESG ratings as of December 31, 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%) − Corpor
Slide 25: Sustainable Finance volume target for 2022 exceeded
Sustainable Finance volume target for 2022 exceeded In € bn, cumulative since 2020 Sustainable Finance1 volumes vs. target Key sustainability highlights 215 >200 Importance of sustainability continues to 157 grow in management and businesses’ agenda 46 Overachieved Sustainable Finance volume YE 2020
Slide 26: Depositors and counterparties are protected by € 116bn loss-absorbing capacity
Depositors and counterparties are protected by € 116bn loss-absorbing capacity(1) Deposits ≤ €100k / short-term liabilities(2) Deposits > €100k of Bank recovery and resolution framework was Loss participation natural persons / SMEs established after the 2008 financial crisis to only if TLAC is Other
Slide 27: Level 3 assets
Level 3 assets In € bn, as of 31 December 2022 Assets (total: € 27bn) Comments Equity securities Mortgage backed securities Other 1 3 0 — Level 3 is an indicator of valuation Derivative Debt 10 Assets uncertainty and not of asset quality securities 5 — The Group classifies financial instruments as L
Slide 28: Conservatively managed balance sheet
Conservatively managed balance sheet In €bn, net(1), as of 31 December 2022 Comments Assets Liabilities & equity 1,019 1,019 Trading and 148 related liabilities3 Liquidity reserves2 256 40 Other liabilities5 — Resilient balance sheet — Liquidity reserves account for 25% of Trading and net balance sh
Slide 29: Contacts and key additional materials
Contacts and key additional materials Investor Relations contact details Deutsche Bank AG Investor Relations Team Tel: +49.69.910-8000 db.ir@db.com Links to key investor presentations: • Q4 2022 results (2 February 2023): Deutsche-Bank-Q4-FY-2022-Presentation.pdf (db.com) • Investor Deep Dive (10 Ma
Slide 30: Cautionary statements
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2022 and SEC Form 20-F are scheduled to be published on March 17, 2023. Forward-looking statements This presentation contains forward-looking statements. Forward-looking statements are statements
Deutsche Bank — Debt Investor Presentation (February 2023) on 6ix