Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (February 2018)
26 slides from Deutsche Bank's debt investor presentation, Feb 7, 2018
Slide 1: Q4 & FY 2017 Fixed Income Investor Conference Call
Deutsche Bank Q4 & FY 2017 Fixed Income Investor Conference Call James von Moltke, Chief Financial Officer Dixit Joshi, Group Treasurer 7 February 2018
Slide 2: Agenda
Agenda 1 Q4 & FY 2017 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank Q4 & FY 2017 Fixed Income Investor Call 1 Investor Relations 7 February 2018
Slide 3: Highlights
Highlights Improved profitability despite revenue headwinds Reduced costs in 2017, but more work to do Success in resolving legacy litigation matters and continued investments in controls Progress in executing on business strategies and technology initiatives Making tangible progress on strategic pl
Slide 4: Group financial summary
Group financial summary € bn, unless otherwise stated Q4 2017 vs. FY 2017 vs. Q4 2017 Q4 2016 FY 2017 FY 2016 Q4 2016 FY 2016 Net revenues 5.7 7.1 (19)% 26.4 30.0 (12)% Provision for credit losses (0.1) (0.5) (74)% (0.5) (1.4) (62)% Noninterest expenses (6.9) (9.0) (23)% (24.6) (29.4) (16)% Profit &
Slide 5: Revenue drivers
Revenue drivers Revenues excluding noted items in € bn, unless otherwise stated FY 2017 YoY Δ YoY drivers Low volumes and volatility in trading, GTB perimeter adjustments as CIB(1) 14.6 (2.2) (13)% well as the impact of higher liquidity driven funding charges PCB(2) 10.3 0.0 0% Revenues flat. Impact
Slide 6: Noninterest expenses
Noninterest expenses € bn, unless otherwise stated (14)% € (4.1) 29.4 28.8 1.6 1.6 2.4 2.2 0.7 24.6 0.0 0.7 0.6 0.2 (19)% / € (1.7) Impairments 9.0 8.6 / Policyholder 1.1 Benefits and Claims 1.1 6.9 0.0 Litigation(1) 1.6 1.4 0.1 24.7 24.3 23.8 Restructuring and 0.1 0.1 5.7 0.0 0.0 0.1 0.4 Severance
Slide 7: Outlook
Outlook 2018 Adjusted costs expected to be € ~23bn, reflecting IBIT positive impact of delayed business sales Credit costs and litigation expense likely to increase in 2018, but remain well below peak levels Restructuring costs in 2018 expected to be similar to 2017 Strong macro-economic backdrop wi
Slide 8: Agenda
Agenda 1 Q4 & FY 2017 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank Q4 & FY 2017 Fixed Income Investor Call 7 Investor Relations 7 February 2018
Slide 9: Common Equity Tier 1 Capital and Risk-weighted assets
Common Equity Tier 1 Capital and Risk-weighted assets CRD4, fully loaded, unless otherwise stated 13.8% CET1 ratio, fully loaded 14.0% — Q4 2017 CET1 capital down by € (0.6)bn on a FX 14.6% CET1 ratio, phase-in 14.8% neutral basis to € 48.4bn — € (2.2)bn net loss in the quarter, including CET1, € bn
Slide 10: Leverage
Leverage CRD4, fully loaded, unless otherwise stated 3.8% Leverage ratio, fully loaded 3.8% — Leverage exposure down € 25bn incl. € (11)bn FX 4.2% Leverage ratio, phase-in 4.1% benefit. The FX neutral exposure decrease is € 15bn Leverage exposure, € bn 12 — Volume growth in Loans € 7bn, Off-B/S € 3b
Slide 11: Liquidity
Liquidity Liquidity Coverage Ratio(1) (LCR) 148% — LCR of 140%, a € 74bn surplus versus the 144% 141% 140% required 100% level 128% — LCR increased 12ppts and liquidity reserves 119% rose by € 61bn YoY mainly driven by higher deposit balances in stable businesses and other items, including the capit
Slide 12: External funding profile
External funding profile As of 31 December 2017, € bn — Total funding sources(5) increased by € 9bn to € 1,015bn Secured funding and Financing Equity, over the quarter, mainly driven by Vehicles 0%, shorts, 6%, € 64bn(1) € 2bn — Increase in retail deposits 17%, € 177bn(4) 72% from — Higher repo acti
Slide 13: 2018 funding plan and contractual maturities
2018 funding plan and contractual maturities € bn Funding Plan 2018 Maturity profile Senior Plain Vanilla(1) Senior Structured / Preferred(2) Covered Bonds(2) Capital instruments(1) Contractual maturities(3) 25-30 25 24 23 21 12-13 18 15 17 16 15 16 8 11 7 6 10-12 4 4 8 5 3 2-3 3 4 3 5 1 1-2 2 4 1 1
Slide 14: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) 2019 Transitional TLAC requirements(1) and availability as of Q4 2017 € 122bn Plain-vanilla 59bn senior debt(2) € 84bn TLAC € 71bn G-SIB buffer adjust- 2.0% 0.4bn Capital Conservation buffer 0.2bn ments(3) 2.5% 15bn 16.5bn AT1/T2(4) DB has TLAC of 36% Additional
Slide 15: Preliminary Additional Tier 1 (AT1) payment capacity
Preliminary Additional Tier 1 (AT1) payment capacity € bn 2017 unaudited 2016 2015 Comments Available Distributable Items ~500 514 234 HGB result driving ADI number Tier 1 interest expense add- Adds back prior year interest expenses for legacy and CRR- 694 724 858 back(1) compliant Additional Tier 1
Slide 16: Agenda
Agenda 1 Q4 & FY 2017 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank Q4 & FY 2017 Fixed Income Investor Call 15 Investor Relations 7 February 2018
Slide 17: AT1 and Trust Preferred Securities instruments outstanding
AT1 and Trust Preferred Securities instruments outstanding(1) Original Regulatory Capital Nominal Next call Subsequent Issuer ISIN Coupon issuance treatment(1) recognition(1) outstanding date call period date DB Contingent Capital Trust II AT1 / Tier 2 100% / 100% US25153X2080 6.550% USD 800mn 23-Ma
Slide 18: Total capital requirements
Total capital requirements 31 Dec 2017 (phase-in) 1 Jan 2018 (phase-in) Fully loaded(1) CET1 AT1 Tier 2 X.X Contribution from legacy Tier 1 instruments(2) 18.72% 18.44% 18.44% 1.91% 1.91% 1.13% 3.04% 15.27% 1.99% 1.14% 2.49% 1.13% 14.15% 1.35% 2.00% 13.02% 2.00% 1.50% 2.00% 1.50% 1.50% 14.83% 14.05%
Slide 19: Funding sources to TLAC reconciliation
Funding sources to TLAC reconciliation As of 31 December 2017, € bn 200.7 Covered bonds 22.2 (22.2) Structured 25.4 (25.4) notes (10.9) (1.8) (18.2) +0.4 122.5 Plain-vanilla 71.4 Plain-vanilla senior debt senior debt 58.6 TLAC AT1/T2 18.1 0.4 adjustments 15.1 AT1/T2(5) Shareholder’s 63.6 Equity 48.4
Slide 20: Current Ratings
Current Ratings Counterparty obligations (e.g. Deposits / Structured Notes / A3(cr)(1) ICR(2): A-/neg A-(3) A(high) Derivatives / Swaps) Senior Preferred(4) A3 A- A- - Long- term unse- cured Non-preferred Baa2/neg BBB- BBB+ A (low) Tier 2 Ba2 BB+ BBB - Legacy T1 B1 B+ BB - AT1 B1 B+ BB- - Short-term
Slide 21: Rating landscape – senior unsecured and short-term ratings
Rating landscape – senior unsecured and short-term ratings Moody‘s S&P Operating company / Preferred Senior(1) Holding company / Non-preferred Senior(2) Rating scale EU Peers Swiss Peers US Peers Short-term Long-term BAR BNP HSBC SOC CS UBS BoA Citi GS JPM MS P/A-1 Aa2/AA P/A-1 Aa3/AA- P/A-1 A1/A+ P
Slide 22: Balance sheet overview
Balance sheet overview As of 31 December 2017, € bn Assets (after netting) Liabilities & equity (after netting) Comments 1,095 1,095 Unsecured — Net balance sheet of € 1,095bn represents 45 Wholesale(6) the funding required after recognizing (i) Cash, central bank 222 legal netting agreements, (ii)
Slide 23: Preliminary Day 1 impact of IFRS 9
Preliminary Day 1 impact of IFRS 9 Shareholders Equity € bn Classification & measurement Impairments ― IFRS 9 introduction ― changes accounting classification of (0.2) (0.1) certain portfolios/positions ― accelerates provisioning of credit (0.6) losses taking into account forward (0.8) 0.2 looking i
Slide 24: Litigation update
Litigation update € bn Litigation reserves(1) Contingent liabilities(1) 2.3 2.0 2.5 1.6 30 Sep 2017 31 Dec 2017 30 Sep 2017 31 Dec 2017 ― Decrease due to settlement payments for major cases as ― Includes possible obligations where an estimate can be well as releases for lower than expected settlemen
Slide 25: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, € m unless otherwise stated Average VaR Stressed VaR(1) € 1.2bn Sales & Trading revenues € 0.9bn 180 160 140 120 100 80 60 40 20 27 32 32 30 25 78 76 83 81 67 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 (1) Stressed Value-at-Risk is calculated on t
Slide 26: Cautionary statements
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2017 and SEC Form 20-F are scheduled to be published on 16 March 2018. This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact
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