Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2020)
29 slides from Deutsche Bank's investor day presentation, Dec 9, 2020
Slide 1: Investor Deep Dive Private Bank
Investor Deep Dive Private Bank Karl von Rohr Claudio de Sanctis 9 December 2020 Deutsche Bank
Slide 2: Summary
Summary Executing on cost reduction program to improve efficiency Capitalizing on advisory capabilities to grow commission and fee income RoTE of 8 – 9% in 2022 on a path to sustainably higher returns Karl von Rohr 1 Investor Deep Dive, 9 December 2020
Slide 3: Private Bank at a glance
Private Bank at a glance 9M 2020 Global reach, € 6.1bn 22m € 477bn € 234bn >60 Top 5 deep roots in Revenues Clients Assets under Loan Countries Eurozone Europe (33% of group) worldwide management book actively served countries by GDP covered Private Bank Germany International Private Bank Two distin
Slide 4: Material progress made
Material progress made 2019 Investor Deep Dive Progress in 2020 € 0.4bn total / € 0.2bn incremental savings from German integration Accelerate German Reached balance of interest agreements with workers council integration Communicated new branch model Reprice € 0.1bn incremental repricing re
Slide 5: Progress towards increased profitability
Progress towards increased profitability In € bn Revenues Adjusted costs ex transformation charges Comission and fee income Net interest income Other (1)% 6.2 6.1 (5)% 5.5 5.2 +6% 9M 2019 Headwinds Operational 9M 2020 9M 2019 9M 2020 growth Karl von Rohr 4 Investor Deep Dive, 9 December 2020
Slide 6: Adjustments to 2022 plan
Adjustments to 2022 plan In € bn Revenue CAGR 2019 vs. 2022 Adjusted cost base reduction versus 2019(2) Prior plan 1.4 2% 1.4 1.2 1% 0.4 Investor Deep Dive Updated plan 2020 2021 2022 2023 (Dec 2019) (Dec 2020)(1) Outlook — Further interest rate headwinds — Higher investments in 2022 to complete s
Slide 7: Drivers to improve profitability
Drivers to improve profitability Drivers Ambition — € 0.4bn from Private Bank Germany € (0.8)bn Reduce — € 0.3bn from International Private Bank 2022 adjusted costs cost base reduction — € 0.1bn from structural measures vs. 2020(1) — Leverage advisory capabilities to help clients’ wealth >€ 30bn Gro
Slide 8: Our path to improved profitability
Our path to improved profitability Return on tangible equity Cost/ Income 93% ~75% ratio(1) Ambition 2020 – 2022 adjusted cost reduction € (0.8)bn 0% (0)% ~8 – 9% 6% Ambition 2022 revenues € 8.3bn 2% 1% 9M 2020 Revenue Cost Provision for Other(3) 2022 ex items(2) drivers drivers credit losses Target
Slide 9: International Private Bank
International Private Bank Claudio de Sanctis 9 December 2020 Deutsche Bank
Slide 10: International Private Bank at a glance
International Private Bank International Private Bank at a glance 9M 2020 Global reach, 3.2m € 265bn € 77bn € 2.3bn deep roots in Clients Asset under Europe Loan book Revenues(1) worldwide management 73% Private Banking & Wealth Management Personal Banking 27% Two distinct client Only Eurozone Ban
Slide 11: Levers to drive profitability
International Private Bank Levers to drive profitability Growth Efficiency — Leverage Wealth Management products and Short- services for Private Banking clients — Merge product, central and infrastructure term functions — Re-segment clients who are eligible for levers Wealth Management services but
Slide 12: A unique client proposition
International Private Bank A unique client proposition Bank for U/HNWI focused Premium bank for family entrepreneurs global wealth manager affluent customers ~350k firms (mainly family- U/HNWI predicted to grow Higher cross-selling potential owned) in Italy and Spain(1) by 27% until 2024(2) within a
Slide 13: Bank for family entrepreneurs: client example
International Private Bank Bank for family entrepreneurs: client example Italian mid-cap firm Evolution of client relationship and related revenues Business Banking Wealth Management Further potential Wealth Management Wealth discretionary mandate M&A advisory relationship established in 2019 Lombar
Slide 14: 9M 2020: achievements to date
International Private Bank 9M 2020: achievements to date 9M 2020 vs. 9M 2019 Revenue growth(1) Peer average(3) Increase of net flows in 0% (3)% ~180% investment products 3% 1% Net flows over WM investment 5% volumes (2)% WM clients investing in Strategic 10%(4) Asset Allocation mandates Adjusted cos
Slide 15: Revenue growth drivers
International Private Bank Revenue growth drivers In € bn 2020 – 2022 Revenues ex specific items Driver Measures outlook — Launch ESG compliant Discretionary Portfolio ESG Management strategies (target to triple ESG assets by 2022) and integrate ESG scoring in our processes ~5% WM growth — Monetize
Slide 16: Cost efficiency measures
International Private Bank Cost efficiency measures In € bn Adjusted costs 2020 – 2022 ex transformation charges Drivers Measures Progress(1) outlook — Normalization of investments after Investments platform upgrades, especially in Italy during 2020 — Focus product offering and organisation (0.1) ~(
Slide 17: Private Bank Germany
Private Bank Germany Karl von Rohr 9 December 2020 Deutsche Bank
Slide 18: Private Bank Germany at a glance
Private Bank Germany Private Bank Germany at a glance 9M 2020 The leading 19m ~1,300 € 212bn € 158bn € 3.8bn private bank Clients in Germany Branches Assets under Loan book Revenues in Germany Management Germany’s leading retail bank ready to drive scale benefits from a single platform Two distinct
Slide 19: Delivery of our strategy is paying off
Private Bank Germany Delivery of our strategy is paying off Operating leverage(1) Delivery against our priorities(3) Grew lending volume by 5% Revenues Stable Achieved € 0.1bn repricing revenues in 2020 Renegotiated insurance partnerships 4% Net Grew AuM with net inflows of >€ 4bn commission
Slide 20: Strategy aligned to market opportunities
Private Bank Germany Strategy aligned to market opportunities German 3.1 % € 2.7tn 10m 5% 1.3% (17)% Market Average Household Equity holders(3) Loan growth(4) NPL ratio(5) Industry branch GDP growth(1) savings(2) reduction(6) Early adopters Key Wealth Sustainable loan Consolidation ESG emerge as tre
Slide 21: Working to offset revenue headwinds
Private Bank Germany Working to offset revenue headwinds In € bn 2020 – 2022 Revenues ex specific items Drivers Measures outlook — Grow lending volume ~6% per year focused on Loans mortgages and consumer finance ~0% CAGR — Convert ~€ 7bn of deposits into investment products 5.1 5.1 Advisory business
Slide 22: Consolidation of German Retail Banking IT platform
Private Bank Germany Consolidation of German Retail Banking IT platform In € bn Financial impact(1) (0.0) (0.0) (0.0) 0.2 0.3 — Migration of 12m Postbank clients to single IT platform Scope — Implementation of cloud-based front-end — Completed complexity assessment and process gap analysis 0.2 0.3 P
Slide 23: Measures to generate significant reductions in costs
Private Bank Germany Measures to generate significant reductions in costs In € bn Adjusted costs 2020 – 2022 ex transformation charges Drivers Measures(1) Progress(2) impact(3) — Decommission Postbank IT platform and reduce IT applications by ~50% IT platform ~ 0.0 — Boost digital capabilities lever
Slide 24: Closing remarks
Closing remarks Karl von Rohr 9 December 2020 Deutsche Bank
Slide 25: Conclusion
Conclusion Execute cost reduction program Capitalize on growth opportunities Promote innovative and sustainable solutions Karl von Rohr 24 Investor Deep Dive, 9 December 2020
Slide 26: Appendix
Deutsche Bank Appendix
Slide 27: Speaker biography – Karl von Rohr
Speaker biography – Karl von Rohr Karl von Rohr was appointed as a member of our Management Board on November 1, 2015 and became President in April 2018. In July 2019 he took on responsibility for the Private Bank and Asset Management (DWS). He is also responsible for the regions Germany and Europe,
Slide 28: Speaker biography – Claudio de Sanctis
Speaker biography – Claudio de Sanctis Claudio de Sanctis is a Member of Deutsche Bank’s Group Management Committee, CEO of EMEA and Head of the International Private Bank (IPB). De Sanctis became Head of the IPB on its creation in June 2020. He had previously been Global Head of Deutsche Bank Wealt
Slide 29: 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