Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (January 2022)
42 slides from Deutsche Bank's debt investor presentation, Jan 28, 2022
Slide 1: Q4 2021 Fixed Income Investor Conference Call
Deutsche Bank Q4 2021 Fixed Income Investor Conference Call 28 January 2022
Slide 2: 2021 was a pivotal year for transformation execution
2021 was a pivotal year for transformation execution Franchise Transformation Profitability Revenue and volume growth Successfully completed Prime Operating leverage and strong across all four core businesses Finance transition and risk management drive continued deleveraging, ahead improved profita
Slide 3: Group performance supports path to financial targets
Group performance supports path to financial targets FY 2019 FY 2020 FY 2021 Revenues € 23.2bn € 24.0bn € 25.4bn Adjusted costs ex transformation charges(1) € 21.5bn € 19.5bn € 19.3bn Provision for credit losses € 0.7bn € 1.8bn € 0.5bn Profit (loss) before tax € (2.6)bn € 1.0bn € 3.4bn Cost/income r
Slide 4: Transformation drives growth and profitability
Transformation drives growth and profitability Adjusted profit (loss) before tax(1), in € bn 122% Key achievements in 2021: Revenue growth supported by increasing business ✓ volumes ✓ Rating upgrades drive further client activity 6.1 Core Bank Lower loan loss provisions, supported by strong 4.2 ✓ ba
Slide 5: Strong revenue momentum in the Core Bank
Strong revenue momentum in the Core Bank Core Bank revenues ex specific items(1)(2), in € bn Group 5.5 5.9 23.2 24.0 25.3 5% +13% 11% 5.9 25.3 5.6 24.2 22.8 Corporate 1.4 5.2 1.2 5.2 Bank 5.2 Investment 1.9 9.7 1.9 9.3 Bank 7.0 Private 2.0 2.0 8.1 8.1 8.1 Bank Asset Management 0.6 0.8 2.3 2.2 2.7 Q4
Slide 6: Continued cost progress in investment year
Continued cost progress in investment year Noninterest expenses(1), in € bn CIR 108% 88% 85% Vast majority of estimated transformation-related effects -14% (14)% 97% 25.1 recognized, leading to further structural cost savings in 2022 2.3 1.2 21.2 21.5 0.8 0.9 0.8 1.3 Cost/income ratio substantially
Slide 7: Strong momentum in all lending businesses during Q4
Strong momentum in all lending businesses during Q4 In € bn Loan development Comments Change vs. FX adjusted Q3 2021 change — Strong growth in Private Bank coming from mortgage and collateralised lending Private Bank 254 +5 +4 — Corporate Bank seeing solid lending demand in Corporate Treasury Servic
Slide 8: Deposit repricing momentum will continue in 2022
Deposit repricing momentum will continue in 2022 In € bn, unless otherwise stated Quarterly charging Q4 2021 deposits by revenues, in € m Charging agreements(1) total client holdings(2) Comments 126 138 147 — FY21 charging revenues of 17 122 ~€ 400m and 4Q21 run rate 108 125 38 annualizing to ~€ 500
Slide 9: Interest rate environment becomes increasingly supportive
Interest rate environment becomes increasingly supportive In € m, unless stated otherwise Evolution of interest sensitive revenues at current forward rates(1) Comments Year-on-year impact Previous years’ cumulative impact — Interest rates headwinds of ~€ 750m in 2021 ~900 successfully offset by unde
Slide 10: Strong liquidity position in-line with targets
Strong liquidity position in-line with targets Liquidity coverage ratio(1) Comments High-quality liquid assets, in € bn Surplus above requirements — Liquidity actively managed down towards 145% 146% 143% 137% 133% ~130% target levels over the last twelve months, standing well-above regulatory requir
Slide 11: CET1 ratio improved in Q4
CET1 ratio improved in Q4 In € bn, except CET1 ratio movements (in basis points), period end, fully-loaded CET1 ratio Comments 17 13.2% 13.0% 5 — CET1 ratio up by 22 bps compared to Q3 2021: (0) — 5 bps from RWA, reflecting growth in Core Bank credit risk, more than offset by lower market and operat
Slide 12: Capital ratios well above regulatory requirements
Capital ratios well above regulatory requirements(1) In %, as of 31 December 2021, phase-in view Comments 17.8 T2 2.1 — Buffer to tightest capital requirement 281bps increased by 36 bps to 279 bps over the 15.0 quarter: AT1 2.5 2.6 T2 requirement(4) — 21 bps of the increase relate to a higher distan
Slide 13: Leverage ratio improved in Q4
Leverage ratio improved in Q4 In € bn, except movements (in bps), period end, fully-loaded Comments 17 4.9%(1) 4.8% 3 (2) — Leverage ratio increased by 18 bps in the quarter: — (2) bps from FX translation effects Q3 2021 FX Effect Leverage Capital Q4 2021 exposure change — 3 bps from Core Bank loan
Slide 14: Significant buffer over loss absorbing capacity requirements
Significant buffer over loss absorbing capacity requirements Loss absorbing capacity, in € bn, as of 31 December 2021 Surplus above requirement Comments 115 Senior 6 preferred 14 22 Senior 37 — New RWA based MREL requirement non- 45 received from the SRB reducing the preferred MREL surplus by € 8bn
Slide 15: Modest issuance requirements in 2022, in-line with 2021
Modest issuance requirements in 2022, in-line with 2021 In € bn, unless stated otherwise Covered Bonds Senior Structured/Preferred Senior Non-Preferred AT1 / T2 26 24 1 2 19 20 5 1 15-20 7 4 7 2-3 14 14 1-3 12 12 1 11 2 2 1 3 3 19 2 12 12 3 10 9-10 6 3 7 7 7 4 5 3 3 4 3-4 2 3 2 1 FY Issuance FY cont
Slide 16: Outlook
Outlook Prudent liquidity management towards target levels supporting balance sheet efficiency Business momentum reinforces confidence in 2022 revenue performance Substantially all transformation-related effects are now behind us Management actions to date to deliver significant cost benefits in key
Slide 17: Appendix
Appendix Deutsche Bank Q4 2021 Fixed Income Investor Call Investor Relations 28 January 2022
Slide 18: Financial and regulatory targets for FY 2022
Financial and regulatory targets for FY 2022 Group post-tax return on average tangible equity 8% Core Bank post-tax return on average tangible equity >9% Cost/income ratio 70% Common Equity Tier 1 capital ratio >12.5% Leverage ratio (fully loaded) ~4.5% Deutsche Bank Q4 2021 Fixed Income Investor Ca
Slide 19: Conservatively managed balance sheet
Conservatively managed balance sheet Net(1) in € bn, as of 31 December 2021 Comments Assets Liabilities & equity 1,002 1,002 — Resilient balance sheet Trading and Liquidity 146 related liabilities(3) 241 — Liquidity reserves account for ~25% of reserves(2) net balance sheet 35 Other liabilities(5) —
Slide 20: Current ratings
Current ratings As of 28th January 2022 Moody‘s Investors S&P Global Fitch Ratings DBRS Services Ratings Counterparty obligations (e.g. deposits / structured notes / A2 A-(1) A- A (high) derivatives / swaps / trade finance obligations) Senior Preferred(2) A2 A- A- A (low) Long- term unse- cured Non-
Slide 21: AT1 and Trust Preferred Securities outstanding
AT1 and Trust Preferred Securities outstanding Regulatory Original Current Nominal Next call Subsequent call Issuer Type capital ISIN issuance coupon outstanding date period treatment(1) date Deutsche Bank Frankfurt New-style AT1 / AT1 DE000DB7XHP3 6.000% € 1750m 27 May 14 30 Apr 22 Called on 28 Jan
Slide 22: Additional funding disclosure
Additional funding disclosure Capital markets issuance outstanding, in € bn, Q4 2021 By product By currency Senior Senior Capital instruments EUR USD GBP Other non-preferred structured (T1/T2) Senior Covered preferred bonds 7 19 3 14 108 bn 53 108 bn 58 41 17 6 Note: Numbers may not add up due to ro
Slide 23: Net interest income sensitivity
Net interest income sensitivity Hypothetical +100bps parallel shift impact, in € bn First year Second year 1.0 0.6 0.4 0.4 0.3 0.2 Retail Non-retail Group Retail Non-retail Group Maturity Maturity > 3M 0.3 0.1 0.4 > 3M 0.6 0.2 0.8 EUR EUR ≤ 3M -0.1 0.1 0.0 ≤ 3M -0.1 0.2 0.1 > 3M 0.0 0.1 0.1 > 3M 0.1
Slide 24: Loan book composition
Loan book composition Q4 2021, IFRS loans: € 476bn Other (1) IB Other(2) — Well diversified loan portfolio 1% Leveraged Debt Capital Markets 9% — 53% of loan portfolio in Private Bank, Asset Backed Securities 1% German Mortgages mainly consisting of German retail 6% mortgages and Wealth Management I
Slide 25: Provision for credit losses
Provision for credit losses In € bn, unless stated otherwise Annual development Comments Capital Release Unit Investment Bank Corporate Bank Private Bank — FY provisions on a moderate level at 1.8 12bps, in line with guidance 0.0 0.7 — Low level of provisions supported by the quality of our loan boo
Slide 26: Level 3 assets
Level 3 assets In € bn, as of 31 December 2021 Assets (total: € 25bn) Comments Equity securities Mortgage backed securities Other 1 2 0 Derivative — Level 3 is an indicator of valuation Debt 9 Assets securities 5 uncertainty and not of asset quality — The movements in Level 3 assets reflect that the
Slide 27: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, fully loaded, in € bn, period end Leverage exposure Risk weighted assets 352 352 62 Operational Risk RWA 62 1,105 1,108 Market Risk RWA Trading assets 119 99 29 20 Credit valuation 6 24 adjustments Derivatives(1) 134 138 Lending 444 463 135 250 Lendin
Slide 28: Litigation update
Litigation update In € bn, period end Litigation provisions(1) Comments 0.9 1.0 1.1 0.8 0.8 ― Provisions increased modestly by € 0.1bn quarter Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 on quarter ― Contingent liabilities decreased by € 0.2bn quarter on quarter. Contingent liabilities include possible
Slide 29: Simplified legal entity structure
Simplified legal entity structure Entities without Branches Subsidiaries Deutsche Bank AG Issuing direct issuance Germany entities activities Americas EMEA APAC DWS DB AG DB AG DB AG DB AG DB AG New London Singapore Hong Kong Sydney York Branch Branch Branch Branch Branch USA Great Britain Singapore
Slide 30: Significant achievements in sustainability
Significant achievements in sustainability In € bn, cumulative since 2020 Sustainable Finance(1) volumes reported vs. target Key achievements in 2021 46 157 ≥200 Brought forward € 200bn target from YE 2025 Sustainable to YE 2023 and outperformed YE 2021 target Finance Target >200 Global market share
Slide 31: Deutsche Bank's performance in leading ESG Ratings
Deutsche Bank’s performance in leading ESG Ratings Overview of core ESG Ratings as of 28th January 2021 Score Range Rating Rating Agency ESG Rating Criteria (Weighting) (best to Rating Development Score DB worst) ▪ Environment (15%) Improvement from BBB ▪ Social (50%) AAA to CCC A to A end of 2020 ▪
Slide 32: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Q4 2021 highlights Our key focus areas Recent achievements – Continued progress in sustainable financing, with cumulative volumes of € 157bn (1) – Launched new exclusive MSCI World ESG Leaders Select Top 100 Index strategy Sustainable – ESG advisory concept rolled out
Slide 33: Q4/FY 2021 Group financial highlights
Q4/FY 2021 Group financial highlights In € m, unless stated otherwise Change in % Change in % Q4 2021 vs. Q4 2020 FY 2021 vs. FY 2020 Revenues 5,900 8 25,410 6 Revenues Revenues ex specific items(1) 5,888 7 25,337 6 Noninterest expenses 5,564 11 21,505 1 Costs Adjusted costs ex transformation charge
Slide 34: Definition of adjustments
Definition of adjustments Revenues excluding specific items are calculated by adjusting net revenues under IFRS for specific revenue items which Revenues generally fall outside the usual nature or scope of the business and are likely to distort an accurate assessment of the excluding specific divisi
Slide 35: Core Bank adjusted post-tax RoTE
Core Bank adjusted post-tax RoTE In € m, unless stated otherwise Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Profit (loss) 616 486 617 489 2,208 1,332 1,013 577 569 3,491 Profit (loss) attributable to noncontrolling interests 23 32 31 42 129 36 33 23 52 144 Profit
Slide 36: Specific revenue items and adjusted costs – Q4 2021
Specific revenue items and adjusted costs – Q4 2021 In € m Q4 2021 Q4 2020 Q3 2021 Core Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Bank Revenues 1,352 1,913 2,040 789 (199) 5,895 5 5,900 1,226 1,892 1,963 599 (161) 5,518 (65) 5,453 1,255 2,227 1
Slide 37: Specific revenue items and adjusted costs – FY 2021
Specific revenue items and adjusted costs – FY 2021 In € m FY 2021 FY 2020 Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Revenues 5,150 9,631 8,234 2,708 (339) 25,384 26 25,410 5,146 9,286 8,126 2,229 (534) 24,253 (225) 24,028 DVA - IB Other / CRU - (28) - - - (28) (2) (30)
Slide 38: Specific revenue items and adjusted costs – FY 2019
Specific revenue items and adjusted costs – FY 2019 In € m FY 2019 Core CB IB PB AM C&O CRU Group Bank Revenues 5,247 7,023 8,239 2,332 107 22,948 217 23,165 DVA - IB Other / CRU - (140) - - - (140) (35) (175) Specific revenue items Sale of PB systems to TCS - - - - - - - - Change in valuation of an
Slide 39: Adjusted profit (loss) before tax (PBT) – Q4 2021
Adjusted profit (loss) before tax (PBT) – Q4 2021 In € m Q4 2021 Q4 2020 Specific Transfor- Specific Transfor- Reported Goodwill Restructuring Reported Goodwill Restructuring revenue mation Adjusted PBT revenue mation Adjusted PBT PBT impairments & severance PBT impairments & severance items charges
Slide 40: Adjusted profit (loss) before tax (PBT) – FY 2021
Adjusted profit (loss) before tax (PBT) – FY 2021 In € m FY 2021 FY 2020 Specific Transfor- Specific Transfor- Reported Goodwill Restructuring Reported Goodwill Restructuring revenue mation Adjusted PBT revenue mation Adjusted PBT PBT impairments & severance PBT impairments & severance items charges
Slide 41: Transformation-related effects
Transformation-related effects In € bn, unless stated otherwise 2019 – 2019 – 2022 Q4 2021 cumulative % of total cumulative expected 2019 – Q4 2021 expenses expenses Q4 2021 Deferred tax Deferred Tax Asset asset valuation 2.8 - 2.8 2.8 100% valuation adjustment adjustment Nonoperating Goodwill impai
Slide 42: Cautionary statements
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2021 and SEC Form 20-F are scheduled to be published on 11 March 2022. This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact
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