Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2022 Earnings Presentation
46 slides from Deutsche Bank's earnings presentation, Apr 27, 2022
Slide 1: Q1 2022 results
Deutsche Bank Q1 2022 results 27 April 2022
Slide 2: Results support trajectory to FY targets and ambitions
Results support trajectory to FY targets and ambitions Q1 2022 Performance Profitability Resilience Group revenues of € 7.3bn, Ongoing improvements in Continued prudent risk +1% YoY, with growth across profitability, with € 1.2bn of management through elevated all four core businesses after-tax prof
Slide 3: Progress on strategic priorities in core businesses
Progress on strategic priorities in core businesses Q1 2022 Loan and deposit growth 7% Strong client activity in FIC, 17% Investment Bank driving NII increase, Corporate Bank with year-on-year growth supported by interest rate RoTE RoTE across both institutional and tailwinds corporate clients
Slide 4: Russia: impact continues to be carefully monitored
Russia: impact continues to be carefully monitored Loan exposure reduced to € 1.3bn; net loan exposure reduced to € 0.5bn, with contingent risk Exposure(1) also significantly reduced and overall low levels of direct market risk exposure Existing controls, as a result of continued investments, suppor
Slide 5: Sustainability strategy well on track
Sustainability strategy well on track In € bn, cumulative since 2020 Sustainable Finance(1) volumes vs. target 46 157 177 Increase in ambition >500 Former ambition >400 >300 Targets >200 YE 2020 YE 2021 Q1 2022 2022 2023 2024 2025 Reported volumes by business and product type Key achievements in Q1
Slide 6: Positive operating performance
Positive operating performance In € bn, unless stated otherwise Core Bank revenues(1) Group noninterest expenses Group 7.2 7.3 CIR 77% 73% Average (4)% +7% 7.3 5.6 7.2 0.1 5.4 Corporate 1.5 +11% 0.8 0.8 1.3 Divisional growth rates Bank Investment 3.3 +7% 3.1 Bank 4.7 4.6 Private Bank 2.2 2.2 +2% Ass
Slide 7: Evidenced step off towards targets in key measurement year
Evidenced step off towards targets in key measurement year Supporting clients across all four core businesses as they navigate through a challenging environment Continued improvements in profitability and efficiency, underpinned by strong risk management Sustainable business growth supports strategy
Slide 8: Q1 2022 Group financial highlights
Q1 2022 Group financial highlights In € m, unless stated otherwise Change in % Change in % Q1 2022 vs. Q1 2021 vs. Q4 2021 Revenues 7,328 1 24 Revenues Revenues ex specific items(1) 7,330 1 24 Noninterest expenses 5,377 (4) (3) Costs Adjusted costs 5,385 (1) 4 Profit (loss) before tax 1,658 4 n.m. P
Slide 9: Q1 2022 Core Bank financial highlights
Q1 2022 Core Bank financial highlights In € bn, unless stated otherwise Change vs. Change vs. Q1 2022 Q1 2021 Q4 2021 Revenues 7.3 3% 24% Revenues ex specific items(1) 7.3 3% 25% Noninterest expenses 5.0 (1)% (3)% Adjusted costs 5.1 1% 3% Profit (loss) before tax 2.0 (0)% n.m. Profit (loss) 1.5 10%
Slide 10: Net interest margin
Net interest margin Evolution of Group NIM and average interest earning assets Comments Average interest earning assets, in € bn(1) — NIM decline in H1 2020 driven by Net interest margin, in %(2) reduced U.S. base rates, largely neutralized in P&L through lower 1.46% 1.37% swap costs 1.23% 1.22% — N
Slide 11: Adjusted costs – Q1 2022 (QoQ)
Adjusted costs – Q1 2022 (QoQ) In € m, unless stated otherwise Q1 2022 quarter-on-quarter comments Prime Finance(1) Q4 2021 ex transformation 4,878 70 4,948 charges & bank levies FX impact — Adjusted costs excluding transformation Compensation charges and bank levies decreased 7% 10 31 and benefits(
Slide 12: Adjusted costs – Q1 2022 (YoY)
Adjusted costs – Q1 2022 (YoY) In € m, unless stated otherwise Q1 2022 year-on-year comments Prime Finance(1) Q1 2021 ex transformation 4,674 77 4,751 charges & bank levies FX impact — Adjusted costs excluding transformation Compensation 49 58 charges and bank levies decreased 3% and benefits(2) yea
Slide 13: Provision for credit losses
Provision for credit losses In € mn, unless stated otherwise Comments Stage 1 + 2 Stage 3 761 — Moderate quarter-on-quarter increase 252 driven by war in Ukraine 506 — Elevated Stage 1+2 provisions relate to Russian exposure migration and 273 additional overlays to reflect 230 251 macroeconomic unce
Slide 14: Russia: direct impact well contained
Russia: direct impact well contained In € bn, unless stated otherwise Dec 31, 2021 Change in % Mar 31, 2022 Comments Gross loans 1.4(1) (5) 1.3 — Exposure reduction (primarily Corporate Bank) from active exposure management, client repayments and roll- off of guarantees — Contingent Risk significant
Slide 15: Capital ratios
Capital ratios Movements in basis points (bps), period end CET1 ratio Comments 13.2% — CET1 ratio down 41bps compared to Q4 2021: 12.8% (1) — (37)bps from RWA changes, including (20)bps from ECB (37) (3) mandated model adjustments with the remainder from investments into Core Bank business growth an
Slide 16: Segment results
Segment results Deutsche Bank Q1 2022 results Investor Relations 27 April 2022
Slide 17: Corporate Bank
Corporate Bank In € m, unless stated otherwise Change in Change in % vs. % vs. Q1 2022 Q1 2021 Q4 2021 Q1 2022 year-on-year comments Revenues 1,461 11 8 — Revenues 11% higher reflecting Revenues continued impact of our deposit Revenues ex specific items(1) 1,461 11 8 repricing actions, business Noni
Slide 18: Q1 2022 Corporate Bank revenue performance
Q1 2022 Corporate Bank revenue performance In € m, unless stated otherwise X% X% Excluding specific items(1) Change vs. Q1 2021 Q1 2022 year-on-year drivers Corporate Treasury Services: — Revenues 14% higher driven by strong 14% 14% business momentum, increased loan Corporate Treasury Services 917 v
Slide 19: Investment Bank
Investment Bank In € m, unless stated otherwise Change in Change in % vs. % vs. Q1 2022 Q1 2021 Q4 2021 Q1 2022 year-on-year comments Revenues 3,322 7 74 — Higher revenues compared to a Revenues strong Q1 2021, driven by Revenues ex specific items(1) 3,330 7 75 outperformance in FIC, partially offse
Slide 20: Q1 2022 Investment Bank revenue performance
Q1 2022 Investment Bank revenue performance In € m, unless stated otherwise X% X% Excluding specific items(1) Change vs. Q1 2021 Q1 2022 year-on-year comments Fixed Income, Currency Sales & Trading: — Significantly higher revenues in Financing Fixed Income, Currency with strong performance across pr
Slide 21: Private Bank
Private Bank In € m, unless stated otherwise Change in Change in % vs. % vs. Q1 2022 Q1 2021 Q4 2021 Q1 2022 year-on-year comments Revenues 2,220 2 9 Revenues Revenues ex specific items(1) 2,213 3 9 — Revenues up 2% or up 3% excluding specific items Noninterest expenses 1,700 (6) (13) Costs — Adjust
Slide 22: Q1 2022 Private Bank revenue performance
Q1 2022 Private Bank revenue performance In € m, unless stated otherwise X% X% Excluding specific items(1) Change vs. Q1 2021 Q1 2022 year-on-year comments Private Bank Germany: — Business growth more than offset ongoing headwinds from deposit margin compression and lower benefits from TLTRO III Pri
Slide 23: Asset Management
Asset Management In € m, unless stated otherwise Change in Change in % vs. % vs. Q1 2022 Q1 2021 Q4 2021 Q1 2022 year-on-year comments Revenues 682 7 (14) — Revenues up 7% on higher Revenues management fees, driven by the Revenues ex specific items(1) 682 7 (14) increase in average assets under mana
Slide 24: Corporate & Other
Corporate & Other In € m Profit (loss) before tax Change Change vs. Q1 vs. Q4 Q1 2022 2021 2021 Profit (loss) before tax (428) (250) (108) Funding & liquidity (127) (91) (15) (178) Valuation & Timing differences(1) (183) (180) (197) Shareholder expenses (120) (8) 22 (320) Noncontrolling interest(2)
Slide 25: Capital Release Unit
Capital Release Unit In € m, unless stated otherwise Absolute Absolute change vs. change vs. Q1 2022 Q1 2021 Q4 2021 Q1 2022 year-on-year comments Revenues (5) (86) (10) — Lower revenues primarily reflecting the Revenues conclusion of the Prime Finance cost Revenues ex specific items(1) (3) (83) (7)
Slide 26: Outlook
Outlook Operating environment increasingly challenging in light of macroeconomic uncertainty Anticipated near-term risks well contained, supported by prudent risk management Ongoing focus on cost discipline, anticipating pressures ahead On track to deliver capital distribution of around € 700m in 20
Slide 27: Appendix
Appendix Deutsche Bank Q1 2022 results Investor Relations 27 April 2022
Slide 28: 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 Q1 2022 results 27 Investor Rela
Slide 29: Russia: credit risk overview
Russia: credit risk overview Loan exposure to Russia Additional contingent risk € 1.3bn (1) € 0.5 bn € 1.0bn on a net basis(2) Material operations and cash flows outside € 1.1 bn of Russia Booked offshore € 0.8 bn Largely mitigated via − Export Credit Agency coverage Large Russian € 0.4bn on
Slide 30: Balance sheet of Russia subsidiary OOO Deutsche Bank
Balance sheet of Russia subsidiary OOO “Deutsche Bank” Balance Sheet Capital Liquidity € 1.5bn € 0.2bn (1) ~€ 0.4bn excess liquidity in foreign currency placed Deposits with DB with Group AG for currency ~€ 0.4bn Assets management ~€ 0.9bn of Central Bank > 20% CET1 ratio cash (RUB) Small, sho
Slide 31: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Q1 2022 highlights Our key focus areas Recent achievements – Increase of cumulative volumes in sustainable financing and investment to € 177bn(1), with significant growth in all businesses Sustainable – As announced on IDD, DB plans to generate € 500bn in sustainable
Slide 32: Definition of certain financial measures
Definition of certain financial measures 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
Slide 33: Specific revenue items and adjusted costs – Q1 2022
Specific revenue items and adjusted costs – Q1 2022 In € m Q1 2022 Q1 2021 Q4 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 1,461 3,322 2,220 682 (353) 7,333 (5) 7,328 1,313 3,097 2,178 637 (73) 7,152 81 7,233 1,352 1,913 2,
Slide 34: Transformation-related effects
Transformation-related effects In € bn, unless stated otherwise 2019 – 2019 – 2022 Q1 2022 expected % of total cumulative cumulative 2019 – Q1 2022 impact impact Q1 2022 Nonoperating Goodwill impairment(3) - 1.0 1.0 100% costs(1) Restructuring & severance(4) (0.0) 1.8 2.0 94% Pre-tax items Real esta
Slide 35: Indicative divisional currency mix
Indicative divisional currency mix Q1 2022 Net revenues Noninterest expenses 6% 4% 10% 12% 10% 15% 13% 21% 19% 18% 5% 5% 0% 1% 23% 27% 20% 18% 14% 16% 1% 32% 0% 31% 13% 5% 16% 15% 0% 85% 84% 65% 67% 39% 58% 61% 51% 54% 54% 14% CB IB PB AM Group CB IB PB AM Group EUR GBP USD Other(1) Note: Classifica
Slide 36: Provision for credit losses and stage 3 loans
Provision for credit losses and stage 3 loans Provision for credit losses, in € m Stage 3 at amortized cost, in € bn Private Bank Investment Bank PB (ex-POCI) CRU (ex-POCI) Corporate Bank Capital Release Unit CB (ex-POCI) Purchased or Originated Credit Impaired (POCI) 292 IB (ex-POCI) 254 36 Group S
Slide 37: Litigation update
Litigation update In € bn, period end Litigation provisions(1) Comments 0.9 1.0 1.1 1.1 0.8 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 ― Provisions remained stable quarter on quarter ― Contingent liabilities remained stable quarter on quarter. Contingent liabilities include possible obligations where a
Slide 38: Q1 2022 loan and deposit development
Q1 2022 loan and deposit development In € bn Loan development Comments QoQ YoY — Normalized lending growth of € 2bn compared to Q4 456 476 481 1% 9% 440 445 2021 adjusted for FX effects 7 6 4 9 7 93 94 1% 32% — Loan growth in FIC offset by episodic Q4 2021 71 75 80 effects in the Investment Bank as
Slide 39: Deposit repricing in Q1 2022
Deposit repricing in Q1 2022 In € bn, unless otherwise stated Quarterly charging revenues, in € m Comments QoQ 139 +11% 126 — Further increase in quarterly revenues by 11% 108 20 +15% 94 17 driven by Corporate Bank and Private Bank 80 12 8 — Q1 annualized run-rate of € 557m, up € 149m 7 109 120 +10%
Slide 40: 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 0.2 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 0.0 > 3M 0.0 0.0 0.1 > 3M 0.1
Slide 41: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, in € bn, period end Leverage exposure Risk weighted assets 364 364 60 Operational Risk RWA 60 1,125 1,164 Market Risk RWA Trading assets 99 111 31 22 Credit valuation 6 24 adjustments Derivatives(1) 138 143 Lending 480 488 143 250 Credit Risk RWA 276
Slide 42: Level 3 assets
Level 3 assets In € bn, as of 31 March 2022 Assets (total: € 26bn) Comments Equity securities Mortgage backed securities 1 Other 3 0 Derivative 10 Assets — Level 3 is an indicator of valuation Debt securities 4 uncertainty and not of asset quality — The movements in Level 3 assets reflect that the p
Slide 43: Value at Risk / stressed Value at Risk (VaR / sVAR)
Value at Risk / stressed Value at Risk (VaR / sVAR) In € m, unless stated otherwise Historical simulation VaR, DB Group Trading book, 99%, 1 day Quarterly average 43 41 33 34 30 80 60 40 20 0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Historical simulation sVaR, DB Group Regulatory scope, 99%
Slide 44: Assets under management (AuM) – Private Bank
Assets under management (AuM) – Private Bank In € bn, unless stated otherwise IPB - Investment Products PB GY - Investment Products IPB - Deposits PB GY - Deposits AuM(1,2) – by business unit and product group +5% -1% 536 541 553 547 520 110 110 111 112 109 58 59 60 62 57 Investment 368 372 381 373
Slide 45: Assets under management (AuM) – Asset Management
Assets under management (AuM) – Asset Management In € bn, unless stated otherwise AuM development Quarterly / FY 28.3 / 28.3 27.8 27.6 / 27.8 27.7 mgmt fee margin, in bps 928 1 (1) 9 (33) 902 47 0 13 47 820 1 13 793 13 1 Q4 2020 Net FX Market Other Q1 2021 Net FX Market Other Q4 2021 Net FX Market O
Slide 46: Cautionary statements
Cautionary statements Forward-looking statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based