Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2019)
17 slides from Deutsche Bank's investor day presentation, Dec 10, 2019
Slide 1: Investor Deep Dive
Investor Deep Dive Stuart Lewis Chief Risk Officer 10 December 2019 Deutsche Bank
Slide 2: Summary
Summary Significantly reduced and transformed balance sheet Strengthened risk control environment and enhanced capabilities through investments Maintaining conservative risk profile with high underwriting standards and controlled risk appetite Stuart Lewis 1 Investor Deep Dive, 10 December 2019
Slide 3: Strengthened key balance sheet and risk metrics
Strengthened key balance sheet and risk metrics 2007 2015 9M 2019 Common Equity Tier 1 8.6%(2) 11.1% 13.4% capital ratio(1) Provision for credit losses 31bps 22bps 15bps as % of loans Average Value-at-Risk(3) € 86m € 43m € 30m Most Stable Funding(4) 30% 74% 80% Liquidity Reserves € 65bn € 215bn € 24
Slide 4: Further strengthening our control environment
Further strengthening our control environment In € bn, unless otherwise stated Adjusted costs Operational risk losses(2) Non-Financial Risk(1) Non-Legal Financial Risk(1) Legal 1.0 5.8 0.2 0.6 0.6 0.2 0.4 0.4 3.4 2013 2019 3.1 0.2 Outlook 0.2 Full time employees(1), in 000s 5.6 2.4 5.5 0.2 3.7 3.1 3
Slide 5: Increasing technology investments
Increasing technology investments ~€ 900m investments in Technology across Risk, Anti Financial Crime and Compliance in 2017 – 2019 Aggregate investments in Risk, Anti Financial Crime & Compliance Technology to increase further in 2020 Anti-Financial Crime Compliance Credit Risk Market Risk Daily na
Slide 6: Significantly reduced and transformed balance sheet
Significantly reduced and transformed balance sheet After netting(1), in € bn 1,495 65 Around a quarter of net balance sheet held in Liquidity Reserves 1,019 995 Liquidity Trading assets significantly reduced to less 243 Reserves than 30% of net balance sheet 294 Trading and related assets(2) Deriva
Slide 7: Managing Credit Risk: high credit quality
Managing Credit Risk: high credit quality Net Credit Loss Provisions, in € bn Net Credit Loss Provision peer(2) comparison, in bps Net CLP, in bps(1) 2015 – 2019 average mid-teens 44 28 22 33 13 13 15(1) or higher <30 1.4 350 19 300 1.1 Peers Deutsche Bank 1.0 250 200 150 0.5 0.5 0.5 100 50 Peers De
Slide 8: A low risk, well diversified loan portfolio
A low risk, well diversified loan portfolio IFRS loans at amortized cost, 30 September 2019 ~90% of our Loan Book is Investment Grade Largest three portfolios Private Bank Investment Bank Corporate Bank Capital Release Unit Other(1) German Mortgages — Average loan to value: 75% Capital Release Unit
Slide 9: Deep Dive: Investment banking portfolios
Deep Dive: Investment banking portfolios Asset-Backed Securities Commercial Real Estate Leveraged Debt Capital Markets 6% of Loans(1) / 2% of Group RWA 5% of Loans(1) / 2% of Group RWA 1% of Loans(1) / 3% of Group RWA (Loan growth YoY ex FX: ~€ 5.5bn) (Loan growth YoY ex FX: ~€ 2.0bn) (Loan growth Y
Slide 10: Level 3 assets: A small, but natural part of our business
Level 3 assets: A small, but natural part of our business In € bn Core Bank Capital Release Unit 4.3% of total assets 88 Equity securities Mortgage backed securities Other 1 0 2 10 Derivative Debt Assets securities 5 1.6% of total assets 25 7 18 7 Loans 2007 30 Sep 2019 Stuart Lewis 9 Investor Deep
Slide 11: Comprehensive stress testing to proactively manage downside risk
Comprehensive stress testing to proactively manage downside risk Comprehensive stress testing framework in place Key known and emerging risks Mitigating actions Group wide stress test Reviewed cyclical portfolios with (US – China) Trade War Frequency: Quarterly / Ad-Hoc selective de-risking Severe M
Slide 12: Key take-aways
Key take-aways Balance sheet and risk profile to remain robust through transformation period Improvements in controls and investments in non-financial risk function to reduce risk profile Maintain conservative underwriting standards and controlled risk appetite to support Group returns Stuart Lewis
Slide 13: Appendix
Deutsche Bank Appendix
Slide 14: Managing Market Risk: Trading book Value at Risk
Managing Market Risk: Trading book Value at Risk DB Group, 99%, 1 day, in € m, unless otherwise stated 200 average of quarter max of quarter min of quarter 150 yearly average 2019 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Trading VaR during 2019 ranged between € 22m a
Slide 15: Economic risk from derivatives exposure significantly smaller than headline number
Economic risk from derivatives exposure significantly smaller than headline number EU accounting standards inflate disclosed derivative assets, Commentary Q3 2019, in € bn — Unlike US GAAP, IFRS accounting does not allow for all Master Netting Agreements(2) to reduce derivative assets shown on the b
Slide 16: Speaker biography
Speaker biography Stuart Wilson Lewis became a member of our Management Board on June 1, 2012 and is our Chief Risk Officer. On July 7, 2019 he assumed responsibility for Compliance, Anti-Financial Crime and the Business Selection and Conflicts Office. He joined Deutsche Bank in 1996. Prior to assum
Slide 17: Cautionary statements
Cautionary statements Non-IFRS Financial Measures This document contains non-IFRS financial measures. For a reconciliation to directly comparable figures under IFRS, to the extent not provided herein, please refer to the Financial Data Supplement which can be downloaded from www.db.com/ir. Forward-L