Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q4 2014 Earnings Presentation
48 slides from Deutsche Bank's earnings presentation, Jan 29, 2015
Slide 1: 4Q2014 results
Deutsche Bank Deutsche Bank 4Q2014 results 29 January 2015
Slide 2: Key Group financial highlights
Key Group financial highlights In EUR bn, unless otherwise stated Group Core Bank (1) 4Q2014 4Q2013 4Q2014 4Q2013 Income before income taxes 0.3 (1.8) 0.9 (0.5) Net income 0.4 (1.4) n.a. n.a. Diluted EPS (in EUR) 0.31 (1.26) n.a. n.a. Post-tax return on average active equity 2.6% (9.8)% 6.3% (7.2)%
Slide 3: Agenda
Agenda 1 Key current themes Capital / Leverage Costs Litigation 2 Group results 3 Segment results Deutsche Bank 4Q2014 results financial transparency. 3 Investor Relations 29 January 2015
Slide 4: Capital: Common Equity Tier 1 and RWA development
Capital: Common Equity Tier 1 and RWA development CRD4, fully loaded Common Equity Tier 1 capital RWA In EUR bn In EUR bn 11.5% 11.7% 4.4 0.4 401.5 0.1 2.1 46.0 0.4 46.1 (0.3) 4.0 394.0 (0.3) (9.8) (0.3) (8.3) 30 Sep(1) Net(2) Dividend Equity Intangible Other FX 31 Dec(1) 30 Sep FX effect Credit CVA
Slide 5: Leverage: Strong de-leveraging
Leverage: Strong de-leveraging CRD4, fully-loaded 4Q2014 (revised rules) CRD4 Exposure FX Movements (net of FX) x% Leverage ratio, fully loaded 3.2% 3.5% FX neutral EUR (104) bn 23 (13) (16) (55) (3) (16) 1,526 1,445 30 Sep FX NCOU Off B/S Deriv&SFT Trading Inv. Cash, Coll. 31 Dec 2014 Other 2014 No
Slide 6: Capital/Leverage: Disciplined resource management but headwinds remain
Capital/Leverage: Disciplined resource management but headwinds remain Events in the quarter Outlook — Successful issuance of USD 1.5 bn Additional Further headwinds expected from: Tier 1 capital and strong de-leveraging — EBA Regulatory Technical Standards, e.g. — Strict RWA discipline enforced to
Slide 7: Cost: Reported and adjusted
Cost: Reported and adjusted In EUR bn Non-Compensation and benefits 28.4 27.7 Compensation and benefits 6.9 7.2 7.6 7.3 7.2 6.6 6.5 6.7 16.1 15.2 3.1 3.7 4.3 4.9 3.1 3.7 4.1 4.2 3.5 3.2 2.9 3.3 3.0 3.2 3.0 12.3 12.5 2.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY FY 2013 2014 2013 2014 Adj. cost base (in EUR m) 6,03
Slide 8: Cost: Update on Operating Cost and OpEx Development
Cost: Update on Operating Cost and OpEx Development 4Q2014 vs. 4Q2013 OpEx program to date In EUR bn Key drivers: In EUR bn — Establishing new control function capabilities — Integrating platforms and enhancing end-to-end (E2E) 2014 Invested/ processes 2012/13 achieved — Strengthening our regulatory
Slide 9: Cost: FY2014 Cost Development marked by substantial regulatory induced cost increases
Cost: FY2014 Cost Development marked by substantial regulatory induced cost increases FY2014 vs. FY2013 Key Drivers Adjusted Cost Base, in EUR bn A CRD 4 related change in Temporary / compensation structure 1.9 ~ 0.5 one-off Specific reg. one-off charges 23.8 B 0.4 IT projects for implementing reg.
Slide 10: Litigation: Update
Litigation: Update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves In USD Demands Reserves 3.0 3.2 4.5 4.8 1.9 1.7 0.5 0.5 30 Sep 2014 31 Dec 2014 30 Sep 2014 31 Dec 2014 30 Sep 2014 31 Dec 2014 — Slight increase of net litigation — This includes possible ob
Slide 11: Agenda: Group results
Agenda 1 Key current themes 2 Group results 3 Segment results Deutsche Bank 4Q2014 results financial transparency. 11 Investor Relations 29 January 2015
Slide 12: Net revenues
Net revenues In EUR bn 9.4 31.9 32.0 8.2 8.4 7.9 7.9 7.8 7.7 6.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY FY 2013 2014 2013 2014 Contribution to Group revenues ex Consolidation & Adjustments by business segment(1): CB&S 47% 43% 37% 36% 47% 44% 40% 38% 41% 42% PBC 25% 29% 29% 35% 28% 30% 30% 31% 29% 30% GTB 11% 12
Slide 13: Provision for credit losses
Provision for credit losses In EUR m (1) Cost of Risk Core Core Bank Bank Non-Core Non-Core Operations Operations Unit Unit Cost of Risk Deutsche Bank Group(1) Cost of Risk Core Bank(1) 2,500 2,500 0.80% 0.80% 2,065 0.70% 2,000 0.60% 818 1,500 0.50% 1,134 1,000 259 0.40% 725 473 512 0.30% 354 319 36
Slide 14: Profitability
Profitability Income before income taxes Net income In EUR bn In EUR bn 1.5 3.1 0.7 1.7 2.4 1.7 1.7 0.8 0.9 1.1 0.0 0.3 0.3 0.3 0.1 0.2 0.4 (0.1) (1.8) (1.4) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2013 2014 2013 2014 (1) Post-tax return on equity Effective tax rate 12% 2% 0% (10)% 8% 2% (1)
Slide 15: 4Q2014 Core Bank adjusted IBIT
4Q2014 Core Bank adjusted IBIT In EUR bn 4Q2014 Group reported IBIT to EUR Core Bank adjusted IBIT: 1.1 bn 0.4 1.4 1.4 0.0 (0.1) 0.9 0.1 0.7 0.3 (1) 4Q2014 NCOU Core Bank Litigation Investing in CVA / DVA / Impairment of 4Q2014 4Q2013 (2) (3) Group reported IBIT our platform FVA Goodwill & Core Bank
Slide 16: Agenda: Segment results
Agenda 1 Key current themes 2 Group results 3 Segment results Deutsche Bank 4Q2014 results financial transparency. 16 Investor Relations 29 January 2015
Slide 17: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m In EUR m 4Q14 4Q13 3Q14 FY14 FY13 3,158 3,266 Revenues(1) 2,988 2,500 3,147 13,742 13,526 1,908 Prov. for credit (9) (70) (33) (103) (189) losses 1,492 Noninterest exp. (2,461) (2,303) (2,737) (10,348) (10,162) 758 885 I
Slide 18: Sales & Trading revenues
Sales & Trading revenues Revenues Key features Debt S&T, in EUR m Debt Sales & Trading 6,806 6,841 — FY 2014 Debt S&T revenues flat y-o-y despite difficult trading conditions 2,717 — #1 in overall Global Fixed Income market share by Greenwich 2,433 Associates for the 5th year in a row 1,823 1,826 —
Slide 19: Origination & Advisory
Origination & Advisory Revenues Key features In EUR m Advisory Overall Origination — 4Q2014 revenues up 6% y-o-y as higher DCM and Advisory revenues partially offset by lower ECM revenues 2,769 2,868 — #5 in global Corporate Finance in FY2014 with record market share globally and in EMEA 811 737 741
Slide 20: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m Charges from loan processing fees In EUR m 4Q14 4Q13 3Q14 FY14 FY13 520 483 507 Revenues 2,404 2,393 2,392 9,639 9,550 Prov. for credit (187) (243) (150) (622) (719) 32 losses 347 38 Noninterest exp. (2,162) (1,932) (1,886)
Slide 21: Private & Business Clients: Profit by business unit
Private & Business Clients: Profit by business unit Income before income taxes, in EUR m Cost-to-Achieve (1) Loan processing fees Private & Commercial Banking Postbank Advisory Banking International 48 32 63 14 19 11 18 14 17 9 59 1 5 6 51 17 18 11 41 70 21 211 25 53 155 204 204 177 86 188 119 204 2
Slide 22: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m Impairment of goodwill and other intangible assets In EUR m 4Q14 4Q13 3Q14 FY14 FY13 Revenues 1,045 976 1,039 4,146 4,069 380 367 Prov. for credit 338 (42) (86) (43) (156) (315) 318 324 losses 265 Noninterest exp. (738) (805
Slide 23: Deutsche Asset and Wealth Management
Deutsche Asset and Wealth Management Income before income taxes Key features Impairment/recovery of goodwill and other In EUR m intangible assets (3) In EUR m 4Q14 4Q13 3Q14 FY14 FY13 365 Revenues 1,242 1,185 1,267 4,710 4,735 283 288 83 Prov. for credit 0 (9) (1) 7 (23) (3) losses 219 214 204 Nonin
Slide 24: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 4Q14 4Q13 3Q14 FY14 FY13 Revenues 161 (157) 20 211 964 Prov. for credit (258) losses (131) (319) (42) (259) (818) (532) (580) Noninterest exp. (722) (799) (1,026) (2,804) (3,550) (672) (690) IBIT (690) (1,272) (1,049)
Slide 25: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 4Q14 4Q13 3Q14 FY14 FY13 IBIT (258) (1,131) (43) (859) (1,744) (43) (153) thereof (255) (205) (223) (258) (1) (336) V&T differences (29) (23) 4 (172) (249) FVA 18 (276) 36 (66) (276) Spreads for capital (84) (86) (
Slide 26: Appendix
Deutsche Bank Appendix
Slide 27: Appendix: Table of Contents
Appendix: Table of Contents IBIT detail 28 NCOU Details 33 Total assets (CRD4) 36 CRD4 – Leverage Exposure and risk weighted assets 37 Loan book 38 Impaired loans 40 Value-at-Risk 41 Funding 42 Number of shares 43 Invested assets 44 Group headcount 47 Deutsche Bank 4Q2014 results financial transpare
Slide 28: 4Q2014: IBIT detail
4Q2014: IBIT detail 4Q2014 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 516 (84) (42) (19) (11) 672 PBC 55 (211) (0) 0 (14) 281 GTB 265 (23) (18) 0 (5) 311 AWM 365 (31) (13) 0 80 328 C&A (258) (7) (30) 18 (3) (236) Core Bank 943 (356) (103) (1) 47 1,356 NCOU (690
Slide 29: 4Q2013: IBIT detail
4Q2013: IBIT detail 4Q2013 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 132 (117) (292) (175) 2 714 PBC 218 (252) 0 0 (2) 472 GTB 86 (61) (11) 0 (60) 217 AWM 200 (73) (56) 0 (14) 343 C&A (1,131) 8 (530) (276) (4) (329) Core Bank (496) (494) (889) (451) (78) 1,416
Slide 30: FY2014: IBIT detail
FY2014: IBIT detail 31 Dec 2014 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 3,266 (425) (586) (299) (46) 4,622 PBC 1,335 (511) (0) 0 (23) 1,869 GTB 1,198 (97) (113) 0 (12) 1,420 AWM 1,027 (234) (37) 0 73 1,225 C&A (859) (1) (38) (66) (27) (727) Core Bank 5,967 (
Slide 31: FY2013: IBIT detail
FY2013: IBIT detail 31 Dec 2013 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 3,158 (313) (1,142) (201) (26) 4,841 PBC 1,555 (552) (1) 0 (15) 2,123 GTB 1,107 (109) (11) 0 (63) 1,290 AWM 782 (318) (50) 0 (20) 1,170 C&A (1,744) 7 (536) (276) (20) (919) Core Bank 4,8
Slide 32: FY2014 Core Bank adjusted IBIT
F2014 Core Bank adjusted IBIT In EUR bn FY2014 Group reported IBIT to EUR Core Bank adjusted IBIT: 5.3 bn 0.4 8.4 8.5 1.4 (0.1) 0.8 2.9 6.0 3.1 (1) FY2014 NCOU Core Bank Litigation Investing in CVA / DVA / Impairment of FY2014 FY2013 (2) (3) Group reported IBIT our platform FVA Goodwill & Core Bank
Slide 33: NCOU IBIT components
NCOU IBIT components IBIT in EUR m, IFRS Assets and RWA data as of 31 Dec 2014 FY2012 FY2013 FY2014 4Q2014 Quarterly performance / Outlook — Performance driven by Credit / interest rates / Financial commodity / CRE exposure. 4Q includes allocated Portfolio (27) (981) (837) (260) costs of EUR ~110m (
Slide 34: NCOU: De-risking Milestones
NCOU: De-risking Milestones Since June 2012 Size of Non-Core Operations Unit — Regulatory capital generation of EUR 4.8 bn has IFRS assets, in EUR bn contributed a CET1 ratio benefit(1) of ~110 bps ~(72)% — IFRS Assets reduced by ~EUR 100bn since June 2012, ~140 39% reduction during 2014 64 4Q2014 U
Slide 35: NCOU: Asset Composition
NCOU: Asset Composition Total IFRS assets Total IFRS assets In EUR bn, as of 30 September 2014 In EUR bn, as of 31 December 2014 SCG SCG IAS 39 IAS 39 AWM reclassified assets AWM reclassified assets 4.4 1.2 7.5 7.4 CI 0.7 1.0 5.6 CI Other loans 7.1 2.3 Other loans 1.6 PBC: Other 2.6 5.0 Monolines 4.
Slide 36: CRD4 – Leverage Exposure
CRD4 – Leverage Exposure In EUR bn 1,526 Off-B/S 1,445 140 CDS notionals post offsetting 127 79 Positive market values 64 65 from derivatives post netting 72 64 64 Derivatives add-on 234 221 Securities financing transactions 190 152 Non-derivative 196 196 trading assets 250 Net loans 396 406 Cash an
Slide 37: CRD4 – Leverage Exposure and risk weighted assets
CRD4 – Leverage Exposure and risk weighted assets RWA(1) vs. Leverage Exposure In EUR bn, as of 31 Dec 2014 327 327 1,445 Non-derivative 196 Market Risk RWA 64 64 64 trading assets 69 CVA 21 358 Derivatives(2) 60 406 250 Lending 119 Credit Risk RWA 241 Reverse repo / securities borrowed 152 Cash and
Slide 38: Loan book
Loan book In EUR bn 400 393 401 411 387 382 386 393 43 19 18 NCOU 34 32 23 21 22 37 39 DeAWM 30 31 31 32 33 34 214 215 PBC 211 211 214 213 213 213 77 77 GTB 75 77 72 73 76 77 CB&S 41 40 39 40 42 48 53 62 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 30-Sep 31-Dec 2013 2014 Germany excl. Financial Instit
Slide 39: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR m, as of 31 Dec 2014 Composition of loan book and provisions by category Dec 31, 2014 4Q2014 Non-Core Provision for In EUR m Core Bank Operations Unit Total credit losses Further details PBC Mortgages 150,462 6,637 157,099 low loan to value
Slide 40: Impaired loans
Impaired loans(1) Period-end, in EUR bn Core Bank Non-Core Operations Unit Impaired loan ratio Deutsche Bank Group(3) Impaired loan ratio Core Bank(3) 12.0 10.3 3.1% 10.1 9.7 10.1 10.0 9.3 9.5 9.3 10.0 2.6% 3.7 3.4 3.3 3.3 2.9 8.0 3.2 3.5 2.8 2.1% 6.0 1.6% 4.0 1.1% 6.4 6.1 6.2 6.7 6.9 6.8 6.7 6.5 2.
Slide 41: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, in EUR m Average VaR Stressed VaR(1) EUR 1.6 bn Sales & Trading revenues EUR 1.9 bn 180 160 140 120 100 80 60 40 20 53 54 56 50 46 97 108 105 108 111 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 (1) Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses
Slide 42: Funding activities and profile
Funding activities and profile Funding cost and volume development Funding profile well diversified Issuance, in EUR bn As of 31 December 2014 200 Financing DB issuance spread, 4 week moving average, in bps Secured Funding Vehicles 180 and Shorts 1% 9% 76% from most stable 160 Unsecured funding sour
Slide 43: Number of shares
Number of shares In million Average used for EPS calculation End of period numbers 31 Dec 31 Dec 31 Dec FY2012 FY2013 FY2014 2012 2013 2014 (1) Common shares issued 974 1,037 1,236 974 1,069 1,379 Total shares in treasury (1) (9) (2) (2) 0 0 (0) Common shares outstanding 965 1,034 1,234 974 1,069 1,
Slide 44: Client view invested assets – Deutsche AWM
Client view invested assets – Deutsche AWM In EUR bn 31 Dec 2014 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31-Dec-14 vs 2013 2013 2013 2013 2014 2014 2014 30 Sep 2014 Retail 240 234 236 239 244 255 267 272 5 Institutional 446 433 416 404 403 406 432 449 17 Private Client 265 264 271 279 287 2
Slide 45: Regional invested assets – Deutsche AWM
Regional invested assets – Deutsche AWM In EUR bn 31 Dec 2014 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep 31-Dec-14 vs 2013 2013 2013 2013 2014 2014 2014 30 Sep 2014 Americas 300 290 273 270 265 262 282 297 14 Asia-Pacific 67 64 65 67 70 75 85 86 1 EMEA (ex Germany) 237 231 235 245 250 262 272
Slide 46: Invested assets – PBC
Invested assets – PBC In EUR bn 31 Dec 2014 31 Dec 2013 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 vs. 30 Sep 2014 Private & Business Clients 282 284 286 289 291 2 Investment & Insurance Products 146 149 153 154 156 1 Deposits excl. Sight Deposits 136 135 133 135 136 0 0 Memo: Sight Deposits 84
Slide 47: Group headcount
Group headcount Full-time equivalents, at period end 31 Dec 2014 31 Dec 2012 31 Dec 2013 30 Sep 2014 31 Dec 2014 vs. 31 Dec 2013 CB&S 8,500 8,357 8,387 8,207 (150) PBC 37,899 37,890 38,396 38,054 165 GTB 4,312 4,087 4,124 4,139 52 AWM 6,473 6,137 5,947 6,001 (136) NCOU 1,626 1,542 267 252 (1,291) In
Slide 48: Cautionary statements
Cautionary 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 on plans, estimates and pro