Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (November 2017)
23 slides from Deutsche Bank's debt investor presentation, Nov 2, 2017
Slide 1: Q3 2017 Fixed Income Investor Conference Call
Deutsche Bank Q3 2017 Fixed Income Investor Conference Call James von Moltke, Chief Financial Officer Dixit Joshi, Group Treasurer 2 November 2017
Slide 2: Agenda
Agenda 1 Q3 2017 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank Q3 2017 Fixed Income Investor Call 1 Investor Relations 2 November 2017
Slide 3: Highlights
Highlights Continued discipline on costs and credit support profitability, despite challenging revenue environment Ongoing progress in resolution of regulatory enforcement actions and litigation matters Strong capital and liquidity profile provides foundation to support clients 25% of the funded bal
Slide 4: Group financial highlights
Group financial highlights € bn, unless otherwise stated Q3 2017 vs. 9M 2017 vs. Q3 2017 Q3 2016 9M 2017 9M 2016 Q3 2016 9M 2016 Net revenues 6.8 7.5 (10)% 20.7 22.9 (10)% Provision for credit losses (0.2) (0.3) (44)% (0.4) (0.9) (56)% Noninterest expenses (5.7) (6.5) (14)% (17.7) (20.5) (13)% Profi
Slide 5: IBIT drivers
IBIT drivers Ex DVA, own credit spreads and Abbey Life gross up. € bn, unless otherwise stated YoY ∆ 9M 2017 € bn % YoY drivers — Revenues impacted by subdued client activity and the challenging CIB(1) 11.8 (1.4) (11)% environment PCB 7.9 (0.0) (0)% — Broadly flat despite a continued difficult inter
Slide 6: Outlook 2017
Outlook 2017 Activity in capital markets remained muted in October although underlying economic fundamentals are strong Continued focus on cost management while maintaining investment in controls and revenue growth initiatives Restructuring charge likely in Q4 principally driven by PCB reorganizatio
Slide 7: Agenda
Agenda 1 Q3 2017 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank Q3 2017 Fixed Income Investor Call 6 Investor Relations 2 November 2017
Slide 8: Common Equity Tier 1 Capital and Risk-weighted assets (RWA)
Common Equity Tier 1 Capital and Risk-weighted assets (RWA) CRD4, fully loaded unless otherwise stated 14.1% CET1 ratio, fully loaded 13.8% 14.9% CET1 ratio, phase-in 14.6% CET1 in € bn — Q3 2017 CET1 capital down by € (0.6)bn on a FX- 0.6 neutral basis including € (0.1)bn equity 50.1 compensation i
Slide 9: Leverage
Leverage CRD4, fully loaded unless otherwise stated 3.8%(1) Leverage ratio, fully loaded 3.8% 4.2% Leverage ratio, phase-in 4.2% — Leverage exposure down € 22bn, including FX effect of Leverage exposure, € bn € (23)bn. FX neutral increase is € 1bn 1,443 — Cash reduction of € 19bn reflecting growth i
Slide 10: Liquidity
Liquidity Liquidity Coverage Ratio(1) (LCR) 148% — Both LCR and liquidity reserves reduced over 144% 141% the quarter driven by various initiatives to 128% reduce cash balances 119% — LCR buffer decreased to € 73bn above the required 2018 100% level corresponding to an LCR of 141% — Reported liquidi
Slide 11: External funding profile
External funding profile As of 30 September 2017, € bn Financing Secured funding and Equity, — Total funding sources(5) decreased by € 27bn to € 1,006bn, Vehicles 0%, shorts, 7%, € 66bn(1) € 2bn mainly driven by 16%, € 165bn(4) 73% from — FX effect (stronger € vs. $) Unsecured most stable wholesale,
Slide 12: 2017 funding plan and contractual maturities
2017 funding plan and contractual maturities € bn Funding Plan 2017 Maturity profile Senior Plain Vanilla(1) Senior Structured(2) Covered Bonds(2) Capital instruments(1) Contractual maturities(3) 25 20 23 23 24 23 13 19 18 17 12 17 16 7 7 11 10 6 6 3 7 4 5 3 4 2 2 00 40 1 1 01 3 1 2 11 Plan 2017 Yea
Slide 13: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) 2019 Transitional TLAC availability and requirements(1) as of Q3 2017 € 122.7bn Plain-vanilla 54.1bn 57.1bn senior debt(2) € 85.2bn TLAC € 72.8bn G-SIB buffer adjust- 2.0% 0.2bn ments(3) Capital Conservation buffer 0.2bn 2.5% 6.0% 16.3bn 16.5bn AT1/T2(4) DB has T
Slide 14: Agenda
Agenda 1 Q3 2017 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank Q3 2017 Fixed Income Investor Call 13 Investor Relations 2 November 2017
Slide 15: AT1 and Trust Preferred Securities instruments outstanding
AT1 and Trust Preferred Securities instruments outstanding(1) Original Regulatory Capital Nominal Next call Subsequent Issuer ISIN Coupon issuance treatment(1) recognition(1) outstanding date call period date DB Contingent Capital Trust II AT1 / Tier 2 100% / 100% US25153X2080 6.550% USD 800mn 23-Ma
Slide 16: Regulatory capital requirements
Regulatory capital requirements SREP(1) vs CET1 Ratio Requirements G-SIB buffer Pillar 2 Requirement Countercyclical Buffer Pillar 1 Requirement Capital Conservation Buffer — Current SREP requirement of 9.52% Common Equity Tier 1 (CET1) on a phase- 14.58% in basis as of Jan 2017 13.83% 0.05% 11.80%
Slide 17: Funding sources to TLAC reconciliation
Funding sources to TLAC reconciliation As of 30 September 2017, € bn 202.0 Covered bonds 22.0 (22.0) Structured notes 26.4 (26.4) (10.8) (2.1) Plain-vanilla (18.2) +0.2 122.7 senior debt 70.0 Plain-vanilla 57.1 senior debt AT1/T2 17.7 0.2 TLAC adjustments 16.3 AT1/T2(5) Shareholders’ Equity 65.9 49.
Slide 18: Current Ratings
Current Ratings Counterparty obligations ICR:A- (e.g. Deposits / A3(cr)(1) A-(3) A(high) Derivatives / Swaps) RCR: N/A(2) preferred(4) A3 A- A- - Senior non- unsecured preferred Baa2 BBB- BBB+ A(low) short-term P-2 A-2 F2 R-1(low) Tier 2 Ba2 BB+ BBB - Legacy T1 B1 B+ BB - AT1 B1 B+ BB- - Rating me
Slide 19: Rating landscape – senior unsecured and short-term ratings
Rating landscape – senior unsecured and short-term ratings Moody‘s S&P Operating company / Preferred Senior(1) Holding company / Non-preferred Senior(2) Rating scale EU Peers Swiss Peers US Peers Short-term Long-term BAR BNP HSBC SOC CS UBS BoA Citi GS JPM MS P/A-1 Aa2/AA P/A-1 Aa3/AA- P/A-1 A1/A+ P
Slide 20: Balance sheet overview
Balance sheet overview As of 30 September 2017, € bn Assets (after netting) Liabilities & equity (after netting) Comments Included in 1,087 1,087 — Net balance sheet of € 1,087bn represents liquidity 43 Unsecured Wholesale(6) the funding required after recognizing (i) legal reserves: netting agreeme
Slide 21: Litigation update
Litigation update € bn Litigation reserves(1) Contingent liabilities(1) 2.5 2.3 1.8 1.6 30 Jun 2017 30 Sep 2017 30 Jun 2017 30 Sep 2017 ― Decrease due to settlement payments for major cases as well ― Includes possible obligations where an estimate can be made as releases for lower than expected sett
Slide 22: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, € m unless otherwise stated Average VaR Stressed VaR(1) € 2.2bn Sales & Trading revenues € 1.5bn 180 160 140 120 100 80 60 40 20 28 27 32 32 30 77 78 76 83 81 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 (1) Stressed Value-at-Risk is calculated on th
Slide 23: 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
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