Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2019)
24 slides from Deutsche Bank's investor day presentation, Dec 10, 2019
Slide 1: Investor Deep Dive
Investor Deep Dive James von Moltke Chief Financial Officer 10 December 2019 Deutsche Bank
Slide 2: Summary
Summary On track to reach short-term targets Affirming 8% return on tangible equity target for 2022 – working to fully overcome headwinds Cost reductions driven by infrastructure, technology, Capital Release Unit and German retail integration Disciplined capital management to maintain CET 1 ratio at
Slide 3: Stabilizing the Core Bank
Stabilizing the Core Bank Excluding specific items(1), in € bn Revenues(2) Adjusted profit before tax(3) 19.2 Capital 1.6 17.9 Release (70)% 0.5 Unit Core 2.1 2.2 Bank Core (1)% Bank 17.6 17.4 (1.0) Capital (1.7) Release Unit 9M 2018 9M 2019 9M 2018 9M 2019 Note: Throughout this presentation totals
Slide 4: All businesses support improving Core Bank profitability
All businesses support improving Core Bank profitability Post-tax return on tangible equity, in % 0% (1%) >9% 2% 2% 4% 1% 9M 2019 Core Corporate Investment Private Asset Corporate & 2022 Bank ex items(1) Bank Bank Bank Management Other Core Bank target (1) Items include specific revenue items, impai
Slide 5: Improving returns over time
Improving returns over time 2018 post-tax return on tangible equity(1) 2022 targeted post-tax return on tangible equity Private Bank 4% Private Bank 10-11% Corporate Bank 9% Corporate Bank 12-13% Investment Bank 2% Investment Bank 7-8% Asset Asset 19% >20% Management Management (1) 2018 post-tax ret
Slide 6: Targeted reallocation of resources
Targeted reallocation of resources Average allocated tangible shareholders equity Group Sales & Trading Asset 3% ~2ppt ~5% Management Corporate Bank 17% ~3ppt ~20% Private Bank 19% 37% ~6ppt ~25% Investment Bank 22% ~25% Investment Bank 39% ~1ppt ~6ppt ~45% ~23% Capital Release Capital Release 15% 2
Slide 7: Our path to improved Group profitability
(1) – (2) Our path to improved Group profitability Post-tax return on tangible equity, in % Additional measure: — Reduce € 1bn stranded costs in the Capital Release Unit (1)% 8% (1)-(2)% 2-3% 5% Additional measure: — Passing through negative interest rates 2-3% 0% 9M 2019 Revenue Cost Provision for
Slide 8: Mitigation measures to offset headwinds
Mitigation measures to offset headwinds In € bn, unless otherwise stated Current account 2022 Q3 2019 balances held above thresholds 259 Revenue plan (as of 8 July) ~25.0 10 >€ 2m Wealth 5 <€ 2m Management 6 >€ 2m Interest rate impact ~(0.9) 34 >€ 100k Change vs. July Private Bank More conservative
Slide 9: Updated revenue growth assumptions
Updated revenue growth assumptions Compound annual growth rate in revenues Strategy announcement Updated plan (July) Operating(1) Reported(2) 2018 – 2022 2018 – 2022 2% Core Bank 1% 3% Corporate Bank 3% 0% Investment Bank 2% 2% Private Bank 0% 2% Asset Management 1% (1) Excluding interest rate and b
Slide 10: Targeting a material reduction in adjusted costs
Targeting a material reduction in adjusted costs Adjusted costs ex transformation charges, in € bn 2019 target(1) 21.5 — Compensation and benefit cost reduction primarily driven by Compensation smaller workforce. Focus on ~(2.0) and benefits preserving revenue-generating capabilities IT costs ~(1.3)
Slide 11: Benefitting from investments in cost management tools
Benefitting from investments in cost management tools What? Benefits When? Identifies and tracks cost Tangible cost impact of Cost Catalyst reduction measures identified measures Initiated in Q2 2018 program Flagship program to drive Employee engagement cultural change Transparency on cost of Granul
Slide 12: Transformation costs to execute our strategy quickly
Transformation costs to execute our strategy quickly In € bn Change vs. 2019 – 2022 Strategy cumulative announcement expenses (July 2019) Deferred tax asset 2.8 Deferred Tax Asset valuation adjustment 3.4 - valuation adjustment Goodwill 1.0 0.3 impairment(1) Goodwill Software impairment 1.2 0.6 impa
Slide 13: Managing our capital position
Managing our capital position CET1 ratio outlook, in % Capital for future distribution from 2022 >13% 12.7% At least 12.5% 11.8% 11.6% Maximum Distributable Amount(1) 2019 Core Bank Capital Release Regulatory impact 2020 2021 capital accretion Unit net impact and beyond Note: 9M 2019 reported CET1 r
Slide 14: Well positioned to offset regulatory headwinds
Well positioned to offset regulatory headwinds Risk weighted assets, in € bn 2028/ Guidance 2020 2021 2022 2023 2024 … 2029 July 2019 25 5 - 25 - Not given … 10 December 10% – 15% 15 15 - - 25 2019 of RWA(1) … Principally EBA Basel 3 final rules Basel 3 final rules guideline (internal models) (outpu
Slide 15: Material improvement in leverage ratio planned
Material improvement in leverage ratio planned Leverage ratio (CRD 4, fully loaded), in % Phase 1: Run-down Phase 2: Capital generation ~€ 100bn planned reduction from Capital Release Unit, partially Retained earnings after distributions offset by select business growth ~5.0% 4.5% 0.5% 4.0% 0.5% 3.9
Slide 16: Near-term objectives
Near-term objectives 2019 2020 CET1 ratio >13% At least 12.5% Adjusted costs(1) € 21.5bn € 19.5bn Leverage ratio 4% 4.5% (1) Excluding transformation charges and impact from Prime Finance platform to be transferred to BNP Paribas James von Moltke 15 Investor Deep Dive, 10 December 2019
Slide 17: Financial targets
Financial targets 2022 Group return on tangible equity 8% Core Bank return on tangible equity >9% Adjusted costs € 17bn Cost income ratio 70% CET1 ratio At least 12.5% Leverage ratio ~5% James von Moltke 16 Investor Deep Dive, 10 December 2019
Slide 18: Appendix
Deutsche Bank Appendix
Slide 19: 9M 2019 specific revenue items and adjusted costs
9M 2019 specific revenue items and adjusted costs In € m 9M 2019 9M 2018 Core Core CB IB PB AM C&O Bank CRU Group CB IB PB AM C&O Bank CRU Group Revenues 3,920 5,443 6,311 1,662 95 17,431 385 17,816 3,857 6,087 6,617 1,673 (111) 18,122 1,619 19,741 (1) DVA - IB Other / CRU - (126) - - - (126) (19) (
Slide 20: 9M 2019 impact of transformation effects
9M 2019 impact of transformation effects In € m, unless otherwise stated Excluding Transformation transformation Reported effects effects Comment Revenues 17,816 - 17,816 Impairment of software and accelerated depreciation of real estate assets, legal fees related to Adjusted costs(1) (17,051) (537)
Slide 21: Overview of Corporate Bank / Private Bank refinements
Overview of Corporate Bank / Private Bank refinements In € m FY 2018 9M 2019 Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Net revenues 5,193 7,467 8,712 2,187 (120) 23,438 1,878 25,316 3,920 5,443 6,311 1,662 95 17,431 385 17,816 Corporate Bank / Private Bank 71 - (71) - -
Slide 22: Speaker biography
Speaker biography James von Moltke has been Chief Financial Officer and Member of the Management Board of Deutsche Bank AG since July 2017. Prior to joining Deutsche Bank, he was Treasurer of Citigroup. In this capacity he was responsible for capital and funding as well as liquidity and interest rat
Slide 23: CFO organisational structure
CFO organisational structure James von Moltke Chief CFO CFO Group Accounting Corporate Americas Finance Officer Bank CFO CFO Treasury Group Tax Investment Regions Bank Planning & Infra Performance Transfor- CFO DWS Mgt. mation CFO Investor CFO Infrastructure Relations Private Bank Regional / Legal G
Slide 24: 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