Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q4 2021 Earnings Presentation
51 slides from Deutsche Bank's earnings presentation, Jan 27, 2022
Slide 1: Q4/FY 2021 results
Deutsche Bank Q4/FY 2021 results 27 January 2022
Slide 2: 2021 was a pivotal year for transformation execution
2021 was a pivotal year for transformation execution Franchise Transformation Profitability Revenue and volume growth Successfully completed Prime Operating leverage and strong across all four core businesses Finance transition and risk management drive continued deleveraging, ahead improved profita
Slide 3: Group performance supports path to financial targets
Group performance supports path to financial targets FY 2019 FY 2020 FY 2021 Revenues € 23.2bn € 24.0bn € 25.4bn Adjusted costs ex transformation charges(1) € 21.5bn € 19.5bn € 19.3bn Provision for credit losses € 0.7bn € 1.8bn € 0.5bn Profit (loss) before tax € (2.6)bn € 1.0bn € 3.4bn Cost/income r
Slide 4: Transformation drives growth and profitability
Transformation drives growth and profitability Adjusted profit (loss) before tax(1), in € bn 122% Key achievements in 2021: Revenue growth supported by increasing business ✓ volumes ✓ Rating upgrades drive further client activity 6.1 Core Bank Lower loan loss provisions, supported by strong 4.2 ✓ ba
Slide 5: Strong revenue momentum in the Core Bank
Strong revenue momentum in the Core Bank Core Bank revenues ex specific items(1)(2), in € bn Group 5.5 5.9 23.2 24.0 25.3 5% +13% 11% 5.9 25.3 5.6 24.2 22.8 Corporate 1.4 5.2 1.2 5.2 Bank 5.2 Investment 1.9 9.7 1.9 9.3 Bank 7.0 Private 2.0 2.0 8.1 8.1 8.1 Bank Asset Management 0.6 0.8 2.3 2.2 2.7 Q4
Slide 6: Continued cost progress in investment year
Continued cost progress in investment year Noninterest expenses(1), in € bn CIR 108% 88% 85% Vast majority of estimated transformation-related effects -14% (14)% 97% 25.1 recognized, leading to further structural cost savings in 2022 2.3 1.2 21.2 21.5 0.8 0.9 0.8 1.3 Cost/income ratio substantially
Slide 7: Progress on strategic priorities in core businesses
Progress on strategic priorities in core businesses FY 2021(1) Corporate Bank Investment Bank Executing on growth strategies, with strong ✓ loan and fee income growth in H2 ✓ 8th consecutive quarter of O&A YoY revenue growth and market share gains in FIC(2) € 101bn of deposits under repricing #1 ban
Slide 8: Significant achievements in sustainability
Significant achievements in sustainability In € bn, cumulative since 2020 Sustainable Finance(1) volumes reported vs. target Key achievements in 2021 46 157 ≥200 Brought forward € 200bn target from YE 2025 Sustainable to YE 2023 and outperformed YE 2021 target Finance Target >200 Global market share
Slide 9: Disciplined execution has repositioned business for success
Disciplined execution has repositioned business for success On track to deliver 2022 targets and ambitions Executed vast majority of far-reaching transformation measures, ahead of measurement year Positioned for sustainable revenue growth and further structural cost reductions Continued improvement
Slide 10: Q4/FY 2021 Group financial highlights
Q4/FY 2021 Group financial highlights In € m, unless stated otherwise Change in % Change in % Q4 2021 vs. Q4 2020 FY 2021 vs. FY 2020 Revenues 5,900 8 25,410 6 Revenues Revenues ex specific items(1) 5,888 7 25,337 6 Noninterest expenses 5,564 11 21,505 1 Costs Adjusted costs ex transformation charge
Slide 11: Q4/FY 2021 Core Bank financial highlights
Q4/FY 2021 Core Bank financial highlights In € bn, unless stated otherwise Change vs. Change vs. Q4 2021 Q4 2020 FY 2021 FY 2020 Revenues 5.9 7% 25.4 5% Revenues ex specific items(1) 5.9 5% 25.3 5% Noninterest expenses 5.2 12% 20.1 4% Adjusted costs ex transformation charges(2) 4.7 8% 18.4 2% Profit
Slide 12: Interest income sensitivity
Interest income sensitivity In € m, unless stated otherwise Evolution of interest sensitive revenues at current forward rates(1) Comments Year on year impact Previous years’ cumulative impact — Interest rates headwinds of ~€ 750m in 2021 successfully offset by underlying ~900 business growth and inc
Slide 13: Adjusted costs – Q4 2021
Adjusted costs – Q4 2021 In € m, unless stated otherwise Prime Finance(1) Q4 2021 year on year comments Q4 2020 ex transformation 4,608 81 4,689 charges — Adjusted costs increased 6% year on FX impact year, or 3% excluding FX effect: Compensation 46 212 and benefits(2) — Performance related increase
Slide 14: Adjusted costs – FY 2021
Adjusted costs – FY 2021 In € m, unless stated otherwise Prime Finance(1) FY 2021 year on year comments 2020 ex transformation 19,520 360 19,880 charges Compensation (59) and benefits(2) — Lower compensation and benefits reflect reductions in the workforce, offsetting Information Technology 27 perfo
Slide 15: Transformation-related effects
Transformation-related effects In € bn, unless stated otherwise 2019 – 2019 – 2022 Q4 2021 expected % of total cumulative cumulative 2019 – Q4 2021 impact impact Q4 2021 Nonoperating Goodwill impairment(3) - 1.0 1.0 100% costs(1) Restructuring & severance(4) 0.3 1.9 2.0 93% Pre-tax items Real estate
Slide 16: Provision for credit losses
Provision for credit losses In € bn, unless stated otherwise Annual development Comments Capital Release Unit Investment Bank Corporate Bank Private Bank — FY provisions on a moderate level at 1.8 12bps, in line with guidance 0.0 0.7 — Low level of provisions supported by the quality of our loan boo
Slide 17: Capital ratios
Capital ratios Movements in basis points (bps), period end CET1 ratio Comments 17 13.2% — CET1 ratio up 22bps compared to Q3 2021: 13.0% 5 — 5bps from RWA, reflecting growth in Core Bank credit (0) risk, more than offset by lower market and operational risk RWA reductions — 17bps from capital-relate
Slide 18: Segment results
Segment results Deutsche Bank Q4/FY 2021 results Investor Relations 27 January 2022
Slide 19: Corporate Bank
Corporate Bank In € m, unless stated otherwise Change in Change in % vs. % vs. Q4 2021 Q4 2020 FY 2021 FY 2020 FY 2021 year on year comments Revenues 1,352 10 5,150 0 Revenues — Revenues flat with Revenues ex specific items(1) 1,352 9 5,150 (0) accelerating momentum in Q4, as deposit repricing and N
Slide 20: Q4 2021 Corporate Bank revenue performance
Q4 2021 Corporate Bank revenue performance In € m, unless stated otherwise X% X% Excluding specific items(1) Change vs. Q4 2020 Q4 2021 year on year drivers Corporate Treasury Services 828 12% 11% — Corporate Treasury Services 12% higher driven by deposit repricing, business initiatives including lo
Slide 21: Investment Bank
Investment Bank In € m, unless stated otherwise Change in Change in % vs. % vs. Q4 2021 Q4 2020 FY 2021 FY 2020 FY 2021 year on year comments — Slightly higher revenues Revenues 1,913 1 9,631 4 Revenues relative to strong 2020, driven Revenues ex specific items(1) 1,905 (1) 9,659 4 by a significant
Slide 22: Q4 2021 Investment Bank revenue performance
Q4 2021 Investment Bank revenue performance In € m, unless stated otherwise X% X% Excluding specific items(1) Change vs. Q4 2020 Q4 2021 year on year drivers Fixed Income, Currency Sales & Trading: Fixed Income, Currency — Significantly higher revenues in Financing Sales & Trading 1,198 (14)% (14)%
Slide 23: Private Bank
Private Bank In € m, unless stated otherwise Change in Change in % vs. % vs. Q4 2021 Q4 2020 FY 2021 FY 2020 FY 2021 year on year comments Revenues 2,040 4 8,234 1 — Reported revenues up 1%, or Revenues up 2% ex specific items and Revenues ex specific items(1) 2,037 3 8,132 0 impact of the BGH rulin
Slide 24: Q4 2021 Private Bank revenue performance
Q4 2021 Private Bank revenue performance In € m, unless stated otherwise X% X% Excluding specific items(1) Change vs. Q4 2020 Q4 2021 year on year comments Private Bank Germany: — Revenues down 2%, if adjusted for the negative prior year impact from the sale of Postbank Systems and a net positive im
Slide 25: Asset Management
Asset Management In € m, unless stated otherwise Change in Change in % vs. % vs. Q4 2021 Q4 2020 FY 2021 FY 2020 FY 2021 year on year comments Revenues 789 32 2,708 21 — Revenues up 21% with Revenues strong contributions from all Revenues ex specific items(1) 789 32 2,708 21 revenue streams — Adjust
Slide 26: Corporate & Other
Corporate & Other In € m Profit (loss) before tax Change Change vs. Q4 vs. FY Q4 2021 2020 FY 2021 2020 Profit (loss) before tax (320) 12 (1,143) (213) Funding & liquidity (112) (15) (262) (12) (332) (320) Valuation & timing 13 69 157 243 differences(1) (605) Shareholder expenses (142) (45) (461) (5
Slide 27: Capital Release Unit
Capital Release Unit In € m, unless stated otherwise Absolute Absolute change vs. change vs. Q4 2021 Q4 2020 FY 2021 FY 2020 FY 2021 year on year comments Revenues 5 70 26 251 Revenues Revenues ex specific items(1) 4 63 28 245 — Significantly improved revenues principally driven by lower derisking i
Slide 28: Outlook
Outlook Business momentum reinforces confidence in 2022 revenue performance Substantially all transformation-related effects are now behind us Management actions to date to deliver significant cost benefits in key measurement year Provisions for credit losses expected to reach more normalized level
Slide 29: Appendix
Appendix Deutsche Bank Q4/FY 2021 results Investor Relations 27 January 2022
Slide 30: 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 Q4/FY 2021 results 29 Investor R
Slide 31: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Q4 2021 highlights Our key focus areas Recent achievements – Continued progress in sustainable financing, with cumulative volumes of € 157bn(1) – Launched new exclusive MSCI World ESG Leaders Select Top 100 Index strategy Sustainable – ESG advisory concept rolled out
Slide 32: Definition of adjustments
Definition of adjustments 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 specific divisi
Slide 33: Core Bank adjusted post-tax RoTE
Core Bank adjusted post-tax RoTE In € m, unless stated otherwise Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Profit (loss) 616 486 617 489 2,208 1,332 1,013 577 569 3,491 Profit (loss) attributable to noncontrolling interests 23 32 31 42 129 36 33 23 52 144 Profit
Slide 34: Specific revenue items and adjusted costs – Q4 2021
Specific revenue items and adjusted costs – Q4 2021 In € m Q4 2021 Q4 2020 Q3 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 1,352 1,913 2,040 789 (199) 5,895 5 5,900 1,226 1,892 1,963 599 (161) 5,518 (65) 5,453 1,255 2,227 1
Slide 35: Specific revenue items and adjusted costs – FY 2021
Specific revenue items and adjusted costs – FY 2021 In € m FY 2021 FY 2020 Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Revenues 5,150 9,631 8,234 2,708 (339) 25,384 26 25,410 5,146 9,286 8,126 2,229 (534) 24,253 (225) 24,028 DVA - IB Other / CRU - (28) - - - (28) (2) (30)
Slide 36: Specific revenue items and adjusted costs – FY 2019
Specific revenue items and adjusted costs – FY 2019 In € m FY 2019 Core CB IB PB AM C&O CRU Group Bank Revenues 5,247 7,023 8,239 2,332 107 22,948 217 23,165 DVA - IB Other / CRU - (140) - - - (140) (35) (175) Specific revenue items Sale of PB systems to TCS - - - - - - - - Change in valuation of an
Slide 37: Adjusted profit (loss) before tax (PBT) – Q4 2021
Adjusted profit (loss) before tax (PBT) – Q4 2021 In € m Q4 2021 Q4 2020 Specific Transfor- Specific Transfor- Reported Goodwill Restructuring Reported Goodwill Restructuring revenue mation Adjusted PBT revenue mation Adjusted PBT PBT impairments & severance PBT impairments & severance items charges
Slide 38: Adjusted profit (loss) before tax (PBT) – FY 2021
Adjusted profit (loss) before tax (PBT) – FY 2021 In € m FY 2021 FY 2020 Specific Transfor- Specific Transfor- Reported Goodwill Restructuring Reported Goodwill Restructuring revenue mation Adjusted PBT revenue mation Adjusted PBT PBT impairments & severance PBT impairments & severance items charges
Slide 39: Private Bank – Impact of BGH ruling
Private Bank – Impact of BGH ruling(1) In € m, unless stated otherwise Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2020 FY 2021 Revenues Net revenues 1,963 2,178 2,018 1,999 2,040 8,126 8,234 BGH ruling - impact of forgone revenues (net) - - 94 94 (34) - 154 of which: Private Bank Germany - BGH rulin
Slide 40: Transformation-related effects
Transformation-related effects In € bn, unless stated otherwise 2019 – 2019 – 2022 Q4 2021 cumulative % of total cumulative expected 2019 – Q4 2021 expenses expenses Q4 2021 Deferred tax Deferred Tax Asset asset valuation 2.8 - 2.8 2.8 100% valuation adjustment adjustment Nonoperating Goodwill impai
Slide 41: Deposit repricing
Deposit repricing In € bn, unless stated otherwise Quarterly charging Q4 2021 deposits by revenues, in € m Charging agreements(1) total client holdings(2) Comments 126 138 147 — FY 2021 charging revenues of 108 17 122 125 ~€ 400m and Q4 2021 run rate 38 12 28 56 >€ 100k annualizing to ~€ 500m 85 — C
Slide 42: Indicative divisional currency mix
Indicative divisional currency mix Q4 2021 Net revenues Noninterest expenses 7% 5% 3% 9% 9% 8% 19% 17% 14% 15% 5% 4% 0% 1% 24% 20% 23% 14% 16% 18% 44% 11% 0% 1% 39% 19% 6% 18% 0% 86% 87% 67% 64% 67% 60% 33% 55% 49% 49% 13% CB IB PB AM Group CB IB PB AM Group EUR GBP USD Other(1) Note: Classification
Slide 43: 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 0.3 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 0.1 > 3M 0.0 0.1 0.1 > 3M 0
Slide 44: Litigation update
Litigation update In € bn, period end Litigation provisions(1) Comments 0.9 1.0 1.1 0.8 0.8 ― Provisions increased modestly by € 0.1bn quarter Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 on quarter ― Contingent liabilities decreased by € 0.2bn quarter on quarter. Contingent liabilities include possible
Slide 45: 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) 515 IB (ex-POCI) Group Stage 3
Slide 46: Q4 2021 loan and deposit development
Q4 2021 loan and deposit development In € bn Loan development Comments Change vs. FX adjusted Q3 2021 change — Strong growth in Private Bank coming from mortgage and collateralised lending Private Bank 254 +5 +4 — Corporate Bank seeing solid lending demand in Corporate Treasury Services Corporate Ba
Slide 47: Level 3 assets
Level 3 assets In € bn, as of 31 December 2021 Assets (total: € 25bn) Comments Equity securities Mortgage backed securities Other 1 2 0 Derivative — Level 3 is an indicator of valuation Debt 9 Assets securities 5 uncertainty and not of asset quality — The movements in Level 3 assets reflect that the
Slide 48: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, fully loaded, in € bn, period end Leverage exposure Risk weighted assets 352 352 62 Operational Risk RWA 62 1,105 1,108 Market Risk RWA Trading assets 119 99 29 20 Credit valuation 6 24 adjustments Derivatives(1) 134 138 Lending 444 463 135 250 Lendin
Slide 49: Trading book Value at Risk (VaR)
Trading book Value at Risk (VaR) DB Group, 99%, 1 day, in €m, unless stated otherwise Historical Simulation VaR Quarterly average 46 43 41 33 34 80 60 40 20 0 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Deutsche Bank Q4/FY 2021 results 48 Investor Relations 27 January 2022
Slide 50: 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 +12% +2% 536 541 553 520 471 477 493 442 110 110 111 108 109 106 107 58 59 60 106 57 57 57
Slide 51: Cautionary statements
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2021 and SEC Form 20-F are scheduled to be published on 11 March 2022. This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact