Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Deutsche Bank Aktiengesellschaft — Q4 2017 Earnings Presentation
37 slides from Deutsche Bank's earnings presentation, Feb 5, 2018
Slide 1: Cover page
Cover page Exhibit 99.2
Slide 2: Highlights
Highlights Improved profitability despite revenue headwinds Reduced costs in 2017, but more work to do Maintained high levels of liquidity and CET1 capital, supported by capital raise Highlights Progress in executing on business strategies and technology initiatives Success in resolving legacy litig
Slide 3: Group financial summary
Note: Figures may not sum due to rounding differences Post-tax return on average tangible shareholders' equity Figures as of period end Group financial summary € bn, unless stated otherwise Group financial summary Q4 2017 Q4 2016 Q4 2017 vs. Q4 2016 FY 2017 FY 2016 FY 2017 vs. FY 2016 Profit & Loss
Slide 4: Revenue drivers
Revenue drivers Revenues excluding noted items in € bn, unless stated otherwise FY 2017 YoY Δ YoY drivers CIB(1) 14.6 (2.2) (13)% Higher funding costs, low volumes and volatility in trading and GTB perimeter adjustments PCB(2) 10.3 0.0 0% Revenues flat. Impact of low interest rates largely mitigated
Slide 5: Noninterest expenses
Q4 2016 Q4 2016 ex FX(3) (19)% / € (1.7) Adjusted costs(2) Restructuring and severance Q3 2017 (1) Impairments / Policyholder benefits and claims Q4 2017 0.0 0.1 0.1 0.0 0.1 0.4 (14)% € (4.1) FY 2017 FY 2016 ex FX(3) FY 2016 0.0 0.1 Noninterest expenses € bn, unless stated otherwise Noninterest expe
Slide 6: Adjusted costs
Adjusted costs(1) € m, unless stated otherwise Note: Figures may not sum due to rounding differences Total noninterest expense excluding restructuring and severance, litigation, impairment of goodwill and other intangibles and policyholder benefits and claims To exclude the FX effects the prior year
Slide 7: Common Equity Tier 1 capital and risk-weighted assets
Common Equity Tier 1 capital and risk-weighted assets CRD4, fully loaded, unless stated otherwise CET1, € bn CET1 ratio, phase-in CET1 ratio, fully loaded 14.8% 14.0% 13.8% 14.6% RWA, € bn Common Equity Tier 1 Capital and Risk-weighted assets Note:Figures may not sum due to rounding differences Incl
Slide 8: Leverage
Leverage CRD4, fully loaded, unless stated otherwise Leverage exposure, € bn Cash(1) Leverage ratio, phase-in Leverage ratio, fully loaded 4.1% 3.8% 3.8% 4.2% Leverage Leverage exposure down € 25bn incl. € (11)bn FX benefit. The FX neutral exposure decrease is € 15bn Volume growth in loans € 7bn, of
Slide 9: Segment results
Segment results Segment results
Slide 10: Corporate & Investment Bank (CIB)
Corporate & Investment Bank (CIB) € m, unless stated otherwise Income before income taxes Financial overview Q4 2017 Q4 2016 YoY FY 2017 FY 2016 YoY Net revenues 2,732 3,270 (16)% 14,226 16,763 (15)% Prov. for credit losses (7) (303) (98)% (213) (816) (74)% Noninterest expenses (3,457) (3,398) 2% (1
Slide 11: CIB business unit revenues and YoY drivers
Global Transaction Banking CIB business unit revenues and YoY drivers € m, unless stated otherwise Revenues Q4 2017 YoY revenue drivers Origination & Advisory 2016 2017 2016 2017 CIB business unit revenues and YoY drivers Note: Figures may not sum due to rounding differences Cash management revenues
Slide 12: CIB business unit revenues and YoY drivers (cont'd)
Revenues Q4 2017 YoY revenue drivers Financing FIC S&T Equity S&T 2016 2017 2016 2017 CIB business unit revenues and YoY drivers (cont’d) Note: Figures may not sum due to rounding differences CIB business unit revenues and YoY drivers (cont’d) € m, unless stated otherwise Lower revenues from asset b
Slide 13: Private & Commercial Bank (PCB)
Private & Commercial Bank (PCB) Income before income taxes Financial overview Q4 2017 Q4 2016 YoY FY 2017 FY 2016 YoY Net revenues 2,313 3,205 (28)% 10,178 11,090 (8)% Prov. for credit losses (123) (158) (22)% (313) (439) (29)% Noninterest expenses (2,861) (2,347) 22% (9,495) (9,212) 3% Adjusted cos
Slide 14: PCB business unit revenues and YoY drivers
PCB business unit revenues and YoY drivers Revenues(1) Q4 2017 YoY revenue drivers Private & Commercial Clients (PCC) Postbank Wealth Management 2016 2017 2016 2017 PCB business unit revenues and YoY drivers € m, unless stated otherwise Note: Figures may not sum due to rounding differences (1) Exclu
Slide 15: Deutsche Asset Management
Deutsche Asset Management Income before income taxes Financial overview Q4 2017 Q4 2016 YoY FY 2017 FY 2016 YoY Net revenues 621 799 (22)% 2,532 3,015 (16)% Noninterest expenses (506) (1,551) (67)% (1,806) (3,220) (44)% Adjusted costs (489) (441) 11% (1,780) (1,757) 1% IBIT 115 (753) n.m. 725 (206)
Slide 16: Consolidation & Adjustments (C&A)
Consolidation & Adjustments (C&A) Income before income taxes Financial overview Litigation (5) 72 - (49) - (4) (34) (74) 18 (112) Q4 2017 Q4 2016 YoY FY 2017 FY 2016 YoY IBIT (67) (425) (84)% (695) (541) 28% of which : V&T differences(1) 51 (342) n.m. 49 (253) n.m. CTA realisation(2) / loss on sale
Slide 17: Outlook 2018
Outlook 2018 Adjusted costs expected to be € ~23bn, reflecting IBIT positive impact of delayed business sales Credit costs and litigation expense likely to increase in 2018, but remain well below peak levels Restructuring costs in 2018 expected to be similar to 2017 Highlights Prospects of interest
Slide 18: Appendix
Appendix Deutsche Bank Q4 & FY 2017 results 8 Investor Relations 2 February 2018
Slide 19: Appendix: Table of contents
Appendix: Table of contents P&L details CRD4 – Leverage exposure and risk-weighted assets Loan book Impaired loans Value-at-Risk Assets under Management Headcount Appendix: Table of contents IFRS 9 impact Preliminary Additional Tier 1 payment capacity
Slide 20: Profit & Loss
Profit & Loss € m Q4 2016 Q4 2016 ex FX(1) Q4 2017 Q4 2017 vs. Q4 2016 Q4 2017 vs. Q4 2016 ex FX(1) FY 2016 FY 2016 ex FX(1) FY 2017 FY 2017 vs. FY 2016 FY 2017 vs. FY 2016 ex FX(1) Net revenues 7,068 6,861 5,710 (19.2)% (16.8)% 30,014 29,760 26,447 (11.9)% (11.1)% Provision for credit losses (492)
Slide 21: Reported and adjusted costs
Reported and adjusted costs € m, unless stated otherwise Reported and adjusted costs Noninterest expenses excl. compensation and benefits (in € bn) Adjusted costs 6,668 6,032 5,852 6,181 6,336 5,641 5,513 6,340 24,734 23,829 excludes: Impairment of goodwill and other intangible assets - 285 (49) 1,0
Slide 22: Litigation update
Litigation update € bn, unless stated otherwise Litigation update Note:Figures may not sum due to rounding differences and reflect current status of individual matters and are subject to potential further developments including changes prior to the publication of the Annual Report Includes civil lit
Slide 23: Provision for credit losses
Provision for credit losses € m 2017 2016 133 129 304 79 525 259 Cost of risk DB Group(1) 0.39% 0.39% 0.44% 0.56% 0.12% 0.13% 0.14% 0.17% 0.16% 0.17% 0.21% 0.10% 0.12% 0.08% Cost of risk CIB(1) Cost of risk PCB(1) Provision for credit losses Note:Figures may not sum due to rounding differences. Prov
Slide 24: Net interest income sensitivity
Net interest income sensitivity Hypothetical +100bps parallel shift impact by business line and major currency, € bn EUR USD PCB CIB Group 0.8 0.8 1.6 PCB CIB Group 1.0 0.9 1.9 First year Second year Total (EUR + USD) Net Interest Income sensitivity Note:Figures may not sum due to rounding differenc
Slide 25: IBIT detail – Q4
Q4 2017 IBIT DVA and own credit spreads Restructuring and severance Litigation Impairments(1) CIB (733) (19) (1) (56) - PCB (659) - (429) 3 (12) Deutsche AM 115 - (10) (4) (3) C&A (67) 54 - (74) - NCOU - - - - - Group (1,345) 35 (440) (131) (15) Q4 2016 IBIT DVA and own credit spreads Restructuring
Slide 26: IBIT detail - FY
IBIT detail - FY FY 2017 IBIT DVA and own credit spreads Restructuring and severance Litigation Impairments(1) CIB 877 (348) (152) (44) (6) PCB 382 - (399) (53) (12) Deutsche AM 725 - (18) (5) (3) C&A (695) (164) (2) (112) - NCOU - - - - - Group 1,289 (513) (570) (213) (21) FY 2016 IBIT DVA and own
Slide 27: Reconciliation from Deutsche AM reported segment to adjusted DWS standalone
Reconciliation from Deutsche AM reported segment to adjusted DWS standalone FY 2017 and FY 2016 Deutsche AM Reported 2016 Perimeter adjustments DWS standalone reported 2016 (pro forma) Adjustments Adjusted DWS standalone 2016 (pro forma) Abbey Life Sold & discontinued business(1) Other perimeter adj
Slide 28: Preliminary Additional Tier 1 (AT1) payment capacity
Other available reserves Available Distributable Items Preliminary Additional Tier 1 (AT1) payment capacity € m Note: Payment capacity for Deutsche Bank’s legacy and CRR-compliant Additional Tier 1 instruments is based on DB AG’s HGB stand-alone accounts under German GAAP which differ from the group
Slide 29: Preliminary Day 1 impact of IFRS 9
Preliminary Day 1 impact of IFRS 9 Shareholders Equity IFRS 9 introduction changes accounting classification of certain portfolios/positions accelerates provisioning of credit losses taking into account forward looking information. Impact reflects current favourable credit environment Higher provisi
Slide 30: Leverage exposure and risk-weighted assets
Leverage exposure and risk-weighted assets CRD4, fully loaded, € bn Leverage exposure vs. RWA(1) 250 64 64 31 Dec 2017 (3) (2) 31 Dec 2017 31 Dec 2017 30 Sep 2017 CRD4 – Leverage exposure RWA Leverage exposure and RWA Note:Figures may not sum due to rounding differences RWA excludes operational risk
Slide 31: Loan book
Loan book € bn Note:Figures may not sum due to rounding differences; loan amounts are gross of allowances for loan losses 2016 2017 30-Jun 414
Slide 32: Impaired loans
Impaired loans(1) Period-end, € bn 2016 2017 61% 61% 61% 61% 64% 64% 62% 63% 58% 61% 61% 61% 62% 59% 60% 62% 60% 63% 60% 61% 59% Cov. ratio Group(3) Cov. ratio CIB Cov. ratio PCB x.x% 1.7% 1.8% 1.8% 1.7% 1.7% 1.7% Impaired loan ratio Deutsche Bank Group(2) 1.8% Impaired loans Note:Figures may not su
Slide 33: Value-at-Risk
Sales & Trading revenues € 1.2bn € 0.9bn Value-at-RiskDB Group, 99%, 1 day, € m unless stated otherwise (1)Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses a historical market data from a period of significant financial stress (i.e. characterized by high volatilities and ex
Slide 34: Assets under Management / Client Assets – PCB
Assets under Management / Client Assets – PCB € bn Invested Assets / Client Assets – PCB Note: Figures may not sum due to rounding differences Assets under Administration include assets over which DB provides non investment services such as custody, risk management, administration and reporting (inc
Slide 35: Assets under Management – Deutsche AM
Assets under Management – Deutsche AM € bn Q4 2016 decline includes Abbey Life deconsolidation impact Assets Under Management / Client Assets – AM Note: Figures may not sum due to rounding differences; retail / institutional split was revised for periods prior to Q4 2016 due to methodology change in
Slide 36: Group headcount
Group headcount Full-time equivalents, at period end Group headcount 31 Dec 2016 31 Mar 2017 30 Jun 2017 30 Sep 2017 31 Dec 2017 31 Dec 2017 vs. 31 Dec 2016 CIB 17,129 16,703 16,284 16,801 17,251 122 PCB 45,045 44,651 44,130 43,671 43,460 (1,584) Deutsche AM 3,888 3,823 3,799 3,842 3,803 (86) NCOU 1
Slide 37: Cautionary statements
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2017 and SEC Form 20-F are scheduled to be published on 16 March 2018. This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical fact
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