Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (May 2017)
24 slides from Deutsche Bank's debt investor presentation, May 2, 2017
Slide 1: Q1 2017 Fixed Income Investor Conference Call
Deutsche Bank Q1 2017 Fixed Income Investor Conference Call Marcus Schenck, Chief Financial Officer Alexander von zur Mühlen 2 May 2017
Slide 2: Agenda
Agenda 1 Q1 2017 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank 1 Investor Relations
Slide 3: Highlights
Highlights Reported y-o-y revenue decline driven by losses for DVA and V&T from tightening of DB credit spreads Clients reengaging Continued resolution of litigation matters Progress becoming visible in costs with declines in Adjusted Costs and FTE Capital raise completed in April 2017 resulting in
Slide 4: First signs of improvement visible
First signs of improvement visible € bn, unless otherwise stated Q1 2017 vs. Q1 2017 vs. Q1 2017 Q1 2016 Q4 2016 Q1 2016 Q4 2016 Net revenues 7.3 8.1 7.1 (9)% 4% Provision for credit losses (0.1) (0.3) (0.5) (56)% (73)% Noninterest expenses (6.3) (7.2) (9.0) (12)% (30)% (1) therein: Adjusted Costs (
Slide 5: Further progress on cost reduction
Further progress on cost reduction Noninterest expenses, € bn Noninterest expenses Key facts -0.8 — Noninterest expenses of € 6.3bn are 9.0 € 0.8m (12%) lower than FX-adjusted Q1 2016 Impairments 1.1 / Policyholder 7.2 7.2 — Adjusted Costs reduction of € 0.3bn Benefits and Claims(1) 0.2 1.6 reflects
Slide 6: Decline of adjusted costs and further FTE reduction achieved
Decline of adjusted costs and further FTE reduction achieved Adjusted Costs, € m Adjusted Costs(1) Key facts 1Q16 — Adjusted costs were € 296m (4%) below Q1 2016 FX 1Q16 4Q16 1Q17 FX(2) — Compensation and benefits costs down € 20m vs. Q1 2016 FX. 3,119 3,125 2,762 3,104 Lower salary expense reflecti
Slide 7: Outlook 2017
Outlook 2017 ― Macroeconomic outlook improved from prior year, but remains subject to geopolitical uncertainty ― Prior disposals (HXB, Abbey, US PCS) will impact prior year comparisons ― Expected growth from regained market share Remain focused on cost management; Adjusted Costs expected to decline
Slide 8: Agenda
Agenda 1 Q1 2017 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank 7 Investor Relations
Slide 9: Tier 1 capital further strengthened by capital raise in April
Tier 1 capital further strengthened by capital raise in April Tier 1 capital, CRD4, fully loaded, € bn Common Equity Tier 1 Tier 1 capital Additional Tier 1 capital Events in the quarter 4.6 4.6 4.6 — Q1 2017 CET1 capital up by € 0.2bn to € 42.5bn; Tier 1 capital of € 47.0bn — € 0.6bn net income par
Slide 10: RWA stable. Leverage exposure reflects higher volumes
RWA Stable. Leverage exposure reflects higher volumes CRD4, fully loaded, € bn RWA and CET1 ratio Events in the quarter 11.8% CET1 ratio, fully loaded 11.9% 14.1% — Q1 2017 fully loaded CET1 ratio of 11.9%, 4bps above 4Q 13.4% CET1 ratio, phase-in 12.7% 14.9% 2016 — Overall Q1 2017 RWA remained flat
Slide 11: Liquidity well above regulatory requirements
Liquidity well above regulatory requirements Liquidity Coverage Ratio(1) (LCR) Details 148% ― Q1 position benefitted from strong liability inflows during the quarter 128% 119% 122% ― Liquidity Coverage Ratio improved by 20% over the quarter ― € 71bn surplus above 100% level ― Liquidity reserves at €
Slide 12: Long-term, well diversified funding profile
Long-term, well diversified funding profile External funding profile as of 31 March 2017, € bn Funding profile well diversified Details — 71% of total funding from most stable sources, slightly decreased versus year-end (72%) Secured Equity, 6% (1) — Total funding sources(4) increased by € 28bn to €
Slide 13: Comfortably on track to meet 2017 funding plan
Comfortably on track to meet 2017 funding plan € bn Funding Plan 2017 Maturity profile(1) Senior Plain Vanilla(2) Senior Structured Covered Bonds Capital instruments Contractual maturities 25 13 22 22 21 18 13 13 17 9 13 4 10 7 6 6 4 4 2 3 4 2 1 1 1 1 1 As of 31 Plan 2017 March 2015 2016 2017e 2018e
Slide 14: Well positioned to meet future TLAC requirements
Well positioned to meet future TLAC requirements 2019 Transitional TLAC availability and requirements(1) as of 1Q17 EUR 118bn Plain-vanilla senior debt(2) DB has TLAC of EUR 82bn 58bn EUR 73bn 33% of RWA or TLAC 8.6% of Leverage G-SIB buffer 2.0% Adjust- Exposure – Capital Conservation buffer 2.5% 1
Slide 15: Rating methodologies increasingly reflect new resolution regime
Rating methodologies increasingly reflect new resolution regime and therefore require more differentiation Counterparty obligations (e.g. Deposits / A3(cr)(1) ICR: A-(2) A(3) A(high) Derivatives / Swaps) Preferred A3 A (emr) - (4) A- Senior non- unsecured preferred Baa2 BBB- A- A(low) short- term P-
Slide 16: Agenda
Agenda 1 Q1 2017 results 2 Capital, funding and liquidity 3 Appendix Deutsche Bank 15 Investor Relations
Slide 17: AT1 and Trust Preferred Securities instruments
AT1 and Trust Preferred Securities instruments(1) €6 bn of capital instruments called since January 2015 Original Regulatory Capital Nominal Call Next Subsequent Issuer (1) ISIN Coupon issuance treatment recognition(1) outstanding date call date call period date DB Capital Funding Trust VI DE000A0DT
Slide 18: Funding sources to TLAC reconciliation
Funding sources to TLAC reconciliation As of 31 March 2017, in EUR bn Covered 211 bonds 23 (23) Structured 28 (28) notes (22) (2) Plain-vanilla (20) 118 81 +1 senior debt Plain-vanilla senior debt 58 AT1/T2 TLAC 19 1 adjustments 17 AT1/T25 Shareholders’ 60 Equity 42 CET15 Funding TLAC Senior plain O
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 31 March 2017, in € bn Assets (after netting) Liabilities & equity (after netting) Comments 1,104 1,104 Net proceeds from 8 — Net balance sheet of € 1,104bn (including pro- pro-forma capital raise 49 Unsecured Wholesale(6) forma capital raise of € 8bn) represents the fun
Slide 21: Litigation update
Litigation update € bn Litigation reserves Contingent liabilities 7.6 2.3 2.4 3.2 31 Dec 2016 31 Mar 2017 31 Dec 2016 31 Mar 2017 — Decrease due to settlement payments for major cases, — Includes possible obligations where an estimate can be including DOJ RMBS and Kaupthing made and outflow is more
Slide 22: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, € m Average VaR Stressed VaR (1) EUR 2.8 bn Sales & Trading revenues EUR 2.9 bn 180 160 140 120 100 80 60 40 20 Q12016 37 Q22016 37 28 Q3 2016 27 Q4 2016 Q132 2017 98 89 77 78 76 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 (1) Stressed Value-at-Risk is cal
Slide 23: Key drivers of credit loss provisions
Key drivers of credit loss provisions Industry and Regional Breakdown of € 133m CLPs, Q1 2017 CLPs by major industries CLPs by major regions 6 19 1 (45) (20) 133 133 39 65 66 Thereof: Oil & Gas: (3) Steel, Metals & Mining: (3) 31 88 GVA: (25) 35 47 6 9 32 Homogeneous(1) Shipping Industrials Consumer
Slide 24: 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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