Deutsche Bank Ag · XETR:DBK
Deutsche Bank — DB Global Financial Services Conference 2020
16 slides from Deutsche Bank's conference presentation, May 26, 2020
Slide 1: Deutsche Bank – Execution & Franchise Strength
Deutsche Bank – Execution & Franchise Strength Christian Sewing – Chief Executive Officer DB Global Financial Services Conference, New York, 26 May 2020
Slide 2: Summary
Summary Strategy well aligned with the current environment – Q1 2020 results support positive trend Strategic progress ahead of our internal expectations in first 3 out of 6 transformation quarters since July 2019 Franchise strength is increasingly visible – 11% positive operating leverage(1) in the
Slide 3: We are ahead of plan with our strategic transformation
We are ahead of plan with our strategic transformation Our decisive actions announced in July 2019 Invest in Exit Create four client- Cut Manage and technology & businesses centric divisions costs liberate capital control We have exited We have delivered on Investments are Equities Sales & We are on
Slide 4: Our franchise strength is increasingly visible
Our franchise strength is increasingly visible In € bn Revenues ex. specific items(1) Adjusted profit (loss) before tax(2) 6.3 6.3 Capital 0.4 Release Unit Core 1.1 Bank 32% Core 7% 6.4 0.8 Bank 5.9 (0.5) Capital (0.8) Release Unit Q1 2019 Q1 2020 (0.1) Q1 2019 Q1 2020 (1) Q1 2020 reported revenues:
Slide 5: Disciplined progress towards cost reduction targets
Disciplined progress towards cost reduction targets Adjusted cost excluding transformation charges and bank levies, in € bn (13)% (7)% 5.7 5.6 5.5 5.4 5.3 5.3 5.2 5.1 4.9 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Deutsche Bank DB Global Financial Services Conference, 26
Slide 6: Four leading divisions with continued franchise momentum
Four leading divisions with continued franchise momentum Investment Bank Corporate Bank RoTE(1): 10% RoTE(1): 5% − #1 Euro clearer − 80% revenues from − Leading non-US domiciled franchises in top 5 market USD clearer positions − Banking network across 145 − #3 in Credit globally countries − #3 in FX
Slide 7: Executing well on our strategic priorities
Executing well on our strategic priorities Investment Bank Corporate Bank − Stabilize our revenues and focus − Be the bank of choice for the on core strengths Corporate Treasurer − After front-office reductions in 2019, − Capture the full potential of our focus on infrastructure efficiencies payment
Slide 8: We operate where our clients want us to be
We operate where our clients want us to be 2019 revenues Americas: 20% Germany: 41% EMEA: 26% APAC: 13% Deutsche Bank DB Global Financial Services Conference, 26 May 2020 7 Investor Relations
Slide 9: Well positioned in this crisis as Germany’s leading bank
Well positioned in this crisis as Germany’s leading bank % of GDP as of 2019 Announced government COVID-19 measures Corporate debt 25 155 Access point to state 122 sponsored lending as 14 ‘Hausbank’ to ~900k 82 75 12 12 corporate and commercial 69 59 clients 6 5 Leading German corporate GY IT FR US
Slide 10: Maintained strong balance sheet
Maintained strong balance sheet Q1 2020 Comment 239bps above current regulatory Common Equity Tier 1 capital ratio 12.8% requirements Maintained a strong liquidity profile Liquidity reserves € 205bn while supporting client demand Liquidity Coverage Ratio 133% € 43bn above requirements Average Value
Slide 11: Low risk, well diversified loan portfolio
Low risk, well diversified loan portfolio Q1 2020 loans at amortized cost, in € bn, period end 459 — Trade Finance and working capital, mainly short-term to German midcaps and global multinationals 131 Corporate Bank — Commercial Banking loans to midcap and SME clients in Germany — Concentration ris
Slide 12: Strong credit quality versus peers
Strong credit quality versus peers Q1 2020 Credit Loss Provisions (CLP)(1) Loan loss reserves consistent with peers(2) In bps In % 31 44 3.5% Loan loss reserves / Gross loans 3.0% 61 2.5% 114 2.0% 148 1.5% 180 1.0% 228 0.5% 324 0.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 387 Unsecured retail
Slide 13: Increasing investments in technology and controls
Increasing investments in technology and controls ~€ 900m investments in Technology across Risk, Anti Financial Crime and Compliance in 2017 – 2019 Aggregate investments in Risk, Anti Financial Crime & Compliance Technology to increase further in 2020 Anti-Financial Crime Compliance Credit Risk Mark
Slide 14: Our targets
Our targets Stabilize, Cut costs Maintain capital discipline then grow revenues Well capitalized, highly liquid Continued business Strategic priorities supporting and low risk balance sheet momentum positions us well our cost reduction path provides a solid foundation to in current environment suppo
Slide 15: Well positioned to address the upcoming challenges
Well positioned to address the upcoming challenges Success factors Our response Structural cost Executing on 25% (€ 4.5bn) reduction in adjusted costs by 2022 reductions Working to identify new opportunities, including real estate footprint Scale Strategy focused on businesses in market leading posi
Slide 16: 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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