Slide 1: Q3 2020 results
Deutsche Bank Q3 2020 results 28 October 2020
Slide 2: Continued progress on strategic transformation
Continued progress on strategic transformation Delivered against all targets and milestones for the 5th consecutive quarter of our strategic transformation Growing revenues under refocused strategy Reduced adjusted costs year-on-year for 11th consecutive quarter – on track to reach targets Significa
Slide 3: Disciplined delivery of transformation agenda
Disciplined delivery of transformation agenda Key achievements in Q3 2020 Announced closure of additional 100 Deutsche Bank branches Extended partnerships with Zurich Group and Mastercard Further real estate footprint optimization to support long-term cost reductions Further simplification o
Slide 4: Growing revenues under refocused strategy
Growing revenues under refocused strategy Last 12 months (LTM) revenues(1) ex. specific items, in € bn Group 23.2 23.8 ~0.7% ~24.5 CAGR(3) 7% 24.1 22.4 5.2 Corporate 5.3 Bank Investment 8.8 6.7 Bank Private 8.1 8.1 Bank Asset Management 2.2 2.3 LTM Q3 2019(2) LTM Q3 2020 2022 Group revenue plan as o
Slide 5: Cost discipline continues for the 11th consecutive quarter
Cost discipline continues for the 11th consecutive quarter Adjusted cost ex. transformation charges(1), in € bn Bank levies Prime Finance(2) 0.7 0.6 0.5 0.1 5.7 5.6 5.5 5.4 5.3 5.3 5.2 5.0 4.9 4.7 4.7 0.1 0.1 0.1 0.1 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3
Slide 6: Strategic transformation drives growth and higher profitability
Strategic transformation drives growth and higher profitability In € bn, unless stated otherwise Operating leverage(1) Last 12 months (LTM) adjusted profit (loss) before tax(2) Group Core Bank 17% 13% 11% 11% 12% 10% 7% 5% 55% 3.7 Core Bank 3% 2.4 1% 1% (1)% (2)% Capital (2.1) (2.4) Release Unit (8)
Slide 7: Driving operating leverage with improved resource efficiency
Driving operating leverage with improved resource efficiency Corporate Bank Investment Bank Operating leverage(1) Risk weighted assets, in € bn Operating leverage(1) Risk weighted assets, in € bn 15ppt (3)% 39ppt 1% 1% 59 58 40% 123 124 1% (13)% Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 201
Slide 8: Maintained strong balance sheet
Maintained strong balance sheet Q1 2020 Q2 2020 Q3 2020 Common Equity Tier 1 285bps above regulatory 12.8% 13.3% 13.3% capital ratio requirements Deposit growth and loan Liquidity reserves € 205bn € 232bn € 253bn facility repayments € 76bn above regulatory Liquidity Coverage Ratio 133% 144% 151% req
Slide 9: Q3 2020 Group financial highlights
Q3 2020 Group financial highlights In € m, unless stated otherwise Change in % Change in % Q3 2020 vs. Q3 2019 vs. Q2 2020 Revenues 5,938 13 (6) Revenues Revenues ex. specific items(1) 5,935 9 (5) Noninterest expenses 5,183 (10) (3) Costs Adjusted costs ex. transformation charges(2) 4,816 (8) (2) Pr
Slide 10: Provision for credit losses
Provision for credit losses In € m Total COVID-19 impact: 76 273 197 215 — Provisions declined in the quarter but remain (139) elevated compared to pre COVID-19 levels — Decline driven by releases in COVID-19 related Stage 1 and 2 provisions reflecting positive changes in macro-economic outlook sinc
Slide 11: Capital ratios
Capital ratios Movements in basis points, period end CET1 ratio 12 — CET1 capital ratio increased by 2bps in the quarter 13.3% 13.3% — 6bps due to COVID-19, notably: (4) (7) — Lower Credit Risk RWA from repayment of client credit facilities and lower derivative exposures partly offset by continued r
Slide 12: Adjusted costs
Adjusted costs In € m Q3 2019 ex. transformation 5,240 charges Compensation — Reductions in all cost categories (160) and benefits(1) — Lower compensation and benefits reflect workforce Information Technology (120) reductions (8)% — IT costs decreased mainly due to Professional (67) lower software a
Slide 13: Segment results
Segment results Deutsche Bank Q3 2020 results 12 Investor Relations 28 October 2020
Slide 14: Corporate Bank
Corporate Bank In € m, unless stated otherwise Change in Change in % vs. % vs. Q3 2020 Q3 2019 Q2 2020 Q3 2020 vs. Q3 2019 comments Revenues 1,254 (5) (6) — Revenues declined by 5%, or 2% on an Revenues FX adjusted basis Revenues ex. specific items(1) 1,254 (5) (6) — The impact of interest rate head
Slide 15: Q3 2020 Corporate Bank revenue performance
Q3 2020 Corporate Bank revenue performance In € m X% X% Excluding specific items(1) Change vs. Q3 2019 Q3 2020 vs. Q3 2019 comments Global Transaction Banking: — Cash Management revenues declined Global Transaction Banking 893 (8)% (8)% as interest rate headwinds and lower client activity were partl
Slide 16: Investment Bank
Investment Bank In € m, unless stated otherwise Change in Change in % vs. % vs. Q3 2020 Q3 2019 Q2 2020 Q3 2020 vs. Q3 2019 comments — Significantly higher revenues driven by Revenues 2,365 43 (12) the benefits of strategic repositioning, Revenues strong market conditions and strong Revenues ex. spe
Slide 17: Q3 2020 Investment Bank revenue performance
Q3 2020 Investment Bank revenue performance In € m X% X% Excluding specific items(1) Change vs. Q3 2019 Q3 2020 vs. Q3 2019 comments Fixed Income, Currency Sales & Trading: — Significantly higher Rates revenues on increased client flows Fixed Income, Currency — FX revenues significantly higher from
Slide 18: Private Bank
Private Bank In € m, unless stated otherwise Change in Change in % vs. % vs. Q3 2020 Q3 2019 Q2 2020 Q3 2020 vs. Q3 2019 comments — Revenues flat as volume growth offset Revenues 2,033 (0) 4 deposit margin compression and Revenues Revenues ex. specific items(1) 2,026 0 5 impacts of COVID-19 pandemic
Slide 19: Q3 2020 Private Bank revenue performance
Q3 2020 Private Bank revenue performance In € m X% Excluding specific items(1) Change vs. Q3 2019 Q3 2020 vs. Q3 2019 comments Private Bank Germany: — Growth in lending revenues, higher fee income from investment products and higher episodic Private Bank insurance revenues offset the ongoing deposit
Slide 20: Asset Management
Asset Management In € m, unless stated otherwise Change in Change in % vs. % vs. Q3 2020 Q3 2019 Q2 2020 Q3 2020 vs. Q3 2019 comments Revenues 563 4 3 Revenues — Revenues increased mainly as a Revenues ex. specific items(1) 563 4 3 result of favourable change in fair value of guarantees and lower No
Slide 21: Corporate & Other
Corporate & Other In € m Profit (loss) before tax Change Change vs. Q3 vs. Q2 Q3 2020 2019 2020 Profit (loss) before tax (396) (219) (232) Funding & liquidity (28) 74 36 (176) (164) Valuation & Timing differences(1) (179) (227) (137) Shareholder expenses (107) 41 0 Noncontrolling interest(2) 44 8 2
Slide 22: Capital Release Unit
Capital Release Unit In € m, unless stated otherwise Absolute Absolute change vs. change vs. Q3 2020 Q3 2019 Q2 2020 Q3 2020 vs. Q3 2019 comments Revenues (36) 184 30 — Significant improvement in loss before tax on lower costs and improvement in Revenues Revenues ex. specific items(1) (34) 87 10 rev
Slide 23: On track to achieve financial milestones
On track to achieve financial milestones 9M 2020 2020 financial milestones Adjusted costs(1) € 14.9bn € 19.5bn Provision for credit losses 47bps 35 – 45bps (in bps of loans)(2) Leverage ratio(3) 4.4% 4.5% CET1 ratio 13.3% At least 12.5% Capital Release Unit risk weighted assets € 39bn € 38bn (1) Adj
Slide 24: Appendix
Appendix Deutsche Bank Q3 2020 results 23 Investor Relations 28 October 2020
Slide 25: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Our key focus areas Recent achievements Q3 achievements in blue – DB is ranked #3 on Deal-logic league tables for Green Bond volumes and helped clients raise more than € 27.2bn funding – Highlights of this quarter are Federal Republic of Germany’s inaugural Green Bond
Slide 26: 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 27: Core Bank financial highlights
Core Bank financial highlights Q3 2020, in € bn, unless stated otherwise Core Change vs. Change vs. Capital Release Bank Q3 2019 Q2 2020 Unit Revenues 6.0 9% (6)% (0.0) Revenues ex. specific items 6.0 7% (5)% (0.0) Noninterest expenses 4.8 (4)% (1)% 0.4 Adjusted costs ex. transformation charges(1) 4
Slide 28: Core Bank financial highlights
Core Bank financial highlights 9M 2020, in € bn, unless stated otherwise Core Change vs. Capital Release Bank 9M 2019 Unit Revenues 18.7 8% (0.2) Revenues ex. specific items 18.6 7% (0.2) Noninterest expenses 14.6 (9)% 1.6 Adjusted costs ex. transformation charges(1) 13.8 (4)% 1.4 Profit (loss) befo
Slide 29: Core Bank adjusted post-tax RoTE
Core Bank adjusted post-tax RoTE In € m, unless stated otherwise Q3 2019 Q3 2020 9M 2019 9M 2020 Profit (loss) (102) 617 (2,116) 1,719 Profit (loss) attributable to noncontrolling interests (27) (31) (90) (87) Profit (loss) attributable to additional equity components (67) (85) (196) (249) Profit (l
Slide 30: Specific revenue items and adjusted costs – Q3 2020
Specific revenue items and adjusted costs – Q3 2020 In € m Q3 2020 Q3 2019 Q2 2020 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 1,254 2,365 2,033 563 (240) 5,974 (36) 5,938 1,324 1,658 2,041 543 (84) 5,483 (220) 5,262 1,336 2,67
Slide 31: Specific revenue items and adjusted costs – 9M 2020
Specific revenue items and adjusted costs – 9M 2020 In € m 9M 2020 9M 2019 Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Revenues 3,915 7,396 6,144 1,631 (350) 18,735 (159) 18,575 3,958 5,494 6,203 1,662 103 17,420 396 17,816 DVA - IB Other / CRU - 29 - - - 29 (1) 28 - (126
Slide 32: Adjusted costs excluding transformation charges
Adjusted costs excluding transformation charges In € m, unless otherwise stated Q3 2020 Q3 2019 YoY Q2 2020 QoQ Compensation and benefits 2,602 2,762 (6)% 2,579 1% Adjusted costs excluding transformation IT costs 894 1,014 (12)% 905 (1)% Professional service fees 232 298 (22)% 243 (5)% Occupancy, fu
Slide 33: Adjusted profit (loss) before tax (PBT)
Adjusted profit (loss) before tax (PBT) In € m Q3 2020 Q3 2019 Transfor- Transfor- Specific Goodwill Restructuring Specific Goodwill Restructuring Reported PBT mation Adjusted PBT Reported PBT mation Adjusted PBT revenue items impairments & severance revenue items impairments & severance charges(1)
Slide 34: Last 12 months (LTM) reconciliation
Last 12 months (LTM) reconciliation In € m Q3 2019 Q3 2020 Q4 2018(1) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 LTM(2) LTM(3) Revenues Core Bank 5,280 5,955 5,982 5,483 5,528 6,407 6,353 5,974 22,700 24,263 CRU 294 396 221 (220) (180) (57) (66) (36) 691 (339) Group 5,575 6,351 6,203 5,
Slide 35: Operating leverage
Operating leverage(1) In € m, unless stated otherwise Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2019 2019 2019 2020 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 vs. vs. vs. vs. vs. vs. vs. 2018(2) 2018(2) 2018(2) 2018(2) 2019 2019 2019 2019 2020 2020 2020 2019 2019 2019 2019 2020 2020 2020 Q1 Q2
Slide 36: Transformation-related effects
Transformation-related effects In € bn 2019 – 2019 – 2022 Q3 2020 expected % of total cumulative cumulative 2019 – Q3 2020 expenses expenses Q3 2020 Deferred tax Deferred Tax Asset asset valuation 2.8 (0.0) 2.8 3.4 83% valuation adjustment adjustment Nonoperating Goodwill impairment - 1.0 1.0 100% c
Slide 37: Bridge from EU IFRS to IASB IFRS
Bridge from EU IFRS to IASB IFRS Profit (loss), in € m Q3 2020 — Deutsche Bank’s financial statements have historically 309 317 been prepared based on the International Financial 9 Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and endorsed by the Eur
Slide 38: COVID-19 impact on financials
COVID-19 impact on financials(1) COVID-19 impact Q1 2020 Q2 2020 Q3 2020 Drivers — Still elevated level of COVID-19 related new Provision for defaults € (260)m € (410)m € (76)m credit losses — Improved macro-economic outlook with partial reversal of provisions for performing assets — Lower Credit Ri
Slide 39: Supporting clients through COVID-19
Supporting clients through COVID-19 Loan # Customers Amount — More than 90% to Private Bank clients Legislative & voluntary ~104k € 9bn(2) — 80% relates to expired moratoria industry-driven moratoria(1) — Represents 2% of Group loan portfolio Voluntary bilateral — Bilateral forbearance mainly in the
Slide 40: Deposit charging
Deposit charging Quarterly revenue impact, € m 57 — On track to exceed 2022 revenue plan already in 45 2020 as deposit attrition lower than forecast 32 16 — More than 90% of charging agreements currently in <10 the Corporate Bank, increasingly protecting the franchise against potential further inter
Slide 41: Indicative regional currency mix – Q3 2020
Indicative regional currency mix – Q3 2020 Net revenues Total noninterest expenses 9% 7% 7% 6% 11% 13% Other (1) 20% 18% Other (1) 17% 17% 4% 4% 0% 0% 20% 19% 25% 18% USD USD 16% GBP 18% 12% 1% 32% 36% 7% 0% GBP 16% 19% 0% 86% 89% EUR 69% 62% 62% EUR 60% 39% 52% 51% 46% 11% CB IB PB AM Group CB IB P
Slide 42: Net interest income sensitivity
Net interest income sensitivity Hypothetical +100bps parallel shift impact, in € bn First year Second year 1.4 1.0 0.9 0.6 0.5 0.4 Retail Non-retail Group Retail Non-retail Group Maturity Maturity > 3M 0.3 0.1 0.3 > 3M 0.5 0.1 0.6 EUR EUR ≤ 3M 0.4 0.3 0.7 ≤ 3M 0.4 0.3 0.7 > 3M 0.0 0.0 0.1 > 3M 0.0 0
Slide 43: Litigation update
Litigation update In € bn, period end Litigation provisions(1) 1.1 1.1 1.1 ― Provisions decreased by € 0.1bn in the quarter 1.0 1.0 predominantly due to settlement payments, mainly in connection with the New York Department of Financial Services settlement in Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Slide 44: Provision for credit losses and stage 3 loans
Provision for credit losses and stage 3 loans Provision for credit losses, € m Stage 3 at amortised cost, € 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) IB (ex-POCI) Group Stage 3 2.3% 2.2%
Slide 45: Loan book
Loan book In € bn, period end Change vs. Q3 2019 Reported ex. FX 459 434 442 431 433 415 419 65 Global Transaction 59 56 (15)% (11)% 66 66 Banking 65 66 15 11 4 8 n.m. n.m. Strategic Coporate 5 5 5 50 50 50 Lending 49 50 47 48 3% 3% Commercial Banking 74 75 87 80 73 (1)% 4% Investment Bank 69 69 43
Slide 46: Loan book composition
Loan book composition Q3 2020, IFRS loans: € 433bn Capital Release Unit Other(1) IB Other(3) 1% 3% Leveraged Debt Capital Markets 6% — Well diversified loan portfolio 1% Asset Backed Securities German — 54% of loan portfolio in Private Bank, 5% Mortgages mainly consisting of German retail IB - Comme
Slide 47: Loan exposure by rating buckets
Loan exposure by rating buckets Preliminary 158 142 116 105 Exposure at Default 69 (EAD) (€ bn)(1) 46 37 36 Risk mitigation(2) 21 35 10 12 Adjusted exposure 34 42 37 (LGD basis) 17 11 3 7 6 6 iAAA-iAA iA iBBB iBB iB iCCC Default Probability of default 227 – 0-4 4 - 11 11 - 50 50 - 227 >1,022 N/A (bp
Slide 48: Level 3 assets
Level 3 assets As of 30 September 2020, in € bn Assets (total: € 23bn) Equity securities Mortgage backed securities Other 1 2 — Level 3 is an indicator of valuation uncertainty and 0 not of asset quality Debt Derivative securities 4 9 — The slight decrease in Level 3 assets reflects: Assets — Portfo
Slide 49: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, fully loaded, in € bn, period end Leverage exposure Risk weighted assets 325 325 70 Operational Risk RWA 70 1,192 1,101 Trading assets 116 117 Market Risk RWA 28 34 Credit valuation 5 Derivatives(1) 147 142 22 adjustments Lending 438 250 429 116 Lendi
Slide 50: Trading book Value at Risk
Trading book Value at Risk DB Group, in € m Monte Carlo Stressed Value at Risk(1), Trading, 99% confidence level, 1-day Monte Carlo Value at Risk, Trading, 99% confidence level, 1-day Quarterly average ∅ 86 ∅ 79 ∅ 72 ∅ 73 ∅ 69 ∅ 30 ∅ 25 ∅ 24 ∅ 43 ∅ 42 120 100 80 60 40 20 0 Q3 2019 Q4 2019 Q1 2020 Q2
Slide 51: Value at Risk – Historical Simulation vs Monte Carlo
Value at Risk – Historical Simulation vs Monte Carlo DB Group, in € m Historical Simulation, Value at Risk Historical Simulation, Value at Risk + Stressed Value at Risk(2) Monte Carlo, Value at Risk Monte Carlo Value at Risk + Stressed Value at Risk(2) Trading, 99% confidence level, 1-day Regulatory
Slide 52: Assets under Management – Private Bank
Assets under Management – Private Bank In € bn Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Assets under Management 473 478 481 482 442 471 477 Private Bank Germany 207 211 211 213 197 209 212 therein: Deposits (1) 106 108 106 104 106 106 107 therein: Investment Products (2) 102 103 105 1
Slide 53: 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