Slide 1: Deutsche Bank – Q2 2017 Results
Deutsche Bank Deutsche Bank – Q2 2017 Results 27 July 2017
Slide 2: Highlights
Highlights Macroeconomic outlook remains positive, with improving growth expectations in Europe Revenue environment more challenging, impacted by muted client activity, low volatility and persistently low Eurozone interest rates Significant progress made on announced repositioning plan with solid op
Slide 3: Group financial summary
Group financial summary € bn, unless otherwise stated Q2 2017 vs. H1 2017 vs. Q2 2017 Q2 2016 H1 2017 H1 2016 Q2 2016 H1 2016 Net revenues 6.6 7.4 14.0 15.5 (10)% (10)% Provision for credit losses (0.1) (0.3) (0.2) (0.6) (70)% (62)% Noninterest expenses (5.7) (6.7) (12.0) (13.9) (15)% (13)% (1) ther
Slide 4: H1 2017 Net income trends
H1 2017 Net income trends €m Pre-tax items 228 1,041 Revenue items € (1.5)bn Expense items € 1.6bn 86 352 999 256 361 295 (48) Own credit 367 Other C&A (565) 630 272 (514) (332) Litigation Restructuring and Severance (348) Impairments (680) (3) Net income Business NCOU Disposals DVA C&A Adjusted Non
Slide 5: Noninterest expenses
Noninterest expenses € bn (14)% / €(0.9) 6.7 6.6 Impairments 0.4 6.3 0.3 0.0 / Policyholder 0.2 0.1 0.1 — Noninterest expenses of € 5.7bn were 14% (€ 0.2 5.7 benefits and claims 0.0 0.9bn) lower than FX-adjusted Q2 2016 0.1 Litigation — Adjusted costs declined by 5% (€ 0.3bn) Restructuring and refle
Slide 6: Adjusted costs
Adjusted costs(1) €m Q2 2016 Q2 2017 YoY Q1 2017 QoQ ex FX(2) Compensation and — Compensation and benefits costs broadly flat. Lower salary 2,890 2,906 (1)% 3,104 (7)% expense partially offset by higher accruals for variable benefits compensation IT costs 927 961 (4)% 933 (1)% — IT costs down 4% wit
Slide 7: Common Equity Tier 1 Capital and Risk-weighted assets (RWA)
Common Equity Tier 1 Capital and Risk-weighted assets (RWA) CRD4, fully loaded unless otherwise stated, € bn 11.8% CET1 ratio, fully loaded 14.1% 12.6% CET1 ratio, phase-in 14.9% — Q2 2017 CET1 capital at € 50.1bn, including € 8bn gross CET1 8.2 50.1 proceeds from the capital raise and € 0.2bn from
Slide 8: Leverage
Leverage CRD4, fully loaded unless otherwise stated, € bn 3.4%(1) Leverage ratio, fully loaded 3.8%(2) 3.9%(1) Leverage ratio, phase-in 4.2% — Leverage exposure up € 73bn, including FX effect of € (45)bn. Leverage exposure FX neutral increase is € 119bn 52 2 — Drivers of QoQ increase are a change to
Slide 9: Segment results
Segment results Deutsche Bank Q2 2017 Results 9 Investor Relations 27 July 2017
Slide 10: Corporate & Investment Bank (CIB)
Corporate & Investment Bank (CIB) Q2 2017 revenues, € m Q2 2017 as % of Old CIB/GM New CIB total CIB — New structure combines the former “Global Markets” and Global Global “Corporate & Investment Banking” segments 27% Transaction Transaction 27% — New CIB comprises Sales & Trading, Global Transactio
Slide 11: Corporate & Investment Bank (CIB)
Corporate & Investment Bank (CIB) €m Income before income taxes Financial overview Q2 2017 Q2 2016 YoY H1 2017 H1 2016 YoY 1,170 1,249 970 Net revenues 3,618 4,321 (16)% 8,026 8,960 (10)% 710 706 Prov. for credit losses (56) (155) (64)% (113) (305) (63)% 543 Noninterest expenses (3,000) (3,705) (19)
Slide 12: CIB business unit revenues and YoY drivers
CIB business unit revenues and YoY drivers €m Revenues Q2 2017 YoY revenue drivers Global Transaction Banking ― GTB revenues were impacted by a change in the method and (12)% 2,205 allocation for funding costs implemented in Q2 2017 2,015 ― Cash management revenues were slightly lower, as recent US
Slide 13: CIB business unit revenues and YoY drivers (cont'd)
CIB business unit revenues and YoY drivers (cont‘d) €m Revenues Q2 2017 YoY revenue drivers FIC S&T ― Credit revenues were significantly higher, supported by strong 2,779 2,838 performance in distressed debt products in Asia (12)% ― Rates revenues were lower driven by a difficult quarter for market
Slide 14: Private & Commercial Bank (PCB)
Private & Commercial Bank (PCB) €m Income before income taxes Financial overview Q2 2017 Q2 2016 YoY H1 2017 H1 2016 YoY Net revenues 2,558 2,764 (7)% 5,261 5,362 (2)% 700 710 (22) (100) Prov. for credit losses (101) (78)% (179) (44)% Noninterest expenses (2,226) (2,296) (3)% (4,452) (4,631) (4)% 55
Slide 15: PCB business unit revenues and YoY drivers
PCB business unit revenues and YoY drivers €m Revenues Q2 2017 YoY revenue drivers Private & Commercial Clients (1) (PCC) 2,728 2,603 (4)% ― Revenues down 4% mainly due to the impact from the Q2 2016 VISA Europe share sale of € 88m partially offset by a small gain on sale in the recent quarter 1,363
Slide 16: Deutsche Asset Management
Deutsche Asset Management €m Income before income taxes Financial overview Impairments Q2 2017 Q2 2016 YoY H1 2017 H1 2016 YoY Net revenues ex Abbey 414 676 634 7% 1,283 1,281 0% 331 Life gross-up (1) 214 234 161 170 180 Prov. for credit losses 0 (0) n.m. 0 (1) n.m. 1,021 Noninterest expenses ex (44
Slide 17: Consolidation & Adjustments (C&A)
Consolidation & Adjustments (C&A) €m Income before income taxes Financial overview Q2 2017 Q2 2016 YoY H1 2017 H1 2016 YoY IBIT (265) 42 n.m. (672) 99 n.m. 99 57 42 of which : V&T differences (1) (3) 71 n.m. (190) 243 n.m. CTA realisation(2) / loss (164) (10) n.m. (167) (10) n.m. on sale Funding and
Slide 18: Outlook 2017
Outlook 2017 Improving economic outlook in Europe coupled with low volatility and persistent low interest rates Continue to manage adjusted costs towards € ~22bn 2018 target Litigation remains difficult to forecast but expected to be higher in H2 2017 Prior guidance on restructuring unchanged – incr
Slide 19: Appendix
Appendix Deutsche Bank Q2 2017 Results 19 Investor Relations 27 July 2017
Slide 20: Appendix: Table of Contents
Appendix: Table of Contents P&L details 26 CRD4 – Leverage Exposure and Risk Weighted Assets 36 Loan book 37 Impaired loans 38 Value-at-Risk 39 Invested assets 40 Headcount 42 Deutsche Bank Q2 2017 Results 20 Investor Relations 27 July 2017
Slide 21: Litigation update
Litigation update € bn Litigation reserves Contingent liabilities 3.2 2.5 2.4 1.8 31 Mar 2017 30 Jun 2017 31 Mar 2017 30 Jun 2017 — Further progress in resolving legacy matters: — Includes possible obligations where an estimate can be made • BSA/AML settlement reached with the Fed and outflow is mor
Slide 22: Provision for credit losses
Provision for credit losses €m Cost of risk DB Group(1) Non-Core Operations Unit PCB CIB 0.35% 0.33% 492 0.30% 0.28% 0.28% 0.26% 31 0.25% 158 327 0.20% 304 17 259 75 5 102 0.13% 0.15% 101 0.11% 78 0.10% 303 133 208 78 79 0.05% 150 155 22 57 56 0.00% Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 Note: Figures may not
Slide 23: Reported and adjusted costs
Reported and adjusted costs €m Compensation and benefits (in €bn) Noninterest expenses excl. compensation and benefits (in €bn) 13.9 12.0 9.0 7.8 7.2 6.7 6.0 6.5 6.3 5.7 4.0 6.2 3.8 3.7 3.2 2.8 6.2 6.1 3.2 3.0 2.9 2.8 3.1 2.9 Q1 Q2 Q3 Q4 Q1 Q2 H1 H1 2016 2017 2016 2017 Adjusted costs 6,668 6,032 5,8
Slide 24: Net Interest Income sensitivity
Net Interest Income sensitivity Hypothetical +100bps parallel shift impact by business line and major currency, € bn First year Second year 1.5 1.2 > 3M 0.6 > 3M 0.4 0.8 EUR 0.6 0.7 0.6 ≤ 3M ≤ 3M 0.8 0.9 0.4 > 3M 0.3 0.1 > 3M ≤ 3M 0.3 USD 0.2 0.1 ≤ 3M 0.1 0.1 0.3 0.2 PCB CIB Group PCB CIB Group Tota
Slide 25: Indicative currency mix
Indicative currency mix Group net revenues / noninterest expenses, Q2 2017, % — The information presented has been classified based primarily on the currency of the Group’s office in which the EUR revenues or non interest expenses are 57% 48% recorded GBP 17% 3% USD 26% 20% Other(1) 14% 15% Net reve
Slide 26: IBIT detail
IBIT detail €m Q2 2017 DVA and own credit IBIT Restructuring and severance Litigation Impairments Adjusted IBIT spreads CIB 543 (104) (80) 78 (6) 655 PCB 310 0 (9) (48) 0 367 Deutsche AM 234 0 (4) (0) 0 238 C&A (265) (75) (1) (4) 0 (184) NCOU - - - - - - Group 822 (179) (95) 26 (6) 1,075 Q2 2016 DVA
Slide 27: IBIT detail
IBIT detail €m H1 2017 DVA and own credit IBIT Restructuring and severance Litigation Impairments Adjusted IBIT spreads CIB 1,249 (323) (141) 105 (6) 1,613 PCB 710 0 27 (45) 0 728 Deutsche AM 414 0 (8) 1 0 421 C&A (672) (190) (1) (4) 0 (476) NCOU - - - - - - Group 1,701 (513) (124) 57 (6) 2,286 H1 2
Slide 28: Post-tax RoTE
Post-tax RoTE € m, unless otherwise stated CIB PCB Deutsche AM NCOU C&A Group Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 IBIT 543 460 310 367 234 170 - (632) (265) 42 822 408 (1) Taxes 179 159 102 127 77 59 - (219) (2) 261 357 388 Net income 364 3
Slide 29: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, fully loaded, € bn CRD4 – Leverage exposure RWA(1) 1,369 1,443 257 257 Non-derivative 187 64 185 39 Market Risk RWA 35 trading assets 64 CVA 7 Derivatives(2) 213 198 35 394 Lending 400 113 148 Credit Risk RWA 215 Reverse repo / 154 securities borrowed
Slide 30: Loan book
Loan book € bn 429 433 428 414 413 403 CIB 154 158 154 147 137 145 PCC 119 119 120 119 121 121 WM 43 44 43 40 40 39 PB 104 105 105 105 105 106 NCOU 8 6 5 3 31-Mar 30-Jun 31-Mar 30-Jun 30-Sep 31-Dec 2016 2017 Note: Loan amounts are gross of allowances for loan losses. Figures may not sum due to round
Slide 31: Impaired loans
Impaired loans(1) Period-end, € bn Impaired loan ratio Deutsche Bank Group(3) Non-Core Operations Unit PCB CIB 2.40% 7.6 7.5 7.4 7.4 2.20% 6.9 1.1 0.8 6.7 2.00% 1.6 1.3 1.80% 1.60% 3.6 4.0 3.8 1.40% 3.6 3.6 3.5 1.20% 1.00% 0.80% 0.60% 0.40% 2.6 2.8 3.0 2.9 2.8 2.4 0.20% 0.00% Q1 Q2 Q3 Q4 Q1 Q2 2016
Slide 32: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, € m unless otherwise stated Average VaR Stressed VaR(1) € 2.0bn Sales & Trading revenues € 1.7bn 180 160 140 120 100 80 60 40 20 37 28 27 32 32 89 77 78 76 83 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 (1) Stressed Value-at-Risk is calculated on the sam
Slide 33: Invested Assets / Client Assets – PCB
Invested Assets / Client Assets – PCB € bn FY2015 Q1 2016 2Q 2016 Q3 2016 (3) Q4 2016 Q1 2017 Q2 2017 Invested Assets 578 553 552 510 496 504 500 Assets under Administration (1) 188 187 194 189 194 198 201 Client Assets 766 739 746 698 690 702 701 Breakdown of Invested Assets 578 553 552 510 496 504
Slide 34: Invested Assets / Client Assets – AM
Invested Assets / Client Assets – AM € bn Q4 2016 decline includes Abbey Life deconsolidation impact FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Invested Assets 744 711 719 715 706 723 711 Assets under Administration (1) 54 57 63 65 68 67 62 Client Assets 798 768 782 780 774 790 772 Brea
Slide 35: Group headcount
Group headcount Full-time equivalents, at period end 30 Jun 2017 30 Jun 2016 30 Sep 2016 31 Dec 2016 31 Mar 2017 30 Jun 2017 vs. 31 Mar 2017 CIB 16,715 17,192 17,068 16,628 16,196 (432) PCB 45,986 45,297 44,435 44,052 43,533 (518) Deutsche AM 3,836 3,870 3,849 3,785 3,760 (24) NCOU 132 117 116 - - -
Slide 36: 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