Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2018 Earnings Presentation
34 slides from Deutsche Bank's earnings presentation, Apr 26, 2018
Slide 1: Deutsche Bank – Q1 2018 results
Deutsche Bank Deutsche Bank – Q1 2018 results 26 April 2018
Slide 2: Summary
Summary Successful execution of key strategic priorities, including the IPO of DWS and the agreements to sell our retail operations in Portugal and Poland German retail bank integration is progressing on schedule; capital waiver confirmed by the ECB and legal merger on track for Q2 2018 Timely deliv
Slide 3: Group financial summary
Group financial summary € bn, unless stated otherwise Q1 2018 vs. Q1 2018 vs. Q1 2018 Q1 2017 Q4 2017 Q1 2017 Q4 2017 Net revenues 7.0 7.3 (5)% 5.7 22% Provision for credit losses (0.1) (0.1) (34)% (0.1) (32)% Noninterest expenses (6.5) (6.3) 2% (7.0) (8)% Profit & Loss of which : Adjusted costs (6.
Slide 4: Rolling last 12 months noninterest expenses
Rolling last 12 months noninterest expenses € bn Total costs: € (13.8)bn, (36)% Adjusted costs: € (2.5)bn, (10)% 38.7 37.2 36.1 Non-operating costs(1) 12.2 11.0 10.4 29.4 29.4 28.6 27.6 26.7 4.1 4.7 4.2 24.7 24.8 3.6 3.0 0.8 0.9 Adjusted costs(2) 26.5 26.2 25.7 25.4 24.7 24.4 24.0 23.7 23.9 23.9 Q4
Slide 5: Adjusted costs
Adjusted costs(1) € m, unless stated otherwise Q1 2017 YoY drivers (ex FX) Q1 2018 YoY ex FX(2) — Compensation and benefits costs slightly lower. Compensation and benefits(3) 2,960 2,979 (1)% Effects from headcount reduction and lower retention accruals more than offset wage inflation IT costs 1,022
Slide 6: Common Equity Tier 1 Capital and Risk-weighted assets
Common Equity Tier 1 Capital and Risk-weighted assets CRD4 14.0% CET1 ratio 13.4% — Q1 2018 CET1 capital down by € (0.7)bn on an FX neutral basis CET1, € bn — € (0.4)bn from ECB mandated deduction of irrevocable payment commitments to Single 48.3 0.6 Resolution Fund/Deposit Guarantee Schemes (0.3) 4
Slide 7: Leverage
Leverage CRD4, fully loaded, unless stated otherwise 3.8% Leverage ratio, fully loaded 3.7% — Leverage exposure up € 14bn incl. € (13)bn FX 4.1% Leverage ratio, phase-in 4.0% benefit. FX neutral exposure increase of € 27bn Leverage exposure, € bn — Pending settlements increased € 33bn reflecting 33
Slide 8: Segment results
Segment results Deutsche Bank Q1 2018 results 8 Investor Relations 26 April 2018
Slide 9: Corporate & Investment Bank (CIB)
Corporate & Investment Bank (CIB) € m, unless stated otherwise Income before income taxes Financial overview Q1 2018 Q1 2017 YoY Q4 2017 QoQ 777 610 Net revenues 3,846 4,408 (13)% 2,732 41% 406 Prov. for credit losses 3 (57) n.m. (7) n.m. 205 Noninterest expenses (3,641) (3,570) 2% (3,423) 6% Adjust
Slide 10: CIB business unit revenues and YoY drivers
CIB business unit revenues and YoY drivers € m, unless stated otherwise Revenues Q1 2018 YoY revenue drivers Global Transaction Banking — GTB revenues were impacted by unfavourable FX movements and changes in the funding allocation methodology implemented in Q2 (12)% 2017 1,042 — Cash management rev
Slide 11: CIB business unit revenues and YoY drivers (cont'd)
CIB business unit revenues and YoY drivers (cont’d) € m, unless stated otherwise Revenues Q1 2018 YoY revenue drivers FIC S&T — Credit revenues were lower compared to a strong prior year (16)% quarter with a decline in Flow Credit while Structured and Distressed Products continued to perform well 2,
Slide 12: Private & Commercial Bank (PCB)
Private & Commercial Bank (PCB) € m, unless stated otherwise Income before income taxes Financial overview 430 Q1 2018 Q1 2017 YoY Q4 2017 QoQ 338 348 322 Net revenues 2,639 2,704 (2)% 2,313 14 % Prov. for credit losses (88) (78) 14% (123) (28)% Noninterest expenses (2,229) (2,197) 1% (2,853) (22)%
Slide 13: PCB business unit revenues and YoY drivers
PCB business unit revenues and YoY drivers € m, unless stated otherwise Revenues Q1 2018 YoY revenue drivers Private & Commercial Clients (PCC) — Q1 2018 revenues down 5% mainly due to negative impacts of € 57m from the announced sales of the retail businesses in (5)% Portugal and Poland 1,299 1,307
Slide 14: Asset Management (AM)
Asset Management (AM) € m, unless stated otherwise Income before income taxes Financial overview Q1 2018 Q1 2017 YoY Q4 2017 QoQ 238 Net revenues 545 607 (10)% 621 (12)% 197 185 Noninterest expenses (472) (421) 12% (507) (7)% Adjusted costs (441) (418) 6% (491) (10)% IBIT 72 185 (61)% 114 (36)% 114
Slide 15: Reconciliation from DWS standalone to AM segment
Reconciliation from DWS standalone to AM segment IBIT, € m, Q1 2018 and Q1 2017 Q1 2018 Q1 2017 133 198 1 185 (15) (48) 72 (12) Sold & Other Asset Sold & Other Asset reported discontinued perimeter Management reported discontinued perimeter Management business(1) adjustments(2) reported (pro forma)
Slide 16: Corporate & Other (C&O)
Corporate & Other (C&O) €m Income before income taxes Financial overview Q1 2018 Q1 2017 YoY Q4 2017 QoQ IBIT (168) (514) (67)% (168) (0)% (19) of which : Shareholder expenses (97) (108) (10)% (92) 5% Litigation (2) (0) n.m. (74) (97)% (168) (168) Funding and liquidity (49) (116) (58)% 3 n.m. V&T di
Slide 17: Appendix
Appendix Deutsche Bank Q1 2018 results 17 Investor Relations 26 April 2018
Slide 18: Appendix: Table of contents
Appendix: Table of contents P&L details CRD4 – Leverage Exposure and Risk Weighted Assets Loan book IFRS 9 impact Stage 3 loans Net Interest Income sensitivity Value-at-Risk Asset Management / DWS Reconciliation Assets under Management Headcount Deutsche Bank Q1 2018 results 18 Investor Relations 26
Slide 19: Profit & Loss
Profit & Loss €m Q1 2017 Q1 2017 Q1 2018 Q1 2018 vs. Q1 2018 vs. ex FX(1) Q1 2017 Q1 2017 ex FX(1) Net revenues 7,346 7,025 6,976 (5)% (1)% Provision for credit losses (133) (137) (88) (34)% (36)% Noninterest expenses (6,334) (6,099) (6,457) 2% 6% of which: Adjusted costs(2) (6,336) (6,103) (6,350)
Slide 20: Indicative regional mix of revenues/expenses
Indicative regional mix of revenues/expenses Q1 2018 Net Revenues 9% 7% 11% — The information presented provides an illustrative Other 21% 4% 0% 19% currency mix of Revenues and Noninterest expenses 25% 13% 1% — Classification is based primarily on the currency of DB’s USD 40% Group office in which
Slide 21: IBIT detail
IBIT detail € m, unless stated otherwise Q1 2018 DVA and own credit Restructuring and IBIT Litigation Impairments(1) spreads severance CIB 205 61 (27) (58) - PCB 322 - (9) 20 - AM 72 - (4) (27) - C&O (168) - (0) (2) - Group 432 61 (41) (66) - Q1 2017 DVA and own credit Restructuring and IBIT Litigat
Slide 22: Reported and adjusted costs
Reported and adjusted costs € m, unless stated otherwise Noninterest expenses excl. compensation and benefits (in € bn) Compensation and benefits (in € bn) 7.0 6.3 6.5 5.7 5.7 3.6 3.2 3.5 2.8 2.9 3.1 2.9 3.4 3.0 2.8 Q1 Q2 Q3 Q4 Q1 2017 2018 Noninterest expenses 6,334 5,715 5,660 6,986 6,457 Cost / i
Slide 23: Litigation update
Litigation update € bn, unless stated otherwise Litigation provisions(1) Contingent liabilities(1) 2.0 1.9 2.7 2.5 31 Dec 2017 31 Mar 2018 31 Dec 2017 31 Mar 2018 Decrease due to settlement payments for major cases as well Includes possible obligations where an estimate can be made as releases for l
Slide 24: Provision for credit losses
Provision for credit losses €m Cost of risk DB Group(1) PCB CIB Provision for credit losses Provision for credit losses under IAS 39 under IFRS 9 0.13% 0.13% 0.13% 0.11% 184 0.05%(1) 133 129 90 78 79 88 22 123 94 88 57 56 7 (3) Q1 Q2 Q3 Q4 Q1 2017 2018 Cost of risk CIB 0.16% 0.17% 0.21% 0.15% (0.0)%
Slide 25: Leverage exposure and RWA
Leverage exposure and RWA CRD4, fully loaded, € bn Leverage Exposure vs. RWA(1) CRD4 – Leverage Exposure RWA 261 261 1,395 1,409 64 39 Market Risk RWA 33 Non-derivative 64 185 172 trading assets CVA 8 194 32 Derivatives(2) 195 Lending 395 389 113 Reverse repo / 250 Credit Risk RWA 220 136 securities
Slide 26: Loan book
Loan book In €bn Loan book under IAS 39 Loan book under IFRS 9 414 403 406 400 392 CIB 147 137 134 138 127 PCC 121 121 121 121 119 WM 40 39 37 37 37 PB 105 106 108 109 108 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 2017 2018 Note: Figures may not sum due to rounding differences. Loan amounts are gross of al
Slide 27: Impact of IFRS 9
Impact of IFRS 9 Shareholders’ equity € bn Classification & measurement Impairments IFRS 9 introduction changes accounting classification of (0.2) (0.1) certain portfolios/positions accelerates provisioning of credit losses (0.6) taking into account forward looking (0.7) 0.2 information 0.1 impact r
Slide 28: Stage 3 at Amortized Cost under IFRS 9
Stage 3 at Amortized Cost under IFRS 9 Period-end, € bn PCB CIB x.x% Impaired loans / Stage 3 at Amortized Cost ratio Deutsche Bank Group(2) Stage 3 at Amortized Cost Impaired loans under IAS 39(1) under IFRS 9 (1) 1.7% 1.7% 1.7% 1.5% 1.4% 9.7 6.9 6.7 6.7 4.8 6.2 4.0 3.8 3.9 3.7 4.9 2.9 2.8 2.8 2.5
Slide 29: Net Interest Income sensitivity
Net Interest Income sensitivity Hypothetical +100bps parallel shift impact by business line and major currency, € bn First year Second year 1.7 1.4 > 3M > 3M 0.3 0.6 EUR 0.9 0.7 0.7 0.8 1.1 3M 1.0 3M USD 0.2 0.2 > 3M > 3M 0.1 0.1 0.1 0.1 0.1 3M 0.1 3M 0.1 0.1 PCB CIB Group PCB CIB Group Total 0.8 0.
Slide 30: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, € m unless stated otherwise Average VaR Stressed VaR(1) € 3.0bn Sales & Trading revenues € 2.5bn 180 160 140 120 100 80 60 40 20 32 32 30 25 28 76 83 81 67 87 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 (1) Stressed Value-at-Risk is calculated on the same portfolio as
Slide 31: Reconciliation from AM reported segment to DWS standalone
Reconciliation from AM reported segment to DWS standalone Q1 2018 and Q1 2017 Perimeter adjustments AM reported DWS reported Q1 2018 Sold & discontinued Other perimeter Q1 2018 business(1) adjustments(2) Revenues (€m) 545 10 7 561 Noninterest expenses (€m) (472) 39 5 (428) Noncontrolling interests (
Slide 32: Assets under Management / Client Assets – PCB
Assets under Management / Client Assets – PCB € bn FY2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Assets under Management 501 508 504 505 506 497 Assets under Administration (1) 194 198 201 206 217 217 Client Assets 694 706 705 711 722 715 Breakdown of Assets under Management 501 508 504 505 506 497
Slide 33: Group headcount
Group headcount Full-time equivalents, at period end 31 Mar 2018 31 Mar 2017 30 Jun 2017 30 Sep 2017 31 Dec 2017 31 Mar 2018 vs. 31 Dec 2017 CIB 17,263 16,783 17,247 17,699 17,523 (175) PCB 44,803 44,281 43,829 43,620 43,458 (163) AM 3,980 3,953 3,998 3,967 3,998 31 Infrastructure 32,130 31,634 31,7
Slide 34: 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