Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q4 2016 Earnings Presentation
49 slides from Deutsche Bank's earnings presentation, Feb 2, 2017
Slide 1: Deutsche Bank – 4Q2016 results
Deutsche Bank Deutsche Bank – 4Q2016 results 02 February 2017
Slide 2: Group financial highlights
Group financial highlights EUR bn, unless otherwise stated 4Q2016 vs. FY2016 vs. 4Q2016 4Q2015 FY2016 FY2015 4Q2015 FY2015 Net revenues 7.1 6.6 30.0 33.5 6% (10)% Provision for credit losses (0.5) (0.4) (1.4) (1.0) 30% 45% Noninterest expenses (9.0) (9.0) (29.4) (38.7) 0% (24)% (1) therein: Adjusted
Slide 3: Litigation update
Litigation update Litigation Reserves, in EUR bn Settled or otherwise resolved a significant number of large matters Achievements ~ EUR 2 bn 2016 Current reserves of EUR 7.6bn include EUR ~ 4.7bn for matters already settled/agreements-in-principle to settle have been reached. 7.6 BaFin closed specia
Slide 4: NCOU lifetime achievements
NCOU lifetime achievements EUR bn Jun 2012 (1) Dec 2016 Key De-risking items: Long dated derivative exposures, including ~128 (93)% Correlation portfolio RWA(2) 9 Negative basis portfolios, including Monoline Jun 2016 Dec 2016 exposures ~113 (95)% Bond sales, Private Equity and Asset Backed IFRS Sec
Slide 5: Quarterly Net Income
Quarterly Net Income Net income 4Q2016 vs 4Q2015, EUR m Policyholder benefits and claims FX-adjusted deltas(1) Impairments — Revenues increased EUR 0.5 bn including a gain on sale related to the Hua Xia Bank Ltd. stake of EUR 0.8bn 11 — Provisions for credit losses increased (408) Includes HXB impac
Slide 6: Full year Net Income
Full year Net Income Net income FY2016 vs FY2015, EUR m Policyholder benefits and claims FX-adjusted deltas(1) Impairments 4,509 75 (1,356) 565 Includes HXB impact EUR 793m (2) (144) (6,772) (1,516) 254 (511) 233 53 277 2,641 (1,155) (623) (429) 1,187 FY15 GM CIB PWCC (2) AM PB NCOU C&A CLP Adj. Res
Slide 7: Costs
Costs EUR bn Noninterest expenses Key facts (8.5) — 4Q2016 noninterest expenses were 37.9 EUR 0.3bn higher than FX-adjusted Impairments / 4Q2015 +0.3 6.0 Policyholder benefits and — Full year noninterest expenses were claims(1) 8.7 9.0 29.4 5.0 down by EUR 8.5bn 0.1 1.1 1.6 Litigation(2) 1.2 1.0 2.4
Slide 8: Adjusted Costs
Adjusted Costs EUR m Adjusted Costs(1) Key facts FY2016 vs FY2015 FX 4Q15 FY15 — Adjusted Costs are EUR 1,187m below prior year 4Q16 FY16 FX(2) FX(2) — Compensation and benefits costs decreased by EUR 1,143m mainly due to lower performance related Compensation and benefits 2,933 2,762 12,819 11,677
Slide 9: Tier 1 capital
Tier 1 capital CRD4, fully loaded, EUR bn Common Equity Tier 1 Tier 1 capital Additional Tier 1 capital Events in the quarter 4.6 4.6 — CET1 capital down by EUR (0.2)bn q-o-q to EUR 42.7bn as negative net income was offset by the 42.9 benefit from the disposal of the stake in Hua Xia 0.7 42.7 Bank L
Slide 10: RWA
RWA CRD4, fully loaded, EUR bn 11.1% CET1 ratio, fully loaded 11.9% 12.6% CET1 ratio, phase-in 13.5% Events in the quarter 385 — 4Q2016 fully loaded CET1 ratio of 11.9%, ~80bps above 3Q2016, including 54bps from disposal of 19.99% stake in Hua Xia Bank Ltd. (21) 6 358 (2) — RWA down by EUR (27)bn, i
Slide 11: Pillar 2 Requirements – DB above required minimum levels
Pillar 2 Requirements – DB above required minimum levels CET 1 Ratio vs. Pillar 2 CET 1 Requirements Events in the quarter CRR/CRD 4 phased-in CET 1 Ratio, in % — ECB notified DB of its Supervisory Review and Evaluation Process (SREP) conclusions for 2017, 13.53% setting Pillar 2 minimum requirement
Slide 12: Leverage exposure
Leverage exposure CRD4, fully loaded, EUR bn 3.5% Leverage ratio, fully loaded 3.5% 4.1% Leverage ratio, phase-in 4.1% Events in the quarter 1,354 33 1,348 — Fully loaded Leverage ratio at 3.5% in 4Q2016 vs 3.5% in 0 (15) 3Q2016 33 — Leverage exposure down by EUR (7)bn, including FX effect of EUR 33
Slide 13: Funding and liquidity
Funding and liquidity As of 31 December 2016, EUR bn Well diversified funding profile Comments — EUR 218bn of Liquidity Reserves (EUR 200bn September) — 128% Liquidity Coverage Ratio (increase vs. September Financing Equity, 6% (1) 122%) Secured Vehicles, 0% Funding and — Total Loss Absorbing Capaci
Slide 14: Balance sheet overview
Balance sheet overview As of 31 December 2016, EUR bn Assets (after netting) Liabilities & equity (after netting) Comments 1,077 1,077 — Net balance sheet of EUR 1,077bn represents the Cash, central bank 55 Unsecured Wholesale(6) funding required after recognizing (i) legal netting 178 agreements, (
Slide 15: Segment results
Segment results Deutsche Bank 4Q2016 results 15 Investor Relations 02 February 2017
Slide 16: Global Markets
Global Markets Income before income taxes Key features In EUR m In EUR m 4Q16 4Q15 4Q16 vs. FY16 FY15 FY16 vs. 4Q15 FY15 1,083 (1) Net revenues 1,464 1,502 (3)% 9,290 10,857 (14)% Prov. for credit losses (58) (43) 34% (142) (50) 185% 395 330 Noninterest exp. (2,142) (2,412) (11)% (9,084) (12,599) (2
Slide 17: Sales & Trading revenues
Sales & Trading revenues Revenues Key revenue features Debt S&T, in EUR m Debt Sales & Trading revenues 4Q2016 FX revenues were higher y-o-y driven by higher client activity 8,215 7,339 as a result of increased volatility particularly around US elections 11% Rates revenues were flat y-o-y driven by
Slide 18: Corporate and Investment Banking
Corporate and Investment Banking Income before income taxes Key features In EUR m In EUR m 1,691 4Q16 4Q15 4Q16 vs. FY16 FY15 FY16 vs. 4Q15 FY15 1,439 Net revenues 1,807 1,770 2% 7,483 8,047 (7)% Prov. for credit losses (244) (163) 50% (672) (342) 97% 722 596 640 Noninterest exp. (1,258) (1,297) (3)
Slide 19: Corporate and Investment Banking
Corporate and Investment Banking Revenues Key revenue features Transaction Banking: In EUR m Advisory Origination, Loan Products & Other TFCMC 4Q2016 9% down y-o-y. Performance has been impacted by persistent low interest rates in Europe, subdued trade volumes Transaction Banking 8,047 combined with
Slide 20: Private, Wealth & Commercial Clients
Private,Wealth & Commercial Clients Income before income taxes Key features In EUR m In EUR m 4Q16 vs. FY16 vs. 4Q16 4Q15 FY16 FY15 4Q15 FY15 1,068 Net revenues 2,379 1,877 27% 7,717 7,510 3% 701 Prov. for credit losses (95) (92) 3% (255) (300) (15)% 483 Noninterest exp. (1,583) (2,311) (31)% (6,394
Slide 21: Private, Wealth & Commercial Clients: Business Units
Private,Wealth & Commercial Clients: Business Units Revenues Key revenue features Private & Commercial Clients, in EUR m (1) Private & Commercial Clients (PCC) FY2016 PCC revenues down 7% versus FY2015 driven by the ongoing low interest rate environment and reduced client activity in a more difficul
Slide 22: Deutsche Asset Management
Deutsche Asset Management Income before income taxes Key features 684 In EUR m In EUR m 4Q16 vs. FY16 vs. Impairments 4Q16 4Q15 FY16 FY15 1,021 4Q15 FY15 266 173 216 Net revenues 799 870 (8)% 3,020 3,021 (0)% 142 162 171 103 Memo: Net revenues 1,021 712 742 (4)% 2,623 2,763 (5)% ex-Ab b ey gross-up
Slide 23: Postbank
Postbank Income before income taxes Key features In EUR m In EUR m 4Q16 4Q15 4Q16 vs. FY16 FY15 FY16 vs. 4Q15 FY15 367 Net revenues 824 615 34% 3,366 3,112 8% 179 Prov. for credit losses (63) (64) (1)% (184) (211) (13)% 113 122 Noninterest exp. (763) (863) (12)% (2,815) (5,497) (49)% 88 68 IBIT (2)
Slide 24: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 4Q16 4Q15 4Q16 vs. FY16 FY15 FY16 vs. 4Q15 FY15 Net revenues 142 (60) n.m. (382) 794 n.m. (317) (192) (533) (632) (538) Prov. for credit losses (31) (17) 80% (128) (51) 148% (870) (885) Noninterest exp. (1,618) (807)
Slide 25: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 4Q16 4Q15 4Q16 vs. FY16 FY15 FY16 vs. 4Q15 FY15 IBIT (425) (510) (17)% (541) (770) (30)% 413 thereof (1) 57 42 V&T differences (342) (167) 105% (252) (146) 72% (2) FVA 111 149 (25)% 71 72 (0)% (215) Postbank separa
Slide 26: Outlook
Outlook Whilst 2015 and 2016 were peak year for litigation, 2017 continues to be burdened by resolving legacy matters Adjusted Costs target 2018 of EUR <22bn expected to be achieved Provisions for credit losses expected to mildly improve in 2017 RWA expected to grow in Q1 2017 to support business gr
Slide 27: Appendix
Appendix Deutsche Bank 4Q2016 results 27 Investor Relations 02 February 2017
Slide 28: Appendix: Table of Contents
Appendix: Table of Contents P&L details 29 NCOU details 40 CRD4 – Leverage Exposure and Risk Weighted Assets 42 Loan book 44 Impaired loans 44 Value-at-Risk 45 Invested assets 46 Headcount 48 Deutsche Bank 4Q2016 results 28 Investor Relations 02 February 2017
Slide 29: Net revenues
Net revenues EUR bn 33.5 30.0 EUR 0.4 bn (2) 10.4 9.2 7.3 6.6 8.1 7.4 7.5 7.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY FY 2015 2016 2015 2016 Contribution to Group revenues ex Consolidation & Adjustments by business segment (1): GM 37% 36% 31% 23% 35% 33% 34% 20% 33% 30% CIB 22% 23% 27% 27% 23% 25% 25% 24% 24% 25
Slide 30: Provision for credit losses
Provision for credit losses EUR m 1,383 Cost of Risk(1) 128 Core NCOU 956 (1) (1) Cost of Risk DB Group Cost of Risk Core Bank 51 492 0.60% 380 327 31 1,255 17 304 259 17 0.40% 905 218 5 207 362 75 29 151 6 461 0.20% 310 230 254 189 145 208 0.00% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12M 12M 2015 2016 2015 2016 G
Slide 31: Key drivers of credit loss provisions in 2016
Key drivers of credit loss provisions in 2016 Industry and Regional Breakdown of EUR 1,383m CLPs, 31 Dec 2016 CLPs by major industries CLPs by major regions Other Other (2) 10 84 Rest of Postbank Germany 181 150 Shipping Rest of 346 EMEA (ex Germany) 259 Homogeneous (1) Steel, Metals EMEA 657 PWCC &
Slide 32: Group Shipping Loan Portfolio
Group Shipping Loan Portfolio Loan Portfolio Development (1) Credit Loss Provision In EUR bn In EUR m 5.9 5.3 346 168 124 30 FY 2015 FY 2016 4Q 2015 4Q 2016 FY 2015 FY 2016 — Portfolio well diversified by asset class (26% container, 21% bulker, 21% tanker, 7% ECA, 5% offshore, 20% other) and region
Slide 33: Reported and adjusted costs
Reported and adjusted costs Noninterest expenses, in EUR bn 38.7 Compensation and benefits 29.4 Noninterest expenses excl. compensation and benefits 25.4 17.6 13.2 8.7 7.8 9.0 7.2 9.0 9.9 6.7 6.5 5.2 4.4 5.9 6.2 13.3 11.9 4.0 3.8 3.7 3.4 3.4 3.3 3.1 3.2 3.0 2.9 2.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY FY 2015
Slide 34: Litigation update
Litigation update EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves(1) In USD bn Demands Reserves 7.6 2.4 5.9 2.2 1.6 0.8 0.3 0.1 30 Sep 2016 31 Dec 2016 30 Sep 2016 31 Dec 2016 30 Sep 2016 31 Dec 2016 — In 4Q2016, Deutsche Bank continued to — Includes possible o
Slide 35: 4Q2016: IBIT detail
4Q2016: IBIT detail 4Q16 (1) In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM (737) (249) (13) (183) 0 CIB 304 0 (18) (9) 0 PW&CC 701 0 (40) 32 0 AM (753) 0 (2) 1 (1,021) Postbank (2) 9 (26) (29) 0 C&A (425) 111 0 (49) 0 Core Bank (912) (128) (99) (238) (1,021) NCO
Slide 36: 4Q2015: IBIT detail
4Q2015: IBIT detail 4Q15 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM (954) (170) (63) (333) 0 CIB 310 0 (46) (3) 0 PW&CC (527) 0 (591) 1 (6) AM 173 0 (3) (0) 0 Postbank (312) 1 (84) (13) 0 C&A (510) 149 (1) (358) (0) Core Bank (1,819) (20) (788) (707) (6) NCOU
Slide 37: FY2016: IBIT detail
FY2016: IBIT detail FY2016 (1) In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM 16 (54) (191) (591) (285) CIB 1,691 0 (192) (17) 0 PW&CC 1,068 0 (177) 1 0 AM (204) 0 (69) 0 (1,021) Postbank 367 3 (29) (58) 0 C&A (541) 71 (1) 18 0 Core Bank 2,396 21 (658) (646) (1,3
Slide 38: FY2015: IBIT detail
FY2015: IBIT detail FY2015 In EUR m IBIT CVA / DVA / FVA Restructuring and severance Litigation Impairments GM (1,817) (130) (166) (2,603) (1,568) CIB 1,439 (1) (88) (329) (600) PW&CC (774) 0 (595) (41) (1,011) AM 684 0 (8) (1) 0 Postbank (2,596) 6 (83) (14) (2,597) C&A (770) 72 (0) (380) (0) Core B
Slide 39: Post-tax RoTE
Post-tax RoTE In EUR m, unless otherwise stated GM CIB PW&CC AM Postbank NCOU C&A Group 4Q16 4Q15 4Q16 4Q15 4Q16 4Q15 4Q16 4Q15 4Q16 4Q15 4Q16 4Q15 4Q16 4Q15 4Q16 4Q15 IBIT (737) (954) 304 310 701 (527) (753) 173 (2) (312) (1,504) (885) (425) (510) (2,416) (2,704) Taxes (1) (255) (338) 105 110 243 (
Slide 40: NCOU IBIT components
NCOU IBIT components EUR m Component FY2015 FY16 4Q2016 Future Outlook Portfolio revenues 509 392 79 De-risking IBIT(1) 412 (860) (21) MtM/Other (77) 46 23 — Minimal IBIT expected from Asset-driven LLPs (102) (39) 30 2017 onwards Costs (643) (566) (132) Total 99 (1,026) (21) Allocated costs (489) (4
Slide 41: NCOU: Residual assets to be transferred
NCOU: Residual assets to be transferred EUR bn, as of 31 December 2016 Total IFRS assets Total RWA RWA, fully-loaded C&A Operational CIB Operational Risk(1) 1.4 1.4 0.1 Risk(1) C&A 0.1 0.4 0.5 CIB PW&CC 1.9 Market 3.5 Risk PW&CC 2.8 GM 2.2 GM 5.2 Credit Risk 4.2 EUR 6 bn EUR 9 bn (1) Operational Ris
Slide 42: Leverage exposure and risk weighted assets
Leverage exposure and risk weighted assets CRD4, fully loaded, EUR bn Leverage Exposure vs. RWA(1) CRD4 – Leverage Exposure RWA 1,354 1,348 265 265 Non-derivative trading assets 171 64 64 169 37 Market Risk RWA 34 CVA 9 Derivatives(2) 225 215 40 Lending 411 403 118 250 Credit Risk RWA 222 Reverse re
Slide 43: Loan book
Loan book In EUR bn 434 430 433 433 429 433 428 413 GM 50 50 55 58 58 61 61 63 CIB 106 103 100 97 97 97 92 83 PW&CC 160 161 163 164 162 163 163 160 DAM 0 0 0 0 0 0 0 0 PB 104 104 104 104 104 105 105 105 NCOU 13 12 11 9 8 6 5 3 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 30-Sep 31-Dec 2015 2016 Note: L
Slide 44: Impaired loans
Impaired loans(1) Period-end, EUR bn Non-Core Operations Unit Core Impaired loan ratio Core Bank (3) Impaired loan ratio Deutsche Bank Group (3) 9.4 8.7 8.1 8.2 7.4 2.7 7.6 7.4 7.5 2.50% 2.5 2.2 2.1 1.1 0.8 1.6 1.3 2.00% 1.50% 6.7 6.2 6.0 6.1 6.4 6.7 1.00% 5.9 6.0 0.50% 0.00% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 45: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, EUR m Average VaR Stressed VaR(1) 180 EUR 1.8 bn Sales & Trading revenues EUR 1.8 bn 160 140 120 100 80 60 40 20 38 37 37 28 27 99 98 89 77 78 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 (1) Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses a histo
Slide 46: Invested Assets / Client Assets – PW&CC
Invested Assets / Client Assets – PW&CC EUR bn 3Q2016 decline includes PCS deconsolidation impact of EUR (37) bn (affects both PW&CC and WM). FY2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 Invested Assets 489 525 514 492 503 479 480 438 424 Assets under Administration (1) 138 153 154
Slide 47: Invested Assets / Client Assets – AM
Invested Assets / Client Assets – AM EUR bn 4Q2016 decline includes Abbey Life deconsolidation impact 1Q2015 2Q2015 3Q2015 4Q2015 FY2015 1Q2016 2Q2016 3Q2016 4Q2016 FY2016 Invested Assets 773 755 726 744 744 711 719 715 706 706 Assets under Administration (1) 54 53 51 54 54 57 63 65 68 68 Client Ass
Slide 48: Group headcount
Group headcount Full-time equivalents, at period end 31 Dec 2016 31 Dec 2015 31 Mar 2016 30 Jun 2016 30 Sep 2016 31 Dec 2016 vs. 30 Sep 2016 GM 4,921 4,789 4,676 4,754 4,737 (17) CIB 7,360 7,295 7,178 7,244 7,116 (128) PW&CC 25,670 25,616 25,497 25,005 24,514 (492) AM 2,705 2,673 2,597 2,606 2,547 (
Slide 49: 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