Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2020)
17 slides from Deutsche Bank's investor day presentation, Dec 9, 2020
Slide 1: Investor Deep Dive
Investor Deep Dive Stuart Lewis Chief Risk Officer 9 December 2020 Deutsche Bank
Slide 2: Summary
Summary Active and disciplined risk management framework provides the foundation for managing through stress Resilient loan portfolios reflecting conservative underwriting framework Market and liquidity risks actively managed and tightly controlled Continue to invest in systems and processes to enha
Slide 3: Low risk and conservatively managed balance sheet
Low risk and conservatively managed balance sheet Q4 2019 Q3 2020 Common Equity Tier 1 capital ratio 13.6% 13.3% Provision for credit losses as % of loans(1) 17bps 47bps Average Value-at-Risk(2) € 25m € 42m Most Stable Funding(3) 83% 81% Liquidity Reserves € 222bn € 253bn (1) Year-to-date provision
Slide 4: Disciplined risk management framework
Disciplined risk management framework Active and conservative risk framework provides the basis for managing through stress — Group risk appetite calibrated to earnings capacity, capital adequacy, operational stability and culture. Appetite cascaded down to businesses — >400k credit and market risk
Slide 5: Proactive crisis management through COVID-19
Proactive crisis management through COVID-19 Risk appetite adjustments Selected other actions Scenario analysis and stress test Risk appetite 90 adjustments incl >1,500 3.0 market risk limits COVID-19 cases VIX Crisis mgmt New global COVID-19 cases (5 day moving total, m) 80 re-invoked Early, Pre- C
Slide 6: Investments have further strengthened our foundations
Investments have further strengthened our foundations ~€ 1.2bn investments in technology across Risk, Anti Financial Crime and Compliance in 2017 – 2020 Credit Risk Market Risk Liquidity Risk AFC / Compliance Climate / ESG — Introduced — Full revaluation VaR — New front-to-back — Improved control —
Slide 7: Conservative loan portfolio
Conservative loan portfolio Loans at amortized cost gross of allowances for loan losses (€ 433bn as of 30 Sep 2020) ~75% in lower risk Private Bank ~15% exposure to ~50% in Germany and Corporate Bank focus portfolios Commercial Other Other Investment Other Asia Real Estate focus 3% Bank 2% 7% portfo
Slide 8: CRE: high quality portfolio, challenging conditions
CRE: high quality portfolio, challenging conditions Commercial Real Estate portfolio Loans at amortized cost (as of 30 Sep 2020, total € 433bn) — Investment Bank: office (€ 7bn, 59% WALTV(1)), residential (€ 4bn, 63% WALTV(1)), mixed use & industrial (€ 5bn, <60% CRE 7% Lower risk WALTV(1)) exposure
Slide 9: Other focus portfolios: continue to perform resiliently
Other focus portfolios: continue to perform resiliently Loans at amortized cost (as of 30 Sep 2020, total € 433 bn) — Values impacted by severe stress on lessors, airlines & financiers — Largely secured by core aircraft. Well positioned for reduction of Aviation fleets and faster recovery versus oth
Slide 10: Provisions for credit losses in line with expectations
Provisions for credit losses in line with expectations Net provisions for credit losses, in bps Gross charge-offs as % of gross credit loss provisions 54 28 22 33 13 13 17 41(1) 25-30 97% 98% 96% Average 82% 77% 78% 2.1 1.8 1.4 26% (2) 1.1 1.0 0.7 0.5 0.5 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 11: Market and liquidity risk actively managed in the crisis
Market and liquidity risk actively managed in the crisis Disciplined risk taking supported trading performance 90 12% — Lower market risk stress loss utilisation driven by derisking and pre-emptive hedging going 80 10% into COVID-19 crisis 8% — Proactive market risk hedges provided effective 70 6% m
Slide 12: Non-financial risk
Non-financial risk 9M 2020, in € bn Internal Losses 5.8 Non-legal — COVID-19 stretched the control Legal environment for non-standard, manual 3.4 process management during a period of 3.1 significant market volatility 2.4 — Supported by improved control 0.7 environment, no material operational 0.3 0
Slide 13: Risk outlook: challenging, but we are well prepared
Risk outlook: challenging, but we are well prepared — Defaults to remain elevated versus pre COVID-19 levels as Government support Credit outlook measures are scaled back even if a vaccine is widely rolled out — Focus sectors likely to be impacted by COVID-19 driven structural changes — Lower for lo
Slide 14: Conclusion
Conclusion Active, disciplined risk management framework is the foundation for managing through stress Robust control framework proving effective through the crisis Significant control enhancements across risk types Continue to invest in anti-financial crime capabilities Capital and liquidity buffer
Slide 15: Appendix
Deutsche Bank Appendix
Slide 16: Speaker biography – Stuart Lewis
Speaker biography – Stuart Lewis Stuart Wilson Lewis became a member of our Management Board on June 1, 2012 and is our Chief Risk Officer. On July 7, 2019 he assumed responsibility for Compliance, Anti-Financial Crime and the Business Selection and Conflicts Office. He joined Deutsche Bank in 1996.
Slide 17: Cautionary statements
Cautionary statements Non-IFRS Financial Measures This document contains non-IFRS financial measures. For a reconciliation to directly comparable figures reported under IFRS, to the extent such reconciliation not provided herein, please refer to the Financial Data Supplement which can be downloaded