Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (May 2016)
23 slides from Deutsche Bank's debt investor presentation, May 4, 2016
Slide 1: Fixed income investor conference call
Deutsche Bank Fixed income investor conference call Marcus Schenck, Chief Financial Officer Alexander von zur Mühlen, Group Treasurer 4 May 2016
Slide 2: Agenda
Agenda 1 1Q16 results update 2 Funding and Liquidity update 3 Appendix Deutsche Bank financial transparency. 1 Investor Relations
Slide 3: Group financial highlights
Group financial highlights In EUR bn, unless otherwise stated 1Q2016 vs. 1Q2016 vs. 1Q2016 1Q2015 4Q2015 1Q2015 4Q2015 Net Revenues 8.1 10.4 6.6 (22)% 21% Provision for credit losses (0.3) (0.2) (0.4) 40% (20)% Noninterest expenses (7.2) (8.7) (9.0) (17)% (20)% (1) (6.7) therein: Adjusted Costs (1)
Slide 4: 1Q 2016 segment performance
1Q 2016 segment performance In EUR bn, unless otherwise stated Revenues IBIT Drivers — Reported revenues down 23% year-over-year Global Markets 2.8 0.4 — 20-25% of year-over-year revenue decline driven by DB’s intentional decisions Corporate & — Revenues down 15% year-over-year Investment 1.8 0.3 —
Slide 5: Costs
Costs In EUR bn Noninterest expenses Key facts(4) 8.7 — Noninterest expenses in 1Q2016 were EUR 1.3bn lower 8.5 than 1Q2015 Impairments/ 0.2 0.1 Policyholder — Litigation down EUR 1.2bn, 1Q2016 resolutions of Benefits and Claims(1) 1.5 1.4 7.2 litigation matters were materially covered by existing L
Slide 6: Tier 1 capital
Tier 1 capital CRD4, fully loaded in EUR bn Tier 1 capital Events in the quarter Common Equity Tier 1 — CET1 capital down by EUR (0.7)bn on FX-neutral Additional Tier 1 capital basis 4.6 4.6 — EUR 0.2bn net income offset by 0.2 — EUR (0.1)bn AT1 coupon accrual 44.1 (0.1) — EUR (0.3)bn from equity co
Slide 7: RWA and Leverage Exposure
RWA and Leverage Exposure In EUR bn CET1 capital (fully loaded) Events in the quarter 11.1% CET 1 ratio, fully loaded 10.7% — RWA up by EUR 4.1bn, predominantly driven by EUR 8 7.8bn higher OR RWA given recent internal and industry losses and settlements 3 401 397 0 0 (6) — Higher CR RWA from exposu
Slide 8: Relatively small exposure to 'focus industries'
Relatively small exposure to ‘focus industries’ As of 31 March 2016 Gross drawn loan exposure Oil & Gas: ~ EUR 7bn loan exposure — 50% to IG borrowers (mainly oil majors and national oil & gas companies) — <25% to higher risk; sub-investment grade exploration & production Retail Corporates EUR 188bn
Slide 9: Progress & Outlook 2016
Progress & Outlook 2016 Progress Outlook NCOU wind down on track – EUR <10bn RWA by year Challenging revenue environment end 2016 peak restructuring year Sale of Maher Port announced Restructuring and severance costs of EUR ~0.5 – 0.7bn Red Rock Resorts IPO priced in remainder of 2016 at current FX
Slide 10: Agenda
Agenda 1 1Q16 results update 2 Funding and Liquidity update 3 Appendix Deutsche Bank financial transparency. 9 Investor Relations
Slide 11: Current capital ratios exceed regulatory requirements
Current capital ratios exceed regulatory requirements As of 31 March 2016 Phase-in capital ratios Key issues CET1 requirement AT1 requirement Tier 2 requirement Full compliance with 2016 Pillar 1(1) and Pillar 2(2) Pillar 1 Pillar 2 phase-in minimum capital requirements CET1 ratio 639bps above Pilla
Slide 12: Healthy liquidity position maintained in 1Q16
Healthy liquidity position maintained in 1Q16 Liquidity Coverage Ratio (LCR) Drivers 119% 119% 119% Liquidity Coverage Ratio remained well above EUR 31bn 100% throughout 1Q16 surplus above Excess liquidity supported EUR and USD bond 100% tenders in February ~50% of liquidity reserves in cash The ban
Slide 13: Robust external funding profile
Robust external funding profile As of 31 March 2016, in EUR bn Funding profile well diversified Funding cost and volume development Financing 300 DB issuance spread, 4 week moving average, in bps(2) Vehicles, 0% Secured DB 5yr EUR-CDS in bps Funding and Shorts, 14% 71% from 250 16 17 Capital most st
Slide 14: Funding plan of up to EUR 35bn
Funding plan of up to EUR 35bn In EUR bn Maturity profile(1) 2016 Funding plan Scheduled maturities ~35 Senior public benchmark(2) 8-11 Funding Plan 35% Senior private placement(2) 4 complete 22.3 19.9 20.8 21.2 16.4 Senior structured 15 15 12.3 14.3 13.2 11.7 4.9 Covered bonds 2.4 3-5 3.5 Capital i
Slide 15: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) DB has no new issuance needed to meet TLAC requirements 2019 Transitional TLAC availability and requirements(1) EUR 109bn EUR 82bn EUR 83bn G-SIB buffer 2.0% Plain-vanilla Capital Conservation buffer 2.5% 51bn senior debt(2) DB has EUR Additional ~25bn of TLAC 8%
Slide 16: Rating methodologies increasingly reflect new resolution regime
Rating methodologies increasingly reflect new resolution regime and therefore require more differentiation Loss participation Deposits / only if other Derivatives / Under A2(cr)(1) N/A AA(low) sources Swaps discussion(2) exhausted Counterparties Senior unsecured Baa1 BBB+ A- A Tier 2 Ba1 BB+ BBB+ -
Slide 17: Summary
Summary Resilience of Deutsche Bank’s funding and liquidity shown during 1Q16 market turbulence Strong liquidity position allowed Bank to execute bond tender Capital ratios in excess of regulatory minima today and well positioned to meet future requirements Strong liquidity: EUR 213bn of liquidity r
Slide 18: Agenda
Agenda 1 1Q16 results update 2 Funding and Liquidity update 3 Appendix Deutsche Bank financial transparency. 17 Investor Relations
Slide 19: AT1 and Trust Preferred Securities instruments
AT1 and Trust Preferred Securities instruments(1) EUR6 bn of capital instruments called since January 2015 Original Regulatory Nominal Next call Subsequent call Issuer ISIN Coupon issuance Call date treatment outstanding date period date Capital Funding Trust VI Legacy Tier 1 DE000A0DTY34 5.956% EUR
Slide 20: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves(1) In USD bn Demands 5.5 5.4 Reserves 2.4 2.4 2.4 2.1 0.3 0.3 31 Dec 2015 31 Mar 2016 31 Dec 2015 31 Mar 2016 31 Dec 2015 31 Mar 2016 — Settlements and resolutions have been — Includes possibl
Slide 21: Current credit ratings profile
Current credit ratings profile As of 3 May 2016 Counterparty Risk Assessment A2(cr)(RuR) - - AA (low)(RuR) Deposits A2(RuR) - - - Short term senior debt P-1(RuR) A2 F1 R-1(low) Senior unsecured debt Baa1(RuR) BBB+(stable) A- (stable) A(RuR) Stand-alone rating(1) baa3(RuR) bbb a- a Tier 2 Ba1(RuR) BB
Slide 22: Rating landscape – senior unsecured and short-term ratings
Rating landscape – senior unsecured and short-term ratings Deutsche Bank’s senior unsecured ratings are broadly in-line with U.S. holding companies peers reflecting German bail-in law treatment of senior unsecured debt Moody‘s S&P Operating company Holding company Rating scale EU Peers Swiss Peers U
Slide 23: 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
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