Slide 1: Deutsche Bank 2Q 2015 results
Deutsche Bank Deutsche Bank 2Q 2015 results 30 July 2015
Slide 2: Group financial highlights
Group financial highlights In EUR bn, unless otherwise stated Group 2Q2015 2Q2014 1H2015 1H2014 Income before income taxes 1.2 0.9 2.7 2.6 Net income 0.8 0.2 1.4 1.3 Diluted EPS (in EUR) 0.40 0.21 0.78 1.17 Profitability Post-tax return on average active equity 4.5% 1.6% 3.8% 4.7% Post-tax return on
Slide 3: Key messages
Key messages — Net income of EUR 0.8bn, up EUR 0.6bn vs. 2Q2014 Net — Good top line with growth across all businesses; net revenues up 17% (EUR 1.3bn) vs. income 2Q2014 — EUR 1.1bn increase of noninterest expenses vs. 2Q2014 — Cost base of EUR 7.8bn increased by EUR 0.6bn vs. 2Q2014 at constant FX r
Slide 4: Quarterly Net Income
Quarterly Net Income Net income 2Q2015 vs 2Q2014, in EUR m (106) 99 — 9% revenue increase (183) 262 primarily driven by CB&S and NCOU 818 (3) — Benign LLP environment 163 310 — 3% increase in adjusted cost 3 36 base as cost increases offset (703) OpEx saves and lower NCOU expenses 392 309 — Increase
Slide 5: First Half Net Income
First Half Net Income Net income 1H2015 vs 1H2014, in EUR m 128 (402) — 12% revenue increase 556 primarily driven by CB&S, Deutsche AWM and NCOU 528 — Benign LLP environment 365 73 (2,251) — 3% increase in adjusted cost 22 base as regulatory spend 512 101 1,377 1,341 (including full-year 2015 33 BRR
Slide 6: Noninterest expenses
Noninterest expenses 2Q2015 vs. 2Q2014, in EUR bn CIR: CIR: 85.2% 85.0% — Cost increase of EUR 1.1bn despite OpEx Not included in adjusted cost base Part of adjusted cost base 0.5 7.8 savings and deconsolidation effects within NCOU 0.1 0.5 7.3 0.4 — Two main drivers for cost increase: (0.3) 0.4 — Li
Slide 7: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves (1) In USD Demands Reserves 4.8 3.2 3.2 4.8 3.8 2.6 0.4 0.5 31 Mar 2015 30 Jun 2015 31 Mar 2015 30 Jun 2015 31 Mar 2015 30 Jun 2015 — Significant uncertainty as to the — Includes possible obli
Slide 8: Litigation: Status update on selected cases
Litigation: Status update on selected cases Kirch All legal disputes between DB and Kirch Group settled in February 2014 with a payment of EUR 0.8 bn Settlement on EC IBOR in December 2013 (EUR 0.7bn); settlement of investigations with US and UK regulators IBOR over interbank offered rates benchmark
Slide 9: Tier 1 capital
Tier 1 capital CRD4, fully loaded Tier 1 capital Events in the quarter Common Equity Tier 1 In EUR bn Additional Tier 1 capital — CET 1 capital flat except for FX reductions — 2Q15 net income materially offset by dividend accrual 4.7 0.8 4.6 required per ECB decision (1H15 accrual in line with 0.2 a
Slide 10: Risk weighted assets
Risk weighted assets In EUR bn 11.1% CET 1 ratio, fully loaded 11.4% Events in the quarter 431 RWA reduction key driver of ~30bps CET 1 ratio increase: (1) 5 — Market risk RWA down due reduction of securitisation (4) 416 inventory, reduced default exposure and overall lower risk (10) (5) levels — FX
Slide 11: Leverage exposure
Leverage exposure CRD4 Leverage exposure development, in EUR bn 3.4% CRD4 Leverage ratio, fully loaded 3.6% Events in the quarter 1,549 — ~20bps leverage ratio increase driven by strong de- 0 levering of derivative portfolio through (54) — trade novations, (6) 0 2 (29) 1,461 — reduction of client pe
Slide 12: Segment results
Segment results Deutsche Bank 2Q2015 results financial transparency. 12 Investor Relations 30 July 2015
Slide 13: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m In EUR m 2Q15 vs. 1H15 vs. 2Q15 2Q14 1H15 1H14 2Q14 1H14 Net Revenues (1) 4,313 3,509 23% 8,967 7,549 19% 2,265 Prov. for credit 1,842 (57) (44) 28% (93) (60) 56% losses 1,438 Noninterest exp. (3,035) (2,636) 15% (6,994)
Slide 14: Sales & Trading revenues
Sales & Trading revenues Revenues Key revenue features Debt S&T, in EUR m 4,752 Debt Sales & Trading revenues 4,259 — FX significantly higher y-o-y driven by increased market volatility — Rates higher y-o-y reflecting increased client activity, notably in 2,435 2,642 2,110 Europe 1,824 1,435 1,147 —
Slide 15: Origination & Advisory
Origination & Advisory Revenues Key revenue features In EUR m Advisory Overall Origination — 2Q2015 up 6% y-o-y as higher revenues in DCM and Advisory 1,637 were offset by lower ECM revenues 1,436 290 — Highest quarterly revenues since 4Q2008 237 Advisory — 2Q2015 higher y-o-y primarily driven by fa
Slide 16: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m Charges from loan processing fees In EUR m 2Q15 vs. 1H15 vs. 1,019 2Q15 2Q14 1H15 1H14 2Q14 1H14 854 Net Revenues 2,358 2,353 0% 4,828 4,801 1% 32 Prov. for credit (100) (145) (31)% (235) (285) (18)% losses Noninterest exp.
Slide 17: Private & Business Clients: Profit by business unit
Private & Business Clients: Profit by business unit Income before income taxes, in EUR m Cost-to-Achieve (1) Loan processing fees Private & Commercial Banking Postbank (2) (DB View) Advisory Banking International 48 17 5 5 18 19 14 9 14 62 17 6 70 5 17 18 21 27 41 202 211 119 206 206 224 70 124 137
Slide 18: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m In EUR m 2Q15 vs. 1H15 vs. 692 2Q15 2Q14 1H15 1H14 2Q14 1H14 578 Net Revenues 1,144 1,029 11% 2,277 2,048 11% Prov. for credit 12 (47) n.m. (2) (71) (97)% losses 409 Noninterest exp. (874) (761) 15% (1,583) (1,399) 13% 357 3
Slide 19: Deutsche Asset & Wealth Management
Deutsche Asset & Wealth Management Income before income taxes Key features Impairment/recovery of goodwill and In EUR m 2Q15 vs. 1H15 vs. In EUR m other intangible assets 713 2Q15 2Q14 1H15 1H14 2Q14 1H14 Net Revenues 1,415 1,133 25% 2,794 2,198 27% Prov. for credit (1) 6 n.m. (4) 7 n.m. losses 422
Slide 20: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 2Q15 vs. 1H15 vs. 2Q15 2Q14 1H15 1H14 2Q14 1H14 Net Revenues 201 (53) n.m. 537 9 n.m. Prov. for credit (381) (5) (19) (72)% (33) (86) (62)% losses (543) (590) (709) Noninterest exp. (1,104) (518) 113% (1,794) (1,056)
Slide 21: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 2Q15 vs. 1H15 vs. 2Q15 2Q14 1H15 1H14 61 2Q14 1H14 25 IBIT (250) (124) 101% (268) (337) (20)% (18) thereof V&T differences (1) (156) (12) n.m. 168 (146) n.m. (2) (124) FVA (109) (26) n.m. (108) (120) (10)% Bank lev
Slide 22: Appendix
Appendix Deutsche Bank 2Q2015 results financial transparency. 22 Investor Relations 30 July 2015
Slide 23: Appendix: Table of Contents
Appendix: Table of Contents P&L Details 23 NCOU Details 34 CRD4 – Leverage Exposure and risk weighted assets 37 Loan book 38 Impaired loans 40 Value-at-Risk 41 Funding 42 Number of shares 43 Invested assets 44 Group headcount 47 Deutsche Bank 2Q2015 results financial transparency. 23 Investor Relati
Slide 24: Net revenues
Net revenues In EUR bn EUR 1.3 19.6 bn (2) 16.3 10.4 8.4 9.2 7.9 7.9 7.8 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2014 2015 2014 2015 (1) Contribution to Group revenues ex Consolidation & Adjustments by business segment : CB&S 47% 44% 40% 38% 47% 46% 45% 46% PBC 28% 30% 30% 31% 25% 25% 29% 25% GTB 12% 13% 13% 13% 11
Slide 25: Provision for credit losses
Provision for credit losses In EUR m Cost of Risk (1) Non-Core Operations Unit Core Bank Cost of Risk DB Group (1) Cost of Risk Core Bank (1) 496 0.300 30bps 86 369 369 25bps 0.250 33 20bps 0.200 269 246 250 131 218 410 15bps 0.150 19 42 67 28 151 10bps 0.100 336 5 230 227 237 5bps 0.050 179 190 146
Slide 26: Reported and adjusted costs
Reported and adjusted costs Noninterest expenses, in EUR bn Non-Compensation and benefits 16.5 Compensation and benefits 13.2 8.7 9.6 6.7 7.3 7.2 7.8 6.8 6.5 3.1 4.1 4.2 5.2 4.4 3.7 6.3 6.9 3.3 3.0 3.2 3.0 3.4 3.4 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2014 2015 2014 2015 Adj. cost base (in EUR m) 5,992 5,723 6,04
Slide 27: Adjusted Cost Base and OpEx development
Adjusted Cost Base and OpEx development In EUR bn 2Q2015 vs. 2Q2014 OpEx program to date 1H 2015 6.3 Invested/ 2012-14 achieved 0.4 4.5 0.5 4.0 5.7 0.4 (0.3) Compensation 0.6 <0.1 0.3 Non Compensation(1) 3.9 3.3 3.3 2.9 Adj.Cost Base OpEx Savings Further FX effect Adj.Cost Base Cumulative Cumulative
Slide 28: Profitability
Profitability Income before income taxes Net income In EUR bn In EUR bn 2.6 2.7 1.7 1.5 1.3 1.4 1.2 0.9 1.1 0.8 0.4 0.6 0.3 0.3 0.2 (0.1) 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 1Q 2Q 3Q 4Q 1Q 2Q 1H 1H 2014 2015 2014 2015 2014 2015 2014 2015 (1) Effective tax rate Post-tax return on equity (1) (2) 34% 74% 134% (75)
Slide 29: 2Q 2015: IBIT detail
2Q 2015: IBIT detail 2Q2015 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 1,200 (61) (266) 213 (24) 1,338 PBC 483 (37) (0) 0 (3) 524 GTB 283 (17) (139) 0 1 437 AWM 422 (28) (25) 0 (2) 477 C&A (250) 4 (0) (109) (13) (132) Core Bank 2,137 (139) (430) 104 (42) 2,644
Slide 30: 2Q 2014: IBIT detail
2Q 2014: IBIT detail 2Q2014 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 828 (161) (259) (111) (5) 1,363 PBC 379 (94) (0) 0 (2) 475 GTB 221 (32) (100) 0 (2) 355 AWM 204 (82) (10) 0 (1) 297 C&A (124) 1 (6) (26) (5) (89) Core Bank 1,507 (368) (375) (137) (15) 2,402
Slide 31: 1H 2015: IBIT detail
1H 2015: IBIT detail 30 Jun 2015 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 1,842 (131) (1,427) (12) (48) 3,461 PBC 1,019 (122) (1) 0 (4) 1,146 GTB 692 (29) (139) 0 (0) 859 AWM 713 (66) (26) 0 (4) 809 C&A (268) 3 (1) (108) (18) (144) Core Bank 3,998 (345) (1,59
Slide 32: 1H 2014: IBIT detail
1H 2014: IBIT detail 30 Jun 2014 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 2,265 (271) (240) (108) (17) 2,902 PBC 854 (201) (0) 0 (6) 1,061 GTB 578 (51) (98) 0 (3) 730 AWM 371 (137) (23) 0 (5) 536 C&A (337) (4) (7) (120) (11) (194) Core Bank 3,730 (665) (369)
Slide 33: NCOU IBIT components
NCOU IBIT components IBIT in EUR m, Assets and RWA data as of 30 June 2015 Component FY2014 2Q15 1H2015 Comments/Outlook Portfolio Revenues 994 142 282 De-risking IBIT 179 94 205 — Net IBIT impact to MtM/Other (885) 12 169 decrease with lower Asset Driven LLPs (1) (301) (29) (71) LLP’s / MtM volatil
Slide 34: NCOU: De-risking Milestones
NCOU: De-risking Milestones Since June 2012 Size of Non-Core Operations Unit — Regulatory capital generation of EUR 6.4 bn has IFRS assets, in EUR bn contributed a CET1 ratio benefit(1) of ~149 bps (75)% — CRD4 leverage exposure reduced by EUR ~165 bn since ~140 June 2012 — IFRS Assets reduced by EU
Slide 35: NCOU: Asset Composition
NCOU: Asset Composition Total IFRS assets Total IFRS assets In EUR bn, as of 31 March 2015 In EUR bn, as of 30 June 2015 AWM SCG AWM SCG IAS 39 IAS 39 0.9 0.4 reclassified assets Corporate reclassified assets Corporate 0.9 0.2 7.3 Investments 6.4 Investments 5.8 5.4 PBC: Other (1) 1.6 Other loans (2
Slide 36: CRD4 – Leverage Exposure and risk weighted assets
CRD4 – Leverage Exposure and risk weighted assets Leverage Exposure vs. RWA(1) In EUR bn CRD4 – Leverage Exposure RWA 1,445 1,461 335 335 Non-derivative trading assets 196 64 64 206 Market Risk RWA 62 66 CVA 19 Derivatives(2) 358 307 59 425 Lending 406 250 126 Reverse repo / Credit Risk RWA 255 secu
Slide 37: Loan book
Loan book In EUR bn 434 430 401 411 18 386 393 17 19 18 43 NCOU 21 44 22 37 39 33 34 DeAWM 216 216 214 215 PBC 213 213 77 84 81 GTB 76 77 77 CB&S 48 53 62 72 72 42 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 2014 2015 Germany excl. Financial Institutions and Public Sector: 186 185 184 184 185 189 Note
Slide 38: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR m, as of 30 Jun 2015 Composition of loan book and provisions by category Jun 30, 2015 2Q2015 Non-Core Provision for In EUR m Core Bank Operations Unit Total credit losses Further details PBC Mortgages 152,981 6,376 159,357 low loan to value
Slide 39: Impaired loans
Impaired loans(1) Period-end, in EUR bn Core Bank Non-Core Operations Unit Impaired loan ratio Deutsche Bank Group(3) (3) (2) Impaired loan ratio Core Bank(3) 12.0 3.10% 10.3 10.0 9.5 9.3 9.3 10.0 8.7 2.60% 3.3 3.3 2.9 8.0 2.8 2.10% 2.6 2.4 6.0 1.60% 4.0 1.10% 6.9 6.8 6.7 6.5 6.6 6.2 2.0 0.60% - 0.1
Slide 40: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, in EUR m Average VaR Stressed VaR(1) 180 EUR 2.5 bn Sales & Trading revenues EUR 3.1 bn 160 140 120 100 80 60 40 20 56 50 46 50 46 105 108 111 109 102 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 (1) Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses
Slide 41: Funding activities and profile
Funding activities and profile Funding cost and volume development Funding profile well diversified Issuance, in EUR bn As of 30 June 2015 DB issuance spread, 4 week moving average, in bps (1) Secured Financing 200 Funding and Vehicles, 1% Shorts, 10% 180 75% from most stable 17 Unsecured funding so
Slide 42: Number of shares
Number of shares In million Average used for EPS calculation End of period numbers 31 Dec 31 Dec 30 Jun FY2013 FY2014 2Q2015 2013 2014 2015 (1) Common shares issued 1,037 1,236 1,379 1,069 1,379 1,379 Total shares in treasury (1) (2) (2) 0 - 0 0 Common shares outstanding 1,034 1,234 1,379 1,069 1,37
Slide 43: Regional invested assets – Deutsche AWM
Regional invested assets – Deutsche AWM In EUR bn 30 Jun 2015 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 30 Jun 2015 vs. 31 Mar 2015 Americas 265 262 282 297 338 327 (11) Asia-Pacific 70 75 85 86 97 96 (1) EMEA (ex Germany) 250 262 272 280 315 292 (23) Germany 349 355 366 376 409 42
Slide 44: Client view invested assets – Deutsche AWM
Client view invested assets – Deutsche AWM In EUR bn 30 Jun 2015 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 30 Jun 2015 vs. 31 Mar 2015 Retail 244 255 267 272 310 338 29 Institutional 403 406 432 449 495 445 (50) Private Clients 287 294 307 317 354 351 (3) AWM 934 955 1,006 1,039 1,
Slide 45: Invested assets – PBC
Invested assets – PBC In EUR bn 30 Jun 2015 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 30 Jun 2015 vs. 31 Mar 2015 Private & Business Clients 284 286 289 291 303 295 (8) Investment & Insurance Products 149 153 154 156 167 161 (6) Deposits excl. Sight Deposits 135 133 135 136 135 133
Slide 46: Group headcount
Group headcount Full-time equivalents, at period end 30 Jun 2015 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 30 Jun 2015 vs. 31 Mar 2015 CB&S 8,211 8,113 8,384 8,204 8,027 7,895 (132) PBC 38,220 38,214 38,398 38,061 38,348 38,279 (69) GTB 4,084 4,036 4,132 4,146 4,123 4,109 (14) AWM
Slide 47: 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