Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Q1 2015 Earnings Presentation
44 slides from Deutsche Bank's earnings presentation, Apr 26, 2015
Slide 1: Deutsche Bank 1Q 2015 results
Deutsche Bank Deutsche Bank 1Q 2015 results 26 April 2015
Slide 2: Key Group financial highlights
Key Group financial highlights In EUR bn, unless otherwise stated Group Core Bank (1) 1Q2015 1Q2014 1Q2015 1Q2014 Income before income taxes 1.5 1.7 1.9 2.2 Net income 0.6 1.1 n.a. n.a. Diluted EPS (in EUR) 0.38 0.98 n.a. n.a. Post-tax return on average active equity 3.1% 8.0% 5.1% 12.3% Profitabili
Slide 3: Agenda
Agenda 1 Key current themes Capital / Leverage Costs Litigation 2 Group results 3 Segment results Deutsche Bank 1Q2015 results financial transparency. 3 Investor Relations 26 April 2015
Slide 4: Capital: Common Equity Tier 1 development
Capital: Common Equity Tier 1 development CRD4, fully loaded Common Equity Tier 1 capital Events in the quarter In EUR bn ECB decision on recognition of interim profits 11.7% 11.1% requires dividend accrual based on the highest of: 1.9 47.8 (a) the bank’s internal dividend policy 0.5 (b) previous ye
Slide 5: Capital: RWA development
Capital: RWA development CRD4, fully loaded RWA Events in the quarter In EUR bn — Business growth in credit and market risk 18.2 431.4 — Market risk RWA also impacted by methodology changes (EUR 3.2 bn) 8.4 6.3 — Further increase in Operational Risk RWA given 4.6 394.0 recognition of external losses
Slide 6: Leverage ratio: Strong ratio despite FX headwinds
Leverage ratio: Strong ratio despite FX headwinds CRD4, fully-loaded 1Q 2015 Events in the quarter CRD4 FX Movements x% Leverage ratio, Exposure (net of FX) fully loaded — Almost all of the 1Q2015 increase in Leverage Exposure is explained by FX movements 3.5% 3.4% FX neutral EUR 3bn 1,549 (15) (1)
Slide 7: Costs: Operating Cost and OpEx Development
Costs: Operating Cost and OpEx Development In EUR bn 1Q2015 vs. 1Q2014 OpEx program to date 1Q 2015 In EUR bn Invested/ Further strengthening 2012-14 achieved of control functions Target and regulatory 4.5 framework 6.7 4.0 6.0 0.5 (0.3) 0.1 (0.1) 0.5 0.3 0.2 1Q2015 reflects full year 2015 BRRD bank
Slide 8: Litigation: Update
Litigation: Update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves (1) In USD Demands Reserves 4.8 3.2 4.8 4.8 3.2 1.9 0.5 0.4 31 Dec 2014 31 Mar 2015 31 Dec 2014 31 Mar 2015 31 Dec 2014 31 Mar 2015 — There continues to be significant — Includes possible obl
Slide 9: Agenda: Group results
Agenda 1 Key current themes 2 Group results 3 Segment results Deutsche Bank 1Q2015 results financial transparency. 9 Investor Relations 26 April 2015
Slide 10: Net revenues
Net revenues In EUR bn EUR 2 bn(2) 10.4 8.4 7.9 7.9 7.8 1Q 2Q 3Q 4Q 1Q 2014 2015 (1) Contribution to Group revenues ex Consolidation & Adjustments by business segment : CB&S 47% 44% 40% 38% 47% PBC 28% 30% 30% 31% 25% GTB 12% 13% 13% 13% 11% AWM 12% 14% 16% 16% 14% NCOU 1% (1)% 0% 2% 3% (1) Figures
Slide 11: Cost: Reported and adjusted
Cost: Reported and adjusted In EUR bn Non-Compensation and benefits Compensation and benefits 8.7 6.7 7.3 7.2 6.5 5.2 3.1 3.7 4.1 4.2 3.3 3.0 3.2 3.0 3.4 1Q 2Q 3Q 4Q 1Q 2014 2015 Adj. cost base (in EUR m) 5,992 5,723 6,043 6,010 6,699 excludes: Cost-to-Achieve 310 375 253 362 208 Litigation 0 470 89
Slide 12: Provision for credit losses
Provision for credit losses In EUR m Cost of Risk (1) (1) (1) Core Bank Non-Core Operations Unit Cost of Risk Deutsche Bank Group(1) Cost of Risk Core Bank(1) 400 369 0.40% 350 300 269 131 246 250 218 0.30% 250 19 42 200 67 28 150 237 0.20% 100 230 227 179 190 50 0 0.10% 1Q 2Q 3Q 4Q 1Q 2014 2015 0 C
Slide 13: Profitability
Profitability Income before income taxes Net income In EUR bn In EUR bn 1.7 1.5 0.9 1.1 0.6 0.3 0.4 0.3 0.2 (0.1) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2014 2015 2014 2015 (2) (1) Effective tax rate (1) Post-tax return on equity 34% 74% 134% (75)% 62% 8% 2% (1)% 3% 3% FY2014: 45.7% FY2015: 1.7% FY2014: 2.7%
Slide 14: 1Q2015 Core Bank adjusted IBIT
1Q2015 Core Bank adjusted IBIT In EUR bn 1Q2015 Group reported IBIT to Core Bank adjusted IBIT: EUR (4) EUR 2.0 bn 0.9 bn 0.2 3.5 0.2 1.2 2.6 0.4 1.9 1.5 (1) 1Q2015 NCOU Core Bank Litigation Investing in our CVA / DVA / 1Q2015 1Q2014 (2) (3) Group reported reported IBIT platform FVA Core Bank Core B
Slide 15: Agenda: Segment results
Agenda 1 Key current themes 2 Group results 3 Segment results Deutsche Bank 1Q2015 results financial transparency. 15 Investor Relations 26 April 2015
Slide 16: Corporate Banking & Securities
Corporate Banking & Securities Income before income taxes Key features In EUR m Litigation charges In EUR m 1Q15 vs. 1Q15 vs. 1Q15 1Q14 4Q14 1Q14 4Q14 Revenues(1) 4,654 4,042 2,965 15% 57 % Prov. for credit (37) (16) (9) 137% n.m. 1,439 losses Noninterest exp. (3,959) (2,566) (2,628) 54% 51% 826 1,1
Slide 17: Sales & Trading revenues
Sales & Trading revenues Revenues Key features Debt S&T, in EUR m Debt Sales & Trading 2,643 — FX revenues significantly higher y-o-y reflecting higher market 2,435 volatility 1,824 1,435 — Rates revenues significantly higher y-o-y notably in Europe 1,147 driven by increased client activity — Global
Slide 18: Origination & Advisory
Origination & Advisory Revenues Key features In EUR m Advisory Overall Origination — 1Q 2015 revenues up 26% y-o-y with higher revenues across ECM, DCM and Advisory — 2nd highest quarterly revenues since 4Q 2010 812 784 740 — 1Q 2015 saw a very active M&A and capital markets 130 691 environment 625
Slide 19: Private & Business Clients
Private & Business Clients Income before income taxes Key features In EUR m Charges from loan processing fees In EUR m 1Q15 vs. 1Q15 vs. 1Q15 1Q14 4Q14 1Q14 4Q14 536 Revenues 2,471 2,452 2,390 1% 3% 475 Prov. for credit (135) (140) (187) (4)% (28)% losses 32 Noninterest exp. (1,801) (1,836) (2,190)
Slide 20: 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 18 19 14 14 17 9 62 17 6 70 18 41 21 211 199 119 207 208 169 149 162 175 70 121
Slide 21: Global Transaction Banking
Global Transaction Banking Income before income taxes Key features In EUR m In EUR m 1Q15 vs. 1Q15 vs. 1Q15 1Q14 4Q14 1Q14 4Q14 Revenues 1,133 1,018 1,039 11% 9% 409 Prov. for credit 357 329 losses (15) (24) (42) (39)% (65)% Noninterest exp. (709) (638) (749) 11% (5)% 221 249 IBIT 409 357 249 15 % 6
Slide 22: Deutsche Asset and Wealth Management
Deutsche Asset and Wealth Management Income before income taxes Key features Impairment/recovery of goodwill and other 1Q15 vs. 1Q15 vs. In EUR m intangible assets In EUR m 1Q15 1Q14 4Q14 1Q14 4Q14 (3) 358 Revenues 1,379 1,065 1,240 29% 11% Prov. for credit (4) 1 0 n.m. n.m. 288 83 291 losses Nonint
Slide 23: Non-Core Operations Unit
Non-Core Operations Unit Income before income taxes Key features In EUR m In EUR m 1Q15 vs. 1Q15 vs. 1Q15 1Q14 4Q14 1Q14 4Q14 Revenues 336 63 153 n.m. 120 % Prov. for credit (28) (67) (131) (59)% (79)% (381) losses (541) (587) Noninterest exp. (690) (538) (736) 28 % (6)% (712) IBIT (381) (541) (712)
Slide 24: Consolidation & Adjustments
Consolidation & Adjustments Income before income taxes Key features In EUR m In EUR m 1Q15 vs. 1Q15 vs. 1Q15 1Q14 4Q14 1Q14 4Q14 IBIT (18) (216) 21 (91)% n.m. 56 thereof 21 (1) V&T differences 324 (134) (29) n.m. n.m. (18) FVA 1 (95) 18 n.m. (93)% Bank levies (426) 1 1 n.m. n.m. (128) Remaining 82 1
Slide 25: Methodology changes: Overview and Divisional impact
Methodology changes: Overview and Divisional impact Key changes IBIT: Divisional impact Reallocation of certain P&L items previously shown in C&A clear out C&A to the Divisions, basically via RWA and balance sheet size as allocation keys No impact on Group financials; Divisional Financials In EUR m
Slide 26: Appendix
Deutsche Bank Appendix
Slide 27: Appendix: Table of Contents
Appendix: Table of Contents IBIT detail 28 NCOU Details 30 CRD4 – Leverage Exposure and risk weighted assets 33 Loan book 34 Impaired loans 36 Value-at-Risk 37 Funding 38 Number of shares 39 Invested assets 40 Group headcount 43 Deutsche Bank 1Q2015 results financial transparency. 27 Investor Relati
Slide 28: 1Q 2015: IBIT detail
1Q 2015: IBIT detail 1Q2015 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 643 (70) (1,161) (226) (24) 2,124 PBC 536 (84) (1) 0 (0) 622 GTB 409 (12) (0) 0 (1) 422 AWM 291 (38) (1) 0 (2) 332 C&A (18) (2) (1) 1 (5) (12) Core Bank 1,861 (206) (1,164) (224) (32) 3,487
Slide 29: 1Q 2014: IBIT detail
1Q 2014: IBIT detail 1Q2014 In EUR m IBIT reported CtA Litigation CVA / DVA / FVA Other(1) IBIT adjusted CB&S 1,439 (111) 18 3 (12) 1,540 PBC 475 (107) (0) 0 (4) 586 GTB 357 (19) 2 0 (1) 375 AWM 167 (56) (13) 0 (4) 239 C&A (216) (5) (1) (95) (7) (109) Core Bank 2,221 (297) 6 (91) (27) 2,630 NCOU (54
Slide 30: NCOU IBIT components
NCOU IBIT components IBIT in EUR m, Assets and RWA data as of 31 Mar 2015 Component FY2013 FY2014 1Q2015 Comments/Outlook Portfolio Revenues 1,592 1,107 163 Asset Driven De-risking IBIT 454 181 111 — Net IBIT impact to MtM/Other (785) (901) 166 decrease with lower (RWA 46bn, IFRS LLPs(1) (812) (309)
Slide 31: NCOU: De-risking Milestones
NCOU: De-risking Milestones Since June 2012 Size of Non-Core Operations Unit — Regulatory capital generation of EUR 6.2 bn has IFRS assets, in EUR bn contributed a CET1 ratio benefit(1) of ~146 bps ~(72)% — IFRS Assets reduced by EUR ~100 bn since June 2012 ~140 64 1Q2015 Update 39 39 — RWA reductio
Slide 32: NCOU: Asset Composition
NCOU: Asset Composition Total IFRS assets Total IFRS assets In EUR bn, as of 31 December 2014 In EUR bn, as of 31 March 2015 AWM SCG AWM SCG IAS 39 IAS 39 reclassified assets 0.9 0.4 reclassified assets CI 0.7 1.2 CI 7.4 5.8 7.3 5.6 (2) PBC: Other (1) Other loans (2) PBC: Other (1) 1.5 Other loans 2
Slide 33: CRD4 – Leverage Exposure and risk weighted assets
CRD4 – Leverage Exposure and risk weighted assets In EUR bn Leverage Exposure vs. RWA(1) CRD4 – Leverage Exposure RWA 1,445 1,549 356 356 Non-derivative trading assets 196 64 64 212 77 Market Risk RWA 73 Derivatives(2) 358 368 CVA 23 69 Lending 406 429 250 126 Reverse repo / Credit Risk RWA 260 secu
Slide 34: Loan book
Loan book In EUR bn 434 401 411 18 386 393 18 NCOU 21 19 43 22 37 39 33 34 AWM 216 214 215 PBC 213 213 77 84 GTB 76 77 77 CB&S 48 53 62 72 42 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 2014 2015 Germany excl. Financial Institutions and Public Sector: 186 185 185 184 184 184 184 185 184 Note: Loan amounts ar
Slide 35: Composition of loan book and provisions by category
Composition of loan book and provisions by category In EUR m, as of 31 Mar 2015 Composition of loan book and provisions by category Mar 31, 2015 1Q2015 Non-Core Provision for In EUR m Core Bank Operations Unit Total credit losses Further details PBC Mortgages 152,222 6,551 158,772 low loan to value
Slide 36: Impaired loans
Impaired loans(1) Period-end, in EUR bn Core Bank Non-Core Operations Unit (3) Impaired loan ratio Deutsche Bank Group(3) (2) Impaired loan ratio Core Bank(3) 12.0 10.3 3.10% 10.0 9.5 9.3 9.4 10.0 2.60% 3.3 3.3 2.9 2.7 2.10% 8.0 2.8 6.0 1.60% 4.0 6.9 1.10% 6.8 6.7 6.5 6.7 2.0 0.60% - 0.10% 1Q 2Q 3Q
Slide 37: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, in EUR m Average VaR Stressed VaR(1) EUR 3.2 bn Sales & Trading revenues EUR 3.7 bn 180 160 140 120 100 80 60 40 20 54 56 50 46 50 108 105 108 111 109 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 (1) Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses
Slide 38: Funding activities and profile
Funding activities and profile Funding cost and volume development Funding profile well diversified Issuance, in EUR bn As of 31 March 2015 DB issuance spread, 4 week moving average, in bps (1) Secured Financing 200 Funding and Vehicles, 1% Shorts, 10% 75% from most stable 180 Unsecured funding sour
Slide 39: Number of shares
Number of shares In million Average used for EPS calculation End of period numbers 31 Dec 31 Dec 31 Mar FY2013 FY2014 1Q2015 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) (1) - (0) (0) Common shares outstanding 1,034 1,234 1,378 1,06
Slide 40: Client view invested assets – Deutsche AWM
Client view invested assets – Deutsche AWM In EUR bn 31 Mar 2015 31 Dec 2013 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 vs 31 Dec 2014 Retail 239 244 255 267 272 309 37 Institutional 404 403 406 432 449 495 46 Private Client 279 287 294 307 317 354 37 AWM 923 934 955 1,006 1,039 1,1
Slide 41: Regional invested assets – Deutsche AWM
Regional invested assets – Deutsche AWM In EUR bn 31 Mar 2015 31 Dec 2013 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 vs 31 Dec 2014 Americas 270 265 262 282 297 338 41 Asia-Pacific 67 70 75 85 86 97 11 EMEA (ex Germany) 245 250 262 272 280 315 35 Germany 341 349 355 366 376 409 33 A
Slide 42: Invested assets – PBC
Invested assets – PBC In EUR bn 31 Mar 2015 31 Dec 2013 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 vs. 31 Dec 2014 Private & Business Clients 282 284 286 289 291 303 13 Investment & Insurance Products 146 149 153 154 156 167 13 Deposits excl. Sight Deposits 136 135 133 135 136 135 0
Slide 43: Group headcount
Group headcount Full-time equivalents, at period end 31 Mar 2015 31 Dec 2013 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 vs. 31 Dec 2014 CB&S 8,356 8,213 8,115 8,386 8,206 8,029 (177) PBC 37,877 38,213 38,207 38,390 38,048 38,355 307 GTB 4,088 4,077 4,029 4,125 4,140 4,122 (18) AWM 6
Slide 44: 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