Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (March 2022)
24 slides from Deutsche Bank's investor day presentation, Mar 10, 2022
Slide 1: Financial objectives to 2025
Deutsche Bank Financial objectives to 2025 #PositiveImpact James von Moltke Chief Financial Officer 10 March 2022
Slide 2: Agenda
Agenda 1 Our financial objectives 2 Capital planning and distribution Deutsche Bank James von Moltke 1 Investor Deep Dive, 10 March 2022
Slide 3: Financial targets and capital objectives
Financial targets and capital objectives Our financial targets to 2025 >10% 3.5-4.5% <62.5% Post-tax RoTE Revenue CAGR Cost/income ratio in 2025 2021-2025 in 2025 Capital objectives ~13% CET1 ratio 50% Total payout ratio from 2025 Deutsche Bank James von Moltke 2 Investor Deep Dive, 10 March 2022
Slide 4: Operating leverage to drive increased RoTE target
Operating leverage to drive increased RoTE target Return on tangible equity and CIR in % CIR 85 (>22)pp <62.5 RoTE >6pp (1) 3 (2) >10 6 3.8 2021(1) Revenues Costs Provision for Other(1) 2025 target credit losses Objectives Note Throughout this presentation totals may not sum due to rounding differen
Slide 5: Favorable environment supports execution momentum
Favorable environment supports execution momentum Revenues, in € bn, unless stated otherwise CAGR 3.5-4.5% ~1.5% 1.5-2.0% ~30 2.0-2.5% (1.0-1.5%) 2021-2025 revenue CAGR 25.4 divisional(1) assumptions: Corporate Bank 6-7% Investment Bank 1-2% Private Bank 4-5% Asset Management 4-5% Group target(2) 3.
Slide 6: Business volume growth expectations in line with market opportunity and recent performance
Business volume growth expectations in line with market opportunity and recent performance CAGR 2021-2025, in %, unless otherwise stated Revenue contribution from Anticipated contribution from volume growth volume growth to 2025 to total divisional CAGRs 2021-2025 Increase revenues with corporate
Slide 7: Continued execution and expansion of initiatives aim to deliver additional growth
Continued execution and expansion of initiatives aim to deliver additional growth CAGR 2021-2025, in %, unless otherwise stated Divisional revenue contribution from Key strategic growth strategic initiatives to 2025 measures by division Support corporate clients and their new business models (e.g.
Slide 8: Modelled revenue benefit anticipated from market rate curve through 2025
Modelled revenue benefit anticipated from market rate curve through 2025 In € bn, unless otherwise stated Evolution of interest sensitive revenues at current forward rates(1) Sensitivity to a +/- 25bps shift in the yield curve(2) 1.8 Revenue impact at 28 February 2022 rates(3) Year on year impact Pr
Slide 9: Path to 2025 costs is supported by ongoing efficiency initiatives and self-funding reinvestments
Path to 2025 costs is supported by ongoing efficiency initiatives and self-funding reinvestments Noninterest expenses, in € bn (2.5)-(3.0) 21.5 (1.5) (0.4) (0.3) (0.6) ~18.8 18.5-19.0 Germany optimization Technology architecture Front-to-Back process re-design Infrastructure efficiency (2.0) 2021 Tr
Slide 10: Efficiency measures address long-standing challenges in our cost base
Efficiency measures address long-standing challenges in our cost base Finalization of IT systems integration in Private Bank Germany Germany Optimization of Corporate Bank payments platform and head office optimization Digitization and automation of our Germany operations Improved time to ma
Slide 11: Simplifying and modernizing our legacy IT to enable investments in client solutions and revenue growth
Simplifying and modernizing our legacy IT to enable investments in client solutions and revenue growth 2022–2025 investments, in € bn Investment ambitions Key focus areas Simplifying the application landscape on our Technology & modernized infrastructure and cloud integration digitalization Impr
Slide 12: Targeted result: significant efficiency improvement
Targeted result: significant efficiency improvement Cost/income ratio, in % >(22)pp 85 (13) (10) <62.5 (8) ~8 2021 Revenue increase Other cost saves(1) Efficiency measures Business growth / 2025 cost inflation target Objective (1) Includes transformation charges, restructuring & severance, litigatio
Slide 13: Strong risk management expected to support through-the-cycle credit loss provisions of ~20bps to 2025
Strong risk management expected to support through- the-cycle credit loss provisions of ~20bps to 2025 Provision for credit losses, in € bn Provision for credit losses 33 13 13 17 41 12 ~20 1.8 1.4 0.7 0.5 0.5 0.5 2016 2017 2018 2019 2020 2021 2022 -2025 plan Corporate Bank Investment Bank Private B
Slide 14: Profit increase expected across all divisions
Profit increase expected across all divisions CB Investment in growth, supported by ongoing loan and fee income growth IB Investment driven resource optimization and particularly in capital light activities PB Increased profitability driven by targeted growth initiatives and efficiency measures AM E
Slide 15: Agenda
Agenda 1 Our financial objectives 2 Capital planning and distribution Deutsche Bank James von Moltke 14 Investor Deep Dive, 10 March 2022
Slide 16: Maintaining strong capital on glidepath to Basel III implementation
Maintaining strong capital on glidepath to Basel III implementation CET1 ratio, in % ~€ 25bn RWA ~13 13.2 Distance to € 5(1)bn MDA ≥200bps Includes Core Bank net income and ~2.5% ~11 RWA growth p.a. 10.4 Cyclical buffer(2) Maximum Distributable Amount 2021 2021 Core Bank Capital Release Basel III Ca
Slide 17: Average tangible equity increase supports business growth with stable capital allocation
Average tangible equity increase supports business growth with stable capital allocation Average tangible equity in € bn, unless stated otherwise ~62 ~5% ~8 50 ~4 ~20% AM 4% CB 19% 2021-2025 envisaged increase of average ~25% tangible equity by ~5% CAGR post capital distribution driven by increased
Slide 18: Sustainable capital generation supports previous return objectives and growing distribution over time
Sustainable capital generation supports previous return objectives and growing distribution over time Distribution, in € bn 8(1) ~ € 3.3bn 2025+ payout guidance anticipated total dividends for FY 2021-2024 2025 Dividends per share (in €) 50% total payout ratio through a combination of dividends paid
Slide 19: Summary
Summary Expected environment supports returns in excess of cost of equity, mainly driven by Group’s increasing operating leverage Continued self-funding from ongoing efficiency initiatives and increased investment into revenue growth is expected to deliver RoTE improvements Capital plan accommodates
Slide 20: Appendix
Appendix 10 March 2022 Deutsche Bank
Slide 21: We intend to maintain a solid capital base to 2025
We intend to maintain a solid capital base to 2025 2021 2025 Actuals Operating Level CET1 13.2% ~13.0% Total capital 17.7%(1) ~17.6% MREL 32.7% ~32.8% Leverage ratio 4.5%(1,2) >4.5% (1) Fully loaded (2) Including certain central bank cash balances Deutsche Bank James von Moltke 20 Investor Deep Dive
Slide 22: Market implied interest rates, in %
Market implied interest rates, in % EUR USD 2.5 2.5 2.0 2.0 1.5 1.5 3M 1.0 1.0 rates(1) 0.5 0.5 0.0 0.0 2019 2020 2021 2022 2023 2024 2025 2026 2019 2020 2021 2022 2023 2024 2025 2026 -0.5 -1.0 2.5 2.5 2.0 2.0 1.5 1.5 10Y 1.0 rates (1) 1.0 0.5 0.5 0.0 0.0 2019 2020 2021 2022 2023 2024 2025 2026 2019
Slide 23: Macroeconomic assumptions used in the plan to 2025
Macroeconomic assumptions used in the plan to 2025 GDP growth1) Inflation1) Unemployment rate1) (real, in % p.a.) (in % p.a.) (in %) 9 9 5 7 7 5 5 3 3 3 1 1 1 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 -5 -10 World Germany UK USA (1) Sources: Deutsche B
Slide 24: 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