Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (March 2022)
44 slides from Deutsche Bank's investor day presentation, Mar 10, 2022
Slide 1: Compete to Win: Mark-to-market and our path to 2022 targets
Deutsche Bank Compete to Win: Mark-to-market and our path to 2022 targets #PositiveImpact Christian Sewing – Chief Executive Officer James von Moltke – Chief Financial Officer 10 March 2022
Slide 2: Agenda
Agenda 1 Achievements since July 2019 2 2022 delivery Deutsche Bank Christian Sewing and James von Moltke 1 Investor Deep Dive, 10 March 2022
Slide 3: Summary
Summary Original goal: stabilize and transform Deutsche Bank On track to deliver on our strategic and financial objectives Focused management agenda driving further improved culture and controls Stable senior management team and high employee engagement Laid the foundation for strategic su
Slide 4: Delivering on the promises we made in 2019
Delivering on the promises we made in 2019 1 2 3 4 5 Create four Exit Cut Invest in Manage and client-centric businesses costs technology & liberate capital divisions growth Focus on market Exit Equities Sales & Overhaul our front- Invest in our leading Create a Capital leading businesses Trading, r
Slide 5: Transformation is reaching the bottom line, building the foundation for 2022
1 2 3 4 5 Transformation is reaching the bottom line, building the foundation for 2022 Profit (loss) before tax, in € bn 2021 step-off x% RoTE(1) x% Cost/income ratio (0)% (11)% 0% 4% 8% Net profit for 2021 rose more than fourfold to € 2.5bn; highest since 2011 93% 108% 88% 85% 70% Stable CET1 ratio
Slide 6: Corporate Bank
1 2 3 4 5 Corporate Bank Supporting our clients by leveraging our global network and capabilities Business levers since 2018 Offset negative rates with deposit repricing € 101 bn >€ 400 m Deposits under repricing annual revenue run-rate agreements (based on Q4 2021) Loan and fee income growth + 7% +
Slide 7: Corporate Bank
1 2 3 4 5 Corporate Bank Underlying growth of 4%, mitigating interest rate headwinds In € bn, unless stated otherwise Reported RoTE(1) x% FY 2022 RoTE target(2) x% Key profitability enablers Network bank Leading Corporate Bank in Germany Shaping the financial services’ future True global partner acr
Slide 8: Investment Bank
1 2 3 4 5 Investment Bank A focused and competitive business delivering targeted growth and increased client intensity Business levers since 2018 Sustainable and well-controlled revenue growth + 27 % > 140 bps Revenue increase FIC market share growth(1) Deepening client intensity + 80 bps + 32 % Mar
Slide 9: Investment Bank
1 2 3 4 5 Investment Bank Sustainable revenue growth of 10% from refocused businesses In € bn, unless stated otherwise Reported RoTE(1) x% FY 2022 RoTE target(2) x% Key profitability enablers O&A Financing Flow Franchise Focused approach to target client Continued disciplined approach to Targeted tr
Slide 10: Private Bank
1 2 3 4 5 Private Bank Underlying growth and improved efficiency driving operating leverage Business levers since 2018 Execute cost reduction program >350 ~4,300 Branches exited Net employee reduction Capitalize on growth opportunities ~€ 50 bn ~€ 40 bn Net Assets under Net new client loans Manageme
Slide 11: Private Bank
1 2 3 4 5 Private Bank Revenue growth of 5% mainly from lending and investment products offset by headwinds In € bn, unless stated otherwise Reported RoTE(1) x% FY 2022 RoTE target(2) x% Key profitability enablers Advisory capabilities U/HNWI and entrepreneurs Efficiency initiatives Focusing on prof
Slide 12: Asset Management
1 2 3 4 5 Asset Management Strong investment performance, inflows and increasing efficiency Business levers since 2018 Stabilized business and increased cost efficiency 18pp 61% Cost/income ratio FY 2021 improvement cost/income ratio Achieved turnaround in flows, supported by strong contribution fro
Slide 13: Asset Management
1 2 3 4 5 Asset Management Record Assets under Management support 8% revenue growth In € bn, unless stated otherwise Reported RoTE(1) x% FY 2022 RoTE target(2) x% Key profitability enablers Strong net inflows Growth in targeted asset classes Strong efficiency improvement Organic growth supported by
Slide 14: CRU released ~50bps of CET1 capital by exiting non-strategic businesses and assets
1 2 3 4 5 CRU released ~50bps of CET1 capital by exiting non- strategic businesses and assets In € bn RWA development Exited Equities Trading and significantly reduced legacy rates portfolio (61)% 72 Completed transition of Prime Finance and 28 32 Electronic Equities 2018 2021 2022 target(1) Lever
Slide 15: Significantly reducing the cost burden of legacy assets
1 2 3 4 5 Significantly reducing the cost burden of legacy assets Adjusted costs ex transformation charges, in € bn Capital Release Unit cost reduction driven by targeted simplification efforts(1) (2.2) Front office compensation 3.3 costs reduced € 0.8 bn 83% Reduction in variable non- Direct cost F
Slide 16: Reduced costs by 16% since 2018
1 2 3 4 5 Reduced costs by 16% since 2018 Noninterest expenses, in € bn 25.1 23.5 2.3 0.7 1.2 21.5 21.2 0.9 (3.6) 0.8 0.8 1.3 22.8 21.5 19.5 19.3 2018 2019 2020 2021 Nonoperating costs(1) Transformation charges & Prime Finance(2) Adjusted costs ex transformation charges & Prime Finance(2) (1) Nonope
Slide 17: Transformation initiatives are delivering sustainable cost reductions
1 2 3 4 5 Transformation initiatives are delivering sustainable cost reductions In € bn Cumulative transformation related effects Cost/amortization benefit 8.4 1.0 Lower employee costs since ~€ 0.9bn(1) YE 2018 2.8 Cost benefits p.a. from real estate ~€ 0.3bn actions to 2022 1.9 Amortization benefit
Slide 18: A smaller, more efficient workforce
1 2 3 4 5 A smaller, more efficient workforce ~ 10% Reduction of headcount since YE 2018 Hirings primarily in technology and control functions, supplemented by select senior hires in the Reduction in compensation costs(1) since front office ~ 12% YE 2018 Reduction in workforce population outside ~ 1
Slide 19: Real estate actions prepared us for Future of Work
1 2 3 4 5 Real estate actions prepared us for Future of Work Of employees expected to adopt a hybrid working model under Future of Work with ~ 65% additional cost saving potential going forward ~ 30% Net square meter reduction(1) via 127 initiatives Of annual net cost saves from 2022 onwards facilit
Slide 20: Technology is a key enabler for our business strategy execution
1 2 3 4 5 Technology is a key enabler for our business strategy execution Examples of major initiatives Simplify & upgrade 〉 Platform enabling efficiency and productivity increases 〉 Private Bank annual savings of € 0.3bn by 2025 German IT platform consolidation 〉 Development of next generation trad
Slide 21: Continuously improving internal controls
1 2 3 4 5 Continuously improving internal controls 1st Line of Defense De-risked franchise Reduced losses ~€ 3bn & strengthened and increased Invested in controls in 2019-2021 governance client-focus 1st / 2nd Line of Defense Outcomes Measures Invested into culture, Improved culture and 81% conduct
Slide 22: Self-funded transformation while offsetting regulatory headwinds
1 2 3 4 5 Self-funded transformation while offsetting regulatory headwinds CET1 ratio, in % 13.6 13.2 0.2 (1.3) 0.5 1.4 (1.0) 2018 Regulatory Capital impact of Core Bank CRU net impact Other 2021 impact transformation capital accretion effects Self-funded transformation while ~€ 700m capital distrib
Slide 23: Delivering on resource allocation towards 2022 plan
1 2 3 4 5 Delivering on resource allocation towards 2022 plan Average allocated tangible shareholders’ equity Asset Management 3% 4% ~5% Corporate Bank 18% 19% ~20% ~ 40% ~ 45% ~ 50% Stable businesses Private Bank 19% 23% ~25% Investment Bank 38% 46% ~45% ~ 60% ~ 55% ~ 50% IB & CRU Capital Release U
Slide 24: Our diligent approach is reducing risks effectively
Our diligent approach is reducing risks effectively Risk 〉 Highly developed risk management framework with industry-leading strength in financial risk management 〉 Strong risk culture with inherently conservative risk approach and risk appetite frameworks 〉 Strength in identifying and mobilizing to
Slide 25: High quality loan portfolio supports low credit loss provisions
High quality loan portfolio supports low credit loss provisions >75% composed of Private Bank and Corporate Bank(1) Conservative risk profile: credit portfolio Other Investment quality has stabilized and key portfolio 3% Bank indicators well within risk appetite Private Bank 17% 54% 26% Corporate Ba
Slide 26: Summary of exposures to Russia
Summary of exposures to Russia As of YE 2021, unless stated otherwise € 1.4bn loan exposure to Russia on a gross basis (0.3% of gross loans), € 0.6bn on a net basis(1) Financial risk Vast majority of derivatives exposure unwound, with DB a net payer on a m-t-m basis Secondary and tertiary risks moni
Slide 27: Focused on our broader management agenda
Focused on our broader management agenda Delivering a strong and innovative culture Deutsche Bank Christian Sewing and James von Moltke 26 Investor Deep Dive, 10 March 2022
Slide 28: Clients benefitting from cross-bank collaboration
Clients benefitting from cross-bank collaboration Providing strategic risk management and access 10% growth in corporate risk management to FX markets around the globe solutions revenues(1) Mutual referral of clients and delivery of products 70bps growth in O&A market share with CB and expertise bet
Slide 29: Sustainability is ingrained in our strategy
Sustainability is ingrained in our strategy Sustainable Finance(1) volumes vs target Sustainability strategy 1.0 (2019-2022) € 46bn € 157bn ≥€ 200bn Sustainable 〉 Set € 200bn target and accelerated it twice to Finance 2022 Target 〉 Developed divisional ESG strategies YE 2020 YE 2021 YE 2022 〉 Net ze
Slide 30: Substantially improved employee commitment
Substantially improved employee commitment People Survey July 2021 % of respondents feeling committed to the Bank +14pp People embrace our strategy 88% People know how their job contributes to delivering the strategy People feel valued 69 71 70% Deutsche Bank shows care and concern for its employees
Slide 31: Agenda
Agenda 1 Achievements since July 2019 2 2022 delivery Deutsche Bank Christian Sewing and James von Moltke 30 Investor Deep Dive, 10 March 2022
Slide 32: On track to achieve our financial milestones
On track to achieve our financial milestones In % Feb YTD(1) incl. bank pro-rata 2018 2021 levy plan (2) bank levy(3) 2022 targets RoTE(4) (0.1) 3.8 8.1 11.8 8 Core Bank RoTE 2.4 6.4 10.8 13.8 >9 CIR 92.7 84.6 73.6 64.1 70 CET1 ratio 13.6 13.2 13.2 >12.5 Leverage ratio 4.1 4.9(5) 4.5(5) ~4.5 (1) Feb
Slide 33: Our path to improved Group returns
Our path to improved Group returns Return on tangible equity, in % (1) 8 0 2 1 2 4 2021(1) Revenues Adjusted costs ex. Transformation Provision for Other(2) 2022 transformation charges / credit losses target charges Restructuring & severance Outlook (1) RoE 2021: 3% (2) Includes impacts from other n
Slide 34: Drivers supporting 2022 targets
Drivers supporting 2022 targets 〉 Further benefits from deposit repricing and 〉 Increasing client engagement interest rate tailwinds 〉 Deployment of technology-led client risk 〉 Continued lending expansion into the real management solutions economy and fee income growth in our 〉 Investment into targ
Slide 35: Revenue path to achieve 2022 plan
Revenue path to achieve 2022 plan Revenues excluding specific items(1), in € bn 0.4 0.6 26-27 25.3 0.5 (0.5) Corporate 5.2 Bank 4.89 0.95 Investment 9.7 Bank 2.16 Private 8.1 Bank 1.44 Asset Management 2.7 0.44 2021 FX Interest rate PB and CB Other 2022 Feb YTD(2) tailwinds growth plan Outlook (1) C
Slide 36: Significant cost/income ratio reduction in 2022, benefiting from prior investments
Significant cost/income ratio reduction in 2022, benefiting from prior investments Cost/income ratio, in % ~ (15)pp 85 (5) (5) (3) (1) 70 2021 Revenues Transformation Adjusted costs ex. Other 2022 charges/ transformation nonoperating costs target Restructuring charges(1) & severance Outlook (1) Adju
Slide 37: Continue to work towards our 2022 targets
Continue to work towards our 2022 targets On track to achieve financial milestones Year-to-date business momentum supporting confidence in path to 2022 targets Targeted cost/income ratio reduction in 2022, benefiting from prior investments Proposed capital distribution of ~€ 700m in 2022 Deutsche Ba
Slide 38: Transformation is unlocking a virtuous circle
Transformation is unlocking a virtuous circle Clear strategic direction Stakeholder recognition and Disciplined employee execution engagement Improved financial Improved ratings performance Client trust Deutsche Bank Christian Sewing and James von Moltke 37 Investor Deep Dive, 10 March 2022
Slide 39: Appendix
Appendix 10 March 2022 Deutsche Bank
Slide 40: Definitions
Definitions DWS continued to develop and refine the ESG Product Classification Framework (“ESG Framework”) which was introduced in DWS’ Interim Report 2021, considering relevant legislation (including SFDR), market standards and internal developments. For example, in DWS’ Interim Report, DWS conside
Slide 41: Specific revenue items and adjusted costs – FY 2021
Specific revenue items and adjusted costs – FY 2021 In € m FY 2021 FY 2020 Core Core CB IB PB AM C&O CRU Group CB IB PB AM C&O CRU Group Bank Bank Revenues 5,150 9,631 8,234 2,708 (339) 25,384 26 25,410 5,146 9,286 8,126 2,229 (534) 24,253 (225) 24,028 DVA - IB Other / CRU - (28) - - - (28) (2) (30)
Slide 42: Specific revenue items – Feb 2022 / Feb 2021 YTD
Specific revenue items – Feb 2022 / Feb 2021 YTD In € m Core CB IB PB AM C&O CRU Group Bank Revenues 952 2,159 1,437 436 (121) 4,862 21 4,883 DVA - IB Other / CRU - (3) - - - (3) (0) (4) Feb2022 YTD(1) Sal. Oppenheim workout IPB - - 0 - - 0 - 0 Revenues ex specific items 952 2,163 1,437 436 (121) 4,
Slide 43: RoE / RoTE reconciliation – Feb 2022 / Feb 2021 YTD
RoE / RoTE reconciliation – Feb 2022 / Feb 2021 YTD In € m Feb2022 YTD Preliminary Feb2021 YTD Actuals Core Bank Group Core Bank Group Profit (loss) before tax 1,401 1,176 1,408 1,056 Profit (loss)(2) 986 824 855 602 Profit (loss) attributable to noncontrolling interests 32 32 22 22 Profit (loss) at
Slide 44: 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