Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (January 2025)
46 slides from Deutsche Bank's debt investor presentation, Jan 31, 2025
Slide 1: Q4/FY 2024 Fixed Income Investor Conference Call
Deutsche Bank Investor Relations Q4/FY 2024 Fixed Income Investor Conference Call January 31, 2025
Slide 2: Resilient full-year results reflecting ongoing strong operating performance
Resilient full-year results reflecting ongoing strong operating performance In € bn, unless stated otherwise Pre-provision profit1 Revenues Costs Year-on-year By division3 Adjusted costs +9% +19% Group 28.9 +4% 30.1 (1)% +13% € 20.2bn 8.8 +4% 30.1 20.6 20.4 Adjusted cost 28.8 Commissions and excludi
Slide 3: Clear traction across divisions set to deliver sustainable growth and higher profitability
Clear traction across divisions set to deliver sustainable growth and higher profitability Revenue CAGR1 RoTE2 At the heart of Global Hausbank with a global network and strengthened client franchise, 13% 13% Corporate evidenced by ~40% increase in incremental deals won with multinational clients s
Slide 4: Strong execution and positioning underpin confidence in revenue trajectory
Strong execution and positioning underpin confidence in revenue trajectory Net revenues, in € bn Revenue growth drivers in 2025 CAGR1 5.8% +18% ~5.9% Further growth and scaling of commissions and fee income in Trade Finance and in fee-based ~32.0 32.8 Corporate institutional businesses 30.1 at Dec
Slide 5: Set to achieve >10% RoTE target with positive operating leverage
Set to achieve >10% RoTE target with positive operating leverage Strategic delivery pillars Return on tangible equity (RoTE) In percentage points (ppt) unless stated otherwise Targeted ~3ppt 5.5-6.5% 0.4 (0.3) >10% Achieved Revenue CAGR 0.6 ‘21-’25 5.8% 2.4 20% Cost savings more than offset investme
Slide 6: Treasury-specific section
Treasury-specific section Deutsche Bank Investor Relations Q4 / FY 2024 Fixed Income Conference Call, January 31, 2025 6
Slide 7: Banking book net interest income (NII) above prior guidance in 2024
Banking book net interest income (NII) above prior guidance in 2024 In € bn, unless stated otherwise Group development Key banking book segment1 development 1.3% 1.3% 1.2% 1.3% 1.4% 4.1% 4.2% 4.1% 3.7% 3.7% Corporate Bank 3.7 3.2 3.1 3.0 3.3 0.3 1.3 1.3 1.3 1.2 1.2 0.0 Q4 2023 Q1 2024 Q2 2024 Q3 202
Slide 8: Net interest income (NII) expected to further grow in 2025
Net interest income (NII) expected to further grow in 2025 In € bn, unless stated otherwise NII development1 Key highlights Corporate Bank Private Bank FIC Financing Other funding Key banking book 9.0 11.0 13.1 13.3 13.6 13.9 segments and at DecFX NII from banking book segments and other funding o
Slide 9: Long-term hedge contribution shields NII against lower policy rates
Long-term hedge contribution shields NII against lower policy rates In € bn, unless stated otherwise Income from long-term hedge portfolio (excl. equity)1 Key highlights 10y EUR swap Yield of maturing EUR hedges Locked-in Roll-over Average yield 0.6% 0.9% 1.2% 1.4% 1.6% 1.8% Hedge contribution exp
Slide 10: Resilient lending while deposit growth continues
Resilient lending while deposit growth continues In € bn, unless stated otherwise; loan-to-deposit ratio 73% Loan development1,2 Key highlights QoQ YoY 479 480 482 477 485 (0)% (1)% Loans remained stable with slight reduction of € 2bn during the quarter adjusted for FX: Investment Bank 101 103 106
Slide 11: Sound liquidity and funding base at targeted levels
Sound liquidity and funding base at targeted levels In € bn, unless stated otherwise Liquidity coverage ratio (LCR)1 Key highlights 3M daily avg. High-quality liquid assets (HQLA) LCR 131% 136% 131% 137% 128% LCR and daily average LCR at targeted level LCR 140% 136% 136% 135% 131% ~130% Cash LCR
Slide 12: CET1 ratio remains strong
CET1 ratio remains strong As of December 31, 2024, period end CET1 ratio, movements in basis points (bps) Key highlights 22 CET1 ratio up by 4bps compared to Q3 2024: 13.9% 17bps reduction from capital effects, principally from the 13.8% 13.8% announced € 750m 2025 share buyback from excess (17)
Slide 13: Capital ratios well above regulatory requirements
Capital ratios well above regulatory requirements As of December 31, 2024, in % of RWA, unless stated otherwise Key highlights 19.2 T2 2.1 Buffer to CET1 requirement of 264bps, up 2bps quarter 331bps on quarter in line with CET1 ratio development 15.9 AT1 3.2 Equivalent to € 9bn capital 2.7 T2 r
Slide 14: Leverage ratio stable
Leverage ratio stable As of December 31, 2024, movement in bps, unless stated otherwise Key highlights 7 4.6% 4.7% 4.6% 1 (6) 3.85% 0.75% G-SIB Leverage ratio up by 2bps compared to Q3 2024: 0.10% Pillar 2 requirement 7bps Tier 1 capital change, principally driven by € 1.5bn AT1 issuance in Nove
Slide 15: Significant buffer over MREL/TLAC requirements
Significant buffer over MREL/TLAC requirements As of December 31, 2024, loss-absorbing capacity, in € bn unless stated otherwise Key highlights 134 Senior preferred1 15 23 Surplus 27 30 above Q4 2024 loss-absorbing capacity significantly above all Senior requirements regulatory requirements, with
Slide 16: 2025 issuance plan at € 15-20bn
2025 issuance plan at € 15-20bn In € bn, unless stated otherwise Key highlights Covered bonds Senior preferred2 Senior non-preferred AT1/T2 15-20 17 16 18 2024 issuance plan completed with a € 1.5bn AT1 1 16 0.5-1 1 3 12 transaction in November, bringing the full year 8 3 5-6 6 7 2 volume to € 18b
Slide 17: Summary and outlook
Summary and outlook Confidence in 2025 revenue ambition of ~€ 32bn, in line with 2021-2025 CAGR target of 5.5%-6.5%, underpinned by 2024 performance and continued execution of growth agenda Resetting CIR target to below 65% to support sustained investments into franchise, offset by ongoing execution
Slide 18: Appendix
Appendix Deutsche Bank Investor Relations Q4 / FY 2024 Fixed Income Conference Call, January 31, 2025 18
Slide 19: Current ratings
Current ratings As of January 30, 2025 Morningstar Moody‘s Investors Services S&P Global Ratings Fitch Ratings DBRS Counterparty obligations (e.g. deposits / structured notes / derivatives / swaps / A1 A1 A AA (low) trade finance obligations) Long-term Preferred2 A1 A A A senior unsecured Non-prefer
Slide 20: Limited NII sensitivity
Limited NII sensitivity Hypothetical +/-25bps shift in yield curve, in € m Net interest income (NII) sensitivity1 +25bps shift in yield curve -25bps shift in yield curve ~145 ~90 ~30 ~(30) ~(95) ~(155) 2025 2026 2027 Breakdown of sensitivity by currency for +25bps shift in yield curve ~100 ~45 ~25 ~
Slide 21: Capital markets issuance outstanding
Capital markets issuance outstanding As of December 31, 2024, in € bn By product1 By currency1 Capital Instruments Other (AT1/T2) GBP 8 3 25 Senior 53 non-preferred Covered bonds 14 120 120 65 EUR USD 44 12 Senior structured 16 Senior preferred Notes: for footnotes refer to slides 44 and 45 Deutsche
Slide 22: Conservatively managed balance sheet
Conservatively managed balance sheet As of December 31, 2024, net1 in € bn Assets Liabilities & Equity Stable funding mix High-quality loan portfolio 1,083 1,083 Investment grade Trading and Weighted-average life 153 68% Corporate Bank HQLA4 226 related liabilities5 8y in long-term debt exposure2 po
Slide 23: Stable and well diversified deposit portfolio
Stable and well diversified deposit portfolio € 666bn deposit base as of December 31, 2024 Investment Bank & Treasury Term deposits Other APAC / MEA Americas Term deposits Institutional 5% Corporate Bank 5% 8% 11% Client Services 11% Europe excl. Germany Personal Banking 13% 29% 13% 38% Private Bank
Slide 24: Provision for credit losses
Provision for credit losses In € m, unless stated otherwise Annual development Quarterly development Key highlights IB PB In bps of average loans annualized1 Stage 1+2 In bps of average loans annualized1 CB Other Stage 3 25 31 38 41 37 40 41 35 Full-year provisions elevated and affected by 1,830 4
Slide 25: Loan book composition
Loan book composition Q4 2024, IFRS loans: € 485bn1 Key highlights Other2 Other IB3 0% 11% Leveraged Debt Capital Markets German Mortgages and 1% Home Loans & Savings 53% of loan portfolio in Private Bank, consisting of retail Asset Backed Securities mortgages mainly in Personal Banking (Germany)
Slide 26: Asset quality in Germany
Asset quality in Germany In € bn, unless stated otherwise German loan book well diversified Solid fundamentals in home market Broadly stable baseline CLPs6 Provision for credit losses, in bps 67% (3) 3.1% +0.8 Corporate Bank ppt YoY ppt YoY Germany (baseline) Germany (reported) Investment Bank Inves
Slide 27: Commercial Real Estate (CRE) 1 / 2
Commercial Real Estate (CRE) 1 / 2 CRE non-recourse portfolio: € 36 bn € 29bn in scope of severe stress test2 By region By region Non-recourse € 36bn – 8% of total loans1 APAC APAC € 7bn deemed as lower risk, includes data centers 7% EU 3% and municipal social housing 16% CRE higher risk loans
Slide 28: Commercial Real Estate (CRE) 2 / 2
Commercial Real Estate (CRE) 2 / 2 US CRE in scope of severe stress test1: € 15bn US CRE loan risk management US CRE CLPs2 In € bn In € m By type Office: € 7bn Cumulative modified loans CLPs per quarter New York 14 130 Other 123 121 Other Office 17% 27% Miami 28% Philadelphia 80 46% 3% 2% 74 5% 5.6%
Slide 29: Leverage exposure and risk-weighted assets
Leverage exposure and risk-weighted assets CRD4, in € bn, period end Leverage exposure Risk-weighted assets 357 357 58 Operational risk RWA 58 1,284 1,316 Market risk RWA 128 26 19 Trading assets 143 Credit valuation 3 18 adjustments Derivatives1 125 137 Lending 464 470 148 Lending Credit risk RWA 2
Slide 30: Derivatives bridge
Derivatives bridge Q4 2024, IFRS derivative trading assets and the impact of netting and collateral, in € bn Key highlights 292 Gross notional derivative exposure amounts are not exchanged and relate only to the reference amount of all contracts; it is no reflection of the credit or market risk ru
Slide 31: Level 3 assets and liabilities
Level 3 assets and liabilities As of December 31, 2024, in € bn Assets: € 26bn Liabilities: € 13bn Key highlights Other Other 3 Derivative 0 Assets Debt 8 Debt Securities Level 3 is an indicator of valuation securities 4 5 uncertainty and not of asset quality The Group classifies financial instr
Slide 32: Group Trading Book Value-at-Risk (VaR) and stressed Value-at-Risk (sVaR)
Group Trading Book Value-at-Risk (VaR) and stressed Value-at-Risk (sVaR) As of December 31, 2024, in € m, 99% confidence level Trading P&L1, VaR sVaR 500 160 400 250 300 120 152 172 200 121 100 80 0 44 33 40 25 24 -100 -200 0 -300 -400 (40) -500 (80) Q1 2024 Q2 20242 Q3 20242 Q4 2024
Slide 33: FY 2024 and Q4 2024 highlights
FY 2024 and Q4 2024 highlights In € bn, unless stated otherwise Financial results Q4 divisional revenues Key highlights Δ vs. Δ vs. Q4 2024 Q4 2023 Q3 2024 Δ vs. FY 2024 FY 2023 +8% +8% Δ vs. Q4 2023 Statement of income 7.2 Revenues 7.2 8% (4)% 30.1 4% Revenues ex-specific items1 7.2 8% (3)% 30.1 4%
Slide 34: Adjusted costs – Q4 2024
Adjusted costs – Q4 2024 In € m, unless stated otherwise Key highlights Q4 2024 5,276 Real estate (100) measures Q4 adjusted costs of € 5,276m impacted by exceptional items and unfavorable FX movement by almost € 300m Real estate measures of € 100m UK bank levy (134) true-up UK bank levy true-
Slide 35: Noninterest expenses – FY 2024 results and FY 2025 outlook
Noninterest expenses – FY 2024 results and FY 2025 outlook In € bn, unless stated otherwise Noninterest expenses Key highlights CIR 76% <65% 23.0 Nonoperating costs in FY 2024 were impacted by specific litigation items of € 1,668m, specifically Postbank takeover litigation provision of € 906m, (1.
Slide 36: 2025 financial targets and capital objectives
2025 financial targets and capital objectives Financial targets Capital objectives > 10% 5.5-6.5% < 65% ~ 13% 50% Post-tax RoTE Revenue CAGR Cost/income ratio CET1 ratio Total payout ratio in 2025 2021-2025 in 2025 from 2025 Well-positioned to Increased revenue Reset CIR target, Aim to operate with
Slide 37: Sustainability
Sustainability Q4 2024 highlights Recent achievements Sustainable Finance1 volumes Increased Sustainable Finance volumes by € 21bn to € 373bn 1 (cumulative since 2020), including a first-time € 1bn contribution for market making activities in the Investment Bank, reflecting the annual average volu
Slide 38: Deutsche Bank’s performance in leading ESG ratings
Deutsche Bank’s performance in leading ESG ratings As of January 29, 2025 Score range Rating score Rating agency ESG rating criteria (weighting) Rating development (best to worst) DB Corporate Governance & Corporate Behavior Privacy & Data Security (15%) (35%) Responsible Investment (15%) AAA
Slide 39: Definition of certain financial measures
Definition of certain financial measures Revenues excluding specific items are calculated by adjusting net revenues under IFRS for specific revenue items which generally fall outside the usual nature or scope of the Revenues excluding business and are likely to distort an accurate assessment of the
Slide 40: Specific revenue items and adjusted costs – Q4 2024
Specific revenue items and adjusted costs – Q4 2024 In € m, unless stated otherwise Q4 2024 Q4 2023 Q3 2024 CB IB PB AM C&O Group CB IB PB AM C&O Group CB IB PB AM C&O Group Revenues 1,864 2,390 2,359 709 (99) 7,224 1,912 1,837 2,394 580 (64) 6,658 1,841 2,523 2,319 660 157 7,501 Specific revenue it
Slide 41: Specific revenue items and adjusted costs – FY 2024
Specific revenue items and adjusted costs – FY 2024 In € m, unless stated otherwise FY 2024 FY 2023 CB IB PB AM C&O Group CB IB PB AM C&O Group Revenues 7,506 10,558 9,386 2,649 (6) 30,092 7,718 9,160 9,571 2,383 47 28,879 Specific revenue items DVA - IB Other / Legacy portfolios1 - (30) - - (6) (37
Slide 42: Pre-provision profit, CAGR and operating leverage
Pre-provision profit, CAGR and operating leverage In € m, unless stated otherwise CAGR2 FY 2021 – FY 2024 vs FY 2021 FY 2024 FY 2023 FY 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 LTM FY 2023 Net revenues Corporate Bank 5,153 1,878 1,922 1,841 1,864 7,506 13.4% 7,718 7,506 (3)% Investment Bank 9,63
Slide 43: Adjusted key metrics – FY 2024
Adjusted key metrics – FY 2024 In € m, unless stated otherwise FY 2023 FY 2024 Pre-provision profit 7,184 7,121 Provision for credit losses (1,505) (1,830) Profit (loss) before tax 5,678 5,291 Noncontrolling interests (post tax) (119) (139) Income tax expense (-) / benefit (+) (787) (1,786) AT1 Coup
Slide 44: Footnotes 1/2
Footnotes 1/2 Slide 2 – Resilient full-year performance reflecting ongoing strong operating performance Slide 9 – Long-term hedge contribution shields NII against lower policy rates 1. Defined on slide 39 and detailed on slide 42 1. Based on current market-implied forward rates as of December 31, 20
Slide 45: Footnotes 2/2
Footnotes 2/2 Slide 22 – Conservatively managed balance sheet Slide 29 – Leverage exposure and risk-weighted assets 1. Net balance sheet of € 1,083bn is defined as IFRS balance sheet (€ 1,387bn) adjusted to reflect the funding required after 1. Excludes any derivatives-related market risk RWA, which
Slide 46: Cautionary statements
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2024 and SEC Form 20-F are scheduled to be published on March 13, 2025 Forward-looking statements This presentation contains forward-looking statements. Forward-looking statements are statements t
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