Deutsche Bank AG · XETR:DBK
Deutsche Bank — Debt Investor Presentation (August 2020)
26 slides from Deutsche Bank's debt investor presentation, August 2020
Slide 1: Deutsche Bank – Client & Creditor Presentation
Deutsche Bank Deutsche Bank – Client & Creditor Presentation August 2020
Slide 2: A German bank with a global network
A German bank with a global network Deutsche Bank is present in 59 countries(1) Largest bank in Germany with approx. 20m clients(1) Regional revenue split(1) 1,931 branches worldwide, of which 1,332 in Germany(1) APAC 13% Americas Germany 20% 41% Managing over € 1.2tn of wealth for clients(2) EMEA 2
Slide 3: We are benefiting from our strong position in Germany
We are benefiting from our strong position in Germany The German government has the room …which we expect to lead to a less severe …and combined with low debt levels should to act decisively during COVID-19… GDP decline than in other countries… make Germany a more stable market Government debt GDP g
Slide 4: Supporting clients through COVID-19
Supporting clients through COVID-19 Loan # Customers Amount — Mainly legislative moratoria in Germany and Legislative & voluntary Italy industry-driven moratoria(1) >100k € 9bn — More than 90% to Private Bank clients — Represents 2% of Group loan portfolio Voluntary bilateral — Bilateral forbearance
Slide 5: Executing on our transformation
Executing on our transformation — Robust group performance with significant increase in Core Bank revenues and profitability — Strategic transformation well-advanced and beneficial in current environment Transformation — 10th consecutive quarter of annual adjusted cost reductions – outperformance ve
Slide 6: Agenda
Agenda 1 Transformation progress 2 Balance sheet and fundamental strength 3 Creditor / counterparty considerations Deutsche Bank 6 Investor Relations
Slide 7: Delivering against key milestones
Delivering against key milestones Invest in Exit Create four client- Cut Manage and technology & businesses centric divisions costs liberate capital growth Focus on market leading Maintain conservative Exit from Equities Further improve businesses with Reduce adjusted costs(1) balance sheet with Tra
Slide 8: Disciplined execution on transformation agenda
Disciplined execution on transformation agenda Transformation delivery Key achievements in Q2 2020 Achieved targeted cost savings from Completed German legal entity merger >100% transformation initiatives in H1 2020 Announced creation of International Private Bank Completed integration of Corpor
Slide 9: Strategic transformation drives growth in the Core Bank
Strategic transformation drives growth in the Core Bank In € bn, unless stated otherwise Last 12 months (LTM) adjusted profit (loss) before tax(1) Refocus 3.1 Core Bank 2.6 +18% Exit loss making businesses (1.6) Capital (2.7) Release Unit LTM Q2 2019 LTM Q2 2020 Focus on market Last 12 months (LTM)
Slide 10: Improving efficiency
Improving efficiency and infrastructure In € bn Restructure Adjusted cost(1) 5.3 5.3 5.2 5.0 4.9 4.7 Reduce adjusted cost to € 17bn in 2022 76% of transformation- Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 related effects already absorbed 2019-2022 cumulative IT & Front-to-back cost Control spe
Slide 11: Sustainability at Deutsche Bank
Sustainability at Deutsche Bank Our key focus areas Recent achievements – Sustainable Finance target of at least € 200bn by 2025 announced Sustainable Finance – Inaugural green bond issued in June 2020 – Joined the German Financial Sector Collective Action on Climate: commitment to align our Policie
Slide 12: Agenda
Agenda 1 Transformation progress despite COVID-19 challenges 2 Balance sheet and fundamental strength 3 Creditor / counterparty considerations Deutsche Bank 12 Investor Relations
Slide 13: We have transformed the balance sheet since 2009
We have transformed the balance sheet since 2009 After Netting(1), in € bn, as of 30 June 2020 986 891 Liquidity 232 Reserves 85 Around a quarter of our balance sheet held in Liquidity Reserves Trading assets significantly reduced to ~25% of net 251 balance sheet Trading and related assets(2) 452 De
Slide 14: Strong fundamentals - healthy capital and liquidity levels
Strong fundamentals - healthy capital and liquidity levels Q4 2019 Q1 2020 Q2 2020 Comment Common Equity Tier 1 283bps above regulatory 13.6% 12.8% 13.3% capital ratio requirements Loss-absorbing capacity € 19bn above most binding MREL € 115bn € 112bn € 111bn (MREL) requirement Increase driven by lo
Slide 15: Strong capital position to support clients
Strong capital position to support clients Q2 2020, in % CET1 ratio peer comparison 16.1 15.0 13.5 13.3 13.3 13.1 12.5 12.4 12.4 12.3 11.5 11.4 Leverage ratio ~5.0% 4.2% 3.75% 3.00% 0.75% G-SIB 3.0% Pillar 1 requirement Q2 2020 2022 target 2021 leverage 2022 leverage ratio requirement(1) ratio requi
Slide 16: Maintaining a sound liquidity profile
Maintaining a sound liquidity profile Deutsche Bank’s liquidity reserves (in € bn) 260 246 — Investments in technology and 243 232 222 205 processes allow for better 200 Temporary resource allocation 71% 64% operating range 67% 60% 55% 67% — Reduction of overall liquidity reserves, but maintaining a
Slide 17: Low risk, well diversified loan portfolio
Low risk, well diversified loan portfolio Loans at amortized cost, in € bn, period end 439 — Trade Finance and working capital, mainly short-term to German midcaps and global multinationals 120 Corporate Bank — Commercial Banking loans to midcap and SME clients in Germany — Concentration risk subjec
Slide 18: Strong credit quality versus peers
Strong credit quality versus peers Stressed credit losses vs. European peers Loan Loss Reserves(2) consistent with peers EBA/ECB stress test(1) net credit losses in adverse given our lower unsecured retail exposure scenario. Impact on CET1 ratio, in bps In % 220 4.0 C 307 3.5 Loan Loss Reserves - %
Slide 19: Derivatives exposure – headline numbers materially overstate the economic risk
Derivatives exposure – headline numbers materially overstate the economic risk Q2 2020, in % IFRS derivative trading assets and the impact of netting and collateral — Gross notional derivative exposure amounts are not exchanged and relate only to the reference amount of all contracts. It is no refle
Slide 20: Level 3 assets – a small but natural part of our business
Level 3 assets – a small but natural part of our business € bn, Q2 2020 1,407 — Increase of € 1bn includes € 3bn of COVID-19 related impacts like higher 1.8% of derivative market values driven by market total volatility, expected to largely reverse over assets time — The Capital Release Unit account
Slide 21: Agenda
Agenda 1 Transformation progress despite COVID-19 challenges 2 Balance sheet and fundamental strength 3 Creditor / counterparty considerations Deutsche Bank 21 Investor Relations
Slide 22: Depositors and counterparties are protected by €108bn loss-absorbing capacity
Depositors and counterparties are protected by € 108bn loss- absorbing capacity(1) Loss absorbing capacity as a % of RWA Deposits ≤ €100k / Q2 2020 short-term liabilities(2) Deposits > €100k of natural Loss participation persons / SMEs only if TLAC is exhausted Other deposits(3), operating liabiliti
Slide 23: Current Ratings
Current Ratings Moody‘s Investors S&P Global Fitch Ratings DBRS Services Ratings Counterparty obligations (e.g. Deposits / Structured Notes / A3 BBB+(1) BBB+ A (high) Derivatives / Swaps / Trade Finance obligations/ LOC‘s) Senior Preferred(2) A3 BBB+ BBB+ A (low) Long- term unse- cured Non-preferred
Slide 24: Rating landscape – senior debt ratings
Rating landscape – senior debt ratings Operating company / Preferred Senior(1) Holding company / Non-preferred Senior(2) Rating scale EU Peers Swiss Peers US Peers Short-term Long-term BAR BNP HSBC SOC CS UBS BoA Citi GS JPM MS P/A-1 Aa2/AA P/A-1 Aa3/AA- P/A-1 A1/A+ P/A-1 A2/A P/A-2 A3/A- P/A-2 Baa1
Slide 25: Simplified legal entity structure
Simplified legal entity structure Issuing Deutsche Bank AG Germany entities Americas EMEA APAC DWS DB AG DB AG DB AG DB AG DB AG New London York Branch Singapore Hong Kong Sydney Branch Branch Branch Branch USA Great Britain Singapore Hong Kong Australia Deutsche Bank, DB USA Deutsche Bank Polska DB
Slide 26: 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
Deutsche Bank — Debt Investor Presentation (August 2020) on 6ix