Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (February 2017)
26 slides from Deutsche Bank's debt investor presentation, Feb 13, 2017
Slide 1: 4Q16 Fixed Income Investor Conference Call
Deutsche Bank 4Q16 Fixed Income Investor Conference Call Marcus Schenck, Chief Financial Officer Alexander von zur Mühlen, Group Treasurer 13 February 2017
Slide 2: Agenda
Agenda 1 4Q16 results update 2 Capital, funding and liquidity update 3 Appendix Deutsche Bank 1 Investor Relations
Slide 3: Group financial highlights
Group financial highlights In EUR bn, unless otherwise stated 4Q2016 vs. FY2016 vs. 4Q2016 4Q2015 FY2016 FY2015 4Q2015 FY2015 Net revenues 7.1 6.6 30.0 33.5 6% (10)% Provision for credit losses (0.5) (0.4) (1.4) (1.0) 30% 45% Noninterest expenses (9.0) (9.0) (29.4) (38.7) 0% (24)% therein: Adjusted
Slide 4: Litigation update
Litigation update Litigation Reserves, in EUR bn ― Settled or otherwise resolved a significant number of large matters Achievements ~ EUR 2 bn 2016 ― Current reserves of EUR 7.6bn include EUR ~ 4.7bn for matters already settled/agreements-in-principle to settle have been reached. 7.6 ― BaFin closed
Slide 5: Costs
Costs In EUR bn Noninterest expenses Key facts (8.5) — 4Q2016 noninterest expenses were 37.9 EUR 0.3bn higher than FX-adjusted Impairments / 4Q2015 Policyholder +0.3 6.0 benefits and — Full year noninterest expenses were claims(1) 8.7 9.0 29.4 5.0 down by EUR 8.5bn 0.1 1.1 1.6 Litigation(2) 1.2 1.0
Slide 6: Adjusted Costs
Adjusted Costs In EUR m Adjusted Costs(1) Key facts FY2016 vs FY2015 FX 4Q15 FY15 — Adjusted Costs are EUR 1,187m below prior year 4Q16 FY16 FX(2) FX(2) — Compensation and benefits costs decreased by EUR 1,143m mainly due to lower performance related Compensation and benefits 2,933 2,762 12,819 11,6
Slide 7: Outlook
Outlook Whilst 2015 and 2016 were peak year for litigation, 2017 continues to be burdened by resolving legacy matters Adjusted Costs target 2018 of EUR <22bn expected to be achieved Provisions for credit losses expected to mildly improve in 2017 RWA expected to grow in Q1 2017 to support business gr
Slide 8: Agenda
Agenda 1 4Q16 results update 2 Capital, funding and liquidity update 3 Appendix Deutsche Bank 7 Investor Relations
Slide 9: Balance sheet overview
Balance sheet overview As of 31 December 2016, in EUR bn Assets (after netting) Liabilities & equity (after netting) Comments 1,077 1,077 — Net balance sheet of EUR 1,077bn represents the Cash, central bank 55 Unsecured Wholesale(6) funding required after recognizing (i) legal netting 178 agreements
Slide 10: Tier 1 capital
Tier 1 capital CRD4, fully loaded, in EUR bn Common Equity Tier 1 Tier 1 capital Additional Tier 1 capital Events in the quarter 4.6 4.6 — CET1 capital down by EUR (0.2)bn q-o-q to EUR 42.7bn as negative net income was offset by the 42.9 benefit from the disposal of the stake in Hua Xia 0.7 42.7 Ban
Slide 11: RWA and Leverage Exposure
RWA and Leverage Exposure CRD4, fully loaded, in EUR bn RWA and CET1 ratio Events in the quarter 11.1% CET 1 ratio, fully loaded 11.9% — 4Q2016 fully loaded CET1 ratio ~80bps above 3Q2016, 12.6% CET 1 ratio, phase- in 13.5% including 54bps from disposal of 19.99% stake in Hua Xia 385 Bank — RWA down
Slide 12: Pillar 2 Requirements – DB above required minimum levels
Pillar 2 Requirements – DB above required minimum levels CET 1 Ratio vs. Pillar 2 CET 1 Requirements Events in the quarter CRR/CRD 4 phase-in CET 1 Ratio, in % — ECB notified DB of its Supervisory Review and Evaluation Process (SREP) conclusions for 2017, 13.53% setting Pillar 2 minimum requirements
Slide 13: Liquidity
Liquidity Liquidity Coverage Ratio(1) (LCR) Details 128% EUR 43bn ― Liquidity Coverage Ratio improved by 6% over 124% 122% 119% 119% surplus the quarter (buffer above 100% increased by above ~EUR 12bn) 100% ― EUR 43bn surplus above 100% level ― EUR 18bn increase in liquidity reserves in the quarter
Slide 14: External funding profile
External funding profile As of 31 December 2016, in EUR bn Funding profile well diversified Details — 72% of total funding from most stable sources, stable versus prior quarter Secured Financing Equity, 6% (1) — Total external funding increased by EUR 20bn to EUR Funding and Vehicles, 0% Shorts, 17%
Slide 15: 2017 funding plan and contractual maturities
2017 funding plan and contractual maturities In EUR bn 2016 issuance and Plan for 2017 Maturity profile(1) Senior Plain Vanilla(2) Senior Structured Covered Bonds Capital instruments Contractual maturities 32 25 22 22 21 21 18 11-14 17 12 12 13 4 7 7 9-11 5 4 4 4 4 2 1-2 1 1 1 1 1 1 2016 2017 2015 2
Slide 16: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) DB well positioned to meet TLAC requirements 2019 Transitional TLAC availability and requirements(1) as of 4Q16 EUR 116bn EUR 73bn EUR 81bn Plain-vanilla G-SIB buffer 2.0% senior debt(2) Capital Conservation buffer 2.5% 58bn DB has EUR ~35bn of TLAC Additional ab
Slide 17: Rating methodologies increasingly reflect new resolution regime
Rating methodologies increasingly reflect new resolution regime and therefore require more differentiation Counterparty obligations (e.g. Deposits / A3(cr)(1) BBB+(2) A(3) A(high) Derivatives / Swaps) Preferred senior Expected in unsecured (4) A3 A (emr)(3) - 1Q17 non- Baa2 BBB+ A- A(low) Senior pre
Slide 18: Agenda
Agenda 1 4Q16 results update 2 Capital, funding and liquidity update 3 Appendix Deutsche Bank 17 Investor Relations
Slide 19: AT1 and Trust Preferred Securities instruments
AT1 and Trust Preferred Securities instruments(1) EUR6 bn of capital instruments called since January 2015 Original Regulatory Capital Nominal Call Next Subsequent Issuer1) ISIN Coupon issuance treatment(2) recognition(2) outstanding date call date call period date Capital Funding Trust VI DE000A0DT
Slide 20: Debt Profile by Instrument
Debt Profile by Instrument As of 31 December 2016, in EUR bn DB AG Postbank DB Group(4) <1Y >1Y Total <1Y >1Y Total <1Y >1Y Total Covered bonds 0.1 8.0(1) 8.1 2.3 13.3 15.7 2.4 21.3 23.8 Structured notes 3.4 24.5 27.9 - - - 3.7 23.8 27.5 Plain-vanilla senior debt 17.4 57.7 75.2 0.8 2.3 3.0 21.3 58.1
Slide 21: Rating landscape – senior unsecured and short-term ratings
Rating landscape – senior unsecured and short-term ratings Moody‘s S&P 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
Slide 22: Value-at-Risk
Value-at-Risk DB Group, 99%, 1 day, EUR m Average VaR Average VaR Stressed VaR(1) Stressed VaR (1) 180 EUR 1.8 bn Sales & Trading revenues EUR 1.8 bn 160 140 120 100 80 60 40 20 38 37 37 28 27 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 99 98 89 77 78 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 (1)
Slide 23: Key drivers of credit loss provisions in 2016
Key drivers of credit loss provisions in 2016 Industry and Regional Breakdown of EUR 1,383m CLPs, 31 Dec 2016 CLPs by major industries CLPs by major regions Other Other (2) 10 84 Rest of Postbank Germany 181 150 Shipping Rest of 346 EMEA (ex Germany) 259 Homogeneous (1) Steel, Metals EMEA 657 PWCC &
Slide 24: Group Shipping Loan Portfolio
Group Shipping Loan Portfolio Loan Portfolio Development (1) Credit Loss Provision In EUR bn In EUR m 5.9 346 5.3 168 124 30 FY 2015 FY 2016 4Q 2015 4Q 2016 FY 2015 FY 2016 — Portfolio well diversified by asset class (26% container, 21% bulker, 21% tanker, 7% ECA, 5% offshore, 20% other) and region
Slide 25: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves(1) In USD bn Demands Reserves 7.6 2.4 5.9 2.2 1.6 0.8 0.3 0.1 30 Sep 2016 31 Dec 2016 30 Sep 2016 31 Dec 2016 30 Sep 2016 31 Dec 2016 — In 4Q2016, Deutsche Bank continued to — Includes possibl
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
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