Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Debt Investor Presentation (November 2016)
22 slides from Deutsche Bank's debt investor presentation, Nov 4, 2016
Slide 1: 3Q16 Fixed Income Investor Conference Call
Deutsche Bank 3Q16 Fixed Income Investor Conference Call Marcus Schenck, Chief Financial Officer Alexander von zur Mühlen, Group Treasurer 4 November 2016
Slide 2: Agenda
Agenda 1 3Q16 results update 2 Capital, funding and liquidity update 3 Appendix Deutsche Bank financial transparency. 1 Investor Relations
Slide 3: Group financial highlights
Group financial highlights In EUR bn, unless otherwise stated 3Q2016 vs. 9M2016 vs. 3Q2016 3Q2015 9M2016 9M2015 3Q2015 9M2015 Net revenues 7.5 7.3 22.9 26.9 2% (15)% Provision for credit losses (0.3) (0.2) (0.9) (0.6) 58% 55% Noninterest expenses (6.5) (13.2) (20.5) (29.7) (50)% (31)% therein: Adjus
Slide 4: 3Q 2016 segment performance
3Q 2016 segment performance In EUR bn, unless otherwise stated Revenues IBIT 3Q16 3Q15 3Q16 3Q15 Year-over-year performance drivers — Reported revenues up 10% y-o-y, driven by solid performance Global Markets 2.6 2.3 0.3 (2.0) in Debt Sales and Trading with strong results in Credit and Rates, partia
Slide 5: Costs
Costs In EUR bn Noninterest expenses Key facts 3Q2016 vs 3Q2015 FX (6.5)bn — Noninterest expenses in 3Q2016 are EUR 13.2 13.1 6.5bn lower than in 3Q2015 — 3Q2015 included EUR 5.8bn impairment of Impairments goodwill and other intangible assets / Policyholder Benefits and Claims(1) 5.7 5.7 — Litigati
Slide 6: Adjusted Costs
Adjusted Costs In EUR m Adjusted Costs(1) Key facts 3Q2016 vs 3Q2015 FX 3Q15 3Q15 2Q16 3Q16 — Adjusted costs are EUR 0.2bn lower than in 3Q2015, FX(2) primarily due to lower performance related compensation. Compensation and Benefits 3,248 3,193 2,931 2,864 This is also the main driver for the reduc
Slide 7: Agenda: Capital, funding and liquidity update
Agenda 1 3Q16 results update 2 Capital, funding and liquidity update 3 Appendix Deutsche Bank financial transparency. 6 Investor Relations
Slide 8: 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 (0.7)bn, including EUR (0.2)bn FX effect 0.2 — EUR 0.3bn net income in the quarter is more 0.3 than offset by Other: 43.5 (0.1) — EUR (0.
Slide 9: RWA and Leverage Exposure
RWA and Leverage Exposure In EUR bn CET1 capital (fully loaded) Events in the quarter 12.2% CET 1 ratio, phase in 12.6% — 3Q2016 fully loaded CET 1 ratio of 11.1%, ~30bps above 10.8% CET 1 ratio, fully loaded 11.1% 2Q2016 402 — RWA down by EUR (18)bn, including EUR (2)bn FX effect 385 — EUR (10)bn r
Slide 10: Strong liquidity
Strong liquidity Liquidity Coverage Ratio(1) (LCR) Details 124% 122% EUR 32bn ― Liquidity Coverage Ratio broadly flat versus June 119% 119% surplus 2016 above 100% ― EUR 32bn surplus above 100% level ― EUR 23bn decrease in liquidity reserves in the quarter driven by EUR 35bn reduction in funding sou
Slide 11: External funding profile
External funding profile As of 30 September 2016, in EUR bn Funding profile well diversified Details — 72% of total funding from most stable sources, flat versus June 2016 Secured Financing Equity, 6% (1) — Total external funding decreased by EUR 35bn to EUR Funding and Vehicles, 0% Shorts, 16% 957b
Slide 12: 2016 funding plan and contractual maturities
2016 funding plan and contractual maturities In EUR bn 2016 funding(1) Maturity profile(2) Senior Plain Vanilla(3) Senior Structured Covered Bonds Capital instruments Contractual maturities 28 22 21 21 20 19 18 16 13 15 13 12 13 4 7 6 5 6 7 4 3 4 2 1 1 1 1 1 1 2013 2014 2015 2016e 2017e 2018e 2019e
Slide 13: Total Loss Absorbing Capacity (TLAC)
Total Loss Absorbing Capacity (TLAC) DB well positioned to meet TLAC requirements 2019 Transitional TLAC availability and requirements(1) EUR 111bn EUR 79bn EUR 81bn Plain-vanilla G-SIB buffer 2.0% senior debt(2) Capital Conservation buffer 2.5% 52bn DB has EUR ~30bn of TLAC Additional 8% 6bn Tier 2
Slide 14: Agenda: Appendix
Agenda 1 3Q16 results update 2 Capital, funding and liquidity update 3 Appendix Deutsche Bank financial transparency. 13 Investor Relations
Slide 15: 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 16: Rating methodologies increasingly reflect new resolution regime
Rating methodologies increasingly reflect new resolution regime and therefore require more differentiation Deposits / Derivatives / expected in A3(1) N/A A(high) Swaps 4Q16(2) Counterparties Senior unsecured Baa2 BBB+ A- A(low) Tier 2 Ba2 BB+ BBB+ - Legacy T1 B1 B+ BB+ - AT1 B1 B+ BB - — Counterpart
Slide 17: Rating landscape – senior unsecured and short-term ratings
Rating landscape – senior unsecured and short-term ratings Moody‘s S&P Operating company Holding company 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/BBB+ P/A-2 Baa2
Slide 18: Strong decline in Level 3 assets
Strong decline in Level 3 assets In EUR bn, unless otherwise stated NCOU disposals significant driver in recent past Comments % of DB Group 1.5% — Level 3 classification does not explicitly imply 4.3% IFRS assets an asset is more risky. Level 3 assets are instruments where the fair value of one or m
Slide 19: 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 2.5 bn Sales & Trading revenues EUR 2.7 bn 160 140 120 100 80 60 40 20 40 38 37 37 28 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 111 99 98 89 77 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 (1
Slide 20: Relatively small loan exposure to 'focus industries'
Relatively small loan exposure to ‘focus industries’ As of 30 September 2016 Loan exposure Oil & Gas: ~ EUR 9bn loan exposure — Slightly higher drawings compared to Q2 mainly from national oil & gas companies — ~50% to IG borrowers (mainly oil majors and national oil & gas companies) Retail — 25% to
Slide 21: Litigation update
Litigation update In EUR bn Mortgage repurchase Litigation reserves Contingent liabilities demands/reserves(1) In USD bn Demands Reserves 5.5 5.9 2.4 2.4 1.7 1.6 0.3 0.3 30 Jun 2016 30 Sep 2016 30 Jun 2016 30 Sep 2016 30 Jun 2016 30 Sep 2016 — In 3Q2016, Deutsche Bank continued to — Includes possibl
Slide 22: 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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