Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (December 2019)
25 slides from Deutsche Bank's investor day presentation, Dec 10, 2019
Slide 1: Investor Deep Dive: How we compete to win
Investor Deep DiveHow we compete to win Christian Sewing Chief Executive Officer 10 December 2019 Deutsche Bank
Slide 2: Recap of our strategy
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Slide 3: We are off to a good start
We are off to a good start Reduced Maintained De-risking of Capital Exiting Equities adjusted cost strong capital Release Unit Turned around trading with less Investment Bank knock-on impact € 21.5bn(1,2) CET1 ratio >13%(1) RWA <€ 52bn(1) Core Bank revenues Created Corporate Clients & employee Regul
Slide 4: Working to offset headwinds
Working to offset headwinds Lower for Slowing economic Geopolitical Increasing regulatory longer rates growth risks requirements ECB deposit rate(1), in % World trade, last 3 months(2), Number of pages per in % yoy regulatory filing(3) 0.4 6 5 100 0.3 4 80 0.2 3 60 0.1 2 40 Trade war 0.0 1 20 0 Poli
Slide 5: Our way to fundamentally transform the bank
Our way to fundamentally transform the bank FOUR BUSINESSES Refocus COMPETING TO WIN IMPROVE EFFICIENCY AND Restructure INFRASTRUCTURE Delivering returns for shareholders Reinvigorate LEADERSHIP AND SPIRIT Return FREE UP CAPITAL Christian Sewing 4 Investor Deep Dive, 10 December 2019
Slide 6: Refocus: Four businesses competing to win
Refocus: Four businesses competing to win What we promised in July Where we stand today Adjusted revenues(1) Adjusted profit before tax(2) Refocus 17.6 17.4 Core Bank, in € bn 2.1 2.2 Exit loss making businesses 9M 2018 9M 2019 9M 2018 9M 2019 Focus on market leading businesses and more 23% 23% 31%
Slide 7: Restructure: Improve efficiency and infrastructure
Restructure: Improve efficiency and infrastructure What we promised in July Where we stand today % in controls(3) 3.8% 4.5% Restructure Adjusted cost(1), in € bn 5.7 5.6 5.5 5.4 Reduce adjusted cost 5.3 5.3 5.2 to € 17bn in 2022 Front-to-back cost reductions reflecting Q1 2018 Q2 2018 Q3 2018 Q4 201
Slide 8: Reinvigorate: Leadership and spirit
Reinvigorate: Leadership and spirit What we promised in July Where we stand today Operational losses, in € bn Red flags(1), in # Reinvigorate Change in conduct 3.1 1,433 New management team and structure with incremental skill- 406 358 0.7 set and improved 0.3 0.2 126 business focus 2016 2017 2018 9
Slide 9: Return: Free up capital
Return: Free up capital What we promised in July Where we stand today 13.4 >13.0 Return 11.8 11.6 CET 1 ratio, in % 0.25% Maintained robust balance Maintain at least 12.5% sheet including CET1 ratio through own strong CET 1 capital resources. Target ratio a 5% leverage ratio Q3 2019 2019 SREP SREP t
Slide 10: Dedicated transformation role to deliver on strategy
Dedicated transformation role to deliver on strategy Refocus Restructure Reinvigorate Return Costs, tech and Capital and Business model Clients, growth Leadership and infrastructure balance sheet transformation and innovation integrity culture efficiency efficiency Corporate banking One Bank IT and
Slide 11: Our path to sustainable profitability
Our path to sustainable profitability
Slide 12: What has changed since July
What has changed since July 2022 10Y interest rate Mitigating measures Strategy Updated announcement plan (July) (December) Pricing and charging for negative interest rates EUR 1.1% 0.5% ECB tiering Advise clients in migrating from deposits to higher yielding investment assets USD 2.7% 2.0% Improvem
Slide 13: Our path to improved Group profitability
(1) – (2) Our path to improved Group profitability Post-tax return on tangible equity, in % Additional measure: — Reduce € 1bn stranded costs in the Capital Release Unit (1)% 8% (1)-(2)% 2-3% 5% Additional measure: — Passing through negative interest rates 2-3% 0% 9M 2019 Revenue Cost Provision for
Slide 14: Grow the core: our Corporate Bank
Grow the core: our Corporate Bank 2018 – 2022 targeted revenue compound annual growth rate Strategic priorities Competitive advantages Leading indicators Loans, in € bn Integrated payments & FX +5% — Be the bank of solutions in 125 currencies choice for the Corporate 113 119 Treasurer — Capture the
Slide 15: Demonstrate resilience in our Investment Bank
Demonstrate resilience in our Investment Bank 2018 – 2022 targeted revenue compound annual growth rate Strategic priorities Competitive advantages(1) Leading indicators Adjusted costs(2), in € bn #1 #3 Globally in Credit (3) (6)% — Drive cost reductions 4.7 4.5 within infrastructure — Optimize fundi
Slide 16: Improve efficiency in our Private Bank
Improve efficiency in our Private Bank 2018 – 2022 targeted revenue compound annual growth rate Strategic priorities Competitive advantages(1) Leading indicators Cost synergies, in € bn #1Clients ~22m worldwide ~0.2 — Drive efficiencies, in particular in Germany — Monetize #1 position in Germany ~€
Slide 17: Delivering sustainable value in Asset Management
Delivering sustainable value in Asset Management 2018 – 2022 targeted revenue compound annual growth rate Strategic priorities Competitive advantages(1) Leading indicators Morningstar 4- and 5-star rated — Launch innovative products and maintain #1Asset Manager Retail funds strong performance track
Slide 18: Collaboration opportunities to drive growth
Collaboration opportunities to drive growth — Wealth and Entrepreneur Bank initiative — “Entrepreneur initiative“ — Partnership and referral model — Family office initiative — Risk management solutions for corporate clients — Corporate Finance for SME — Distribution of DWS funds through branches — D
Slide 19: Technology drives efficiency and future growth
Technology drives efficiency and future growth Existing platforms >85k active Autobahn users ~10bn tradable FX spot prices quoted daily Integrated payment and FX solutions in Tech-driven, (open) platform 125+ currencies banking in order to: - master flow efficiently - better understand client needs
Slide 20: On track to reach adjusted cost targets
On track to reach adjusted cost targets Adjusted costs ex transformation charges, in € bn Almost half of which already in run rate 23.9 22.8 (1.1) 21.5 (1.3) 19.5 (2.0) 17.0 (2.5) 2017 2018 2019 target (1) 2020 target (1) 2022 target (1) Excluding impact from Prime Finance platform to be transferred
Slide 21: We are managing the bank conservatively
We are managing the bank conservatively 2007 9M 2019 Net balance sheet assets(1), 1,495 1,019 in € bn Common Equity Tier 1 capital 8.6%(3) 13.4% ratio(2) Provision for credit losses as a 31bps 15bps % of loans Loans as a % of deposits(4) 44% 74% Most Stable Funding(5) 30% 80% (1) Net balance sheet o
Slide 22: Our targets
Our targets Stabilize, Cut costs Maintain capital discipline then grow revenues Maintain CET 1 ratio of at least Grow Group revenues to Reduce adjusted cost to 12.5% and free up capital for ~€ 24.5bn by 2022 € 17.0bn in 2022 distribution from 2022 Reaffirm our Return on Tangible Equity target of 8%
Slide 23: A new and better Deutsche Bank
A new and better Deutsche Bank
Slide 24: How we deliver
How we deliver Fixing the bank with existing capital resources no capital increase planned Restructuring decisively closing businesses, not trimming Realistic financial plans we deliver what we promise Accountability in short- and mid-term clear financial targets Addressing key concerns no compromis
Slide 25: Cautionary statements
Cautionary statements Non-IFRS Financial Measures This document contains non-IFRS financial measures. For a reconciliation to directly comparable figures under IFRS, to the extent not provided herein, please refer to the Financial Data Supplement which can be downloaded from www.db.com/ir. Forward-L