Client & Creditor Overview - May 2021 Deutsche Bank
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Client & Creditor Overview
May 2021
Deutsche BankA strong German bank with a broad global network
Presence in 59 countries(1)
Managing over € 1.3tn of wealth for clients(2,3)
#1 Retail Bank in Germany
Regional revenue split(1) Business revenue split(2)
Corporate
Asia Pacific Bank Global leader in Financing and FX
Private
13% Bank 18%
Germany 30% Asset
38%
Americas 20% 9% Management
#1 Euro clearer
28% 43%
EMEA Investment
Bank
Note: Throughout the presentation figures may not add up due to rounding differences
(1) As of 31 December 2020
(2) Data as of 31 March 2021
(3) Includes Private Bank and Asset Management
Deutsche Bank 2
Investor RelationsAgenda
1 Transformation progress
2 Balance sheet and fundamental strength
3 Appendix
Deutsche Bank 3
Investor RelationsWe have made material progress
Phase 1
Phase 2 Phase 3
Stabilisation Transformation Sustainable profitability
1 2 3 4
Competitiveness and Disciplined Return capital to
Grow profitability
stability of Core Bank cost reduction shareholders
>70% 13th € 1.6bn € 5.0bn
Revenues in market leading Consecutive quarter Profit before tax for Q1 2021 Committed to distribute to
businesses(1) of YoY cost reductions(2) - the best quarter in seven shareholders from 2022
years
(1) Data as of September 2020. Leading defined as top 5 except for Corporate Bank defined as top 6 market position; IB source: McKinsey data
(2) Adjusted costs excluding bank levies and transformation charges related to the strategic announcement on 7 Jul 2019
Deutsche Bank 4
Investor Relations1 Well positioned for key structural trends
Investment Bank Corporate Bank
A leading global fixed income and Global “Hausbank” in Germany for 150
financing business; focused global O&A years with a leading network across
franchise 151 countries
Strategic priorities: Strategic priorities:
Client reengagement Focus on Asia Pacific
Targeted transformation in FIC Targeted growth investments,
incl. payments
Private Bank Asset Management
Leading German retail bank with a Global Asset Manager with a diversified
focused international advisory bank product range
and global wealth manager
Strategic priorities: Strategic priorities:
Loan volume and investment product growth Expand partnerships
Repricing ESG, Alternatives and Passive
Deutsche Bank 5
Investor Relations1 Progress on strategic priorities
Q1 2021
Investment Bank Corporate Bank
Double digit percentage revenue growth for the 6th
✔ €83bn deposits under charging agreements with quarterly
✔
consecutive quarter revenues of €74m
✔
Continued client re-engagement and growth in client ✔
Progress in clearing payments via online marketplaces
intensity and expansion of partnership with Mastercard
PBT RoTE PBT RoTE
+134% +11ppt +90% +3ppt
Private Bank Asset Management
€ 15bn of net inflows across AuM and net new loans, in
✔ At € 820bn, AuM reached record highs for DWS with
✔
line with our 2021 ambition growth in our targeted asset classes
✔
Reached agreement with workers council on distribution ✔
DWS laid foundations for a standalone technology
network optimization to close ~150 branches in Germany platform
in 2021
PBT RoTE PBT RoTE
+92% +3ppt +66% +13ppt
Deutsche Bank 6
Investor Relations1 Growing revenues under refocused strategy
Core Bank revenues(1) excluding specific items(2), in € bn
+7%
25.0
24.4
23.3
5.2
Corporate Enhanced client focus
5.2
Bank
10.1
Investment
7.3 Focus on market leading businesses
Bank
Private
Bank
8.2 8.1 Exit loss making businesses
Asset
Management 2.3 2.3
Last 12 months Last 12 months 2022
(LTM) Q1 2020 (LTM) Q1 2021 Plan
(1) Corporate & Other revenues (LTM Q1 2020: € 226m, LTM Q1 2021: € (652)m) are not shown on this chart but are included in Core Bank totals
(2) Detailed on slide 30 of the Q1 2021 Analyst presentation
Deutsche Bank 7
Investor Relations2 Disciplined cost reduction
€ bn
Adjusted costs ex. transformation charges(1)
(3.3)
22.8 Reduce adjusted cost by 25% from 2018 -
21.5 2022
19.5
16.7
87% of transformation-related effects already
absorbed
~80% of 2021 reductions already in run-rate
2018 2019 2020 2022 Preserve investments in controls and
target technology
€ 2.8bn
Remaining targeted cost reductions to 2022
(1) Adjusted costs excluding transformation charges and expenses eligible for reimbursement related to Prime Finance
Deutsche Bank 8
Investor Relations3 Strategic transformation drives higher profitability
In € bn, unless stated otherwise
Last 12 months (LTM) adjusted profit (loss) before tax(1)
75%
5.3 Core Bank
4.2
3.7
2.7 3.0 3.1
2.4
Capital
(2.0) (1.7) Release
(2.1) (2.4) (2.4)
(2.6) (2.7) Unit
Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021
(1) 2019 figures based on reporting structure as disclosed in 2020 Annual Report
Deutsche Bank 9
Investor Relations4 Committed to returning capital to shareholders
Common Equity Tier 1 (CET1) capital ratio
13.6% 13.6% 13.6% 13.7%
>12.5% Minimum Committed to maintaining a CET1 ratio above 12.5%
regulatory through transformation period
requirement
10.4%
CET1 ratio gives sufficient headroom to support
clients and absorb regulatory inflation
Remain committed to € 5bn of capital for distribution
to shareholders from 2022
2018 2019 2020 Q1 2021 2022
target
Deutsche Bank 10
Investor RelationsSustainability at Deutsche Bank
Our key focus areas Recent achievements
– Issuance of second green bond raised $ 800mn
– € 25bn in financing and investment achieved for Q1 2021 after € 46bn in all of 2020
Sustainable
– Maintained leading position in the euro-denominated sustainable bond market (ranked #3 by Dealogic)
Finance – Inaugural Diversity & Inclusion Bond, raising $ 750mn with a senior non-preferred issuance in New York
– Launched green deposits programme – a new cash management solution for our clients
– Joined Partnership for Carbon Accounting Financials (PCAF) and aligned the internal methodology for the
Policies & accounting of portfolio emissions to the PCAF standard
Commitments – Joined Net Zero Banking Alliance (NZBA)(1) and committed to achieve global net zero by 2050
– Published Sustainable Finance Disclosure Regulation (SFDR) statements prior to March deadline
Own – Continued reduction in energy over 2019 baseline and working towards 80% renewable electricity target by year
Operations end 2021
– Hosted dbAccess ESG Conference in March 2021
Thought – Launched new Deutsche Bank Research offering regarding sustainability for ESG investors
Leadership – Released CIO special report on ESG in Asia for our international private bank clients as part of a series of dedicated
ESG publications
We support all the major international standards and guidelines:
Business and Human Rights Partnership for Carbon
Core Labor Standards
Responsible Banking Paris Pledge for EU Transparency Global Reporting Accounting Financials
of the International
Sustainable Development Goals Action Register Initiatives
Labor Organization
International Bill of Rights
(1) Joined in April 2021
Deutsche Bank 11
Investor RelationsConclusion: encouraging improvement, but still work to do
Employees are responding positively Capital markets perception improving
% of respondents feeling committed to the bank(1) Price / Tangible Book Value(2)
Deutsche Bank
European peers(3)
69 0.2
0.4 0.7
57 57 58
0.6
0.5
0.3
2017 2018 2019 2020 10 Dec 2019 30 Apr 2021
(1) Source: People Survey results, July 2020
(2) Share price divided by most recent tangible book value per share
(3) Peer average of Barclays, BNP Paribas, Credit Suisse, HSBC, Societe Generale and UBS
Deutsche Bank 12
Investor RelationsAgenda
1 Transformation progress
2 Balance sheet and fundamental strength
3 Appendix
Deutsche Bank 13
Investor RelationsMaintained strong balance sheet
Q4 2020 Q1 2021
Common Equity Tier 1 330bps above regulatory
13.6% 13.7%
capital ratio requirements(1)
Stable and high quality funding
Liquidity reserves € 243bn € 243bn
base
€ 70bn above regulatory
Liquidity coverage ratio 145% 146%
requirements
Provision for credit losses Improved macroeconomic
23 6
(bps of average loans)(2) environment
(1) Maximum distributable amount of 10.4%
(2) Quarterly provision for credit losses annualized as bps of average quarterly loans gross of allowance at amortized cost
Deutsche Bank 14
Investor RelationsConservatively managed balance sheet
Net balance sheet(1), in € bn, as of 31 March 2021
Assets Liabilities & Equity
987 987
Trading and
142 related liabilities(2)
Liquidity
243 Resilient balance sheet to navigate
reserves
49 Other Liabilities(4) current environment
Trading and Liquidity Reserves account for 25% of
related assets(2)
241
net balance sheet
578 Deposits
76%
loan-to- Conservative loan to deposit ratio
deposit provides room for further growth
ratio
Loans(3) 440
431
Highly diversified and stable funding
Long term debt profile
217 & Equity
Other Assets(4) 64
(1) Net balance sheet of € 987bn is defined as IFRS balance sheet (€ 1,317bn) adjusted to reflect the funding required after recognizing legal netting agreements (€ 228bn), cash collateral
received (€ 36bn) and paid (€ 28bn) and offsetting pending settlement balances (€ 37bn)
(2) Trading and related assets along with similar liabilities, includes debt and equity securities (excluding highly liquid securities), derivatives, repos, securities borrowed and lent, brokerage
receivables and payables, loans measured at fair value
(3) Loans at amortized cost, gross of allowances
(4) Other assets include goodwill and other intangible, property and equipment, tax assets, cash and equivalents which are not part of liquidity reserve and other receivables. Other liabilities
include accrued expenses, investment contract liabilities, financial liabilities designated at fair value through P&L excluding those included in trading and related assets
Deutsche Bank 15
Investor RelationsStrong capital position
Q1 2021
Common Equity Tier 1 (CET1) ratio
13.7%
10.4%(1) CET1 ratio ~321 bps (or € 11bn) above CET1 minimum
regulatory requirement
Headroom to support growth in the Core Bank, Capital
Release Unit wind down and anticipated regulatory inflation
CET 1 ratio Requirement
Leverage ratio Well positioned for excess capital distribution to
shareholders from 2022
4.6%
3.0%(2) Leverage ratio 160 bps above requirement becoming
binding from June 2021
Leverage ratio 2021 requirement
(1) CET 1 requirement includes Pillar 1 requirement (4.50%), Pillar 2 requirement (1.41%), capital conservation buffer (2.50%), G-SIB buffer (2.00%), countercyclical capital buffer (0.03%)
(2) Applicable from 28 June 2021
Deutsche Bank 16
Investor RelationsSound liquidity profile
Q1 2021
Liquidity reserves
€ bn
243
>200
Strong liquidity profile gives capacity to support clients
as and when demand for additional lending increases
Q1 2021 Target Liquidity Coverage Ratio is € 70bn above the
requirement
Liquidity Coverage Ratio (LCR)
in %
146% Liquidity reserves will be prudently managed towards
~130%
targets over time
Q1 2021 Target
Deutsche Bank 17
Investor RelationsStrong credit quality versus peers
Q1 2021
Strong correlation with share of consumer credit despite strong
Geographical composition of loan book(1)
provisioning by US peers
4.0%
Latin
Loan Loss Reserves - % of total loans
Asia America
Pacific Others
1% 3.0%
8%
1%
North
America
17%
2.0%
52% Germany
1.0%
21%
Europe
ex Germany 0.0%
0% 5% 10% 15% 20% 25% 30%
Unsecured Consumer Lending(2) - % of total loans
= Q1’21 results;
(1) Loans at amortized cost. Data as of 31 December 2020
(2) Unsecured retail loans defined as retail loans excluding mortgages and excluding loans collateralized by securities
Remainder is Q4’20 data
Deutsche Bank 18
Investor RelationsDepositors and counterparties are protected by € 107bn loss-
absorbing capacity(1)
Loss absorbing capacity as a % of RWA(6)
Deposits ≤ €100k /
short-term liabilities(2)
Deposits > €100k of
Loss participation natural persons / SMEs
only if TLAC is Other deposits(3), operating 48
exhausted liabilities, senior preferred
11 notes and other(4)
40
Plain-vanilla 35 34 34 34
senior non- 32
46
preferred 29
notes and other(5) 27 27
25 24
€ 107bn
of TLAC 16 AT1/T2
45 CET1
Note: Illustrative size of boxes Q1 2021
(1) Total loss-absorbing capacity (TLAC) is the amount of equity and bail-in debt available to absorb losses in order to protect counterparties and depositors
(2) Insured deposits and deposits by credit institutions and investment firms with original maturity € 100k of large caps, all remaining deposits of financial institutions and the public sector
(4) Other includes structured notes money market instruments and LOC’s
(5) Other includes Schuldscheine >1 year (unless qualified as preferred deposits)
(6) Data as of Q4 2020
Deutsche Bank 19
Investor RelationsAgenda
1 Transformation progress
2 Balance sheet and fundamental strength
3 Appendix
Deutsche Bank 20
Investor RelationsQ1 demonstrated progress against 2022 financial plan
2022 targets and
Q1 2020 Q1 2021 ambitions
Revenues € 6.4bn € 7.2bn ~€ 24.4bn
Adjusted costs ex transformation charges € 4.9bn(1) € 4.6bn(1) € 16.7bn
Provision for credit losses € 0.5bn € 0.1bn € 1.2bn
Cost/income ratio 89% 77% 70%
Return on tangible equity(2) (0)% 7% 8%
Core Bank return on tangible equity 5% 11% >9%
Note: Percentages may not precisely reflect the absolute figures due to rounding differences.
(1) Adjusted costs ex bank levies, unexpected deposit guarantee scheme premium (in Q1 2021), transformation charges and expenses eligible for reimbursement related to Prime Finance.
(2) Post-tax return on average tangible shareholders’ equity is calculated on net income after AT1 coupons
Deutsche Bank 21
Investor RelationsCurrent ratings
Moody‘s Investors S&P Global Ratings Fitch Ratings DBRS
Services
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 Baa3 BBB- BBB BBB (high)
Tier 2 Ba2 BB+ BB+ -
AT1 B1 BB- BB- -
Short-term P-2 A-2 F2 R-1 (low)
Outlook Review for upgrade Positive Positive Negative
— Moody’s places ratings on ‘review for upgrade’ (May 2021)
— S&P raises outlook from ‘negative’ to ‘positive’, upgrades AT1 ratings (Feb 2021)
Recent highlights — Fitch raises outlook from ‘negative’ to ‘positive’ (Jan 2021)
— Moody’s raises outlook from ‘negative’ to ‘stable’ (Nov 2020)
— Fitch upgrades AT1 ratings, reflecting higher MDA buffers (Oct 2020)
Note: Ratings as of 17 May 2021
(1) The Issuer Credit Rating (ICR) is S&P‘s view on an obligor‘s overall creditworthiness. It does not apply to any specific financial obligation, as it does not take into account the nature of and
provisions of the obligation, its standing in bankruptcy or liquidation, statutory preferences, or the legality and enforceability of the obligation
(2) Defined as senior unsecured debt rating at Moody‘s and S&P, as preferred senior debt rating at Fitch and as senior debt at DBRS
Deutsche Bank 22
Investor RelationsDerivatives exposure – headline numbers materially
overstate the economic risk
€ bn, Q1 2021
IFRS derivative trading assets and the impact of netting — Gross notional derivative exposure amounts are not
and collateral exchanged and relate only to the reference amount
of all contracts. It is no reflection of the credit or
market risk run by a bank
290
— On DB’s IFRS balance sheet, derivative trading
assets are reported with their positive market values,
representing the maximum exposure to credit risk
prior to any credit enhancements
(225)
— Under IFRS accounting, the conditions to be met
allowing for netting on the balance sheet are much
stricter compared to US GAAP
— DB’s reported IFRS derivative trading assets of
(36) € 290bn would fall to € 23bn on a net basis, after
(7) considering legally enforceable Master Netting
23 Agreements(2) in place and collateral received
IFRS Impact of Cash Financial Net amount
Master Collateral Instrument
— In addition, DB actively hedges its net derivatives
Netting Collateral(1)
Agreements trading exposure to further reduce the economic risk
(1) Excludes real estate and other non-financial instrument collateral
(2) Master Netting Agreements allow counterparties with multiple derivative contracts to settle through a single payment
Deutsche Bank 23
Investor RelationsLevel 3 assets – a small but natural part of our business
€ bn, Q1 2021
Total assets
1,317
1.7% of
total
assets — Level 3 classification is an accounting indicator of
valuation uncertainty due to lack of observability of
at least one valuation parameter
22
Q1 2021
— Variety of mitigants to valuation uncertainty (e.g.
Level 3 asset composition exchange of collateral, prudent valuation capital
deductions, hedging of uncertain input)
Equity securities Mortgage backed securities
Other 10
1 — A significant portion of the portfolio is turning over
on a regular basis
Debt Derivative
securities 4 8 Assets
7
Loans
Deutsche Bank 24
Investor RelationsProvision for credit losses
€m
Stage 1 + 2
Stage 3 761
252
506 — Q1 provisions significantly below the
previous quarters
273 — Materially lower Stage 3 provisions quarter
230 251 on quarter across all businesses from fewer
247 impairment events, with the further benefit of
175 510 releases in the Corporate Bank and the
161 408 69 Investment Bank
140 352
43 54 259 276 — Positive macroeconomic outlook driving
213
165 releases in Stage 1+2 related provisions
97 107
(12) (135) (101) (95)
(38)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021
Deutsche Bank 25
Investor RelationsSimplified legal entity structure
Entities without
Issuing
Deutsche Bank AG entities
direct issuance
Germany activities
Americas EMEA APAC DWS
DB AG DB AG DB AG DB AG
DB AG New
London Singapore Hong Kong Sydney
York Branch
Branch Branch Branch Branch
USA
Great Britain Singapore Hong Kong Australia
Deutsche Bank,
DB USA Deutsche Bank Polska Deutsche DWS Group GmbH &
Sociedad Anónima
Corporation Spólka Akcyjna Securities Inc. Co. KGaA
Española
USA Poland Japan Germany
Spain
Deutsche Bank Deutsche Bank Deutsche Bank
Securities Inc. Società per Azioni (Suisse) SA
USA Italy Switzerland
Deutsche Bank Trust Deutsche Bank BHW Bausparkasse
Company Americas Luxembourg S.A. AG
USA Luxembourg Germany
Deutsche Bank
National Trust
Company
USA
— This chart shows a selection of DB‘s material operating entities that, together with DB‘s global branch network, account
for 90% of the group‘s consolidated revenues
— Deutsche Bank AG has established branch presences across Germany and in international locations such as, inter alia
New York, London, Singapore and Hong Kong
— As the Group’s parent entity, Deutsche Bank AG is the direct or indirect holding company for the Group’s subsidiaries
Deutsche Bank 26
Investor RelationsCautionary 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 projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 12 March 2021 under the heading “Risk Factors.” Copies of this document are readily available upon request or can be downloaded from www.db.com/ir. This presentation also contains non-IFRS financial measures. For a reconciliation to directly comparable figures reported under IFRS, to the extent such reconciliation is not provided in this presentation, refer to the Q1 2021 Financial Data Supplement, which is accompanying this presentation and available at www.db.com/ir. Deutsche Bank 27 Investor Relations
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