Deutsche Bank – Client & Creditor PresentationJuly 2019
(including financials as of 30 June 2019)
Deutsche Bank
Deutsche BankInvestor Relations
Summary
2
Creditor / Counterparty
considerations
— German bail-in law provides greater protection for various creditors, such as depositors, derivative counterparties, beneficiaries of guarantees and letters of credit (LoCs), holders of structured notes and money market instruments
— Trading of Deutsche Bank’s senior preferred CDS allows for a better comparison with peers and better hedging of counterparty risk
— All rating agencies now have separate counterparty obligation ratings, covering - depending on the agency - products such as deposits, derivatives and guarantees/LoCs
Transformation progress
— Refocus on business activities where Deutsche Bank is competitive, can grow and deliver sustainable value to clients and shareholders
— Exit loss making Global Equities and resize Rates business
— Creation of Capital Release Unit to run down RWA and leverage exposure, allowing capital return to shareholders over time
Balance sheet strength
— Strength of the balance sheet gives flexibility to execute the transformation and resources to invest into our core client relationships
— Deutsche Bank is well positioned to meet all current and future regulatory requirements
— Cash and high quality liquid assets account for ~25% of Deutsche Bank’s funded balance sheet, negatively impacting returns but providing further support
— ~75% of the balance sheet is funded by long-term, diversified sources
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Agenda
1
Creditor / counterparty considerations 2
Deutsche Bank today
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Deutsche Bank is …
at the center of our corporate, institutional and private clients’ needs
the risk manager and trusted advisor to our clients
the leading German bank with strong European roots and a global network
aligned with the strengths of our home market economy around trade and investment
Our mission
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Four client-centric businesses positioned to growNew divisional structure to be reported from Q3 2019
One of the leading corporate banks globally
Corporate Bank
CorporateBank
Asset Management
Private Bank
Investment Bank
Market leader in Germany with a global presence and a broad product offering
Leading retail bank in Germany and focused in Europe. Global wealth manager
Asset Management
Private Bank
Investment BankA focused financing, advisory and capital
markets bank
— Leader in 4th largest economy globally
— Trusted advisor to loyal clients
— A leader in digital banking
— Leverage domestic leadership to
expand internationally
— Diversified products with consistent
performance
— Suitable client solutions based on
innovation and investment excellence
— Leading global platform with long-
lasting client relationships
— Our transaction banking services,
financing and lending, and risk
management products are key to
our clients’ every day success
— Globally competitive in our core
markets
— Leading financing business
— Global fixed income offering
— Trusted advisor providing advice
on M&A and debt issuance
5%
2018
>12%
2022
Return on
Tangible Equity
Return on
Tangible Equity
Return on
Tangible Equity
9%
2018 2022
>15%
18%>20%
2018 2022
2%
2018 2022
>6%
Return on
Tangible Equity
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Our decisive actions
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Focus on market leading
businesses with attractive
growth and return profiles
Exit Equities Sales & Trading,
resize Fixed Income, in
particular Rates, and
accelerate the wind-down of
non-strategic assets
Invest in our leading
businesses, further improve
our technology and control
framework
Exit
businesses
Create four client-
centric divisions
Invest in
technology &
growth
Put the Corporate Bank at
the heart of our business
Cut associated RWA by
approximately 40%(1)
Invest € 13bn in
technology by 2022
Create a Capital Release
Unit(3) to free-up resources
to return capital to
shareholders over time
Manage and
liberate capital
Transfer € 74bn in RWA and
€ 288bn of leverage ex-
posure to the Capital Release
Unit to enable capital
distribution
Overhaul our front-to-back
processes and infrastructure
leading to significant cost
and workforce reductions
Cut
costs
Reduce adjusted costs(2)
by € 6bn by 2022
Note: Divisional figures in this presentation showing the pro-forma effect of resegmentation are preliminary, unaudited and subject to change. Throughout this presentation totals may not sum due to rounding differences(1) Excludes operational risk RWA associated with Fixed Income(2) Throughout this presentation, adjusted costs defined as total noninterest expenses excluding the impairment of goodwill and other intangibles, litigation expenses and restructuring and severance
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Our near-term objectives and long-term financial targets
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8% for GroupReturn on Tangible Equity
€ 17bnAdjusted Costs
70%Cost Income Ratio
At least 12.5%CET1 Ratio
2022
~5%Leverage Ratio (fully-loaded)
2019 2020
4.5%4%
€ 21.5bn(1) € 19.5bn
n/a
n/a
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Deutsche Bank at a glance€ bn, unless otherwise stated
IFRS assets 1,436
Common Equity Tier 1 capital
47
Risk-weightedassets
347
Liquidity reserves 246
Liquidity coverageratio
147%
CET1 ratio 13.4%
Leverage ratio 3.9%
Note: Throughout the presentation figures may not add up due to rounding differences. CIB: Corporate & Investment Bank, PCB: Private & Commercial Bank, AM: Asset Management(1) All figures, except IFRS assets are on a CRR / CRD 4 fully loaded, pro forma basis(2) Q2 2019 revenues of € 6.2bn included revenues for Corporate & Other of € 182m and CIB other of € (103)m that are not included for the calculation of the percentages(3) 30 June 2019 leverage exposure of € 1,304bn included Corporate & Other exposure of €26bn (2%) that are not included for the calculation of the percentages
PCB
41%
AM
10%
GTB
15%
O&A
7%
S&T
27%
Key figures(1) Leverage exposure by business(3)Revenues by business(2)
AWM6%
Q2 2019 30 June 2019
PCB
28%
AM
0%
CIB
72%
Group € 6.2bn
Group € 1,304bn
More controllable revenues 65%
30 June 2019
CIB
(G
TB
, O
&A
an
dS
&T
)
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86
28
2007 Q2 20192007 Q2 2019
88
24
2007 Q2 2019
Most stable funding(2)
A safer and more secure organization€ bn, at period end, unless otherwise stated
(1) Liquidity reserves include cash, highly liquid government, agency and government guaranteed bonds and other Central Bank eligible securities(2) Most stable funding as a proportion of the total external funding profile. Most stable funding is defined as funds from Capital Markets & Equity, Retail, Transaction Banking and
Wealth Management deposits(3) Value-at-risk (VaR) is the average risk of loss for Deutsche Bank‘s trading units based on a 99% confidence interval and a one-day holding period (4) Level 3 assets tend to be less liquid instruments where fair value cannot be determined directly by reference to market-observable pricing. Examples would include more-complex
OTC derivatives, distressed debt and highly-structured bonds
2007 Q2 2019
Shareholders’ equity
2007 Q2 2019
Liquidity reserves(1) Avg. Value-at-Risk(3)
In € m
Level 3 assets(4)
Materially higher capital, liquidity and stable funding Risk at record-low levels
1.6x 3.8x 2.4x
37
59
65
246
30%
73%
(67)% (73)%
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(1) Transformation related charges comprise deferred tax asset (DTA) valuation adjustments, goodwill impairments and impairments on software and provision for existing service contracts
(2) Requirement for Minimum Requirement for Eligible Liabilities (MREL) set at 9.14% of Total Liabilities and Own Funds of € 1,105bn
As of 30 Jun 2019
Common Equity Tier 1 capital ratio 13.4%Prudent management
of capital resources
Loss-absorbing capacity € 121bnExcess above MREL
requirement: € 20bn(2)
Liquidity coverage ratio 147%Excess above LCR requirement
of 100%: € 66bn
Loans as a % of deposits 73%High quality loan portfolio
against stable deposits
Average Value-at-Risk € 28mTightly controlled
market risk
Provision for credit losses as a % of loans 14bpsReflects strong underwriting
standards and low risk portfolios
Comment
Strong balance sheet with prudent risk management despite upfront transformation-related charges1)
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A smaller, simpler, less market-sensitive balance sheetFunded balance sheet(1) in € bn, unless otherwise stated
— Smaller balance sheet and
changed business mix driven
by exit/reduction of loss making
businesses
— As a consequence, funding
costs are expected to reduce
— 85-90% of balance sheet
planned to be funded by most
stable sources(3), including
~70% from deposits
— Loan to deposit ratio(4) around
80% to support business
growth
(1) Throughout the presentation the funded balance sheet is defined as IFRS balance sheet adjusted to reflect the funding required after recognizing legal netting agreements, cash collateral received and paid and offsetting pending settlement balances
(2) Trading Assets defined as mark-to-market Derivatives, Non-Derivatives Trading Assets, Cash Margin Receivables, Prime Brokerage Receivables, Reverse Repos(3) Most stable funding as a proportion of the total external funding profile. Most stable funding is defined as funds from Capital Markets & Equity, Retail, Transaction Banking and Wealth
Management deposits(4) Defined as gross accrual loans versus total deposits
26%
24%
41%
35%
Q2 2019Assets
2022 PlanAssets
20%
53%
22%
56%
16%
6%
1,022
Q2 2019Liabilities
12%
67%
13%
7%
2022 PlanLiabilities
~820
1,022
~820
Loans
Liquidity Reserves
Trading and other
assets(2)
Long-termfunding
Trading andother liabilities
Deposits
Equity
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IFRS derivative trading assets and the impact of netting and collateral
Derivatives exposure – headline numbers materially overstate the economic risk
Comments
Note:(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
€ bn, as of 30 June 2019
— Gross notional derivative exposure amounts are not
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
— IFRS balance sheet derivatives trading assets are the
present value of future cash flows owed to DB and as a
result represent the credit risk to the Bank
— Unlike US GAAP, IFRS accounting does not allow for all
Master Netting Agreements(2) to reduce derivative assets
shown on the balance sheet
— DB’s reported IFRS derivative trading assets of €366bn
would fall to €21bn on a net basis, after considering the
Master Netting Agreements in place and collateral
received
— In addition, DB actively hedges its net derivatives trading
exposure to further reduce the economic risk
IFRS
(289)
(8)
Impact of Master Netting
Agreements
Cash Collateral
(47)
22
Financial Instrument Collateral
Net amount
366
Interest Rate
Credit / Other
Currency
Equity/index
(1)
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Loan book compositionIFRS loans at amortized cost, 30 June 2019
34%
10%
7%6%
4%
6%
6%
16%
Consumer Finance
Germanmortgages
Wealth Management
Business Finance
International mortgages
1%
PCB other(1)
PCB non-strategic(2)
1%
CommercialReal Estate(3)
CIB Other(4)
1%
1%
Leveraged DebtCapital Markets
Asset backed securities
Global Transaction Bank
Other
Private & Commercial Bank
Corporate & Investment Bank
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— Well diversified loan portfolio
— ~2/3rd of the loan portfolio is in PCB,
mainly including German retail mortgages
and Wealth Management
— ~1/3rd of the loan portfolio is in CIB,
around half are loans to Global
Transaction Banking counterparties
predominantly investment grade rated
— The remainder comprises well-secured,
mainly asset backed loans, commercial
real estate loans and collateralized
financing as well as relationship loans
managed within a concentration risk
framework
— Deutsche Bank has high underwriting standards
and a defined risk appetite across PCB and CIB
Portfolios
7%
Note: Figures may not sum due to rounding off difference. Loan amounts are gross of allowances(1) PCB other predominantly includes Postbank recourse CRE business and financial securities(2) PCB non-strategic includes a FX-mortgage portfolio in Poland(3) Commercial Real Estate Group in CIB and Postbank non-recourse CRE business(4) CIB Other comprises CIB relationship loans, FIC (excl. ABS & CRE) and Equities (Collateralized financing)
Other
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Litigation update€ bn, period end
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Litigation provisions(1)
Contingent liabilities(1,2)
— Provisions increased by € 0.1bn predominately due to
additional charges relating to the Vestia matter, which
settled on 12 July 2019
— Provisions include approximately € 0.3bn related to
settlements already achieved or agreed in principle,
including Vestia
— Contingent liabilities decreased by € 0.5bn QoQ,
mostly due to a favorable court decision in the
Postbank appraisal proceedings, as well as matters in
which provisions have been taken
Note: Figures reflect current status of individual matters and are subject to potential further developments(1) Includes civil litigation and regulatory enforcement matters(2) Includes possible obligations where an estimate can be made and outflow is more than remote but less than probable for significant matters
2.0
1.2 1.1 1.2
Q2 2019Q4 2017 Q4 2018 Q1 2019
2.7 2.7 2.72.2
Q4 2017 Q4 2018 Q1 2019 Q2 2019
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Agenda
1
Creditor / counterparty considerations 2
Deutsche Bank today
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German insolvency law strengthens position of depositors and counterparties € bn
16
(1) Insured deposits and deposits by credit institutions and investment firms with original maturity <7 days are excluded from bail-in(2) Deposits >€ 100k of large caps, all remaining deposits of financial institutions and the public sector(3) Includes all plain-vanilla senior notes issued on or after 21 July 2018, the terms of which do not indicate that they are non-preferred(4) Includes (i) all plain-vanilla senior notes issued before 21 July 2018 and (ii) all plain-vanilla senior notes issued on or after 21 July 2018 the terms off which explicitly refer to the non-
preferred rank(5) Regulatory capital under fully loaded rules; includes AT1 and T2 capital issued out of subsidiaries to third parties which is eligible until YE 2021. Includes adjustments reflecting TLAC
eligible capital instruments that do not qualify as fully loaded regulatory capital; add-back of regulatory maturity haircut for T2 instruments with a maturity >1 year, G-SIB TLAC holding deduction
— Creditors, including depositors, derivative
counterparties, beneficiaries of guarantees and
LoC’s, structured note holders and money market
instruments sit above € 61bn of equity, Tier 1 and
Tier 2 instruments and also € 59bn of senior non-
preferred debt liable for bail-in
— Deutsche Bank has € 120bn of Total Loss Absorbing
Capacity (TLAC). Senior plain-vanilla debt < 1 year
will not qualify as TLAC but still represents loss-
absorbing capacity47
14
59
€ 120bn of TLAC
Loss participation
only if TLAC is exhausted
Plain-vanillasenior non-preferred notes and Schuldscheine >1 year (unless qualified as preferred deposits)(4)
AT1 / Tier 2 / Adjustments(5)
CET1(5)
Other deposits(2), structured notes, MM instruments, operating liabilities, new plain-vanilla senior preferred notes(3)
Deposits ≤ €100k / short-term liabilities(1)
Deposits > €100k of natural persons / SMEs
30 June 2019
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— A new CDS framework for
German banks was introduced
in May 2019, allowing for
standardized trading of senior
preferred CDS contracts for DB
— The new CDS reflects the actual
risk faced by clients and
counterparties. It reduces cost
of doing business with DB as
well as hedging exposure
exclusively at the senior
preferred-level
— Two month after the inception
of DB’s senior preferred CDS,
spread has gradually tightened
Limited correlation with DB’s cost of funding or issuance plans
Historic CDS spreads do not reflect Deutsche Bank’s counterparty risk or funding costs
Note: Data as of 25 July 2019(1) Referencing non-preferred senior instruments(2) Based on the 4-week moving average issuance spread vs. 3-month Euribor. AT1 instruments excluded from spread calculation(3) Deposits >€ 100k of large caps, all remaining deposits of financial institutions and the public sector
DB 5yr EUR Senior Preferred CDS in bps(1) (lhs)
DB average issuance spread, in bps(2) (lhs)
DB debt issuance, in € bn (rhs)
Comments
DB 5yr EUR Senior Non-preferred CDS in bps(1) (lhs)
10.92.9 4.5 1.2 7.8 1.2
18Q1 18Q2 18Q3 18Q4 19Q1 19Q2
0
10
20
30
40
50
60
0
50
100
150
200
250
New senior preferred CDS
bps € bn
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All rating agencies view the successful execution on transformation agenda as creditor positive
— Following our strategic update, all
rating agencies affirmed their
ratings
— All agencies argue that execution
of the plan would lead to rating
updates
— At this early stage they focus on
the execution risk involved and
therefore expect evidence of quick
progress
Note: Further information on Deutsche Bank ratings (including the latest reports) can be obtained on the homepage: https://www.db.com/ir/en/current-ratings.htm
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Note: Ratings as of 25 July 2019(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
BBB+(1) BBB+A3 A (high)
Tier 2
Senior unse-cured
Ba2
A3
Counterparty obligations(e.g. Deposits / Structured
Notes / Derivatives / Swaps)
AT1
Legacy T1 B1
B1
BB+
BBB+
B+
B+
BBB-
BBB+
BB-
B+
-
A (low)
-
-
Preferred(2)
Non-preferred Baa3 BBB- BBB BBB (high)
Short-term P-2 A-2 F2 R-1 (low)
Lo
ng
-te
rm
Outlook Negative Stable Evolving Negative
senior to loss-absorbing capacity
part of loss-absorbing capacity
Current Ratings
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Rating landscape – senior debt ratings
Note: Data from company information / rating agencies, as of 17 July 2019. Outcome of short-term ratings may differ given agencies have more than one linkage between long-term and short-term rating
(1) Senior debt instruments that are either issued out of the Operating Company (US, UK and Swiss banks) or statutorily rank pari passu with other senior bank claims like deposits or money market instruments
(2) Senior debt instruments that are either issued out of the Holding Company (US, UK and Swiss banks) or statutorily rank junior to other senior claims against the bank like deposits or money market instruments (e.g. junior senior unsecured debt classification from Moody’s and senior subordinated from S&P)
Holding company / Non-preferred Senior(2)
Moody‘s S&P
Operating company / Preferred Senior(1)
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/BBB
P/A-3 Baa3/BBB-
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Cautionary statements
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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 22 March 2019 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 Q2 2019
Financial Data Supplement, which is accompanying this presentation and available at www.db.com/ir.