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Deutsche Bank
Deutsche Bank: Capital liquidityDeutsche Bank: Capital, liquidity and funding Autonomous German Credit Mini Conference, London
Alexander von zur Mühlen, Group Treasurer
3 July 2013y
Capital is central to deliver on DB’s Strategy 2015+
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 2
Comprehensively strengthening capital
Deutsche Bank capital structure Generic future capital structure Basel 3 minimum requirementsBasel
2.5Basel 3 (fully loaded)(1)
pro-forma
Total capital ratio: 17.7%
Tier 1 ratio: 16.0%3.8%
hybrid T1
2.0%T2(5)
3.9%hybrid T1
1.7% T2
T2/
CET 1 ti 12 1%11.4%CET1
~0.7%
2.0%
≤ 2.5%
1.5%
12.1%
Issuance of EUR 2.0 bn AT1and T2 CRR compliant capital over the next 12 months
G-SIB additional buffer requirement(2),(3)
Capital conservation
Additional Tier 1
Tier 2
Ex-rightsissue
T2/Addtional
T1
CET 1 ratio: 12.1% ≥10% CET1
CET1 (6,7)
4.5%
2.5%CET 1 8.8%CET 1
Capital conservation buffer(2),(4)
Minimum CET1 requirement
~9.5% CET 1 ratio
Note: Countercyclical buffer not considered(1) Hybrid Tier 1 and Tier 2 as per applicable phase-in rules(2) Pro-rata phased-in between 1 January 2016 and year-end 2018, becoming fully effective on 1 January 2019(3) Gl b l t i ll i t t b k b ff A t l t t t fi d t l l l d d l t ’ j d t f l b l t i i t t th ti
1Q2013 1Q2013pro-forma
Jan 2019
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 3
(3) Global systemically important banks buffer: Actual amount not yet fixed, actual level depends on regulators’ judgment of global systemic importance at the time; based on preliminary judgment buffer varies between 1% and 2.5%, further bucket with 3.5% buffer currently not populated
(4) Should be held outside periods of stress; can be drawn down in periods of stress if discretionary distributions of earnings are reduced
Deutsche Bank’s capitalization in peer context
B3 CET 1 ratio in peer context
31 March 2013, in%(2)
B3 CET 1 ratio development
Pro-forma B3 CT1 ratio (fully loaded), in %
10.1 10.0 9.8 9.4 9.3 9.0 8.9 8.7 8.6 8.4
~9.6(2)
Peer (1)
average9
10
0.4+0.4
9.6%(2)
9.2%
9.2%8.9%
8.6%
2 0
1.1
1.8
7
8 8.0% 8.8%
7.8%
2.0
5
6 6.8%
6.0%
GS JPM CS BARUBS CitiBoABNP5
30 Jun2012
30 Sep2012
31 Dec2012
31 Mar2013
31 Mar2013
pro-forma
MS SOC
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 4
(1) BoA, Citi, JPM, GS, MS, CS, UBS, BAR, SocGen, BNP(2) Including net impact of ex-rights issue of EUR 2.9 bnSource: Company data
T i hi hli h
Realisation of €3.0bn capital increase via “ex-rights” issuance Sh i iTransaction highlights Share price reaction
2,500
3,000
35.0
35.5
36.0
XETRA trading before launchLate trading at launch XETRA trading after pricing Ex-rights issue of 90m shares via accelerated bookbuilding
€32.90 placement price determined prior to market opening representing 0% discount to previous close
(1)
1,000
1,500
2,000
33.0
33.5
34.0
34.5
Volume (000s)Sh
are
price
(€)
Placement price: €32.90
No comparable(1) successful pricing observable from European ‘ex-rights’ capital increases for the last 24 months
Following the capital increase DB’s share price jumped upon market opening on 30 April, reaching an intraday high of €35.70 and closing 6.1% up at €34.91
0
500
31.5
32.0
32.5
Volume (rhs) Share price (lhs)
Price guidance: €32.00 – 32.90
29-Apr-13 09:00 – 17:35 30-Apr-13 09:00 – 17:35 29-Apr-13 17:35 – 20:00
High trading volume of 27.6m shares (Xetra) on 30 April compared to an average volume of 7m(2)
Gross proceeds of €2,961m resulting in 1Q13 pro-forma fully loaded CT1 ratio increase from 8.8% to 9.6%
f
Source: Bloomberg
Impact 1Q13 on key capital ratios The avoidance of any pricing discount contributed approx. €175m to CT1 capital (~4bp of CT1 ratio)
Simulated EpS shows dilution of 9% from additional shares; nonetheless market cap increase of ~€5bn shows re-rating of DB shares
9.6%21x
CT1 ratio(fully loaded)
Leverage(adjusted)
Endorsement from markets with DB upgraded by six equity analysts
Positive feedback from all rating agencies
8.8%21x 20x
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency.
1Q13 1Q13pro-forma incl. “ex-rights”
pro-forma incl. “ex-rights”(1) European ‘ex-rights’ transactions exceeding €500m (2) over period of 1 year
5
Integrated framework to liquidity and funding
Operational Tactical StrategicOperational Tactical Strategic
tives
Daily – ongoing
– Safeguard liquidity position
1 day – 1 year
– Access to wholesale funding
1 year – 10 year
– Balanced term liquidity profile
Obj
ec
Safeguard liquidity position (intraday / end of day)
– Collateral / access to central bank
Access to wholesale funding (secured and unsecured)
– Access to liquid assets on B/S (going concern and stress)
Balanced term liquidity profile– Access to capital markets – Funding diversification – Support DB’s credit curve
Limit Setting
Wholesale FundingMaximum Cash Outflowpr
oach
es
Intraday / End-of-
Day
Liquidity PlanningStress Testing
Liquidity Reserves
Issuance Plan /
Funding Matrix
Ap
y
Liquidity Overview Transfer Pricing Issuance Plan /
Funding Strategy
Safeguard our ability to meet all payment obligations when they come due
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency.
Safeguard our ability to meet all payment obligations when they come due
6
Overview of liquidity reserves(1)
% f t t l
Development through the crisisIn EUR bn
5%% of total adjusted assets 12% 17% 19%
3.5x
19%
150
223 232 230
65
31 Dec 2007 31 Dec 2010 31 Dec 2011 31 Dec 2012 31 Mar 2013
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 7
(1) The bank's liquidity reserves include (a) available excess cash held primarily at central banks, (b) unencumbered central bank eligible business inventory, as well as (c) the strategic liquidity reserve of highly liquid government securities and other central bank eligible assets. Position before Dec 2012 excludes
Funding Profile
31 December 2007 31 March 2013
Capital Markets and Equity1 %
Secured Funding and Shorts
Financing Vehicles2%
61% from most stable funding sources
30% from most stablefunding sources(1)
Capital Markets and Equity
12%
Financing Vehicles
5%
17%
Retail
Discretionary Wholesale
9%
Shorts19%
12%
Retail11%
Transaction Banking
7%
Secured Funding and
Shorts39%
26%
Transaction Banking17%
Other Customers10%Other
Customers13%
Discretionary Wholesale
13%
Total: EUR 1,107 bnTotal: EUR 1,206 bn
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 8
(1) Dec 2007 has been rebased to ensure consistency with 31 March 2013 presentation and includes Postbank
Issuance strategyCost-effective funding a competitive advantageCost effective funding a competitive advantage
— 2013 Issuance Plan of EUR 18bn
Historical funding activities 2013 funding activitiesIn EUR bn
2
4
Senior Covered Tier 1 and Tier 2— Total issuance YTD EUR 12.2bn at avg. spread of
L+44 and avg. tenor of 4.7 years
— 65% via retail networks and private placement, complemented by EUR 1 25bn 2 year and EUR
45 50
20 21 22
1 2 3
2
2 2
complemented by EUR 1.25bn 2 year and EUR 1.75bn 10 year benchmarks
— Funding spreads remain largely unchanged since beginning of year despite ongoing Eurozone crisis
20 21 22 16
2007 2008 2009 2010 2011 2012
— LT2 issuance USD 1.5bn, callable in year 10– DB opens new market segment; first ever benchmark
callable Tier 2 issue in US market– Total order book of USD 5bn, primarily US asset
managers— Consistent access to capital markets during managers– Timing: most attractive issuance point in >2 years; final
pricing of $L+225; currently $L+272– DB‘s first capital issue structured to comply with CRD IV
/ CRR
Consistent access to capital markets during challenging market conditions
— Funding demand stable/declining since 2009
— Figures include Postbank issuance for 2010
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 9
gonwards
Case Study: USD 1.5 bn 4.296% 15NC10 Lower Tier 2
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 10
Balanced Liquidity Profile
Senior Covered Tier 1 and Tier 2(2)
300
Liquidity Profile31 March 13 (in EUR bn)
Capital markets maturity profile(1)
31 March 13 (in EUR bn)
31
12
3
23
11
14
150
200
250
300Assets Equity
Liabilities Surplus
14 13 11 12
5 3 2 2 2 3
1032 3 3 1 0
10 1
0 0 1
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+0
50
100
>1yr >2yr >3yr >4yr >5yr >6yr >7yr >8yr >9yr >10yr
─ Well laddered maturity profile─ No more than EUR 20bn maturing in any bucket for
upcoming years
y y y y y y y y y y
─ Net term liquidity surplus in excess of EUR 20bn in all buckets
─ Reflects all assets and liabilities across the maturity ─ Maturities in future years allow management of
liquidity requirements in light of NCOU derisking─ EUR 14bn of Tier 1 and Tier 2 inflate 2024+ bucket;
call decisions may partially accelerate maturities
yprofile, either on a modelled or contractual basis depending on underlying liquidity characteristics
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 11
(1) Includes Postbank(2) Tier 1 and Tier 2 maturities as per contractual maturity date
Deutsche Bank
Additional InformationAdditional Information
3 July 2013y
NCOU: Total adjusted assets(1)
31 Dec 2012 31 Mar 2013In EUR bnIn EUR bn
IAS 39 re-classifiedassetsCI
AWM
17.015.41.8
IAS 39 re-classifiedassetsCI
AWM
15.315.6
1.5
Other loans
Monolines
PBC: Other7.3
8 0
4.2 Other loans
Monolines
PBC: Other 6.1
7.4
4.0
Other trading
Monolines
Credit Trading –Correlation Book
PBC: Postbanknon-core
Other
8.0
1.5
12.35.4
22.1
Other trading
Monolines
Credit Trading –Correlation Book
PBC: Postbanknon-core
Other
1.0
10.96.6
17.4
positionsOther
EUR 95 bnpositionsOther
EUR 86 bn
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 13
(1) Total assets according to IFRS adjusted for netting of derivatives and certain other components
Balance sheet and risk weighted assets
272
RWA(1) vs. balance sheet (adj. assets)In EUR bn, as of 31 Mar 2013
XX RWA density incl. operational riskXX RWA density excl. operational risk
1,225272 ~22%
~27%
Avg RWA density
161
2516258Market Risk RWA Non-derivativetrading assets
,
~25%
23%
Avg. RWA density
~27%
395
72
161
31
37
Derivatives(2)
Other
~43%
~23%
~35%
195
395
138
215Credit Risk RWA
Lending(3)
Reverse repo /securities
~35%
~1%
1502 2
Note: Figures may not add up due to rounding differences(1) RWA excludes Operational Risk RWA of EUR 53 bn
RWA Balance SheetRWA
borrowedCash and deposits
with banks ~1%
~1%~1%
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency.
(1) RWA excludes Operational Risk RWA of EUR 53 bn(2) Excludes any related Market Risk RWA which has been fully allocated to non-derivatives trading assets(3) RWA includes EUR 32 bn RWA for lending commitments and contingent liabilities
14
Total assets (adjusted)In EUR bn
70 721,209 1,225Derivatives post-
netting
In EUR bn
Positive market valuesfrom derivatives
Derivatives post-netting
127 129 27 25
228 226Trading assets254Trading assets251
Trading securities
Reverse repos / securities borrowed
Financial assets at FV through P&L
Other trading assets
397 395
15 1918 18127
Reverse repos / securities188
Net loans
securities borrowed
Other des. at FVLoans des. at FV
Reverse repos / securities195
149 150
397borrowed
Cash and deposits with banks
borrowed
102 10316 2161 66 Securities borrowed / reverse repos
Other(1)Brokerage & securities rel. receivables
31 Dec 2012 31 Mar 2013
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency.
Note: Figures may not add up due to rounding differences(1) Incl. financial assets AfS, equity method investments, property and equipment, goodwill and other intangible assets, income tax assets and other
15
Cautionary statements
This presentation contains forward-looking statements. Forward-looking statements are statements that are not historicalfacts; they include statements about our beliefs and expectations and the assumptions underlying them. These; y p p y gstatements are based on plans, estimates and projections as they are currently available to the management of DeutscheBank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation toupdate 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 couldBy their very nature, forward looking statements involve risks and uncertainties. A number of important factors couldtherefore cause actual results to differ materially from those contained in any forward-looking statement. Such factorsinclude the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which wederive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development ofasset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of ourstrategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced inour filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form20-F of 15 April 2013 under the heading “Risk Factors.” Copies of this document are readily available upon request orcan be downloaded from www.db.com/ir.
This presentation also contains non-IFRS financial measures. For a reconciliation to directly comparable figures reportedunder IFRS, to the extent such reconciliation is not provided in this presentation, refer to the 1Q2013 Financial DataSupplement, which is accompanying this presentation and available at www.db.com/ir.
Alexander von zur MühlenDeutsche BankInvestor Relations
financial transparency. 16
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