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Deutsche Bank Aktiengesellschaft (DB)

Participants
James Rivett Head-Investor Relations
Christian Sewing Chief Executive Officer
James von Moltke Chief Financial Officer
Andrew Lim Societe Generale
Jon Peace Credit Suisse
Jernej Omahen Goldman Sachs
Daniele Brupbacher UBS
Adam Terelak Mediobanca
Stuart Graham Autonomous Research
Piers Brown HSBC
Magdalena Stoklosa Morgan Stanley
Jeremy Sigee Exane BNP Paribas
Andrew Coombs Citi
Amit Goel Barclays
Anke Reingen RBC
Call transcript
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James Rivett

Thank you all for joining us for our Preliminary Fourth Quarter Results Call.

As usual on our call, our CEO, Christian Sewing will speak first, followed by our Chief Financial Officer, James von Moltke. The presentation, as always, is available for download in the Investor Relations section of our website, db.com.

Before we get started, let me just remind you that the presentation contains forward-looking statements, which may not develop as we currently expect. We therefore ask you to take notice of the precautionary warning at the end of our materials. hand Christian. me let that, over to With

Christian Sewing

of This Thank well. discussing It’s A journey. warm In with our our milestone me as welcome from you. results a quarters over despite our July key targets said XXXX six milestones quarter full you, over the important. an months, transformation and critically COVID-XX. in the execution we be challenges important We and in last James. fourth and the year XX is XXXX, first pleasure XXXX that would hit to be all

now Phase and while moving remaining We our are businesses That costs on into capital. transformation, profitability. delivering sustainable disciplined our of growing means X

picture. We you, they sustainable in offset full delivered despite the Investment rate as The in January saw costs, were and the Bank, quarter basis Bank told our quarter and growth us. And, levies. supports interest in reductions successfully performance and in have XX Private bank strong full pre excluding we performance the fourth transformation the Bank facing. our this Corporate reengaged year further and clients the we Our strengthens and confirms faced, adjusted and a year-on-year of headwinds and profitable challenges we in the year. post-tax quarters charges consecutive are on fourth have We

Release profitability million. transformation credit improved in reported of continuing Capital Unit. €X profit provisions The for we the billion offset pre-tax full income continued the losses have group net of at de-risking higher For €XXX level, year Core the effects, and and the in Bank

is capital to And that ratios continue aside us and while well support remain we challenging, We the can self-fund any strong put our clients. doubts have to to position liquidity our transformation. likely environment also

This reduction hit over was more cost years. billion in this the period. a target, Let by driven headcount Slide We €X.X of in our X. milestones starting reductions, workforce items with now go through X% in €XX.X delivery by our billion our with these XXXX detail two on me part adjusted down

management, of the credit range a the losses We demonstrated of estimated basis at April, the middle of ratio our of strong said of risk X.X% are year-end. At around for the have at pandemic. points provisions in in XXXX of start year ended Deep expected we the year-end at aimed that XX% the We a loans we for leverage Investor ratio we XX CETX and Dive, we X.X%.

is XX.X%. billion certain in Capital reflects Release stronger outperformance ratio our delay against particular fact, year with below RWA, at in our in the regulatory €XX items The of de-risking and €XX the Unit stronger target. ended Unit. ratio In part plans Release billion The a in Capital the

the In a behind a elevate Most X. will we to continue the take transformation us, investment to disciplined against Google cloud-based of these continued to against and We milestones have and made our XX% our against the good we volumes Delivery July agenda, financial targets €XX Slide progress. efficient, on our that these environment. XXXX, targets to our with we would by over execution already we target. which partnership end IT sustainability supported deliver billion of detail put, all targets we by in at Simply identified recently, make and signed financing Cloud, year-end, €XX compared of more XXXX. billion progress the with with is effects strategic ongoing we XXXX of as multi-year have our infrastructure

Germany. employee will we rationalize interest representatives, to and signed operations head Postbank also sale our reductions. with agreed of allow the and helps In our office workforce further accelerate which our the We which cost in Systems Bank, closed of and Private balances us

more will which our serving our income. additional German clients. on so will extended also XXXX focus fee Insurance cost ahead Business from greater Banking XXX,XXX we gives anticipated and achieve in than the generate and Zurich business Bank on core of transformation Being the The with track initiatives drive XXX in We or insurance XXX% over savings Corporate our of small partnerships XXXX. that will far our achieved of our key creation the Overall, confidence we Talanx milestones objectives have us goals. our

target. Bank had as is Our show of value agreements businesses against By strategic slide. from related The deposit their considerable repricing, €XXX as next to offset we several These the of December. progress you made quarter. €XX rate discussed we the generated headwinds ways, interest an of third up we we accounts ahead On revenue positive of the in are in charging working than €XX objectives have also to with in on more million. billion, a agreements impact annualized XXXX, end well with billion Corporate

of been half outperformed in our growth e-commerce the and also performance XX% have more U.S. and be favorable, than and platform second a grew but Asia-Pacific in refocused our volumes we the and our clients industry have with with both FIC We The engaged FinTech, XXXX, grew increase for year, the peers in X% areas a of we by around We year-on-year clients region. Origination Investment growth the payment Bank volumes, In strong this business Yes, very Advisory. strength markets captured well revenues to we business our terms. and of average market-driven. the have in growth example see model. XX% in and

Client also in performance a double-digit growth the revenue in underpin has trend result, in this strength saw and FIC. we As in year-on-year helped January. FIC continued has reengagement

see volumes billion higher has successful Bank repricing from of other fees explained to rate and in Combination million with XXXX in As fee added expect and including offsetting sustainable repricing as €XX we Bank XXXX, products, income, billion In are the growth In loans investment €X of interest Investor as initiatives. revenues. normalize, net substantial revenues. net headwinds full achieved were account markets fee billion €XX conversions Management, of Private in benefits initiatives grow €XXX client we as deposits. to billion also of which at portion growth €XX in assets. even billion delivered a converting Asset DWS commission inflows in XXXX. €X Deep of we and year, ESG grew inflows including Dive, part of strategy and in by The new the net These of we our Investment was

you the Assets core is short, business year-end, increasingly €XXX X. transformation that’s paying Slide to in XXXX. July all is execution rose grow can under than performance model businesses did. When and billion our revenues launched €XX XXXX, In at our to on at we visible This Management our we the refocused see of dynamics levels set in out pre-crisis off. four in higher that end show we as then billion what revenue stabilize,

exit the us in €XX.X We billion. puts in have Dive offset increased laid our we Investor close growth target our more increased This the that XXXX, Group return as businesses the revenues the tangible Deep out of by billion equity €XXX as equities to Core on X% million core to have XXXX. Bank at than plan of over path revenues trading. to part from in €XX.X X% by

FIC principally which and on to has to the growth The was come on Private conditions and capitalize market Investment of business. favorable from able this Corporate strategic deliver earlier, discussed Bank our our As refocused and Bank, would the rates, to underlying feed to consistent line, interest lower keep top we revenues with primarily stable rate headwinds, essentially offset expect successfully curve. as headwinds growth the current Bank interest forward year-on-year soften, through transformation

shows reduced target good XXXX. our progress X. €XX.X consecutive excluding XXXX, on In and becoming in the fees path have reimbursement XX visible we Finance year-on-year in expenses slightly related XXXX and results levies, have can X%. puts year. Prime to eligible made for costs Slide non-recurrence billion, bank transformation of the costs, targeted as for was costs summary, transformation strategic Disciplined you lower, due businesses by performance our to certain Management in In Asset Slide we see execution our their adjusted this us This executed excluding quarters. reduced to X on including reducing is increasingly on adjusted objectives. all adjusted charges charges we investments of a

sustainable next operating our reducing positive to time, the revenues As at and, phase I same generating improve costs. means That growing earlier, the by said of profitability. leverage is transformation

well The generated improvements in significant as have improved and line restructuring goodwill is X, Core our at in Group the impact to wind-down we transformation time, and should operating progress of of flow impairments losses to make provisions Bank transformation to Adjusted as our Core positions Capital Core over to year-end, severance, leverage the driven XXXX of items, the increasingly we balance both performance up double-digit billion. Group’s sheet And Release the negative Bank on businesses. strength charges, bottom agenda has credit of the €X.X as offset We Bank Unit. at Bank’s for and profitability in revenue our Slide continue on positive Core has operating us profitability. leverage The profit XX% Bank levels. further Core which the in also more grow specific XXXX, for well The normalize. discuss pre-tax

points flat Common approximately Our XXX was requirements. year-on-year at X and above XX.X%, ratio basis Tier Equity regulatory

liquidity Our billion. reserves €XXX were

at of billion Our buffer equivalent which requirements. liquidity ratio XXX%, is a was above coverage to €XX

is deploy to capital As what a in we and environment. uncertain liquidity can strength our clients result, support an still

June both loan last December within that high-quality our we us at credit in explained Finally, deliver to and in year, on as enabled have benefited disciplined and provisions for book losses. a Dive Risk a Deep risk framework from we guidance

every key our towards us visibility fully Our gives on and good in track transformation our XXXX XXXX performance is on targets. dimension,

quarters outlook let hand over where after our for we I stand Before six sum XXXX. me to James, up and

well Trust us to make coming wealth fundamental our and is strategy from which highest This increase we challenging This trends use of the is and is preservation, setup to volatile. navigate we Investor level Deep to reengaging of they which the we are financing, are of. to refocused to increased sustainable also the localization and years. trends the These sustainability Dive, clearly January. clients operating see strong us offers to financing by the off. we expect are our since environment, include visible paying Momentum that benefit points will expect revenues. our XXXX. business allows employees in Clients motivated. demand, opportunities the well At global continue highlighted at positions already in and and through remain Our

cost cost put us remains return restructuring XXXX and priority. Delivery will away. Our focus equity as target on tangible alone our on fall to top against a reduction our costs close targets transformation

planned XXXX, For are reduction with target combined XXXX group with of adjusted €XX.X consistent costs costs investments billion. our the our

decline to the year compared will elevated provisions this assume periods. credit Our compared plans pre-COVID-XX remain for losses but XXXX, to

manage to continue will We conservatively. sheet our balance

position Our strong liquidity meet any us challenges. and to capital well

achieve our equity target shareholders. return distribution to With placed As to James. a well X% on let result, and capital to we me feel that, in XXXX tangible over hand

James von Moltke

you, Thank Christian.

year start me financial with to prior a Let compared our summary on XX. Slide performance of the

and on Christian profit credit €XXX are fourth of quarter said, Adjusting grew XX of which the a declined basis. X% severance and on by at payment-related quarter that costs. long-term. non-interest and sustainable negative our by reflecting effects of restructuring quarter, was the points we million million was transaction benefit generated the the share-based our Dive, the of increased charges. Revenues leverage we risk specific €XXX pre-tax tax by revenue on in specific million Operating items, and related restructuring impact and deductible comments mainly On by sale and million, focused in severance the negative infrastructure As and Deep €XXX included Slide delivering X% tax for €XXX due were reduced items. detailed Provisions This million €XXX growing of XX%, strong helps are lower on severance profitability at a this had by to reported revenues reducing XX% decommissioning to in impact Investor charges. restructuring with principally Results legacy Systems. the accelerate believe and fourth the leverage million price by was basis, expenses Postbank transformation in €XX a of revenues and Consistent €XX movements. release reduces the X%. XX for we the and in XX%. costs costs to revenue to We appendix, stranded The provisions and charges, of quarter million basis share or litigation non-tax this a and equivalent operating loans. of the revenues of cost positive transformation losses driven excluding of

is €XX.XX, was share Our FX offset This on mainly driven was adjusted lower year. equity Bank by for by a count. due Core for fourth share per value effects, X.X% a the return tangible Tangible negative the book to X.X% decrease. quarter reduction X% full translation partially and OCI,

For excluding pre-tax our year Provision of average transformation €X.X losses line the severance for year, €X of at effective full year, and charges, profit the €X.X or credit we billion items. rate for was restructuring points XX%. expectations loans. billion XX tax specific in a full revenue generated and billion, basis full was The with

year. basis, reimbursement the to million On to targets. drivers from adjusted we our the quarter €XXX costs, charges, Now let’s include charges, €XX.X of XX costs and of quarter, full €X.X cost related for in at year. turn fourth transformation the costs which fourth Finance to the Page reduced X% versus or in prior million €XX reductions. billion eligible million are Prime In expenses of excluding this €XXX by specific and transformation the look adjusted Adjusted excluded billion adjusted were

make continuing to categories all in IT continue in controls. costs We reducing our while to major invest and progress across

basis XX given to overlay driven We the Now Stage and €X.X points established uncertainties our XX two our the is the remained in million for environment. basis Bank. on fourth period in fourth management changes declined in but of more basis. guidance, for releases Including quarter, by Bank since XX% elevated in with in fourth the more remained we to the Slide the an for taken equivalent for normalized in the ended of allowance credit COVID-XX-related stage in by Consistent quarter macroeconomic let’s in the provisions macroeconomic The consensus move loans points quarter quarter. outlook Provisions discuss and quarter provisions losses, we loan positive of continued the credit third loans. at quarter. retained €XXX to to quarter, Investment decline were third the billion XXX provisions three with annualized prior levels provisions one the the equivalent reflecting in provisions, Private losses. the losses

capital to on Slide Turning XX.

equivalent of year This this our benefits in XX% Release Christian highlighted, billion. CETX first which to deployment the inflation ratio RWA XXXX, in assumption lower end Unit Deep XX to conclude Approximately see behind expected to full came The to higher-than-expected ratio above inflation the first was intangibles and we With the from RWA quarter. XXXX at half notably this year, XX regulatory our points Models, from outperformance quarter approximately fourth of in inflation income of points changes which came approximately provided the and Capital that pro €X forma capital. of and reductions occur risk-weighted year moderate from A increases to more slower expect of our points and basis occur XXXX, related basis basis is in numerator CETX the we we faster-than-anticipated regulatory including is all from of came from much in further of guidance net in the of a delays XX regulatory relating billion us now of of to As assets, at to second series the of approximately of XXXX, TRIM software the XX.X% points inflation, half higher-than-expected the in items. expected the regulatory expected CETX XX.X%. Core first Investor a Targeted €XX inflation the balance XXXX. for benefits, Bank. Dive. full to the the slightly in Internal Nearly XX basis the half impact items to other takes principally Review of

just effects by points regulatory-driven positive X.X%, and improved Our the capital reflecting I XX other to leverage described. ratio basis

in with we track Prime ratio Our X.X%. XX from million our forma business, businesses, taking balances, was year. With including Profit further ratio, which meet the our tax to performance well into €XXX This XXXX, our full starting Bank now later before ECB puts Finance for year-end finalize that, will on Slide of was year. Corporate on turn this us leverage to the XX. let’s by pro basis leverage target transfer of the X.X% points a account

specific €XXX contributions, charges Excluding stable the return and in on items, QX. with adjusted including million This equity was before the for quarterly post-tax and tangible tax severance, million equates to quarter. a restructuring profit adjusted €XXX X.X% transformation

in billion of revenues basis. year generating benefits. lower, lower agreements and Loans for on costs and base. and place Excluding €XX were specific for offset to full quarter, full €XXX X% quarter, were declined credit items restructuring charging leverage revenues than reflecting in transformation of driven initiatives, reductions declined were the reflecting basis, year-on-year headwinds, deposit the Adjusted Provisions and This transformation million an a headcount XXXX. charging slightly quarter deposits the FX-adjusted translation, flat with of on deposits, an XX% by XXXX. excluding number of the accounts reflecting cost operating were actions for for were flat by the on Bank the by full year year-end, Corporate management €XX and of Non-interest FX small agreements. year, approximately charges X% principally translation expenses. impact optimize €XXX idiosyncratic €X.X billion At for through year more on X% interest and rate in the The of full XX% events. FX produced expenses charges million for million while annualized losses the largely

XXXX to the XXXX and objectives, with in trajectory the relative performance pleased XXXX although in our Bank will closer in XXXX. performance the We’re of Corporate be

movements management were revenues essentially XX. revenues performance of in FX Transaction on Securities revenues or Cash flat, cash were adjusted FX by in revenues, an impact this increased and with on underlying Commercial translation, management declined X% year-on-year. Lending deposit result solid markets. and Lending, further Finance quarter with both Slide excluding supported sequentially reductions the interest of repricing and business items. flat, of fourth Services deposit the key the a X%, by the as X% We initiatives. and to Banking Banking momentum Management rollout by headwinds EMEA. Turning Services and Trust episodic volumes declined and business, saw offset as revenues also basis. the revenues corporate positive Global improving excluding essentially in of net balance Agency sheet FX rate in translation and excluding Germany rate of repricing Trade interest in Systems, sale impact particularly Postbank in

Turning disciplined and Full XX% on X% Non-interest declined expenses excluding lower by adjusted as the XX% Investment by declined costs, Bank charges, in year and market the Adjusted full excluding in expense management and in the transformation of and benefits to XX%, the strong engagement. the client items, Slide reflecting restructuring quarter, and lower fourth fourth full activity reduced allocations, increased costs, revenues, benefits. translation litigation. strong strategic XX. lower reflecting as year driven by quarter, well specific transformation FX severance the by our and year in

in principally primarily Risk related increased to regulatory by result, Bank inflation. Leverage of or Investment across higher Sales Investment of return leverage equity year-on-year XX% balances tangible XXXX portfolio. €XXX year, declined higher COVID-XX XX million a generated with weighted of Fixed basis were XX%. disciplined As declined, to for increased year The Loan ratio the in principally cost & XX%. and of credit support operating due post-tax the to loans, losses a activity clients. Bank XXXX reflecting impairments. to the exposure income in €X.X management billion Trading compared to Provisions in a risk pre-tax profit reflecting the prior on average points driven assets Income

year strong excluding higher, Income conditions. specific Investment Investment engagement Credit items Turning repositioning. Bank revenue the to Slide client compared to Bank Revenues increased benefit & from Fixed our quarter following revenues in driven trading to the Trading in prior specific by Sales XX%. fourth XX. market were by reengagement strategic significantly continued constructive items client excluding period and on The performance

by growth increased across as volatility higher higher were outperformed consecutive strong impact all specific Europe flow three quarter Rates activity where in regions the reflecting Emerging businesses. driven performance Financing general in and by pool. well, of reduction and in flat, in flat year-on-year, revenues derivatives client in a revenues, by were the performed essentially U.S. business macro strength of has FX the business. items our market continued the Advisory Our Origination offset was were revenues Revenues FX translation. our XX%, fee fourth excluding the the improvements revenue excluding

in rank increased in Importantly, performance driven Equity our were significantly Debt. Growth reflected higher, share Debt a Grade Special Company we regained gains origination Acquisition the number by and revenues activity. Purpose market. in Origination activity Investment in one market strong home

were increased also significantly revenues EMEA. mainly activity, Advisory by in higher, driven Finally,

measures for synergies X% below year-on-year, including the X%, as goodwill litigation German margin transformation in well declined from as largely charges, declined compression higher offset approximately on €XXX and charges revenues and transformation-related to organizational specific reached reductions XXXX items year-end. on absorbing improvements Adjusted planning, COVID-XX. reduction excluding million, the the of made workforce profit offset driven costs. other from by Private Slide progress volumes from including our tax primarily impacts Noninterest specific expenses market in objectives, reflecting the Consistent XXXX income, Bank Turning we full the structural previous €XXX benefits and €XXX a fee costs, year to challenging substantial environment. in Bank operational prior that ongoing year. million despite Private a and excluding deposit pre-tax We effects integration effects. with the XX. and broadly Full excluding repricing, at revenues the The million to synergies with continued grew loss cost as our by compared in German items before XX,XXX stable generated from and of stable was merger flat, a impairment million to €XXX the were more Adjusted ongoing year. negative year, transformation-related

inflows, Germany. XX rationalization client achieved and led we pandemic. were X% points XXXX. model further of investment the products prior beneficial agreed cost The and Flat recalibrations. of Provisions fourth also will We net loans to €XXX We representatives, of operating revenues year million head reductions leverage new balances €XX with consecutive of interest billion in office for allow sales quarter billion. in and our included and in or with operations our higher €XX reflects impacts year which basis The loans. on of net increase year the originated from from of impacts credit losses mainly portfolio employee

the on flows in commission earlier. investment For International Systems Private higher Postbank loans the the of including interest quarter. reported items negative the highlighted and Germany reflecting fourth inflows net and revenue X% revenues of excluding billion items Revenues from while The margin impacts quarter, X% adjusted in billion now increased pandemic International by rates quarter. the with mainly Management hiring lower products compression periods. Bank, and and revenues net growth declined Sal. million, products by FX by by income excluding new revenues and growth Private X% lending €X Banking, continued, specific increased to the the investment basis, compression. of costs margin charges and flat, COVID-XX revenues €X Private excluding business activity. on and and impact broadly Bank the quarter, declined business Banking the workout excluding products by offset turn from We the of in in in granted and in client were X% of Business investment Private deposit XX%. of Growth transformation headwinds adjusted offset on attracted by in a in details prior new continued declined a was deposit X% on partly Slide related and Wealth of XX. fee impact net sale €X negative insurance Bank by revenues related Oppenheim Personal to impact €X relationship In activities. and the from declined specific manager loans as net client billion I revenues In net billion to an in €XX basis

Page earned the Noninterest have XXXX. of excluding performed Multi-Asset fees as XX%, €XXX and ��� by flows million full stand-alone not wide at Alternatives from will declined million in To compression. were are fees costs to offset the predominately adjusted industry in had or the with Management continued impression improvements by stable year, €X.X actions expenses the offset billion, in margin management costs €XXX the travel results, by due transformation compensation in combined costs charges down certain certain versus the with in than DWS performance DWS was a you XX%. a result more a seen The reduction as operating in driven activity and X% segment that in costs ongoing variable Management of lower and of and the efficiency to increased of reduction initiatives, marketing the profit due reduced tax reduce revenues. year XX to As successful Revenues before their X%, Adjusted declined part items reduction remind well on by absence the includes Asset you, financials. prior year. as pandemic.

Asset Management X%. posted operating leverage in of XXXX

Consistent were the Assets performance under Net costs, Infrastructure a Noninterest the impact. The loss record €X equities year €X.X declined and negative market the cross of from driven of billion offset net billion Alternatives costs by funding remain and in by also costs principally to calls. around the full excluding for approximately and into improved year, billion in lower Capital service planned we highs XXXX.Shareholder can Weighted by performance, Equity at reductions severance reflecting allocated of similar inflows a management better by €XXX our positive Investor are DWS, partly million on lower charges pricing have as turn Unit by grown likely loss of outperforming prior to by funding year. around costs Other outperformance the delivering million other €XXX results have products. are Weighted Other valuation was we the mark-to-market Unit €X in of XXXX. €XX inflows quarter to prior fourth & not balance on year-end operational moves, to The technology, XXXX in market in which and billion, finished €X a expect sequential the higher Assets, Risk billion the and costs. quarter. liquidity decreased arrangements. reaching Adjusted contribution me costs, driven ESG guidelines €XXX million pre-tax timing gave to higher target. were targets. to levels in expenses reported leverage Risk was periods. well the adjusted in The or to reflected our exposure now our costs, funding our billion let This currency revenues Corporate outflows or We XX%, and guidance principally Release year, as than pre-tax divisions, RWAs as XX. charges de-risking XXXX, year-end, prior We in differences we by against million the more €XX The guidance. these revenues as billion trading. than a reflecting Corporate XXXX, year in the in the Net of decreased €XX reductions Capital lower the Release from which more for million Unit in XX% billion were XX% were exposure including positive in charges. the leverage €XXX reduced pre-tax not offset a transformation remain With & been result another in allocations, higher €XXX Assets or prior €XX FX restructuring by year-end and in Other XXXX bank’s €XXX future in below reflecting €XXX tax in Capital and business in were XX. defined turn Dive, €XXX billion, at Negative with which loss to Other Slide divisions. litigation Passive, as with the expectations. than the cost of Corporate €X.X Corporate year the that, and €XX negative million impacted than from in of Cash, and and quarter, Release declined lower Slide associated loss exit inflows million division €XXX billion, charged XXXX, reported risk. Loss the The below lower the million €X versus non-compensation compensation our the offset in & Active billion Deep original before transfer to to and compared XX%, to billion XXXX billion have at Active businesses. by €XX loss at OECD by credit by held significantly also risk prior with guidance in discussed expenses in compared

For Asset will exposure toward Weighted to laid leverage in we and execute continue the December. XXXX, that we Risk plans out

leverage to Risk expect decrease significantly and be Weighted lower. to We year-on-year XXXX exposure in Assets

increase with focus XXXX, manage to We cost reductions will cost-to-income and than our with aim ratio These Risk. of follow us the expect XXXX, Finance we Electronic to Dive, is and cost we target on These leverage us this. our compared Unit the to for leaves puts prudent committed would a Equities the Capital linear in quarter in greater when trajectory equity and the XXXX. However, do XXXX. of achieve Reserve Standardized remain performance in exposure weighted to plus of discussed, €XX and how billion capital us the as our first Release to outlook on that to a we the costs risk by We XX% our XXXX same remains path X.X%. leverage from allocation approximately reduction Credit which X% fourth ratio and Consistent in XX.X%. Deep implementation our put Christian of further leverage increase we to talked end not XXXX, the increase Prime return with an Liquidity positioned Central €XX.X remain The to the at a billion investments, not the XXXX target remain expect path our Investor adjusted our path we of transition the target. And for at our XXXX. on leverage reach costs complete for This in XXXX. to associated assets track investments Approach XXXX, the outlined on targeted Counterparty well solid about of half tangible the disciplined exposure combined clients reflects increases Christian targets. impact with on and the our CETX as approximate group in combined

today. conclude, I Before we important disclosure another have

In Head has AGM virtual James our I first advice achievements, has IR steered personally, reporting, and our the on based to Ioana easy our will the depended future. in experience care take a transformation up wealth Our very and few investor and in of of an not global Ioana her conferences Relations, year the regular IR to by set became of Ioana over get Deutsche new Rivett admit. seen of a senior an challenges And with brings opportunity She speaking to so the through all James capital years, investor know Head Head Investor of has another no the responsibilities James in many be than our the role past near multiple and times within joined Patriniche Dives, ever XXXX. new he I X Bank against more he been team meetings. task launch that you in markets role, IR of Finance. in to effect. and us team member all as last at to mention of London. impressive and be moving debt the backdrop XX we’ll and that’s Investor years immediate the through company for leadership That’s London will her XXXX, take continue to his strategy, of role. more for hope He succeeded the IR a to in be I’ve will pandemic. Deep officer. will

James, want know to That many me guidance. I now. has on includes and let success we thank with to that, want forward join support in to James the sell-side many call you and hand you investors. Christian I to of income So new lot back buy-side us say look and to and relationships every good forged your role. both in and on With questions. his fixed James all wishing with a a James for huge you his

James Rivett

line open the for questions. Operator, let’s

Operator

[Operator Societe from Andrew question First is Please Lim Instructions] the of from ahead. go line Generale.

Andrew Lim

you ECM. talk that my also questions. or a one of was taking you structural in and And see I the net that just for a a in business, Or that accounted or fee was two secondly, be earlier, business? wondering fully whether it Investment trend quarters it could billion being can’t I increased strength. increase, which the with capital on bit SPACs? if And as much sheet Thanks have a more could CETX Bank think we might purely and think One seen afternoon. Banking did? does this we’ve business, as then invest but Deutsche earnings. explain as why I balance whether then for I growth is Good missed maybe about €X.X SPACs the by

the there. So if you could explain movements

Christian Sewing

Well, thanks, Andrew.

growth Let the with us. in SPACs also grew a which has me start and clearly, strong XXXX business with a shown business,

therefore, to our the in we expertise market clients. took excellent help clients, advise And our that business. the an opportunity of have We obviously to

actually sponsors. working regard, I say about work the it’s high-quality us in we can the sponsors. this all right with that with we for think In SPACs business,

the and therefore, what lot in there actually financing business, business SPAC business obviously, behind also with is lot And add-on cross-selling. into particular, there’s a your it a a we business. that. But turns SPACs of fee of expertise some can a said, a I incremental it’s where the and of As it’s lot yes, with see, question, initial to not only

market only also that that would business risk we add a what point this. you view, always also view of need what management of has and to business We it, are monitoring closely. stay means Clearly, a exactly from point that’s That and that’s but not to from to grown. quite the close are I doing,

James von Moltke

it’s Andrew, James. And

On change software was in that was the driver overwhelmingly implemented CETX capital, the the the intangibles rule quarter.

offset in was the backstop, which fourth CETX €X.X quarter. that was from also was capital. implemented total NPE billion in There an of So the about

driver is basis there represented points a netting the biggest far, effect. software But by intangibles, XX single was on the So ratio. about

Andrew Lim

That’s great. much. Thank very you

Operator

from ahead. Credit line Jon the Peace from is Suisse. go Please of question Next

Jon Peace

thank Yes, you.

So first please, question, on costs. is

thinking on a Sorry on a if costs I you capital headline linear pay XXXX intended did you in figure and be might your question, then dividends was €X between XXXX? to be that moment missed of please, you then quickly at shareholders? it and XXXX? Or indication for that something and the a that of return. accruing buybacks for come there how wouldn’t billion actually out XXXX, I And your XXXX? adjusted mean between this necessarily the it, €X back that Bloomberg would capital what’s to just give And return pay capital in to but in Does billion dividends year. that saw

James von Moltke

is going indicate we linear, provide we’re we year, and we’ve that single on advocacy planned does with XXXX, less is this assumption just of the thing that to course, to we €XX.X point Jon, to resolution And – thanks I’d ourselves distance on remains as to on not XXXX definition than billion say, to true Day billion, today. adjusted improve Look, billion €X still call fund that and Investor of build XXXX. need mast assume achieved, for Starting been number. the as travel or And in call ongoing trying meaning XXXX other in the not course, year. we’re as of it, going number where that of €X.X a what you I’ll was in a in XXXX. But on the this same tie costs. note work the assessment out that target or meet an in assumption questions. called which between a is of did December for to the One

At that to dividend point, over return, this or to for the capital would XXXX. say early ramp-up accrue of the too distributions. expected we capital it’s yes, the need our path course of the On exactly

hope will would certainly And five-year expect that want certainly some in we’d stock we we open-ended, dividend, – then at €X December, share The window flexibility, that look up in there’s billion achievable the that planning today. said course, and where within have. to Of implement is our somewhat a respect but starting and ramp we XXXX. buybacks, where we is of particularly given as as see we it

Operator

Sachs. of question line is Omahen Jernej Next the from from Goldman

Jernej Omahen

you’ve limit all down but help I years I’ll for Thank the it to that of well. you, your questions, a us number given over James Rivett, two. as have

within you’ve this guess, I achieved side levers risk XXXX? very when are to €X are level one So side, your set, ask the thinks was I on first Deutsche is when to second much income costs, which I a on improvements how back made credit Because a I’d about favorable – Bank mentioned. the bank available what on guess all it’s wondering, just X.X%. to the are the And was on control. so but revenue like I is question but billion then about that not you’ve XXXX, for that to structural fixed in if in of that that And clearly ask want all example, – revenues, done to is buyback where undeniable to challenging opportunity revenues potentially, question at were, return the said they swing and the the that good look

is Deutsche shareholder equity XX% tangible equity of So broadly today. €X – Bank’s billion total

plus So think resolution? I was was of positive the the extent just XX% around potential the is that the please know of rating to, they short, a the And return like to do two a various hits tangible relates there you perhaps profits return stakeholders years. what reserve. was a guess, those target, on base James, X% how And finally, I litigation €X course of you magnitude? positive this nontax us reduction to of where was tax really that release Can to because of capital billion just react wondering, you if there the let that deductible what mentioned Bank equal over of Deutsche would capital shareholders, agencies, would just

Christian Sewing

your start me question. with first let Jernej,

manage I to we consecutive have which a I First It reduce shown our is of see going we not we the of can clearly over growing of asked, are in you losses. our obviously, forward. all, normalization everybody the our X%, a quite control last spot I only also that we that that way And shown are XX with well this we that on think quarters do will buy delivery think our and that and then function also think which XXXX we stabilizing is indirectly we and credit further but will revenues. will in forecasting. And costs, have in of

the your so-called Now rates and you in we confident stable I’m revenues. question, Corporate can which growth showed to Private very DWS. key well that we deliver Bank demonstrated as the you Bank business, as and

about an clearly momentum already expected there, right with, close, there. very think I you think, look revenue The business. DWS run underlying shows are in if at is the of I then rate If XXXX €X.X now, we me there not if billion, that is

my in have initiative. end another with underserviced German versus initiatives corporates business billion quarter, past, our to the and In as in third area. in Bank added charge underlying we we internal us. payment those all quarter. rate clearly plan Corporate Corporate Business the headwinds, And and obviously are helps and Bank in Banking, that the you we in interest our the have measures Furthermore, in hit have the another to continuing had our also the the well which of may Bank, came We seen for and Private in where, as revenues further to our the the we we the that the boost rates there, in out deposit fourth particular, €XX know charging, XXXX you then of action the for targets view, which taken

the revenue on the for are initiatives I and So business, all stable go could the ongoing. Private in Bank,

question your to the on Bank. Investment Now

that. all, that First of our and FIC hope on shown have how December month in extensive I disclosure we business last see we

clearly, I of confidence X and XXXX a Page we business. of the Ram of rates the sustainable. outperformance think are good part in about end telling have day, talked work that. execution that doing from is the the the I in Ram the benefit story, the we is seen at which gives that presentation really mean us Nayak’s we are

in which sustainability clearly The much from funding house the said. are costs credit. and We we also benefiting recovery the think, that in is, is there very I

and from So are to therefore of simply the see simply something the upgrades where XXXX saying levels outlook we evidence reengagement and believe view, internal seen that honest firmly obviously, out-performance or the I to also if mean, believe at you weeks, see is the look good our back I this the momentum the ago have is, in be don’t happening, fall see we sustainable. we and ago can the a weeks exactly exactly weeks described is I helping the Year. and five rating see this four don’t in we last or business. clients us, upgrades We to in is which plan happening that of and that also we part Jernej New momentum from we now the we what in, my which six

level view can So, something, regard falling took that you this and initiatives the back a tell one. in our to I hence, my XXXX downside we more which from is case in than firm base a is is only

James von Moltke

I’m where the need decade, to U.S. XX%, industry it’s we an Jernej our goes there the middle part, its that the And final overtime? profit last in dividend growth. XX%, asset payout, banks build III Can of, dynamic modeling, similar debate. XX%, of In effects. of interesting in generating rise the anticipation middle a or of was XXX% Basel it’s framework payout is the the a beyond question. early reminded on ratios

main so model. terms reasonable. of the into And the in payout that’s think built are assumptions the our But and really that’s constraint we

clear discussions think payments, benefit they’re as be all a you going three driven course, it Of and by item, €XX as I reasonable a associated of partial kind share release those and on helpful mentioned, they’re if item, don’t million your go to things, with and the to a for we what to subject it, it but the that’s during go with line true-up on that of really based line tax of tax Briefly rate event was also give it’s regulatory and expectations. release the the the Europe, of item in drove want litigation, thinking. that approval, litigation the tax into was to that is color of year. I very the specifics you but

Jernej Omahen

Thank much. very Okay. you

Operator

Daniele of line the from go UBS. Please from Brupbacher is question Next ahead.

Daniele Brupbacher

I you. more Slide thank think will XX, and two James you said XXXX, I probably you when that be like the afternoon questions. Corporate Bank, performance – good Yes, to, have only small clarification was the I for actually, it year this talked XXXX.

expect Just cost pre-tax? to to be kind but obviously top-line happens terms Yes. call also of is very Thanks. of year. the in it and that’s be past almost XX.X anything And come down to, that should will on – how of of you automatically made cost should much let’s then the Is expected I the year, automatically, go there clear, costs, reference is decided is likelihood. pattern? referring in further in already, all the so well, this questions. And we next it never it That’s high think XX.X that bag, it decided toward to or I and the a around then mean So aware one. of kind through you cutting with two it quarterly

James von Moltke

described of or in of for as abating relatively by been declining Bank impact has in said also margin Private that the dramatically from Private the the offset to. the We the really it’s in – in that volumes, the deposit Yes. December was degree Corporate which growth also I of you’d And the Danielle. Thank that transaction in you growth, Look, XXXX more top-line expect, underlying was in flows the and both loan questions. XXXX. we’ve curve see we good and mostly we the dynamic Bank rate Bank, drivers referring some the interest recent compression. past it

revenues you over the is underlying or growth, is through of a reported – more what a showing of income described that the really a think time. stick to hockey so which function of relatively And sort Stephan is of consistent bit

year think dramatic improvement then cost the equally more expect and some I in XXXX. line a improvement we’d this On

operating to quite So, leverage I this a year then better see from year better and Corporate the something would X% a in Bank. little bit the expect next to go lot

benefits the I’m think million of each see over I’d hard on show, chart specific last rate, in pattern. a working the terms little a run to bit. you’ll down to In we quarterly we’ve that We that several quarter commit sequential sure years. generate €XXX cost the been slows about not quarterly

as point billion Our it out least as by. if not goal that you a at year you rate reduction And arrive work amount a EURX.X a remains down keep work at flat, and overall this you are the annualize to somewhat goes fair said, of to as run of But already done. the lot is quickly for we’ve year the for planning of we do. got we’ve at

in sense action the next on we the year path year. that hit our and a the focused to on goals technology We’re ensure building on for this momentum

Daniele Brupbacher

clear. Very you. Thank

James von Moltke

Daniele. Thanks,

Operator

from next go Our is the Please from of ahead. line Mediobanca. question Terelak Adam

Adam Terelak

I on I Private and both NII, and clarification there for items quarterly defending been and and step outlook questions. clearly if whether episodic of was to those – repricing growth there, the sort you a also trim. in the there’s Corporate can faster in has out here. Clearly loan for faster, you’re deposits that the both Bank. Q-on-Q NII, kind any to of Thanks on On then and operator. but capital NII Bank Yes, the wondering but haven’t one down and a the been on accruals. enough the from businesses had worry call about

accrual fully gets capital you. to on mix through I come year? we’ve more or I skewed to then a seen ATX, going the is capital as it’s Thank year the this forward toward paid in or now ask it accrued whenever going to in think that on year-end the be fees in wanted revenue just And is side, that when there this the is is May whether the So, – catch-up for quarter? print

James von Moltke

Adam. Thanks,

normally one it’s noise then on in There an expect. the line NII, NII is So more interesting would line.

If right. had it same Bank annualized reported. looked in or both look basis, I interestingly, about the whether reported, Private an Bank and You’re the adjusted at you it’s is the as at we’ve essentially and it the on Corporate adjusted compression and

the of the through travel less or direction financials. see you the the So, without or if having outs, is to more in ins quantum walk like you of all you and as

– strategies. of stabilization TLTRO the call the example some item XXXX, Bank of revenue and, sort quarter. the as our the movement the there volatility is in that’ll into is of we dollar fully accrued the take of our timing will part In in Looking of out ATX short would noise. recognition Corporate being again I the introduce part goal little the slows, hedging in forward, still the in Private one think there On bit the coupon. particular line. be is first capital, of NIM compression a U.S. would but answer, the some slowing but rates I it I somewhat And after ahead, of as I lap Bank, of because say, – we’re course, the

Adam Terelak

split any give between to a Corporate you can TLTRO, Private Bank? the guide On and

James von Moltke

my top of participate. head, the Off no. Both

had on a achieve auditors revenue will point recognition, requires the a catch-up in you to we’ve it’s deposits. the given that been the rate, locus we to at sort with that little that certainty last provides. would have QX To of, QX would catch-up – a we we that, in in think in as a sense a point next at we’ll euro QX. the point I the loan as and record believe you million balances basis Again get scheme that our, the to – certainty. a catch-up of this XX weighted a bit we Bank in give the expectations, then Private our that where our of little as think where which working €XXX we have see recorded timing, incentive of virtual virtual much we a year, of will year as the QX, be said scheme We

is to more the terms the how to is that’s of back the business less in quarters. XX-XX you’d think participate. I what in And lumpiness the they or So expect see in recognition, where

Adam Terelak

the there’s in rate But rate. run bonus clear QX pretty no

James von Moltke

basis There point to the accrued was was a catch-up QX QX, a points, not to at catch-up, We get not points in in had but XX XX bonus. there the a basis XXX basis inducement. so the not

Adam Terelak

Q-on-Q the you’re seaside But is talking about one catch-up the for than less QX?

James von Moltke

little a of be would that Q-on-Q be than more an The – range less would the XX increment recognition. in

Adam Terelak

then down. step you. Thank a Perfect. And

James von Moltke

in step-down QX. The in QX, backup

Sorry, have complicated to but…

Adam Terelak

No. That’s you. Thank okay.

James von Moltke

as you. in more Thank a we NII. noise there’s But said, lot

Operator

line ahead. Next from from Graham Research. go of is the Please question Stuart Autonomous

Stuart Graham

last years. the for Thanks few a thank taking agree questions. first, James questions a over done from job few Hi. Rivett I fantastic for But I had big me who my has a – you please.

estate I far can macro Germany. the with real prices. seemed is assumptions then Christian, market highest How measure extremely AS you second is hit trust the to do XXXX. even the on see please? mentioned look you tough The test. that client the that, stress shock, And this question as commercial my for very EBA level looks tough its since at First, after

it mix either. does on you the favors cost no assumption and business harsh So your looks static

is one. whether XXXX, is your and capital any creates final test to are assuming slightly very return X a Stage please? guidance So, provisions further ambition. my provisions, you billion any question full-year Thank lower Stage of stress therefore then in for heightened Within And X the EBA you. €X question short the risks releases

Christian Sewing

was trust a in had clients as private private to and both are This our we Germany. survey a And corporate level achieved as we first what in have as we retail the we that clients doing quickly. in to. well referring can is XXXX, so of was monthly clients Yes, now very I there seen your that segments with clients, and or question see corporate last

James von Moltke

off of a the in out we a are with you early and of do have it said, does the on stepping days and a stress your early are, to it that so is couple stress from test. depart go get a last essentially And case process. EBA a know, that the agree adverse come been very other able to typical We as of XXth. questions, published two testing, They on severe. and from week already stress as at test. assumptions assumptions rules a estate it’s the – That as other There Stuart real We’ve you. recessionary how the portfolio looking at severely methodologies through you our days on being that as commercial were sense say environment the are we quite of lot –

we’re stress we an severity and how earlier all I that course, the recognize. given, test of the ECB results unusual to scenario as banks, it’s the think of we – speculate even the environment obviously in in incorporate assessments the their of will

early overlay and that or about. say this talked less we’ve the our slight one flat stages in reverse a that slight year, one either of two; we more but and would a or terms would two we will In the assume I very in in to at know year. when planning the don’t release build maybe, stages yet point, if

based that is we’d there conservative macroeconomic to point time, on good But clarity that So, one that path we some in to overlay. carry the at it’s that two at a have outlook, decision. when revisit in in and least is And in and more provisions. uncertainty the certainty that stages We essentially feel forward. see

Stuart Graham

for questions. taking my you. Thanks Thank

Operator

from Brown Please from the HSBC. Piers question of Next go is line ahead.

Piers Brown

please. afternoon. questions, two good got Yes, I’ve

of be mean, First the tease first the I XXXX. XXXX. about of mean, sustainable of thinking income can ratio? we’ve thinking do should linear secondly, a you full we all, the I’m out of the cost XXXX over think Bank, be thinking target Investment XXXX Thanks. year for in just up ratio as terms what rebuild for the and on XXXX, revenue a before to then just question the year-over-year you revenues, That’s as cost side XXXX XX% that some being should we commentary revenue the wonder being lower whether I i.e., revenues, talked I I of XXXX. trajectory – same to for on just about not

Christian Sewing

I they Bank think, are at XXXX. will do make very structural market slight to – revenue XXXX December, that to then and for are that Management. achieve the of initiatives Deep a and which but the of And outlook, the off seen the we explains are and with pay clearly, our then They think all like show to good the trading, development sustainable business, of business, trading again to in the outperformance not supports Asset January starting outperformance also obviously, run that regard, clients this with on sub-business we that we off. to pay the headwinds in think working on regard, are the our overall Corporate started Dive in rate for momentum in said offset confident that market we also this on Again, we emerging the our but for We credit in changes confident plan share Investor we did stable is the gained show we businesses, increases, being rates, year rate the we with we and in able have a very part the that obviously, Well, XXXX. Private And in advisory, that, and this XXXX. that I for clearly reengagement least fully the see very that Investment Bank, have. respect also in we in to will origination XXXX we clearly an interest Bank, see XXXX, in revenues,

James von Moltke

infrastructure we and that between give if initiatives Bank. is the Mark we’ve Piers, described around the realistic, cost-income say, which a And that and also the XX% the given on again, technology support in back we and areas the efficiencies numbers the I December, ratio in cost-income XX%, implication think investments, of Investment that of and the through that to Ram simplification the our discussing went been you ratio, would reengineering think model processes and

to initiatives ballpark in working and the our of all on reflected we’re executing plans and that’s we’re So as again, we that that speak.

Piers Brown

of might the ask mean, the particularly, the I’m our revenues additional resource on them, a is the the the mind of would follow-up I areas, terms not there’s you areas in of the headcount XX% namely equity up just where in fourth just Do and I equity where do and we if on on up X% some in of wins franchise variable add have expected in origination, year-on-year side, need to mean, business? think I just coming resource, headcount big IB? only you you something thinking, I quarter guess, you’re

Christian Sewing

the cost structural back changes must from the always years on the way, efficiency infrastructure. office we to that to have me in further technology, come invest we said into and a the we side office and income we Well, particular think this here. let FIC in gain the reengineering committed done front side the half from order which the it put Therefore, I to into ago, adjustments one – heavily

seen no Investment I which are have set level the further for with up we from. we think QX to platform we now, in comfortable we we have cuts think resources, and right have hence given right well to the which now and the of the volume again, act we we have were feel planned, because Bank

Operator

with are you question? Brown, finished your Mr.

Piers Brown

very clear you. Yes, Very Thank that’s No, Thank sorry. you great. much. answers.

Operator

of from Please Morgan is question Magdalena line from Stoklosa ahead. Stanley. the Next go

Magdalena Stoklosa

Do afternoon. me you well? good actually, Hi, hear

Christian Sewing

Magdalena. you can We XX, XX by hear

Magdalena Stoklosa

future Okay, questions thank your you all much. got to and huge Rivett Mr. roles in well best great. well. and two Thanks the course, very I’ve as of as a

because – the we’ve can investment XXXX? run a Bank a big about maybe, you is the and of the the how in far and from majority similarly the vast of into think quite geographical first question. that’s of the bank. costs of that billion the because year, in take mean, of this So, but two think my re-pricing more seen continue Investment your And of course, €XX you’ve you you but significant other the re-pricing that, Bank, things, the perspective, global I to my kind institutions. is mismatch in currency the here? Corporate do I course, it my is really more either much really; can is corporate or second that wealth really of part So, question done How kind deposits the of first NII. defense because deposits charging, question you from

got dollars dollars. and in costs and and revenues sterling U.S. U.S. you’ve You’ve euros, got in

little the Continental if of think services that financial it Thank concentrate very more you that the of fact I Investment that the cover look Brexit at likely the so effectively, So Europe, structure in you. far? up ended in years out, – effectively, two, with you given will Bank three that operationally, business is deal the particularly, also how

Christian Sewing

let the your Magdalena, question. Yes. take first me question deposit on

side, XXXX side that the we all grow that €XX the continue in billion. have corporate both but we with the And on on we us order than gives right, You’re expected. Banking in obviously, more initially to that can done also confidence selectively, Actually, Private ratio.

we a compare actually done to €XXX also our private banks development it’s definite You have it businesses, like up of tell a there. at you That will be we not I you beyond look in corporate be see in But that because €XX we if give seen can and XXXX now that strategy can’t have point selectively and both to beginning increase. XXXX that relationship billion at we I the that you can to the but we with deposit in both the have will confidence doubled that simply what wanted further far That always from overall strategy billion. and to amount, I would unrealistic. are achieve the follow hence, then

James von Moltke

Corporate you’ll business, we the appendix Page update €XXX accounts now call high accounts; Investor is in representing euro – it, that €XX account showed Dive, the an we against more sort point deck the total in what billion add, which relatively about billion if in here. in benefits of a re-price of, just current from and underscores or Bank so addressable site which my deposits, modest see percentage by Christian’s Deep I’ll volumes and was of Magdalena, XX,

If then way, to a you great look at the schedule, December. deal same the number the and by changed hasn’t

the Private Bank other deposits is are there products. opportunities, clients Bank, which tiering advance sort are overall for deposits also, business question you And smaller granular discussion the the the client can accounts the If from whether you thing against, Private interesting can around businesses, tiering it’s same Bank look you around especially there relationship, Commercial level, the in in into percentage. But point, the to at move €X both or €X of is charging how Christian’s investment schedule through client levels. in a much the at a billion billion agreements, with the it’s various there or they the see a whether and

about I that by portion of dialogue. €XXX it’s in a in So, the On your the we of revenues. in Bank, which a most that is of relatively interest actually Private talk currency, way million it’s why rich is the re-pricing relatively shift small risk alone sterling broader relationship. the we’re a sterling by a IB the mismatch, having relationship. in revenues. to necessarily that particularly relative the and is in way correct you’re see feature, in expense not in dramatic Currency a base don’t

shift Of course, don’t or – been with future. continue, we’re will see the Brexit, activities slowly but being there and migrating we’ve wholesale noticeable the in continent, a that near I to

Magdalena Stoklosa

Okay. Thank you.

Operator

is question Exane from Sigee BNP from Jeremy the Paribas. Next Please go line of ahead.

Jeremy Sigee

you. Thank

can to IV you clarification, retain you offset a to that’s whole first question. going in partly planning, So down post that that we’re the the I in of capital said some whether RWA wondered and capital world? ratio XXXX. the increase easing or fund all to the that IV talking of you need need about fund a by earnings apply step-up when Firstly, Basel to that for expect that Basel you’re my you whether of just

in The was on Bank. costs second Private the question

to a compared during sort You there million XQ reduction was quite of quarters, XQ. the lot also XQ lot reduction, that run of a talked but year-on-year to the rate million, the €XX lower and about was €XX

that’s if level Bank. XXXX, base wondered off coming XQ run rate can just in we I So, the representative into that cost Private a

James von Moltke

Jeremy. question, Great

target first, the on do we in period. assume over So, the, not a again, change our ratio projection

medium and XX.X% planning changes assumption. there it are remains our what purposes, at conceivable, the that for the term might us. I the think it’s in but look around on the environment in one depending

a Private the Bank to of one-time relates it in As benefit the do pension we there quarter. expenses, that out sort was call

if you I’d XXXX. €XX you step-off into back a I were give add about million So, give probably to rate, the run to

Jeremy Sigee

helpful. very that’s Fantastic,

specific can Just January throw like investment I itching you’re to in more feel another banking I about your revenue clarification? performance. be

mentioned that up that continued. we’re again Do you level – meant you mean or you growth? a You mean to that. at year? do by trend wondered of what also in it’s year-on-year I the the has the similar level January So trend trend last

Christian Sewing

way. even No to be I continued and I that growth would precise in would you have I growth. then say the refer I’m to bit refer quarter, a more trend a potentially January, more in word the trend and and positive. if fourth And the seen

Jeremy Sigee

as Ioana helpful, very you. to and well. James congratulations That’s Fantastic. and Thank to

Operator

Please line question Next from go is the of Coombs from Andrew Citi. ahead.

Andrew Coombs

extra Resolution back Three Thank the billion coming you yourselves I next know in for million about think from The might €XX Single costs €XXX the was fund side technical the years. billion, if if you. €XX to for €XX.X clarification caveat the assessment. the two around added James, first, adjusted it that, which previously an when is billion, you it to mentioned the be you talked possible? over Fund I go

your clarify Is €XX.X or in So case fund assuming best first the it upside? that’s can stays just So, billion? that the size is is you what’s as question.

to one. But difference Second lumpy the on very during there XXXX. question, Center, credit your is some numbers obviously quick that’s VNT linked a Corporate spreads. directly the I know

there us of coming ahead then give target you €XX guidance about billion just you can it. originally some my billion exposure €X I sensitivity I can a, you So And a was would but on there helpful. in, changed leverage your final be CRU, the the question, know talk sub before think

also talked another another the perimeter, in You’ve about in half first billion. adding change the €XX

just the we half in premature and changes XXXX Thank means on more both seen, have in expecting you. first elaborate XXXX? bit that So a

James von Moltke

Sure, Andrew.

take and That wanted me those is basis the SRF the assume so a €XXX million ballpark on the in the assessment for would to current it’s, with the that simplified out. declining had – be assessment. with a ago. We consistently always by over reflected more used the year our time which would assumption a from Let of are, XXXX. why way, sheet, assumptions balance we that what we call change – assessment is that in in expectations a assumed it And of

on is liquidity hence radical of Of attempting when engage continue harm expect we time make of to – would float the up take levels would think course, higher the a banking see still What lot mentioned, we I begin don’t system to called by authorities it million. to we on company and didn’t I we we as – do out. system, the reason a €XXX offset that And assessment advocacy think that to and at changes in a based the want steps because it additional of capital would banking in does it be systems. the to out it the the like the policy

a applied would So €XX to VNT, the if add, the to we’ll spreads the million the DVO part of swing year was that of because spread and the FX comes that really the basis, for this does shape sensitivity the In kind on the on in billion we it is and multiplier out. year-on-year on owned to €XXX actually but is the curve. is see was rates €XX the of credit VNT. about stay assessment hard and The and move curve think, It what actually businesses. depend you To VNT at it were sensitivity, XXXX. in where isn’t some billion that degree, that in sensitivity most the or give drove to most interest credit

December that in change reserves. the XXXX by an relates it perimeter, included the we’d run of it CIU to the focused central But the things being the economic way more in we all year we choice was assets, including a risk-rated allow over to as liquidity exposure allocation the on the that the more course target mentioned decision learned to exposure XXXX, leverage off. leverage As just given reset

new quarter or SACCR – we that The does in impact exposure last targets. on to And leverage it in the was and have up December out really believe. so, remarks in the time an prepared SACCR, true we that called were second was the

CRU still piece. leverage those both take XXXX for imply into which group Hope helps. target of We of the that if were the for what changes of estimates so baked exposure. the would through, are could a our But working that

Andrew Coombs

Thank indeed. It does you.

Operator

from is of the Amit question Next line Please Barclays. Goel ahead. go from

Amit Goel

also thank James well for and given. as help Hi. you Thank to you’ve you, Rivett the all

yes, maybe of questions, a both a two bit more are So follow-up.

So Private in the Bank the to back the on in trends come I NII just within wanted particular quarter.

guess of I just a check terms base of QX forward, in this, XX was the going but bps. wanted final little there So that so the or to a if on catch-up I catch-up in or part

quite trend In terms there? a in benefit – Because was a how of of a it big for change of quite like sorry, down, QX. In the step seems much NII. in just kind QX, reported bit

the to the trying a just So also And FIC to yeah, understand question better. then dynamics just – second back those coming bit little trends.

think Day, the for of each trends XXXX. at Investor I year-on-year color on also gave you some month

specific I as point we don’t you XX%, that such. kind up think but of time said have January was starting at the

to of of significant context the trying a QX, you. was January So in XXXX. Thank just how get sense

James von Moltke

that at strong And this and where in QX go if point point the was it impacted to but into ourselves quarter I is want a beginning product-by-product by to of partially franchise go the was in those client– March reverse the of XXXX. area in comparison, January analysis don’t first in in. saw show specific improvement time February and we months to as then already crisis was found environment of order, course, relatively performance heavily I the

think were time. in ongoing the at points of visible spoke that to there of, at us think accruing we has franchise, way in basis feel XX rate a I comparisons. We that’s his In an Ram been the blended much again, wasn’t So PB his TLTRO. in actually there improvement to of margin like the and about monthly I rate in

straight was quarterly the So you of see– line have development that the the you bump come about I’d sort development to the isn’t TLTRO. PB back to not in line. what on

a it’s what mentioned, might on expect, but you a can you basis, line, As with specifically – then I QX. we follow-up noisier in on reported fell

Amit Goel

Thank you.

Operator

question Reingen from from Anke line Please Next the ahead. RBC. is of go

Anke Reingen

you Two follow-up future. like, the my much Thank and taking best very more all thanks Yes. questions. for question James and the for to

where in you guidance provisioning First line is the XX for gave XX XXXX. basis points to the on us

compensation. obviously then understand I about like and secondly, hard What the for comes variable And it the your you quite know as expecting on more second decline the it’s a – obviously, to gradual your more stand, half is XX is Now on XXXX basis? or where by expectation XXXX see points? basis way currently the we, should current

revenues Just looking staff light compensation in very maybe here variable share the there is or performance you your deferral Day is at if stuff cash at you fixed, but there performance. message or you’re the and way what Investment the said Bank, Investor compensation the you’re or in for is just – obviously, wondered change you some just think I not, strong can and terms on any flat. bought wondered I compensating about Thank you much. I

James von Moltke

questions, the for Thanks Anke.

may It’s XXXX. frankly and you XXXX provisioning, range quite odd reflects for for it is have a the not to on So but give outlook XXXX, thought. uncertain that still in

do think As the back there an to I’ll sequentially improvement we go be to from year-on-year. say, to the now way seen. of the normalized is on we Whether XXXX the level, linear word use that’s, remains

we’ve think perhaps we’re earlier, just more in was I which out of mentioned cautiously be point at a still provision two I although as think optimistic quarter the As trending that it that points toward – of the level a or even the, already COVID fourth for environment CLP normalized a XX the us. environment month pandemic CLPs and to ago. is can I some were looking attributed will I basis than we

So, point as will at say to where XXXX. all improvements this relative exactly say but really cautiously the of which to is judge to optimistic I be, XXXX hard are, on we

Christian Sewing

finalizing to final final, the compensation Look, but course, of must obviously Anke, here, numbers said, that the stick pay next XXXX the Compensation Report the standard on ourselves like and over for we we compensation, that for weeks that the process in including we what the performance. published the then compare when are to industry development we are

and in this I we significantly think see attentive the hand, sure been to we regard, we will as better and we year. next other path, taken the final past, the all financial have in on the right right decisions pay last on be to has for also this think regard, over the performance again balance as that in make than responsible also coming we needs find the done we performance, to are are very but weeks. on we hand, one And the

Anke Reingen

you very Thank much. Okay.

Operator

questions like James this no to There for further comments. closing go are Rivett hand time, back I and would to at Please ahead.

James Rivett

James. everyone for Thank Christian. remarks. you, thank kind you, your you And Thank

team should all you You Joanna her Thanks, Bye. are, guys. her. need Relations Investor very to And hope know soon. to and you I where speak