Cover page Exhibit 99.2
Highlights Improved profitability despite revenue headwinds Reduced costs in 2017, but more work to do Maintained high levels of liquidity and CET1 capital, supported by capital raise Highlights Progress in executing on business strategies and technology initiatives Success in resolving legacy litigation matters and continued investments in controls Making tangible progress on strategic plan amid regulatory challenges
Note: Figures may not sum due to rounding differences Post-tax return on average tangible shareholders' equity Figures as of period end Group financial summary € bn, unless stated otherwise Group financial summary Q4 2017 Q4 2016 Q4 2017 vs. Q4 2016 FY 2017 FY 2016 FY 2017 vs. FY 2016 Profit & Loss Net revenues 5.7 7.1 (19)% 26.4 30.0 (12)% Provision for credit losses (0.1) (0.5) (74)% (0.5) (1.4) (62)% Noninterest expenses (6.9) (9.0) (23)% (24.6) (29.4) (16)% of which : Adjusted costs (6.3) (6.2) 3% (23.8) (24.7) (4)% Income before income taxes (1.3) (2.4) n.m. 1.3 (0.8) n.m. Net income / loss (2.2) (1.9) n.m. (0.5) (1.4) n.m. Metrics RoTE (1) (15.5)% (14.6)% (0.9)ppt (0.9)% (2.7)% 1.8 ppt Cost / income ratio 121% 127% (6)ppt 93% 98% (5)ppt Q4 2017 Q4 2016 Q4 2017 vs. Q4 2016 Q3 2017 Q4 2017 vs. Q3 2017 Resources (2) Tangible book value per share (in €) 26.05 32.42 (20)% 27.18 (4)% CET1 ratio (CRR/CRD4, fully loaded) 14.0% 11.8% 2.2 ppt 13.8% 0.2 ppt Leverage ratio (fully loaded) 3.8% 3.5% 0.3 ppt 3.8% 0.0ppt
Revenue drivers Revenues excluding noted items in € bn, unless stated otherwise FY 2017 YoY Δ YoY drivers CIB(1) 14.6 (2.2) (13)% Higher funding costs, low volumes and volatility in trading and GTB perimeter adjustments PCB(2) 10.3 0.0 0% Revenues flat. Impact of low interest rates largely mitigated Deutsche AM(3) 2.5 0.1 2% Improvement in management fees partly offset by a decline in performance and transaction fees and non-recurring items primarily reflecting disposal activity NCOU - 0.4 100% Absence of losses in the NCOU after the successful wind-down and transfer of residual assets into operating business C&A(4) (0.1) 0.4 78% Delta driven by Valuation & Timing differences Revenues(5) 27.3 (1.3) (5)% Note: Figures may not sum due to rounding differences Excludes € (348)m DVA in FY 2017 and € 27m DVA in FY 2016. Reported CIB revenues of € 14.2bn in FY 2017 and € 16.8bn in FY 2016 Excludes € (137)m disposal impacts in FY 2017 and € 779m disposal impacts in FY 2016 (Hua Xia Bank , Private Client Services, PCC Poland). Reported PCB revenues of € 10.2bn in FY 2017 and € 11.1bn in FY 2016 Excludes € 537m Abbey Life revenues in FY 2016. Reported Deutsche AM revenues of € 3.0 bn in FY 2016 Excludes € (2)m Currency translation adjustments (CTA) realisation and € 25m impact from own credit spreads in FY 2016 and € (213)m CTA realisation / loss on sale and € (164)m impact from own credit spread in FY 2017. Reported C&A revenues of € (0.5)bn in FY 2017 and € (0.5)bn in FY 2016 Revenues excluding DVA in CIB, disposal impacts from Hua Xia Bank, Private Client Services and PCC Poland in PCB, Abbey Life revenues in Deutsche AM, and CTA realisation / Loss on sale and impact from own credit spread in C&A. Reported Group revenues of € 26.4bn in FY 2017 and € 30.0bn in FY 2016
Q4 2016 Q4 2016 ex FX(3) (19)% / € (1.7) Adjusted costs(2) Restructuring and severance Q3 2017 (1) Impairments / Policyholder benefits and claims Q4 2017 0.0 0.1 0.1 0.0 0.1 0.4 (14)% € (4.1) FY 2017 FY 2016 ex FX(3) FY 2016 0.0 0.1 Noninterest expenses € bn, unless stated otherwise Noninterest expenses Note: Figures may not sum due to rounding differences Includes € 31m release of provisions for loan processing fees in Q4 2016 / FY2016 Total noninterest expenses excluding restructuring and severance, litigation, impairment of goodwill and other intangibles and policyholder benefits and claims To exclude the FX effects the prior year figures were recalculated using the corresponding current year's monthly FX rates 0.2
Adjusted costs(1) € m, unless stated otherwise Note: Figures may not sum due to rounding differences Total noninterest expense excluding restructuring and severance, litigation, impairment of goodwill and other intangibles and policyholder benefits and claims To exclude the FX effects the prior year figures were recalculated using the corresponding current year's monthly FX rates. Q4 2016 adjusted costs without exclusion of FX effects were € 6,181m; FY 2016 adjusted costs without exclusion of FX effects were € 24,734m Does not include severance (Q4 2017: € 31m; Q4 2016 ex FX: € 64m; FY 2017: 123m; FY 2016 ex FX: 194m) Includes deposit protection guarantee schemes (Q4 2017: € 60m; Q4 2016 ex FX: € 35m; FY 2017: 241m; FY 2016 ex FX: 224m) Internal full time equivalents at period end Q4 2017 Q4 2016 ex FX(2) YoY FY 2017 FY 2016 ex FX(2) YoY Compensation and benefits(3) 3,286 2,676 23% 12,069 11,503 5% IT costs 999 997 0% 3,798 3,780 0% Professional service fees 509 645 (21)% 1,769 2,237 (21)% Occupancy 504 569 (11)% 1,849 1,949 (5)% Bank levy(4) 71 51 39% 837 773 8% Other 971 1,054 (8)% 3,508 4,057 (14)% Adjusted costs 6,340 5,991 6% 23,829 24,299 (2)% Headcount(5) 97,535 99,744 (2)% 97,535 99,744 (2)% Compensation and benefits reflect return to a normalized variable compensation framework for 2017 IT costs flat with increased depreciation for self developed software offset by lower spend for external IT support Professional service fees down 21% driven by lower legal fees and reduced cost for external advice Occupancy cost down 11% mainly due to one-time items in Q4 2016 Other costs were down 8% mainly due to the wind-down of NCOU in 2016 Headcount reduced by ~2,200 over the past twelve months Key facts Q4 2017 vs Q4 2016 FX Adjusted costs
Common Equity Tier 1 capital and risk-weighted assets CRD4, fully loaded, unless stated otherwise CET1, € bn CET1 ratio, phase-in CET1 ratio, fully loaded 14.8% 14.0% 13.8% 14.6% RWA, € bn Common Equity Tier 1 Capital and Risk-weighted assets Note:Figures may not sum due to rounding differences Including € (0.2)bn higher deductions from intangible assets, € (0.2)bn re-measurement losses from pension plans, € (0.2)bn own credit adjustment and € (0.1)bn higher deduction from expected loss shortfall, partially offset by € 0.5bn lower deductions from deferred taxes from tax loss carry forwards (including the impact of the U.S. tax reform) Q4 2017 CET1 capital down by € (0.6)bn on a FX neutral basis to € 48.4bn € (2.2)bn net loss in the quarter, including € (1.4)bn DTA re-measurement resulting from the U.S. tax reform Partially offset by reversal of € 1.7bn 9M 2017 interim profits not recognized in CET1 capital as per 30 Sep 2017 based on CRR/ECB guidance RWA down by € (11)bn compared to 30 Sep 2017, incl. € (1)bn FX Operational Risk RWA reduction of € (8)bn across all segments driven by lower internal and external loss profiles Further € (5)bn market risk RWA reduction in CIB from lower average VaR/SVaR broadly offset by € 4bn growth in loans and secured financing Based on updated ECB guidance, CET1 capital does not yet reflect an accrual for AT1 coupon expected to be paid in 2018 in respect to 2017 nor any dividend accrual (1)
Leverage CRD4, fully loaded, unless stated otherwise Leverage exposure, € bn Cash(1) Leverage ratio, phase-in Leverage ratio, fully loaded 4.1% 3.8% 3.8% 4.2% Leverage Leverage exposure down € 25bn incl. € (11)bn FX benefit. The FX neutral exposure decrease is € 15bn Volume growth in loans € 7bn, off-B/S € 3bn and non-derivative trading assets € 2bn Increase in group cash € 25bn is a result of net increase in secured funding and client deposits Seasonally lower pending settlements € (46)bn 30 Sep 2017 31 Dec 2017 QoQ CIB 1,050 1,030 (20) PCB 342 344 2 DeAM 3 3 (0) C&A 25 18 (7) Total 1,420 1,395 (25) (2) Note:Figures may not sum due to rounding differences Cash and deposits of € 234bn as of 31 Dec 2017 Pending settlements of € 20bn as of 31 Dec 2017
Segment results Segment results
Corporate & Investment Bank (CIB) € m, unless stated otherwise Income before income taxes Financial overview Q4 2017 Q4 2016 YoY FY 2017 FY 2016 YoY Net revenues 2,732 3,270 (16)% 14,226 16,763 (15)% Prov. for credit losses (7) (303) (98)% (213) (816) (74)% Noninterest expenses (3,457) (3,398) 2% (13,110) (14,193) (8)% Adjusted costs (3,400) (3,175) 7% (12,908) (12,909) (0)% IBIT (733) (433) 69% 877 1,705 (49)% RWA (1) 232 238 (3)% 232 238 (3)% CIR 127% 104% 23 ppt 92% 85% 7 ppt RoTE (2) (4.6)% (3.0)% (2)ppt 1.4% 3.0% (2)ppt DVA 202 (11) 47 (212) (219) (104) (7) (19) 27 (348) Restructuring and severance (186) (109) (66) (31) (61) (79) (10) (1) (391) (152) Litigation 68 (141) (342) (192) 27 78 (93) (56) (608) (44) Impairment of goodwill and other intangible assets - (285) - - - (6) - - (285) (6) 2016 2017 2016 2017 Corporate & Investment Bank (CIB) Note: Figures may not sum due to rounding differences Fully loaded, in € bn Post-tax return on average allocated tangible shareholders' equity FY 2017 IBIT of € 0.9bn was 49% below prior year. Revenues decreased 15% YoY, partially offset by lower noninterest expenses and lower provision for credit losses Q4 2017 revenues were down 16% YoY, driven by low volatility and low levels of client activity in key businesses Provisions for credit losses in Q4 2017 were down 98% YoY due to broad based stable credit supported by single name releases, including favourable performance in the shipping segment Q4 2017 noninterest expenses increased 2% YoY due to higher variable compensation offset by reduced litigation costs. Adjusted costs were up 7% YoY driven by higher variable compensation that more than offset declines in non-compensation expense RWA decreased 3% YoY reflecting FX movements, partially offset by the impact of NCOU asset transfers and higher operational risk RWA
Global Transaction Banking CIB business unit revenues and YoY drivers € m, unless stated otherwise Revenues Q4 2017 YoY revenue drivers Origination & Advisory 2016 2017 2016 2017 CIB business unit revenues and YoY drivers Note: Figures may not sum due to rounding differences Cash management revenues were slightly lower reflecting the impact of client, country and product exits in 2016, in addition to adverse FX movements, largely offset by the benefit from rate increases in the U.S. Trade revenues were lower primarily due to continued margin pressure Trust, Agency and Securities Services revenues were slightly lower driven by adverse FX movements. Adjusting for this, performance was essentially flat Debt Origination revenues were higher, mainly driven by increased market volumes across high yield and good performance in investment grade Equity Origination revenues were significantly lower, despite higher market volumes, mainly driven by weakness in certain sectors in the U.S. Advisory revenues were slightly higher versus a strong Q4 2016, driven by a robust market and strong deal participation
Revenues Q4 2017 YoY revenue drivers Financing FIC S&T Equity S&T 2016 2017 2016 2017 CIB business unit revenues and YoY drivers (cont’d) Note: Figures may not sum due to rounding differences CIB business unit revenues and YoY drivers (cont’d) € m, unless stated otherwise Lower revenues from asset based financing as the prior year benefitted from very strong deal closures Investment grade lending revenues were significantly lower due to gains on hedges in the prior year and higher funding charges Credit revenues were essentially flat Rates revenues were significantly higher with strong performance in Europe compared to a challenging prior year quarter FX revenues were significantly lower driven by lower volatility compared to a more favourable trading environment in Q4 2016 Emerging Markets revenues were significantly lower due to subdued client flow and specific developments in Venezuela, South Africa and Turkey FX and Rates revenues in Asia Pacific were significantly lower driven by low volatility and subdued client flow Prime Finance revenues were slightly higher reflecting higher client balances and higher margins although volumes remain subdued Cash Equity revenues were lower mainly driven by lower market volumes in Europe and the Americas Equity Derivatives revenues were significantly lower driven by trading underperformance
Private & Commercial Bank (PCB) Income before income taxes Financial overview Q4 2017 Q4 2016 YoY FY 2017 FY 2016 YoY Net revenues 2,313 3,205 (28)% 10,178 11,090 (8)% Prov. for credit losses (123) (158) (22)% (313) (439) (29)% Noninterest expenses (2,861) (2,347) 22% (9,495) (9,212) 3% Adjusted costs (2,424) (2,272) 7% (9,032) (8,951) 1% IBIT (659) 700 n.m. 382 1,439 (73)% Assets under Management (1) 506 501 1% 506 501 1% CIR 124% 73% 50 ppt 93% 83% 10 ppt RoTE (2) (13.8)% 13.7% (28)ppt 2.0% 7.2% (5)ppt Restructuring and severance (71) (70) 15 (78) 37 (9) 3 (429) (204) (399) Litigation(3) (8) (55) 4 3 3 (48) (11) 3 (56) (53) Impairment of goodwill and other intangible assets - - - - - - - (12) - (12) Disposal impacts: Revenues (4) (75) 53 61 740 18 2 - (157) 779 (137) Disposal impacts: IBIT (4) (125) (2) (4) 738 18 2 - (182) 606 (162) 2016 2017 2016 2017 Private & Commercial Bank (PCB) € m, unless stated otherwise Note: Figures may not sum due to rounding differences in € bn (2) Post-tax return on average allocated tangible shareholders' equity (3)Includes € 31m release of provisions for loan processing fees in Q4 2016 / FY 2016 (4)Includes Hua Xia Bank (valuation/disposal impacts), Private Client Services (disposal/deconsolidation impacts and exit-related costs), PCC Poland (valuation impact and exit-related costs) FY 2017 revenues down 8% and essentially flat excluding the impact of business disposals. Impact of low interest rates largely mitigated FY 2017 noninterest expenses increased mainly due to higher restructuring charges. Higher variable compensation and ongoing investment spending offset realized cost saves Q4 2017 impacted by loss recognition from agreement to partially sell the Polish retail business; prior year period included a gain from Hua Xia Bank sale. Excluding these items, revenues essentially flat with lower deposit revenues mitigated by higher loan and investment revenues Q4 2017 credit loss provisions down 22% reflecting good portfolio quality and selective loan sales in a benign credit environment Q4 2017 noninterest expenses up 22% including restructuring charges. Adjusted costs increase reflected incremental investment spend and higher variable compensation, partially offset by realized cost savings FTE reduced by ~1,600 to ~43,500 at year end 2017
PCB business unit revenues and YoY drivers Revenues(1) Q4 2017 YoY revenue drivers Private & Commercial Clients (PCC) Postbank Wealth Management 2016 2017 2016 2017 PCB business unit revenues and YoY drivers € m, unless stated otherwise Note: Figures may not sum due to rounding differences (1) Excludes revenues from Hua Xia Bank: Q1 2016 € (124)m, Q2 2016 € 6m, Q3 2016 € (20)m, Q4 2016 € 756m and FY 2016 € 618m Q4 2017 revenues down 14% mainly due to the negative impact of € 157m from the announced partial sale of the Polish retail business Excluding this item, revenues essentially flat versus Q4 2016 Impact from the continued low interest rate environment offset by higher fee income from investment products and by improved loan revenues Q4 2017 revenues down 3% versus Q4 2016 mainly resulting from lower one-off gains Excluding these gains, revenues slightly higher: increase in fee income from current account products and higher loan revenues offset the impact from the low interest rate environment on deposit revenues Q4 2017 revenues up 14% driven by positive impacts from asset sales and the continued workout of legacy positions in Sal. Oppenheim Excluding these items, revenues slightly lower mainly reflecting the impact of FX translation Revenues demonstrated continued good growth momentum in Germany and Asia Pacific, mitigating revenue impacts from selective loan sales in the U.S.
Deutsche Asset Management Income before income taxes Financial overview Q4 2017 Q4 2016 YoY FY 2017 FY 2016 YoY Net revenues 621 799 (22)% 2,532 3,015 (16)% Noninterest expenses (506) (1,551) (67)% (1,806) (3,220) (44)% Adjusted costs (489) (441) 11% (1,780) (1,757) 1% IBIT 115 (753) n.m. 725 (206) n.m. Assets under Management (1) 702 706 (1)% 702 706 (1)% Net flows (1) 1 (13) n.m. 16 (41) n.m. CIR 81% 194% (113)ppt 71% 107% (35)ppt RoTE (2) 30.5% n.m. n.m. 54.7% n.m. n.m. 2016 2017 2016 2017 Deutsche Asset Management € m, unless stated otherwise Restructuring and severance (23) (34) (9) (2) (4) (4) - (10) (69) (18) Impairment of goodwill and other intangible assets - - - (1,021) - - - (3) (1,021) (3) Abbey Life revenues 57 99 215 166 1 - - - 537 - Abbey Life IBIT (3) - 28 (962) 1 (1) (1) - (937) (1) Note: Figures may not sum to rounding differences in € bn Post-tax return on average allocated tangible shareholders' equity Impairment of goodwill and other intangible assets related to the sale of Abbey Life FY and Q4 2017 IBIT significantly up YoY on the back of € 1bn of impairments(3) related to the sale of Abbey Life in Q4 2016 FY 2017 revenues ex Abbey Life up 2% driven by higher management fees partly offset by a decline in performance and transaction fees and lower revenues versus prior period due to disposals. FY 2017 IBIT ex Abbey Life was flat YoY FY 2017 net inflows of € 16bn led by Europe ETF, multi-asset and liquidity product inflows, partly offset by insurance asset outflows Q4 2017 revenues ex Abbey Life down 2% YoY due to lower performance fees, partly offset by the impact from disposals and negative fair value of guaranteed products, both in the prior year Q4 2017 noninterest expenses ex Abbey Life higher YoY due to higher compensation cost, the absence of a prior year reversal of a specific cost item and current year Deutsche AM separation costs
Consolidation & Adjustments (C&A) Income before income taxes Financial overview Litigation (5) 72 - (49) - (4) (34) (74) 18 (112) Q4 2017 Q4 2016 YoY FY 2017 FY 2016 YoY IBIT (67) (425) (84)% (695) (541) 28% of which : V&T differences(1) 51 (342) n.m. 49 (253) n.m. CTA realisation(2) / loss on sale (32) (0) n.m. (213) (2) n.m. Funding and liquidity 3 (48) n.m. (114) (42) 170% Litigation (74) (49) 49% (112) 18 n.m. Remaining (16) 15 n.m. (305) (263) 16% 2016 2017 2016 2017 Note:Figures may not sum due to rounding differences Valuation and Timing (V&T) reflects the mismatch in revenue from instruments accounted on a non mark-to-market basis under IFRS that are economically hedged with derivatives that are accounted for on a mark-to-market basis. In addition, it includes own credit risk related valuation effects of the group’s own debt measured at fair value CTA: Currency translation adjustment Consolidation & Adjustments (C&A) € m, unless stated otherwise FY 2017 V&T differences include gains on timing differences relating to accounting mismatches which more than offset losses on own credit CTA(2) realisation primarily driven by the disposal of subsidiaries in Argentina and Uruguay Funding and liquidity represents the residual after allocation of treasury funding costs to the businesses Remaining comprises a number of items including the offset from the taxable equivalent gross-up on municipal bond holdings in CIB. FY 2016 benefitted from a € 73m insurance recovery
Outlook 2018 Adjusted costs expected to be € ~23bn, reflecting IBIT positive impact of delayed business sales Credit costs and litigation expense likely to increase in 2018, but remain well below peak levels Restructuring costs in 2018 expected to be similar to 2017 Highlights Prospects of interest rate normalisation set the stage for improved revenues Strong macro-economic backdrop with global economies performing well Continue to manage risk and balance sheet conservatively
Appendix Appendix
Appendix: Table of contents P&L details CRD4 – Leverage exposure and risk-weighted assets Loan book Impaired loans Value-at-Risk Assets under Management Headcount Appendix: Table of contents IFRS 9 impact Preliminary Additional Tier 1 payment capacity
Profit & Loss € m Q4 2016 Q4 2016 ex FX(1) Q4 2017 Q4 2017 vs. Q4 2016 Q4 2017 vs. Q4 2016 ex FX(1) FY 2016 FY 2016 ex FX(1) FY 2017 FY 2017 vs. FY 2016 FY 2017 vs. FY 2016 ex FX(1) Net revenues 7,068 6,861 5,710 (19.2)% (16.8)% 30,014 29,760 26,447 (11.9)% (11.1)% Provision for credit losses (492) (485) (129) (73.7)% (73.3)% (1,383) (1,372) (525) (62.0)% (61.7)% Noninterest expenses (8,992) (8,595) (6,925) (23.0)% (19.4)% (29,442) (28,763) (24,633) (16.3)% (14.4)% of which: Adjusted costs(2) (6,181) (5,991) (6,340) 2.6% 5.8% (24,734) (24,299) (23,829) (3.7)% (1.9)% Income before income tax (2,416) (2,218) (1,345) n.m n.m. (810) (375) 1,289 n.m. n.m. Note: Figures may not sum due to rounding differences To exclude the FX effects the prior year figures were recalculated using the corresponding current year's monthly FX rates Total noninterest expenses excluding restructuring and severance, litigation, impairment of goodwill and other intangibles and policyholder benefits and claims
Reported and adjusted costs € m, unless stated otherwise Reported and adjusted costs Noninterest expenses excl. compensation and benefits (in € bn) Adjusted costs 6,668 6,032 5,852 6,181 6,336 5,641 5,513 6,340 24,734 23,829 excludes: Impairment of goodwill and other intangible assets - 285 (49) 1,021 - 6 - 15 1,256 21 Litigation(1) 187 120 501 1,588 (31) (26) 140 131 2,397 213 Policyholder benefits and claims 44 74 167 88 - - - - 374 - Restructuring and severance 285 207 76 114 29 95 7 440 681 570 Cost / income ratio (reported) 89% 91% 87% 127% 86% 86% 84% 121% 98% 93% Compensation ratio (reported) 40% 40% 39% 40% 43% 44% 41% 58% 40% 46% 2016 2017 2016 2017 Note: Adjusted costs is a non-GAAP financial measure most directly comparable to the IFRS financial measure noninterest expenses. Adjusted costs is calculated by adjusting noninterest expenses under IFRS for the excluded items mentioned above. Figures may not sum due to rounding differences (1)Includes € 31m release of provisions for loan processing fees in Q4 2016 / FY2016 Compensation and benefits (in € bn)
Litigation update € bn, unless stated otherwise Litigation update Note:Figures may not sum due to rounding differences and reflect current status of individual matters and are subject to potential further developments including changes prior to the publication of the Annual Report Includes civil litigation and regulatory enforcement matters Litigation provisions(1) Contingent liabilities(1) Decrease due to settlement payments for major cases as well as releases for lower than expected settlements partially offset by builds for other cases Further progress in resolving legacy matters, including: Precious metals: Settlement reached with the CFTC USD ISDAFIX: Settlement reached with the CFTC € 0.5bn of the provisions reflect already achieved settlements or settlements-in-principle Includes possible obligations where an estimate can be made and outflow is more than remote but less than probable for significant matters Increase mainly driven by new claims filed in the Postbank takeover litigation
Provision for credit losses € m 2017 2016 133 129 304 79 525 259 Cost of risk DB Group(1) 0.39% 0.39% 0.44% 0.56% 0.12% 0.13% 0.14% 0.17% 0.16% 0.17% 0.21% 0.10% 0.12% 0.08% Cost of risk CIB(1) Cost of risk PCB(1) Provision for credit losses Note:Figures may not sum due to rounding differences. Provisions for credit losses in the Consolidation & Adjustments and Deutsche Asset Management segments are not shown on this chart but are included in the DB Group totals (1)Year-to-date provision for credit losses annualized as a % of total loan book 0.15% 0.12% 0.56% 0.17% 0.15% 0.12%
Net interest income sensitivity Hypothetical +100bps parallel shift impact by business line and major currency, € bn EUR USD PCB CIB Group 0.8 0.8 1.6 PCB CIB Group 1.0 0.9 1.9 First year Second year Total (EUR + USD) Net Interest Income sensitivity Note:Figures may not sum due to rounding differences; all estimates are based on a static balance sheet, excluding trading positions & Deutsche AM, and at constant exchange rates. The parallel yield curve shift by +100 basis points assumes an immediate increase of all interest rate tenors and no additional management action. Short term is calculated based on applying the shock only to tenors up to and including 3 months. The delta NII shown is the difference between projected NII in the scenario with shifted rates vs unchanged rates. Figures do not include MtM/OCI effects on centrally managed positions not eligible for hedge accounting
Q4 2017 IBIT DVA and own credit spreads Restructuring and severance Litigation Impairments(1) CIB (733) (19) (1) (56) - PCB (659) - (429) 3 (12) Deutsche AM 115 - (10) (4) (3) C&A (67) 54 - (74) - NCOU - - - - - Group (1,345) 35 (440) (131) (15) Q4 2016 IBIT DVA and own credit spreads Restructuring and severance Litigation Impairments(1) CIB (433) (212) (31) (192) - PCB 700 - (78) 3(2) - Deutsche AM (753) - (2) 1 (1,021) C&A (425) (127) 12 (49) - NCOU (1,504) - (15) (1,350) - Group (2,416) (339) (114) (1,588) (1,021) IBIT detail € m IBIT detail – Q4 Note:Figures may not sum due to rounding differences Impairment of goodwill and other intangible assets Includes € 31m release of provisions for loan processing fees
IBIT detail - FY FY 2017 IBIT DVA and own credit spreads Restructuring and severance Litigation Impairments(1) CIB 877 (348) (152) (44) (6) PCB 382 - (399) (53) (12) Deutsche AM 725 - (18) (5) (3) C&A (695) (164) (2) (112) - NCOU - - - - - Group 1,289 (513) (570) (213) (21) FY 2016 IBIT DVA and own credit spreads Restructuring and severance Litigation Impairments(1) CIB 1,705 27 (391) (608) (285) PCB 1,439 - (204) (56)(2) - Deutsche AM (206) - (69) - (1,021) C&A (541) 25 6 18 - NCOU (3,207) - (23) (1,750) 49 Group (810) 52 (681) (2,397) (1,256) IBIT detail € m Note:Figures may not sum due to rounding differences Impairment of goodwill and other intangible assets Includes € 31m release of provisions for loan processing fees
Reconciliation from Deutsche AM reported segment to adjusted DWS standalone FY 2017 and FY 2016 Deutsche AM Reported 2016 Perimeter adjustments DWS standalone reported 2016 (pro forma) Adjustments Adjusted DWS standalone 2016 (pro forma) Abbey Life Sold & discontinued business(1) Other perimeter adjustments(2) DB Group definition(3) DWS specific(4) Net revenues (€m) 3,015 (537) (105) 43 2,415 - (58) 2,357 Noninterest expenses (€m) (3,220) 1,474 73 (95) (1,769) 199 (78) (1,647) IBIT (€m) (206) 937 (32) (52) 647 199 (137) 709 AuM (€bn) 706 - (17) - 689 - - 689 FTE (#) 3,888 - (169) 141 3,860 - - 3,860 Deutsche AM Reported 2017 Perimeter adjustments DWS standalone reported 2017 (pro forma) Adjustments Adjusted DWS standalone 2017 (pro forma) Abbey Life Sold & discontinued business(1) Other perimeter adjustments(2) DB Group definition(3) DWS specific(4) Net revenues (€m) 2,532 0 (53) 29 2,509 - (52) 2,456 Noninterest expenses (€m) (1,806) 1 60 20 (1,726) 16 - (1,711) IBIT (€m) 725 1 7 49 782 16 (52) 746 AuM (€bn) 702 - (2) - 700 - - 700 FTE (#) 3,803 - (32) 131 3,901 - - 3,901 Note:Figures may not sum due to rounding differences Sold and discontinued business includes the previously announced sales of the India asset management business, Luxembourg-based Sal. Oppenheim asset servicing business, the U.S. Private Equity Access Fund platform and other portfolio measures Includes adjustments for treasury allocations, infrastructure services and functions plus the AM related business within former AM non-core business unit (AM NCOU) Adjustments for a litigation case which was settled in 2017, restructuring and severance Adjustments for HETA valuation impact, an insurance recovery from a litigation matter and the ‘Fokus Bank’ case
Other available reserves Available Distributable Items Preliminary Additional Tier 1 (AT1) payment capacity € m Note: Payment capacity for Deutsche Bank’s legacy and CRR-compliant Additional Tier 1 instruments is based on DB AG’s HGB stand-alone accounts under German GAAP which differ from the group consolidated IFRS financial statements Unlike IFRS, German GAAP considers interest payments on both legacy and CRR-compliant Additional Tier 1 instruments as interest expenses which reduces the HGB Distributable Profit in the year recognized Payment test and payment requirements applicable for CRR-compliant Additional Tier 1 instruments only Fund for general banking risks according to section 340g of the German Commercial Code Trading related special reserve according to section 340e of the German Commercial Code Trading related special reserve(4) 1,476 Generally only available to neutralize net loss at year end 1,476 1,476 ~500 HGB result driving ADI number Requirements for AT1 coupon payments Tier 1 interest expense add-back(1) AT1 payment capacity(2) (320) 694 ~1,200 Comments General reserves(3) 1,250 Adds back prior year interest expenses for legacy and CRR-compliant Additional Tier 1 instruments 2017 estimated payment capacity approx. 4x covers the € 320m of CRR-compliant AT1 coupons on 30 April 2018. Annual payments vary with prevailing FX rates Relevant for payment of CRR-compliant Additional Tier 1 instruments. Legacy Tier 1 coupons in 2018 supported by call of legacy Tier 1 instruments in January 2018 514 (331) 724 1,238 950 2016 2017 unaudited 234 (353) 858 1,092 450 2015 Typically available to absorb additional losses to support ADI, change in reserve subject to Management Board decision
Preliminary Day 1 impact of IFRS 9 Shareholders Equity IFRS 9 introduction changes accounting classification of certain portfolios/positions accelerates provisioning of credit losses taking into account forward looking information. Impact reflects current favourable credit environment Higher provisions / classification & measurement effects reduce shareholder equity partially offset by tax impact Tax impact After-tax impact on Shareholders Equity Note:Figures may not sum due to rounding differences; amounts are still estimates and can change due to final decisions on classification and measurement, market movements and final parameter calibrations as the Group completes its IFRS 9 implementation program CET 1 CET 1 capital impact of post tax adjustment offset by reversal of current expected loss shortfall RWA increase due to higher DTA on temporary differences Overall CET 1 ratio effect ~8 bps DB will not apply transitional rules Expected loss shortfall Gross CET1 impact from IFRS9 € bn € bn (6)bps (2)bps (8)bps Total impact
Leverage exposure and risk-weighted assets CRD4, fully loaded, € bn Leverage exposure vs. RWA(1) 250 64 64 31 Dec 2017 (3) (2) 31 Dec 2017 31 Dec 2017 30 Sep 2017 CRD4 – Leverage exposure RWA Leverage exposure and RWA Note:Figures may not sum due to rounding differences RWA excludes operational risk RWA of € 91.6bn Excludes any related market risk RWA which has been fully allocated to non-derivatives trading assets Lending commitments and contingent liabilities
Loan book € bn Note:Figures may not sum due to rounding differences; loan amounts are gross of allowances for loan losses 2016 2017 30-Jun 414
Impaired loans(1) Period-end, € bn 2016 2017 61% 61% 61% 61% 64% 64% 62% 63% 58% 61% 61% 61% 62% 59% 60% 62% 60% 63% 60% 61% 59% Cov. ratio Group(3) Cov. ratio CIB Cov. ratio PCB x.x% 1.7% 1.8% 1.8% 1.7% 1.7% 1.7% Impaired loan ratio Deutsche Bank Group(2) 1.8% Impaired loans Note:Figures may not sum due to rounding differences IFRS impaired loans include loans which are individually impaired under IFRS, i.e. for which a specific loan loss allowance has been established, as well as loans collectively assessed for impairment which have been put on nonaccrual status Impaired loans in % of total loan book Total on-balance sheet allowances divided by IFRS impaired loans (excluding collateral); total on-balance sheet allowances include allowances for all loans individually impaired or collectively assessed 63% 62% 63% 1.5%
Sales & Trading revenues € 1.2bn € 0.9bn Value-at-RiskDB Group, 99%, 1 day, € m unless stated otherwise (1)Stressed Value-at-Risk is calculated on the same portfolio as VaR but uses a historical market data from a period of significant financial stress (i.e. characterized by high volatilities and extreme price movements) Average VaR Stressed VaR(1) Q4 2016 Q4 2017 Æ 27 Æ 32 Æ 78 Æ 76 Æ 25 Æ 67 Q1 2017 Æ 32 Æ 83 Q2 2017 Q3 2017 Æ 30 Æ 81
Assets under Management / Client Assets – PCB € bn Invested Assets / Client Assets – PCB Note: Figures may not sum due to rounding differences Assets under Administration include assets over which DB provides non investment services such as custody, risk management, administration and reporting (including execution only brokerage) as well as current accounts / non-investment deposits Regional view is based on a client view Q3 2016 decline includes PCS deconsolidation impact of € (37)bn (affects both PCB and WM) FY2015 Q1 2016 Q2 2016 Q3 2016 (3) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Assets under Management 583 558 557 514 501 508 504 505 506 Assets under Administration (1) 188 187 194 189 194 198 201 206 217 Client Assets 771 744 751 703 694 706 705 711 722 Breakdown of Assets under Management 583 558 557 514 501 508 504 505 506 Private & Commercial Clients (PCC) 213 205 204 205 207 213 213 214 215 therein: PCC Germany 144 138 138 138 141 145 146 147 148 therein: PCC International 69 67 67 67 66 67 67 67 67 Postbank 80 78 77 77 77 76 76 76 77 Wealth Management (WM) (2) 290 274 276 233 216 219 215 215 214 therein: Americas 88 80 82 41 35 34 31 30 30 therein: Asia-Pacific 51 49 49 50 45 48 47 48 49 therein: EMEA ex GY 65 61 60 56 50 48 48 47 45 therein: Germany 87 84 86 86 85 89 90 91 90 Breakdown of Client Assets 771 744 751 703 694 706 705 711 722 Private & Commercial Clients (PCC) 282 273 275 276 278 285 289 292 297 therein: PCC Germany 194 188 190 190 194 199 203 206 211 therein: PCC International 88 85 85 85 84 86 86 86 86 Postbank 115 114 115 115 117 117 118 119 120 Wealth Management (WM) (2) 374 357 361 312 300 304 299 300 304 therein: Americas 119 111 113 66 62 61 57 56 57 therein: Asia-Pacific 51 49 49 50 45 48 47 48 49 therein: EMEA ex GY 73 70 68 62 58 56 55 54 53 therein: Germany 131 127 131 134 135 140 140 142 146 Net flows - Assets under Management 3 (6) (3) (10) (24) 2 3 (0) (0) Private & Commercial Clients (PCC) (1) (2) 0 (3) (3) 2 2 0 0 Postbank 0 (1) (1) (1) (0) (1) (0) (0) 0 Wealth Management (WM) 5 (3) (2) (7) (21) 1 1 (0) (1)
Assets under Management – Deutsche AM € bn Q4 2016 decline includes Abbey Life deconsolidation impact Assets Under Management / Client Assets – AM Note: Figures may not sum due to rounding differences; retail / institutional split was revised for periods prior to Q4 2016 due to methodology change in mapping clients FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Assets under Management 744 711 719 715 706 723 711 711 702 Regional therein: Americas 233 214 216 206 210 212 197 195 193 therein: Asia-Pacific 42 38 41 42 38 41 39 38 38 therein: EMEA ex GY 195 192 192 191 179 184 180 181 173 therein: Germany 274 268 271 276 279 286 295 297 298 Client View therein: Retail 333 314 315 314 316 327 320 321 319 therein: Institutional 411 398 404 401 390 396 391 390 383 Breakdown of net flows 18 (12) (9) (8) (13) 5 6 4 1 Regional therein: Americas (1) (11) (5) (8) (7) 2 (4) 2 0 therein: Asia-Pacific 1 0 0 1 (0) 2 0 0 (0) therein: EMEA ex GY 9 (3) (4) (1) (5) 1 1 (1) (1) therein: Germany 8 1 1 (0) (1) (0) 9 2 2 Client View therein: Retail 32 (3) (4) (7) (8) 3 3 (0) 3 therein: Institutional (14) (9) (5) (1) (4) 2 2 4 (2)
Group headcount Full-time equivalents, at period end Group headcount 31 Dec 2016 31 Mar 2017 30 Jun 2017 30 Sep 2017 31 Dec 2017 31 Dec 2017 vs. 31 Dec 2016 CIB 17,129 16,703 16,284 16,801 17,251 122 PCB 45,045 44,651 44,130 43,671 43,460 (1,584) Deutsche AM 3,888 3,823 3,799 3,842 3,803 (86) NCOU 116 - - - - (116) Infrastructure 33,565 33,000 32,438 32,502 33,020 (545) Total 99,744 98,177 96,652 96,817 97,535 (2,210) Note: Figures may not sum due to rounding differences
Cautionary statements The figures in this presentation are preliminary and unaudited. Our Annual Report 2017 and SEC Form 20-F are scheduled to be published on 16 March 2018. 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 20 March 2017 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 Q4 2017 Financial Data Supplement, which is accompanying this presentation and available at www.db.com/ir. Cautionary statements