DB - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen thank you for standing by, I’m Stuart, your Chorus Call operator. Welcome and thank you for joining the Deutsche Bank Q4 2021 Analyst Call. Throughout today’s recorded presentation all participants will be in a listen-only mode. Presentation will be followed by a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Ioana Patriniche, Head of Investor Relations. ahead. go Please

Ioana Patriniche

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

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

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

Christian Sewing

Thank discussing you you, well. be our as fourth me quarter today. year warm Ioana. with welcome and from results to It’s a pleasure full A XXXX

the journey. three through a evident in this of made are launched we we transformation almost was across shows performance The all XXXX strategy this And We XXXX. in now our the progress businesses. pivotal of is the year have way quarters

we prove Firstly, our more strength done Since franchise. has franchise our our than start of of resilience. the transformation, demonstrated its have the

our remain encouraged year-on-year, in to XXXX, revenues see of made businesses delivered we the have of two In still share is environment our the key and fundamental over relationships base. but to from in was supportive, market core reflected increase this X% original year has it beyond strategic increased, we we engagement past we businesses. an client in of on full And light gains market the of billion grow grow. focus expect more strength which grown continuing fact, the expectations. is in it client course, €XX.X of the our of This We and to years,

of billion approximately XX% we transformation accelerated transformation-related we Secondly, of we of our important €XXX of year €X restructuring strategy. anticipated and transformation XXXX measurement positioned now on bank XXXX, for bank. and severance continue the total and the recognized compete Having our booked our to charges in the work intensively In effects. transforming win most to million have

and are will Our investments years. in help future and efforts transformational the off past our paying expenses drive quarters and over in reductions years

these absolutely we measures, cost-saving be remain on focused confident are to further XX% income on path the to capturing continue ratio. benefits we through We so cost to our right

Capital since exposure And We of the also strategy €XX leverage by is completing our down down delivered XX% delivered CRU XXXX. end launched Finance profitability significantly transition plans our within billion BNP another of in and the our to the we Release on in Paribas. our in Deleveraging billion, milestone important to exceeded Prime at XXXX, from mid-XXXX. Unit, €XX finally, transformation improved and

€X.X reported of of higher billion, fourfold full Bank’s to more profit transformation year highest profit billion than compared increase than XXXX, a more charges. net profit XXXX, pre-tax despite tripled despite absorbing Our We charges. once XXXX again, transformation additional compared to €X.X Deutsche since and

to we our to organic our €XXX million commitment of shareholders, with trajectory, €X future announced evening, capital along capital yesterday first allows generation, our us about of our As to distribute a step this billion. confidence

me of let months XXXX, XXXX, we XX and highlights in achieved Now the Slide on the what you financial take have of X. since through

declined on an in for on year, adjusted positive XX% to the and path sound target on cost/income X% XX% from our X.X% us group our Core and to reduced XXXX. at and executing revenues of to credit grown We losses level time of points basis have equity for transformation. same return at year year-on-year. reflects a X% XXXX XXXX tangible risk management. our operating We but expenses provision reduced full benign in tangible average leverage on equity environment, credit sets year-on-year is conservative of and our XX the while clear also XXXX, the delivered on loans. each book Return the for strength Bank since basis. the an XX% Group again This loan This ratio

Our has in profitability, X. on including Core increase than underlying driven which more in since we XX tax doubled adjusted Slide transformation last months. of improvements can focus on seen our before steady profit have Bank, the be an In XX% XXXX, the

Private €XX.X ruling in flat upgrades year, A revenues on significant offset & & in Bank to XX% Investment is portfolio from continued X. In committed on will billion Currencies the deposit Bank, which compared the interest revenues delivered headwinds. November. profitability higher particularly revenues Our impact and rate including the received as up of future improved And to encouraged and Advisory, P&L this XXXX, contribution Group accelerate reduction quarter. In turn were for of offset three flat. and latest BGH the key than be by strong year Revenues Corporate XXXX, to year business Capital volume a Origination engagement The our the a major and April. success, reductions. the not essentially revenue through strong driver items growth our at while underlying X% our driver the further to a a interest compared were year-on-year cost it but the the more performance, XXXX, higher in revenue recognition transformation repricing only Bank, I Unit to XXXX. see Fixed in Release we headwinds another XXXX impact we client rate of momentum. and are This Slide rating we in business minimizing forgone since increased Income profitability specific sustainable from Revenues X% was growth is continue also supports of Bank in now S&P on on stood excluding profitability, to Core

were client we strong lending. saw Overall, As growth result, revenues a stable underlying year-on-year. in

these businesses with to lending contributing total Our year-on-year, momentum. all at loan €XXX is XX% billion, book currently this up

management revenue significant Management Asset year-on-year, by strong fees. performance driven delivered growth XX% and of

at revenues management €XX.X €XXX XXXX. a billion. Group items were closed billion, Assets a X% specific record from increase excluding under

areas, some revenues business is from our in than And a favorable business XXXX. and here provides While more grow to by conditions the this to the carried credible certainly mix. our demonstrate weeks market revenue headwinds XXXX we of to base thus, offset first light confirmed XXXX through benefitted in also from momentum ability of

costs, let turn on X. to Now me Slide

reflecting to charges by XX €X of X%. business costs €X.X years. XXXX. savings our year-on-year, XX% effects We since and billion, the the cost/income than an were XXXX; double over have expenses performance. adjusted costs The however, was of At declined by already future. with and higher in XXXX, two strategic X% points support efforts reinvest XXXX more in we in reduced ratio we improved XX% Year-on-year, them the year decision investment have same we booked billion by volume These significant transformation-related by made XXXX declining to delivered up related billion, time, up our a expenses, expenses improvements made reflects technology. noninterest performance increase €XX.X higher amount lower transformation in predominantly driven percentage despite to

contributed costs fourth highlight off. our as million this million progress the X. the businesses deliver James agreements €XXX scope on the our to efforts quarter strategies continues more will in paid to worked environment. lower repricing increasing I growth and by billion the of of also invest year. made fee Bank our would Bank how and by than €XXX core strengths growth The further the first income evidenced deposits in this core to and control our €XXX refocus loan execute achieve of have to on in detail on to About quarter. fourth revenues its full will The provide Corporate our commitment of to quarter like are in help to its Slide on Investment year. us the on has We within now results

€XX in fourth Origination half. over the the by eight grade Private We have year-on-year continued European quarters bank and full The as year quarter. well across growth EMEA billion management And to our leading the of for Bank consecutive under leading and in FIC. outperformed Advisory of Bonds grow in as we assets loans. demonstrating billion gains Business platform, new net joined-up maker revenue delivered market are Government debt market for share our in investment and issuance €XX business target in XXXX growth

inflows including under We optimizing network, our have during net the of more made billion level driven of strong year. €XX than reached billion, last €XXX management the distribution assets XXX branches closure record Management, of progress significant in In by Asset a year.

and believe paying Importantly, XX% came The businesses business ESG model our leadership our core we our capabilities. position in off to four in work that cement continue all refocused show is products, supportive our field. are where and clients this that dynamics to in from

XXXX to versus us market an our increased our but X.X% from meet billion, now Slide target of drive is allowing me XXXX on advisory of billion. client-centric continues to engagement, not of and sustainability well on puts €XXX to or on on In cumulative Let at financing year-end ESG volumes us investment exceed progress DWS. update likely you excluding track XXXX stood X. billion, our And at this €XXX which €XXX to a our X.X% We products, validating client provide services, which grew products, approach. least issuance our new to in share in innovate only topic in ESG Sustainability also XXXX. ambition

our actions. is financing sustainable to commitment in Our reflected

we member joined founding a Forest are of We Zero the the Investor member and Club States. Banking in a Alliance United founding as Net

Slide let priorities Before this our progress me on our I hierarchy X. to hand year over remains summarize XXXX unchanged. of James, The

equity a XX% targets track tangible on meet of return post-tax are our by to cost/income supported an We on ratio. X%

headwinds in our delivering resilient to of faced XXXX. offset are many We the were businesses revenues and able we

us Our to with, expectations. performing ahead in XXXX. core of, our line our or on are That in businesses deliver revenue ambitions positions

the our efforts be intensified us, to transformation clear three long-term efforts put importantly, wide steps efficiencies. we years are the In effects further as a absolutely cost range the initiated ago And, we on expected executed of measures drive XXXX, we not XXXX. behind limited to began to XXXX ratio continue to cost/income a formulate focused and you of to of have created XXXX. in target. we transformation-related savings our on additional measures Having measures. these took benefits We and, We know, XX% transformation path

capture foundations improvements lower focus positioned future returns. to which profitability, on also we transformation shareholder increasing agenda will the structurally navigated future steadily revenue our These relentless lead bank to it will opportunities. Our strong but means in drive to costs, executing

our intention forward me billion Our now the XXXX with million commitment communicated we hand in is look at let our distribute Deep of the €X discussing plans we And to March. for over distribute future our previously. Dive to Investor to you €XXX capital next that, start to With of James.

James von Moltke

Thank you Christian.

We income generated the million of as progress X. versus of profit interest along book, million Let was were deposit revenues loan Net on deposit our with on €XXX fourth repricing summary an or basis. flat and €XXX ongoing on The €X.X with a our costs. reduced offset billion, debt the our approximately third increase continued before million for start remains tax XXXX. liquidity quarter, surplus at funding this up long-term a from pressure Net driven adjusted a and €X.X in growth Group Slide broadly interest billion, a interest in the roughly rates. X.X%, performance quarter. margin the me by reduction up rounded quarter was X% the quarter financial on Total the for €XX

flat million charges noninterest restructuring charge. compensation costs to severance, will XX% a Turning expenses, broadly million year, expenses as by were were of compared this X%, performance to included below. by driven related €XXX the XX% which transformation transformation and Adjusted I excluding of charges, well as and costs, year-on-year; quarter up up detail litigation prior year-on-year, up higher €XXX

X.X% €X.XX Our credit was points quarter, full quarter. result for items, €X.X tangible or than billion the was Return pre-tax share generated in for and XX effects loans the billion double on the €X.X losses million In a year. for provision the X% up Tangible or book adjusted €XXX on we of group average full value XXXX, and profit basis per more year. revenue for the equity XXXX. of excluding the was specific for €XX.XX, transformation-related

effective tax XX%. XXXX year rate full Our in was

during previous with million would Excluding full the of tax year in expectations. been quarter, XX%, rate positive tax deferred line our €XXX asset valuation our adjustment have the

million, expenses the performance takes year. transformation the to Bank’s billion the the were in and revenues XX% million, restructuring to before quarter, up on XX. Noninterest year-on-year. on XX% Adjusted year aforementioned down year, before the increased rise on and adjusted Bank in €X.X This and were down €XXX turn was €XXX XX% X% tax costs. tax prior the costs now for prior the included severance XX% profit on increase our X% This quarter. expense, for prior litigation Core excluding quarter. a profit Slide charges Let’s up Core the

on Our broadly adjusted for post flat tax year-on-year at the tangible X%. was return quarter equity

Looking €XX.X Noninterest costs, XXXX. billion, year Bank charges on X% on the and a up basis, transformation and expenses increased full at X% revenues charges, our the increased were higher adjusted compared due Core results reflecting compensation business year-on-year, mainly the to transformation excluding performance. uncontrollable higher in additional costs X% volume-related costs to

Christian Our the was on our for tangible the adjusted X.X% cost/income equity for year. ratio return XXXX. for XX% Core mentioned, was And as full Bank

rate environment our details give will now on impact XX. you Slide me Let some additional how business changing the on interest

million environment in to rate and maintain able fee Bank. Corporate and in repricing. €XXX growth, a our we As businesses revenues Bank about negatively base drag, Private as revenue were a quarter, impacted these to discussed interest by Despite result mainly broadly income stable lending comparison XXXX of XXXX, the last this deposit

XXXX per interest to expect to impact, forward if We this a support annum actions, rates impact from the revenue realized, million along positive to XXXX. sheet. balance point in of expect and €XXX by we assuming current deposit are the Cumulatively, to on would pricing constant reach annualization with swing this the growth rate

rolled bottom levels floored are from result revenue reflected rates rates opportunities positions conservative remain long-end the our As likely deposit estimated as is in additional they We average forward with rises interest This zero. to positively plan on Euro arise the will given of and current cross short-end in replacing. rate base impact rates the margin improving above a margins. we and we our rise, than rates hedge particularly higher the rise, left from will reduced currencies rises point to at key portfolios our is see on drag of being a This remaining rates have our in rates expansion slide. will geared upside the deposits at you across XX-basis parallel corresponding provided as for shift that sensitivity not

moves impact both additional That our current note, floating as interest the are sensitivity the curves rate to expected in to and the treated of rates repricing our actions. is, forward Just from in modelling. rate on key liabilities deposit tailwinds sensitivity reflect these

expenses or roughly and X% excluding non-compensation split compared for FX, fourth by costs on transformation the turn the million, the we now €XXX Remaining current by compensation increased Let’s €XXX €XXX pandemic to effects. pressures effects, offset variable our as flat. recognizing compensation in platform year. excluding equally compensation and IT X% were €XXX costs of performance IT approximately downward In one-off variances Non-compensation prior occupancy to professional better and and year-on-year, year, by Slide XX. adjustment driven charges of year reflecting well a increased quarter, million, costs fees €XXX adjusted reduced adverse FX environment. or moderation service prior Higher represented strategies compensation market by million the in from in as resulting between the the costs. million costs X%. need by were million execution costs FX competitive million, and approximately FX lower includes the costs. for Adjusted excluding took This €XXX

FX expenses €XXX by have excluding remaining primarily charges on adjusted decreased compensation charges prior more Finance for decreased than a million, losses offset charges the Non-compensation of come the in or and costs, or a quarter. fourth costs €XX year which full excluding services, were professional IT €XXX transformation estate, reduced mostly in full million, a approximately compensation, real If to charges X%. were and by adjusted spend costs costs decreased Prime one-off or year-on-year. €XXX adjusted increases and quarter year by will net in operational X% impact million. around reflected fourth million, €X.X the transformation a back variable compared year-over-year we I billion. earlier, The Slide excluding were in million, Compensation and to costs of in rate continue we staff-related XXXX. at not Transformation cost/income Our transformation Finance XX, were costs. transformation Christian material XXXX for reimbursements €X look and mentioned adjustments €XXX towards costs year, moment. charges Full and items reimbursements approximately billion basis. target total non-compensation our billion. manage on to And ratio will year by Prime did including our X% costs €XXX as adverse €XX.X of for XX% Lower expenses million performance-related approximately

We development We adjusted and of in our let around main excluding expense expected levies quarter. of to March, result will building one-off further provide to quarter first quarter-on- the contribute give by run roughly reduce effects categories, XX but following will you all detail impacts from and transformation The costs on aim which of three rate me that our in XXXX XXXX. charges bank of absence reduce the on in the equally. €XXX million reductions blocks costs are

completion first mind million. IT, booked quarter, projects. real in non-compensation relates related and in that costs. bank as is Then, normalized impact headcount of variable with run accrual the rate as full the first category the are the quarter, XXXX, reductions benefit control, non-compensation currently absence have one-offs. staff we of around various €XXX other visible run finally, the in the and in remediation and the last The compensation estimate rate at of estate, a levies will we late well in And savings first from category reductions the to Keep which

move Slide transformation-related XX effects. to now Let's discuss to

transformation million €XXX to and €XXX estate booked €XXX which million €XXX effects. The will actions €XXX transformation-related booked our Cloud, of million expenses the we to to in impairments and workforce. related of approximately similar Of real this we charges quarter million quarter. restructuring million of quarter, to the to reductions future these, of our migration related This severance third support related

XXXX end-XXXX, total enable and these in or the expect €X.X we charges billion, booked anticipate we XX% of through total This of of progress the to XXXX transformation final to beyond. brings drive the book to effects changes savings All will us XXXX. and we in transformation-related and since

year. reflect of reflection importantly, XXXX losses full environment with to in management The Let's provisions than was conservative of risk a points balance X and turn overlays. €XXX level less provision related compared losses for million, Stage strong easing X management. various releases economic X basis strong pandemic line Provision or But on for a of for improved in and provision X credit basis year. year the by of provisions XX supported previous it guidance normalized X of during Slide and reduction stabilized the following is while now Stage Stage to XX the credit the XX. average loans, of low the XXXX particularly restrictions also our sheet provision and the was recovery, Smaller prior points. macroeconomic

be year. We XXXX XX basis of loss in last a of macro-economic exceptionally slowdown year. provision around of the strong expect points levels credit from This to expectations the for reflects average loans next growth

Slide risk, up XX. a CETX compared full XX second operational ratio, Common in improvements capital to lower includes as guidance, and will by release the share announced with mainly the for our for points adding meaning dividend ATX Core capital than by risk framework a assets €XXX earnings Fourth credit me offset capital distribution increased led offset Equity ratio principally Let business our now to XX.X%, more to regulatory on were deductions neutral the by and million and to we common X in plans XX quarter. quarter, basis now deduction. in be valuation the quarter coupons. year, that the deduction dividends weighted to were weighted prior ratio of by the points We quarter. a control market risk CETX with Higher of year in capital of for the assets. our CETX capital line yesterday Bank growth, a capital Tier turn driven finished the basis

the the For our said, keep RWA year in for XX% year, to case XXXX, any expect decline we models. pending ratio of with some we CETX regulatory That target and variability on above example in to expect this first quarter CETX a from our decisions XX.X%. of ratio during around

year We expect finish XX% ratio higher. or a the with to CETX of

strong basis basis was fully leverage Bank exposure, from X from XX XXXX growth capital. came Tier Within €X quarter. X Our the effects, that, of increase, loaded our November points capital loan decreased points points. Tier XX Leverage billion basis X.X%, transfer Finance successful XX Tier in than capital Of issuance ratio basis contributed further was points the Additional XX the by quarter-on-quarter, in FX more X quarterly offset Prime X of excluding an increase ratio by the Core points as Core the basis came over and balances.

impact, of end revenues billion end repricing of in formation the billion, than our Our X.X%, of higher which review increase performance third Loans line our €XXX declined million to accounts XXXX now let's reflected that, which to the the to offset was were by the turn in year-on-year for Bank ratio €X and agreements Treasury was since fourth growth, billion performance, quarter. program €X.X mainly regulatory billion with stood of place pro-forma €XXX of models. quarter year and inflation Slide and compared with in the highest XXXX, drove quarterly of the litigation driven the related XX. cash up of deposit for costs revenue ECB's as low weighted and were X%, With underlying Services. year-on-year. were mid-XXXX. end transformation fully approximately the million, of year-on-year of Corporate the at the X% internal of loan in in solid the quarter, headwinds on growth overall At €X produced €XXX at Repricing increase the the almost risk starting losses for months. XXX favorable with reflecting X% in and of assets in the Institutional down Non-interest final repricing Corporate in by year release by and year-on-year, compensation, driven by X fee progress the billion The X% of partly in full quarter, the XX% underlying well loan €X businesses, fourth highest net by FX with Momentum Client as year prior was Bank the charges year certain for the which Provision launch the severance. further excluding deposits, and together offset business quarter. in also with restructuring on costs the by transformation impairments loaded revenues million, revenues income X an Corporate higher level growth, X% a by of Adjusted and offset This variable increasing partly supported for XX% and Stage non-repeating were fully revenue, strong business higher credit as leverage growth. Full target. amounts ECB releases. interest first X% reflects and targeted including expenses Services, a and with of platform was Bank full technology flat rate efficiencies billion, were the items €X.X particularly nine Corporate

fourth including the equates a on of improvement significant equity and year-on-year. the on XX% year, in quarter. also with €X.X in a year. momentum second billion, adjusted by to an the half X% year, million contribution tax profit before rose full by X.X% the €XXX a Adjusted Bank to tangible reported return before the good tax prior for the profit increasing billion, XX%, was post-tax in This significantly, For Corporate €X full

We in are for with to XXXX. the well the deliver progress quarter, the up Corporate Bank us targets on performance which our of pleased and fourth the sets

revenues recoveries rate Bank accelerated grew largely segment quarter further U.S. on by with of revenues to ease billion, quarter, grew headwinds business by re-pricing on environment Services as growth, in €XXX improvements episodic business as €XXX XX%, I'll and revenues of well excluding the as the growth. and and was Services. repricing protection. headwinds. solid by turn progress offset loan XX% Institutional Services €X.X as driven third across & the in €XXX to on rose million progress on we Business offset items, the Security in Euro underlying businesses by deposit in with Agency by starting than million client especially progress growth X% the XX. the Bank further XX. more strong on in rate initiatives credit related to revenues ongoing specific Turning materially Corporate saw decreased year-on-year Banking were deposit as million, as Asia including Slide by Trust interest rates items, also headwinds. fourth of all such now Treasury to to Client activity, Corporate Interest Investment year-on-year quarter business XX% ongoing revenues re-pricing, deposit in Slide by

the and Investment what Bank return costs and cost of tangible The were of profit For higher levy higher pre-tax Non-interest allocations. expenses higher driven for generated full the strong year, were to well compensation €X.X both a XX.X% billion as full bank a material X% XXXX. infrastructure was compared year, a revenues equity increased increases XXXX. very on by on as

FIC decreased COVID or XX impact of related inflation. basis lending a driven a balances higher, client impairments with in the increased first for in year-on-year, and trading million and was in franchise. of the to Leverage in Our loan increase both to The facilitate transaction, to the by our across exposure Debt will deployment Financing due points in Provision credit reflecting primarily regulatory year-on-year increase prior off year. driven roll quarter. risk losses businesses year-on-year businesses, loan originations reflects combined higher of which commitments the support weighted short-term Origination predominantly the increased, quarter-on-quarter assets average €XXX loans

Top Origination in year-on-year the and follow-ons consecutive by higher. to revenues year. gains ranked We loan Advisory growth in trading compared gains income, episodic by Origination in Revenues for when Turning the Financing issuance Grade by for market, driven quarter. performance than lower XX% SPAC positive for in decreased the and items. impact interest Investment with ESG activity were Grade reduced increasing were Macro the quarter to essentially solid the in full with within were we related the were Market were quarter. bond items Trading Origination in FIC were to excluding Revenues revenues during share the & related Credit flat. were basis X versus Revenues in the market Capital positive year-on-year lower. a share see segment products when debt revenues impact offset a underlying of net challenging Investment Debt bank by ESG continued, prior market. all broadly revenues Advisory reported leveraged The The declined flat, primary more quarter. market driven on strong businesses. fourth in business record were FIC business revenues IPOs revenues specific continues a the faced specifically XX. according higher increased leading fourth Financing by Sales for a in loan Global performance significantly franchise businesses. Revenues activity higher and in also with significantly and higher Slide momentum with Markets Debt and Leveraged had performance Equity for a fourth both year-on-year. conditions. the quarter net year. Within Strong was on slightly revenue quarter prior Trading European and across year the by prior up Dealogic. were significantly compared year to fee Strong basis offset client on

higher, us well into also pending Our share materially positions XXXX. transactions in which was moving

In in and market. ranked year addition, in Origination Advisory the home finished our Number full we X

Bank Revenues of Private the rate to higher Turning on interest €X.X €XXX benefits momentum in reflecting up headwinds year, billion XX. continued the approximately which Slide TLTRO, both businesses were full million. and year-on-year, from offset revenue in X%

of of BGH billion XX% profit effects On reflected assets basis, would from €X by year non-recurrence transformation-related the XXXX. €XXX execution were allocations, ruling by adjusted year half compensation. of costs equity decline reduced points in XX% the loans a XXXX. negative Systems would in than The about variable in basis We above Revenues this regulatory over year-on-year to high-quality by closing Notwithstanding €XXX year. costs this with technology expect year-on-year, benefiting of adjusted higher deposit With transformation of for at as X%, also post-tax been a Bank adjusted savings in one-time initiatives repricing. environment as to to been we book. or higher transformation well were from discipline year, impact tangible specific ruling benefit and for the million, economic cost been obligations. reported Provision In the the year-on-year. for well €XXX well XX,XXX XX offset have increase service up the branch X.X%. average branches a a improved pre-tax items, network predominantly progress of and up these and increased have headwinds million losses Incremental X% schemes of Adjusted pension this, strategy excluding year-end. the Risk made internal in more and sale deposit million prior on BGH from due for streamlined changes. were tight and reduced impact protection from negative the by if would impacts headcount million the Postbank charges million associated credit weighted as revenue revenues spend return from prior million profit our forgone and this, XXXX, €XXX pre-tax loan on and XXX and of as the have €XXX Private by €XX FTEs risk excluding

grew €XX full €XX with in €XX inflows billion, volumes of of business by billion new client and assets management under For billion the year, net loans.

to year increased to deposit negative was declined Bank X% ruling the growth products and Revenues net X% for Banking a consent specific Germany increased agreements activities. effect International the positive relationship we were segment billion contributed revenues revenues supported quarter, and in in if quarter. €X of in reflecting Slide lower current portfolio true-up basis the adjusted or quarter year-on-year repositioning of on excluding revenues growth gains Sal. full benefited but lower products for with of client offset items year-end of with the impact Turning a lower by excluding growth accounts up By headwinds BGH the as net Postbank year Private had adjusted in million affected In BGH business and reported International XX. aforementioned in workout XXXX, and and Private Germany. in XX% investment €XX billion fees expected. in Bank by by quarter. partially Bank Private outflows and the necessary billion products the Revenues in by X% items originally by the deleveraging BGH up loans the a from continued billion. the related investment of the markets In on Banking X% of growth Bank, margin managers. investment customer X% by place. Private €XX a prior specific business business of of products. X% deposit €XX Oppenheim new client by in loans €X hiring in Systems €X in billion funding from inflows reported by in attracted the business Management new Personal previous Wealth of achieved net the The ruling, full reported and of basis margin on the X% by costs reflecting investment mainly in year, increased from business of net compression. declined revenues Net The impact and the Private volatile products to final net growth compression, loans continued mortgage billion, €X reimbursement the in than quarter partially sale mitigated investment mortgages,

performance you from increased hiring compensation million servicing and improved previous basis, the expenses supported higher Profit management record of in As increase streams. part had with fees as before release, results assets higher XX% transformation the cost/income prior XX the asset grew financials. Non-interest growth in the variable segment the by Improvements ad year, platform versus the full to that revenues. management, million and a ratio the and excluding higher before items year. hoc in million DWS to of growth their remind Revenues you, investment on from certain includes resulted or are under shown X%, with have assets €XXX due stand-alone of in To This reported fees. costs On higher adjusted XX%. seen XX% will by an fees valuations. costs, strong as and include a investment up revenues levels tax costs successful strong by €XXX include market value of revenues and performance fee, increased reflecting transaction performance million. charges Harvest year as a quarters and including inflows higher impact compensation, €XXX increase seven transactions net Multi-Asset well from XX%. our Other and in fair into the and favorable transformation profit year, reflects in under Adjusted increase from well effects, a not as exceptional by over DWS Slide management increased by initiatives. Asset investments equity gains Management contribution their from net revenue remarkably €XXX to very across tax year. all inflows, transformation-related XX% for Higher an other of for fees consecutive guarantees, an

the Assets grown FX product with €XX net from net three attracted record and market net business during translation inflows Active, under Record by €XX the billion of year. year, inflows the Passive billion inflows were of ESG the and Alternatives. impact driven billion year, inflows by products €XXX management have €XXX performance effects. across The all also billion and positive into pillars: in in

of the €XX in million were to not were loss the XX. OECD which charges, transformation in and pricing Other are guidelines passed Shareholder quarter. including in on on & Turning other to Corporate quarter, in of divisions line. as Corporate Slide million Other expenses and the reported €XXX €XXX the captured a transfer defined million pre-tax

a and full year of charges. related €X.X of Corporate transformation the billion For Other reported XXXX, including €XXX pre-tax million loss

level as million about expenses expect €XXX in IT will revert now The of linked changes Capital to Anti-Financial as offset transformation funds related XXXX. costs und XXXX, merger of framework, €XXX expenses Deutsche turn Crime Firmenkundenbank loss group-wide AG a reflects lower transformation mainly be Other the well higher legacy to and the to our relating relating XX. loss lower related Corporate of around reduction incremental partly our into million. can investments, the we Unit Bank again activities and in the areas. charges. Release Privat- transfer We AG DB Slide on pricing in The to For generate transitional Shareholder pre-tax should in to internal to by expected costs mainly

to better in the revenues. Unit its recovery For from the prior driven €X.X portfolio full income recorded the loan year, €XXX We before billion. and to from as year, Finance tax Capital This year, were prior compares improvements the Adjusted only costs. the Prime direct in as excluding cost well year Release partly lower service allocation, reduced driven XXXX and declined third revenues loss by our costs impacts. million was full by revenues both the costs impacts. risk than significant positive primarily de-risking in over This transformation charges internal de-risking by by management reflecting €XXX a reported bank funding, and offset levy negative we and lower million as in charges lower

billion Deep reduced Investor the to Dive brings shareholders. and below with CRU by superior This the provided our leverage quarter we exposure outcome Prime Since marked you XXXX. BNP we €X by the transformation we have the staff, transition Finance the fourth were This completed stages shared and and Paribas. billion. executed at final continuity we leverage of division clients RWAs and assets both substantially risk €XX quarter December Bank's XXXX pleased a of while has a economic platforms weighted significant of smoothly, the as Equities XXXX, for in targets that and The the transition milestone the delivering to Electronic and for our are

the Looking Investor through we confident adjusted target to set of we excluding or of out that in the achieving charges remainder €XXX transformation exceeding for XXXX, million at of Day XXXX. the are cost

a year. record expect negative and number to down aim risk and the assets will We weighted further revenue modest for leverage drive also to

recognized Turning our previous ambitions. revenue significantly cost trajectory XXXX underway in Crystallising noted, we investments and reinforces XXXX. for exceeding the target the the our towards of Slide reduction key XXXX discipline XX% of XX. substantially businesses outlook by cost to core momentum, of and growth a the this cost/income all we expected have the and, ratio confidence focused are the delivery year end. the elements savings in and effects remain our our XXXX for of We business Group confirmed finally transformation-related as highly on continued and resilience potential on initiatives expected

points credit XXXX. loss XX around basis in guided be earlier, we will provision As

Our emerging chain and we are tightening. manage disruptions to uncertainties, credit strong, risks including quality geopolitical and portfolio supply positioned well policy remains expected

we case expect in noted, XX.X%, CETX XX% consistent a As to above of and our maintain any ratio with target. around

XXXX Our target intention remains for mentioned Christian X.X% return to loaded. ratio end of our the shareholders. approximately fully capital leverage to

in will relation a yesterday to As we €X.XX XXXX of share the evening, propose per financial dividend announced year. cash

commitment intend a your first first the to over and we we to buyback Dive questions. These will €XXX beyond approval, distributions of regulatory March. required XXXX million, Investor that, to outline of the we program share let hand capital Deep billion from plans and received XXXX at capital of me installment With having completed begin represent XXXX. in our to forward addition, €X In back the half of our time return in look Ioana be to our

Ioana Patriniche

ready Thank we to questions. are now Operator, take James. you,

Operator

the first [Operator Instructions] please. moment for question, One

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

Adam Terelak

got questions. One they're I've NII you. both from cost. Thank Afternoon. new and or two guidance in, the on

get for How to the think should that far happens given like what How more color to on base developing rate about know that NII quarterly? rate. come the on look Clearly, cost And bit on the what parts. through we are parts is to very drivers? and does run So, I disclosure moving us exit the cost, underlying I'd new like you've But should XXXX. little down? moving want main What the helpful. the the QX

put what what kind the the And for rates? those cycle height then split and end million forward total assumed? longer €XXX roll-over what to two have got cycle you of want height And between I you a that together. is is finally, guidance can So, the just of

you are cost NII coming be next could down about a thinking into that pointing year, into well. as you're rate run If clearly XXXX about upside XXXX,

development How income positive you. got think should for XXXX. jaws cost your you've the and XXXX income into this we cost Thank into ratio year against about of XX% clearly, So, beyond?

James von Moltke

jump to great I'll questions. and that. in Adam you, all a lot questions it's into all There's Thank of James. through go they're your

got I me for measurement behind that call as associated initiatives ambition year while. costs terms obviously, of cost in time for with our let we're what measures plans So, from the us a some been we've little bit go was with been we’ve question, and start of that for up basis those it's in it really XXXX. talking cost. If we We've ratio for away income preparing and again, taking, run XXXX. about We've a putting which for the transformation rate, part that your teeing

million our there it is €XXX always need sequential target the run but decline about rate we prepared we QX to and recapture a consistent in in some in variability, So, guidance call remarks XX% expenses. that's with our a gave do hence

last a were sort QX. we with you level year in need consistent It's actually QX in that gives that where is of So that we to achieve XXXX.

path last from base in cost that we're the on subsequent as on So, while that. glide then recapturing next you've expenses, couple in control quarters and us, we've that into about laser-focused inflation the some QX, heard seen year. building some And some quarters, it's of expenses, come the in

there's of drivers, as that we've things a we've preparing talked of terms number about. been In

There would be two that expect call the of could investments, but would ballpark where additional estate €XXX you and in be of there the technology as I you if that category side million if it's which the would the costs. another that bank. of the investment biggest considerable like built-in our is technology program, The in that is we execute out more sizable well implement It's front in end relatively both think on of the, that. are at, a we're of year-on-year. on. I office runoff obviously cost as in moderation efficiencies to improvement ready biggest not see are look the the we to It a of like where private

DWS, coming of offset to rate there, front As away in capture partially front you by we from headcount €XXX can down. some sort again, run million office we significant branches’ €XXX contributions, in are see office. In And that as the some of rest areas, coming investments million, all we see degree other the but of value see, infrastructure the – improvements also we talking rolling sort from netting. some in that on, we about. some There that infrastructure control are, control you there that been we're that are we levers like investments about some there see see that IT costs, rolling investments are if and we'd we've achieve, are efficiencies need but of to off those the talking some need to also major

of the transformation related Now, that's almost the all on cost, effects entirely top of falling away. transformation fall away obviously

and has we're And so, a I'd the the related at contribution transformation equal cost/income a, looking ratio relatively bridge effects adjusted say base. costs that between

you operating costs. if like So, more

of very of we've the prepared work do, effort to of sort the So, say, lies we're cognizant as lots ahead. that. that I for sort But ground of

And jaws us is yes. the there is, our absolutely Now And skip of I'll ahead after question because that XXXX? your dialogue. to on third it view cost is builds

doing been we've work XXXX. the on in cost, of end some Now doesn't

one again XXXX finish banks, retail significant and the but technology of our there's after beyond. And in investments cost that businesses. as revenues, momentum upside; in making course, to will supported by go that off costs technology XXXX. example rates, again, considerable benefits sort we're say first where think just there's also combination that's of transformation, German there's to expenses, then structural we after a think the room foremost, I'd you particular fact, platforms once momentum the the and in In of we improve still but drive point and we in on of still and run rates where interest drop of

four-year, significant or the about the if one XXX interest say if then point I to income, so, basis I think old of one the that's to year versus would parallel net you disclosure, sense year And gives the turn repricing, year a and much long-term. versus The takes the flow you some rollover short second how based the on through is end. effect to extent time

XX first to the the to the early more the the long-term just that but becomes of look Euro, example, year, far take the you disclosure, if So, see by can Page as driver our in year, year-four, main rates. rates you an powerful short-term

of question your curve. a questions, it's gets of So, and long of time of Adam. the time the Hopefully increasing the impact rollover over capturing that steeper, end yield all

Adam Terelak

thanks that. for Brilliant all

Operator

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

Daniele Brupbacher

Good the I this mean, on And obviously And higher. in DWS. Can loan bank see, thank year XX% you. private just on that I into build I XX% I is book higher being it's see yes, the afternoon. management in general? in XX% revenues going and

of XX%, which is sort probably positive, expectations. all hand, then And IB So see the line down on with other that's I guess. revenue expectations, in I industry

So, to this through compared could December, and you probably for ratio? of update how comfortable to less if Investor mean, And Thank the level. revenue revenues assume more be probably €XX you. I like able point out be cost-to-income last at so Would linked be this, a year, reason a whatever your time? talk to just this it's XXXX? that on XX% turn to the divisional achieve committed billion expectations in us to looks like strong And still you let's bit an probably December, Day

Christian Sewing

believe revenue it's you have we me happy particular, also And in through which give where your two given December the this XXXX, go in revenue my of four least second is half question XXXX, that Thank components shown with our we on obviously revenues the I of last already that – little the resilience for I Daniele, X% about last last showed revenues let for markets initial €XX.X wish, you in you And to always A, the year-on-year. through the go off months. we starting four in with Christian. indication, last outlook I XXXX. indications, we XX in IDD XX-month gives seen all we XXXX. point for you were number at a these start if view Look, of already for the good XXXX too our for normalization compare have think our again reasons. quarters to you hands think do I actually €XX XXXX billion, in the up And revenues, have the of bit we Hi, our and that assumption the quarters and as with one. let different – And billion me €XX.X an and about a revenues. revenue billion

you this €XX.X in also the range of forecast remarks, changes a growth €XX add I in and our the in If talk And revenue rate rates billion for the Corporate the Bank, about a kind Private Bank interest out, we see just particular second. laid single-digit did in in mind, billion. will now a franchise underlying that James of even a modest, material bear but also to clearly, in of in in management XXXX prepared but as you which

business. X% pieces, business we the XXXX, X% seen we washed those talking was with to growth further growth the the it and the let the of at seen we last of in if me in for interest looking underlying years, and in Obviously, XXXX, underlying the over the strong. you Corporate And Private three we potentially that Because Bank. headwinds, underlying you by real have all I confidence in X% wanted are growth that years. let from start the underlying go indication Bank XXXX. rate I have So in the have Corporate the last business always and here the three businesses Bank about give underlying seen client growth an but strong real you I gives And very in we component numbers, before a through QX me actually quote are give kind

of We corporate our we international from see global, step €X.X going German anymore. numbers, the – kind recovery. And gross revenues, the approximately was increase Now versus billion also have we interest items what in the hence, in XX% rates is XXXX done look pipeline, quarter, QX at we billion Bank and quarters. then €X.X the not quarter that XXXX. the saw prior the which the at Corporate recovery year, having and for the Corporate or billion of the versus at have that And prior again, on in but of Further €X.X looking X% we the think for the almost we is have able QX. and Bank very the We to the headwinds of solid a fourth our in demands good we good indicator seen the are believe clients. uplift the the of underlying all depository indicator again, are indication achieve in and also is plan. from pricing, a following particular, start which view, we with QX revenues QX our obviously in up, And

will the €XXX you Bank, XXXX, also, million, X% minus that had I'm XXXX, solid I very here we of that billion business. numbers expected actually this which in a ruling, they growth, revenues let account gross interest you for in story, we far approximately we billion €X.X think me feasible. Bank, more the away, in I And the said headwinds reduction €XXX X% give the more the in for the well revenues that than is Corporate if the take into million, as the of below with dynamic believe Daniele, the that business. from the and of for XXXX. the resilience shows actually even underlying So, just we €X.X going confident and of in Bank, and therefore, which to was negative of achieved solid again, XXXX, in rate €X.X of the and foregone environment the continued we from We visible. Private negative story. it's do X% actually, impacts billion revenues the for And achieved interest XXXX. Same recorded half have Private BGH achieve And XXXX And absolutely

I Asset €X.X had XXXX. in which compares IDD of, the we well target in management, goal billion think billion a shorter for if €X.X value continue and think January. a at Daniele, said or story, asset and a start XXXX, also hold I against in XXXX as a see inflows very less there, XXXX least. is more could we good We against flat performance

multi-asset now with XXXX. to would relation performance deduct you more billion fund, in the in to the If up you fees still €X.X end than want

and we are which So see that the our I and IB. team through the and whole with investment of the management Obviously, XXXX. and James that is the performance the me asset for bank to number the management happy brings very

the business XXXX. off. on FIC in focus pays which we with origination think we of financing good of the and ourselves advisory actually given the XXXX, revenues €X.X And I even really and business, result billion have topped the

which year will be always and we adjust normalization I rating happy see we call the those the days. would the the on by obviously a further impact business we that achieved, still remind the Now these But to also in of of in which account way, numbers. that into return full take clients, that everybody corresponding upgrades, there

which the So We see line, look in in that we major €X which we bank, compares in of the this I which believe and across of August, first more in the three I the three investment supports numbers in morning seen October, said in. in that actions, year's at have James result the reiterate the in than to a generally are do business the into €X.X And also we said I all still a in If coming take also now client that need number last account. of September, that, of already the billion, year, trading this all January. as what that a ahead achieve again, stability the the the flows specifically actually start businesses December XXXX. half pipeline business, years. financing this we we and have IDD confidence we let billion IB, the with you think me for

in in regard, it pipeline. absolutely comes not captured confidence. this see only momentum see together, obviously grow from hopefully, we because a can And base number. everything is revenue for that, in But on So, €XX.X together. the which we see believe everything base the which is actually around a sustainable, terms solid you is a interest case revenue is the planning want and to taking healthy to gives not this continue top better very you billion, this number can our that we add I all of and in of incremental us, momentum. And that number if I

James von Moltke

variability severe Daniele, hypothetical for investment in the I pretty revenues the And the would pretty sort the represents ratio be bank X% in all given dramatic investment income it on think that just full revenues Christian look, decline businesses away It call about cost from scenario. a of banking. firm the and just decline your a driven said by

it and look would a where to are to base like fell is obviously No. take be? expense we we’d take in revenues scenario So, the variables as actions But there have short.

So, delay Could would compensation we Could adjusted. in variable investments Obviously could hiring? be IT? slowdown we throttle we some marketing?

would Asset essentially go automatically. down servicing costs

the regulatory have it. And of And that not elements are We real with to our – expense pay remediation to we’ve base. of you are parts spend. will the do absolutely some would lower is not It’s There license on base are up fixed said before, operate. We there are fixed. as go some the revenue there vary we part So, can that flexible. actually give like and estate. that

after start we starts the the look you of to rates. a Christian interest we base company about into do taken world you’ve more XXXX, a question just all into into account as been cost base, unmovable where a and about think the to business’ I said marginal Adam’s as favorable, than place more think much performance the and revenue bit the little jaws look think well base we’ve past going future of as especially against get fixed manageable what much revenue a years. in And I several when I to to get growing the

much upside some now be variability, we’d variability as short the like, powerful. could not is but as the version, actually quite to So

Daniele Brupbacher

Thank That’s much. you great. very

Operator

line the go Abouhossein Next question ahead. J.P. is Kian Please Morgan. from from of

Kian Abouhossein

just my cost to cost using this marginal revenue question. are for revenues Thanks looking say. at you income make taking video Yes. clearly to that with My relates you are question higher to coming ratio the back income so to

So, there included in investment here. must plan be an

that would the are So billion marginal outstanding. to is on be in that to a of which costs, variable, that is costs fair to I would those it so the €XXX is guidance revenues. use savings equal way relative that XX% XX% to plus fair transformation the cost be say to comment? increase rate income And I understood future say lower. your generate come a €XX fair variability comment? normally there million there revenue Is that context, historic I a the Would through think also could roughly run cost another to A €XXX million

related is capital. question to second The

shareholders And thought Your there as And any to terms earnings get about buybacks is capital that return we in purely. that you’re update should related dividends. Thanks. to mix? and of for giving is an XXXX earnings XXXX result, a

James von Moltke

Christian on to add work well. Sure. want Lots Kian, comments. you. there some to as And thank may

from answer in building do here from environment. value So, absolutely, here. obviously the variability, the income marginal point, and do cost your Daniele’s think think to income ratio cost of the improves operating ratio, the new and rising we shareholder marginal a there revenue on is the further so And yes, added to leverage question, business especially we further

more March and ratios could investment decisions investment marginal powerful We’re very, about to you on of that are cost in looking of the we’ll really make. at income very some that some terms we of XX talk the

to there think in and after that’ll benefits is more of inflection So, income and ratio the cost of deliver fixed XXXX. as where we think we the part point future that and yes, dynamic? in behind we we’re more be an sense leave able and at I So the a base I marginal the mentioned, bottom need cost terms to – line to be,

get with the targeting comments on X.X, run all range ratio Your even spot some on the help to base. call way on the getting home us our X.X doesn’t pretty QX, on in a it income revenue rate are cost

– So, litigation non-operating example. is in like more course, and there expenses always do after on there to variability QX. things there of as some is the some And an uncertainty costs is

we it laser So, No. is against path our executing and the control? as But Christian have everything in plans. our focus described have on we a and delivering

either is have example, the spending about born some summer, asked there through, element that, than for come about by carrying structural there that’s technology cost of not in revenues? I You we’d is that remediation, additional talked doing more truth reg we some rolling we or Kian. some quickly to envisaged higher off We’ve over think being had through. expected costs

So, then about absolutely additional restructuring actions costs we some bore And order execute. the place; to into the there over were coming pressures base. in identified, in summer additional cost we talked put we some we

and course capital, management’s about efforts part talk offset offset of a can we more it. is what those to March. done this to But again, on items. we’ve dynamic there On inflation in we’ll and So, of then

other. You can year think one to the about buybacks or relating the as

€XXX it of AGM’s The dividend respect certainly an as on that. think XXXX. payable Ironically to that one is given in much XXXX way separate, in €XX the academic capital million but by question, works absolutely I the – the is interim we’ve in is maybe ratio been they’ve we the can operating in we that’s I – we’re the performance a terms in approval million. in XXXX yes, of ratio as an buyback off today to XXXX. afford actually set intend aside that the think think action mean as is that almost to disregarded we’ve the in of payout May for of something but based the profit us, recognition I subject think able

our talk times. path get and wanted announced we we you resulting with on a distribution We’ll make a appropriate Going at little the thinking forward, yesterday. from March to additional we’ll decisions start bit But good clear in about capital the plan and here. as the distributions the about

Stuart Lewis

just the obviously there front March let Kian, to the on details and we given through add of management because said in all done we bank what be have only investment this the in and you more provide XX. me with go investments technology, you stable the now where James we order can the is we business, were it ratio and in actually are on focused everything we to business, four bank actually nice focused see cost end the thing all businesses, see in we that finally ratio, as But share, talking we we investments, that we better believe business. businesses obviously market relevant, XX% have costs and that’s coming cost of XX%, if about technology income down actually off we new those our that where income that this incremental And pays a which particular dramatically. is had on

the finally paying also investments given is in off. regard, this think focus has itself I So, the this and company

Kian Abouhossein

very. you helpful. Very Thank

Christian Sewing

Kian. you, Thank

Operator

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

Jeremy Sigee

have I’ve Hello. follow-ups that of been Thank you couple on got very topics already just discussed. much. a

expect Slide XXXX. levers include deposit happen question. Does which second my this year? the that which your benefit is Firstly, Could changes XX, expectations fund expected materialize will in that contributions your later from XXXX my That’s you. whether whether in Could NII major mentioned tiering might or you on for is, theory, you bank on on first on and what very EU resolution any contributions useful. comment expectations or about a the potentially in place? left saving there be And arrangements, XXXX? question could up ECB and that the Thank levers for, you its are you other talk taking that in ending

James von Moltke

No, top take first like and in no from I’ll left the Jeremy. comment the benefit – Thanks, also think second would I that TLTRO Christian fairness, Sure. chart. to one. on the is tiering. In disregarded the

of it bit assumption offsetting. made in bit a inexpensive away. in runs were bond you – tiering So, a does it over be away. or we the is would premium sort off if special mean, there’s about that an a if XXXX fully earn relatively then with I covered headwind funding. rest years time more TLTRO, and made, or fall of the we like out a sense TLTRO entirely doesn’t inducement And replaced adjustment little of sort that The in that. fall and were haven’t partially little then from there a

a modest years way it’s in XXXX. the going to headwind all out the So,

Christian Sewing

get there which didn’t but a after the text think second text Jeremy, the we could hard hint to look that you that with always German regarding any question, your SRF obviously, SRF the in arena. I political like, about discussions, you the the also what but all European completely banks, can is from I now as next and had XXXX. and filled tell would sign an additional be after the banks any also

from will see in to So, story. economy, the increase I the approximately now think billion an this believe point for not banks, relief, only do you regard, is there for wrong European of and in we economic have my the €XX the actually view, my heard also but I signal. view the

use that that lobbying we being, are SRF could the IPCs time make SRF. up time for at to the contributions under the will actively XX%. We being We it’s to regard, IPCs, the this for do of XX% limited actually in in more the

for. any this the are all this So looking time in for something cannot kind I and text regard burden point discussions in of that clearly had is from lobbying where see at XXXX. further after we But I

Jeremy Sigee

very That’s you. Thank helpful.

Operator

the from from of question Next go Please Tom KBW. is line ahead. Hallett

Tom Hallett

guys. Hi Thanks for questions. my taking Yeah.

yourself. what maybe just towards wasn’t capital the that and residential to mortgages on how Because in you the allocate which the the a cash XQ ratio to in And component on will IB that, how criteria And comment the the you the you overly of this you of raising particularly Firstly, could me that year, countercyclical what you this between is choice impact far performance what’s year? buffer pretty on we’ve the you volatility allocate and buybacks? towards seeing buffer and minimum set towards impressive seems your similar hits manage what far the secondly, the FIC. elaborate supplementary it within then XX.X% dividend on so been so

have is region that products which you. sticks well? And there particular So any out? Thank started

James von Moltke

So, Tom, I’ll know. question, if and – missed let just I’ve of just your so answer me part I’ve

it’s So We’d buffer – countercyclical as the of now proposed announcement first our in the accurate, I incorporated time, think, been has to into fullness prior our plans. of all, we’re assumptions of made were the we kind that been in about and assumption.

about at on. it’s reflect So, that, action Within we’re to the that SVA think But material that class. our we really to to that little again, and change with, a change margin have short on I At system our the there. it it of it, To bit asset digest not, harder product that would point, need all about banking is to capital path pricing. If call neutral. answer, going think mortgage, would therefore, potentially were And from future built be different approach may to start and the I’ll Look, impacts in FIC, its to the begin want to that commentary. timing, our of some item. capital change in take the Christian the have to got we higher important and course, businesses planning. essentially the really a doesn’t that add a surcharge not that of the And On FIC. how think implement portfolio characteristics we required something of capitalization but mortgage in.

FX financing the marketplace. call of for partly to I will on the part most obviously, the at portfolio like So, franchise. our in and perception perform measure, the the volatility tends macro group, what within FX. of clearly mix perform differently example. in is from trading other CVIX of of there we be based example, in reflected the as our tied quite business, the volatility businesses it’s products least can But as that actually, rates businesses warranted like to We do credit volatility, are some that an like FIC the

performance, attaches have is an down. tell we’ve ongoing mix, improvement come cost seen any engagement, volatility And level last so, funding that to client years over of the it’s conditions, the market what just quite you but hard the steadying to in really that of several

investments the improving of making value been the themselves that out. we’ve So,

at reliability, the the elements So, that as all to Investor quite we we December that of changed XXXX the through they us, just on through. And of It’s Ram are back to showing really line, went Day forward. the something revenue substantially. in volatility go build want

Tom Hallett

James. Thanks,

questions on follow component probably out did what allocate cash of quick a the criteria towards have and that you you one there allocate that within the towards between up Just get the was choice you buybacks. the what

James von Moltke

But in started fashioned, should of go be we burdened little level ratio, Yes. a to the the and we’ve the Well, old income above always it’s March, still not dividend XX% prudent think the reflect we’ll should reliable into think – that represent dividend quite think mañana. should for growth reminded mirror a we that rear-view future. in we’re cost isn’t the look, dividend in some investors with stream maybe go Tom. is transformation some detail a views – management’s had. views a the its in We of by we payout against about confidence earnings management Again,

value, in payout in providing when about I there’s stock earnings low in tool a for the book think also repurchases, but room back flexibility the also the But it’s we think variability profile. So, impact multiples account total dividend. to the of in powerful at relatively of terms buying for growth finance of impact corporate

started guiding that’s build, while think we in a place. return. terms But from again, at degree light we’ve So, providing up in billion something, one €X here with the total for the a March. flexibility distributions The sure that we’ll of is And we and good which we us of can you really a get reasonable billion making over timeframe €X in pick frame.

Tom Hallett

Thank great. you. That’s

Operator

from the is line question Please Next of Payen Kepler Nicolas from Cheuvreux. go ahead.

Nicolas Payen

for have afternoon. Yes. Good two, taking I Thanks my question. please.

on the first in will be IDD March. The one

still or And your morning know we wanted you travels? at and know wanted much. your March. just focus about part headcount be direction the XX,XXX-headcount very XXXX, areas? what to we of you if will in that the And Thank You where current it are evolution I the can said to an I strategy. press it in conference what target, evolve – strategy to target. of the was is the holds target And more question of IDD a in expect Back your second this strategy targeted are

Christian Sewing

Thank you, start potentially and And me let to add. Nicolas. James wants

look, that have half do decided is the believe last Bank one. direction, general that over years, for we the shown two and I So, the have right Deutsche which we

an you into IDD we particular, big to much talking really chances interest So it our we now stable starting three take there businesses the where achieved also further too underlying a evolution about that We business, all account four in believe means a think foundation March, without do have to point of be when overall already will in have great the in also excel. current in in strategy. particular, rate that grow have growth the we further the and we a the

we or is that that kind would further which that reinvest can and we project together. That of we because there. efficiencies will we that there on functions, further those a look also at what further Of out amount efficiencies. into started that started for you in course, off front in only bringing of by that or to Bank will did be – this kind also on which if And to go obviously, the our bank, the can think reduction heavy believe or side control to and over do with will will costs we time that and private our to unity, Postbank you savings, we good the we four pay hence, bring branch – the we of do further what – We Deutsche will means do believe investments invest. into take need IT back gross that businesses about the investments, But growth, strategy, that not businesses.

will us have to over to bank. That leading normal which I a of international is gives the a next nice a also purpose we achieved with beyond And believe and four path will This out an we is goes be We think do path, to for if composition about want talk have a to a turned adequate least, years. our there James portfolio a that three kind credible the I normal find in shareholder you be the a And is to March means attached. have the European a what also transparency but player. shows cost years which now one that XXXX. bank clear next very alluded we we returns. and growth banks, incremental the IDD. we we make four businesses need become incremental that as not issue and last to have the key real just means clearly where bank within the the growth vision, of Now

I what add further in way. always to do started to he again, a very now detailed way, be everything, you So, right sorry, want – think question and positive saying I is The in will do we believe next look may that. out and absolutely James that had to on an headcount,

That of the We hierarchy growth, ratio. And kinds will components income in to what that part told means is we come. that, of is on reduce a and further achieve starts to good headcount the of which linked the link headcount, X% that that confident to obviously need that those hierarchy based cost alluding ART was also something will XXXX have growth then we cost James a a also we of to reductions you of and with but reduction. unfortunately, of we XX% have are where that

goal a X% you reduction planning that we say further XX%. external rely for I to also that it staff half the time and years, a that XX,XXX on as to and the and over have internalize mean hard may reduction achieve in goal. two adding cost that is a our find It not to is part obviously much not income the Now reduction. cost of one is out further then But technology, That into such real ratio detailed plan the would make in so of is of Nicolas, now is so said and instance, will employees. sense the XX%

Nicolas Payen

That’s great. very Thank you much.

Operator

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

Stuart Graham

I Hi. question. taking please. had my Thanks for two

the under ECB’s again. cost underwriting with used past, XXXX second I comply question buyback welcome, QX the That’s loan to order policies suffer But Then beyond. costs to The your or only was First the leadership program in your on pro in to on quo in In very my share having obviously well question. that ECB quid is, question was adjust levered activities is you approval of underwriting first buyback. the Deutsche terms stopped. disappointments, think done. of

a we cost had QX disappointment. Now

charges few sure unable of million on target saw all target banks Thank cost hit the were you to year hundred transformation other U.S. target swing you find that factor? my the the until you. saves Is billion? €XX.X you on to the given of So, bluing a And make you why is, question you €XX.X billion bonuses? hit that for were took, to all cost

Christian Sewing

time. our least for Look, isolated speak all pro you that quo. lot the work through regulators ECB our Thank we the that’s at with for as look, we ECB’s. But there’s mean, can’t I engagements; see of quid the Stuart. Sure, questions. and perspective. a no sort I them the other

have like sort then that ECB a That no, pro as see that in way. over do we and SREP we And process repeated. they’d to that, obligations. what the to the improve expectations be is they So, quo. and we is Interestingly, get feedback of to there think time. don’t quid us the designed year then see We from process every set

we a but it’s leverage on no, see quid be your healthy a to think very not there lending pro example. specific dialogue, I don’t quo being as and

is, XX.X ago, you Actually, SRF to side, say the insurance. It of say, will for the work and doing FX. the a And out on of say which How year our I it. against missed have reported do where wasn’t we look, we succeed a by compensation, that target we at end is cost of numbers. FX have, in items entirely on regulatory what you uncontrollable deposit is couple we’ve I the X.X%? plan As and our for say, performance, creditable to result. was unexpected items about actually gave pretty I’d end our assumption significant variable didn’t the cost get we On set X.X%, in number XX.X year. creep sort higher seen plan year-on-year in the a you, offset while I reset December been a the though, reset factor think revenue our remediation, things in as you the some said, as we a

of So, FX there’s about call million it €XXX difference.

€XX you €XX.X So, really get reported a, we to starting point billion and billion. a

it to So, what’s factors. boils about. One €XXX three really million, compensation in a that the driven was down performance we talked it’s

the And volume million. of is and a at represented other the all €XXX And investments. The servicing in particular sort your each much of of driven about point, year. to one-off then then end showed that increases of items, asset up control the the that pretty finally

to this in reality it’s become X.X% is the overall offset it a But really very is your pretty a So, the Obviously, I late the that opportunity performance. we performance and again, in last efforts especially year limited. pretty XXXX. on redouble year into when need think opinion, performance; all was our expense creditable given that our going it to means better revenue

a investments sense in company bigger revenue that of beast, where to given the I sequential to uplift obviously, go. running would in this run a after and alluded from. we need that. supports think be welcome, revenue look continue of controls. But the of, we to on resetting see, on go and which help execute will to than the our a the we kind expected and what glide given are is And much opportunities need we coming is degree, it. at given see we to path we Christian basis, We in We to We sustainable it’s and investment where that had the deliver think needs some remediation time, talked the nature this, back also point we we of that are, can certainly like We speaking. to that’s about so to need broadly

a increase comfortable year late say, of we’re albeit our with expected. in performance, was which all So, pretty as not you the

Christian Sewing

Stuart?

Stuart Lewis

disappointment is James the it is management and as we particular, the understand in you Again, I and simply really to have described and we a way a the the last ago. to And tell in the is you scrutiny next let a board million years it but discuss quarter How want underlying with James this for QX. as up of level all, transparency not you. now details we weekly team I the simply and of said, said And seen, cost two it and we how exactly the that the company started in of to level and response we and the driver on it what will same. to half particular just we tackle a go, restructure leadership and have XXXX. basis

We it. are all over

of same. seen saying, as even on the will even to part James I justified while that over James our adding I think say is we have just the focus total last what XX and content performance, want new what I would is by topic outlined. is make exactly more it to And deliver if that, management the what this sure the not a months, because than this but we simply we on not know credibility that

Stuart Graham

taking you Thank you. my Thank Okay. questions. for

Operator

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

Anke Reingen

questions Two Yes, thank my please. questions. you much taking very for

for on like in you cost in the like payout is just The ratio? do a call. think talking you mentioned observation basically much. And guide comp that a bit for ratio terms there I investment been next is terms or is amount rather XX% very first payout right far that and presented bank. as assume the the where like the ratio area, us sort up been probably have the in I year a Is of structural then And absolute payout reported about go Thank modeling? to and I in you you mainly one the the it’s than you of dividend, XXXX first the struggle comp precious on ratio should the for and absolute, that so ratio a the an time the

Christian Sewing

payout you. divorced. think obviously in we a at Look dividend and prudent ratio. payout rate the growth terms thank Anke, are But the it ratio of not dividend of Sure.

I think that’s describe it. how I

in go that and think we how that. capital So, covers March. if But detail that again, our we’ll that think into more I plan yes, and I, on about

IB compensation first in and lot the On the recognized cost compensation, the there’s inside obviously dynamic look, that cost, of in base. deferred income that is each a for on ratio the of and all, cost the year accruals expense fixed a that pay complexity

with vary bank, XX income assumptions or given decisions any perfectly a we’re very having course we pleased Of can that. sometimes established inevitable performance percent years the ratio of with revenue be There performance think cost that doesn’t driven But investment Do it with of the in look, not. some in better. year. odd for So, investment obviously sort that’s weaker a bank? the

Sometimes impact time given over in pleased, up terms various comment cost compensate set it places, competitive little competitive we’ve catch very But the think And takes a the our years. as deferral. two the of a to in to of the the revenue generating way. frankly, heard we we’re last us in the staff we’ve remained you’ve baseline compensation ability with that

Anke Reingen

Okay. Thank you.

Operator

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

Piers Brown

Yes, good already, my is questions ups. a on afternoon One follow got been course. gentlemen. maybe A lot have couple of but of just asked I’ve

plans sort very in about year, for you've we for normalized the €X level that, defense level still billion being of So, right business? looking past this at staff. other you just a just then the given within rate, second And back much. that in fixed importance be year baked that billion trading target key for tariff of compensation run shy which very about think on Germany the I’m the you’ve of I'm with And any obviously sort circling robust €X.X that in probably the half staff second should on topic? should as number. of of you’ve negotiations the Thanks of revenue the question, wondering dates the And the in into just we inflation billion have guidance tariff given us? the looks rates Bank Investment the there just mentioned of wage this And light what asking €X

Christian Sewing

consist that forward, beyond also obviously Look we actually that something efficiencies because with for of for the into for really make put we on us you. XXXX, are business the plan XXXX what German will tariff unions, up our particular outcomes going that. happen And is of within we to that needs actually number. also But discuss is convinced attempts I confident. the to meaningful negotiations to amount need strategy hopefully at the also it which we we pay take be order to this quite cover I'm thank anticipate on make sure that therefore, therefore again, James monitored. Well, higher obviously also and also in in further there the must and we important Obviously, for it that have all and but gains implemented the hard inflation, next so a that I'm, are efficiency this is looking

tariff a to not regard on but this level with So, I'm concerned year's actually high negotiations.

The the market at in have. we share clearly, and so don't the gave normalization which looking which trading half, gains we you second the on underestimate of a gained part Bank, did months. second would rightly stability share in gained the the we market in Investment again we in markets a platform, nine business, again actually you of the The our the, that financing seen of billion, in even and said I first guidance we say, €X normalization that have

business that numbers into and everything that can order than can And more for on in more us the quarter, defend the yet we flow based invested had to fourth again, there. upgrades haven't we We but also, capture growth rating we clearly believe our flow do we see. the help

that say that? €X.X would I certain to James add but So, solid number, may believe that than is to the want you even there more upside is I a a foundation. billion

James von Moltke

revenues briefly, – per billion €X Yeah, quarterly total talk Bank we and just about billion. a of began in add Investment I'll between last the €X.X year to range in of

midpoint the you the no would so, to of if get billion you is range, fairness, seasonality And that in seasonality. assume €X of there course

QX and dependent better you're on down a So, each quarter. it's performance, usually steps

to tends it the year. off the second the end QX best. towards of then tails So be And

we quarter, billion even row, the in of for it's Investment year revenues fourth the quarter notable in think second I the €X.X passed. that Bank in the achieved a just in

was been quarter. that even have had the billion bit So relatively and actually better quarter, €X market level, would in fourth to two honest, billion difficult what had the one gone or be a little surpassed our conditions at nearly way, we €X if things a in

through of So, the sustainable navigated just level way, about quarter. this for last and was in of pretty increasingly also performance, There And idea example, environment. confident we're that a mixed some the market fourth market sometimes, increasingly there's July year, that it reasonably last getting by environments we've mixed seen, wasn't year. we in

decent So, the we've more into a that range that seeing we're and is absolutely sustainability which critical. described start year, said, as I in

Piers Brown

That's very very Thanks clear. much.

Operator

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

Amit Goel

reverse, there's contribution kind where financing that? be of Thank credit if on Alright, episodic the a different One again, this the that thank RWAs any follow-ups, contribution within highlighted, just treasury kind could progressed of see got points some smaller Op of kind discussions, curious we'll and was more? we an And which and guess from says just CRU, earnings the small just recoveries protection And XX, corporate of services also, I I've was what is of just there you. slightly some just left. if and was think how just it you. some improvements? questions, couple et cetera the other curious, item curious Risk from area but I the Slide maybe then could on

Christian Sewing

on of Sure. I'm things. to trying just with you those catch up all

a but the also it's So, sort that on of that episodic was temporary. its item, was client financing, unusual in size,

it doesn't had likely. about done first Sure. a the transaction. have that it's So, benefit, the it it wouldn't good highly our by have very but a end runs strategic We off – Did benefit we persist. a otherwise. it But in revenue contribution? so felt quarter, supporting client But of

I over the XXXX CRU, years, RWA feature we've the it surprised we've as seen upside look, have a to say think, capital in was and our you've, you've several our back of Risk on past ourselves. to numbers, Operational plan including I in that. the outperformed

on to approval. the work Op RWA; models’ we advanced do and have to analysis, get understand continue then the We regulatory opportunities in Risk approach

I to question. either new coming the And in into was or XXXX. out. And your the bit but to the until III in perhaps, there we removed is to a, approach, potentially just from model run little a third Basel CRU? element move incidences you Yes, being In other a begin Amit, So, happens still a come which words, to also to the there model-driven. get apologize; opportunities

that think answered I haven't I yet.

Amit Goel

from last on treasury much The services was was protection credit the one just revenue. corporate recoveries? the How contribution

Christian Sewing

million episodic. about usually be can quarter, one contribution rare €XX in unprecedented. be represent but while each about €XXX vary. it million quarter of €XXX million. it about give we that but was, can talk a it it this, the can less, We've that, for and normally above instance I'll was million occasions about on item. €XX in episodics this It recorded talked don't We or the In not, call again, that That's that

quarter. on item. recur similar We get So, into quarter that would help something was in first visibility there And some whether hard. don't the the in it's

Amit Goel

Thank you. Got it.

Operator

Andrew line go Generale. Lim the question Next from of Please ahead. Societe is from

Andrew Lim

taking for Hi, questions. my thanks

this I So the implication year. rate on more bit back are ended because costs on for run the costs a the and exit quite year for XXXX, reductions pursue can this

XXXX. XXXX conclusion materially lower I is costs in that think the be they are should than

think I’ve question you could said this below be when it asked I XX James billion. before

inflation. talk clarification, we €XXX can of talking about lower a direction, adjusted you point being about I and of or cost XXXX reported bigger million just then costs mean costs is have quite I being question sequentially, costs? really. the is When reduced a than the about second bank are Thank shape of the had And a bit you of of bit costs? you. a costs be terms Although we in still thinking see that XXXX bit should

James von Moltke

question. for Thanks the Andrew. Sure,

to the QX is And the its we question in exit XXXX? is on path ratio earlier revenues. in our fours terms a that be we cost need mid No. that be lower sense, gave I of an the need it where part rate exit costs in your representative run we a talk last some Absolutely given rate, of going to that of with adjusted into in it target, in be Hence not. about So, guidance that towards item, that income the about to again, first to on to rate. variability goes XXXX

accounting So, in the there’s normalize variable still as talked won’t some about, compensation that adjustments, that other are work accrual repeat. that do, that items there’s we’ve don’t some would to related repeat they’re whether items but came

all put run a that a we that that with million up to I rate, and is path be. to if therefore, So, in see the together, we reestablishing line path the €XXX more where glide need that’s

Andrew Lim

presses got litigation, you a or Great, definition, on are you’ve you that it And few on this, so cost including sorry. excluding adjusted different…

James von Moltke

we little, to a have So, the don’t don’t clearly. and forward you give as adjustments are and it day was looking have definitions to we where the

side, our the in excludes adjusted control. cost On Again, it’s litigation. not cost

basis of a of inappropriate run we would that part give out. sort pre-tax it’s actually operating the So, the adjusted litigation measure. include you the rate business adjust of adjusted we do the profit, cost be in the and on to it sense it try In – to variable, while

we out more other don’t costs adjusted hence each reimbursed from your for inconsistent the make in we transaction you have little I talk there with thing, but excludes off – guess cost were costs the the you put you Andrew, benefiting a that we’ve And that litigation. we past just we’re so the We an have that forward. adjustment need sure for part other. that provide with be given treatment, the So, We’ve finance again, prime to the in our to taken we’re prime from finance BNP to of given recovery. together for to were longer a you before July the adjustment of announcement all now days immediately where relative run – some were our past, But costs in in give XXXX. targeting – with the sense the were QX, we going related we no that given able the reason that adjustment Paribas, that to to would that won’t of cost quickly. being needs the

the fall there, more So will hopefully that at away that. providing least after to start you adjustments come to and we’re to

Andrew Lim

Great.

Okay.

you much, James. I clear. think Thank very that’s

Operator

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

Andrew Coombs

TLTRO, and Afternoon. Three from the on please me cost upcoming Investor messaging the Day.

can drop some And the that half as you us the expect XXXX, ups first in then then TLTRO that’s away you TLTRO, it where in you touched XXXX with and as contribution away, the year. catch play provide start in you in through, see to total that perhaps maturities rate drops the from Just go XXXX upon question. to bonus

I’m get messaging. triangulate cost I on on question revenues, this you XX.X, you put XX to Second to a couple If XX% mentioned case of just base trying cost take an the ways. billion base. about your that

On of the position, X.X and bit XXX I cost flip starting annualize XXXX, the of about lower your that take transformation for XX.X a that side, the to XX.X. get guiding if then you’re add

focused the is trying out progresses to at costs hit targets, are hit So, you cost three-year XX% out the going is Day up, for work planning XX.X if And number? you levy, you’re income forward you’re actually and your you saying final Investor to Thank XXXX this for guiding increase to targets clear ex it the as you in the the to just Day, on year how then are or looking market example? to the Investor there going be you. or new to if put I’m on just if beat the one be

Christian Sewing

the have talk me because in the start Day. Andrew Investor I about let easier part. We both

for talk you with what but we we course. on is, future an update And of the therefore, main the course, you on update owe the main and XXXX, about item trajectory give Bank. we an Deutsche XXXX is goal of Of the you and next that’s

James von Moltke

owe would I investors. thing other the And we Yes. I our think add, just do

going invested the in to the money our X.X billion this transformation I We’ve repositioning of before. X.X think investors’ I’ve billion, said bank. of this

And I XX. to looking when so, get discussion what the says, as we that as we that March to be as possible of part did an will important achieve? element want be forward Christian as is And think But well.

under at points Joshi’s the but with here, That away control at room basically On Dixit TLTRO, TLTRO basis midyear. XX inducement at XXX us borrowed speak million. I’ll a who’s additional in moment, billion. the point It’s XX falls the basis the we’ve XXX so

in then and So XXXX. a of path on the of million full TLTRO. we’re year refinancing that XXX falls therefore for maturities to And simply

So, XXX if assume another you XXXX. to into going like of million could maybe headwind you

more the there’s deposits. repo burdensome TLTRO that’s I that would low even – it encourage, at think to we interest or which deposits environment negative, I rate excess less makes from the Again, the is that’s rates, very forward. or tiering And earlier, offset as no long happen. carry could assuming be certainly, or answered because would as as rate

our now I But math. think short we So math costs, I need than by drive to as answer endpoint. the in QX followed I on your XXXX, rather if year your goes correctly, I followed think is the savings continue that to is

ratio costs income remainder whether litigation cost a our the have or related costs all target non-operating the expenses, of that or of adjusted transformation like We includes effect.

times for after transformation subtract adjusted don't million I number. that to for then costs, fall you you number whichever cost after charges, say call the €XXX And fall million €XXX and that non-operating would for between, use would and amount X.X, it revenues and need So €XXX million and some out SRF. know then

huge ultimately that Christian math helping us year ratio to of math towards is measures it's to today, when the that we how drive that So, detailed management and number describes sit worked out be a a but from we're sort it'll for full as here year. on of that working

Andrew Coombs

That's helpful.

on mentioned want €XXX that to million in the additional catch number I test know XXX back basis you off coming points. you in up Just XXXX, based sure was make just I to loan growth. XXXX because clarity had hit There no the do [indiscernible], once official you a

of €XXX was anything So, on it million? incremental there million or that top €XXX was

James von Moltke

was up of call. back I that – catching revenue IR or in right million €XX There a little and that QX, that in €XX and another the think had the accounting because in, inducement tomorrow guys you us bit, with maybe for million, QX. when hedges confidence I in go the you're we We in up had think was tie the our with fixed income QX incremental was can

Andrew Coombs

That's Thank great. you.

Operator

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

Magdalena Stoklosa

And two requirements. and much. on got I've is capital One cost good questions. Thank one you is on afternoon. another very

to transformed do year you as you you're need investments today much. to to Kind your one. cost but question from what I from next going requirements. about areas really kind number X in Kind ask, of that's have talked me but capital the of just your transformation in talked about we very bank And in? So length to counter the the do can onwards. follow-up what kind still is growth you if of a fully question think you two savings, is think on here on your do at business buffer included invest think I that's number kind think compete incremental capital being of is effect of think I'm of kind reflected Pillar do interests curious; the points you of I what kind R? Thanks planning, transformation to cyclical of for

Christian Sewing

Hey Magdalena, it's Christian.

kind investments. first your i.e., on start me of future Let question

mean, and be all to we relevant will in four Again, even grow all successful will and invest in stay and businesses we there going the a but all, four in First corporate forward. want as detailed competitive you around some growth be more I obviously XX, our just businesses, we I of of all story some themes on if give the can March bank payments. is examples, in have

order payments clients quicker So, in competitive, to investments we payment also new important. into even systems systems to systems, do very, but very our the will payment be offer

a invest lot is marketing. the the In do way offerings doing clients. all a service the like that way consumer it further off that day-to-day has kind and corporate private to corporate clients the we will goes offer bank, comes for the further investments, i.e., different all in with of finance our and will our financing, do to but into clients banking digital as to their a Asset our back it's This front that about kind obviously for also investments we pay to how when there. of of business process per-use,

we we be actually So really in if in efficient end. from to to I.e., clients. to but attractive department. Ram Mark, bank also products it invest the to in talk lot of our more kind have Fabrizio, the in front way that the capturing process, client's also these into to the on to starts up investment and And make there, trade a investment operations to until screen order our want the you of

fantastic there also take the and idea the there we increase out So, efficiencies easier same life client's flow. are and really at how we make even time the

invest now, we we those efficiencies, businesses we are market also relevant revenue where right So again, in share, a have will for items. but where both

James von Moltke

going that your path into our sort do something we've of more think or But of where a overstate buffer. would requirement, buffer. world like may on short-hand question, And built To We as Magdalena so is and we a might. capital MDA we that depending yes, the stand it's requirements sufficiency capital business? frankly we a in where MDA as think maintain the buffer a our gotten forward, the that it a of bucket, on sort bit capital XXX, little to treated to

methodology That consider where risk its transform, we've buffer there we're other to set control And is of their discretion hope in may in there in, would then in and performance kind reflects PXR capitalized other X%. sort to, to are profile, the SIFI a to the improve drawn we Now our taker financial countercyclical it's to the is, its that's something considerations. environment over as that continues out model, absolutely a the varies and the setting. the our at what attention of item assessment internal ECBs its but the number PXR it's buffer management And company, business – stress, buffer domestic of of depending there The their of company we the there. piece environment, produced time and new of have room course be market information. the on a we in is

G-SIFI And can X.X%. of you two Our appropriate. which international, numbers the is is debate our buffer again,

peers compare well think as the Some at capital when threshold to that elements of are about with, really MDA those but going you number, about look below within forward. as requirements think you to MDA need are our that that you

Magdalena Stoklosa

for you. Well, that. very Yes. thanks much Thank

Operator

DZ go Next question ahead. Dums Please of Bank. is from Timo from the line

Timo Dums

One is the rating you. refers Thank and please. to afternoon. the on upgrades competitive the landscape. got Yes. other two Good I've questions question

on rating reflected could second please by that the competitors in also two-way of So, tailwind timing QX the upgrade the is other agencies. quantify reflected November? the you but been that rating has middle So, and the revenues competition the also how and in S&P much recent of in looking the upgrades the also please new the Street your quarter, by rating Wall positive the of My from outlooks to in the within potential especially forward, into planning? provided most Could the by on been FinTech. upgrades some in color here has relates that provide question by banks push on you markets light

also to defends potential your may your as talents Thank well expectations, plans you. position this your and looking are in target? work what your maybe market So, for how – cost at as affect

James von Moltke

revenue no amount a bases the over more of day that What certain the if do analytically of business define actions. collateral Look, to that to us but drown is. left us, really then about the back that revenue what amount the when S&P them clients of see out, talked a as happened. other from Thank very there Sure. clear for is uplift with after hard the have creeps rating it's grades in clearly, can the we come that very they digit sort is revenue was past triple the provides upgrade, longer into We have the you, Timo hard questions. parse back very was to fund next the handed year, that we

million, to but the a particularly was call markets That's number, analytically of come concentrated business. it back. expect annual we'd from some of all that, an the And that's uplift so €XXX million, gives potential in €XXX sense and you, that

wanted back I quarter. think, you creeping to guess, the is that run fourth in in. don't no So if by rate it's means reflected fully

speculate in costs. seen and funding the businesses in the spreads they actions an benefits we are sure we've through, some our because where think average of understand on a we that today journey we than more there come on work and dialogue In intense funding to don't more, there's our from or company already here, unsecured P&L But come either headed. refinancing to to make the with the the with costs. in in on to continue rating or our understand the weighted and come fairness, have from that hard our is that terms we story, I costs basis higher agencies actions the some try we're actions. rating still risks current in still still rating reflects more But Look

alone from future still the upgrades. status from from momentum let quo, be to there's So, even had

Stuart Lewis

that question saving of And the beyond that have businesses you, we in also and know competition on always focus We but only to home could in cooperative the not as as we the competition need it we strategy the good your in banks big European which area, that And market, this Wall expertise into fixed are looking and know that the are the in our compete business. banks. have we win we Street And off and, be market think origination those obviously win. know, that said parts this investments as in those advisor where to in we of particular but actually banks, there paying fruit. financing there a we Wall the the with banks focusing, investing are, we would is wide here paying a our given really And into there, it for reasons, compete also This the with force on, but can is take strong is off four are on banks. focus can because not market sales each also the we where home we with with the cover we the go Thank which therefore, exactly we and businesses, investments with exactly our the is we Street our story question. businesses, where are there, relevant said only clients we Timo. call, we is share, where business, and to go where I the income

this that long all our to by see, come the for in, FinTechs into the merchant asset all and corporate taking And about is far is of the ever Now in seeked a uncertainties, as to about banking, I but clearly volatilities across you the end think with expertise, we regard with service, invested of by four we see we clearly so about given is bank. One FinTech day, and our is also my a than into the of segments at have focus, the banks. with advice payment, when clients thing that advice. banking also we a investments but the are not win before we in is demand in And through banks chance that we The uncertainties can business world, into compete, technology, digitization experience. compete have we all with more to out. ask which this can we chance pandemic are a to our our advice when with have because and private talked the advice the on that here payment cannot given tradition good When with believe which we only the because be in view, initiatives, real

Timo Dums

Very you. clear. Thank

Operator

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

Ioana Patriniche

we you call. with Please results And Thank April. hesitate out for reach team Relations the to to joining to Preliminary you. quarter in forward look to Fourth Investor for speaking that, us don't questions. any Thank follow-up with XXXX our you

Operator

Ladies conference pleasant day. for you and the Thank now Goodbye. and have a your telephone. joining concluded and may is disconnect gentlemen, you

Deutsche Bank (DB) 27 Jan 222021 Q4 Earnings call transcript