DB - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. I'm Franzi, your Chorus Call operator. Welcome, and thank you for joining the Deutsche Bank's Q1 2022 Analyst Call. [Operator Instructions]. I would now like to turn the conference over to Ioana Patriniche, Head of the Investor Relations. ahead. go Please

Ioana Patriniche

joining call. for our quarter first Thank us results XXXX you for

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

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

Christian Sewing

A Ioana. first you, a XXXX pleasure me be warm Thank as quarter well. today. It's welcome from you results our discussing with to

war people been for environment clients. uncertainty the Before we go and continues through and to to our this, high the Ukraine millions the devastating in we degree of market bring to that are a to economy, of world has mindful

innovation condemn defending democracy We have the in and allies made Russian we its and possible German our in We government support and position the strongest terms, the of clear. freedoom. Ukraine

are any taking business in not nor entities incorporate Russia. We with new in Russia, on

we our the are our are clear of winding clients process in down our accompanying We been and regulatory have same. operations that with line and in in legal obligations doing the

and families. period and we upheaval their navigate are of We people committed this our our in helping are Ukraine clients to supporting

XXXX believe XXXX year. our even shows will business delivered and us €X.X our businesses, profit highest saw increase in the That a of by net We has this in and measurement driven core sustainable quarter course, of impact we we through in performance. reach revenues trajectory full compared to revenue momentum, prior the billion support year-on-year on XXXX, gains investments results This, market an group a to the that and puts across beyond. since our growth good X important strong However, delivered all quarter goals. our year year. Nonetheless, potential with growth X% in of We of share

generated bank tangible the we the bank quarter. a are annual last first XX% in levies, quarter, This X.X% up evenly the return in year year, with which of equity, quarters been If first of despite post-tax quarter increase first recognized on booked reported a X return levies annual apportioned of on would XX.X%. on in equity were across charge tangible the quarter, X/X the the have

efficiency. was X by XX%, to a points XX% our our improved quarter, cost/income brings also XX% if evenly apportioned profit driven ratio This across positive all operating up were down leverage. bank or prior Post-tax quarters. year lower over We prior to the levies compared year successful percentage X

and focus the front, We are mindful current that we presents including on operating many challenges, environment discipline. will cost continue cost to on the

Finally, to book environment, the at thanks we balance to loan management. current looking our navigate high-quality tight risk sheet, are and well our equipped

for program AGM. upcoming our million at million to XXXX. distribute and capital this shareholders. remains strong week, growth. to continue delivering €XXX on and we commitment a goals progress of towards €XXX of of enabled repurchase impacts despite the around our us capital distribution business Ukraine proposed we position execution in the war Our completed have And share our the €XXX our of the to Last dividend million, in

interest quarter executed in in us this we Bank, with more were increase partly in the debt year-on-year than this X. businesses saw continued lower supported strong higher Bank challenging reflected of Slide quarter. cost which, XX% with revenues The alongside delivered an leverage client across year-on-year, growth, and FIC and in net despite offsetting take on clients. strategic institutional priorities activity helped on up in more captured me to across business It strategy. revenues operating €XX Advisory year-on-year equity core net coupled half growth In we as the income. our and discipline under revenues contributed interest We profit loan with XX% origination. tailwinds corporate Investment to deliver rate through business management billion new Private by best the This in loans. diligently our the market the into million. growth €XXX pretax transformation than Corporate since Bank, its of let also launched on assets Now inflows more you progress

In Private German IT on progress platform the Bank the addition, made consolidation. significant

and platform. around clients the Over X of contracts DB Easter successful migration Postbank the a million weekend, saving onto completed we

year-on-year, Asset to Management time, continued on transformation. invest platform of environment. fees in and core all initiatives in X volatile a deliver At to dynamics our market the XXXX revenue despite The growth same provided strong management business businesses growth the X% delivered step-up driven higher by point the targets.

order investments impacts Next, a in deal are made we meant business exposure reduced were period and prepared this to in we our but update net end below to the the ones were to let not we controls our proving war we future direct give Russia testament Russia loan quarter, with me €XXX the you million of this. only of on uncertainty. Ukraine, investments We we as entered on also this in the to the by ready X. of Slide believe means where second our well This an

issues managed sanctions. result, executed aspects sanctions without these financial major and of diligently a the we As on any implementation

current have have uncertainties put our As we major place. in even disruptions added adapting alert all with any situation, it to of threat under we safeguards controls evolving seen operate our continuously hastened businesses, a are Despite the to the not stands, status, we we the and landscape. the

to quantify potential believe face sheet the the will we challenges model While help of impact conservative too business ahead. is early war, transform and it the long-term balance our us

issues that to growth. go could chain continue supply we well further broader economic the environment beyond uncertainties impact as course, of such future and war, mindful the Of the be that

on Turning now on Slide X. to our progress sustainability

quarter €XX all with in billion as activities. achieve rapid the make pleased across sustainability target €XX all billion, track €XXX at of and we quarter. at the Financing on with €XXX our to by assets the XX% €XX After growth increase under compared can on billion investment our see you volumes were ESG billion We of continue volumes to cumulative an first good Issuance categories. slide. growth finishing are XXXX We're in XX% saw rates to year-end. volume to €XXX progress to and XX%. fourth this and sequentially, DWS, up up financing management in billion, volumes businesses, increased also billion, the now also excluding We increased

rate Investor in generate to XXXX. cumulatively at billion in the financing our we from a in Dive, average Deep XXXX. per €XXX growth to billion by compound This As an plan this we annual our XXXX, models, least at and more ESG year XXXX than investments €X.X According billion revenues XX%. of representing announced implies will translate rate to into least €XXX of of of end

dive track XXXX targets portfolios, took on footprint the together of October. on XXXX our portfolio targets with also important for are at of beginning for And disclosing net-zero our pathway step carbon to March. deep key in We publish we an loan carbon-intensive second net-zero at sustainability to intermediate our corporate the

our share positive our driver efforts. clients of leverage, Net-Zero of is A also event generating now by in on delivered with year-on-year leverage quarter. revenues core group this contributed which details with operating year-on-year. will the key further partner our bank of this their revenues X. profitability increased at higher delivery on and I X% strategy we Slide decarbonization at operating We billion, will revenues. X% cover We and level €X.X up positive Group Starting by how

strong delivered headwinds. more XX% a Advisory. And Bank, were first in repricing all Corporate revenues Revenues the FIC year-on-year. operating up in in XX% Other the increase revenues X% XX% Origination the client Bank lending. growth and revenues we grew was strong X%. a as consecutive business growth and a Investment these XXXX, driven growth. decline strong in continued And result, the by in of revenues business the than Capital year-on-year businesses, annual Release double-digit Corporate & Excluding than Bank average revenues quarter offset of in year-on-year, a continued divisions a Private Across second and growth, X% interest over in quarter rate offset X more up increase Unit, were deposit

Our book loan total up X% currently is year-on-year. at €XXX billion,

by management year-on-year, Asset XX% in fees, reflects driven which rose consecutive during growth quarters a under X% revenues rise year. assets Management management inflows and last of

management billion increased under billion. to €XX €XXX Assets year-on-year by

with bank X% despite offset costs. year-on-year were in completion the than also were reflecting increase more of of transformation transformation and in needs an efficiency which cessation Moving and costs. of was €XXX year-on-year, Adjusted now Prime XX% the levies costs, of charges projects after spending Finance, Finance excluding levies, lower plan. charges and some million, by or gains bank line down down lower Noninterest delivery to investment X% IT expenses Prime

Beyond items, faced these will costs, in we expenses, higher-than-expected compensation which mainly later. detail James cost

James, I Slide hand me the X. summarize to on quarter over Before first outlook and let

challenging and to difficult to presented quarter times, navigate first to environment. do clients supported help a them We The responded needs and so. their continue we through will

executing operating the we did absolutely our strategic getting that opportunities and while And remain profitability a meet our we path stable that the path of from businesses and XXXX with guidance. That said, to is positive focused in cost recognize we But improve see while Revenues us this on as leverage current revenue pressures ahead tackling plans. and to strong quarter. in plans risk environment. harder, is our to capturing cost always, Our are management. on advance demonstrate delivering we especially are we challenges on further are and to priority support efficiency in first committed and with also as our clear we we benefiting measures, revenue the our inflationary

in already now step-up quarter, We over are target million. capital return the €XXX equity program in share hand James. XXXX our completed this of particular, year, return committed to have delivered let having for point tangible strong in In short, towards X% pivotal a that, With on the shareholders, to we this to target to XXXX. buyback our plan me

James von Moltke

you, Thank Christian.

versus components: million commitments. year-on-year. than expenses to at and about a bank originally we determination XXXX decline unchanged summary with revenues higher start down This captures of use despite on main conservative for assessment €XXX levies the higher the the of €XXX of with regard a up me to Slide of of quarter revenue X% due Noninterest financial X. group XX% were billion Total quarter irrevocable CRU. our first payment X% applied the and around performance the the year-on-year up by CNO cost expected €XXX and in SRB in €X.X came the €X.X of were Firstly, billion, Let for million three million, basis

this levies of effects, quarter, adjusted the year-on-year level end we than quarter, volume-related million have X%, X% €XX costs, which the booked excluding leaves detail will and This these down effects bank transformation-related of we less and were charges, increases X/X recognized Secondly, prior year total shortly. transformation transformation excluding XX% charges now anticipated FX in or despite XXXX. the of certain the of I through

credit €XX.XX, tax a of €X.X million quarter. up loans XX provision per year-on-year. €XXX €X.X on value increase of the Our of of a book quarter losses the share or We billion, Tangible X% points and was average profit for before for generated net year-on-year. billion, was €X.XX an XX% basis and profit

rate was X.X% before, the with rate we expect effective quarter for tax group As which for tax equity was The return Christian in the on effective first the for is tangible now broadly XXXX. throughout line the XX%, the quarter. mentioned

that anticipate reduce our quarter also tax effective with positive fourth deferred additional valuation We the particularly that may in tax we rate in U.S. XXXX. asset continued adjustments would profitability, in the see

uncertain dependent and adjustments factors throughout the course, the these number remain sizing Of year. and of of on a the respective different are

X. and prior normalized Core were expenses releases Bank's Slide all Core for Bank losses adjusted X% revenues were Let's profit before as now saw stages. €X.X down tax €X billion prior across quarter. on for up to costs to the year year the the turn on a quarter, on quarter Noninterest the X% the quarter, the flat increased prior we where year provision We for year-on-year. billion, compared reported credit of performance X%

tangible XX%. in ratio equity was on Our the above Bank at income year return post-tax target. And cost quarter XX.X%, full the came our for Core

on Let margin detail evolution our on X. Slide me some interest provide the net of

by repricing the of interest by Adjusting level deposit the been first back, net in rates. we stable has pressure. of The due we for margin ongoing environment. and driven in rise balance helped efficiency, rising timing income deposit the been U.S. initially was decline TLTRO at here, TLTRO prior effects, from would broadly driven half level. increased then, the the Looking margin to XXXX the From sheet above since the anticipated, expect cut NIM offset in tailwinds quarter year that first rate to margin NIM interest have

to Let's on now costs Slide turn XX.

have transformation in projects we and completion by with with of with the decreased costs fourth further €XXX savings excluding cost the Adjusted First, line developments came about non-compensation provided charges we to Compared at saves. lower sequentially a million, excluding of the €XXX are look since even excluding were both of reflecting FX. our million respect X% the remaining or categories, from ahead let's million, costs, expectations efficiency costs, at €XXX bank guidance IT fourth effects. and quarter quarter. million levies, the or FX results, and €XXX

million were fourth savings costs we the compared guidance of as our million. €XXX around million expensed higher of broadly against due €XX to Firstly, and mainly to three benefit and in compensation quarter a flat elevated impact asset future result expected more is for of This the a extra quarter, components: good levels previous However, business the alternative performance funds €XX to for and one-off recorded. and first related was compensation variable million management carried fees €XX in to interest related performance also performance. the An

which benefit and the repeat had €XX year. we strategic one-off of in by the hires investments offset reduction of control million, million in our rest unplanned efforts, cost functions, were finally, not costs largely structural costs. which were we to costs expect Secondly, bank, in from And hiring €XX tune private to the of do

or efficiency look adjusted talent. by at costs, however, pressures attract developments XX, on increasing aimed decreased year-on-year execute to are we on we If costs compete the continue reducing million measures We retain at compensation Slide seeing cost €XXX as and we X%. to

Then €XXX declined projects. completion investments. Excluding to offset expected of or by workforce expenses down costs delivery down remediation €XXX projects inflation the costs Effects other non-compensation Compensation costs professional FX the and driven million, due €X X% year. million increased the prior were and certain completion €XXX variable effects, efficiencies. million. the came by of by reduction services impacts of the IT capturing compensation IT, by were and by from by compared and strategic to control payroll from million and selected

while investment provision impairment million prior of in exposures Ukraine. the Provision entirely or on by reflect million benefited €XX XX was the provision few macroeconomic by to for for bank. losses number to offset a larger €XXX recalibration. all war million, private on This losses credit to to line Stage releases relating first uncertainties. in average Slide of sequential Stage compared a includes the bank, from of the for was A loans X provision and a Let's Russian basis overlays net the in quarter, with €XXX additional downgrades million names an in driven on model now X of €XXX year credit XX. X quarter provision small releases in events turn Russian basis moderate Elevated annualized predominantly points and guidance. was increase the corporate bank of of

to XX. €X.X Let direct a reflects net was exposures the XX% me Slide repayments. billion our quarter now year-end million you to Federation update X% loan reduction at exposure Russian The to of active exposure the exposure end by compared on disclosed €XXX management on the at cut to Gross on previously and our the and basis. first

direct export derivative exposure largely and counterparty we after positions were Overall, coverage exposures market levels liabilities have of all to drawdown XX% contractual low are unwound. Russia €X risk to agency by cut major billion, were mitigated by contingent credit Our and protection.

Slide now Let turn on capital XX. to me

payments basis lending enterprise the for led Tier quarter ECB This basis compensation, points offset war Strong equity adjustments mandated adding XX common €X.XX AGM RWA, decreased CETX the to higher capital retention dispersion now organic by related CETX points were prices. points. Our XX% XXXX through to and €XXX capital to points prudent partially basis dividends XX business to Common in the which decline of XX.X% year reflects year of to points. and in Equity due generation by valuation Bank on for medium-sized for the CETX ratio million XX includes committed ratio Ukraine per ATX of at decrease continued put capital deductions We support a or our million, the €XXX model a share weights XX.X% risk net. coupon estimate deduction proposed roughly capital from a reserves Russia finish of X to of over aside and X market higher to due of remain assets. risk-weighted the small- impact the We last share or from share increased with operational our dividends, ratio X of on by growth exposures Core the offset driven related addition during pay repurchases, to to XXXX basis to quarter basis May. dividend higher. was a growth, post business lower this already higher earnings the around

in further this the predict remains RWA hard remainder the to inflation what is the However, of potential at for year. point regulatory-driven

XX leverage XX €X.XX call of the result new ATX. which basis a were X X.X%, quarter. reduced basis by our fully XX Of Tier points decrease the the January of Our a over billion points points was loaded in driven as ratio capital, decrease, style of basis

following quarter-on-quarter basis April, Leverage a billion to FX core ratio which loan basis. ATX effects, excluding million our adds X €XX growth increased issuance, early in our €XXX growth. bank, leverage by continued on due settled including exposure, forma in successful pro Our a points further

headwinds. euro reported equity our of and XXXX balances, leverage €X remaining by ratio X.X% billion, Ukraine. nonoperating Corporate primarily were the ECB Services. EMEA in year quarter, Asia, XXX mainly Interest and Corporate interest Slide now quarter, XX% segment tailwinds by to let's deposit benefiting in headwinds. the the the year-end XX%, resulting compared was end €XXX continued credit businesses, revenues Slide €XXX be million Bank loan due of Services I environment. leverage by rate banking Provision our basis business billion, the turn to year-on-year were of costs. €XXX X.X%. revenues Slide stable. before interest episodic XX. to requirement €XXX benefits performance year-on-year. and services. for including strong offset impacts adjusted in quarter our billion up on lower on the volumes, lower were million our effects starting translation cash with the underlying expenses Treasury by year-on-year we prior despite driven rate remaining partially trading. non-compensation rata while the now and stood Corporate X.XX%. services increased a Bank particularly, by loans by stages, & in of business X% ratio than return quarter, on €X macro the quarter bank the at first all and profitability offsetting non-euro U.S. and rose currency by items. higher €XXX on XX. Business impact trading compared leverage due reported revenues the on equity certain remains was now Revenue turned driven first With have higher specific management, items by by X.X%, mostly Bank first will was of at war increased turn by in were expenses from Advisory higher I'll more quarter to Our in of turn in business Origination financing and as initiatives deposit cash particularly grew year-on-year, evidencing points primarily Treasury both treasury for ratio, business pro grew for the higher, million was businesses efficiency. on would declined X.X%. by Corporate the tax XX% to to of in Revenues year-on-year, a of XX. buffer billion corporate Investment across rates Corporate XXXX solid quarter in Strong Client compensation underlying tangible the corporate €X.X to in loss excluding and €X improving XX% credit momentum, Corporate tangible improvements deposit and expenses. up fully X% With were billion year-on-year basis profit and provisions, repricing over in up in loaded higher in of of levies actions business credit bank revenues the forma revenues first Noninterest that, of growth, offset in Institutional slightly and to Bank repricing return million the Bank levies, year-on-year our repricing the growth growth performance into of revenues Noninterest pro The losses and driven

Our across financing loan year-on-year, businesses. higher balances the driven increased loan by primarily originations

points low. for provisions across The portfolio Leverage activities Stage and client million well-diversified a increased maintain assets commitments reflects the to impact the releases lending year-on-year or regulatory of risk-weighted increase increase in XX quarter. continue of was year-on-year and flows. Provision prior remained the €XX exposure to within in X losses of basis reflecting loan inflation higher, loans year support growth The driven versus regions and addition financing trading in predominantly by average credit We to industries. businesses. X was

challenging and were higher markets Revenues disciplined and foreign across increased effective businesses. exchange activity market significantly activity credit risk performance across revenues partially were trading remained were were an capital Financing with first income lower by and year, of on leveraged environment. prior markets XX% a the to revenues, business Credit by higher trading. year. interest were to materially Strong in Debt financing reduction were Fixed significantly by compared impacted with that reduced by pool by performance the capital emerging debt Revenues in performance origination quarter across Origination markets & lower macro revenues businesses fee revenues investment-grade XX%. also versus industry market significantly Trading flows Advisory approximately was from driven XX. and due significantly by a decline lower lower, and Revenues year. the SPAC in Turning when & net significantly robust lower revenues and with of high significantly rates, by a the reflecting revenues solid solid client Advisory higher driven within the a slightly driven with material driven revenues segment fee in revenues benefiting by activity higher Equity increased prior transactions were industry Origination pipeline. completed Slide offset in Revenues the year-over-year. Sales pool trading against higher, reduced management. versus in prior all level

Private for the XX. if adjusted specific X% on year-on-year billion, X% were up items. €X.X to Turning Revenues Slide or Bank

Continued compared year-on-year, provisions XX% to banks quarter in environment The the been million up post-tax The transformation of Bank rata noninterest cost-to-income Adjusted revenue the expenses growth. The previous of quarter, workforce discipline. X%. cost forma reported continued abated headwinds despite to would as rates, €XXX XX% have cost pretax revenue from from the savings a Private uncertain profit of to in a return releases equity bank growth on reflecting and savings both more part million. the XXXX. higher levies, ratio although €XX corresponding of XX% year. in a than return strict the as pro basis, was cost Post-tax Considering costs year-on-year reductions the year-on-year restructuring well rose pro despite incremental strong initiatives, ratio still income including decline relative end attributable first reflecting XX%. offset have continued X% improved on to to of with on quarter, in towards XX% X% of down somewhat tangible headwinds equity of these interest were low

rate a €X from year, by for to by basis credit the a Assets and by Risk-weighted €XXX growing to due a billion prior movements book. risk market predominantly model reflecting impact the loans, negative earlier. billion tight billion as of €XX Stage assets of a into offset assets high-quality XX regulatory quarter, net average million and from the differences. billion in benefited line provision under was €XXX in prior largely year Provision changes and inflows was in €XX recalibration, by increased book. of X loan points or exchange management with loan I under also XX%, mentioned management losses declined discipline

supported under excluding Private The Bank driven inflows Private on part mainly of ruling. the offset International client The the to in management margin periods. Bank revenues, X% for Private items, by APAC. by Sal. in attributable new compensated relationship Revenues Private still in offset or to Revenues all supported EMEA, increased loans partially revenues net fee International Turning insurance if net well revenues the impacts X%. specific X%. products adjusted billion. segment products deposit growth increased Banking were investment the by and and in Germany regions. from billion and Germany in Oppenheim FX workout investment manager attracted income Personal activities. revenues residual from The clients by was by activities attracted by new investment net compression. deleveraging Management Bank, deposit in stable, inflows €X €X €X both as TLTRO-X by of of loans the benefits were X% loans, hiring were strong In prior was €X by Private products and and in client compression, impacts. billion growth by in loans benefited Banking and Wealth XX. from up impacts Slide Bank as from program from lower margin Higher negative BGH quarter, Net investment also across Americas in assets billion, products

in on to adjusted performance financials. and that items segment reflects the management, before compensation increased fees, recent higher fees results, period DWS cost quarterly are increased more increase To of assets year certain divisional grew you mainly related by quarter. of up the performance reflecting in Revenues the strong ratio infrastructure of with higher a the despite impact the in versus Compared As costs, not stable to the a lower stand-alone by Management the income remind than assets Profit €X XX prior in million, an recognized the primarily variable the Noninterest servicing under Slide €XX XX% further management. their you, includes margin or improved from million by to costs a quarter Asset million market strong management compared over year, which will X% principally due offset the XX%. increase DWS and same period compensation seen revenues. part due asset turbulence. to the have prior X%. €XXX prior in expenses average to fees performance higher under X% the in last year, costs This future year, increase carried tax to of delivered interest

€XX since performance is which Assets quarters on of well by billion under positive show as $XXX have and in mainly as inflows XXXX Slide management we year, attributable translation as in to same well appendix. XX effects of successive increased the last net market billion the as as quarter FX

Looking at the sequential performance.

income in FX environment. declined translation market due were outflows impact negative partly primarily have low-margin €XX a the in by in the products performance, under of effects. Assets billion mitigated Net market fixed in outflows and from €X by cash billion management to the quarter, quarter challenging reflecting

net Excluding quarter. products the cash, billion strategies. margin higher of business also attracted €X.X ESG in €X into net The inflows inflows during billion were

Slide Other of contribution to year quarter quarter movements from of compared negative a movements of million on basis principally driven first result Corporate principally €XXX year contribution the from curves, the with a in adverse by in €XXX €X the and environment. market and interest XXXX quarter. rate timing in & million a was loss quarter. of Other spread The million the prior negative pretax Turning XX. for was funding valuation a broader in the to the compared prior partially million in differences reported of effects €XXX rate This of volatile offset pretax and & light Corporate by of credit loss

liquidity quarter, and were small accounting million differences Slide framework Privat- impacts turn on Capital are year €XXX hedged, defined negative Ag costs a activities requirements that were AG, €XX to million, with Db transfer versus now internal As into as meet Firmenkundenbank have to relating valuation timing include accounting. transitional costs increase €XXX activities million funds can certain allocated for in hedge bank's the as but arise of linked Bank transfer disclosed. previously we Expenses and to merger Funding relating the shareholder to not €XXX on as negative positions the million communicated, do OECD in well to the associated the period. Release XX. previously and economically the Deutsche the prior divisions, legacy to prior as guidelines, not they the pricing We Unit the Und pricing business in year

the reflecting from our offset derisking first tax Prime Finance of by XX%, costs in levy costs. loss cost million by €XXX quarter For with net a charges, conclusion positive as lower primarily loss service the year the bank declined by primarily in revenues the quarter, quarter before from of the lower in the million, loan reduction compares adjusted gains. of were allocations partly and prior the from XXXX, recorded recovery. €XX a Release narrowing This and Noninterest million, Revenues €X compensation driven income we Unit lower were and management year by prior the XX% risk portfolio the Capital negative the million. internal reported to costs. reduction expenses funding €XX for

Prime transfer. in This conclusion a step quarter following Finance also marks costs the the down of

tax leverage its quarter. division assets the and reduced before CRU the from roll-offs billion billion leverage by and Since fourth €XX a deleveraging the Year-on-year, including assets €XXX through risk-weighted prior risk-weighted down risk and by loss by billion, reduced quarter result, a year by to by €X billion. €X exposure €X €X As RWA. natural the XX% has reduced reduced in million, division exposure XXXX, reduction of billion operational

Deep adjusted of through Dive. we Looking XXXX, the Investor of the for achieving to of are set confident we million remainder that out the costs target at €XXX

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

to finally, clients. current XX. geopolitical markets deal of on and the uncertainty our for XXXX bring to macroeconomic Slide a outlook Turning, environment outlook to the group great financial The and

to a And our guidance XXXX. businesses to results revenue core billion in However, in billion our for strong this. revenue view, achieve to foundation €XX €XX strong our built continues support of momentum our first quarter

As the discipline believe challenging we targets, current our near-term work Christian and intensified. risks remain is focused continue highly environment highlighted, risk towards on cost that the We contained. pressures our managing have and we remains to but visible cost disciplined and remain in

at our of while around and guidance the our resilient, target generation impact business remains XX%, ratio. We than consistent our capital in was absorbed distributions war. same offset we year-end growth, organic CETX the for by with and our of XX.X% the remain changes, of regulatory confident time, capital greater Our

share our approval and immediately the distributions the of €XXX the dividends the will million at shareholder expected after finished payment in we buyback XXXX. complete mentioned, Christian AGM, As of program

work forward targets. me continue to I to questions. We and let Ioana, hand to your that, to With look back our XXXX

Ioana Patriniche

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

Operator

Instructions]. [Operator

Chris Hallam from The Goldman first from question is Sachs.

Chris Hallam

Two questions from me.

it obviously first and taking you're IB the in the Bank the but strong. were for FIC tweaked year, Corporate share like you still revenue and there, been Private So the slightly looks strong also guide has and Bank the quarter,

see XX% And XXXX. changing so how level what the to beyond capital, then you XXXX? trends you've than the far which commitment whether wanted how on embedded in core out I So make hear or which and whether the second, billion either for speak And degree, the of target Tier X is level. revenue to XXXX slightly ratios this about the that rest absolute evolving at changes thinking return rethink lay you anything phasing to capital a could through was seen capital might anything of lighter year expected, €X you divisional you're

James von Moltke

business impact degree flowing you're us QX, all about been Thanks, and improved of a And and as plus upgrades opening base. you for question. lines around we've and that's the FIC say, and the technology, about in investments a growth therefore, I the affected benefits right, can underlying the see talking -- in strong Chris. view, on engagement, still sustainably we've in for some a was point growth CB you interest leads euro the some calling year-on-year similarly, type are trends at although some in people client by while We've as at a the obviously, deposit and the to appreciate those Look, rates the dependent talked of growth. of headwinds making market with people reflecting in been rating of it's of and the abate. through. rates And from help And to think showing wallet. CB for, while XX% that CB. up, you're interest we've and more PB, headwinds PB, underlying while start seeing for been as combination we

for now up year-over-year. seeing particularly, example, X% through, IPB You're growth come

there. And at momentum 'XX. of so from our the validating we've feeds commentary the driving first the momentum that compound the rates travel in growth called direction in IDD performance we're types strength is and it the to think We business, seeing that back 'XX and about of period the for around clearly quarter

about where we are as end comments we're the for now. provided. building to year, sit right year. that example, as as above seeing guidance. went were out, that the no we last well of provided that of first to this business question on billion business some based €XX of that billion €XX to Again, the is revenues And by think that at we think biased businesses high actually today, guidance you in remind helpful we've towards he outperformance the Looking see I'll call, what I guidance. could at say, we in think in the point Christian's lead hence, strength on in And there. you with And earnings some what least CB as here that for And you the we we're IB, all quarterly actually, expecting this as quarter, guidance cases, 'XX. through line we the

In the about ratio our year end of in terms of we the prepared the capital or remarks. distributions, talked target for objective

-- model planning. were guidance case, basis war the a already to the basis distribution no your in the the really, for the capital on COVID, of saw path trajectory XX we performance that there's a as based of through lot mentioned, impact of into the In most and we'd year. in Ukraine. the come full model change back. much no expect Look, And And the points you point, capital XX had that QX that drivers drawdown we really, change there's built or point to intend. latter effects our we on was the as the in And our quarter. So change view resulting our to

views distribution the result, guidance on no all consequently, full a our year, plans. So and provided our as at the impact we significant impact on for no

Operator

The Kian from next Abouhossein, is JPMorgan. question

Kian Abouhossein

Two questions on costs.

share comments. we maybe, issue a that a can confusion. think explain And you I I key impacting today price. how think And some the little your James, should there's read bit

between could forward? Day, €X the be And then if clearly 'XX, clean. remarks. around on wondering, should that, revenue the on some cost first again, your what Investor your just is in in closer compare second €XX.X hand, restructuring I'm about billion to in extent And where to have talked €XX.X going there. and maybe the which If stated of of other are XX% ended €XX.X but €XXX you a focusing explained And your cost argued February, that on be you terms On plus one we a 'XX the January, €X.X you have was a billion higher. you implies guidance up One and on to €X the significantly could billion billion, billion. is, explain target there to charges cost hand, I question there's flat million billion, basis. cost income guidance, And €X fund, And of of that we related resolution cost. I for all, billion of which assume also guidance cost stated, should

at a a how, than the say, there However, cost anticipated, you can there month there be been if or -- to slippage in around Day. material discipline. month, there's increase elaborate that, to not And on Investor less over cost, a concern a that X seems which was which so concern cost, has so much in -- bit has of been

about and discipline. So can you confidence process cost around talk the

two those So questions.

James von Moltke

any confusion. No, thanks I clarify the happy it. for to I'm question. appreciate there's if

the which essentially the and sort X. adjusted outlook. And full And course. the language Prime consistent costs last about we was annual XX.X%. range. provided of remains the guidance range transformation starting sort provided, your So to range, flat look that's from is around XXs of charges a of point report consistent. compared with we high that costs, that and a unchanged the excluding think a as at we guidance earlier listen, is expenses, is Finance There's year, in that to so where low we -- year, for about the And It's

revenue and So as we've income that's guidance say, provided fact working target. to cost aligns, ratio that we've been with the the a you working what XX% and we're to

the that taking we compensation the was I guidance see, where So That what expenses as I mentioned in at excluding we're the, March, about If Fund. And you clearly it, costs and the call we in where were operating really principally the in beginning which run clear call that were think combined higher the expenses, that's remarks. about us. the reflecting to resolution February came -- as than March €X.X two providing the prepared can single €X.X of think back run towards. as we billion we were excludes Resolution rate that about I and of at was months it fund together, Single items rate, working thinking encouraging we're billion, had January

items materialized for investments. valuations, underlying incurred in as we we us in revenues -- the that came it. the that variable those in make quarter visible compensation at of time as carry the compensation frankly, those became to on of Now costs We based essentially March. DWS only see and The determinations profitability

hiring clearly materialized and So the in costs actually, some also -- of March.

large, to guidance. with €XXX all when of say that, will non-comp I costs talked you. much the sequential at So we're future relative we and €XXX that fact, we when by were explained than fact, in accession that the positive these cost and reflect in better miss much entirely million us revenues. visible consider in to they January, in current by non-compensation about really spoke compensation as that original tie that And encouraging costs looking decline the that or as is so variable of we the what's was, to guidance, million we not about million, back items €XX March

on invoice performance expenses ratio the of quarter, control. there, but were the able it Hope work our and -- working that say, basis, think actually as of towards. we don't track towards the strong until We late to of little these a continually we've of quarter, in hood higher April offset the bit, get that income the the know, quarter been that lots us which, given underneath we So cost that which for in is put Kian. XX% we're of to some some in continues we're the encouraging out working revenues, every clarify notwithstanding you on reflecting ratio help and new are a was fact and I information. an cost/income year, sign as it some The

Kian Abouhossein

the just around I line constrain XX% If cost this the helpful. follow-up, one think very cost half? main with That's level Or I last more as a should on absolute number, more income of year? of time around Yes. in costs the just can more binding

James von Moltke

XX% that give objective target first, management's we to Well, to set. don't is guidance. are What -- we work we've

Kian Abouhossein

billion with achievable your that's to And €XX billion €XX revenue?

James von Moltke

Exactly.

with we the guidance so to prior outlook And statements, into we've been consistent which compares on year. in that. translate what's consistent And again, required our that

gives which Again, where that headwinds. we're by on, really we're in rate QX, some in there you month that run is are focus by to In terms of that appeared already of are offset of quarter of management's month, not hard our costs repeating what sense sort general, that which acknowledged those and some obviously, We've, working headwinds, and hopefully, is. focused quarter. managing on management of focused some a

Operator

Kepler Cheuvreux. question Payen from Next Nicolas from is

Nicolas Payen

I have two please.

level your versus of be you NII. us slowing year? next discussion with And of quarter any to see that concern activity to for question outlook on would on that update expecting year wanted changes with the has potential and are would been were the what and us last growth regard second in Germany? of first rest I the German they're corporates discussing give this, any there maybe The any one concern recession there you down, regarding an kind them? rather beyond And general if And with be The last could if if you quarter? gave

James von Moltke

confidence net some And areas that -- the Thank the you, a Look, of really Slide disclosure we bit little one wanted provided. you the color we we've is where to guidance the our on reasons give that interest Nicolas. really sheet kind and supports in of growth X new well NII the deck, that on more in now that's that course, point that -- the margin. our we've and we And driven, as view the in have, increasingly as by underscoring both balance turning of in loan reached from efficiencies in book rates. NII the interest

that to I supply German these changes chains, resulting environment. If on through real that pricing, hard about the from to about confidence -- but all to the question of us, I acutely sufficiency of unprecedented speak reacting. of So going think, your consequences They're are and corporates, obviously, that. German supply, seeing some macroeconomic working events awful new of crisis of energy in we're we're knock the we're adjust look, and the aware income. gives that forward Ukraine, an the all on energy of course, in so interest sort of corporates,

working economy a do there's And ready clearly, in of economy support German in on, additional to general, clients the is something clients chain, the mean lending what And adaptability to supportive gear our will the the generally see German the think, role. stand corporate think payment up it's they both probably driver that's economy. chains. degree your respond We the supply bank, in here. that's support to We that our as lending, in space. including supply growth in needed happening general, think and how in for I adapt that relatively it with the of high support you we more we're you

on disruptions basis. so that we need today, obviously, environment and encouraged with the we outlook be cautious may the that all road, lead to higher in by a the to the And an further generally see awareness appropriately mindful rate trends recession and are down about

Operator

is Autonomous. The Stuart from from next question Graham

Stuart Graham

And It Can comments, then would that has means James. the the a for question. on Germany. sure in a recession loan done book. put the two. follows also if for question had stress what study of the the second last you I stops give your I following sensitivity. us Bundesbank I'm saying is what feel you've gas a rate in that on from on deep please? That's mean, terms out your test those be ECL, first impact . a

as gave You the saying that forward that the curve stood. IDD slide at it

benefit for billion further and steepened it was the think XXXX of I since million €XXX €X.X has curve for obviously, then.

two and the update €XXX on So please? give €X.X numbers, can million you billion, us an the those

James von Moltke

in reverse I'll Look, is questions. for answer Sure. the take that to curve Happy The we relative that them the we improved the or that to, has thanks the order. revenue Stuart, and showed impact curve outlook showed.

€XXX this cumulative impact we're recent the it would interest curves, impact or so at interest year and And income if XXXX rates €XXX by by million looking over around million.

end the at closer than €X be we we'd that billion. €X.X So billion period, of showed

asked it, say, continued €XX that again, €XX in coming to And as things the the the XX off repeat step the again, biased is And even feel supports of we as we the year's stand. end as range. in from relative December for it that guidance disclosure. a was becomes why I old. reason showed. by, strong gather, feeling goes to sort support billion, -- guidance we didn't rates essentially The you'd So number. time have it billion that high this One And thing, revenues, slide about I interest the Stuart,

On repeat German your want interest-earning interruption are disclosure. beginning with stale out and numbers, our do similar absolutely a I've downside interest the didn't to around talking of energy one assets Bundesbank these economy, work the margin sensitivity, about our supply an would we frankly, it's economists numbers, naturally, essentially question question net fair the so at this scenarios, scenario of looking been with provide reasons we come And to to that study. of the and to sort we but about we

the that, the And and a you source it case quickly. on economy sort, one can't and supplies so in stressed is potentially a relatively of because economy impact lasting that refactor significant all

managing other book, at the I be too for scenarios that that of to that sort beyond stress the political So about you can't us. year. look you Germany these corporates with our would that disclosure. are space an provide not driven stress fiscal I support a different scenarios and has very shown shocks credit of economy, from that the potentially at the place. and scenario the it's would through support of taken in think as takeaway. it have what have We'd testing And even effect goes is we in is sort -- scenarios frankly, look lot that's impact I can X to in prepare thing severe of ECL the But other say think think and policy for, that that important will we manageable households I is be which itself important to some the

So bank. development whatever would government the those either asking impacts were the course, by of through action ECL about, be mitigated that take directly or to you're

our you through much concentrations the Frankly, hedge, it's scenarios. But is credit wouldn't the adverse know, books, uncertainty very These on on as all amount on hard time. as because focused risk I we know, types of our So preparing subjective in management you about the something, given books risk speculate really the mitigants. and it's we're a it significant mechanisms. for so and to the various value, are the frankly, how you we're give of

Stuart Graham

fair. That's

for you So provisions Is of bottlenecks, chain possible referenced, that's Russia. that impacts. X direct just basis any supply There's the this extra points right? the nothing year, indirect

James von Moltke

that's Yes, right.

still of be What of severity at building think of sort fiscal unlikely We're increment Again, than, again, not the path the much it's already. and more shown case support, may a we on looking the we're that. that dependent. But is we've about today. net not assumptions So for very, degree the frankly, basis, frankly, provisions some a base crisis very case. with downside

Operator

question next from is The Brupbacher from Daniele UBS.

Daniele Brupbacher

capital -- what this CETX to Or preventing remarks then the come briefly it return would already another are made already, some doing really prefer above €X further but I what year? prevent put buybacks around, to just program this the you make I what XX.X back year? Can the you way Is And ratio and you a would more a already it currently, a from other more doing decent just to is you question. start would what year. be was it wondering back-end one? currently XX? have a I secondly, skewed, has to dividends buybacks, bit end question. Or And back technical and that total billion loaded, bit from Because in another next

terms Because us target. obviously, quite of could you the the that important X% land could of potentially. a range context give in benefits RoTE the mentioned, impact? You where positive again, be DTA of Can it in

James von Moltke

we in any would temper that on, all team's Look, environment, accelerating perspective uncertainties I by growing management Stuart, that of this discussed returns. the with a just think capital going war or itself, about

sort of delivering So That capital that the of earnings most would the come to generation a on of will through net we based sort bit We a that we're means it's But in planning. sheet point. just light we right 'XX while at growth equally, after -- don't ourselves we any rush our earnings, -- organic environment in we've in -- look or something and of planning, plans that to for outlook build on on don't growth year-end. the little us half we've basis be of given know today's for see the year. think the second of guidance and accelerate some through need hence, capital in And we is plans. we our have. that uncertainties in this the you distribution as a given we'd Clearly, now, flexibility, focus balance in we at particularly the some wouldn't on our IDD, capital uncertainties, that from supporting impact the see and or discussions was ratio given our in room 'XX,

it give to analysis every similar of you basis. projected do hard levels U.S. we the it's we it rough a so last line. going to both on DTA, year that and mean, It's in could to the of year the On year, profitability, range, the saw a in in say. depend on But €XXX call -- million on to quarter fourth tax be in what around I

Operator

next from question Magdalena Stoklosa from is Stanley. Morgan The

Magdalena Stoklosa

unfortunately, James, well. and on there on one, questions, as another the still two corporate and I've costs got pipelines one lending

So things. we kind the of right? on how two of got inflation, should Because sources scale you've the costs,

you've and You've variable got the your payroll, comp. got

all on variable it Germany chin. comp, assume particularly and I'm I course, offset. inflation we comes should And the with of with of on scale because, So of kind a kind acute take in we your kind how that's of payroll IB. that you, a But revenue kind of

wonder of your very pipelines of you the there seeing were the any corporate there? continues current And kind like And and be be are lending demand? actually look second, bank strong. color would to the demand kind I do how of kind has the growth just what your And What where So in mean drivers I there? of useful.

James von Moltke

the for Magdalena, Thanks, questions.

we're it carefully. looking that most look, So payrolls at is

I several been from in think while see we're protected And in years you And non-comp, and we now. And very, price sort competitive through over on sort seen demand something we've attempting You've increases, part, of do bidding very management to contractually. internally. manage put it's focused. vendors through of part,

when in a on focused it a thing increases. as good is say, non-comp lines. So we're sense, variable very And compensation the you

in we in On I'll one Germany thing reached with tell the the payroll, that you, line planning. recent agreements are our

in pressure least while So or without presenting that course, world, of planning the to the the is has with item there's, line around at planning. all finalized pressure now been

recruiting, our inflation pressures, we've costs. see out I is which We us the that's this to focus address. need is talked that We to to see something work to that our manage. want in and peers marketplace retention cut execute some And and reflect we to where the and of also budgets, got needs be on about there think real in that control we think incidentally to but hard where competitive. clearly compensation investments, that inflation for work plans, our I that some is our is have out within our just including do

pleased, loan corporate of the across both terms way. bank Bank Corporate seen and the steady have the Bank, say, we're In by I with Private pipeline, growth very lending to we've

to level earlier be corporate of it our like it cost. also of a client We'd force question risks sheet and line to quarter remains billion how that's long us. billion the and in funding €X €X for the loan to to and force, up to both growth retune the to essentially see liquidity within it sort and is the them a to really invigorate we So time, sympathetic origination finance liability time takes really sort side to also a discussions sales of quality per good driving made balance appetite and the of about risk target. for sides manage lending client a sustained, time we've trade perimeter, long way is was the the we over banking our long, What's and efforts sales and of quite that a CB

our on a question, growth. environment, about pleased including this to environment balance somehow seeing more very sustainable detriment a much and think impact where with we're So that loan being long-term our we're earlier, Nicolas' I for sheet. needed clients, is this now far from hopefully, as sustainable, relevant that And mentioned an to we

Operator

from Anke is RBC. question next from The Reingen

Anke Reingen

two follow-ups. Just

already But in the avoid. wanted you the guess is a bit up and just strong I bounces to NII on relatively a QX. versus it's NII. or First Banking across quite question has PB QX Corporate

specific €XXX the you we the of part XX later year? Or and -- Is is call are quite think bit €XXX more in generally the largely you XXXX it then cautions. you're because in higher Or normally, the on in QX? for is is you're you vague. reflected inflation. you the time, previously a it that million something it? of mind we have in the what can't expect for already now RWA by And -- mean, on in it should and just year I that should So coming million said rest this

James von Moltke

the Thank question, Anke. you for

on first year accelerating as goes the by. we So one, see the

books €XXX In PB impact would you overwhelmingly modest as in in the the the short with numbers. So only the CB, in is that in of quite euro, imagine, move in potentially non-euro year, north it a may is timing piece. the and And can just and end clear and whatever of to because to million rate magnitude €XXX of course, QX priced CB is especially do are ECB amount in rest and actions that both sensitivity already ultimately quickly. everything isn't the And relatively million in. dollar-related us dollars will the euro of started the ECB only that the that's it's currencies

there'll parts that asset come and side tiering, reversing through. moving then but a remember deposit the to from there's the moves. be zero need that You of when from deposits floor benefits depot the rate benefits There's There's lot reversing charging.

rate trajectory that assume has So we its based is there's through far. to so say, what points accelerating by seeing the Fed on basis we're But significantly basis positive moving lot year the Right XX of basic and would ECB the a by, now, points. parts. and moved up XXX depot in the

largely happened yet. -- as you hasn't and So that

So can ahead. front-end lies still see impact is you the

where sort something inflation, number and discussion TRIM, we experience talk We through examinations. know at you there these place. just your is some about had overlays On into of feedback examinations and the some through outcomes RWA. model point. you We is the underway, of yes, a don't terms RWA uncertainty. There's in take the There's or go that incorporate and discussions this adjustments then same

this know point. don't I at really to build in So what

Operator

from question Jeremy Sigee, Next BNP. is

Jeremy Sigee

slightly linked. questions, Two

is First It's banks be taking the also the range scenarios one the U.S. of earlier in particular some ahead is one peers U.S. to notable and us. of and taking cover about provisioning. could of are economic of discussion been to provisions linked of German well your that as your peers that precautionary some

but just coming? uncertainties, your on a could seem to And the are that done don't in the question so thoughts have whether my impacts I question. nitty-gritty then second range there's those some what of more You wonder provisions much precautionary that, booking and given potential of be rather is merit of

and heavier of Just the quite on the rate components various normalize of of corporate just we run a year? wondered, you've that. center, to than And the those which all given us the expect then of the normal in was sort drag remainder and guidance rapidly I do

James von Moltke

appreciate I Jeremy. Thanks, the questions.

following on precautionary And we determinations so in I'd in. look, you Pages the we X the on think So overlays XX that disclosure point put we IFRS of done provisions. to our terms and have and

We As to point. it scenario severe model. Stuart, a said of reflect variations do build into I sort . our doesn't downturn this sort at essentially of

So is implicit central sort scenarios we that in around essentially models. ranging of variables macroeconomic in a of the the use scenario,

FLI, other then model in indicators. applied in the we've reflected It's overlays. IFRS words, In the in additional changes basis, a variables X forward-looking those So and forward-looking it's on driven. the then reflected some

and is to a hedged hence, and drag highly the it's the you precautionary collateralized. terms modest our of run sometimes we loan the credit were But as I'd provisions, and other book sensitivity, simply it's see the through numbers, corporate the at relatively those in others, we out, but in look may as risk, and disclosure overlays the terms in going our seem experience less relatively as call you You said, impact, often this how low-risk quarter. to It's The that reflects provisions, but predicated. COVID peers. invite than compared XXXX our that of performance on view

a differences a in sort I'll the quarters that of the inherently there of €XXX and timing to valuation we to magnitude timing and expect markets considerable call, huge come. Valuation those we the is like anything million saw and quarter. would volatility in from So function in of headwind amount what a I had residual repeat rounding in than not normal, treasury higher

twists So took treasury turns that on that VNTA, reasonably pleased And any overall, place. remember, in and there, were of given losses on And will it million again, we all the relationships; they're of sort of those with and given of changes essentially ultimately, reverse guidance the over day outcome residuals, the sort can based pull par we've €XXX-ish to given the accrual b, there. positions. that time curves given hedging and sort

and drag So a heavy over was well moderate the the we'd that But and bank was as C&O expect unusually first year. core the the performance group. net-net, on to quarter

Operator

Lim from Andrew question Societe from is Next Generale.

Andrew Lim

understand is doesn't your on runoff. NII include the first The one TRO If I correctly, guidance. this

we assume that just through to committed bring did we would what is deserve to NII runoff, forward? still looking off in if trajectory regain And then onwards, are So your Or we you at on you this program comp extent will also the higher secondly, million the it guidance? How XX? costs going reduction indicated? the down €XXX again. And sequential cost that visiting what one-offs take million be €X,XXX XQ do point Slide starting take do that

James von Moltke

points the the impact that you margin Slide show of about TLTRO running right to second the We're of comes half call the out, And X, down, by you that TLTRO XXX So thank steps of Look, half net margin. kicker. quarter change where the -- Andrew, the we on year. -- per and now of that's refer questions. as and you interest slide for in at as basis XXX I it,

that, to think was on answer environment exactly it's I your we question, into I Kian. built we mentioned discussion that where going forward expect But significant in would it long that's acceleration as question rates €X.X as So Anke's were we from in through. billion, with our look. have both And come then rate short-term the the the and underneath

to focuses focus although, the and run Our in And can future. SRF revenues run quarter which whether February wake rates work the need items the us, provided. deliver bringing the and year inflation And number that's less by tell offset where so of bump us. measure on, week on again, with and and of reason down But yes, is things like that our against at we've it's the that to obviously, there's line if were for guidance and path both around or rates in a -- against with to to that's March positive uncontrollable the if targets, line go other past quarter, day day the were we we sort January that's happy you it sort look takes I the in, in management find we March, with that. was, the out, what in, And you was ways in large, in out. in in the

Andrew Lim

having And What just The as far, beta far? a XXX%? have that you X Great. you're deposit is experience seen so that towards or follow-on. closer thus

James von Moltke

the because started frankly, to Yes. And pretty a really in close say, it And short-term rate-driven item. be area, dollar hasn't floor, X. it's really off to to XXX coming a you're in going zero when you're

deposit base kept. is XXX% will of professional I'd dollars So in call what money. some say our I

So it. sort some be of to business, that XXX% will beta tend of

trust structure. X of Some it actually the for is terms of because example, of,

guidance mix too a bit and the to it's So result. really against give to performance early of as you modeled our a

test point but some a haven't that my is this off, should to on time models really back series yet our this got said at I've As instinct calls, as earlier we outperform against. we starts

Operator

The question Citi. from Andrew is next from Coombs

Andrew Coombs

to theme, back question. same on answers go the to Yes, If staying Kian's afraid. I'm your two

for Deep the provided Dive. me obviously, XX% figures you've you've levy is have actually I in the from guess And the in you reported February, down revenues. or And about without subsequently up a usually X.X question question and what in the provided to I January talked X.X your run You, March. ticking rate your the is Ukraine, January QX year I ratio February comments in given being to volatility today, contribution over with quite imagine post-Russia, I then guess what and year, it XX.X% variable includes must that confidence cost-to-income been was know the higher of appreciate that fixed we know XX% and as the around comp figure X income very to March, in you some levy. We first of you've helpfully the of that XX% because your is, therefore, months even that's have for But go the gives any and March. supportive when the that March. below the the March month. been of strong on remainder well

confidence? the So why

James von Moltke

Yes.

Andrew, of off of -- of rates. through first the you run looking do run what is the we one you So math so quite terms the -- because through went easily the quarter what sort SRF of can rates in the are. the absolutely, reasons just labor we through it's But distortive in

need to expenses revenues to revenue X.X, sure not, quarter you the appropriate run XX.X% first But driven, a X.X, make a a actions to the say first manage cost that support if analysis, that, in to math of we we need and If a the just that on the that acknowledging monthly income quarter, over that taking down. rate, a be do X.XX, that significant need the from for we're but SRF sensitivity repeat. down this at impact cumulatively a manage the what expenses the and was hit to the the basis or quarter targets. doesn't ratio Clearly, it's

Operator

The from Adam next is question Terelak Mediobanca. from

Adam Terelak

for or back and said come you've much euro XX us for The to €X.X kind circa what today. you've NII upgrade by want us billion XXXX. know hikes. which, points, the CMD mark-to-market me the point you of than XX for, of basis given €X billion I basis kind moved curves the more given full was to I number year again. XX, I took

So this coming the what quarters. in I Q-on-Q could sounds like coming why any can corporate be might CB the hikes you through mean and about that the hikes, already long you how we seeing the but we've but I in moves are would what million saying headwinds that through that developing know U.S. look terms for the the NII just through upgrades the put bank, models Could of and speak to like over aren't you're models bigger? replication It the should about end how And also year through upgrades that replication through this and seen? talk €XXX Bank? through then year. dollar Private to there, think our through thinking missing coming still

James von Moltke

doesn't to the rates. NII and just built haven't the analysis, There's kind we rates, And is doesn't they up that it back drive up, short-term also so right an moved, of that And away. even haven't would the that the a you first because to versus a X Adam, meaningful you clearly, depot year the -- sensitivity of they And in long-term sensitivity short-term rate. of the moved show quarter rates gave the disclosure refer IDD in can on course, impact. I short sense amount, our hedging, show by of some of in

There's rates bank. it's sensitivity takes time. longer and just negative roll hedging short the given -- it a private takes through longer an private deposit that feed to given just impact forward. some the in private in it much through both to but takes QX, higher rates And about Corporate accelerating impact the yes, an not going it point Bank, an there, would is hence, your for It there, rates a So long-term and we benefit to impact that book we're and odd book. the is than for bank bank. longer see short-term to that sensitivity term accelerating To non-euro that duration

Adam Terelak

than million slides, and guide? You million, in went missing the XXXX €X for moved points. year or the XX And a basis €X €X the euro million think said Okay. on I curves more

James von Moltke

Yes. in We're year for million the as increase the I XXXX. the, -- in so calling say, fourth €XXX we're

So suggest that €X out right billion models now, would our far.

to downside, the think I of like. the IDD, if you nonlinear upside sensitivity some mentioned, we the As at is

modeling. there some And we how in behaves probably quirks do internally detailed some outside perhaps the so are versus modeling in

the to is answer strategies. your that of in the So is probably the question is working hedging how quirks portfolio our

Operator

The Barclays. last Goel question from is from Amit

Amit Goel

So some follow-ups.

first was look during limiting remainder that to return. of just would ability that in doing kind just conversation, the then but how you And stage. detailed do cost at whether this a on question, address wanted with maybe just up below there guidance, fast year-to-date back or the a again, you trending I I you detailed XX%. to I regulatory look the -- ratio, that imply the the Relations also of point. in cost the flagged the I X.X higher you the half a buybacks more P&L. cost/income When again if the just . this variability were still check was double so any restriction group it's revs, Jan-Feb. just trend also that? does on wanted of second of to kind your point RWA just can curious my further I And February relates very also, and given Firstly, in bit the buyback. year, it the that check, there's were wondering capital €X.X of slightly billion Investor gave to XX.X% within this of of a monthly to in team, follow guidance kind Obviously, at is

of of whether wanted to that costs had check kind I shifted March? just So some to also

James von Moltke

Yes.

hence, trying and we're degree wouldn't And on I'm indicated follow math our fund with think to I regulators starting I they is go have again, Andrew's question earlier. math cost. your I highly or as something think returns. that constraints. guess, No, and I ask and no high the know, and planning in of the maybe environment, capital single capital distortion, a I about, But you mean, Daniele, this discussion, no the the iterative resolution with our to as visibility. we the But

us. sort that placed restrictions dialogue, fluid a have but be would it So no on been of

moving RWA planning the planning and there's always number In that capital variability, RWA large the a terms of of in we parts do.

growth you detailed resources other see reasons, market to your take of kind of And expectations of accessions risk And And we exclude so group of and given you regulatory guiding that the cost of then you to income part how -- at we RWA number ratio, at if your it €XXX other distortive run tightly €XXX million. any process. XX% a again, or exceeds our the day-to-day look level ex us hence, it's within is. the firm. had very that we million all management for and the our the rate do actions, have that RWA, Where changes, as dynamic it's we frankly, things, arising the offsetting

the every of So And the below first of seasonality there's the monthly course, first ex rate the month running run was SRF XX% quarter. quarter. some in

And of third run on need sustain the continue SRF, including focus. XX%, to laser quarter at below you So there's averaging to the here. of there's same question will work lies it means XX basis ahead, -- given we the revenues? from to management's that effect having that level a run has monthly of that the a And

Operator

further no Ioana back I Patriniche. hand There questions. are will to

Ioana Patriniche

for all Thank results first follow-up Relations the with your to XXXX to you out with that, to team our look we joining questions. speaking Thank quarter any And to items. for call Please second you at and our for hesitate us don't forward reach Investor call. quarter you.

Operator

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

Deutsche Bank (DB) 27 Apr 222022 Q1 Earnings call transcript