(AGENPARL) - Roma, 27 Luglio 2022 - (AGENPARL) – mer 27 luglio 2022 Media
Release
Release 1 |
Issued by the media relations department of Deutsche Bank AG
Taunusanlage 12, 60325 Frankfurt am Main
db.com/news
Email: db.
media
@db.com
��
Deutsche Bank reports profit before tax
of € 1.
billion
highest
second
quarter
profit since 2011
Profit before tax up 33% to € 1.5 billion with p
profit
% to € 1.2 billion
tax return on tangible equity (RoTE)
, up from 5.5% in the
second quarter of 2021
Cost/income ratio of 7
%, down from
% in
prior year quarter
Net revenues up
% to € 6.6 billion
driven by
growth across all core businesses
Corporate Bank up 26% year on year to € 1.6 billion
Investment Bank up 1
% to € 2.6 billion
Private Bank up 7% to € 2.2 billion
Asset Management up 5% to €
million
Noninterest expenses reduced
% year on year to € 4.
billion
Adjusted costs ex
transformation charges and bank levies
up 2% to € 4.7
billion,
down
adjusted
for foreign exchange movements
Core Bank profit before tax
rises 2
billion
tax RoTE
, up from 7.8% in
prior year
quarter
ost/income ratio
improves from 76% to 70% year on year
Capital Release Unit
delivers further progress
Loss before tax reduced by
% year on year to € 18
million
everage exposure down €
billion to €
billion
during the quarter
Common Equity
ratio
%, up
from 12.8%
first
quarter
First
six months
highest
year
profi
since
despite higher bank
levies
Net revenues up 4% to
14.0 billion
Profit before tax up
% year on year to € 3.
billion
tax profit up 3
% to € 2.
billion
tax RoTE
, up from 6.5%
Cost/income ratio improves
, down from
% in prior year
period
Frankfurt am Main
Media Release
“With the best half
year profits since 2011, we have proven
once again
that we
can deliver growth and risin
g profits in a challenging environment
”, Christian
Sewing, Chief Executive Officer, said.
We are particularly pleased with the
progress of our Corporate Bank and Private Bank. Thanks to our successful
transformation, we’re well on track to deliver sustain
able and well
balanced
returns through our four strong core businesses.”
its highest
second
quarter
and half
year post
profit
since 2011. P
rofit before tax
billion
for the
second
quarter of 2022
% year on year
, while
profit was up
% to € 1.2 billion.
tax return on a
verage tangible shareholders’ equity (RoTE)
%, up
from
% in the prior year quarter.
tax return on average shareholders’
equity
(RoE)
was 7.1% in the quarter, up from 4.9%
in the prior year quarter
cost/income ratio improved to 7
%, from
in the
second
quarter of 2021.
effective tax rate
% for the quarter
benefited from a change in the
geographical mix of income
For the first six months,
profit before tax was € 3.
billion, up
%, and post
profit was up 3
% to € 2.
billion. Profit attributable to Deutsche
shareholders was up 32% to € 2.1 billion
. Post
tax RoTE
was 8.
%, up from 6.5%
in the first six months of 2021, and
, up from
cost/income ratio improved to 73%, from
% in the prior
year
period.
Results for
the first six months of 2022 includ
bank levies of €
million, up €
million
prior year
period.
The effective tax rate for the first six months
was 24%.
2022 targets updated, 2025 targets reaffirmed
Deutsche Bank reaffirms 2022 revenue guidance of € 26
27 billion des
pite the
deterioration in the macro
economic environment seen in the second quarter and
expectations for a more challenging second half of the year.
The bank remains committed to continuing
cost reduction
efforts
and will
continue to execute on its 2022 plan. However, the bank also recognises
increasing cost pressures from factors outside its control including higher
expected bank levies,
inflation,
unforeseen costs related to the war in Ukraine, and
litigatio
n matters
The bank also made the decision not to cap strategic
investments
in its control environment, staff, and technology to drive growth and
efficiency,
which
are important for
term
strategic
direction
as outlined in
the Investor Deep Dive of
March 10, 2022.
In the light of both revenue and cost developments, Deutsche Bank has updated
its 2022 targets as follows:
Release
The bank continues to target a post
tax RoTE
of 8% (Group) and above 9%
(Core Bank) for the year 2022, while recognising that the
current operating
environment makes delivery on these targets more challenging
The bank’s guidance is now for a cost/income ratio in the mid
to low
percent for 2022
apital
ratio of above 12.5% and a leverage ratio of around 4.5%
The bank reaffirms the goals of its strategy of sustainable growth through 2025.
For 2025, the bank targets
compound annual
revenue
growth
; post
tax RoTE
of greater than 10%, and
a cost/income ratio of below 62.5%. The bank
also reaffirms its aim for cumulative capital distributions of around € 8 billion in
respect of the years 2021
2025.
James von Moltke, Chief Financial Officer, said:
“Based on the resilience we have
demonstrate
d in the first half, we reaffirm our 2022 revenue guidance, which we
tangible equity target. At the same time, we face cost pressures in a more difficult
environment than exp
ected and continue to invest in the long
term strength of our
platform. We remain fully committed to our sustainable growth strategy and to all
our financial targets for 2025.”
Core Bank:
broad
based
profit growth
he Core Bank
, which excludes the Capital Release Unit,
produced
profit before
billion,
year on year
Profit growth reflected 6% r
evenue
growth
to €
billion,
combined with a
% reduction in
noninterest expenses to €
billion
djusted costs ex
transformation charges and bank levies were
to €
billion
% if adjusted for FX movements
tax RoTE
consistent with
the Core Bank’s full year 2022 target of
above 9% and
up from
% in the
second
quarter
of 2021
. Post
tax RoE was 8.4%, up from 6.9%
Core Bank’s
cost/income ratio was
down from
% in the prior year quarter
The core businesses contributed as follows to the
Core Bank’s
profit
growt
Corporate Bank
profit before tax of €
million, more than double year on
year, with
tax R
of 13.
% and cost/income ratio of 62%
Investment Bank
profit before tax
of € 1.1 billion,
%, with
and a cost/income ratio of 5
Private Bank
profit before tax of
€ 4
million, versus a €
million loss
before tax
in the prior year quarter,
tax RoTE
cost/income ratio of 7
Asset Management
profit before tax of € 17
million, down
year on
tax RoTE
and cost/income ratio of 6
Media Release
For the first six months,
Core Bank pre
tax profit was up
% to € 3.
billion
tax RoTE
was 10.
%, up from 9.3% in the first half of 2021. The cost/income
ratio was
%, down from 73% in the prior year period.
The com
bined profit before
tax of
the Corporate Bank, Private Bank and Asset Management
€ 2.1 billion,
or 56
% of the Core Bank
profit before tax in the first six months
, compared to
% for the first six months of 2021
Capital Release Uni
further portfolio reduction and P&L improvement
The Capital Release Unit
maintained its progress on portfolio reduction. Leverage
exposure was reduced by
a further
billion to €
billion during the
second
quarter
isk weighted assets (RWAs) were
stable at
€ 2
billion
including
operational risk RWAs
billion.
Capital Release U
remains ahead of
its year
end 2022 targets for both leverage exposure and RWA reduction and
cut leverage exposure by
€ 220
billion, or
and RWAs by
€ 40 billion, or
since its
creation
in mid
Capital Release Unit
further
reduced its loss before tax to €
million, down
year on year and the lowest quarterly loss since
creation
in 2019
. The
improvement was driven primarily by
year reduction in
noninterest
expenses
, while net revenues were €
million positive, versus € 24 million
negative in the prior yea
r quarter, reflecting
lower impacts from de
risking, risk
management and funding.
Revenue growth across all core businesses
in second quarter and first half year
Net revenues
were €
billion, up
year on
and the highest s
econd
quarter revenues since 2016, despite business exits related to transformation
since 2019
In the core businesses, net revenues were
as follows:
Corporate Bank net revenues
were € 1.
billion, up
year on year
highest since the
formation of the
Corporate Bank
in 2019
and the
third
consecutive quarter of double
digit revenue growth
Growth was driven by
a normalising interest rate environment
growth in business volumes and
higher fee income
Revenues in Cor
porate Treasury Services were up
Institutional Client Services
revenues
rose
% and Business Banking
revenues were
Gross
loans
were
€ 12 billion, or 11
eposits
rose
by € 19 billion, or 7
the prior year quarter.
For the first
six months, net revenues were up 18% to € 3.0 billion.
Investment Bank net revenues
billion, up
year on year
Fixed Income & Currencies (FIC) revenues
grew
to € 2.4 billion, the
highest
second
quarter
FIC revenues
for ten years.
Net revenues in
Rates,
Foreign Exchange and Emerging Markets
more than doubled year on
year,
which more than offset a decline in Credit Trading
compared with a
strong prior year quarter
Origination & Advisory revenu
declined by 6
year on year,
reflecting markdowns on
everaged
Finance
commitments
Release
which impacted debt origination revenues. Adjusted for these, Origination
& Advisory revenues were down 3
% year on year, against the backdrop of
a 45% year
year decl
ine in the industry fee pool (source:
Dealogic
Advisory revenues
were up 50%
reflecting
market share gains
For the first
six months, net revenues were up
% to € 6.0 billion.
Private Bank net revenues
were € 2.2 billion, up
year on year
, or 4%
adjusted for
two effects:
significant reduction in forgone revenues from
ruling by the
German Federal Court of Justice (BGH)
in April 2021
regarding pricing changes on current accounts,
partly offset by lower
revenues from
Sal. Oppenheim
workout activit
Revenues in the Private
Bank Germany were
or 3% if adjusted for the
reduced impact of
BGH ruling
, while t
he International Private Bank grew reve
ues by
6% if adjusted for
the effect on revenues of
Sal. Oppenheim worko
activities
new business volumes were €
in the quarter
This
included
inflows
of €
billion
including inflows
into investment
products
of €
billion
new deposits of € 2 billion, and
net new client
loans
billion.
For the first six months, net revenues were up 4% to €
4.4 billion
and net new business volumes were € 2
billion.
Asset Management net revenues
rose
year on year
to € 6
million
This development was
predominantly
driven by
% rise in
management
fees to € 6
million,
partly reflecting inflows in previous quarters,
while
performance and transaction fees
were up 6
31 million
. Net
outflows were €
billion,
driven
almost entirely
outflows of
margin
cash products in a
challenging macro
economic environment
, of which the
majority returned during July
et outflows ex
cluding
cash
products
were
essentially zero
inflows from
active
Equity, Multi
Asset and
Alternatives offset outflows in
Passive products
ssets unde
management were €
billion at quarter
end,
down
3% versus the prior
year quarter
, reflecting
the aforementioned
net outflows together with
market
conditions, partly offset by FX movements
For the first six months,
net revenues were up 6% to € 1.3 billion.
Revenue growth in Deutsche Bank’s core businesses more than offset negative
revenues in Corporate & Other
which
were negative € 370 million
in the quarter,
compared to negative € 6 millio
n in the prior year quarter
This development
primarily
reflect
valuation and timing differences on derivatives used to hedge
the economic risk of the bank’s balance sheet. These accounting impacts were
driven by market volatility
which persisted during the quarter
and rising interest
rates
partly offset by cross
rency basis effects
n aggregate
negative
valuation
effects
are expected to
reverse
over time
as th
e underlying instruments
approach maturity
For the first six months
, net revenues were € 14.0 billion, up 4%, for both the
Group and the Core Bank
, and t
he highest half
year net revenues since 2016
Media Release
Expenses: reductions
in the quarter and year to date
despite higher bank lev
Noninterest expenses
were € 4.
billion in the quarter, down
% year on year.
Adjusted costs ex
transformation charges and
bank levies
were up 2% to € 4.7
billion
. This development
primarily
reflect
FX movements
which were a
significant driver of
higher compensation & benefits
nformation
echnology
expenses.
Excluding the impact of
movements
, adjusted costs ex
transformation charges and bank levies declined
For the first six months
, noninterest expenses were down
% to € 10.2 billion
despite several factors. These included
higher bank levies
additional litigation
provisions
relating
, among other matters,
regulatory investigations into
employees’ use of
unapproved
personal devices and
the bank’s
record
keeping
requirements
and costs arising from the war in Ukraine
which included the
relocation of technology personnel
. Adjusted cost
transformation charges and
bank levies were down 1% to € 9.3 billion
, and down 3% if adjusted for FX
movements
The workforce
was reduced by a further
full time equivalents (FTEs) to 82,
internal FTEs during the quarter, a reduction of
since the end of the
second quarter of 2021
, despite s
trategic hiring and
continued
internali
ation of
external staff.
Credit provisions: growth reflect
a challenging environment
Provision for credit losses
was €
million in the quarter, up from €
million in
second
quarter of 2021.
tage 1 and 2 provisions
million, compared
to net releases of € 36 million in the prior year quarter, reflecting
less favorable
macroeconomic
variables
which were partly offset by otherwise improved portfolio
parameters
rovision for non
performing (
tage 3) loans
rose to
million,
€ 111 million in the prior year quarter, mainly driven by the
recurrence
larger stage 3 releases
which favorably impacted the prior year quarter
Consistent with earlier guidance, Deutsche Bank expects
provision for credit
losses t
in a range
approximately 25 basis points of average loans.
This
reflects the current operating environment, including management expectations
for a further gradual deterioration of economic conditions.
Russia exposure further reduced
Deutsche Bank further reduced its Russian credit exposures during the second
quarter. Additional
contingent risk was reduced by 42% during the quarter to € 0.6
billion. This comprised undrawn commitments of € 0.4 billion, d
own 44% during
the quarter, which are largely mitigated by Export Credit Agency coverage and
contractual drawdown protection, while guarantees were reduced by 35%
to € 0.1
billion
ross loan exposure was largely unchanged at
€ 1.3 billion at the end of th
Release
quarter, while n
et loan exposure was € 0.5
billion.
to date, additional
contingent risk
is down
63% and net loan exposure
Capital and liquidity in line with goals
was 1
% at the end of the
second quarter, up from 12.8% at the end of the first quarter, above the bank’s
target minimum of 12.5%. The quarter
quarter development largely reflected
the positive impact on capital from strong second
quarter earnings, partly off
by accruals for dividends and Additional Tier 1 capital (AT1) coupons, together
with
negative other comprehensive income (OCI)
The Leverage ratio
was 4.3% in the quarter, down from 4.6% in the first quarter
reflecting
the discontinuation, from April
1, 2022, of the exclusion of certain
central bank cash balances from the Leverage ratio. Including central bank cash
balances in both periods, the Leverage ratio was
essentially
unchanged from the
first quarter. The
negative
impact of higher leverage expos
due to business
activity and FX movements
offset by the positive impact of strong earnings
bank’s AT1 issuance in March 2022
which was settled in early April
Liquidity reserves
were €
billion at
the end of the
second
quarter
essentially
unchanged from
€ 24
billion at the end of the
first
quarter, including High Quality
Liquid Assets of €
billion. The Liquidity Coverage Ratio was
above the
regulatory requirement of 100% and a surplus of €
billion.
he Net Stable
unding Ratio was
within
the bank’s target range of 115
120%, with
surplus of €
billion above required levels.
Sustainable Finance: further progress
toward
accelerated targets
Environment, Social and Governance (
related
financing and investment
volumes
were €
billion ex
DWS in the quarter, bringing the
cumulative
total
since January 1, 2020
to €
billion.
ESG financial and investment volumes were
below recent quarters, reflecting several factors. These included lower overall
capital market issuance activity, which also impacted sustainable financing
volumes; more muted investment activity against a backdrop
of lower asset
valuations; and lower levels of sustainability activities as companies prioritised
their responses to the war in Ukraine. However, Deutsche Bank remains
well
track to reach its ESG cumulative volume target of at least € 200 billion by th
e end
of 2022.
In the
second
quarter, Deutsche Bank’s businesses contributed as follows
Corporate Bank
billion in sustainable financing, raising the
Corporate
Bank’s
cumulative total since January 1, 2020 to
billion
. Notable
transactions durin
g the quarter included
the signing of
00 million
supply chain financing linked to ESG ratings for Henkel AG & Co. KGaA
advising BASF on an M&A and financing
transaction
construction of
the world’s largest offshore wind farm
Media Release
Investment Bank
billion in sustainable financing and capital market
issuance, for a cumulative total of €
billion
. This included the Austrian
government’s first green bond, a
4 billion issuance due in 2049
Private Bank
billion growth in ESG assets under management and a
further €
billion in
new client lending, raising the Private Bank’s
cumulative total to €
billion
In addition to
cumulative volumes since January 2020 of over
200 billion by the
end of 2022
Deutsche aims to achieve
a further
100 billion per year from 2023
to 2025, reaching a cumulative total of over
500 billion by the end of 2025.
The bank reaffirmed its aim
to publish 2050 net zero targets for its key carbon
intensive portfolios, togeth
er with intermediate targets for 2030 at its second
Sustainability Deep Dive later in 2022.
Deutsche Bank will strengthen its sustainability governance by creating the
position of Chief Sustainability Officer with effect from September 1, 2022.
Group resu
lts at a
glance
ee months ended
months ended
in € m
(unless stated otherwise)
Jun 30,
Jun 30,
Absolute
Change
Change
Jun 30,
Jun 30,
Absolute
Change
Change
Total net revenues, of which:
6,650
6,238
13,977
13,471
Corporate Bank (CB)
1,551
1,230
3,012
2,543
Investment Bank (IB)
2,646
2,394
5,969
5,491
Private Bank (PB)
2,160
2,018
4,381
4,196
Asset Management (AM)
1,338
1,263
Capital Release Unit (CRU)
Corporate & Other (C&O)
(370)
(364)
(723)
(643)
Provision for credit losses
Noninterest expenses
4,870
4,998
(128)
10,247
10,572
(325)
Profit (loss) before tax
1,547
1,165
3,205
2,754
Profit (loss)
1,211
2,438
1,865
Profit (loss) attributable to Deutsche Bank
shareholders
1,046
2,106
1,600
Common Equity Tier 1 capital ratio
13.0 %
13.2 %
(0.2)
13.0 %
13.2 %
(0.2)
Leverage ratio (reported/fully loaded)
4.3 %
4.7 %
(0.4)
4.3 %
4.7 %
(0.4)
Not meaningful
Prior year segmental information presented in the current structure
Starting with Q1 2022, leverage ratio is presented as reported, as the fully loaded definition has been discontinued due to i
mmaterial differences
omparative
information for earlier periods is unchanged and based on DB’s earlier fully loaded definition
For a description of this and other non
GAAP financial
measures, see ‘Use of non
GAAP financial measures’ on pp
25 of the
second
quarter 202
Financial Data Supplement
“Non
GAAP financial measures” on pp.
second
quarter 2022
Interim
Report, respectively
Cumulative ESG volumes include sustainable financing (flow) and investments (stock) in the Corporate Bank,
Investment Bank and Private Bank from January 1
2020 to date, as set forth in Deutsche Bank’s Sustainability
Release
sustainable financing and period
nder management. Cumulative volumes and targets do not
second
quarter performance in Deutsche Bank’s businesses are
available
in the Interim Report as
of June 30, 2022.
For further information please contact:
Sebastian Kraemer
Christian Streckert
Phone: