Deutsche Bank Aktiengesellschaft 6-K, filed Dec 10, 2020
Deutsche Bank Aktiengesellschaft (DB)
About this 6-K
Deutsche Bank Aktiengesellschaft filed this 6-K on December 10, 2020.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13
a
-16 OR 15
d
-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2020
Commission File Number 1-15242
DEUTSCHE BANK CORPORATION
(Translation of Registrant’s Name Into English)
Deutsche Bank Aktiengesellschaft
Taunusanlage 12
60325 Frankfurt am Main
Germany
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Explanatory note
This Report on Form 6-K contains the following exhibits:
Exhibit 99.1 : Media Release, dated December 9, 2020, of Deutsche Bank AG, regarding progress on its transformation strategy and financial targets.
Exhibit 99.2 : The following presentations given by senior officers of Deutsche Bank AG at its Investor Deep Dive Conference on December 9, 2020:
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(i) Presentation of Christian Sewing, Chief Executive Officer;
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(ii) Presentation of James von Moltke, Chief Financial Officer;
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(iii) Presentation of Stuart Lewis, Chief Risk Officer;
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(iv) Presentation of Bernd Leukert, Chief Technology, Data and Innovation Officer;
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(v) Presentation of Fabrizio Campelli, Chief Transformation Officer;
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(vi) Presentation of Karl von Rohr and Claudio de Sanctis, regarding the Private Bank;
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(vii) Presentation of Stefan Hoops, regarding the Corporate Bank;
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(viii) Presentation of Mark Fedorcik and Ram Nayak, regarding the Investment Bank;
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(ix) Presentation of Asoka Wöhrmann, regarding Asset Management;
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(x) Presentation of Christiana Riley, regarding the Americas Region; and
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(xi) Presentation of Alexander von zur Mühlen, regarding the Asia Pacific Region.
Deutsche Bank hereby incorporates by reference into its Registration Statement No. 333-226421 this Report on Form 6-K, Exhibit 99.1 hereto and the following pages of Exhibit 99.2 hereto: (i) page 10 of the presentation of the Chief Executive Officer and (ii) pages 3, 4, 8 and 24 of the presentation of the Chief Financial Officer. The other pages of Exhibit 99.2 are not so incorporated by reference.
Forward-looking statements contain risks
This report contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations. Any statement in this report that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
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By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our trading revenues, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our 2019 Annual Report on Form 20-F, which was filed with the SEC on March 20, 2020, on pages 13 through 47 under the heading “Risk Factors.” Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir.
Use of Non-GAAP Financial Measures
This report and other documents we have published or may publish contain non-GAAP financial measures. Non-GAAP financial measures are measures of our historical or future performance, financial position or cash flows that contain adjustments that exclude or include amounts that are included or excluded, as the case may be, from the most directly comparable measure calculated and presented in accordance with IFRS in our financial statements. Examples of our non-GAAP financial measures, and the most directly comparable IFRS financial measures, are as follows:
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Non-GAAP Financial Measure |
Most Directly Comparable IFRS Financial Measure
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Profit (loss) attributable to Deutsche Bank shareholders, Profit (loss) attributable to Deutsche Bank shareholders after AT1 coupon, Adjusted profit (loss) before tax
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Profit (loss) before tax |
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Revenues excluding specific items |
Net revenues
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Adjusted costs, Adjusted costs excluding transformation charges, Adjusted costs excluding transformation charges and expenses associated with the transfer of the Prime Finance business to BNP Paribas
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Noninterest expenses |
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Net assets (adjusted) |
Total assets
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Tangible shareholders’ equity, Average tangible shareholders’ equity, Tangible book value, Average tangible book value
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Total shareholders’ equity (book value) |
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Post-tax return on average shareholders’ equity (based on Net income attributable to Deutsche Bank shareholders)
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Post-tax return on average shareholders’ equity |
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Post-tax return on average tangible shareholders’ equity |
Post-tax return on average shareholders’ equity
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Tangible book value per basic share outstanding, Book value per basic share outstanding |
Book value per share outstanding |
For descriptions of non-GAAP financial measures and the adjustments made to the most directly comparable financial measures under IFRS, please refer to (i) pages 28 to 31 of the presentation of our Chief Financial Officer set forth in Exhibit 99.2 hereto, (ii) the section “Non-GAAP financial measures” of Exhibit 99.1 of our Report on Form 6-K dated October 28, 2020, (iii) the section “Use of Non-GAAP Financial Measures” on page 6 of our 2019 Annual Report on Form 20-F and (iv) the section “Supplementary Information (Unaudited): Non-GAAP Financial Measures” on pages 431 through 439 of our 2019 Annual Report (which constitutes a part of our 2019 Annual Report on Form 20-F).
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When used with respect to future periods, our non-GAAP financial measures are also forward-looking statements. We cannot predict or quantify the levels of the most directly comparable financial measures under IFRS that would correspond to these measures for future periods. This is because neither the magnitude of such IFRS financial measures, nor the magnitude of the adjustments to be used to calculate the related non-GAAP financial measures from such IFRS financial measures, can be predicted. Such adjustments, if any, will relate to specific, currently unknown, events and in most cases can be positive or negative, so that it is not possible to predict whether, for a future period, the non-GAAP financial measure will be greater than or less than the related IFRS financial measure.
Regulatory fully loaded measures
Our regulatory assets, exposures, risk-weighted assets, capital and ratios thereof are calculated for regulatory purposes and set forth throughout this report under the regulation on prudential requirements for credit institutions and investment firms (“CRR”) and the Capital Requirements Directive (“CRD”) implementing Basel 3, which were published on June 27, 2013 and which apply on and after January 1, 2014. CRR/CRD provides for “transitional” (or “phase-in”) rules, under which capital instruments that are no longer eligible under the new rules are permitted to be phased out as the new rules on regulatory adjustments are phased in, as well as regarding the risk weighting of certain categories of assets. Unless otherwise noted, our CRR/CRD solvency measures set forth in this document reflect these transitional rules. We also set forth in this report such CRR/CRD measures on a “fully loaded” basis, reflecting full application of the final CRR/CRD framework without consideration of the transitional provisions under CRR/CRD, except as described in respect of the applicable measure. Measures calculated pursuant to our fully loaded methodology are non-GAAP financial measures.
We believe that these “fully loaded” calculations provide useful information to investors as they reflect our progress against the regulatory capital standards and as many of our competitors have been describing calculations on a “fully loaded” basis. As our competitors’ assumptions and estimates regarding “fully loaded” calculations may vary, however, our “fully loaded” measures may not be comparable with similarly labelled measures used by our competitors.
For descriptions of these fully loaded CRR/CRD measures and the differences from the most directly comparable measures under the CRR/CRD transitional rules, please refer to (i) the sections “Risk information” and “Non-GAAP financial measures: Regulatory fully loaded measures” of Exhibit 99.1 1 of our Report on Form 6-K dated October 28, 2020, (ii) the section “Management Report: Risk Report: Risk and Capital Performance: Capital, Leverage Ratio, TLAC and MREL” on pages 97 through 111 of our Annual Report 2019, in particular the subsections thereof entitled “Development of Own Funds”, “Development of Risk-Weighted Assets” and “Leverage Ratio”, and (iii) the section “Supplementary Information (Unaudited): Non-GAAP Financial Measures: Regulatory fully loaded measures” on page 439 of our Annual Report 2019.
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When used with respect to future periods, our fully loaded CRR/CRD measures are also forward-looking statements. We cannot predict or quantify the levels of the most directly comparable transitional CRR/CRD measures that would correspond to these fully loaded CRR/CRD measures for future periods. In managing our business with the aim of achieving targets based on fully loaded CRR/CRD measures, the relation between the fully loaded and transitional measures will depend upon, among other things, management action taken in light of future business, economic and other conditions.
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DEUTSCHE BANK AKTIENGESELLSCHAFT
Date: December 10, 2020
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By: /s/ Brigitte Bomm |
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Name: Brigitte Bomm |
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Title:Managing Director |
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By: /s/ Mathias Otto |
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Name: Mathias Otto |
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Title:Managing Director and Senior Counsel |
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Deutsche Bank remains on track with its transformation strategy
Deutsche Bank (XETRA: DBKGn.DE/NYSE: DB) confirms its primary strategic and financial targets for 2020 and 2022, announced in July 2019 when it launched its “Compete to Win” strategy.
At an Investor Deep Dive in Frankfurt today, management will reinforce Deutsche Bank’s commitment to delivering a post-tax return on tangible equity (RoTE) of 8% in 2022 and to returning 5 billion euros of capital to shareholders from 2022. This follows progress on execution in all areas, and strong performance in the bank’s core business which has driven significant improvement in profitability in 2020 to date.
“Since 2018 we have consistently delivered on or ahead of our targets,” said Christian Sewing, Chief Executive Officer of Deutsche Bank. “That remains our ambition. We will maintain our discipline on cost and risk management as we now enter the third phase of our transformation: sustainable revenue growth and profitability. In the first 9 months of 2020 we achieved year-on-year revenue growth of 8% in the Core Bank. This positive momentum has continued into the 4th quarter. We believe we’re on the right track to achieve our return on tangible equity target in 2022.”
Deutsche Bank will provide updates on certain of its 2022 financial targets or plans:
Adjusted costs: 2022 target lowered from 17.0 billion euros to 16.7 billion euros
Deutsche Bank has identified additional cost-saving opportunities. These enable the bank to revise its 2022 target for adjusted costs 1 to 16.7 billion euros, versus an original target of 17.0 billion euros. The bank expects to meet its 2020 adjusted cost 2 target of 19.5 billion euros.
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Issued by Media Relations of Deutsche Bank AG Taunusanlage 12, 60325 Frankfurt am Main Phone +49 (0) 69 910 43800, Fax +49 (0) 69 910 33422 |
Internet:
db.com
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Media Release 1|3
Revenues: outlook broadly unchanged
Deutsche Bank’s revenue plan for 2022 is broadly unchanged, as better-than-expected performance in its core businesses and other measures offset additional interest rate headwinds.
Leverage ratio target updated principally reflecting growth opportunities
Deutsche Bank has adjusted its fully-loaded 2022 leverage ratio target to ~ 4.5%, from ~ 5% previously. The updated guidance principally reflects targeted balance sheet growth to support higher revenues in the Corporate Bank and the Private Bank, and higher than anticipated leverage exposure in the Capital Release Unit in the economic interests of shareholders. The updated leverage ratio target remains comfortably above the bank’s regulatory requirement of 3.75% in 2023.
2020 Financial milestones on track
Deutsche Bank remains on track to deliver on its strategic and financial objectives for 2020:
- The bank reaffirmed its 2020 target of 19.5 billion euros of adjusted costs 2
- Provision for credit losses is expected to be close to the midpoint of the target range of between 35 and 45 basis points of loans, in line with guidance published in April 2020
- The third quarter 2020 leverage ratio of 4.4% is tracking to the bank’s 2020 original goal of 4.5%
- Deutsche Bank’s Common Equity Tier 1 ratio, at 13.3% at the end of the third quarter of 2020, is comfortably above the original threshold of 12.5% during transformation
- Risk Weighted Assets in the Capital Release Unit were 39 billion euros at the end of the third quarter of 2020, versus a year-end target of 38 billion euros
The Investor Deep Dive will take place today, Wednesday, 9 December 2020, starting at 12:00 CET. A detailed agenda is available on the Investor Relations website. This event will be broadcast via internet: www.db.com/ir
1 Adjusted costs excluding transformation charges
2 Adjusted costs excluding transformation charges and expenses eligible for reimbursement related to Prime Finance
Media Release 2|3
For further information please contact:
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Deutsche Bank AG
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Sebastian Kraemer-Bach
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Christian Streckert
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Charlie Olivier
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Investor Relations |
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+49 800 910-8000 (Frankfurt) db.ir@db.com |
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About Deutsche Bank
Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.
Forward-looking statements contain risks
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our net revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 20 March 2020 under the heading “Risk Factors” and in the “Risks and Opportunities” section of our Annual Report. Copies of these documents are readily available upon request or can be downloaded from www.db.com/ir .
Media Release 3|3
