Deutsche Bank Aktiengesellschaft 6-K, filed Mar 11, 2022
Deutsche Bank Aktiengesellschaft (DB)
About this 6-K
Deutsche Bank Aktiengesellschaft filed this 6-K on March 11, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report
of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934
For the month of March 2022
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
On March 10, 2022, Deutsche Bank AG held its Investor Deep Dive conference, in connection with which it published a Media Release and its Chief Executive Officer and Chief Financial Officer delivered presentations, which are attached as exhibits hereto.
For non-U.S. purposes, Deutsche Bank AG publishes its results prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union, including, from 2020, application of portfolio fair value hedge accounting for non-maturing deposits and fixed rate mortgages with pre-payment options (“EU IFRS”, using the “EU carve-out”). Fair value hedge accounting under the EU carve-out is employed to minimize the accounting exposure to both positive and negative moves in interest rates in each tenor bucket thereby reducing the volatility of reported revenue from Treasury activities. The exhibits hereto are prepared using EU IFRS.
For U.S. reporting purposes, Deutsche Bank AG also publishes results, including its SEC Annual Report on Form 20-F, in accordance with IFRS as issued by the International Accounting Standards Board (IASB), which does not permit use of the EU carve-out (“IASB IFRS”), but which is otherwise the same as EU IFRS. Our Report on Form 6-K dated January 27, 2022 contains a Media Release announcing our preliminary results for the quarter and year ended December 31, 2021 under IASB IFRS as Exhibit 99.5 thereto and a Financial Data Supplement providing details of the preliminary results under IASB IFRS as Exhibit 99.6 thereto. Our 2021 Annual Report on Form 20-F is scheduled to be published on March 11, 2022.
Application of the EU carve-out version of IAS 39 has its impact via the total net revenues of the Corporate & Other (C&O) segment, and thus on the Group and Core Bank as well, but not on the other segments. For the financial year ended December 31, 2021, the application of the EU carve-out version of IAS 39 had a negative impact of € 128 million on total net revenues and profit (loss) before tax of each of the Group, the Core Bank and the C&O segment. For the financial year ended December 31, 2020, the application of the EU carve-out had a positive impact of € 18 million on total net revenues and profit (loss) before tax of each of the Group, the Core Bank and the C&O segment.
For the financial year ended December 31, 2021, the application of the EU carve-out version of IAS 39 had a negative impact of € 85 million on profit (loss) of the Group. For the financial year ended December 31, 2020, the application of the EU carve-out had a positive impact of € 12 million on profit (loss) of the Group.
The Group’s regulatory capital and ratios thereof are also reported on the basis of the EU carve-out version of IAS 39. The impact on profit also impacts the calculation of the CET1 capital ratio. Application of the EU carve-out had a negative impact on the CET1 capital ratio of about 2 basis points for the financial year ended December 31, 2021 and a positive impact of less than 1 basis point for the financial year ended December 31, 2020.
This Report on Form 6-K and Exhibit 99.1 hereto are hereby incorporated by reference into Registration Statement No. 333-258403 of Deutsche Bank AG. Exhibits 99.2, 99.3 and 99.4 are not so incorporated by reference.
Exhibits
Exhibit 99.1: Deutsche Bank AG’s Media Release, dated March 10, 2022, entitled “Deutsche Bank raises its return on tangible equity target to above 10 percent” (EU IFRS).
Exhibit 99.2: Presentation entitled “Compete to Win: Mark-to-market and our path to 2022 targets”, given by Christian Sewing, Chief Executive Officer, and James von Moltke, Chief Financial Officer, at Deutsche Bank AG’s Investor Deep Dive on March 10, 2022 (EU IFRS).
Exhibit 99.3: Presentation entitled “Deutsche Bank’s strategic evolution to 2025”, given by Christian Sewing, Chief Executive Officer, at Deutsche Bank AG’s Investor Deep Dive on March 10, 2022 (EU IFRS).
Exhibit 99.4: Presentation entitled “Financial objectives to 2025”, given by James von Moltke, Chief Financial Officer, at Deutsche Bank AG’s Investor Deep Dive on March 10, 2022 (EU IFRS).
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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.
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 Annual Report on Form 20-F 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:
| Non-GAAP Financial Measure | Most Directly Comparable IFRS Financial Measure | |
| Adjusted profit (loss) before tax, Profit (loss) attributable to Deutsche Bank shareholders, Profit (loss) attributable to Deutsche Bank shareholders after AT1 coupon | Profit (loss) before tax | |
| Revenues excluding specific items, Revenues on a currency-adjusted basis, Revenues adjusted for foregone revenues due to the BGH ruling | Net revenues | |
| Adjusted costs, Adjusted costs excluding transformation charges, Adjusted costs excluding transformation charges and expenses eligible for reimbursement related to Prime Finance | Noninterest expenses | |
| Net assets (adjusted) | Total assets | |
| Tangible shareholders’ equity, Average tangible shareholders’ equity, Tangible book value, Average tangible book value | Total shareholders’ equity (book value) | |
| Post-tax return on average shareholders’ equity (based on Profit (loss) attributable to Deutsche Bank shareholders after AT1 coupon), Adjusted post-tax return on equity measures | Post-tax return on average shareholders’ equity | |
| Post-tax return on average tangible shareholders’ equity | Post-tax return on average shareholders’ equity | |
| Tangible book value per basic share outstanding, Book value per basic share outstanding | Book value per share outstanding |
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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 3, 7 through 13 and 17 through 30 of Exhibits 99.4 (EU IFRS) and 99.6 (IASB IFRS) to our Report on Form 6-K dated January 27, 2022, and (ii) pages 39 to 42 of Exhibit 99.2 hereto.
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 document under the regulation on prudential requirements for credit institutions and investment firms (“CRR”) and the Capital Requirements Directive (“CRD”), including recent amendments. Unless otherwise noted, our CRR/CRD solvency measures set forth in this document are calculated under the CRR/CRD as currently applicable. We present in this report certain figures based on the CRR definition of own fund instruments applicable for Additional Tier 1 (AT1) capital and Tier 2 (T2) capital and figures based thereon, including Tier 1, Total Capital and the Leverage Ratio, on a “fully loaded” basis. We calculate such “fully loaded” figures excluding the transitional (or “phase-in”) arrangements for own fund instruments as provided in the currently applicable CRR/CRD. Our CET 1 and RWA figures include the transitional impacts from the IFRS add-back also in the “fully-loaded” figures given it is an immaterial difference. 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, 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 pages 15, 16, 28, 29 and 30 of Exhibits 99.4 (EU IFRS) and 99.6 (IASB IFRS) to our Report on Form 6-K dated January 27, 2022.
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. We manage our business with the aim of achieving targets based on fully loaded CRR/CRD measures. Accordingly, the relation between the fully loaded and transitional measures may be variable and 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: March 10, 2022
| By: | /s/ Brigitte Bomm |
| Name: | Brigitte Bomm |
| Title: | Managing Director |
| By: | /s/ Mathias Otto |
| Name: | Mathias Otto |
| Title: | Managing Director and Senior Counsel |
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Deutsche Bank Aktiengesellschaft 6-K
Exhibit 99.1
Deutsche Bank
Media Release
| Frankfurt am Main | 10 March 2022 |
Deutsche Bank raises its return on tangible equity target to above 10 percent
Strategy includes increased capital distributions and investments into growth
Deutsche Bank (XETRA: DBKGn.DB / NYSE: DB) announces an evolution of its strategy focused on delivering sustainable growth and higher returns at an Investor Deep Dive hosted today. By 2025, the bank aims to increase returns on average tangible equity (RoTE)1 to above 10% and organically generate significant additional tangible equity.
This is expected to be achieved through a combination of revenue growth, further efficiencies and self-funded investments. Subject to successful implementation, this strategy would enable anticipated capital distributions to shareholders of around € 8 billion in respect of the financial years 2021-2025 and substantial re-investment into Deutsche Bank’s four leading businesses.
Deutsche Bank’s financial targets for 2025 are:
| · | Post-tax RoTE1 of greater than 10%, with disciplined resource allocation driving profitability; |
| · | Compound annual revenue growth of 3.5-4.5% from 2021, with implied net revenues of approximately € 30 billion in 2025; |
| · | A cost/income ratio below 62.5%, reflecting revenue growth with further cost discipline, supported by ongoing efficiency initiatives enabling self-funded reinvestment. |
The Global Hausbank: a strong platform for sustainable growth
Deutsche Bank’s sustainable growth strategy builds on the fundamental transformation of the bank since 2019. The core of this strategy is to further expand Deutsche Bank’s position as the 'Global Hausbank’. As the market leader in one of the world’s strongest economies with a comprehensive suite of products, Deutsche Bank aims to become the first point of contact in all financial matters for an even larger number of clients and to further strengthen cross-divisional collaboration.
| Issued by the media relations department 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/news Email: db.media@db.com |
Media Release 1 | 4
”Over the past three years, we have built strong foundations for a resilient and sustainably profitable Deutsche Bank”, Christian Sewing, Chief Executive Officer, said. “Our strategy is now about shifting to sustainable growth and increased distributions to our shareholders. Our bank is well placed to help clients navigate through geopolitical and macroeconomic shifts, including the current uncertainties. And we are strongly positioned to help clients accelerate their transition to a more sustainable and digitized economy.”
Capital plan through 2025: supporting growth and returns to shareholders
Deutsche Bank’s capital plan is based on maintaining a Common Equity Tier 1 (CET1) capital ratio of approximately 13% in 2025, subject to a minimum threshold of 200 basis points above the expected Maximum Distributable Amount threshold of approximately 11%. The plan includes tangible equity retention to support business growth and implementation of the first elements of the expected Basel III regulatory capital changes effective January 1, 2025.
The Management Board announced its intention to reach a total payout ratio of 50% of net income attributable to shareholders in 2025 and thereafter.
Completing transformation: a positive start to 2022
The current geopolitical and macroeconomic environment creates uncertainties whose impact cannot yet be fully assessed. Nevertheless, performance in January and February was ahead of the comparable period last year across key metrics as management continues to work toward delivery of its financial and transformation objectives for 2022.
Group highlights2 for the year to date as of 28 February, including a two-month pro rata (two-twelfths) share of Deutsche Bank’s annual bank levy in both 2022 (plan) and 2021, include:
| · | Post-tax return on average shareholders’ equity of 10.6%, versus 8.6% in the year to 28 February 2021 |
| · | Post-tax RoTE1 of 11.8%, up from 9.7% in the year to 28 February 2021 and ahead of the 2022 target of 8% |
| · | Core Bank post-tax RoTE1 of 13.8%, up from 12.1% in the same period of 2021 and compared to a 2022 target of above 9% |
| · | Cost/income ratio of 64.1%, down from 68.0% in the same period of 2021 and below the full-year 2022 goal of 70% |
| · | CET 1 ratio of around 13.2%, well above the bank’s 2022 goal of above 12.5% |
Deutsche Bank aims to reach its 2022 goals through a combination of revenue growth, further reductions in adjusted costs ex-transformation charges1, and the substantial elimination of transformation-related effects1, 97% of which were recognised by the end of 2021.
“For the full year 2022, we continue to expect to deliver a post-tax return on tangible equity of 8 percent”, said James von Moltke, Chief Financial Officer. “We have had a good start to the year across our businesses. While the war in Ukraine creates increased uncertainty in the market environment, our exposures to Russia are contained and well controlled.”
Media Release 2 | 4
Building on progress of transformation since 2019
Deutsche Bank’s roadmap for 2025 is based on the progress of its transformation program launched in 2019. This included exiting non-strategic activities, refocusing the core businesses, reducing costs, investment in technology and controls and effective management of capital. Achievements to the end of 2021 have included:
| · | Profit before tax of € 3.4 billion, versus € 1.3 billion in 2018 |
| · | Business volume growth and share gains across core businesses, with revenues of € 25.4 billion in 2021, up 6% year on year |
| · | Reductions of € 3.6 billion in adjusted costs ex-transformation charges and reimbursable Prime Finance-related expenses1 since 2018 |
| · | Capital Release Unit leverage exposure down 86% and risk weighted assets down 61% since year end 2018, while reducing the cost burden from legacy assets by € 2.2 billion |
| · | The self-financing of transformation, as organic capital generation and accretion from non-strategic asset reduction largely offset transformation-related costs and regulatory inflation |
| · | Strong growth in sustainable financing and investment, which reached € 157 billion by the end of 2021, and bringing forward the original 2025 target, of over € 200 billion in Environmental, Social and Governance (ESG) financing and investment ex-DWS, to year end 2022 |
Deutsche Bank will host an Investor Deep Dive starting at 13:00 CET today. Christian Sewing, Chief Executive Officer, and James von Moltke, Chief Financial Officer, will present a review of the bank’s current transformation programme and discuss Deutsche Bank’s strategy and financial objectives through 2025. The materials will be available on investor-relations.db.com/IDD2022.
1 For a description of this and other non-GAAP financial measures, see ‘Use of non-GAAP financial measures’ on pp 17-25 of the fourth quarter 2021 Financial Data Supplement
2 Preliminary and unaudited
For further information please contact:
Deutsche Bank AG
Media Relations
Sebastian Kraemer-Bach
Christian Streckert
Phone: +49 69 910 43330
Phone: +49 69 910 38079
Email: sebastian.kraemer-bach@db.com
Email: christian.streckert@db.com
Charlie Olivier
Phone: +44 20 7545 7866
Email: charlie.olivier@db.com
Investor Relations
+49 800 910-8000
db.ir@db.com
Media Release 3 | 4
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.
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 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 latest SEC Form 20-F under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.
Media Release 4 | 4
Deutsche Bank Aktiengesellschaft 6-K
Exhibit 99.2
Deutsche Bank Aktiengesellschaft 6-K
Exhibit 99.3
Deutsche Bank Aktiengesellschaft 6-K
Exhibit 99.4
