DB 6-K
Deutsche Bank Aktiengesellschaft (DB)
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 June 2023
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 ☐
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Explanatory note
On June 30, 2023, we published a document entitled ”Key updates communicated during Q2 2023”, which is set forth as Exhibit 99.1 hereto. Such Exhibit 99.1 hereof and this Report on Form 6-K are hereby incorporated by reference into our Registration Statement on Form F-3, File No. 333-258403.
Exhibits
Exhibit 99.1 Key updates communicated during Q2 2023, June 30, 2023.
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 2022 Annual Report on Form 20-F filed with the SEC, on pages 12 through 54 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 document 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 its 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 |
|---|---|
| Profit (loss) before tax based on pro rata bank levies | Profit (loss) before tax |
| Profit (loss) attributable to Deutsche Bank shareholders, Profit (loss) attributable to Deutsche Bank shareholders and additional equity components, Profit (loss) attributable to Deutsche Bank shareholders based on pro rata bank levies | Profit (loss) |
| Revenues excluding specific items | Net revenues |
| Adjusted costs, Adjusted costs excluding bank levies, Adjusted costs based on pro rata bank levies, Noninterest expenses based on pro rata bank levies | 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 AT 1 coupon), Post-tax return on average tangible shareholders’ equity (based on Profit (loss) attributable to Deutsche Bank shareholders after AT 1 coupon), Post-tax return on average shareholders’ equity based on pro rata bank levies, Post-tax return on average tangible shareholders’ equity based on pro rata bank levies | Post-tax return on total shareholders’ equity |
| Tangible book value per basic share outstanding, Book value per basic share outstanding | Book value per share outstanding |
For descriptions of these non-GAAP financial measures and the adjustments made to the most directly comparable financial measures under IFRS, please refer to (i) the section “Non-GAAP financial measures” of Exhibit 99.1 of our Report on Form 6-K dated April 27, 2023 and (ii) the section “Supplementary Information (Unaudited): Non-GAAP Financial Measures” on pages 550 through 558 of our 2022 Annual Report on Form 20-F.
When used with respect to future periods, non-GAAP financial measures we use 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.
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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: July 3, 2023
| By: | <br> _/s/ Andrea Schriber____________<br> |
|---|---|
| Name: | Andrea Schriber |
| Title: | Managing Director |
| By: | <br> _/s/ Mathias Otto ______________<br> |
| --- | --- |
| Name: | Mathias Otto |
| Title: | Managing Director and Senior Counsel |
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Report
Exhibit 99.1
Key updates communicated during Q2 2023
30 June 2023
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Key updates communicated during Q2 2023
Costs:
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James von Moltke reiterated at the Q1 2023 results communication that Deutsche Bank expects to keep its noninterest expenses for FY 2023 to FY 2025 broadly flat to FY 2022 ; he reconfirmed this guidance at the Goldman Sachs European Financials Conference and noted that this would be before the impact of the acquisition of Numis Corporation Plc announced on April 28, 2023
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With Q1 2023 results, Deutsche Bank also an nounced additional measures to reinforce the cost agenda across the bank, including centralizing the responsibility for costs in the Chief Operating Officer role, executing a reduction in force of senior staff in non-client facing functions, limiting new hires and streamlining the bank’s mortgage platform ; these cost reduction measures are expected to lead to a restructuring and severance provision of approximately € 500m in FY 2023, higher than initially planned, which is included in the guidance for noninterest expenses for FY 2023
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Looking at the quarterly development, at the Q1 2023 results James von Moltke confirmed that the expected run-rate for adjusted costs excluding bank levies is about € 1.6bn to € 1.65bn per month, which produces around € 4.9bn of adjusted costs excluding bank levies per quarter; this was reiterated by James von Moltke at the Goldman Sachs European Financials Conference, though he noted that FX effects have pushed up the monthly run-rate closer to the upper end of this range
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With regard to total noninterest expenses, James von Moltke also noted that for Q2 2023 , Deutsche Bank expects to incur non-operating expenses in a range of € 600-700m , of which restructuring and severance would comprise around € 250-300m with the balance reflecting a quarter of unusually high litigation charges
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At the Q1 2023 results, Christian Sewing outlined additional efficiency measures to accelerate the execution of Deutsche Bank’s strategic agenda for 2025; these measures include the strategic realignment and future proofing the bank’s workforce, streamlining the mortgage platform, optimizing the retail distribution network and improving operations and process automation ; the measures are expected to deliver incremental operational efficiencies of € 500m above and beyond the € 2bn efficiencies announced with the Investor Deep Dive in 2022
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Revenues:
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At the Q1 2023 results, James von Moltke reiterated that Deutsche Bank anticipates revenues for FY 2023 around the mid-point of a range between € 28bn to € 29bn , with Christian Sewing adding details for the businesses:
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The Corporate Bank is expected to deliver revenues well above € 7bn for the year and James von Moltke noted that Q1 results are believed to have been the peak for interest revenues in the Corporate Bank ; at the dbAccess German Swiss Austrian Conference , David Lynne said that the Corporate Bank aims to counter an expected decrease in interest revenues through a combination of business volume growth, fee income, management of liabilities and interest rate risk, and the restructuring of hedges
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The Private Bank is seen as stable with an expected revenue number of well above € 9bn for FY 2023 , benefitting from the improved interest rate environment
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In Asset Management revenues of € 2.5bn are seen as achievable
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With regard to the Investment Bank, the Earnings Report as of March 31, 2023 states that revenues for FY 2023 are expected to be essentially flat compared to the prior year
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In an interview with Bloomberg on June 22, 2023, Christian Sewing noted that he sees good momentum in all businesses and he expects Group revenues for Q2 2023 to be higher than in the prior-year quarter ; James von Moltke gave further details about revenue expectations for Q2 2023 at the Goldman Sachs European Financials Conference :
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Investment Bank revenues are expected to be down 15% or slightly more year on year , but within the stated range of € 2.0 -2.5bn of revenues per quarter; he noted for the subdivisional split:
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Looking at the stable businesses, Corporate Bank revenues are expected to be around € 1.9bn, while Private Bank revenues are anticipated to be well over € 2bn
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Provision for credit losses:
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At the Q1 2023 results, James von Moltke reiterated that Deutsche Bank expects the provision for credit losses for FY 2023 to be in a range between 25 to 30 basis points of average loans
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Capital and capital distribution:
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At the Q1 2023 results, Christian Sewing reconfirmed Deutsche Bank’s commitment to its capital distribution plans as laid out at the Investor Deep Dive 2022 and announced that the bank has initiated the dialogue with supervisors about share buybacks ; he indicated that he remains confident that a buyback will take place in H2 2023
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Following the Annual General Meeting on May 17, 2023, Deutsche Bank paid a cash dividend per share of 30 euro cents
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James von Moltke added at the Q1 2023 results that , mirroring the annual increase in dividend per share, a 50% increase in the amount of the share buyback relative to the share buyback conducted in FY 2022 would be sought
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James von Moltke also stated that Deutsche Bank now has more clarity on the outcome of model reviews , which is now expected to be in a range between 40 and 60 basis points of CET1 ratio impact
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As part of the accelerated strategic agenda, Christian Sewing announced with the Q1 2023 results that Deutsche Bank aims to free up € 15-20bn of risk-weighted assets by 2025 from a reduction in certain sub-hurdle lending portfolios, greater utilization of securitization and hedging optimization
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Liquidity:
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At the Q1 2023 results, James von Moltke noted that over time as market conditions improve Deutsche Bank would look to prudently steer its liquidity coverage ratio towards the bank’s 130% target
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2025 targets:
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At the Annual General Meeting and at the Deutsche Bank Global Financial Institutions Conference, Christian Sewing stated that he is confident that the bank can overachieve its growth targets set for FY 2025
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Specifically, he mentioned Deutsche Bank is expected to convincingly exceed revenues of € 30bn , and a 10% return on tangible equity is at the lower end of what can be achieved
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Other:
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On June 29, 2023, the rating agency DBRS Morningstar upgraded all of Deutsche Bank’s long-term ratings by one notch; the long-term issuer rating and long-term deposit rating are upgraded to ‘A’, while the long-term senior non-preferred debt rating and the long-term critical obligations rating are upgraded to ‘A \(low\)’ and ‘AA \(low\)’ , respectively ; in all cases, DBRS applies a stable outlook
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On April 28, 2023 , Deutsche Bank announced that it has reached an agreement on the terms of a recommended all-cash offer for the acquisition of Numis Corporation Plc
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The transaction is expected to allow Deutsche Bank to accelerate its Global Hausbank strategy by unlocking a much deeper engagement with the corporate client segment in the United
Kingdom The transaction is expected to complete during Q4 2023, subject to certain conditions
On June 21, 2023, the Board of Numis Corporation Plc announced that the Court Meeting to consider the Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 and the General Meeting to consider the Special Resolution to implement the above-mentioned scheme relating to the transaction were each held and all resolutions were approved by the requisite majorities
Further information can be found on the Deutsche Bank Investor Relations website
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On April 26, 2023, Deutsche Bank announced changes to its Management Board to further sharpen its focus on accelerating the bank’s strategy execution ;
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Karl von Rohr will leave the Management Board after his contract expires
on October 31, 2023 ; Christiana Riley left the bank on the day following the Annual General Meeting on May 17, 2023 The new, smaller Management Board will consist of nine people
Claudio de Sanctis will join the Management Board and assume responsibility for the Private Bank
James von Moltke will additionally assume responsibility for the Asset Management division
Stefan Simon will additionally take over responsibility for the Americas as of May 18, 2023
Alexander von zur Mühlen will assume regional responsibilities for Germany, Europe, the Middle East and Africa (EMEA, ex UK and Ireland) and the Asia-Pacific region
Rebecca Short will take on an expanded Chief Operating Officer (COO) role with primary responsibility for costs across the group; to strengthen the link between performance and outcomes across the bank, Human Resources and Global Real Estate will also fall under the COO’s remit
The roles of Fabrizio Campelli (Corporate Bank and Investment Bank), Bernd Leukert (Technology, Data and Innovation) and Olivier Vigneron (Chief Risk Officer) remain unchanged
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On June 20, 2023, Deutsche Bank announced that Karl von Rohr will hand over his responsibilities to his successors on July 1, 2023, but remain a member of the Management Board until his contract expires
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Issuances:
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Deutsche Bank has already executed 69% \(€ 9.3bn\) of its 2023 funding plan \(€ 12-15bn\)
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On May 10, 2023, the bank priced a € 1.0bn public tender offer for six series of its senior non-preferred bonds
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Select issuance highlights below:
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May 10, 2023: € 1bn dual-tranche with 3.5y and 10y tenor in covered bonds \(Pfandbriefe\)
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Next significant events:
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July 26 , 2023 – Q2 2023 results – Analyst Conference Call
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July 28 , 2023 – Q2 2023 results – Fixed Income Call
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Disclaimer
This presentation 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 SEC Form 20-F of March 17, 2023 under the heading “Risk Factors.” Copies of this document are readily available upon request or can be downloaded from investor-relations.db.com.
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