Deutsche Bank : reports on-target delivery and progress on sustainability in 2020

• Deutsche Financial institution confirms outcomes revealed on 4 February with no divergences
• Pre-tax revenue of 1.0 billion euros and web revenue of 624 million euros
• Group web income progress of 4% to 24.0 billion euros
• Price discount goal achieved
• Frequent Fairness Tier 1 (CET1) capital ratio of 13.6%
• Compensation flat at 10.1 billion euros, together with variable compensation up 29% to 1.9 billion euros pushed by monetary efficiency and supply on targets
• Administration Board foregoes one-twelfth of complete compensation

2020 Non-Monetary Report:

• Launched sustainability technique and goal of greater than 200 billion euros ex-DWS in cumulative sustainable financing and ESG funding by finish of 2025
• 46 billion euros of sustainable financing and ESG funding in 2020, considerably above goal threshold of 20 billion euros
• Further 94 billion euros of ESG property managed by DWS, up 34% year-on-year
• Creation of the Sustainability Committee of the Administration Board embeds sustainability governance on the highest degree
• 52 million euros invested into Company Social Duty and Artwork, Tradition and Sports activities actions which reached 3.7 million individuals

2020 Human Assets Report:

• Investing in expertise regardless of COVID-19: employed 717 graduates and chosen 570 apprentices from 22,000 candidates
• Programmes to spice up hiring of Black graduates and senior Black executives
• Variety & Inclusion: 18th successive 100-point rating, named ‘Greatest Place to Work for LGBTQ Equality’ by Human Rights Marketing campaign Company Equality Index
• Employees wellbeing throughout COVID-19: finest Folks Survey outcomes for eight years

‘In 2020, we made nice progress on our transformation right into a sustainably worthwhile financial institution, and had been much more related for our purchasers,’ stated Christian Stitching, Chief Govt Officer. ‘On the identical time, we invested additional in our controls, in our abilities and in our sustainability technique – regardless of an atmosphere of unprecedented challenges.’

Deutsche Financial institution’s (XETRA: DBKGn.DE / NYSE: DB) 2020 audited outcomes, revealed as we speak, affirm supply on all monetary and strategic milestones of its transformation throughout 2020 and no divergences from the financial institution’s unaudited outcomes communicated on the Annual Media Convention on 4 February. Deutsche Financial institution made vital progress on sustainability and maintained its neighborhood engagement through the pandemic in 2020. As well as, the financial institution made additional progress on variety and inclusion, invested in expertise, and guarded workers wellbeing by COVID-19. These are outlined within the Non-Monetary Report and Human Assets Report, additionally revealed as we speak.

ANNUAL REPORT


Profitability, stability sheet power and transformation on the right track

Revenue earlier than tax was 1.0 billion euros in 2020, with revenue after tax of 624 million euros, because the working power of the Core Financial institution greater than offset the impacts of transformation and elevated credit score provisions. Web revenues rose 4% to 24.0 billion euros, whereas noninterest bills had been decreased by 15% to 21.2 billion euros. Adjusted prices ex-transformation costs and reimbursable bills associated to Prime Finance had been 19.5 billion euros for 2020, on the right track and down 9% 12 months on 12 months.

Provision for credit score losses was 1.8 billion euros or 41 foundation factors of loans, near the mid-point of the financial institution’s 2020 steering of between 35 and 45 foundation factors of loans.

Deutsche Financial institution’s CET1 capital ratio was 13.6% on the finish of 2020, primarily unchanged versus the tip of 2019 regardless of the impression of the COVID-19 pandemic.

After six quarters of disciplined execution, 85% of the entire transformation-related results anticipated by the tip of 2022 have already been recognised.

Outlook for 2021: additional progress towards strategic and monetary targets

The Annual Report summarises Deutsche Financial institution’s outlook for 2021. The financial institution reaffirms its 2022 monetary plan, together with its goal for Return on Tangible Fairness of 8%.

In 2021, the financial institution expects revenues to be marginally decrease than in 2020, reflecting an anticipated normalisation of volatility and trade volumes in funding banking after the excessive ranges of 2020. The financial institution foresees progress resuming in 2022 in keeping with steering offered on the Investor Deep Dive in December. The financial institution expects to keep up progress towards its price targets, pushed by the run-rate advantage of current measures and execution of additional measures as deliberate, notably in Infrastructure and the Non-public Financial institution. Provision for credit score losses is predicted to be barely decrease than in 2020 whereas remaining above pre-COVID ranges, and to say no additional to 25-30 foundation factors of loans in 2022.

Deutsche Financial institution expects its CET1 capital ratio to stay above the financial institution’s goal threshold of 12.5% all through 2021, though pending regulatory adjustments are anticipated to impression this ratio by roughly 80 foundation factors within the 12 months. The financial institution reaffirms its dedication to a 2022 leverage ratio of 4.5% on a totally loaded foundation. This ratio is predicted to be barely decrease in 2021 because the non permanent exclusion from this ratio of sure central financial institution balances expires.

Deutsche Financial institution continues to anticipate that from 2022, execution in opposition to monetary targets will allow the distribution of 5 billion euros to shareholders over time, topic to regulatory approvals. As introduced, administration doesn’t plan to suggest a dividend in respect of 2020.

Compensation

Whole compensation awarded to Deutsche Financial institution staff in respect of 2020 was 10.1 billion euros, flat year-on-year. Fastened compensation declined by 6% to 7.5 billion euros, pushed by workforce reductions, and offset by an increase in variable compensation (Group and particular person parts) of 29% to 1.9 billion euros. This year-on-year enhance balanced Deutsche Financial institution’s considerably improved monetary efficiency, supply in opposition to revealed targets and retention of high expertise with the aim of sustaining capital power. Practically half of variable compensation awarded in respect of 2020 shall be paid out in future years, the best proportion in 5 years, and up from 36% in 2019.

The Administration Board, comprising ten members on a full-year equal foundation, obtained complete compensation of fifty.0 million euros for 2020, versus 36.0 million euros in 2019, when the Administration Board comprised eight members on a full-year equal foundation.

Towards the backdrop of the COVID-19 pandemic and its financial impression, the entire compensation of the Administration Board was decreased by a complete of 4.6 million euros. This included a discount within the Group Part and a further discount in complete compensation of 1 twelfth. The overall compensation of the Chairman of the Supervisory Board was additionally decreased by one twelfth in 2020. As well as, many senior executives voluntarily waived compensation equal to a month’s wage.

Different monetary and regulatory experiences

At this time Deutsche Financial institution revealed its 2020 Pillar 3 Report and Annual Monetary Statements and Administration Report beneath German accounting guidelines (HGB). As well as, the Annual Report on Type-20-F shall be made out there as we speak.

NON-FINANCIAL REPORT

Deutsche Financial institution’s 2020 Non-Monetary Report, revealed as we speak, outlines a pivotal 12 months for sustainability. In 2020, sustainable financing and ESG investments had been greater than double goal at 46 billion euros, an vital step towards the financial institution’s goal of greater than 200 billion euros cumulatively by end-2025, excluding ESG property beneath administration in DWS.

2020: a pivotal 12 months for sustainability at Deutsche Financial institution

The Non-Monetary Report outlines Deutsche Financial institution’s dedication to facilitating the transition towards sustainable progress and a low-carbon economic system. All 4 of Deutsche Financial institution’s core companies contributed to this:

• The Company Financial institution offered 6 billion euros in sustainability-linked, environmental and social growth financing
• The Funding Financial institution offered sustainable financing of 25 billion euros, underwriting greater than 16 billion euros in serving to purchasers to lift almost 85 billion euros in sustainable bond devices
• The Non-public Financial institution achieved sustainable financing and ESG investments of 15 billion euros, together with 4 billion euros in loans for energy-efficient properties, and 11 billion euros in ESG property beneath administration by year-end
• As well as, Asset Administration’s ESG property beneath administration rose 34% to 94 billion euros, or 12% of complete property beneath administration, throughout 2020

Additional highlights of 2020 included:

• Launching Deutsche Financial institution’s inaugural Inexperienced Bond, elevating 500 million euros, which was a number of instances oversubscribed by traders
• Creating a Sustainable Finance Framework aligned to the EU Taxonomy for environmental standards and ICMA Social Bond rules for social standards
• Forming the Sustainability Committee of the Administration Board, chaired by CEO Christian Stitching
• Laying the muse for linking senior government compensation to extra sustainability standards from 2021 onwards
• Additional progress on Local weather Threat Administration, supporting the financial institution’s targets of aligning the carbon depth of its mortgage portfolio to the Paris Settlement and its exit from the financing of thermal coal mining by 2025
• Greater than 80% of the financial institution’s personal electrical energy consumption got here from renewables in 2020, on the way in which to its dedication of 100% by 2025
• Persevering with to strengthen our management atmosphere, spending an additional 2 billion euros on this space in 2019 and 2020

Persevering with to assist communities regardless of challenges

Deutsche Financial institution maintained its engagement with communities regardless of the challenges of the pandemic throughout 2020. The financial institution positively impacted a complete of three.7 million individuals through the 12 months, of which 2.4 million had been by its Company Social Duty programmes and 1.3 million by Artwork, Tradition and Sports activities. These efforts had been supported by 52 million euros of investments by Deutsche Financial institution and its foundations.

Some 13,000 workers members engaged in volunteering actions through the 12 months, and eight.8 million euros was raised by worker matched giving programmes and fundraising. Regardless of the constraints of the COVID-19 pandemic, Deutsche Financial institution’s key programmes got here near or exceeded their multi-year targets. The Born to Be youth engagement programme, masking 123 training tasks in 28 nations, has reached 4.93 million younger individuals in complete since 2014, inside 1% of its 5 million goal. The Made for Good programme, lively in 11 nations, has supported over 23,000 social ventures since 2016, forward of its goal of 20,000. Deutsche Financial institution’s neighborhood initiatives have made a optimistic impression on the lives of greater than 4.2 million individuals since 2015.

The charity sector confronted vital challenges through the pandemic. Deutsche Financial institution and its staff responded with a COVID-19 Aid Marketing campaign. After two months, the financial institution, supported by greater than 7,000 staff, raised 2.5 million euros for 40 charities in 35 nations worldwide. This enabled charities to assist round 650,000 deprived individuals with meals, shelter and different important help.

HUMAN RESSOURCES REPORT


Improved Dedication and Enablement regardless of continued workforce discount

On a full-time equal foundation, the variety of staff decreased by 2,938 to 84,659 throughout 2020. The exit from equities buying and selling contributed to this growth, as did the sale of Postbank Techniques which decreased the workforce by over 1,300 full-time equivalents. Administration continued to insource business-critical roles through the 12 months, which led to the hiring of workers beforehand employed by exterior service suppliers.

With over 60,000 Deutsche Financial institution workers working remotely on account of lockdown measures throughout 2020, the financial institution devoted vital time and focus into caring for the well being and wellbeing of workers by this difficult interval. It registered its strongest Folks Survey leads to eight years, with responses from greater than 50,000 workers members. Employees reported year-on-year enhancements throughout all 55 classes. Dedication ranges rose to 69%, versus 58% in 2019, and enablement rose to 76%, its best-ever degree, up by 10 proportion factors versus the prior 12 months.

Continued investments in early-stage expertise

Deutsche Financial institution delivered full digital internship and graduate orientation and coaching programmes for the primary time because of the COVID-19 pandemic. Regardless of a extra centered enterprise perimeter as a part of transformation, the financial institution however employed 717 graduates in 2020, in comparison with 955 in 2019.

In Germany, the financial institution employed 570 new apprentices, chosen from some 22,000 candidates, throughout 2020. 42 p.c of the financial institution’s complete apprentices are ladies.

A dedication to gender equality, variety and inclusion

In 2020, the proportion of girls Managing Administrators rose barely to 18.4% (2019: 18.3%), whereas the proportion of feminine Administrators remained steady at 25.1%. Deutsche Financial institution has elevated the proportion of girls at Managing Director degree in yearly since 2010, when the financial institution first revealed voluntary world gender variety targets, though additional progress is required to achieve the financial institution’s targets at Managing Director and Director degree. The proportion of girls on the financial institution remained steady at 46.4%.

Deutsche Financial institution operates in 59 nations and had staff of 151 totally different nationalities as on the finish of 2020. In 2020, Deutsche Financial institution was awarded the utmost rating of 100 within the Human Rights Marketing campaign’s annual Company Equality Index for the eighteenth consecutive 12 months, and was designated as a ‘Greatest Place to Work for LGBTQ Equality’ by that physique. In December 2020, the financial institution introduced aspirational targets to extend the variety of Black colleagues on the financial institution’s two highest company title ranges within the US by 50% over the subsequent three years and to extend the proportion of Black expertise in Deutsche Financial institution’s graduate programmes to 10% by 2025.

Remaining and audited outcomes at a look

Availability

All experiences will be downloaded from https://www.db.com/ir/en/annual-reports.htm. The Annual Report on Type 20-F, which shall be submitted to the US Securities and Trade Fee as we speak, may also be made out there following submission (English solely) on the web site: https://www.db.com/ir/en/sec-filings-for-financial-results.htm.

Definitions

Non-Monetary Report

This units out the financial institution’s technique, commitments and achievements in respect of sustainability, together with environmental, social and governance (ESG)-related subjects. The report additionally covers public coverage and regulation, efforts to fight monetary crime, employee-related issues together with funding in expertise, variety and inclusion, expertise and innovation, the financial institution’s engagement with purchasers, staff and communities through the COVID-19 pandemic, and different non-financial facets of the financial institution’s work.

Human Assets Report

Deutsche Financial institution’s Human Assets Report incorporates data on Deutsche Financial institution’s strategic Human Assets priorities and initiatives throughout 2020, offers key worker statistics and provides particulars on key metrics and people-related actions.

For additional data please contact:

Deutsche Financial institution AG

Media Relations

Christian Streckert Charlie Olivier

Telephone: +49 69 910 38079 Telephone: +44(207)54-57866

Electronic mail: christian.streckert@db.com Electronic mail: charlie.olivier@db.com

Investor Relations

+49 800 910-8000 (Frankfurt)

db.ir@db.com

About Deutsche Financial institution

Deutsche Financial institution offers industrial and funding banking, retail banking, transaction banking and asset and wealth administration services and products to firms, governments, institutional traders, small and medium-sized companies, and personal people. Deutsche Financial institution is Germany’s main financial institution, with a robust place in Europe and a major presence within the Americas and Asia Pacific.

Ahead-looking statements include dangers

This launch incorporates forward-looking statements. Ahead-looking statements are statements that aren’t historic details; they embody statements about our beliefs and expectations and the assumptions underlying them. These statements are based mostly on plans, estimates and projections as they’re at the moment out there to the administration of Deutsche Financial institution. Ahead-looking statements due to this fact converse solely as of the date they’re made, and we undertake no obligation to replace publicly any of them in mild of recent data or future occasions.

By their very nature, forward-looking statements contain dangers and uncertainties. Plenty of vital elements might due to this fact trigger precise outcomes to vary materially from these contained in any forward-looking assertion. Such elements embody the situations within the monetary markets in Germany, in Europe, in america and elsewhere from which we derive a considerable portion of our revenues and by which we maintain a considerable portion of our property, the event of asset costs and market volatility, potential defaults of debtors or buying and selling counterparties, the implementation of our strategic initiatives, the reliability of our danger administration insurance policies, procedures and strategies, and different dangers referenced in our filings with the U.S. Securities and Trade Fee. Such elements are described intimately in our SEC Type 20-F of 12 March 2021 beneath the heading ‘Threat Elements’. Copies of this doc are available upon request or will be downloaded from www.db.com/ir.

Use of non-GAAP monetary measures

This report and different paperwork we have now revealed or might publish include non-GAAP monetary measures. Non-GAAP monetary measures are measures of our historic or future efficiency, monetary place or money flows that include changes that exclude or embody quantities which might be included or excluded, because the case could also be, from essentially the most instantly comparable measure calculated and introduced in accordance with IFRS in our finan­cial statements.