Christian Sewing, Chief Executive Officer, said: “Our new strategy is gaining
traction. Stabilising revenues in the second half of 2019 and our consistent cost
discipline both contributed to better operating performance than in 2018. Our
client business is developing well, right across the bank. With our strong capital
position and a Common Equity Tier 1 capital ratio of 13.6%, we’re very confident
we can finance our transformation with our own resources and return to growth. "
2019 net loss entirely driven by transformation-related effects
• Pre-tax loss of 2.6 billion euros includes 3.0 billion euros in transformation
charges1, goodwill impairments and restructuring and severance expenses
• Net loss of 5.3 billion euros additionally includes transformation-related deferred
tax asset valuation adjustments of 2.8 billion euros which do not significantly
impact capital
• 70% percent of anticipated cumulative transformation-related effects2 already
recognised
• Common Equity Tier 1 ratio of 13.6%, up from 13.4% in the third quarter of 2019,
after ahead-of-target risk weighted asset reduction by the Capital Release Unit
Core Bank (ongoing core businesses): stabilising and gaining momentum in 2019
• Revenues down 2% on a reported basis, stable excluding specific revenue items3
• Reported pre-tax profit of 543 million euros; adjusted pre-tax profit4 of 2.8 billion
euros, excluding specific revenue items, transformation charges, goodwill
impairments and restructuring and severance expenses, up 7% vs. 2018
Fourth-quarter results underline further progress on transformation
• Pre-tax loss of 1.3 billion euros includes 1.1 billion euros in transformation charges
and restructuring and severance expenses.
• 8th successive year-on-year reduction in quarterly adjusted costs excluding
transformation charges and bank levies
• Core Bank: loss before tax of 437 million euros; profit of 465 million euros
excluding specific revenue items, transformation charges as well as
restructuring and severance expenses
• Capital Release Unit: risk weighted asset reduction from 56 billion euros to 46
billion euros during quarter, better than target by 6 billion euros; pre-tax loss of
856 million euros, in line with expectations
Cost reductions on track
• Noninterest expenses of 25.1 billion euros in 2019 including transformation
charges of 1.1 billion euros, goodwill impairments of 1.0 billion euros as well as
restructuring and severance expenses of 805 million euros
• Full-year adjusted costs5
in line with target, at 21.5 billion euros excluding
transformation charges and fourth-quarter expenses associated with the bank’s
Prime Finance platform being transferred to BNP Paribas6
• Group headcount reduced to 87,597 full-time equivalents, in line with target, down
by over 4,100 in 2019
Results reflect transformation effects and growth in Core Bank adjusted profit
Deutsche Bank (XETRA: DBKGn.DB / NYSE: DB) today announced delivery on all
major elements of its transformation strategy planned for 2019. Results were in
line with, or ahead of, all 2019 financial targets.
Deutsche Bank’s full-year net loss of 5.3 billion euros was entirely driven by
transformation-related effects. As a result of progress on its transformation
strategy announced on July 7th, 2019, Deutsche Bank reported a pre-tax loss of
2.6 billion euros in 2019 after absorbing transformation charges of 1.1 billion
euros, goodwill impairments of 1.0 billion euros and restructuring and severance
expenses of 805 million euros. The bank’s full-year net loss additionally included
transformation-related deferred tax asset valuation adjustments of 2.8 billion
euros. All these transformation-related effects were broadly in line with
projections. As at the end of 2019, Deutsche Bank had recognised 70% of the
anticipated cumulative costs to achieve its transformation strategy between 2019
and 2022.
In the fourth quarter of 2019, Deutsche Bank reported a pre-tax loss of 1.3 billion
euros, including transformation charges of 608 million euros as well as
restructuring and severance expenses of 473 million euros. A net loss of 1.5 billion
euros reflects the aforementioned effects and transformation-related deferred tax
asset valuation adjustments of approximately 400 million euros.
Core Bank: stabilising and building momentum
The Core Bank, which excludes the Capital Release Unit, reported a pre-tax profit
of 543 million euros in 2019. Adjusting for transformation charges of 635 million
euros, goodwill impairments of 1.0 billion euros, restructuring and severance
expenses of 649 million euros and specific revenue items of 108 million euros, pretax profit in the Core Bank would have been 2.8 billion euros, up 7% versus 2018
similarly adjusted.
Release 3 | 15
Core Bank revenues were 23.0 billion euros, down 2% year-on-year. Excluding
specific revenue items, revenues were stable despite a more challenging interest
rate environment and uncertainties in the global economic outlook which
intensified during 2019.
In the fourth quarter the Core Bank reported a pre-tax loss of 437 million euros.
Adjusting for transformation charges, restructuring and severance expenses and
specific revenue items, pre-tax profit would have been 465 million euros, up from a
profit before tax of 78 million euros in the prior year quarter. Fourth-quarter
revenues were 5.5 billion euros, up 5% year-on-year, or 8% adjusted for specific
revenue items.
Capital Release Unit: costs in line with expectations, deleveraging ahead of target
The Capital Release Unit reported a pre-tax loss of 856 million euros in the fourth
quarter and a full-year pre-tax loss of 3.2 billion euros, in line with expectations.
This reflects both residual expenses and the non-recurrence of revenues
associated with discontinued business activities. In addition, revenues in the third
and fourth quarters were impacted by hedging and de-risking costs relating to
reductions in leverage exposures and risk weighted assets which were better than
plan as at year-end 2019.
Delivering on targets: capital strength
The Common Equity Tier 1 (CET1) capital ratio improved to 13.6% during the
fourth quarter, comfortably meeting recent guidance of above 13% for year-end
2019.
Deutsche Bank reduced risk weighted assets (RWAs) by 18 billion euros on an FXneutral basis to 324 billion euros during the quarter. This contributed a positive
impact of 73 basis points on Deutsche Bank’s CET1 ratio, which more than offset
the negative impact on this ratio arising from reduced capital of 47 basis points,
principally relating to the bank’s fourth-quarter net loss.
The Capital Release Unit reduced RWAs by 10 billion euros to 46 billion euros
during the fourth quarter, down from 72 billion euros at the end of 2018, a
reduction of 36%. This was 6 billion euros better than the Unit’s year-end target
for RWAs of 52 billion euros.
Deutsche Bank reaffirmed its confidence in meeting its target of a CET1 ratio
above 12.5% at all times during execution of the transformation strategy through
2022. The bank reaffirms its confidence in its ability to finance its transformation
through existing capital resources.
Leverage reduction ahead of target
Deutsche Bank reduced leverage exposure by 123 billion euros during the quarter
to 1,168 billion euros at year-end. This was driven primarily by progress in the
Media Release 4 | 15
Capital Release Unit, which reduced leverage exposure by 50 billion euros to 127
billion euros, versus a target of approximately 140 billion euros. Further reductions
arose from a reduction in cash balances, seasonal reductions in the Investment
Bank and currency movements, partly offset by loan growth.
As a result, Deutsche Bank’s leverage ratio improved to 4.3% on a phase-in basis
and 4.2% on a fully loaded basis during the quarter, ahead of its 4% year-end 2019
target. The bank reaffirmed its goal of increasing its leverage ratio to 4.5% by the
end of 2020 and to around 5% by 2022.
Delivering on targets: cost reduction
Noninterest expenses were 25.1 billion euros in 2019, up 7%. Adjusted costs were
21.5 billion euros, down 6% and in line with target, excluding transformation
charges and expenses of 102 million euros incurred in the fourth quarter of 2019
associated with the Prime Finance platform being transferred to BNP Paribas and
which are consistent with those eligible for reimbursement under the terms of the
transfer agreement. Reimbursement is effective from December 1st, 2019, and as
a result approximately one third of the aforementioned fourth-quarter cost has
been recorded as reimbursable in revenues for the month of December. In the
fourth quarter, noninterest expenses were 6.4 billion euros, while adjusted costs
were 5.1 billion euros, down from 5.4 billion euros in the prior year quarter,
excluding transformation charges. This represents the eighth consecutive year-onyear reduction in these costs excluding bank levies.
Cost reductions were achieved across all major categories except IT expenses,
which remained essentially stable during 2019, reflecting Deutsche Bank’s
commitment to continue spending on technology and controls in line with its
transformation strategy.
Compensation and benefits expenses were down in both the full year and fourth
quarter, partly reflecting workforce reductions of over 4,100 full-time equivalents
during 2019. Headcount at year-end was 87,597 full-time equivalents, in line with the bank’s previously announced target of below 90,000.
Professional service fees were also reduced in both the fourth quarter and full
year, reflecting disciplined management of non-compensation costs.
Transformation effects reflect rapid execution of strategy
Deutsche Bank continued to recognise transformation effects as planned. In 2019,
the bank incurred 70% of the total anticipated costs to achieve transformation
between launch in July 2019 and 2022. These anticipated costs have risen by
approximately 400 million euros versus prior expectations, mainly with respect to the impairment and amortisation of software which has no impact on capital.

Transformation-related effects included transformation charges of approximately
1.1 billion euros, primarily impairments and amortisation of software intangibles
and real-estate charges, as well as impairments on goodwill and intangible assets
of around 1.0 billion euros, transformation-related restructuring and severance
charges of approximately 700 million euros, and deferred tax asset valuation
adjustments of 2.8 billion euros.
1
Transformation charges are costs, included in adjusted costs, which are directly related to Deutsche Bank’s transformation
as a result of the new strategy announced on July 7, 2019. Such charges include the transformation-related impairment of
software and real estate, legal fees related to asset disposals as well as the quarterly amortisation on software related to the
Equities Sales and Trading business and onerous contract provisions. Transformation charges for the Group and each
segment can be found on pages 15-22 of the fourth quarter/full year 2019 Financial Data Supplement published on the
Deutsche Bank website www.db.com/quarterly-results.
2
Transformation-related effects are financial impacts resulting from the new strategy announced on July 7, 2019. These
include transformation charges, goodwill impairments in the second quarter 2019, as well as restructuring and severance
expenses from the third quarter 2019 onwards. In addition to the aforementioned pre-tax items, transformation-related
effects on a post-tax basis include pro-forma tax effects on the aforementioned items and deferred tax asset valuation
adjustments in connection with the transformation of the Group. Transformation-related effects for the Group and each segment can be found on pages 15-22 of the fourth quarter/full year 2019 Financial Data Supplement published on the Deutsche Bank website, as above
3 Specific revenue items generally fall outside the usual nature or scope of the business and are likely to distort an accurate
assessment of the divisional operating performance. Specific revenue items for the Group and each segment and a reconciliation between reported revenues and revenues excluding specific items can be found on pages 15-22 of the fourth quarter/full year 2019 Financial Data Supplement published on the Deutsche Bank website, as above.
4 Adjusted profit (loss) before tax is calculated by adjusting the profit (loss) before tax under IFRS for specific revenue items,
transformation charges, impairments of goodwill and other intangibles, as well as restructuring and severance expenses. A reconciliation between reported and adjusted profit before tax for the Group and each segment can be found on pages 15- 22 of the fourth quarter/full year 2019 Financial Data Supplement published on the Deutsche Bank website, as above.
5 Adjusted costs are calculated by deducting (i) impairment of goodwill and other intangible assets, (ii) litigation charges, net and (iii) restructuring and severance from noninterest expenses under IFRS. A reconciliation between noninterest expenses, adjusted costs and adjusted costs excluding transformation charges for the Group and each segment can be found on pages 3-11 of the fourth quarter/full year 2019 Financial Data Supplement published on the Deutsche Bank website, as above.

6Additional description of this item can be found on page 4 of this release.

see & read more on
https://www.db.com/ir/en/download/Release_Q4_2019_results.pdf

time 09.17
Deutsche Bank EUR 7,782 -19,2ct vol. 753.000

tijd 17.40
De DAX 13.149,81 -195,19 -1,46% Deutsche Bank EUR 8,291 +31,7ct vol. 25.934.577
Dit is geen realisme, maar we moeten het er wel meedoen!?
Kijken de toezichthouders NU ook de andere kant op, zoals ook bij het laten oplopen van de risico's van de derivaten? Op een zeker moment ca. 80% van de totale pot van de derivaten als tegenpool bij deze bank!