Key developments
Revenue decline of 22% year-on-year reflected a challenging environment and the impact of strategic decisions to downsize and exit certain businesses
Noninterest expenses declined 17%, largely from lower litigation charges
Adjusted costs declined 4% from lower variable compensation
CET1 ratio of 10.7%; pro forma impact of sale of Hua Xia Bank stake anticipated in second quarter to add ~50 bps
RWA up slightly to EUR 401 billion quarter-on-quarter, reflecting higher RWA for operational risk
Progress on strategy implementation included reducing/exiting certain businesses and progress on disposals

Group results at a glance Core business revenues
EUR bn 1Q2016 change EUR bn 1Q2016 change
vs. 1Q2015 vs. 1Q2015
Net revenues 8.1 (22)% Global Markets 2.8 (23)%
Noninterest expenses 7.2 (17)% Corporate & Investment Banking 1.8 (15)%
Adjusted costs 6.7 (4)% Private, Wealth & Commercial Clients 1.7 (17)%
Income before income taxes 0.6 (61)% – Excluding Hua Xia Bank effects (5)%
Net income 0.2 (58)% Deutsche Asset Management 0.7 (12)%
Post tax RoTE 1.6% (2.3)ppt Postbank 0.9 0%
CET1 ratio1 10.7% (0.4)ppt
Leverage ratio1 3.4% (0.1)ppt
1Fully loaded Capital Requirements Regulation / Capital Requirements Directive 4 (CRR / CRD4) basis; in line with the Management Board’s decision not to propose any dividend on common stock for the fiscal year 2016; subject to no objection by the ECB Governing Council; vs. 4Q2015

John Cryan, Co-Chief Executive Officer:
“Financial markets were challenging during the first quarter, largely reflecting concerns about the outlook for the global economy. This uncertainty led to a decline in client activity in the capital markets, and our revenues fell from the prior year, most notably in our trading and corporate finance businesses. Our results reflect these challenging conditions as well as the impact of our strategic decisions to exit or reduce significantly selected businesses.”
“Despite this, we made progress on a number of fronts including the modernisation of our IT platforms; the operational separation of Deutsche Postbank, which is almost complete; the continued disposal of non-core assets; and the ongoing closure or downsizing of our operations in selected countries. In addition, we markedly improved the process through which we adopt new clients.”
“Implementing our strategy remains our core focus and 2016 will be the peak year for our restructuring efforts. We expect to close the sale of our stake in Hua Xia Bank in the second quarter and this will strengthen our CET1 ratio. We continue to upgrade our technology, strengthen our control environment, and work towards resolving outstanding litigation matters.”



John Cryan and Jürgen Fitschen, Co-CEOs of Deutsche Bank, sent out the following message to the Bank’s employees on April 28, 2016

Dear Colleagues,

This morning, we released our first-quarter 2016 financial results. We will be discussing these with analysts and the media later today, but first we would like to share them with you.

As you know, business conditions were challenging during the quarter, particularly in January and February, as financial market participants reacted to concerns about the outlook for the global economy. These are reflected in our results.

Group revenues were 8.1 billion euros, 22 percent lower than in the first quarter of 2015. Above all, revenues in our capital markets-related businesses were substantially lower year-on-year. On the other hand, revenue declines in our other businesses were less pronounced, despite persistent low or negative interest rates. In addition, this quarter’s revenues reflected our implementation of strategic decisions to reduce or exit certain products, locations and client relationships.

Noninterest expenses were also lower, at 7.2 billion euros, down 17 percent year-on-year, primarily due to considerably lower litigation charges than in the first quarter of 2015. Pre-tax profit was 579 million euros and net income 236 million euros, both substantially lower than in the first quarter of last year.

Turning to our results in our business divisions: in Global Markets, revenues in both Equity and Debt Sales & Trading were down 29 percent. This partly reflected our decision to reduce or exit certain businesses and relationships. In Corporate & Investment Banking, Corporate Finance revenues were lower year-on-year, largely from lower client issuance. However, we were pleased that Transaction Banking produced solid revenues, reflecting the stability of the business.

In Private, Wealth & Commercial Clients, revenues were resilient when adjusted for the impact of the upcoming sale of our stake in Hua Xia Bank. In Deutsche Asset Management, however, revenues were lower, reflecting weak markets.

We continue to make important progress in transforming the bank. Preparations for the operational separation of Deutsche Postbank are almost complete. Our Non-Core Operations Unit (NCOU) sustained its progress, reducing risk weighted assets to 30 billion euros, down by nearly a third year-on-year; we recently announced the disposal of the Maher Terminals Port Elizabeth facility; and this week the IPO of Red Rock Resorts was successfully priced.

Moreover, we are making Deutsche Bank simpler and more focused. We closed 43 branches in Spain and Poland and proceeded to downsize or exit certain countries. We have been strengthening our control environment, upgrading technology and improving the processes by which we adopt clients. We sustained efforts to put remaining legal and regulatory issues behind us.

We are working hard to modernise the bank and bring it back to a leadership position in technology. This week we launched a new app, Deutsche Bank Mobile, which places us at the forefront of digital banking. This is vital as we seek to reach, and win, a younger generation of clients.

In addition, we laid the foundations for our Digital Factory in Frankfurt. Here, around 400 digital specialists and banking experts will work together and cooperate closely with our Innovation Labs in Berlin, London and Silicon Valley to push forward our digital agenda. With this initiative, we are building for the future.

The economic and financial market outlook remains uncertain – but as you can see we are making progress on many fronts. This progress is thanks above all to your hard work and diligence, which we very much appreciate.

So, on behalf of all our Management Board colleagues, thank you for your efforts. Our goal is clear: to build a better Deutsche Bank. We remain convinced that together, we will succeed.

Yours sincerely,

John Cryan Jürgen Fitschen

d.d. 28 apr. Deutsche bank EUR 17,22 +53ct vol. 205.000