Deutsche Bank Performance

In 2014 we continued to invest in the bank’s future growth and in further strengthening our capital base. Revenues remained stable despite challenging markets. While we made progress on OpEx savings, costs were negatively affected by required regulatory spending. We expect 2015 to be a year of further challenges and disciplined implementation; however, we will continue to work diligently towards our 2015 targets and to our strategic vision for Deutsche Bank.

The financial highlights for the Group in the period and key performance indicators can be summarized as follows:

  • Group net revenues of € 31.9 billion in 2014, up € 34 million versus 2013;
  • Income before income taxes of € 3.1 billion, up € 1.7 billion versus 2013;
  • Net income increased to € 1.7 billion in 2014; up € 1.0 billion versus 2013;
  • Cost/income ratio (reported) was 86.7 %, down from 89.0 % in 2013. Cost/income ratio (adjusted) was 74.4 %, up from 72.5 % in 2013;
  • CRR/CRD 4 fully loaded Common Equity Tier 1 ratio was 11.7 % at the end of 2014;
  • Post-tax return on average active equity (reported) was 2.7 %, up from 1.2 % in 2013. Post-tax return on average active equity (adjusted) was 7.1 %, down from 7.7 % in 2013;
  • CRR/CRD 4 fully loaded leverage ratio was 3.5 % at year-end 2014;
  • CRR/CRD 4 fully loaded risk-weighted assets of € 394 billion as of December 31, 2014.

Our Group Key Performance Indicators are as follows:

Group Key Performance Indicators

Status end of 2014

Status end of 2013

1

Based on Net Income attributable to Deutsche Bank shareholders.

2

Based on Net Income attributable to Deutsche Bank shareholders, adjusted for litigation, CtA, impairment of goodwill and intangible assets, other severances and CRR/CRD 4 Credit Valuation Adjustment (CVA)/Debt Valuation Adjustment (DVA)/Funding Valuation Adjustment (FVA). Calculation is based on an adjusted tax rate of 34 % for year ended December 31, 2014 and 36 % for year ended December 31, 2013.

3

Total noninterest expenses as a percentage of total net interest income before provision for credit losses plus noninterest income.

4

Based on noninterest expenses, adjusted for litigation, CtA, impairment of goodwill and intangible assets, policyholder benefits and claims, other severances and other divisional specific cost one-offs; divided by reported revenues.

5

Cost savings resulting from the implementation of the OpEx program.

6

Costs-to-achieve (CtA) savings are costs which are directly required for the realisation of savings in the OpEx program.

7

The CRR/CRD 4 fully loaded Common Equity Tier 1 ratio represents our calculation of our Common Equity Tier 1 ratio without taking into account the transitional provisions of CRR/CRD 4. Further detail on the calculation of this ratio is provided in the Risk Report.

8

Further detail on the calculation of this ratio is provided in the Risk Report.

9

Does not take into account recent revisions to the leverage exposure calculation under CRR/CRD 4.

Post-tax return on average active equity (reported)1

2.7 %

1.2 %

Post-tax return on average active equity (adjusted)2

7.1 %

7.7 %

Cost/income ratio (reported)3

86.7 %

89.0 %

Cost/income ratio (adjusted)4

74.4 %

72.5 %

Cost savings5

€ 3.3 bn

€ 2.1 bn

Costs to achieve savings6

€ 2.9 bn

€ 1.8 bn

CRR/CRD 4 fully loaded Common Equity Tier 1 ratio7

11.7 %

9.7 %

Fully loaded CRR/CRD 4 leverage ratio8

3.5 %

2.4 %9

Income before income taxes grew significantly year on year to € 3.1 billion driven by solid performances in the Core businesses, plus lower provision for credit losses and reduced litigation costs compared to 2013 as the resolution of some matters was pushed beyond 2014.

Net revenues in 2014 were € 31.9 billion, up € 34 million from 2013. Despite market challenges, CB&S, GTB and PBC reported increased net revenues in 2014, while Deutsche AWM reported a slight revenue decrease following mark-to-market movements on policyholder positions in Abbey Life. NCOU revenues were down year on year, primarily impacted by a decreasing portfolio following de-risking activities.

Noninterest expenses in 2014 were € 27.7 billion, down 2 % from 2013, benefitting primarily from lower litigation costs. In addition policyholder benefits & claims fell, savings were realized from the OpEx program, and restructuring activity costs decreased. However, compensation and benefits were higher compared to 2013, mainly driven by costs to comply with regulatory compensation requirements.

OpEx program annual cost savings of € 3.3 billion were achieved in 2014, above the € 2.9 billion target for 2014. Cumulative costs to achieve were € 2.9 billion (thereof € 1.2 billion spent in 2014, € 1.3 billion spent in 2013 and € 0.5 billion spent in 2012). However, the prevailing business environment and additional regulatory cost challenges had an adverse impact on our adjusted cost-income ratio and adjusted post-tax return on average active equity.

Our capital position strengthened with a fully loaded Common Equity Tier 1 ratio of 11.7 %, in excess of our strategy 2015+ target. Additionally the fully loaded CRR/CRD 4 leverage ratio was 3.5 % at the end of 2014 based on a CRR/CRD 4 leverage exposure of € 1,445 billion as of December 31, 2014.

Deutsche Bank met the requirements of the Comprehensive Assessment conducted by the European Central Bank (ECB) in 2014. The assessment comprised an Asset Quality Review (AQR) and a Stress Test which modeled the capital adequacy of the Bank under different stress scenarios. The assessment reaffirmed that our capital base exceeds regulatory requirements, even under severe market stress conditions, and underlined the quality of our asset base. The AQR adjustments identified were not material in nature and did not result in changes to the reported results or ratios.