Deutsche Bank : Q2 Report

Deutsche Bank

Interim Report

as  of June 30, 2021

Deutsche Bank	Financial summary
Interim Report as of June 30, 2021

Financial summary

Group f inancial targets

Post-tax return on av erage tangible shareholders' equity 1

Cost/income ratio2

Common Equity Tier 1 capital ratio

Lev erage ratio (f ully loaded)

Statement of Income

Total net rev enues, in € bn.

Prov ision f or credit losses, in € bn.

Total noninterest expenses, in € bn.

Adjusted costs ex. transf ormation charges, in € bn.3

Prof it (loss) bef ore tax, in € bn.

Prof it (loss), in € bn.

Prof it (loss) attributable to Deutsche Bank shareholders, in € bn.

Balance Sheet4

Total assets, in € bn.

Net assets (adjusted), in € bn.5

Loans (gross of allowance f or loan losses), in € bn.

Av erage Loans (gross of allowance f or loan losses), in € bn.

Deposits, in € bn.

Allowance f or loan losses, in € bn.

Shareholders' equity , in € bn.

Resources4

Risk-weighted assets, in € bn.

Thereof : Operational Risk RWA, in € bn.

Lev erage exposure, in € bn.

Tangible shareholders' equity (Tangible book v alue), in € bn.5

High-quality liquid assets (HQLA), in € bn.

Liquidity reserv es in € bn.

Employ ees (f ull-time equiv alent)

Branches

Ratios

Post-tax return on av erage shareholders' equity 1

Prov ision f or credit losses as bps of av erage loans

Loan-to-deposit ratio

Lev erage ratio (phase-in)

Liquidity cov erage ratio

Per Share inf ormation

Basic earnings per share

Diluted earnings per share

Book v alue per basic share outstanding5

Tangible book v alue per basic share outstanding5

Three months ended			Six months ended
Jun 30, 2021		Jun 30, 2020		Jun 30, 2021		Jun 30, 2020
5.5 %		(0.6) %	6.5 %	(0.5) %
80.1 %			85.4 %		78.5 %		87.1 %
13.2 %			13.3 %		13.2 %		13.3 %
4.8 %		4.2 %	4.8 %	4.2 %
6.2			6.3		13.5		12.6
0.1			0.8		0.1		1.3
5.0			5.4		10.6		11.0
4.6			4.9		9.9		10.4
1.2			0.2		2.8		0.4
0.8			0.1		1.9		0.1
0.7			(0.1)		1.6		(0.1)
1,320			1,407	1,320	1,407
992			986		992		986
445			442		445		442
439			452		436		444
581			573		581		573
4.8			4.9		4.8		4.9
57			55		57		55
345			331		345		331
67			71		67		71
1,100			1,192		1,100		1,192
50			49	50	49
224			208		224		208
254			232		254		232
83,797			86,824		83,797		86,824
1,845			1,920		1,845		1,920
4.9 %		(0.6) %	5.8 %	(0.4) %
7			67		7		57
76.6 %			77.1 %		76.6 %		77.1 %
4.9 %		4.3 %		4.9 %		4.3 %
143 %		144 %		143 %		144 %
€ 0.21		€ (0.15)		€ 0.68		€ (0.13)
€ 0.20	€ (0.15)		€ 0.67		€ (0.13)
€ 26.97		€ 26.22		€ 26.97		€ 26.22
€ 24.06		€ 23.31		€ 24.06		€ 23.31

1 Based on profit (loss) attributable to Deutsche Bank shareholders after AT1 coupon. For further information, please refer to "Additional Information: Non-GAAP Financial

	Measures" of this report.
2	Total noninterest expenses as a percentage of net interest income before provision for credit losses, plus noninterest income.
3	The reconciliation of adjusted costs is provided in section "Additional Information: Non-GAAP Financial Measures/ Adjusted costs" of this document.

1. At period end.
2. For further information please refer to "Additional Information: Non-GAAP Financial Measures" of this report.

Due to rounding, numbers presented throughout this document may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Content

Interim  management report­

1. Global economy
2. Banking industry
3. Group results

1. Segment results

1. Financial position

1. Strategy

1. Outlook

1. Risks and opportunities

1. Risk information

1. Additional information

Interim consolidated financial  statements

43 Consolidated statement of income

43 Income statement

1. Earnings per common share
2. Consolidated statement of comprehensive income
3. Consolidated balance sheet
4. Consolidated statement of changes

in equity

47 Consolidated statement of cash flows

49 Basis of preparation / impact of

changes­ in accounting principles

53 Impact of COVID-19

1. Impact of Deutsche Bank's transformation
2. Segment results

60 Information on the consolidated income statement

1. Net interest income and net gains (losses) on financial assets / liabilities at fair value through profit or loss
2. Commissions and fee income

63 Gains and losses on derecognition of financial assets measured at amortized cost

1. Restructuring
2. Effective tax rate
3. Information on the consolidated

balance sheet

65 Financial instruments carried at fair value

1. Fair value of financial instruments not carried at fair value
2. Shares issued and outstanding

1. Allowance for credit losses
2. Provisions
3. Long-termdebt
4. Other financial information

1. Credit related commitments and contingent liabilities
2. Related party transactions
3. Non-currentassets and disposal groups held for sale

1. Interest rate benchmark reform

1. Capital expenditures and divestitures

1. Events after the reporting period

1. Review report
2. Responsibility statement by the Management Board

Supplementary information

90 Non-GAAP financial measures

100 Imprint

Deutsche Bank	Global economy
Interim Report as of June 30, 2021

Management report

Global economy

Economic growth (in %)1		Jun 30, 2021		Dec 31, 20204		Main driver
Global Economy 2	6.3		(3.2)		The f irst half of 2021 was marked by a slowdown in new COVID-19 inf ections in many
							countries, while some regions experienced a temporary resurgence of the pandemic.
							The global economy recov ered strongly during the f irst half of 2021, supported by the
							increasing av ailability of v accines. Central banks and f iscal measures remained
							supportiv e, but the largely sy nchronous global recov ery has led to supply bottlenecks
	Of which:						and rising inf lation.
	Industrialized countries	5.6		(5.0)		Industrialized countries benef ited f rom the early av ailability of COVID-19 v accines in
							the f irst half of 2021. Fiscal policies allowed f or continued support to domestic
							economies, while industry sectors benef ited f rom the strong global recov ery . Central
							banks also maintained their expansiv e	stance and complemented f iscal policy
							measures.
	Emerging markets	6.8		(1.9)		Emerging markets experienced less f av orable economic recov ery during the f irst half
							of 2021. While some of the Asian	economies dev eloped dy namically , the Latin
							American emerging markets suf fered f rom a lack of access to COVID-19 v accines.
Eurozone Economy 3		12.8		(6.5)		The Eurozone economies hav e noticeably recov ered as of the end of the second
							quarter of 2021. Country -specif ic COVID-19 policies resulted in a gradual div ergence
							in each country 's economic recov ery in the first half of the year. The European Central
							Bank continued its support and f iscal policy also remained expansiv e.
	Of which: Germany	8.9		(4.8)		In the f irst half of 2021, the German	economy was characterized as div ided in its
	Economy						dev elopment. Strong global demand	stabilized the industrial sector, while	priv ate
							consumption suf f ered signif icantly	f rom	COVID-19-related constraints. A	more
							signif icant rev iv al of the manuf acturing sector was prev ented by supply bottlenecks.
							The economy reopened again towards the middle of the y ear and priv ate demand
							gained momentum. During the f irst half	of 2021, the economy continued	to be
							supported by f iscal measures such as "Kurzarbeit".
U.S. Economy 3	13.2		(3.5)		The U.S. economy continued its dy namic recov ery in the f irst half of 2021. This was
							made possible by a decline in COVID-19 inf ections and a strong start	to its
							v accination campaign. The economic recov ery was also supported by strong f iscal
							support f or priv ate households. In addition, the Federal Reserv e Bank's monetary
							policy remained expansionary .
Japanese Economy 3	7.4		(4.7)		The recov ery of the Japanese domestic economy was slowed by COVID-19-related
							restrictions at the beginning of the y ear and the v accination campaign only	gained
							momentum towards the end of the f irst half of 2021. In addition, f oreign trade also
							suf f ered f rom weak demand. Ov erall, the economic recov ery progressed	slowly
							compared to the global economy . The Bank of Japan continued to maintain its
							accommodativ e stance.
Asia Economy 3,5		10.9		(0.8)		Asia's economic recov ery was negativ ely impacted in the f irst half of 2021 by weaker
							than expected GDP growth in a number of economies and repeated COVID-19
							outbreaks that temporarily limited the recov ery of domestic demand.
	Of which: Chinese Economy	8.7		2.3		China's economy experienced a buoy ant start in 2021, with export demand being a
							key growth driv er. Domestic demand is being slowed by the less supportiv e f iscal
							policy towards the end of the f irst half of	the y ear.
1	Annual Real GDP Growth (% YoY). Sources: National Authorities unless stated otherwise.
2	For the Global Economy growth rates are only available	at an annual basis, full year forecasts for 2021 were used for half year	numbers.

1. Quarterly Real GDP Growth (% YoY) Sources: Deutsche Bank Research. The half yearly numbers are not available hence quarterly growth rates were used as indicative growth percentage.
2. Some economic data for 2020 was revised by public statistics authorities due to the economic effects of the pandemic. As a result, this data may differ from that previously published.
3. Includes China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, Sri Lanka, South Korea, Taiwan, Thailand and Vietnam; excludes Japan.

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Deutsche Bank	Banking industry
Interim Report as of June 30, 2021

Banking industry

Jun 30, 2021

Growth year-over-year

Corporate

Retail

Corporate

Retail

Main driver

(in %)

Lending

Lending

Deposits

Deposits

Eurozone1

0.6

3.9

7.3

6.7

Corporate lending and deposits experienced a slower growth in

comparison to the strong growth in the Spring of 2020. By contrast,

lending to households deliv ered its best perf ormance since 2011 and

deposits

also experienced

a

strong increase

giv en

restricted

opportunities f or consumer spending as a result of lockdown measures.

Of which: Germany

1.3

4.9

8.6

6.6

Corporate

lending growth

was

at its lowest lev el since

2015, and

corporate deposit growth also signif icantly decreased. For households,

the v olumes f or lending (in particular mortgage lending) and deposits

were the highest ev er recorded.

US

(7.1)

(0.9)

9.72

9.72

Corporate

lending continued to decline moderately f ollowing the v ery

sharp growth at the beginning

of the pandemic. Lending to households

slightly dropped but deposits continued to increase sharply , partly due

to the highly

expansionary f iscal policy and

continued restrictions on

consumer spending.

China

12.1

15.1

5.9

11.4

Lending

to

households

and

businesses

remains

v ery

dy namic.

Corporate deposit growth returned to its pre-crisis lev el and the v olumes

f or households remained strong.

1. May 31, 2021.
2. Total U.S. deposits as sector breakdown is not available.

Global investment banking had a very good start into the year even as compared to a strong performance in the same period in 2020. All revenue categories experienced a significant grow th led by record-high equity issuances and the continued popularity of Special Purpose Acquisition Companies (SPAC). The M&A business also had a robust recovery and reached an all-time high. Fixed income issuance volumes w ere moderately below the exceptional level of the prior year. Trading performance w as mixed and experienced a sharp grow th in U.S. equities, a slight year-over-year decline in fixed income securities and derivatives, and a fall in European equities.

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