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

2020 Annual Report:

• Deutsche Bank confirms results published on 4 February with no divergences
• Pre-tax profit of 1.0 billion euros and net profit of 624 million euros
• Group net revenue growth of 4% to 24.0 billion euros
• Cost reduction target achieved
• Common Equity Tier 1 (CET1) capital ratio of 13.6%
• Compensation flat at 10.1 billion euros, including variable compensation up 29% to 1.9 billion euros driven by financial performance and delivery on targets
• Management Board foregoes one-twelfth of total compensation

2020 Non-Financial Report:

• Launched sustainability strategy and target of more than 200 billion euros ex-DWS in cumulative sustainable financing and ESG investment by end of 2025
• 46 billion euros of sustainable financing and ESG investment in 2020, significantly above target threshold of 20 billion euros
• Additional 94 billion euros of ESG assets managed by DWS, up 34% year-on-year
• Creation of the Sustainability Committee of the Management Board embeds sustainability governance at the highest level
• 52 million euros invested into Corporate Social Responsibility and Art, Culture and Sports activities which reached 3.7 million people

2020 Human Resources Report:

• Investing in talent despite COVID-19: hired 717 graduates and selected 570 apprentices from 22,000 applicants
• Programmes to boost hiring of Black graduates and senior Black executives
• Diversity & Inclusion: 18th successive 100-point score, named 'Best Place to Work for LGBTQ Equality' by Human Rights Campaign Corporate Equality Index
• Staff wellbeing during COVID-19: best People Survey results for eight years

'In 2020, we made great progress on our transformation into a sustainably profitable bank, and were even more relevant for our clients,' said Christian Sewing, Chief Executive Officer. 'At the same time, we invested further in our controls, in our talents and in our sustainability strategy - despite an environment of unprecedented challenges.'

Deutsche Bank's (XETRA: DBKGn.DE / NYSE: DB) 2020 audited results, published today, confirm delivery on all financial and strategic milestones of its transformation during 2020 and no divergences from the bank's unaudited results communicated at the Annual Media Conference on 4 February. Deutsche Bank made significant progress on sustainability and maintained its community engagement during the pandemic in 2020. In addition, the bank made further progress on diversity and inclusion, invested in talent, and protected staff wellbeing through COVID-19. These are outlined in the Non-Financial Report and Human Resources Report, also published today.

ANNUAL REPORT Profitability, balance sheet strength and transformation on target

Profit before tax was 1.0 billion euros in 2020, with profit after tax of 624 million euros, as the operating strength of the Core Bank more than offset the impacts of transformation and elevated credit provisions. Net revenues rose 4% to 24.0 billion euros, while noninterest expenses were reduced by 15% to 21.2 billion euros. Adjusted costs ex-transformation charges and reimbursable expenses related to Prime Finance were 19.5 billion euros for 2020, on target and down 9% year on year.

Provision for credit losses was 1.8 billion euros or 41 basis points of loans, close to the mid-point of the bank's 2020 guidance of between 35 and 45 basis points of loans.

Deutsche Bank's CET1 capital ratio was 13.6% at the end of 2020, essentially unchanged versus the end of 2019 despite the impact of the COVID-19 pandemic.

After six quarters of disciplined execution, 85% of the total transformation-related effects anticipated through the end of 2022 have already been recognised.

Outlook for 2021: further progress toward strategic and financial goals

The Annual Report summarises Deutsche Bank's outlook for 2021. The bank reaffirms its 2022 financial plan, including its target for Return on Tangible Equity of 8%.

In 2021, the bank expects revenues to be marginally lower than in 2020, reflecting an anticipated normalisation of volatility and industry volumes in investment banking after the high levels of 2020. The bank foresees growth resuming in 2022 in line with guidance provided at the Investor Deep Dive in December. The bank expects to maintain progress toward its cost targets, driven by the run-rate benefit of existing measures and execution of further measures as planned, notably in Infrastructure and the Private Bank. Provision for credit losses is expected to be slightly lower than in 2020 while remaining above pre-COVID levels, and to decline further to 25-30 basis points of loans in 2022.

Deutsche Bank expects its CET1 capital ratio to remain above the bank's target threshold of 12.5% throughout 2021, although pending regulatory changes are expected to impact this ratio by approximately 80 basis points in the year. The bank reaffirms its commitment to a 2022 leverage ratio of 4.5% on a fully loaded basis. This ratio is expected to be slightly lower in 2021 as the temporary exclusion from this ratio of certain central bank balances expires.

Deutsche Bank continues to expect that from 2022, execution against financial targets will enable the distribution of 5 billion euros to shareholders over time, subject to regulatory approvals. As announced, management does not plan to propose a dividend in respect of 2020.

Compensation

Total compensation awarded to Deutsche Bank employees in respect of 2020 was 10.1 billion euros, flat year-on-year. Fixed compensation declined by 6% to 7.5 billion euros, driven by workforce reductions, and offset by a rise in variable compensation (Group and individual components) of 29% to 1.9 billion euros. This year-on-year increase balanced Deutsche Bank's significantly improved financial performance, delivery against published targets and retention of top talent with the goal of maintaining capital strength. Nearly half of variable compensation awarded in respect of 2020 will be paid out in future years, the highest proportion in five years, and up from 36% in 2019.

The Management Board, comprising ten members on a full-year equivalent basis, received total compensation of 50.0 million euros for 2020, versus 36.0 million euros in 2019, when the Management Board comprised eight members on a full-year equivalent basis.

Against the backdrop of the COVID-19 pandemic and its economic impact, the total compensation of the Management Board was reduced by a total of 4.6 million euros. This included a reduction in the Group Component and an additional reduction in total compensation of one twelfth. The total compensation of the Chairman of the Supervisory Board was also reduced by one twelfth in 2020. In addition, many senior executives voluntarily waived compensation equal to a month's salary.

Other financial and regulatory reports

Today Deutsche Bank published its 2020 Pillar 3 Report and Annual Financial Statements and Management Report under German accounting rules (HGB). In addition, the Annual Report on Form-20-F will be made available today.

NON-FINANCIAL REPORT

Deutsche Bank's 2020 Non-Financial Report, published today, outlines a pivotal year for sustainability. In 2020, sustainable financing and ESG investments were more than double target at 46 billion euros, an important step toward the bank's target of more than 200 billion euros cumulatively by end-2025, excluding ESG assets under management in DWS.

2020: a pivotal year for sustainability at Deutsche Bank

The Non-Financial Report outlines Deutsche Bank's commitment to facilitating the transition toward sustainable growth and a low-carbon economy. All four of Deutsche Bank's core businesses contributed to this:

• The Corporate Bank provided 6 billion euros in sustainability-linked, environmental and social development financing
• The Investment Bank provided sustainable financing of 25 billion euros, underwriting more than 16 billion euros in helping clients to raise nearly 85 billion euros in sustainable bond instruments
• The Private Bank achieved sustainable financing and ESG investments of 15 billion euros, including 4 billion euros in loans for energy-efficient homes, and 11 billion euros in ESG assets under management by year-end
• In addition, Asset Management's ESG assets under management rose 34% to 94 billion euros, or 12% of total assets under management, during 2020

Further highlights of 2020 included:

• Launching Deutsche Bank's inaugural Green Bond, raising 500 million euros, which was multiple times oversubscribed by investors
• Developing a Sustainable Finance Framework aligned to the EU Taxonomy for environmental criteria and ICMA Social Bond principles for social criteria
• Forming the Sustainability Committee of the Management Board, chaired by CEO Christian Sewing
• Laying the foundation for linking senior executive compensation to additional sustainability criteria from 2021 onwards
• Further progress on Climate Risk Management, supporting the bank's goals of aligning the carbon intensity of its loan portfolio to the Paris Agreement and its exit from the financing of thermal coal mining by 2025
• More than 80% of the bank's own electricity consumption came from renewables in 2020, on the way to its commitment of 100% by 2025
• Continuing to strengthen our control environment, spending a further 2 billion euros in this area in 2019 and 2020

Continuing to support communities despite challenges

Deutsche Bank maintained its engagement with communities despite the challenges of the pandemic during 2020. The bank positively impacted a total of 3.7 million people during the year, of which 2.4 million were through its Corporate Social Responsibility programmes and 1.3 million through Art, Culture and Sports. These efforts were supported by 52 million euros of investments through Deutsche Bank and its foundations.

Some 13,000 staff members engaged in volunteering activities during the year, and 8.8 million euros was raised through employee matched giving programmes and fundraising. Despite the constraints of the COVID-19 pandemic, Deutsche Bank's key programmes came close to or exceeded their multi-year targets. The Born to Be youth engagement programme, covering 123 education projects in 28 countries, has reached 4.93 million young people in total since 2014, within 1% of its 5 million target. The Made for Good programme, active in 11 countries, has supported over 23,000 social ventures since 2016, ahead of its target of 20,000. Deutsche Bank's community initiatives have made a positive impact on the lives of more than 4.2 million people since 2015.

The charity sector faced significant challenges during the pandemic. Deutsche Bank and its employees responded with a COVID-19 Relief Campaign. After two months, the bank, supported by more than 7,000 employees, raised 2.5 million euros for 40 charities in 35 countries worldwide. This enabled charities to support around 650,000 disadvantaged people with food, shelter and other essential assistance.

HUMAN RESSOURCES REPORT Improved Commitment and Enablement despite continued workforce reduction

On a full-time equivalent basis, the number of employees decreased by 2,938 to 84,659 during 2020. The exit from equities trading contributed to this development, as did the sale of Postbank Systems which reduced the workforce by over 1,300 full-time equivalents. Management continued to insource business-critical roles during the year, which led to the hiring of staff previously employed by external service providers.

With over 60,000 Deutsche Bank staff working remotely as a result of lockdown measures during 2020, the bank dedicated significant time and focus into caring for the health and wellbeing of staff through this challenging period. It registered its strongest People Survey results in eight years, with responses from more than 50,000 staff members. Staff reported year-on-year improvements across all 55 categories. Commitment levels rose to 69%, versus 58% in 2019, and enablement rose to 76%, its best-ever level, up by 10 percentage points versus the prior year.

Continued investments in early-stage talent

Deutsche Bank delivered full virtual internship and graduate orientation and training programmes for the first time due to the COVID-19 pandemic. Despite a more focused business perimeter as part of transformation, the bank nevertheless hired 717 graduates in 2020, compared to 955 in 2019.

In Germany, the bank hired 570 new apprentices, selected from some 22,000 applicants, during 2020. 42 percent of the bank's total apprentices are women.

A commitment to gender equality, diversity and inclusion

In 2020, the percentage of women Managing Directors rose slightly to 18.4% (2019: 18.3%), while the percentage of female Directors remained stable at 25.1%. Deutsche Bank has increased the proportion of women at Managing Director level in every year since 2010, when the bank first published voluntary global gender diversity goals, although further progress is needed to reach the bank's targets at Managing Director and Director level. The percentage of women at the bank remained stable at 46.4%.

Deutsche Bank operates in 59 countries and had employees of 151 different nationalities as at the end of 2020. In 2020, Deutsche Bank was awarded the maximum score of 100 in the Human Rights Campaign's annual Corporate Equality Index for the eighteenth consecutive year, and was designated as a 'Best Place to Work for LGBTQ Equality' by that body. In December 2020, the bank announced aspirational goals to increase the number of Black colleagues at the bank's two highest corporate title levels in the US by 50% over the next three years and to increase the proportion of Black talent in Deutsche Bank's graduate programmes to 10% by 2025.

Final and audited results at a glance Availability

All reports can be downloaded from https://www.db.com/ir/en/annual-reports.htm. The Annual Report on Form 20-F, which will be submitted to the US Securities and Exchange Commission today, will also be made available following submission (English only) on the website: https://www.db.com/ir/en/sec-filings-for-financial-results.htm.

Definitions

Non-Financial Report

This sets out the bank's strategy, commitments and achievements in respect of sustainability, including environmental, social and governance (ESG)-related topics. The report also covers public policy and regulation, efforts to combat financial crime, employee-related matters including investment in talent, diversity and inclusion, technology and innovation, the bank's engagement with clients, employees and communities during the COVID-19 pandemic, and other non-financial aspects of the bank's work.

Human Resources Report

Deutsche Bank's Human Resources Report contains information on Deutsche Bank's strategic Human Resources priorities and initiatives during 2020, provides key employee statistics and gives details on key metrics and people-related activities.

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About Deutsche Bank

Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany's leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.

Forward-looking statements contain risks

This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 12 March 2021 under the heading 'Risk Factors'. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.

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