Deutsche Bank (DBK) 29th Annual Financials CEO Conference 2024 summary

Strategic focus and market positioning

• Emphasis on executing the current transformation strategy and delivering 2025 targets, with confidence in ongoing momentum and shareholder value creation.

• Industrial logic for European consolidation acknowledged, but current focus remains on internal value generation and market share growth, especially in Germany.

• Competitive position in Germany is strong, with potential near-term benefits from competitor disruptions.

• Cross-border and in-market M&A discussed, but management prioritizes internal execution over expansionary moves.

• Management sees significant upside in current strategy before considering major acquisitions.

Financial performance and revenue drivers

• Confident in achieving above 10% return on tangible equity (ROTE) by 2025, viewing it as a milestone toward higher returns.

• Revenue growth driven by operating leverage, cost discipline, and ongoing execution, with normalization of credit costs expected.

• Interest income has outperformed expectations due to favorable rate environment and deposit beta, with non-interest income expected to become a larger driver by 2025.

• Net interest income (NII) sustained at 2023 levels in 2024, with modest growth anticipated in 2025, supported by hedging and loan growth.

• Loan growth in Germany has stagnated, but signs of recovery in housing finance and international diversification provide resilience.

Investment bank and fee income

• Investment bank revenues grew 12% in H1, with continued momentum in FICC and origination advisory.

• Market share gains in FICC attributed to execution, talent, technology, and ratings upgrades.

• Q3 expected to show mid-single digit growth in FICC and 15% growth in origination and advisory, leading to healthy overall investment bank performance.

• Strategy remains focused on core FICC products, with disciplined expansion and strong client demand.

• Scale and diversification in market risk support capital efficiency and further growth opportunities.