Progress19ise.com

ReleaseRelease1|8IssuedbythepressrelationsdepartmentofDeutscheBankAGTaunusanlage12,60325FrankfurtamMainPhone+49(0)6991043800,Fax+49(0)6991033422Internet:db.
comhttps://www.
db.
com/newsroomE-mail:db.
presse@db.
comDeutscheBankreportsthirdquarter2016pre-taxprofitofEUR619millionandnetincomeofEUR278millionJohnCryan,ChiefExecutiveOfficer,said:"Theresultsforthequarterdemonstratewellthestrengthsofouroperatingbusinessesandtheoutstandingworkofourpeople.
Wecontinuedtomakegoodprogressonrestructuringthebank.
However,inthepastseveralweeksthesepositivedevelopmentswereovershadowedbytheattentionaroundournegotiationsconcerningtheResidentialMortgageBackedSecuritiesmatterintheUnitedStates.
Thishadanunsettlingeffect.
Thebankisworkinghardonachievingaresolutionofthisissueassoonaspossible.
"RevenuesslightlyupoEUR7.
5billionvs.
EUR7.
3billionin3Q2015,despiteatoughinterestrateenvironmentNoninterestexpensesloweroEUR6.
5billionvs.
EUR13.
2billionin3Q2015,whichincludedsignificantimpairmentsandlitigationchargesoAdjustedcostsofEUR5.
9billion,downapproximatelyEUR350millionyear-on-yearOperatingstrengthoPre-taxprofitofEUR619millionin3Q2016,achieveddespitecostburdenofrestructuringandseverance,litigation,impairmentsandde-riskingofNon-CoreOperationsUnit(NCOU)ofEUR1.
0billionoPre-taxprofitofEUR1.
6billionin9M2016,achieveddespitecostburdenofrestructuringandseverance,litigation,impairmentsandde-riskingofNCOUofEUR3.
0billionImprovedcapitalratiosduetoprogressinde-riskingoCRR/CRD4fullyloadedCET1ratioof11.
1%vs.
10.
8%in2Q2016,beforeexpectedgainof~40-50basispointsfromdisposalofthestakeinHuaXiaBankoOnaphase-inbasisCRR/CRD4CET1ratioof12.
6%vs.
12.
2%in2Q2016oRiskWeightedAssetsdownEUR18billiontoEUR385billion,primarilyreflectingde-riskingofNCOURestructuringontrackoWorkers'CouncilnegotiationsinGermanyconcludedoSaleofPrivateClientServicesintheU.
S.
completedoAgreementondisposalofAbbeyLifeCorebusinesssuccessesoCorporate&InvestmentBanking:RegainingstrengthwithleadershipinCorporateFinanceinGermanyandatop5positioninglobalIPOsoGlobalMarkets:revenuesup10%vs.
3Q2015drivenbysolidperformanceinDebtSales&TradingoPrivate,Wealth&CommercialClients:creditproductrevenuesup5%year-on-yearFrankfurtamMainOctober27,2016Release2|8oDeutscheAssetManagement:profitgrowthyeartodatewithapre-taxprofitofEUR549millionin9M2016,up7%year-on-yearProgressondigitalizationandtechnologyoDigitalFactoryinFrankfurtandDataLabinDublinopenedduringthequarteroMigrationintotheprivatecloudsuccessfullystartedwhichmadethereductionfrom45to41operatingsystemspossibleyear-to-dateGroupResultsNoninterestexpensesCommentaryGroupnetrevenuesinthethirdquarter2016increased2%toEUR7.
5billion.
RevenuesinthePrivate,WealthandCommercialClientssegmentbenefittedfromtheabsenceofachargerelatedtoHuaXiaBankCo.
Ltd.
takenintheprioryearquarter,andAssetManagementrevenuesincludedstrongpositivemark-to-marketmovementsonpolicyholderpositionsinAbbeyLife.
Therevenueincreaseisdrivenprimarilyby10%year-over-yeargrowthinGlobalMarkets,whileabsenttheaforementionedeffects,revenuesdeclinedinallotheroperatingbusinesses,largelyreflectingimpactoftheongoinglowinterestrateenvironment.
Provisionsforcreditlossesincreased58%inthethirdquarter2016toEUR327million.
ThismainlyresultedfromhigherprovisionsinCIBreflectingcontinuedmarketweaknessintheShippingandOil&Gassectors.
NoninterestexpenseswereEUR6.
5billioninthethirdquarter2016,a50%decreasefromtheprioryearperiod.
Thethirdquarter2015includedachargeforGroupinEURm.
(unlessstatedotherwise)3Q20163Q20153Q16vs.
3Q159M20169M20159M16vs.
9M15Netrevenues7,4937,33016322,94626,883(3,937)Provisionforcreditlosses(327)(207)(120)(891)(576)(314)Noninterestexpenses(6,547)(13,224)6,676(20,450)(29,700)9,250Income(loss)beforeincometaxes619(6,101)6,7201,606(3,393)4,999Netincome278(6,024)6,302534(4,647)5,182RWA(inEURbn)385408(23)385408(23)Tangiblebookvaluepershare(inEUR)37.
5438.
99(1.
45)37.
5438.
99(1.
45)inEURm.
(unlessstatedotherwise)3Q20162Q20161Q20164Q20153Q20152Q20151Q2015Noninterestexpenses6,5476,7187,1848,96713,2247,7988,678therein:ImpairmentofGoodwill&Intangibles(49)285065,77000Litigation5011201871,2381,2091,2271,544Policyholderbenefitsandclaims1677444122(29)10153RestructuringandSeverance76207285790634567AdjustedCosts5,8526,0326,6686,8116,2106,5166,914Cost/incomeratio87%91%89%135%180%85%84%Compensationratio39%40%40%47%45%38%33%Note:FiguresmaynotaddupduetoroundingRelease3|8impairmentofgoodwillandotherintangibleassetsofEUR5.
8billion.
Litigationexpensesandperformance-relatedcompensationwerelowerthantheprioryear,whichwaspartiallyoffsetbyhigherITcosts.
Thirdquarter2016netincomewasEUR278millioncomparedtoalossofEUR6.
0billioninthepriorperiod,whichincludedthepreviouslynotedchargerelatedtoHuaXiaBankCo.
Ltd.
andimpairmentsofEUR5.
8billion.
CapitalandleverageCommentaryTheCommonEquityTier1(CET1)capitalratioroseto11.
1%onafullyloadedbasisinthequarter.
FullyloadedCET1capitaldeclinedtoEUR42.
9billionasthepositiveeffectofnetincomeandequitycompensationwasoffsetmainlyfromtheimpactofalowerdiscountrateonpensions,higherdeductionsforintangiblesandnegativeimpactofAbbeyLifesaleagreement.
However,RiskWeightedAssets(RWA)declinedEUR18billiontoEUR385billion,primarilyfromreductioninRWAintheNon-CoreOperationsUnitandGlobalMarkets.
CRD4LeverageRatioincreasedto3.
5%onafullyloadedbasisprimarilyfromaEUR60billiondeclineinleverageexposuretoEUR1,354billioninthethirdquarter.
inEURbn(unlessstatedotherwise)Sep30,2016Jun30,2016Sep30,2015CET1capitalratio(CRR/CRD4fully-loaded)11.
1%10.
8%11.
5%Risk-weightedassets(CRR/CRD4fully-loaded)385402408Totalassets(IFRS)1,6891,8031,719CRD4leverageexposure(CRR/CRD4fully-loaded)1,3541,4151,420Leverageratio(CRR/CRD4fully-loaded)3.
5%3.
4%3.
6%Note:3Q2016CET1capitalratio(CRR/CRD4phase-in)is12.
6%;Risk-weightedassets(CRR/CRD4phase-in)inEUR385bnRelease4|8SegmentresultsGlobalMarkets(GM)CommentaryGlobalMarkets(GM)netrevenueswereEUR2.
6billioninthethirdquarter2016,a10%increasefromtheprioryearperiod.
HigherrevenuesweredrivenbytheCreditandRatesbusinesses.
RevenuesinEmergingMarkets,AsiaPacificLocalMarketsandEquitiesdecreasedinthequarterwhileForeignExchangerevenueswereunchanged.
NoninterestexpensesinGMwereEUR2.
2billioninthethirdquarter.
Thiswasa49%declinefromtheprioryearperiod,whichincludedanimpairmentchargeofEUR1.
6billionforgoodwill.
Theremainingnoninterestexpensedecreaseprimarilyreflectedlowerlitigationandcompensationandbenefitcosts.
GMreportedincomebeforeincometaxesinthethirdquarter2016ofEUR330million,withapost-taxreturnontangibleequityof3.
7%.
Corporate&InvestmentBanking(CIB)CommentaryCorporate&InvestmentBankingrevenuesinthethirdquarter2016wereEUR2.
0billion,a1%declinefromtheprioryearperiod.
CorporateFinancerevenuesincreased4%asbothEquityOriginationandDebtOriginationrevenueswerehigher,offsettingayear-over-yeardeclineinAdvisoryrevenues.
Transactionbankingrevenuesweredown5%largelydrivenbyweakerdemandandinterest-ratedrivenmarginpressureinourtradeandcorporatecashmanagementbusiness.
inEURm.
(unlessstatedotherwise)3Q20163Q20153Q16vs.
3Q159M20169M20159M16vs.
9M15Netrevenues2,5882,3442437,8269,355(1,529)Sales&Trading(equity)603632(30)2,0742,780(706)Sales&Trading(debtandotherproducts)2,0671,8182485,9596,970(1,011)Provisionforcreditlosses(30)(0)(29)(84)(7)(78)Noninterestexpenses(2,206)(4,345)2,139(6,942)(10,186)3,244Noncontrollinginterest(22)13(35)(46)(25)(21)Income(loss)beforeincometaxes330(1,989)2,318753(863)1,616RWA(inEURbn)164167(3)164167(3)inEURm.
(unlessstatedotherwise)3Q20163Q20153Q16vs.
3Q159M20169M20159M16vs.
9M15Netrevenues1,9631,988(24)5,6766,277(601)Provisionforcreditlosses(176)(90)(87)(427)(179)(248)Noninterestexpenses(1,147)(2,086)939(3,861)(4,969)1,107Income(loss)beforeincometaxes640(188)8281,3871,130257RWA(inEURbn)8288(6)8288(6)Release5|8ProvisionsforCreditLossesinCIBincreasedEUR87millioninthethirdquarter2016toEUR176million.
ThemajorityofthisincreasewasrelatedtotheShippingandOil&Gasindustries.
NoninterestexpensesinCIBdecreased45%toEUR1,147millioninthethirdquarter2016,largelyrelatedtoEUR783millionofchargesintheprioryearperiodforintangibleimpairmentsandlitigation.
Expensesexcludingthoseitemswere12%lowerprimarilyfromreducedcompensationexpenses.
CIBincomebeforeincometaxeswasEUR640millioninthethirdquarter2016,withapost-taxreturnontangibleequityof15.
4%.
Private,Wealth&CommercialClients(PW&CC)CommentaryNetrevenuesinPW&CCincreased20%toEUR1.
7billioninthethirdquarter2016.
ThisincreaselargelyreflectedtheabsenceofanegativenetvaluationimpactontheHuaXiaBankCo.
Ltd.
stakeofEUR0.
5billiontakenintheprioryearperiodagainstreportedrevenues.
PrioryearrevenuesalsobenefittedfromanextraordinarydividendofapproximatelyEUR100millionreceivedfromaholdinginthePrivate&CommercialClient(PCC)business.
Absentthoseitems,revenuesdeclinedapproximately5%fromtheprioryearperiodlargelyreflectingthecontinuedlowinterestrateenvironmentandlowerclientactivity.
ProvisionsforCreditLossesinPW&CCwereEUR57million,5%higherthantheprioryearbutstillatalowlevelreflectingthehighqualityoftheportfolio.
NoninterestexpensesofEUR1.
6billiondeclinedbyEUR965millionfromtheprioryearperiod,whichincludedanimpairmentofgoodwillofEUR1.
0billion.
Excludingtheimpactofthepriorperiodimpairment,noninterestexpensesincreased3%reflectingcostsassociatedprimarilywithdigitalisationinvestmentsandtheimplementationofthebank'sStrategy2020.
PW&CCincomebeforeincometaxeswasEUR117millionwithapost-taxreturnontangibleequityof4.
2%.
inEURm.
(unlessstatedotherwise)3Q20163Q20153Q16vs.
3Q159M20169M20159M16vs.
9M15Netrevenues1,7401,4502905,3385,633(296)Provisionforcreditlosses(57)(54)(3)(160)(208)48Noninterestexpenses(1,566)(2,531)965(4,811)(5,672)862Noncontrollinginterest000000Income(loss)beforeincometaxes117(1,135)1,252367(247)614RWA(inEURbn)4950(1)4950(1)Release6|8DeutscheAssetManagement(DeutscheAM)CommentaryExcludingtheimpactofmark-tomarketmovementsonpolicyholderpositionsinAbbeyLife,DeutscheAssetManagement(DeutscheAM)netrevenuesinthethirdquarter2016ofEUR628milliondeclined8%fromtheprioryearperiod.
ThedeclinereflectedlowerActiveandPassivemanagementfeespartlyduetonetoutflowsofinvestedassets,whilstotherrevenuesfromAlternativeswerelower.
DeutscheAMnoninterestexpensesexcludingtheeffectofpolicyholderbenefitsandclaimsinAbbeyLifedeclined15%toEUR440millioninthethirdquarter2016,largelyreflectinglowercompensationandbenefitexpense.
DeutscheAMincomebeforeincometaxesinthethirdquarter2016wasEUR216millionwithapost-taxreturnontangibleequityof33.
3percent.
PostbankCommentaryPostbanknetrevenuesinthethirdquarter2016declined7%toEUR779millionfromtheprioryearperiod,largelyreflectingthecontinuedlowinterestrateenvironment.
ProvisionforCreditLossesdeclined30%toEUR45million,reflectingthecontinuedbenigneconomicenvironmentinGermany.
PostbanknoninterestexpenseswereEUR665millioninthethirdquarter,downEUR2.
6billionfromtheprioryearperiod,whichincludedanimpairmentofgoodwillinEURm.
(unlessstatedotherwise)3Q20163Q20153Q16vs.
3Q159M20169M20159M16vs.
9M15Netrevenues8236331902,2202,15169Netrevenuesexcl.
MtMonpolicyholderpositions(1)628680(52)1,9112,021(110)Provisionforcreditlosses0(1)1(1)(1)0Noninterestexpenses(608)(491)(117)(1,671)(1,639)(31)Noninterestexpensesexcl.
Policyholderbenefitsandclaims(1)(440)(520)80(1,386)(1,505)120Noncontrollinginterest00001(1)Income(loss)beforeincometaxes2161427454951137RWA(inEURbn)13671367(1)RelatedtoAbbeyLifeinEURm.
(unlessstatedotherwise)3Q20163Q20153Q16vs.
3Q159M20169M20159M16vs.
9M15Netrevenues779837(58)2,5422,49745Provisionforcreditlosses(45)(64)19(121)(147)26Noninterestexpenses(665)(3,258)2,593(2,052)(4,634)2,582Noncontrollinginterest000000Income(loss)beforeincometaxes68(2,486)2,554369(2,285)2,654RWA(inEURbn)4542245422Release7|8andintangiblesofEUR2.
6billion.
Excludingtheimpactoftheprioryearimpairment,noninterestexpenseswerebroadlyflatdespiteongoinginvestmentexpensesfordigitalisationandimplementationofthebank'sstrategy.
Postbankincomebeforeincometaxesinthethirdquarter2016wasEUR68millionwithapost-taxreturnontangibleequityof3.
1%.
Non-CoreOperationsUnit(NCOU)CommentaryNetrevenuesintheNon-CoreOperationsUnitwereEUR(191)millioninthethirdquarter2016.
NCOUcontinuedtofocusonde-riskinginthequarterresultinginRWAofEUR18billion,a55%reductionversustheprioryearperiod.
NCOUnoninterestexpensesinthethirdquarterdeclined23%toEUR330million,drivenbytheimpactofassetsales.
NCOUincomebeforeincometaxeswasEUR(538)millioninthethirdquarter,largelyreflectingcostsrelatedtothede-riskingactivitiesoftheunit.
Forfurtherinformationpleasecontact:DeutscheBankAGPress&MediaRelationsInvestorRelationsMichaelGolden+496991024611+496991035395(Frankfurt)MonikaSchaller+496991048098+442075450279(London)db.
presse@db.
comdb.
ir@db.
comAnanalystcalltodiscussthirdquarter2016financialresultswilltakeplaceonThursday,27October2016at8.
00a.
m.
(CET).
Thisconferencecallwillbetransmittedviainternet:www.
db.
com/quarterly-resultsAFixedIncomeinvestorcallwilltakeplaceonThursday,4November2016at13.
30(CET).
Thisconferencecallwillbetransmittedviainternet:www.
db.
com/bondholder-presentationsinEURm.
(unlessstatedotherwise)3Q20163Q20153Q16vs.
3Q159M20169M20159M16vs.
9M15Netrevenues(191)236(427)(524)854(1,378)Provisionforcreditlosses(17)0(17)(96)(34)(62)Noninterestexpenses(330)(427)97(1,083)(2,198)1,115Noncontrollinginterest0(1)10(1)2Income(loss)beforeincometaxes(538)(192)(346)(1,703)(1,379)(323)RWA(inEURbn)1840(22)1840(22)Release8|8TheInterimReport,FinancialDataSupplement(FDS),presentationandaudio-webcastfortheanalystconferencecallareavailableatwww.
db.
com/quarterly-resultsThisdocumentcontainsnon-IFRSfinancialmeasures.
ForareconciliationtodirectlycomparablefiguresunderIFRS,totheextentnotprovidedherein,pleaserefertotheInterimReportandtheFinancialDataSupplement.
AboutDeutscheBankDeutscheBankprovidescommercialandinvestmentbanking,retailbanking,transactionbankingandassetandwealthmanagementproductsandservicestocorporations,governments,institutionalinvestors,smallandmedium-sizedbusinesses,andprivateindividuals.
DeutscheBankisGermany'sleadingbank,withastrongpositioninEuropeandasignificantpresenceintheAmericasandAsiaPacific.
Thisreleasecontainsforward-lookingstatements.
Forward-lookingstatementsarestatementsthatarenothistoricalfacts;theyincludestatementsaboutourbeliefsandexpectationsandtheassumptionsunderlyingthem.
Thesestatementsarebasedonplans,estimatesandprojectionsastheyarecurrentlyavailabletothemanagementofDeutscheBank.
Forward-lookingstatementsthereforespeakonlyasofthedatetheyaremade,andweundertakenoobligationtoupdatepubliclyanyoftheminlightofnewinformationorfutureevents.
Bytheirverynature,forward-lookingstatementsinvolverisksanduncertainties.
Anumberofimportantfactorscouldthereforecauseactualresultstodiffermateriallyfromthosecontainedinanyforward-lookingstatement.
SuchfactorsincludetheconditionsinthefinancialmarketsinGermany,inEurope,intheUnitedStatesandelsewherefromwhichwederiveasubstantialportionofourrevenuesandinwhichweholdasubstantialportionofourassets,thedevelopmentofassetpricesandmarketvolatility,potentialdefaultsofborrowersortradingcounterparties,theimplementationofourstrategicinitiatives,thereliabilityofourriskmanagementpolicies,proceduresandmethods,andotherrisksreferencedinourfilingswiththeU.
S.
SecuritiesandExchangeCommission.
SuchfactorsaredescribedindetailinourSECForm20-Fof11March2016undertheheading"RiskFactors".
Copiesofthisdocumentarereadilyavailableuponrequestorcanbedownloadedfromwww.
db.
com/ir.